It's not necessarily that European energy policy should be managed on the EU level -- i.e. that individual countries giving up some of their energy "sovereignty" to the European Union level -- but rather that this document is revealing a blatant bias among the EU upper ranks towards "free market" ideology.  Is that correct?

If so, what if this document showed a more "pro-regulation" slant, or even if it simply revealed a genuine interest in getting true feedback from EU citizens?  In that case, could letting Eureopean energy policy be managed on the EU level, rather than on an independent country level, be at least contemplated as an acceptable alternative?*

This, at least, is how I am interpreting Jerome's comment:

The EU could be the appropriate level to regulate the sector, but not for so long as it keeps its pure market ideology.

*Assuming of course that the EU Energy Regulator demonstrated a viable strategy to addressing the points that Jerome outlines:

renewables require subsidies and a supportive legal framework; energy efficiency requires public action on standards definition and enforcement, R&D, monetary incentives; security of supply requires long term commitments and diplomatic/commercial relations...  security of supply and the accounting of externalities require consistent policies over the long term, serious enforcement power, a lot of political support.