Angus Johnston

Maintaining the Balance of Power: Liberalization, Reciprocity and Electricity in the European Community

Electricity has long been taken for granted in much of the western world. It is such an essential part of our everyday lives that we accept its 24 hours-a-day availability almost without thinking, at least until the bill arrives. Yet recent changes in political and economic philosophy have led to greater scrutiny of the sector and its structure. However, in a field so historically sensitive, both politically and economically, for many years calls for reform and liberalization met with significant opposition. The negotiations on EC electricity liberalization have been difficult, hard-fought and, as a result, lengthy. The many compromises which have had to be made have led to a rather uncertain situation as regards the requirements of this new phase of liberalization. One of the consequences of this uncertainty is the reciprocity provision in the Directive for the internal market in electricity. This paper places the idea of reciprocity in electricity trade in the context of the EC-level liberalization negotiations, before analyzing the purpose of such reciprocity provisions, both in general and in the energy context. It then moves to a legal analysis of the framework for the operation of the reciprocity clause in the ECs first electricity Directive: this covers both the terms of the Directive themselves and their interaction with general principles of free movement and competition law under the EC Treaty. It is concluded that the provision itself leaves much to be desired as a matter of drafting and practical operation; further, Member State attempts to enforce national law reciprocity provisions will need to be scrutinized very carefully to ensure that they do not run contrary to the laws of the ECs internal market.

Will the Sparks Fly? The Role of the European Union in the Liberalisation of the Electricity Industry

The process of liberalizing the European electricity industry has been a lengthy one, notable for the important role played by the European Union in its ongoing development. While the natural focus of most discussion of the EUs role has been upon the legislative program, it is also important to remember that the general rules in the EC Treaty concerning taxation, free movement and competition law (to name but a few areas) will be key in developing and regulating the growth of cross-border trade in electricity. This article seeks to provide a brief discussion of the main legislative developments up to 1 March 2001 and then to consider the possible impact of the general rules of the EC Treaty on this sector. Particular attention is paid to rules on free movement (and their interaction with national environmental protection goals) and to the development of Competition Law at the European level (discussing both general issues and questions of European activity in the public services field). The general picture is one of increasing willingness (on the part of the Commission and private actors) to use these general Treaty provisions to try to secure greater trade and more open markets, although the European Courts have taken a rather cautious approach in the case law to date.

The Office of the Lord Chancellor. By DIANA WOODHOUSE. [Oxford: Hart Publishing. 2001. viii, 292 (Bibliography) 6 and (Index) 5 pp. Hardback. £22.00 net. ISBN 1–84113–021–4.]

I t seems that it is becoming increasingly difficult to keep the Lord Chancellor out of the headlines. The fact that this publicity has often related to matters which some dismiss as trivial should not blind us to the serious substance which underlies such attention and concern. Some aspects of the roˆle of the Lord Chancellor have received greater scrutiny than others in recent years: discussions concerning the judicial appointments system and the personal judicial position of the Lord Chancellor have been frequent, as has criticism of his party fund-raising exploits and expensive taste in wallpaper. However, an overall picture of the function, tasks and powers of the Lord Chancellor has been more difficult to draw together, particularly in the light of developments in recent times which have conferred greater responsibility upon the Lord Chancellor and his Department. Diana Woodhouse’s admirable and critical book seeks to provide both such an overview and proposals for possible (and arguably very necessary) reforms.