Central Europe Energy Partners (CEEP) is consistently in favour of maintaining the balance between the European economic policy and climate policy, and of re-invigorating Europe's economic recovery. We believe that the energy policy which does not take notice of the different levels of economic development across Member States works to the detriment of Central European countries. It is therefore important that we keep persuading and raising awareness of governments, parliaments, and the general public in the Community that the objectives of Europe's climate policy need to be revised, particularly when it comes to reduction of carbon dioxide emissions, considering the need to achieve more balanced economic and social development, especially in Central Europe. If we truly believe in the strength and competitiveness of European economy, we should allow Member States to use the least expensive and most accessible indigenous energy resources, while consistently reducing carbon emissions. Above all, a responsible energy policy must take account of the differences in the economic development across the EU.

Speaking with one voice

In 2013, the voice of Central Europe Energy Partners was clearly heard in the ongoing debates. Our position on matters such as backloading, energy prices, or the need to re-industrialise Europe was widely quoted and commented upon. We presented our views at seminars and panel discussion in Bratislava, Vilnius, Katowice and Krynica-Zdrój, and also in Brussels at the European Coal Days in the European Parliament, when the Polish Deputy Prime Minister, in the presence of many MPs, ministers, representatives of the European Commission and experts, presented Poland's position on the European Union's energy policy. May 2014 will mark the fourth anniversary of the creation of Central Europe Energy Partners. The partnership, then started by four Polish companies and Polskie Forum Akademicko-Gospodarcze (Polish Higher Education-Business Forum), now brings together twenty-two companies and scientific organisations from countries such as the Czech Republic, Lithuania, Romania, Slovakia, and, last but not least, Poland. We are still negotiating with many companies and organisations from all over Central Europe. Members of CEEP employ about 250 thousand people in total, and their aggregate revenues are estimated at PLN 180bn. CEEP companies come from various industries, including the minerals, power, metallurgical, chemical, and liquid fuels sectors. We are all committed to reaching compromise and developing a coherent energy policy for the entire region. Our plan is to present the policy to the European Commission and European Parliament, speaking with one voice on behalf of all Central European nations. We should bear in mind that CEEP's mission is not only to represent the interests of its members; our goal is also to develop effective mechanisms fostering economic growth in the region populated by over 100 million Europeans, many of them being customers, business partners or employees of CEEP members.

Keeping the pace

This year, the key task for Central Europe Energy Partners will be to continue to promote and support integration of the energy sector in Central European countries. While fully endorsing the Community's 20-20-20 targets, CEEP will promote an optimum approach to achieving the EU's climate protection, sustainable development and energy security policies. This means our support for the common, wide-ranging and comprehensive EU policy, taking account of the interests of Central European Member States, including initiatives such as creation of the internal energy market or building the Central European energy corridor and the North-South transport corridor. Setting new climate and energy objectives until 2030 and adoption of new guidelines for the exploration for and production of shale gas will be equally important. The drivers of and obstacles to economic recovery must be carefully examined. We must rebuild the value and importance of social community, as well as the European Union's competitiveness in the global market. Dynamic growth of the manufacturing in Europe, based on competitive energy prices and diversified access to raw materials, will be a significant and effective element of this process. I do realise that this is a long-term effort that will need a great deal of debate and compromise; but I believe that this is a challenge worth taking to build security and prosperity in Poland and in Europe.

In the shadow of Asia and the US

The report prepared for CEEP by the consulting company Roland Berger, presented during last year's GLOBSEC conference in Bratislava, highlighted the gaps between UE-15 and the new Member States which joined the Community after 2003 (dubbed as UE-11). We have noted that Brussels proposes a single energy policy, which will only cause a gradual rise in energy prices; this, in turn, will slow down economic growth of Central European countries which are now a driving force behind the Community's development. To achieve the objectives of the 2020 energy policy, Central European countries must invest EUR 400bn-460bn in high-efficiency energy production facilities and transmission infrastructure. These are heavy investments, and their costs will have a major impact on the prices of electricity. We estimate that prices could go up by as much as 40–60% for industrial customers in EU-11, and energy bills for households would also increase. We are aware that the economies and societies of Central Europe, where GDP is on average three times lower than in EU-15, will not accept this scenario. The European Union must also face greater competition from Asia and the US, which only adds to the problem. Europe has been dealing with competition from Asian companies for quite some time now, which results mainly from lower costs of labour; however, competition from the US, the country that is currently undergoing the revival of investment activity, is a new challenge for the EU. According to the most recent draft report of the European Commission, the average price of gas in 2012 in the EU was four times higher than in the US for industrial customers and 2.5 times higher for households. These differences translate directly not only into lower competitiveness of European economy in the global market, but also into higher prices of products and services bought by millions of Europeans every day.

Paweł Olechnowicz is Chairman of the Board of Directors of Central Europe Energy Partners