EON SE, Germany’s largest utility, and seven European peers demanded policy changes in the energy industry to ensure sufficient investment in future supply.
“Energy companies are experiencing a perfect storm which is endangering security of supply and the transformation towards a low-carbon economy, as well as undermining their capacity to attract capital,” the companies said in an e-mailed statement to European Union leaders meeting in Brussels today.
Utilities have seen prices stagnate as slowing economic growth across Europe erodes demand. Narrowing profit margins, government indecision on long-term price guarantees and slumping emission costs have weakened the resolve to invest in cleaner capacity, stalling efforts to curb use of dirtier fossil fuels.
“The lack of visibility and regulatory uncertainty will inevitably lead to an absence of energy investments with negative effects on security of supply, employment and reactivation of the European economy,” said the companies, which also included GDF Suez SA, Enel SpA and Iberdrola SA.
The signatories called for fairer pricing, “realistic and stable” emission targets after 2020, greater EU coordination on expanding renewables, and stronger policies to support energy storage, shale gas and smart grids.