Energy is something we all take for granted, yet this winter real concerns were expressed about whether we had enough supplies to get through a particularly cold snap.

Then, in January, Russia took the political decision to cut off gas supplies to the Ukraine and Europe's vulnerability to gas shortages was in the headlines around the world.

European Union countries currently import 40 per cent of their gas from Russia, and almost 80 per cent of that gas is transported through the Ukraine. As North Sea oil and gas production slows down, our dependence on energy imports will continue to rise and the European Commission has estimated that over the next few years we will begin to import about 90 per cent of our oil and gas needs in Europe.

The crisis highlighted concerns about Europe's energy dependency and the security of future supplies and reminded us how the supply of energy can be used as a political tool. It has also exposed one of the fundamental weaknesses of European energy policy as it stands - that national interests have hampered efforts to create an internal energy market and bring about a common energy policy.

This has left Europe vulnerable and exposed to future scares and if we are to resolve this issue and make sure that a similar situation, or worse, cannot happen again, we need to co-operate and tackle the problem at a European level.

Once the dispute between Russia and the Ukraine had been resolved, it was important that we learned the lessons from the situation and two main priorities in particular stood out.

First, Europe needs to guarantee a reliable supply of energy, particularly gas, and, second, our energy market must be efficient, competitive and properly liberalised. If these goals are to be achieved then the member states must make a commitment to work together to build a coherent common energy policy.

At the same time, we must make sure that we keep environmental sustainability at the top of the agenda.

In October last year, at an informal meeting of EU leaders at Hampton Court to discuss the challenge of globalisation, Tony Blair presented a plan on how the EU could take a common approach to energy policy so we can effectively tackle issues like security of supply, climate change, high oil prices and the internal energy market.

There was an agreement to look at potential ways to move the energy sector forward, including how we try to establish a common European grid. The dispute between Russia and the Ukraine has clearly illustrated that this now has to be one of Europe's top priorities, and that a strengthened energy policy is needed urgently.

Austria has recently taken over the Presidency of the EU from the UK and has said energy security will be at the top of its agenda, particularly looking at security of gas supplies, increasing energy efficiency and the need for Europe to reduce its dependency on fossil fuels. Our energy supply has to be more diverse and we need to fund research into new technologies and renewable energies.

Society is changing rapidly. We are increasingly aware of the impact of global warming and the damage greenhouse emissions cause, but, at the same time, our need for energy is greater than ever.

The challenge we face is not just how to maintain a secure supply of energy, but how to do so in a sustainable way. If we are serious about tackling climate change Europe must set itself ambitious goals for increasing the use of renewable technologies and work towards becoming a low-carbon economy.

So what can we do? The Austrian presidency has given a clear commitment to promote the use of biomass in the EU. Biomass is a renewable energy resource produced from organic non-fossil material, for example animal waste and plant matter, and can be used to generate fuel, electricity, and heat.

It has been argued that the use of biomass for energy needs in Europe could more than double over the next four years. But biomass clearly is not the answer to all our problems.

We must also work hard to improve our energy efficiency. We waste an incredible fifth of our energy and increased energy efficiency can play a key role if we are to meet our Kyoto targets. If we can cap EU energy demand at current levels and then look at reducing it, we are not only helping to reduce environmental pollution, but also making a vital contribution towards maintaining security of energy supplies for the future.

We can all make a difference and save ourselves money by changing to energy-saving light bulbs, for example, or making sure we switch off lights and don't leave the TV or computer on stand-by.

The EU energy policy also has at its heart the creation of a single market for goods and services. The liberalisation of energy markets has been good for British consumers but other EU members have been slow to follow and the European Commission has complained of malfunctions in EU energy markets.

At the December Energy Council of Ministers it was agreed that the opening up of the energy market had not happened as comprehensively and quickly as had been expected and that all member states must put existing legislation into practice.

The British government made a real breakthrough by getting the other member states to agree to substantial improvements in the way that European gas and electricity markets function, which should lead to competitive prices for consumers and businesses.

But there are a number of difficulties facing us as we work towards developing a common energy policy. At the moment each one of the 25 member states has their own policy for managing their energy supplies, and proposals to bring about gas storage across the EU were thrown out two years ago.

The potential crisis in supply that the Russian situation highlighted has shown that we cannot continue with each country arbitrarily managing its own energy priorities with the expectation that its needs will continue to be met. The new member states of eastern Europe were the most badly affected by Russia's decision to cut the gas supply to the Ukraine and they are likely to push for a policy which gives them more secure energy supplies and less dependence on Russia.

So if we are to have future secure energy supplies we must work together to remove the obstructions to a common policy. A properly co-ordinated common policy will not just help the stability of supply but will also promote greater competition. Also if we use our collective power Europe can move to a stronger and more secure bargaining position with suppliers.

So the question is 'if we are to move towards a common energy policy, what will it look like?'

This is up for debate. Tony Blair has suggested it should include the creation of a genuinely open energy market, developing clean technologies, increased energy efficiency and speaking to major energy suppliers at a European level, using our collective weight to make our voice heard. We must also be prepared to invest more in our own energy supplies.

The European Commission hopes to have a paper looking at an improved energy policy to be debated at the European Council in March.

We must have a broad debate about the policy options that can lead us to a sound and coherent energy policy. An effective approach can be achieved, balancing the need for a guaranteed security of supply with environmental protection.

We need a strong policy of diversification to reduce our dependency on any one supplier, while promoting energy efficiency and savings. And we must meet our international commitments to the environment by investing in renewable energies and clean technology.