Jos Manuel Barroso is facing one of the biggest decisions of his time as European Commission president: whether to take on entrenched industrial and political interests in order to break open the continent’s energy market.
After interviewing him - on-the-record and privately - for over 90 minutes I have the impression he is gearing up for a fight.
Mr Barroso says in his FT interview he wants to break the grip of Europe’s monopolistic energy suppliers, which control both the supply and distribution of electricity and gas in their home markets. Legislation is expected early in 2007.
But how tough will he be? Will he go for a full-frontal attack and demand the complete unbundling of the supply and distribution operations of companies such as Eon and EDF - or settle for some half measures?

Andris Piebalgs, the thoughtful EU energy commissioner, favours a more modest revision of the current rules, under which companies simply have to "legally" separate their activities into different corporate entities.
Mr Barroso says the current system does not work, and is being advised by liberals in his team to go much further, risking a clash with countries such as France and Germany where energy monopolies and the political elite are entwined.
He did not say which way he would go, so why think he might go the whole hog? Well, the EU’s efforts to break up national telecoms monopolies is seen as a huge success and could provide a model for the energy sector. Second, the tightening grip of Russia and Algeria on European energy markets and rising prices points towards the need for serious action.
Third, Mr Barroso seems to be more confident in his position. Two years into his term of office, he seems to be in the mood for confronting member states with what needs to be done, even if the reforms are painful.
For a coruscating analysis of the current energy market failure - and the kind of arguments that will be raging inside the Commission over the autumn - look up Neelie Kroes’s speech on the subject on March 10. Will Mr Barroso have the nerve to follow her advice?
George Parker

September 11th, 2006 in Energy | Permalink