About 100 specialists from the power industry met last week at the 5th Essent Energy Forum in Germany's Schloss Bensberg to discuss current issues regarding the opening of the market, in particular in the natural gas sector.

"We support the Green Paper on Energy Efficiency adopted by the European Commission, which endorses a liberalized energy market in Europe. All of the players in the energy market should now energetically promote its development. That is the best guarantee for the security of supply and realistic prices. This can also aid in preventing a possible extension of regulation," stated Paul van Son, general manager of Deutsche Essent at the start of the 5th Essent Energy Forum, which took place on Thursday, November 9, and Friday, November 10, 2006, at Schloss Bensberg in Bergisch-Gladbach.

According to experts, the European energy landscape is currently divided. While the European Union has already called for the breaking up of the large energy groups, within Germany there continue to be enormous obstacles to actually opening the market.

"Up to now, politics has afforded too little attention to the interrelations and requirements of a European market infrastructure," explained van Son. "In addition, price regulation has no place in an open market and is counterproductive. It is also important that under the German presidency of the EU, the implementation of guidelines for an open energy market be driven forward with utmost priority."

Van Son nonetheless sees positive tendencies: "In 2006, there was more movement in the natural gas market than in all the years since the start of our activities in 1999." The measures introduced by the Federal Cartel Office and the regulatory authority have made it possible for the first time for alternative suppliers to actually sell natural gas on the German market. He cited the first supply agreements concluded by novogate, the subsidiary founded in spring by Essent and Bayerngas GmbH.

In his talk, Klaus Peter Schultz, manager of the energy regulation department of the German Federal Network Agency, emphasized that the regulatory authority would continue to support the liberalization of the market. It is thus an important goal to reduce the number of market segments and by doing so simplify the conclusion of transit agreements. In addition, the Network Agency has achieved significant reductions in the authorization of transit fees.

Several speakers made reference to the challenges market liberalization poses for communal and regional energy suppliers. Dr. Ulrich Mössner, general manager of Bayerngas GmbH, and Paymon Aliabadi, director of Essent Energy Trading, stressed that refined cooperation models were a good alternative to fusions or joining conglomerates.

"Public utility companies have a sound future if they adapt to the new situation on time," Paul van Son also pointed out. The utility companies' proximity to customers is their chief capital, while cooperation with large international companies is often necessary for successful procurement and risk management. "Today, many companies have to decide whether they want and are able to act alone on the energy market or become associated with bigger partners," is how Van Son characterized the current situation.