Germany's government plans to establish a separate authority to regulate the country's gas market.

HASSE FARSTAD

German economics minister Werner Müller said this after Germany's industry and gas industry associations had failed to reach a voluntary gas pipeline access agreement ("Verbändevereinbarung II") by Monday's deadline, international news services reported. (see Europower story 12.04.02).

"I very much regret" the fact that distributors, importers and customers could not agree on a pact to ease access to Germany's pipeline network, Müller said at a press conference at the Hanover industrial trade fair, Bloomberg News reported.

Unlike other European Union countries, Germany does not have an independent regulator to oversee competition in its energy markets. Instead energy consumers and producers, so far, have established competition guidelines among themselves.

The German government will set up a task force to prepare a gas-industry regulator, Müller stated.

The VIK, BGW, VKU and BDI associations were scheduled to sign a complete agreement Monday in Hanover, Germany, witnessed by the economics minister. The parties had yet to agree on cost and tariff issues for so called third party access to Germany's natural gas grids.