EU to take legal action against State

The European Commission has initiated three separate legal actions against the Republic for failing to properly open its electricity…

The European Commission has initiated three separate legal actions against the Republic for failing to properly open its electricity and gas markets to competition.

In a formal notice of infringement published yesterday, the commission alleges that the Government has failed to promote adequately the use of renewable energy.

It also accuses the Government of not providing the right market conditions needed to attract competitors to the State-owned electricity and gas companies, ESB and Bord Gáis. The legal actions are among 28 infringement proceedings announced by the commission as part of a drive to create a better functioning EU energy market.

Most of the proceedings relate to a failure by member states to transpose EU directives seeking to create an internal market in gas and electricity that is opened effectively for use by consumers from July 1st, 2007. Energy commissioner Andris Piebalgs said states must implement the directives on gas and electricity quickly and in full, not only in form but also in substance.

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One of the legal actions refers to the Republic's failure to take sufficient measures to enable an adequate promotion of renewable energy. It notes that an EU directive sets a target of achieving a share of 21 per cent of electricity from renewable energy sources by 2010.

At present, just 2 per cent of energy comes from renewable sources in Ireland and some green energy firms have complained that they were denied access to the national grid.

The other two infringement proceedings involve specific problems related to opening up the electricity and gas sectors to competition such as the level of regulated prices, accessing the national grid and the notification of public service obligations of electricity companies.

A Government spokesman said it could not comment until it received the formal notice of infringement.