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Representatives of the gas industry from across Europe today expressed collective lack of support for further consolidation within the industry, reveals business advisory firm Deloitte.  Only 6% of the delegates surveyed by Deloitte at Europe’s largest gas conference, FLAME*, believed Europe’s competitive strength in global energy markets would be improved through further consolidation.  When asked what benefits could be expected from further consolidation, 36% responded that further corporate consolidation within the European gas and power sector should not be encouraged. 

Asked which measures would increase Europe’s competitive position, 44% of delegates believed harmonising standards for cross-border trading would bring the biggest benefits, followed by ownership unbundling of networks (30%) and the creation of a European regulator (20%). 

Peter Newman, Oil & Gas Leader at Deloitte, commented: “Many executives across the industry are comfortable with the prospect of working in a more competitive market environment.  They seem more persuaded by the arguments of the EU Commission in favour of greater liberalisation, as the best way to achieve diversification and new investment, than of those of some of the national policy makers who continue to emphasise the role of ‘national champions’.”

Delegates were also very clear that most countries will miss the July 2007 EU deadline for all customers to have real choice as to who provides their gas – with 83% of respondents agreeing  that this will not happen within the time frame.

Peter Newman continued: “It is quite possible that the EU’s strong new focus on energy emissions and efficiency may divert its attention away from the further liberalisation and regulation measures that form part of a single European energy market.”

On the subject of gas demand, delegates felt that, setting aside price levels, the EU Emissions Trading Scheme allowances would have the biggest impact (37%), far outweighing the impacts of schemes to improve energy efficiency (16%) or to grow renewables (13%). And 56% of respondents indicated that emissions targets and concerns over energy imports will trigger a meaningful shift in favour of decisions over the next 5 years to begin to expand or renew nuclear power in some EU countries.

Ends

Notes to editor
FLAME
* FlAME is the gas industries annual conference as was attended by 700 delegates from the gas industry across Europe this year.  Deloitte surveyed delegates taking part in an interactive session on Tuesday 13th March.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s acts or omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press.