The European Federation of Energy Traders, or EFET, has revealed that it lacks faith in the commitment of some national governments to EU energy policy, suggesting that 'national measures are distorting European wholesale electricity markets.'
In a statement, the EFET said that it harbors major doubts as to whether the intentions of some individual governments, to promote what they regard as national security or national competitiveness, are compatible with the successful pursuit of true EU single markets in electricity and gas.
The body added that, particularly in the power sector, it was witnessing tendencies to revert to market intervention and centralized planning, reminiscent of the pre-liberalization era.
The EFET is concerned with the apparent re-introduction in several EU countries of regulated tariffs for the price of electricity charged to categories of commercial and industrial customers, who should by now only be purchasing in the free market. The organization is also troubled by the prevalence of discounted pricing for purchasing consortia and the prolongation of renewable electricity ‘feed-in’ regimes.
Such actions seriously impact liquidity and damage confidence in the affected national electricity markets. They thereby delay or distort the process of establishing reliable wholesale price signals in the relevant countries. Combined with other government subsidies or protectionist measures, they may even put national economic, budgetary and monetary stability at risk, the EFET argues.
In light of these views, the EFET has called on member state governments to fully implement existing liberalization legislation.