COUNCIL RESOLUTION of 13 February 1975 concerning measures to be implemented to achieve the Community energy policy objectives adopted by the Council on 17 December 1974

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having taken note of the Commission communication on the Community production and consumption objectives for 1985 and the sectoral guidelines proposed for their attainment (1);

Considering the resolutions it adopted on 17 September and 17 December 1974 (2);

Whereas pursuit of the objectives laid down in its resolution of 17 December 1974 on Community energy policy objectives for 1985 requires the implementation of appropriate measures at Community level as well as by each Member State;

Paragraph 1 A. Invites the Commission periodically to recommend long-term guidelines on energy for the pursuit of these objectives, covering in particular any type of investment which such activities may involve.

Such guidelines are to help Member States to take the appropriate decisions.

B. These guidelines should take particular account for all energy sectors of the need: - to develop reliable energy resources as soon as possible under satisfactory economic conditions, which means: - applying Community support measures in certain cases,

- facilitating access to financing for the necessary investments in certain cases,

- making it possible for prices to cover, gradually and to the fullest extent feasible, the costs of making energy available and the amortization of the necessary investments,

- to aim at achieving the optimum location of energy investments by economic operators and to ensure the best return on investments, particularly by means of the optimum location of electric power stations, while taking into account safety and environmental aspects and by encouraging cooperation with a view to the optimum development of production and transport systems.

Paragraph 2

Expresses its willingness to employ the following means to achieve the objectives laid down in its resolution of 17 December 1974: I. ENERGY DEMAND: A. In addition to the programme on the rational use of energy which is the subject of the resolution of 17 December 1974, Community research and development projects and/or technological innovations should result in considerable energy savings.

B. Consumption of electricity will be increased to the extent that nuclear energy in particular reduces the dependence of electric power stations on hydrocarbons. This increase will also take account of the need to ensure the financing of investments in the electricity sector under satisfactory economic conditions.

II. ENERGY SUPPLY:

The energy resources of each of the Member States shall be developed as quickly as possible under satisfactory economic, social, environmental and safety conditions, taking account of national and Community requirements and of the objective of reducing Community dependence on external energy supplies.

(1) See COM(74) 1960 final, 1950 final, 1970 final, 1961 final, 1963 final and 1860 final annexed to R/3333/74 (ENER 57) (ATO 177) (CHAR 23) and R/446/74 (ENER 12). (2) See pages 1, 2 and 5 of this Official Journal. Paragraph 3

Approves the following guidelines for the policy to be implemented at both national and Community level for the various sources of energy: I. SOLID FUELS A. Community production

The maintenance of coal production at its current level and the development of brown coal and peat production, as mentioned in paragraph 5 (2) (A) of the Council resolution on Community energy policy objectives, require the definition and implementation of a solid fuels policy which takes into account the principles set out in paragraph 1 B above, particularly in respect of carrying out the necessary financial investments and having available a suitable labour force.

The commitment of such investments and the recruitment of the requisite labour force presuppose a stable and regular outlet for Community solid fuels under satisfactory economic conditions which take account of consumer interests. Consequently, it might be necessary to take measures to ensure their rational use in satisfactory economic conditions which take account of consumer interests in the principal sectors of consumption, namely the iron and steel industry and thermal power stations, and to build up stocks to offset the effects of fluctuations in demand and to avoid the interruption of supplies.

B. Access to the world market

Free access to the world market should, in a manner consistent with the attainment of Community production targets and in satisfactory economic conditions, be progressively extended to all Community coal consumers who do not at present have free access.

II. NUCLEAR ENERGY (1) A. Community policy in the field of nuclear energy should be defined and implemented with due attention to the principles set out in paragraph I B above.

B. Each year and in cooperation with interested parties the Commission shall draw up an outline programme of nuclear energy production targets to serve governments as a guide in shaping their national policies and to provide the necessary frame of reference for Community industries.

C. Providing nuclear energy problems of safety and ecology are solved to the satisfaction of the Member States concerned, their electricity supply programmes shall be based chiefly on nuclear energy for high-capacity power stations, in addition to the contribution made by solid-fuel power stations and taking into account those Community provisions which restrict the use of natural gas and petroleum products in electric power stations.

D. The abovementioned outline nuclear programme shall stipulate the Community's future nuclear fuel requirements.

E. 1. The Community nuclear fuel supply policy to be defined and implemented should obtain the maximum benefit from the initiative and freedom of action of producers and users and should improve security of supplies in this field by developing: - economical and secure resources in the Community,

- an industry with a capacity in appropriate proportion to Community requirements and capable of operating on the world market,

- cooperation with the countries producing natural uranium,

- research to encourage technological innovation.

2. In order to implement this policy, adequate measures to strengthen the industrial potential of the Community should be submitted for examination by the Council, due account being taken, at the appropriate time, of the work carried (1) The Danish delegation entered a reservation on the whole of point II. out in the various Council and Commission bodies.

3. To this end, consideration should be given to whether and how the Community should act in the following fields: - prospecting for minerals,

- the placing of orders for nuclear fuels sufficiently in advance,

- the means of ensuring reciprocal outlet and supply guarantees for producers and users,

- coordinated stockpiling of fuels.

4. The Supply Agency will be an essential instrument for implementing such a common policy.

5. For the sake of effectiveness the drawing up of such a joint nuclear fuel supply policy will require a revision of Chapter VI of the Euratom Treaty.

F. Member States and undertakings are requested to assist the Commission in drawing up practical proposals for submission to the Council under the joint supply policy and under the plan of action proposed by the Commission for promoting nuclear energy, of which the Council takes note.

III. HYDROCARBONS 1. Community hydrocarbons policy should be defined and implemented with due attention to the principles set out in paragraph I B above and be based on cooperation between hydrocarbon producer and consumer countries. It should, in particular, require exchanges of information and concerted action between public authorities and consultations between public authorities and industry and, where necessary, the means to act.

Such a policy presupposes: - the rational use of available resources,

- optimum development of hydrocarbon resources in the Community under satisfactory economic conditions taking into account the Community energy policy objectives defined in the Council Resolutions of 17 September and 17 December 1974,

- the diversification and securing of external supplies by greater effort to inform, concert action and consult as the case may be, and, where necessary, by joint industrial and commercial projects,

- consultation on investments planned and concerted action on the policies pursued by the Member States in this field,

- a consumer price policy, based on competition and the transparency of costs and prices. These principles could contribute to the alignment of price levels in the Member States, on the basis of actual changes in the conditions of supply.

2. The Council is willing to examine whether Community rules should be laid down for cases of supply difficulties in order to ensure balanced supply for the Community market and the maintenance of its unity in observance of the provisions of the Treaty.

Paragraph 4

Requests the Commission to submit proposals for the implementation of this resolution.