----

COMMON POSITION (EC) No 1/2006

adopted by the Council on 1 December 2005

with a view to adopting Decision No .../2006/EC of the European Parliament and of the Council of ... laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC

(2006/C 80 E/01)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 156 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee (1),

Following consultation of the Committee of the Regions,

Acting in accordance with the procedure laid down in Article 251 of the Treaty (2),

Whereas:

HAVE ADOPTED THIS DECISION:

Article 1

Subject matter

This Decision defines the nature and scope of Community action to establish guidelines for trans-European energy networks. It establishes a series of guidelines covering the objectives, priorities and broad lines of action by the Community in respect of trans-European energy networks. These guidelines identify projects of common interest, including those which have priority, among trans-European electricity and gas networks.

Article 2

Scope

This Decision shall apply:

Article 3

Objectives

The Community shall promote the interconnection, interoperability and development of trans-European energy networks and access to such networks in accordance with Community law in force, with the aim of:

Article 4

Priorities for action

The priorities for action by the Community on trans-European energy networks shall be compatible with sustainable development and shall be as follows:

Article 5

Lines of action

The broad lines of action by the Community on trans-European energy networks shall be:

Article 6

Projects of common interest

1.   The generic criteria to be applied when a decision is taken on identification, modifications, specifications to or applications for updating projects of common interest shall be the following:

The evaluation of the economic viability shall be based upon a cost-benefit analysis which takes account of all costs and benefits, including those in the medium and/or long term, in connection with environmental aspects, security of supply and the contribution to economic and social cohesion. Projects of common interest which relate to the territory of a Member State shall require the approval of the Member State concerned.

2.   Additional criteria for identifying projects of common interest are set out in Annex II. Any changes to the additional criteria for identifying projects of common interest set out in Annex II shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

3.   Only those projects listed in Annex III which fulfil the criteria laid down in paragraph 1 and those set out in Annex II shall be eligible for Community financial aid provided for pursuant to Regulation (EC) No 2236/95.

4.   The indicative project specifications, comprising the detailed description of the projects and, where appropriate, their geographical description, are set out in Annex III. These specifications shall be updated in accordance with the procedure referred to in Article 11(2). Updates shall be of a technical nature and shall be limited to technical changes of projects, or to modification of a part of the specified routing, or to limited adaptation of the location of the project.

5.   Member States shall take any measures they consider necessary to facilitate and speed up the completion of projects of common interest and to minimise delays while complying with Community law and international conventions on the environment. In particular, the necessary authorisation procedures shall be completed rapidly.

6.   Where parts of projects of common interest are situated within the territory of third countries, the Commission may, by agreement with the Member States concerned, put forward proposals, where appropriate within the framework of the management of the agreements between the Community and those third countries and in accordance with the Energy Charter Treaty and other multilateral agreements in respect of third countries which are parties to that Treaty, for the projects also to be recognised as being of reciprocal interest by the third countries concerned, in order to facilitate their implementation.

Article 7

Priority projects

1.   The projects of common interest referred to in Article 6(3) and covered by the axes for priority projects set out in Annex I shall have priority for the grant of Community financial aid provided for pursuant to Regulation (EC) No 2236/95. Amendments to Annex I shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

3.   Priority projects shall be compatible with sustainable development and meet the following criteria:

Article 8

More-favourable context

1.   In order to contribute to creating a more favourable context for the development of trans-European energy networks and their interoperability, the Community shall take account of Member States' efforts made in line with that objective, shall attach the greatest importance to and shall promote as necessary the following measures:

2.   The Commission shall, in close collaboration with the Member States concerned, take all initiatives for promoting the coordination of the activities referred to in paragraph 1.

3.   The measures necessary for the implementation of the activities referred to in points (a) and (b) of paragraph 1 shall be decided upon by the Commission in accordance with the procedure referred to in Article 11(2).

Article 9

Effects on competition

When projects are considered, their effects on competition and on security of supply shall be taken into account. Private financing or financing by the economic operators concerned shall be the main source for financing and shall be encouraged. Any competitive distortion between market operators shall be avoided, in accordance with the provisions of the Treaty.

Article 10

Restrictions

1.   This Decision shall not prejudice financial commitments entered into by a Member State or by the Community.

2.   This Decision shall be without prejudice to the results of the environmental impact assessment of projects and of the plans or programmes which define the future authorisation framework for such projects. The results of the environmental impact assessments, where such an assessment is requested in accordance with relevant Community legislation, shall be taken into consideration before a decision on the carrying out of the projects is actually taken in accordance with the relevant Community legislation.

Article 11

Committee procedure

1.   The Commission shall be assisted by a Committee.

2.   Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.

3.   The Committee shall adopt its rules of procedure.

Article 12

Report

Every two years the Commission shall draw up a report on the implementation of this Decision, which it shall submit to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

In this report, attention shall be given to the implementation and progress made in the carrying out of priority projects which concern cross-border connections as mentioned in Annex II, points 2, 4 and 7, as well as the detailed arrangements of their financing, especially as regards the contribution of Community funding.

Article 13

Repeal

Decision 96/391/EC and Decision No 1229/2003/EC are hereby repealed.

Article 14

Entry into force

This Decision shall enter into force on the 20th day following its publication in the Official Journal of the European Union.

Article 15

Addressees

This Decision is addressed to the Member States.

Done at ...

For the European Parliament

The President

For the Council

The President

----

(1)OJ C 241, 28.9.2004, p. 17.

(2)  Opinion of the European Parliament of 7 June 2005 (not yet published in the Official Journal).

(3)OJ L 176, 15.7.2003, p. 11.

(4)OJ L 176, 15.7.2003, p. 37. Directive as amended by Council Directive 2004/85/EC (OJ L 236, 7.7.2004, p. 10).

(5)OJ L 176, 15.7.2003, p. 57.

(6)OJ L 228, 23.9.1995, p. 1. Regulation as last amended by Regulation of the European Parliament and of the Council (EC) No 807/2004 (OJ L 143, 30.4.2004, p. 46).

(7)OJ L 184, 17.7.1999, p. 23.

(8)OJ L 161, 29.6.1996, p. 154.

----

ANNEX I

TRANS-EUROPEAN ENERGY NETWORKS

Axes for Priority projects as defined in Article 7

Priority projects included on each axis are listed

ELECTRICITY NETWORKS

GAS NETWORKS

----

ANNEX II

TRANS-EUROPEAN ENERGY NETWORKS

Additional criteria for identifying projects of common interest referred to in Article 6(2)

ELECTRICITY NETWORKS

GAS NETWORKS

----

ANNEX III

TRANS–EUROPEAN ENERGY NETWORKS

Projects of common interest and their specifications, currently identified according to the criteria set out in Annex II

ELECTRICITY NETWORKS

1.   Developing electricity networks in isolated regions

2.   Developing electricity connections between the Member States

3.   Developing electrical connections within the Member States

4.   Developing electricity connections with the non-member States

5.   Actions improving the functioning of the interconnected electricity networks within the internal market

(No specifications defined yet)

GAS NETWORKS

6.   Introducing natural gas into new regions

7.   Developing gas connections in order to meet the needs of the internal market or strengthening of the security of supply, including connection of separate natural gas networks

8.   Developing capacities for receiving LNG and for storage of natural gas

9.   Developing gas transport capacity (gas supply pipelines)

10.   Actions improving the functioning of the interconnected gas networks within the internal market

(No specifications defined yet)

----

STATEMENT OF THE COUNCIL'S REASONS

I.   INTRODUCTION

On 10 December 2003, the Commission presented a proposal for a Decision of the European Parliament and of the Council laying down guidelines for trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC (1).

The European Economic and Social Committee delivered its pinion (2) on 2 June 2004. The Committee of the Regions decided not to present an opinion.

The European Parliament adopted its opinion (3) at first reading on 7 June 2005.

On 8 December 2005, the Council adopted its Common Position in accordance with Article 251 of the Treaty.

II.   OBJECTIVE OF THE PROPOSAL

The main purpose of this proposal is to adapt the trans-European energy guidelines adopted in June 2003 (4), in particular with respect to new Member States, and allow for funding (5) of projects of common interest to the enlarged Union. The revision of the guidelines includes projects which will facilitate the integration of new Member States into the internal market of electricity and gas. It addresses also the need to include projects involving the ‘neighbouring countries’.

Furthermore, with respect to the mechanisms provided for the preparation and implementation of priority projects, the Commission proposed two new provisions, namely:

Finally, the proposal also includes ‘olefin gases’ in the scope of the Decision; however, projects related to olefin gases would not be eligible for Community funding under Regulation (EC) No 2236/95.

III.   ANALYSIS OF THE COMMON POSITION

1.   General remarks and main changes introduced by Council

Generally speaking, the Council endeavoured to simplify the structure of the Decision (in terms of levels of priorities and number of Annexes) and keep it as close as possible to Decision No 1229/2003/EC.

Council supports the main aim of the Commission's proposal: to adapt the trans-European energy network guidelines to the consequences of the recent enlargement of the Union. However, Council did not accept the new elements introduced by the Commission in this proposal (as compared to Decision No 1229/2003/EC) i.e. the creation of a new, additional category of ‘projects of European interest’ (Article 8), combined with provisions concerning the implementation of such projects (Article 9) and the European coordinator (Article 10).

It has been argued that these new provisions have been accepted by Council in relation with trans-European transport networks. However, two significant differences distinguish the trans-European energy networks from the trans-European transport networks: the very limited budget available for trans-European energy networks and the fact that energy infrastructure projects are normally undertaken by private investors. Thus, the effect that the creation of an additional category of ‘projects of European interest’ could have in practice would be to effectively exclude TEN-financing altogether for a ‘normal priority project’ which a private investor would be willing to consider. Regarding the provisions on a possible ‘European coordinator’, the Council is of the view that far less bureaucratic provisions could be retained for the same purpose as noted by the European Parliament itself in its amendment 21.

The Council notes in this respect the wide scope of the enabling provision set out in Article 8(2). Taking into account the aforementioned two differences, and the negative effect which the creation of an extra category could have on the realisation of other viable projects, has led Council to the conclusion that the added cost and administrative burdens, imposed on Member States as a result of the provisions contained in Articles 8 to 10 of the Commission's proposal, are disproportionate in relation to their potential benefit.

During an informal trialogue with the EP which took place during the preparation of the common position, compromises were reached on the issues of appropriate references to olefin gases and renewable sources of energy; these compromises are included in the common position.

2.   European Parliament amendments

Concerning the 30 amendments adopted by the European Parliament, the Council has accepted the following 20 amendments:

Council rejected the following 10 amendments: 3, 9, 10, 13, 14, 15, 18, 19, 38, 21.

3.   Other changes introduced by the Council

Concerning the Commission proposal, the Council has introduced a number of changes which are reflected below.

IV.   CONCLUSION

Council supports the main aim of the Commission's proposal, which is to adapt the trans-European energy network guidelines to the consequences of the recent enlargement of the Union. It has accepted, in the framework of an informal trialogue, compromise solutions on various issues. In view of the importance which the adaptation of the trans-European energy network guidelines holds, for the Union as a whole and in particular for the new Member States, Council is in favour of a quick adoption of an easy-to-implement Decision.

----

(1)  Doc. 6218/04 ENER 49 RELEX 62 CODEC 198, not published in the Official Journal.

(2)OJ C 241, 28.9.2004, p. 17.

(3)  Doc. 9835/05 CODEC 471 ENER 92 RELEX 295, not published in the Official Journal.

(4)  Decision No 1229/2003/EC of 26 June 2003 laying down a series of guidelines for trans-European energy networks and repealing Decision No 1254/96/EC (OJ L 176, 15.7.2003, p. 11).

(5)  It is recalled that the granting of Community financial aid in the field of trans-European networks is governed by Regulation (EC) No 2236/95 as amended by Regulation (EC) 807/2004 of 21 April 2004.

(6)

Note: in amendments 24 to 29 which concern the annexes, Council did not accept the references to ‘projects of European interest’ as well as the changes made to Annex I, Electricity networks, EL.7.

----