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Eurelectric urges market measures to combat gas supply crises Market instruments should be the first port of call for dealing with a gas supply crisis, according to Eurelectric. That's the response of Europe's power industry trade body to a European Commission proposal to secure gas flows if supply security is under threat. It welcomed the Commission's emphasis on a competitive and interconnected European gas market to prevent or cope with shortages, but urged legislators to give priority to market-based instruments in emergency situations and also in mitigating the effects of supply disruptions. As well Eurelectric stressed that while member states should have some flexibility in securing supplies, this should not be allowed to distort the market. Elsewhere in its response, Eurelectic argued mandatory fuel switching requirements should not be applied to power plants because "technical and environmental constraints on the operation of the plants might make it impossible or very costly to switch to another fuel". If they are imposed, plants should be compensated, it said. The trade body also suggested some plants, such as gas-fired CHP units or heat-only boilers that feed district heating networks, should be included on the list of "protected customers" as axing their supply of gas would leave households without heat. Finally, Eurelectric requested a number of the Commission's points to be clarified - in particular, improving the definition of "crisis levels" and spelling out what is and isn't permitted in each case. Source: Utility Week © Faversham House Group Ltd 2009. News articles may be copied or forwarded
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