Date: 19.11.2015

Source: BUSINESSEUROPE

Readed: 2835

BUSINESSEUROPE position on Intergovernmental Agreements in the field of energy

  • BUSINESSEUROPE stresses the role of Intergovernmental Agreements (IGAs) in the field of energy in securing access for European businesses to reliable and competitive sources. Such agreements underpin long term strategic investments and trade.
  • European  businesses  are  confident  that  governments  and  industry  have already at their disposal the necessary guidance and expertise under existing EU law. We strongly believe that existing reporting obligations provide ample opportunities for ex-post assessment of IGAs and commercial contracts.
  • EU business community has not received an analysis by the Commission that explains the need and reasons for a revision of the Decision on information exchange mechanism with regard to IGAs in the field of energy. It remains unclear how serious the problem is, to what extent competition is hindered and security of energy supply is undermined.
  • BUSINESSEUROPE  believes  that  any  revision  of  the  Intergovernmental Agreements Decision (IGAD) should be founded on principles of freedom to conduct business and trade, the right of good administration as well as on European law for protection of business secrets.
  • If  revised,  an  IGA  information  mechanism  needs  to  be  based  on  several principles, in particular:

Facilitate  commercial  entities  in  entering  into  investment  and  supply arrangements and provide adequate protection of commercial interests;

Avoid    a    mandatory    ex-ante    control    mechanism    that    would    be disproportionate, discourage trade and be in breach of with established European legal principles;

Target solely IGAs with an impact on the internal energy market or on the security of energy supply in the Union as assessed by member states;

Require  business  consent  prior  to  the  disclosure  of  sensitive  private information and does not create obligations as regards to agreements between commercial entities;

 Provide  best  practice  examples  and  model  clauses  by  the  European

Commission whose application should remain optional.

POSITION