Britain at War Over EU Energy Scandal

Oct 17 - Daily Mail

Britain is threatening to use its presidency of the European Union to force France and Germany to open up their energy markets or face the threat of unlimited fines.

"The time for talk and hot air is over," Energy Minister Malcolm Wickes vowed in an exclusive interview with Financial Mail. "The European energy market has got to liberalise."

And in an escalation of the energy row between Britain and the Continent, Wickes said that if nothing changed, he would seek action from the European Commission to take France and Germany to court, where they would face massive fines for flouting EU directives.

Wickes said the Government is giving the issue top priority when it chairs the Energy Council meeting on December 1.

"We have been relaxed about foreign energy companies coming into our country, but we are not going to be relaxed about their refusal to open up their markets," he warned.

"EdF, the French energy group, is here, the Germans are here. That's the logic of the market and that's fine. But are there similar opportunities for British companies in Germany and France and elsewhere? The answer is no, and that is not a level playing field. That is not cricket."

German group Eon, which owns PowerGen, is planning to increase its presence in the UK market by acquiring Scottish Power. A bid is expected within a month.

Wickes was speaking only days before Britain sends a delegation to Brussels to demand that European energy giants open up their markets.

The 60-strong delegation, including National Grid, Centrica, the Department of Trade & Industry and energy watchdog Ofgem, is headed by Andrew Bainbridge, director-general of the Energy Users' Council and has Wickes' support.

One member, Centrica's finance director, Phil Bentley, said: "It's time for change, for the era of monopoly suppliers to end. We need to see the German and French governments follow the UK and liberalise their markets."

It is the first time that such a body has been sent to Europe to plead with European Energy Commissioner Andris Piebalgs and it reflects the growing alarm over soaring wholesale gas prices.

Hundreds of thousands of workers in Britain face being laid off this winter because of soaring gas and electricity prices.

With Met Office forecasts predicting a colder than average winter, hundreds of small companies will not be able to pay their huge energy bills and will be forced to send their workers home.

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