Ernst & Young says there is much work to be done to improve a preliminary unified energy policy proposal the European Union released last week for review. The green paper outlines a series of goals, including a single European market, gas storage, security of energy supply and harmonization of the grid operators. Jayesh Parmar, gas partner and head of security of supply at E&Y in London, says the main idea championed in the paper, one of an EU Energy Commissioner, is a positive. But he adds there are too many unknown variables, mainly a timeline the EU has in mind for wanting to accomplish certain goals, or how its plans will be realistically achieved. "There are vast array of challenges," he says.

A call and e-mail to Ferran Tarradellas i Espuny, spokeswoman at the EU in Brussels, were not returned.

Parmar says a single regulator would be a good idea, since regulation is done on a country-by-country basis. "It provides a clearer framework at the EU...takes out variability at the national level, and potentially clarifies the process at the national level."

There appears to be no date set for the proposal to come to fruition, Pamar says, noting that it is intended to encourage discussion at an upcoming EU meeting. The EU Heads of State and Government are scheduled to meet in Brussels March 23-24.