ALARMED by a surge in energy costs and the threat of an acute gas shortage, the European Commission has made an attempt to seize control of energy policy from national governments.

The move follows a decision by Britain to yield control over energy policy to Brussels when output of North Sea oil and gas has gone into sharp decline, contributing to a big increase in domestic heating bills.

The common energy policy, announced yesterday, marks a dramatic step in the integration of Europe on a key strategic issue, akin to the creation of the Common Agriculture Policy and the single trade policy, transferring considerable powers from national capitals to Brussels.

José Manuel Barroso, the President of the Commission, said: “We are proposing a common strategy for energy. We are in a new energy century. Demand is rising. Europe’s reserves are declining. There is underinvestment and our climate is changing.

“We must have an approach to match this new reality — the EU can no longer afford 25 different and uncoordinated energy policies.”

Brussels proposes the creation of a single European electricity grid, new gas and oil pipelines into the heart of the EU from North Africa, the Middle East and the Caspian region and the setting up of emergency gas stocks to be shared by members in the event of a disruption in supplies.

There would be a European energy regulator and an EU energy observatory to advise of any problems ahead. However, it would be left to governments to decide whether or not to build nuclear power stations or invest in renewable energy such as wind farms.

Brussels would also take over energy negotiations with third parties such as Russia, Europe’s main energy supplier, arguing that EU members will get a better deal if they combine forces rather than negotiate on their own. Senhor Barroso will hold talks with President Putin of Russia about energy issues next week. Mr Putin has been invited to address EU leaders about energy at a summit in a fortnight.

Peter Mandelson, the EU Trade Commissioner, said: “Europe’s leaders have sometimes been tempted to compete with each other in vying for a close personal relationship with President Putin, but Europe will only be able to negotiate successfully with Russia on energy, or on other issues, if we determine first, as a group, how we want our relationship with Russia to develop.”

Until recently many member states have jealously guarded their sovereignty over energy policy, declaring it a sensitive national issue. Britain has traditionally had the greatest reservations because of fears that Brussels would take control of its North Sea oil.

However, many governments felt compelled to join forces because of their inability to prevent a doubling of gas and oil prices in the past two years and amid fears over energy security after Russia cut off gas supplies to Ukraine until it agreed to pay far higher prices. There is also longer-term concern about unstable Middle Eastern countries having control of Europe’s oil supplies and that China may try to exert control over global energy supplies as it grows into an economic superpower.

At present Europe has to import about half of its energy but that is due to rise to 70 per cent in the next few decades. On current trends, by 2030 more than 80 per cent of Europe’s gas will come from three countries — Russia, Algeria and Norway. Tony Blair announced a U-turn at the Hampton Court summit last year when he and other EU leaders asked the Commission to draw up the common energy policy.

Malcolm Wicks, the Energy Minister, welcomed the Commission’s proposals yesterday. He said: “We are entering into a new energy era where the world’s regions are dependent on each other for ensuring energy security. No longer can energy policy be created by each EU member state in complete isolation. By speaking with the same voice, towards the same goals, the Union can achieve its energy goals for the benefit of all EU citizens.”

Alan Duncan, the Shadow Energy Secretary, welcomed the liberalisation of the energy market but opposed a new bureaucracy to run “a transEuropean energy regime”.