The European Commission wants to open electricity and gas markets to full competition by 2005, the EU Energy Commissioner said yesterday. Ms Loyola de Palacio told a conference in Berlin she would bring forward proposals to accelerate liberalisation next month.

"I am planning to present to the Council of Ministers and the European Parliament a proposal to completely open the gas and power markets by 2005. That is my goal," she said.

Ms Palacio's proposal represents a dramatic curtailment of the current timetable for opening up Europe's gas and electricity market. One-third of gas markets are due to be opened up by 2008 and one-third of electricity markets by 2003.

Germany, Britain and most Scandinavian countries have already opened their electricity markets to competition and Germany and Britain have fully liberalised their gas markets.

Ms de Palacio also wants to tighten rules on separating generation, network and other operations within former energy monopolies, a process known as unbundling.

"The unbundling requirements of the gas and electricity directive need to be strengthened," she said.