EU energy liberalisation package agreed

Ministers fudge labelling of electricity sources, debate energy funding, cogeneration, nuclear safety

EU energy ministers today agreed to completely open European energy markets to competition. Full liberalisation is expected to support green energy suppliers, though draft requirements for electricity suppliers to flag up power sources to consumers will disappoint the renewable energy sector.

Key elements of the agreement include full liberalisation of electricity and natural gas markets and splitting of transmission and distribution system operators from energy producers, both by July 2007 at the latest. Both moves should increase access to the electricity grid for new producers.

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