MOTION FOR A RESOLUTION BY THE COMMITTEE ON INDUSTRY, TECHNOLOGY AND

RESEARCH

Whilst allegations emerge of price-fixing on the British gas market and the German RWE npower being under scrutiny for tax

avoidance, an estimated 50 to 125 million Europeans are now in a state of “fuel poverty”. How can the EU improve openness and

encourage competition on an oligopolistic energy markets?

Submitted by: Keda Bamber (St. George's School, Malaga), Blanca Carcasona (San Patricio), Aitor Fernández Garay (San José Jesuitak), Natalia Ferrando Lázaro (I.E.S. Sierra de Guara), Oihane Iturbe (Arizmendi-Almen), Juan Munuera Rufas (Santa Rosa Huesca), Miguel Navid (Col·legi Montserrat), Ellen Pellosniemi (FI), Can Sarıkol (TR), Caterina Andrea Valenzuela Fizedeanu (Caxton College), Cristina Crespo (Chairperson, ES), Hauke Sommer (Vice-President, DE)

The European Youth Parliament,

A. Recognising increasing consumer distrust in energy providers triggered by both fluctuations in energy prices and uncertainty regarding the real profit margins for energy companies,

B. Deeply concerned by the increase of energy prices in the EU leading to regional fuel poverty due to:

i) lack of competition,

ii) the current economic situation,

iii) increasing scarcity of fossil fuels,

iv) alleged price-fixing,

C. Noting with deep concern that there is insufficient control over large energy companies resulting in cases of tax avoidance such as that of RWE, who admitted to having avoided corporate tax over a period of six years,

D. Fully aware that European energy markets is controlled by a small number of large corporations such as EDF or RWE creating high entry barriers for new and independent competitors,

E. Alarmed that the aforementioned oligopolistic structure of the Members States’ energy markets creates a risk of price-fixing as exemplified by the on-going investigation by the European Commission (EC) into an alleged collusion between the Royal Dutch Shell PLC, BP PLC and Statoil ASA,

F. Approving the measures that have been initiated by the EC to strengthen European energy markets, such as the Third Energy Package,.

G. Keeping in mind that the Third Energy Package is not yet fully implemented in all Member States,

H. Noting the lack of consistent laws, regulations, standards and practices concerning energy markets across the Member States;

 

1. Endorses the development of an online consumer protection platform by the Directorate-General Energy, modelled upon the British ‘uSwitch’ web platform, that assists consumers in choosing their energy supplier;

2. Recommends Member States and EC to redirect fines imposed on energy companies for the infringement of EU competition law into programmes that fight the fuel poverty caused by their malpractices, as suggested by the British Labour Party;

3. Proposes the creation of a new European regulatory organisation based on the structure of the British ‘Ofgem’, with the aim of issuing reports on the practices of European energy companies;

4. Suggests that banks and national governments facilitate the financing of small competitors on European energy markets by offering low interest loans or by lowering taxes, thus reducing entry barriers;

5. Urges the European Competition Network to strengthen its current legislative requirements regarding mergers in energy markets through further specification and simplification;

6. Expresses its hope that the measures introduced in the Third Energy Package will be implemented in all Member States within the next decade;

7. Approves the steps taken towards the creation of the Internal Energy Market 2014, namely the pilot project for joint electricity trading;

8. Calls for the cooperation of both the Directorate-General Energy and the governments of Member States in supporting the implementation of Smart Grid technologies.