EU energy market package welcomed
SNP MEP Alyn Smith, alternate member of the European Parliament's powerful
Energy Committee, has today welcomed a series of
votes in the European Parliament that should give European consumers greater
rights when it comes to choosing their electricity and gas suppliers, as well
as greater protection for those trapped in fuel poverty.
This week's series of votes bring to an end a lengthy and technical negotiation
between MEPs and national governments to agree new rules for opening up Europe's electricity and gas markets to greater
competition, with the aim of ensuring greater price transparency and
encouraging lower energy prices for EU consumers.
Under the package, consumers gain the explicit right to switch their energy
suppliers within three weeks without charge, the right to a single point of
contact for information and redress. MEPs also backed plans to cut bills
for people on pre-payment meters, to install "smart" meters in all EU
homes by 2022 and an obligation for national governments to guarantee universal
access to electricity for all households. In order to free the market as
a whole, some of Europe's larger energy
companies will be obliged to separate their transmission and production
activities. Two alternative options were agreed enabling energy companies
to retain control of their gas and electricity networks by handing them over to
an independent systems operator or transmission operator.
Smith said:
"The Parliament has done a good bit of work this week with such a
technical piece of legislation. The real winners are Europe's
consumers and I'm glad to see they have been put at the centre of this new
package thanks to the Parliament's efforts. There is much that will
benefit Scottish consumers with more rights to protect them against being
ripped off by energy companies including the right to compensation for bad
service such as inaccurate or delayed billing.
"Moves for increased measures to tackle the issue of fuel poverty are
especially welcome at this time of economic uncertainty and job losses, with
national governments now required to draw up national energy action plans for
how they intend to eradicate fuel poverty and provide vulnerable energy
consumers with greater protection.
"I also welcome further moves to improve energy efficiency with so-called
smart meters to be installed in 80% of homes across the EU by 2020 and to all
homes by 2022 as a way of enabling consumers to better monitor their energy use
and to avoid peak hours when energy costs are more expensive.
"The Scottish Government has already been leading efforts to reduce fuel
poverty among Scotland's householders with its new £60 million energy
assistance programme which includes benefit and tax credit and tariff checks to
ensure people are paying the correct bill, as well as providing central heating
and insulation."
