Companies call for EU single energy market

20 European companies and associations are calling on EU Heads of State to show the courage and vision to create a single market for electricity by 2015. European legislation has guaranteed some choice of electricity provider, but only 5% of Europe's electricity is traded across borders.

As a consequence, competition is inefficient and allows electricity suppliers to pass any increase in the price of the coal, gas - or in the future carbon - straight onto the consumer without risk of significant loss of business. This is not acceptable. A properly functioning European market in electricity would have many benefits:

• increased competition leading, in the long-term, to reduced electricity prices
• improved security of supply (and reduced risk of blackouts)
• reaping the full advantages of fuel-free, pollution-free renewable energy sources produced in ever greater quantities in many parts of Europe
• opportunities for increased trade in electricity regardless of the source

In order to achieve a single market in electricity, Europe needs both the infrastructure to transport electricity from one part of Europe to another, and a common set of market rules. 25 years ago European leaders showed courage and vision by creating a single European market. Today's leaders must show similar determination in achieving a single market in electricity, and the Heads of State have the opportunity to show such courage and vision by agreeing on 4 February to create a single market for electricity by 2015.