German cartel office slams EU energy security plans

European Union proposals to force countries to invest more in their power and gas grids and to encourage energy saving are misguided and should be rejected, the head of Germany's cartel office said recently. The cartel office supervises competition in Germany's power and gas industry.

"I take a very critical view of the EU plan to prescribe investments by TSOs (transmission system operators) and energy savings targets," Ulf Boege told a conference.

"Investment regulation should be rejected -- it does not meet the priniciple of competition or entrepreneurship. Those who prescribe investment will be called to account when there are supply problems."

Boege said he thought member states should reject the proposals, which are due to be debated in the European Parliament later this month. Brussels put forward the draft directive on security of supply late last year after a series of massive power cuts in Italy, Scandinavia and Britain.

The failures raised questions about levels of investment in European electricity grids, highlighting the need for more cross-border capacity.

Draft proposals include forcing grid companies to provide detailed breakdowns of their investment plans and giving energy regulators powers to seek new bidders for grid construction projects that fall behind schedule. Brussels floated the idea of governments intervening in power markets to ensure adequate investment in power generation.

Draft documents cited estimates that the EU would need to build about 750 new power stations over the next 15 years.