Equal Access To All Aspects Of The Energy Infrastructure

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Title: Equal Access To All Aspects Of The Energy Infrastructure
Subject: Management
Type of Paper: Assignment
Words: 1074
Managing Energy Sources
In most of the countries in Europe, the infrastructures for supplying energy, electricity and gas,
are still properties of the so-called vertically integrated undertakings (VIU) to extract or generate,
supply, transmission and distribution of the energy. Whereas competition can be promoted in the
generation/production and supply side of the vertical integration, transmission and distribution
segments remain natural monopolies that obstruct the mechanisms of market. Vertical integration
just raises the likelihood for officials to support their divisions and to prevent new entrants.
Consequently, equal and fair access to the transmission of energy and distribution networks, also
LNG and storage plants, is important to promote competition in politically weak market
structures of the electricity and gas.
However, a question is raised at this point that does equal access to all aspects of the energy
infrastructure actually exist? Infrastructure of energy is specific in many ways. It is high-priced
and after building a pipeline or electrical grid, it is not changed in an easy way. The energy mix
and industrial structure is shaped by it about the given country for several years. (Haas et al.
2006) Another way due to the higher costs related with new infrastructure of transmission, it is
economically not able to be sustained (and frequently unfeasible administratively and physically)
to vie with the established grid by developing a parallel one (Nowak, 2010). Infrastructure of
transmission or distribution of energy is a real natural monopoly. Almost, it is regulated all the
time, mostly to make sure that other market players acquire access to the infrastructure and can
vie equally with its operator.
However, according to Jerzy Buzek, European energy market at present is still inadequately
interconnected and organised, as well as neither open nor competitive (Smith, 2010). He is a
former European Parliament President and ex-Prime Minister of Poland, and at present he is a
Member of the European Parliament. Furthermore, in the EU the prices of energy are much high
as compared with America and China and are growing. In accordance with Burzek (Smith, 
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2010), a really organised energy market and harmonized investment in infrastructure are
necessary if Europe is to return to growth and remain competitive.
The producers of energy stand to take advantage from predictability, apparent and transparent
rules and as non-discriminative approach to the single market. They will be more quickly
inspired and stimulated to produce energy in an entirely competitive market, and that thus
pledges a reduced reliance on sources that are non-EU-based and also a more substantial position
of negotiation with outside suppliers. All these transform into greater security of energy.
(Nowak, Energy Policy 2010)
The growth we are endeavouring for needs to be sustainable and sensitive for the environment.
By making sure we have a more well-organised way to produce, store and distribute energy, a
European market that is more competitive will, in conjunction with investments in advanced
technologies, make the industry more environmentally responsive. A well-organised open and
consistent market of energy should also pace the means to a low-emission economy. (Smith,
2010)
It has to be recognised that specific facets of infrastructure development may not be
commercially feasible’ however, these facets are needed for stabling supply of energy.
Interconnectors across the border are a major prerequisite for the internal market of energy as
well as a tremendous paradigm of the investment based on community in infrastructure of energy
that could and should be financially supported with the resources based on community.
(KAYIKÇI, 2011) The cuts made to the Connecting Europe Facility at the negotiations time
about the Multiannual Financial Framework for 2014-2020 appear more probable to restrain
major level of investments of this type. It is not very easy to insist more Europe with less wealth
(Marino et al. 2011).
Protectionist measures should be reviewed to assist infrastructure investment in the future.
Member states of EU must forbear from regulating their retail prices of energy as all the energy
trading facets should be steady and predictable. The continuing terminating of subsidies to
renewable implies that they will stand at a very lower level following 2020 as compared with
today. (Marino et al. 2011) However, carbon pricing simultaneously will rely on the design of
environment policy and its interconnectedness with the Emissions Trading Schem