COUNCIL RESOLUTIONof 16 September 1986concerning new Community energy policy objectives for 1995 and convergence of the policies of the Member States(86/C 241/01)

THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having noted the Commission communication of 13 December 1984 on 'Member States' energy policies: main issues for the future' and the work carried out by the Commission departments on 'Energy 2000', Having noted the Commission communication of 31 May 1985 on new Community energy objectives, Having noted the recent Commission communications to the Council on various energy matters, Having noted the opinion of the European Parliament (1) , Having noted the opinion of the Economic and Social Committee (2) , Having noted the opinion of the ECSC Consultative Committee (3) , Having regard to its earlier resolutions of 17 December 1974 (4) and 9 June 1980 (5) , Having regard to its declaration of November 1983 on the role of energy policy within the Community, Whereas the adequate and secure availability of energy on a satisfactory economic basis remains a prerequisite for the pursuit of the economic and social objectives of the Community and of the Member States; Whereas, owing to current events on the energy market, there is still considerable uncertainty as to the long-term prospects for supply and demand; whereas it is therefore essential that the substantial progress already made in restructuring the energy economy be maintained and, if necessary, reinforced within the Community; Whereas, in order to achieve this goal, priority should be given, on the demand side, to containing energy consumption to a greater extent and to restricting the share of oil and, on the supply side, to ensuring that the level of dependence on imported energy, and in particular imported oil, is not unreasonable; Whereas experience has shown that the framework established by Community objectives is of considerable value as regards the coordination and harmonization of national energy policies; Whereas such objectives clearly demonstrate to consumers, producers and investors in the Member States and to third countries that the Community and its Member States are determined to improve their energy supply conditions; Whereas the role played by Member States, in the energy policy context, in enabling market forces to operate should be taken into account; Whereas political commitment to Community objectives entails effective monitoring of national policies and the adoption of appropriate measures at Community level and at national level to ensure their attainment; Whereas these objectives, which are ambitious but sufficiently flexible to respond to such changes as may alter the energy market, offer indicative guidelines for Community action and national policies without taking the form of rigid planning instruments; Whereas, to put the concept of Community solidarity into practice, Member States should, having regard to their own characteristics in the sphere of energy and in the light of their specific possibilities and constraints, make efforts of comparable intensity; Whereas the Community must have regular and appropriate information on Member States' energy policies between now and 1995 in order, on the basis of detailed Commission reports, to be in a position to verify the convergence of these policies in relation to Community objectives and the extent to which these objectives have been attained at Community level, 1. emphasizes that the aim of any energy policy is to enable consumers to have adequate and secure supplies of energy under satisfactory economic conditions, which is one of the prerequisites for competitive structures and satisfactory economic growth; 2. welcomes the results obtained over more than 10 years in the Community and in the Member States as regards improving the energy situation, these results deriving from the effectiveness of the policies pursued; 3. points out that, possible short-term fluctuations on the energy market apart, efforts made must be maintained and, if necessary, reinforced between now and 1995 and beyond that date in order to reduce to a minimum the risk of tension at a later date on the energy market and in particular on the oil market; 4. states that, in order to achieve the horizontal and sectoral energy objectives defined below: - each Member State and the Community as such should continue to rely upon an appropriate combination of policy measures and the operation of market forces, -the Member States should use these as a basis for defining their energy policies and continue efforts of comparable intensity, having regard to their own characteristics in the sphere of energy and in the light of their specific possibilities and constraints; 5. considers that the energy policy of the Community and of the Member States must endeavour to achieve the following horizontal objectives: (a) more secure conditions of supply and reduced risks of sudden fluctuations in energy prices through: - the development of the Community's energy resources under satisfactory economic conditions, -geographical diversification of the Community's external sources of supply, -appropriate flexibility of energy systems and, inter alia, the development, as necessary, of network link-ups, -effective crisis measures, particularly in the oil sector, -a vigorous policy for energy-saving and the rational use of energy, -diversification between the different forms of energy; (b) cost efficiency in the implementation of energy policy measures; (c) the application, in all consumption sectors and to all forms of energy, of Community energy price formation principles approved by the Council; (d) greater integration, free from barriers to trade, of the internal energy market with a view to improving security of supply, reducing costs and improving economic competitiveness; (e) a search for balanced solutions as regards energy and the environment, by making use of the best available and economically justified technologies and by improving energy efficiency, as well as taking account of the desire to limit distortions of competition in the energy markets by a more coordinated approach in environmental affairs in the Community; (f) the implementation, in appropriate frameworks, for those regions which are less-favoured, including those less-favoured from the point of view of energy infrastructure, of measures designed to improve the Community's energy balance; (g) the continuous and reasonably diversified promotion of technological innovations through research, development and demonstration and by rapid and appropriate dissemination of the results throughout the Community; (h) the development of the Community's external relations in the energy sector by virtue of a coordinated approach, in particular, on the basis of regular consultations between Member States and the Commission; 6. adopts for the Community as such the following sectoral objectives which should be regarded as indicative guidelines as regards their quantitative aspects and which could be used as a guide for examining the convergence and cohesion of the Member States' energy policies between now and 1995: (a) to achieve even greater energy efficiency in all sectors and act to highlight specific energy-saving possibilities. The efficiency of final energy demand (1) should be improved by at least 20 % by 1995; (b) to keep net oil imports from third countries within reasonable proportions by maintaining a policy of oil substitution and by continuing and, if need be, stepping up oil exploration and production in the Community, particularly in promising areas or areas not yet exploited. Oil consumption should be kept down to around 40 % of energy consumption and net oil imports thus maintained at less than one-third of total energy consumption in the Community in 1995; (c) to maintain the share of natural gas in the energy balance on the basis of a policy aimed at ensuring stable and diversified supplies and continuing and, if need be, stepping up, natural gas exploration and production in the Community; (d) to pursue efforts to promote consumption of solid fuels and improve the competitiveness of their production capacities in the Community, taking into account the new possibilities opening up on the market for uses of solid fuels with greater added value. The share of solid fuels in energy consumption should be increased; (e) to continue with, and step up, the measures taken to reduce as much as possible the share of hydrocarbons in the production of electricity. The proportion of electricity generated from hydrocarbons should be reduced to less than 15 % in 1995. Taking account in this regard of the substantial part played by nuclear power in the Community's energy supply, it is agreed that, on the basis of highest standards of safety, appropriate measures must ensure that all aspects of planning construction and operation of nuclear installations fulfil optimal safety conditions; (f) to maintain the development of new and renewable energy sources, including conventional hydroelectricity, in particular by continuing with the effort made and by placing greater emphasis on arrangements for disseminating results and reproducing successful projects. The output from new and renewable energy sources in place of conventional fuels should be substantially increased, thereby enabling them to make a significant contribution to the total energy balance; 7. requests the Commission to make all appropriate recommendations and proposals with a view to increasing the convergence and cohesion of the Member States' energy policies and promoting the attainment of the Community objectives defined above; 8. requests the Member States to submit to the Commission each year all appropriate information about their energy situations and energy forecasts and to inform it at the earliest opportunity of any substantial alteration in their energy policies; 9. requests the Commission to submit, approximately every two years on its own responsibility and in the light of the above information, a detailed survey of the progress made and problems encountered in each Member State and in the Community as a whole compared with the objectives and guidelines defined above; 10. notes that existing market conditions require flexibility of energy policy within clear guidelines; 11. asks the Commission to review the objectives set out above: - in the event of persistent structural changes in energy market conditions, -in any event before expiry of a five-year period, and to submit, if necessary, new long-term energy objectives. (1) OJ No C 88, 14. 4. 1986, p. 109.

(2) OJ No C 330, 20. 12. 1985, p. 8.

(3) OJ No C 190, 30. 7. 1985, p. 3.

(4) OJ No C 153, 9. 7. 1975, p. 2.

(5) OJ No C 149, 18. 6. 1980, p. 1.

(1) Ratio of final energy demand to GNP.