Here are the minutes from the Commission meeting last Wednesday which we 
discussed in our teleconference. Sorry you were not on the original addressee 
list. 

---------------------- Forwarded by Peter Styles/LON/ECT on 25/06/2001 15:19 
---------------------------


Nailia Dindarova
21/06/2001 19:06
To: Paul Mead/LON/ECT@ECT, Ross Sankey/LON/ECT, Eric Shaw/LON/ECT, Paul 
Hennemeyer/LON/ECT, Doug Wood/LON/ECT, Paul Dawson/Govt. Affairs/LON/ECT
cc: Peter Styles/LON/ECT@ECT, Brendan Devlin/EU/Enron@Enron 

Subject: Re: EC on energy market distortions  

As anticipated in Peter's e-mail below, please see attached the English 
translation of the relevant abstract (Art 15) from the minutes of yesterday's 
discussion at the Commission. It is indeed quite an encouraging read. Whereas 
the press release sent out before (attached here below as well) suggested 
that the Commission "would consider" adopting its own Directive under the 
provisions of Art. 86 (para 3), the minutes seem to go a step further and 
imply that the Commissions regards it as a next action for itself if the 
Council and the Parliament delay the adoption of the acceleration proposal. 
The text also emphasizes that the Commission's legislation will still have to 
be subject to the "obligations of services of general economic interest", 
which could of course have a negative impact on the content of the actual 
Directive.  The minutes of the Commission's meetings are binding. 






Peter Styles
21/06/2001 13:32
To: Paul Mead/LON/ECT@ECT, Ross Sankey/LON/ECT, Eric Shaw/LON/ECT
cc: Brendan Devlin/EU/Enron@Enron, Nailia Dindarova/LON/ECT@ECT, Paul 
Hennemeyer/LON/ECT, Doug Wood/LON/ECT 

Subject: EC on energy market distortions

Further to Ross's question about "good news for EdF?" see also note below. 

We have subsequently received from Amaia the French text of the Commission's 
discussion yesterday on new measures to address the distortions. It makes 
quite encouraging reading. As would be expected, appararently the two French 
Commissioners were "sticky". Nailia will send you the English version ASAP.

               -------------------- Forwarded by Peter Styles/LON/ECT on 
06/21/2001 01:13 PM ---------------------------


Amaia BeteluBazo <Amaia.Betelu@citigatepa.com> on 06/20/2001 05:22:16 PM
To: "Peter Styles (E-mail)" <Peter.Styles@enron.com>
cc: "Nailia Dindarova (E-mail)" <Nailia.Dindarova@enron.com>, Thierry LeBeaux 
<Thierry.Lebeaux@citigatepa.com> 

Subject: Note on energy market distortions


Dear Peter,

I have unsuccessfully tried to contact you over the telephone. I therefore
attach some comments on the Commission's note on energy market distortion,
which we will be happy to discuss whenever it is most convenient for you.

The official in charge of the internal note presented today by Commissioner
de Palacio has indicated that the ongoing discussion on EdF's international
activities has required the Commission to provide some indication of what
its attitude will be in the near future regarding possible distortions of
competition in the energy sector. The official has also indicated that the
document seeks to push for the adoption of the Commission proposals for the
completion of the energy internal market which will allow to put an end to
the current distortions.
According to the press release the Commission intends to apply the Treaty's
competition rules in the energy sector and would consider to adopt Decisions
or Directive itself to address possible distortions of competition resulting
from different levels of liberalisation.
We are contacting Commissioner de Palacio's cabinet as well as some other
officials within the Commission and will report to you again on this issue
as soon as possible.

Regards,

Amaia

 <<Pres release 20.06.01.doc>>

 - Pres release 20.06.01.doc