COUNCIL RECOMMENDATION of 28 July 1982 concerning the encouragement of investment in the rational use of energy (82/604/EEC)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof,

Having regard to the draft from the Commission (1),

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the Economic and Social Committee (3),

Having regard to the communication from the Commission on investment in the rational use of energy,

Having regard to the conclusions on energy pricing policy adopted by the Council on 3 December 1981 and 16 March 1982,

Whereas the present situation of relative easing of prices on the oil market ought not to lead to a relaxation of efforts to achieve more rational use of energy;

Whereas, even if the current drop in energy consumption is partly due to changes in the structure of demand, it is also largely due to a decline in economic activity ; whereas a revival of growth would thus very probably entail an increase in energy demand;

Whereas it is necessary not only to progress towards realization of the objectives which the Community has set itself, which are to restructure demand in favour of the more rational use of energy and to develop energy sources other than oil, but also to ensure that the results obtained in the Member States are constantly monitored;

Whereas, according to the Commission's calculations, investment in the rational use of energy represented only something in the order of 0 74 % of the gross domestic product in the Community in 1981 ; whereas it should, therefore, be increased considerably;

Whereas, by helping to improve the competitiveness of undertakings and by enabling new industrial activities to be developed, increased investment could be an important element in an energy and industrial strategy aimed at promoting lasting economic recovery;

Whereas, moreover, it may have a beneficial effect on employment;

Whereas, in view of the importance of this investment for economic activity and its specific nature in some cases, the public authorities should encourage such investment;

Whereas, in addition to special measures to promote certain types of investment, steps should also be taken to improve the general framework (energy, economic and financial policies) in which investment decisions are taken;

Whereas there is uncertainty concerning prices and the trend of the relative prices of the various forms of energy due, in particular, to the pricing and taxation policies currently applied in the Community;

Whereas this uncertainty has an adverse effect on investment decisions;

Whereas economic operators ought to receive better training and information on the importance of the rational use of energy both to their own activities and to the Community at large;

Whereas high, unstable interest rates are having an effect and, more particularly, in certain cases financial channels and financial arrangements need to be better adapted to the specific requirements and situations of investors; (1) OJ No C 107, 28.4.1982, p. 4. (2) OJ No C 149, 14.6.1982, p. 137. (3) Opinion delivered on 30 June 1982 (not yet published in the Official Journal).

Whereas the partitioning which still exists between national markets is hampering the development of the energy-saving and alternative-energy industries by preventing them from taking full advantage of possible economies of scale;

Whereas over-centralization of decision-making is liable to slow down the promotion and spread of the rational use of energy;

Whereas certain sectors, in particular the major energy-consuming industries, small and mediumsized undertakings and the building sector, face special problems;

Whereas the Member States should make a concerted effort to implement a consistent series of measures designed to overcome these problems and obstacles;

HEREBY RECOMMENDS THAT THE MEMBER STATES:

1. Step up their efforts to achieve a more rational use of energy: - by improving the conditions necessary to enable the economic operators concerned to increase significantly their investment in this area (1),

- by giving greater consideration over the whole range of investment to the requirement of rational use of energy.

The progress achieved in this respect will be subject to regular examination at Community level in the context of the periodic examination of the energy policies of the Member States.

The indicators used to assess this progress will take account of not only energy policy but also macro-economic, financial and sectoral aspects. They will be defined by the Commission in collaboration with the Member States.

2. In order to attain these objectives: - encourage the energy-saving drive mainly by providing appropriate information,

- apply energy pricing policies which unite the pursuit of energy objectives with efforts to ensure that prices truly correspond to market conditions and costs. Where it is the responsibility of the public authorities, the calculation of the constituent elements of energy prices to the final consumer should also take such objectives into account,

- encourage gas and electricity companies to define and apply a stable tariff structure which corresponds to energy policy objectives,

- improve training and information facilities for economic operators, in particular small and medium-sized undertakings and households, for example by ensuring that they have access to reliable advisory services,

- take steps in so far as is necessary to supply local and regional authorities with more information concerning Community loans and stimulate their interest in such loans,

- take steps in so far as is necessary to supply small and medium-sized undertakings with more information concerning Community loans available and stimulate their interest in such loans, particularly by encouraging them to draw up eligible projects jointly,

- where appropriate, encourage better adaptation of financial channels and financing arrangements to the specific requirements of priority projects involving investment in the rational use of energy,

- make maximum use ot the whole of the Community market by refraining from adopting laws, regulations and administrative measures, or implementing national standards, which hamper the free movement of equipment and services intended for a more rational use of energy,

- where existing administrative and legislative provisions stand in the way, simplify and speed up the procedures surrounding projects involving new installations which would enable local alternative energy resources (for example, blomass, solar energy, geothermal energy and small heads of water) to be exploited efficiently, subject to observance of safety and environmental-protection standards and technical rules,

- encourage a certain degree of decentralization of decision-making, since adaptation to (1) According to the Commission's estimates, investment in RUE in 1981 represented only 0 74 % of GDP, 1 79 % of GFCF and 25 % of energy investment. local conditions in particular is an important factor in the success of rational energy-use programmes directed towards the domestic sector and small and medium-sized undertakings,

- examine the possibility of using financial and/or tax incentives to encourage the final consumer to purchase energy-saving installations and equipment,

- provide substantial financial aid towards the renovation of buildings, where this contributes to energy-saving under sufficiently cost-effective conditions,

- ensure adequate continuity in financial and technical assistance programmes, so that prospective investors are better informed and, above all, are able to programme their investment,

- where appropriate, urge fuel and electricity companies to encourage householders to renovate their homes for energy-saving purposes, by supplying adequate services ranging from assistance in obtaining loans to advice on the choice of equipment.

Done at Brussels, 28 July 1982.

For the Council

The President

O. MØLLER