NEELIE KROES, the European Union’s competition commissioner, didnot mince her words when reporting on Europe’s energy markets on WednesdayJanuary 10th. Europe’s energy firms have failed to invest in networks and socustomers are suffering. Those “vertically integrated” energy companies such asElectricité de France (EDF) or Germany’s E.ON, widely dubbed as “nationalchampions”, are effectively behaving like local monopolies. Shy of competition,eager for artificially high prices, they are helping to block the efficientgeneration, transmission and distribution of energy on the continent. Energy prices vary wildly across Europe. Ms Kroes wants to seecheaper energy, and intends to push suppliers to divest their distributionnetwork and to get them to invest more in transportation systems so that moreenergy—in the form. of gas, or electricity, for example—can flow easily overborders. It is remarkably hard, for example, for gas-poor Germany to importfrom the neighbouring, gas-rich Netherlands. Companies that dominate nationalmarkets have, so far, had little interest in improving the interconnectionswhich would mean lower prices for consumers across the continent. Ms Kroes, of course, will struggle to get her way. The EuropeanCommission, which on the same day presented its recommendation for improving EUenergy policy, also wants to see the unbundling of ownership, the legalseparation of energy suppliers and transporters, something that the integratedenergy companies and interested governments, notably in France and Germany, arebound to oppose ferociously. Complicating the matter is an argument over the security of energysupply in Europe. Much has been made of the risk for western Europe ofdepending too heavily on Russian exports of gas. Russia under Vladimir Putin isprone to using energy exports as a blunt tool of foreign policy, especiallywhen trying to bully countries in its hinterland. Last year Russia interruptedgas deliveries to Ukraine, affecting supplies in central and western Europetoo. This week it blocked oil exports passing via Belarus to Europe, thoughthat spat was soon resolved. The risk is that concerns about security of supply may be usedspuriously by those in Europe who oppose the sort of liberalisation encouragedby Ms Kroes. The likes of E.ON and EDF may claim that only protected nationalchampions are able to secure supply, by striking long-term deals with powerfulforeign suppliers. The Commission disagrees. Such deals are too oftenpolitically motivated and far from transparent. Protection has been tried forlong enough and evidently has not worked for the internal market, nor havethese companies secured the best deals for consumers from the Russians. In contrast, the Commission&39;s new policy proposes, ideally, abreak-up of these companies into suppliers and distributors. (As a second bestsolution, especially for France and Germany, it recommends the management ofthe networks by a third party.) Properly independent managers of Europe&39;senergy networks would have a strong incentive to build interconnectingpipelines and power lines across borders. For the gas market another means ofensuring competition and security would be finding a more diverse range ofsuppliers, for example by building more terminals for the import of liquifiednatural gas. It would also be likely to mean lower prices, if the example ofliberalised Britain over the past ten years is anything to go by. Whether any of this is likely to happen soon, however, is anothermatter. The Commission is also calling for European governments to agree on acommon effort to reduce carbon emissions by at least 20% by 2020 (compared with1990 levels). If America is willing to play ball, the Commission proposes toreduce emissions by as much as 30%. Achieving either target would meanpromoting cleaner cars, a more effective emissions-trading system for Europe,wider use of public transport and a sharp increase in the use of renewablesources of energy, like wind and solar power. All that is laudable enough, butwill also require political horse-trading as governments—Europe’s leaders aredue to meet in March to discuss the various energy proposals—try to avoidcommitments that may hurt domestic energy companies or make European firms lesscompetitive than rivals in America, Asia and elsewhere. (689 words) Questions 15-19 Do the following statements reflect the views of the writer in thereading passage? In boxes 15-19 on your answer sheet write YES if the statement reflects the views of the writer NO if the statement contradicts the views of the writer NOT GIVEN if there is no information about this in the passage Europe’s energy companies have funded the construction of thedistribution network. There has been a wide range of energy prices within Europe. The European Commission proposes to reduce carbon emissions by 30% if the U.S. is willing to cut its. EON and EDF may oppose the liberalisation due to their concerns about the security of energy supply. Gas-poor Germany has to pay a price higher than average to import gas from its neighbour. A liberalised policy of energy supply was enforced over ten years in___________A.Belarus B.Britain C.France D.Germany E.Russia F.Ukraine G.The U.S Oil exports passing via___________to Europe was blocked this week.A.Belarus B.Britain C.France D.Germany E.Russia F.Ukraine G.The U.S Questions 20-24 Look at the box of countries below. Choose One or Two countries to complete the following sentences. Write your answers in boxes 21-25 on your answer sheet. Countries It’s dangerous for western Europe to depend too much on gas imports from___________ A.Belarus B.Britain C.France D.Germany E.Russia F.Ukraine G.The U.S The governments in___________are bound to oppose the separation of energy suppliers and transporters?A.Belarus B.Britain C.France D.Germany E.Russia F.Ukraine G.The U.S Last year energy supplies in central and western Europe was affected owing to the interruption of gas deliveries to___________A.Belarus B.Britain C.France D.Germany E.Russia F.Ukraine G.The U.S Questions 25-28 Choose NO MORE THAN THREE WORDS from the reading passage above for each answer. Write your answers in boxes 26-29. The EC disagrees with energy firms to strike long-term deals with foreign suppliers because such deals are usually far from___________ The EC proposes to split those “national champions” into___________ A more diverse range of suppliers would guarantee___________in the European gas market. The realization of carbon emissions reduction would require the promotion of cleaner cars, a better emissions-trading system, wider use of public transport and more use of___________of energy.