Ethical rules needed to boost energy sector

Energy companies in the US and Europe should work together to establish rules for ethical behaviour to restore confidence in the energy sector and boost the liberalisation process, according to Janine McArdle, managing director of Aquila Europe.

Speaking at RiskNews’ sister publication Energy and Power Risk Management magazine's annual European conference in Amsterdam today, McArdle said deregulation in both the US and Europe was at risk of stagnating at a crucial time in the development of the industry. She added that companies needed to resist the temptation to take the safe route and instead push for greater liberalisation.

Her comments came a day after the resignation of Chuck Watson, chairman and chief executive of energy marketer Dynegy. Watson stepped down following a calamitous drop in Dynegy's share price, from a year high of $57.50 to a low of $6.70 earlier in May.

Watson will be replaced by Glenn Tilton, vice-chairman of ChevronTexaco, who takes over as interim chairman. ChevronTexaco owns a 26.5% stake in Dynegy. Shares in the energy company rose as much as 8%, to $10, on the news.