Iberdola chairman, Ignacio Galan (right), and the head of Galicia’s regional government, Alberto Nuñez Feijoo, unveiled a plaque to commemorate the commissioning of a new hydroelectric power plant Santo Estevo II (Credit: Iberdola)
Siemens AG, Vestas Wind Systems A/S and now eight other companies are urging EU leaders to review their energy policies. CEOs of eight European energy companies (Fulvio Conti, Gertjan Lankhorst, Gérard Mestrallet, Ignacio Galan, Paolo Scaroni, Peter Terium, Johannes Teyssen, Rafael Villaseca Marco) have drawn to the attention of EU leaders the urgent need to tackle the perilous situation facing the European energy sector.
Meeting in Brussels, the day before the European Council focused on energy and tax fraud on 22 May 2013, eight energy companies (Enel, GasTerra, GDF SUEZ, Iberdrola, ENI, RWE, E.ON and Gas Natural Fenosa) agreed on a joint statement to underline the seriousness of the current challenges facing the sector and to propose appropriate policy actions. Indeed the current lack of visibility and regulatory uncertainty will inevitably lead to an absence of energy investments with negative effects on security of supply, employment and reactivation of the European economy. The status quo is simply not an option.
The signatories remain committed to the EU’s ambition for an energy policy based on the principles of competitiveness, security of supply and sustainable development, and they also fully adhere to the need for liberalization of energy markets. We see each of these elements as preconditions for competitive energy for industrial customers and citizens. However, the reality that each of the respective energy companies has experienced, over recent years, is that EU and some national energy policies have not delivered the full expected benefits. In concrete terms, European energy companies are the subject of a perfect storm which is endangering security of supply and the transformation towards a low-carbon economy, as well as undermining their capacity to attract capital.
It is, however, not too late for a revitalized EU approach to ensure competitive energy prices and a secure supply of energy for European citizens. Concurrently, this action would serve to restore the confidence of energy companies in the attractiveness of a European energy market. It is absolutely crucial that this revamped EU approach continues to support the fight against climate change, in addition to encompassing the following fresh elements:
The CEOs of the eight energy companies very much look forward to EU political leaders taking stock of the critical situation the energy sector is facing. They must also define a new policy direction based on the elements included in the joint statement which are centred on the contribution that investments in the energy sector make, not only in providing a secure and efficient product, but also through creating jobs and reactivating the economy in an efficient way.
