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No substitute for experience *Utilities executives might think that the key political changes in Brussels have now been made with the appointment of a new European Commission, but it is the permanent officials that could have the most influence on policy, says Keith Nuthall.* New European Union energy commissioner Gunther Oettinger has been installed for five years, alongside his environment commissioner Janez Potocnik and climate action commissioner Connie Hedegaard. So utilities executives could be forgiven for thinking that the key political changes in Brussels have now been made regarding the appointment of a new European Commission. That is not the case, because although these new leaders will be influential, they will have to work within a reshaped bureaucracy in Brussels. The Commission's directorate general (DG) for transport and energy is being split into two separate units, and a new DG for climate action is being created under Hedegaard. Anyone who works with or tries to influence public authorities at any level knows that permanent officials often have as much influence, if not more, than elected ministers, or in this case appointed commissioners. *Cutting across departments* The new DG for climate action will largely take staff and duties from the existing DG for environment, but its work will cut across many other departments. This innovation will take time to bed in, because staff are being recruited for the new DG from now until the summer. Some officials are already in place. The core of DG for climate action is the old directorate C (climate change and air), part of the DG for environment. Its clean air unit, however, remains at environment. Maria Kokkonen, Hedegaard's new spokeswoman, said that between 70 and 100 officials from this existing directorate were being placed in the new DG and this number would be doubled, with a focus on internal recruitment. It has been assigned a big gun from within the Commission to be its head official. Belgian Jos Delbeke, currently deputy director general of the DG for environment, has been appointed director general of the DG for climate action. He is a key figure in developing EU global warming strategy, as he is the EU's chief international climate change negotiator at the UN. He has also been influential in devising legislation on cars and fuels, emissions trading, air quality and emissions from big industrial installations. An insider who joined the European Commission in 1986, he has strong experience in developing market-based instruments, cost-benefit analysis, and the Reach chemical control system. *Dedicated to climate* "A lot of work and challenges are waiting for us and so we have dedicated more resources to this," says Kokkonen. "The question of a post for a commissioner fully responsible for climate action shows the importance attached to climate action." She stresses that her officials will implement the EU's climate and energy package, which will see them encouraging green energy projects and investment. Climate change international negotiation officials have been among the first appointed - this is critical, given the detailed response to the Copenhagen conference is now under way. The new DG will have three priorities: international climate strategy; international carbon markets; and mainstreaming low carbon technologies in industry - all important to utilities. The other key change is the new energy directorate general, and especially the fact this DG is more than just hiving off the energy parts of the old DG for transport and energy. It will also subsume the "task force energy" unit from the old DG for external relations. The rests of the DG is being combined with foreign policy units of the EU Council of Ministers to create a new EU "External Action Service" - headed by the UK's Baroness Catherine Ashton. This is an important piece of turf. There has been a tussle between the Commission and Council over who controls EU foreign policy. By placing energy overseas relations in the hands of Oettinger, the Commission is trying to control energy diplomacy, affecting deals with Russia, Ukraine and North Africa. Lobbyists will take note. Marlene Holzner, spokeswoman for Oettinger, says the move means her boss has been confirmed as "responsible for energy in a comprehensive way. This also includes the international side". She underlines this: "Two units within the new DG for energy will be responsible for international aspects." She adds almost as a formal rider that "this is without prejudice of the competencies of the External Action Service in the field of international relations". More details on the DG's structure will follow, she says. *Concern about Russia* Interestingly, reflecting concerns that Oettinger could use it to push deals that favour Russia, mirroring the policy of his native Germany, the Commission has appointed a Briton as director general of this new DG for energy. He is Philip Lowe, currently head of the DG for competition. As well as being a very senior official in Brussels, Lowe has been successfully working with Dutch liberal competition commissioner Neelie Kroes, who has strongly backed liberalisation and deepening a single EU energy market. This will ease concerns that Oettinger's appointment might strengthen national champion utilities such as those in France and Spain and lead the EU to be soft on Moscow. Source: Utility Week © Faversham House Group Ltd 2010. News articles may be copied or forwarded
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