ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)364
Vol.1978/0138

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)364 final
Brussels ,28September 1978
PROPOSAL FORACOUNCIL REGULATION FORA
COMMUNITY AIDSYSTEM FORINTRA-COMMUNITY TRADEIN
POWERSTATION COAL
(Presented "bytheCommission totheCouncil)
COM(78)364final

Explanatory Memorandum
1.TheCommunityenergynoYicyasftrelatestocoal
%
IntheobjectivesforenergypolicylaiddownfortheCommunity,in1974
and1975emphasiswagputontheneedfortheenergysourcesavailablein
individual MemberStatestobedevelopedinordertoreducedependence on
importedenergy,particularly oil.Itwasexpresslyrequestedthatproduc­
tionofhard-coalbemaintained atthe1973level(250milliontee)anda
stableandregularmarketforCommunitycoalwasregardedas,aprecondition
forthis.• v
Theconsideration behindtheseobjectives .remainunchanged.Thebalance-
sheetwhichtheCommission drewupin'its"SecondReportontheAchievement
ofCommunityEnergyPolicyObjectivesfor1985"(Doc.COMC77>395final)frpm
anexamination ofthenationalfenergyprogrammes ,ofMember -Statesclearly
/ */showedthensedtoreducetheCommunity'sdependence onimportedenergy
.fay-50%>andalsotobrinedowntheproportion ofoilintheCommunity's1
energyconsumption byaconsiderable amount~bothby1985."Ircthiscontext
theforeseeable delayinnuclearpowerprogrammes wouldhavetobe-.-suppiemen
tedbyahadditionalcoal-burnof30-railLiontonnes'' .'inthermal ,power-station
1 - '
.Thewetl-krrovm WA'ESstudyalsoreachestheconclusionthatcoalisthe
onlyfossilenergysourcewhichcanbeexpectedtoremainplentiful .-until
theand-oftMscenturyandfarintothenextatcomparatively lowcosts.
Itisoneof*the:chiefenergysubstitutes whichcanfillthe'gap-between
'theoil'andgas.eraandtheag'-?-ofrenewableenergysources.WAESconsiders
1
WorkshoponAlternative EnergyStrategies ..

thattMsdependsonan.activedevelopment prog;ammeinvot'/'tniVconsumers
andproducers. -.-' '/:..-t
Inviewoftheuniversally-Held convictionthat,unlesscoalcanmakea,
'substantialcontributionto.supplyingworldenergyneedstinthemetiium-term.,
morepetroUumwill,beneeded ,initsplacethanthepil-expor.tingcountries
canbe^expectedt'o.-produceatreasonablepricesandactionsoftheCommunity
toaidCommunitycoalareurgentandneceassary .TheMemberStateshave
differentattitudesaccordingtowhetheraparticularcountrycoversits
coalrequirements predominantly fromitsownproduction orthroughimports
fromnon-member countries. .*'
Despitetheextremelyadvantageous supPliesavailable ontheworldmarket
themaintenance ofCommunitycoalproduction-even ifcostly-maybejusti­
fiedinthegrantsthatindigenous coaloffersahighdegreeofsecurity
ofsupplyandprotectionfortheconsumersagainstabruptpriceincreases.
Thepresentsituationinthecoal-mining industry
Theconditions underwhichtheCommunity'scoal-mining industryhastowork
sinceCommunityenergypolicyobjectives wereestablished areinclearcon­
tradictionwiththemedium-term prospects aridassumptions whichinfluenced
thedeliberations ofthe.Council.Theworldrecession-andparticularly
thesteelcrises-haveledtoadropindemandforenergyandtemporary*
;surpluses 'inoil,gasarid'q'oalsupply.'Theworldmarketpricesreflectthis
situation.ThepositionoftheCommunityseal-miningindustryhasbeen-marke
-byageneraldropifixcaI.-consumption andasharpincreaseinimportsfrom
non-Riembeh states..• • -"
* •-, - .•V'• *- •
I'cisw:de!yknown .tha*becaus-sof.theprevailingnaturalconditionsthe
Europeancosi-mini'ngindustrx -produces.at.relatively .Mgh'-cpsi "and-canonly
£ushjoni'!i.feet'sov€c-:-rtc»3ic£-ohd*5fc*ons'on.d?.r.vandsn'upricefluctuations ;
t'c'a.I":miit54extent. •.

-3-
Meanwhile currencytrends(thefalloftheUSdollar)haveresulted ina
furtherweakening ofthecompetitivityoftheEuropean coal-industry .Actual
production hasfallenfrom270milliontonnesin1973to240milUontonnes
in1977.Importsfromnon-member countries haveincreased from30million
tonnesin1973to46milliontfonnesin1977andsome63milliontonnesof
y
coalandcokestockshavebuiltup.Insomeoftheimportant miningdistricts
thesesupplies cannotbefurtherincreased,norcanshort-time workinginpits
becontinued indefinitely ;consequently definitive reductions incapacity are
unavoidable intheforeseeable future.ThisrunscountertotheCommunity 's
long-terminterests which,forreasonsofsecurity ofsupply,areoriented
towardstheabilitytomaintain substantial coalreserves therebyreducing
dependance onimportedoilrmoreover,considering theeconomicpolicies of
theCommunity inothersectorsitisnotjustifiable thattheeffectsofthe
- ' .
recession shouldhittheCommunity coal-mining industry alone.
TheCommunity hasofcoursespokeninfavourofanopenmarketandalong-term
increaseinimportsofcoalfromnon-member countries ,withoutatthesame
timejeopardizing theobjective ofmaintaining theCommunity'sownproduction
capacity.Ontheotherhand,itseemsUnrealistic toenvisage combining the
coordination ofimportlevelsbetweenGovernments ,ofMemberStates,Community
coalconsumers andproducers andcoalexporters innon-member countries with-
dueallowance fortHecoaIavailableintheCommunity .Experience hasshown
thatlooseagreements arejustnotpracticable .Directprotection ofthe
Community'scoal,howeverin.theformofimportdutiesorquantityrestrictions
wouldworkagainstthenecessary diversification ofsourcesofsupplywhich
shouldbealong-term objective .Itwouldalsobeineffective becauseofthe.
increasingly uncomptetitive positionofCommunity coal.

-L-
NeedforaCommunity measure
*
Sales "promotion measures cannotallbeconcentrated
onconsumption ingeneral,butmusthavesomespecific aim.Themarketin
power-station coal,whichisgenerally expanding seemsfromtheenergy
policypointofviewparticularly suitable forabsorbing additional quanti­
tiesofCommunity coalprovidedthatthepriceiscompetitive .
Thecoal-producing MemberStatesensurethesaleofpower-station coalby
nationalmeasures whicharesometimes verycostly./Nevertheless ,coalpro­
ductioningeneralhasdecreased andatthesametimepitheadstocksofcoal
andcokehavebeenbuilding up.theorderofmagnitude ofunsaleable pro­
duction-whichcannotbereducedatpresent-isestimated ataround10to
12miIliontonnesayear.Onthisrelatively smallscale,,theproblemof
Community coat,canbeattenuated intheshortterm.Asnationalaidmeasures
chieflybenefitdomesticpower-station coalproduction andasthereare
limitstofurtherincreases inelectricity sales-inthesecountries,the
onlyformoractionwhichcanfoeconsidered isinrespect .ofsalesinintra-
Community tradeandparticularly incountries withLittleornodomestic
producti on. ~
Atthepresenttimepower-station coalcanbeobtainedintheCommunity
fromtheworldmarketatpricesofbetween30and35USdollarscifpertonne.
Bycontrast ,,theaveragecostofproducing coalintheCommunityisrespec­
tivelyUS345.inthe.UnitedKingdom,USS75inGermanyandFranceand
aroundUS6100inBelgium.AnaverageofUSS10freightcostshastobkpaid
ontopofthistobringthecoalfromthepitstotheplaceofconsumption
inanothercountryoftheCommunity.Thedifference betweenthecifprice
ofimportedcoalandthecostpriceofCommunity coalistherefore conside­
rable.

The'mo'stsuitableformforaCommunitymeasureisasubsidyforeachtonne,
ofpower-stationcoalsoldinintra-Community trade.Thissubsidymustnot
onlybesubstantial sothatcoalproducerswillfinditeasiertomakethe-
correctpricealignments,butmustalsobewithinthepossibilities ofthe
Communitybudget.TheCommissionconsiders asubsidyof10EUApertonne
(approximately US£12.40)tobeappropriate .Thedifference betweenpro­
ductioncostsandmarketpricewouldhavetobemadeupbynationalaids
and/orbytheproducers., ,,
TheCommissionfeelsthatthisCommunityactionisparticularly justified
becausecoalproductioncapacitymustbemaintainedintheinterestoflong-
termsecurityofenergysupply;moreover>thecoal-producifig countriescan­
notbeexpectedtodothisunaided.Theyalready subsidizetheirowncoal-
miningindustriesconsiderably andthusarealreadymakingbigcontributions
towardssafeguarding Communityenergysupplies.' ■, v
tr' ■■■■
ThefeaturesoftheCommission'sproposal
Basicallyanyaidsystem^particularly atCommunitylevel,mustbeassimple,
straightforward andefficientaspossible.Themarket,andthecommercial
freedomofthebeneficiaries shouldbedisruptedaslittleas.possible.
Thebasicgeneralconsiderations whichtheCommissionrecentlyoutlined .-■
totheCouncilonthequestionofsectoralaidschemes(Doc.C0M(78)221
final)alsoapplytoaCommunitysystemofaid.Moreprecisely,theCommission
considersthatCommunityaidschemesshouldbelimited,'notonlyquantitative­
lyandfinanciallybutintime..Ifafteracertaintimetheenergymarket
situation ,andtheeconomicpositionofthecoal'-mining .industryhaveshownno
appreciable change,thesituationmust.bereviewed.Inotherwords,"the
CommunityaidproposedbytheCommission maybeonlyoneofseveralways
ofridingoutthesituationontheenergymarket,..whichforthepresent
isparticularly unfavourable forthecoaI'-mininaindustry.

-6-
Inordertoavoiddiscrimination ,aCommunity aidsystemmustincludenot
onlyexistingintra-Community tradeinpower-station coal(justunder4
milliontonnesin1977)butalsotheadditional delivery channels opened
upbythisaid.
Inordertopreventcompetition foraid,andontheassumption thatthe
governments concerned willpossibly needtomakeavailable additional aids,
aquantity schemeisrequiredforproducercountries thatguarantees proper
distribution ofthecoalsupplied ininter-Community tradebutallows
adaptation inlinewithactualdevelopments .
/ .« I . .
Additional deliveries whichworkagainsttheobjectives oftheregulation
shouldalsobe-avoided.' Thiscouldoccurifcoalsubsidized underthis
systemweretocompeteforsalesonthecoalproducers 1national markets.
Theaidsystemmusttherefore includecriteria astowhichdeliveries are
entitledtoaid.
Asthequality,andparticularly thecalori-fic value,ofpower-station coal
producedintheCommunity varies,qualities shouldbemadecomparable by
converting tostandaard gradesinordertoavoiddiscrimination inthe
granting ofaid.
In6rdertoavoidrampantpricecompetition withthehelpofCommunity (and
sometimes national )aids,theestablished rulesonpricealignment should
beusedundertheprovisions oftheECSCTreatyandtherulesofimplemen­

tationlaiddownbythehighauthcnty /Commissioninthis.connecti on,i.e,..
itmustbeprovedinteraliathatthespecific competing quotation isvalid.
Innocasemaytheamountofaidgrantedexceedthefigurecorresponding
tothelossesactually incurred byCommunity producers .Neithershouldit•
leadtoundercutting ofthepricequotedbysupplies fromnon-member coun­
tries. v
Allfurtherdetails,conditions ofpayment,etcaregiveninthefollowing
draftregulation andthefinancial records'heetattached .

ProposalforaCouncilRegulation onCommunity
financialmeasuresbytheCommunityforintra-Communitytrade
inpower-station coal
THECOUNCIL OFTHEEUROPEAN COMMUNITIES
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle235thereoef;
HavingregardtotheproposalfromtheCommission;
HavingregardtotheOpinionoft;heEuropeanParliament;
HavingregardtotheOpinionoftheEconomicandSocialCommittee;
. •
Whereastheestablishment ofacommonenergypolicyisoneoftheobjectives
whichtheCommunityhas setitselfandwhereasitistheCommission'sres­
ponsibility toproposethemeasuresconnectedtherewith;
WhereasitwasconcludedintheCouncilResolutionofDecember1974that
theobjectivewastostepuptheus£ofsecuresourcesofenergyandalso
tomaintaincoalproductionat250millionteeprovidingthefinancialcon­
ditionsweresatisfactory ;
Τ
WhereastheCouncildecidedon13February1975asaguidetowardsreaching
thisobjectivethatapolicyonsolidfuelsshouldbeworkedoutandimple­
mented ,toprovideforstableandregularsalesofthesefuelsproducedin
theCommunity,undersatisfactoryfinancialconditions,takingthe"interests
oftheconsumerinthemostimportantsectorsofconsumption (ironandsteel
'* - ,•v•
»

industry andthermalpowerstations )intoconsideration ;whereaswith
regardto'thecoalimported fromnon-member countries theCouncil wasin
favourofextending freeaccesstotheworldmarkettoallCommunity coal
consumers,towhomsuchaccess -isnotyetavailable,undersatisfactory •
fiancial conditions insuchawaythattherealization oftheobjectives
ofCommunity production wouldnotbeadversely affected ;
Whereasthe-importation ofsteamcoalfromhon-member countries intothe
Commuhity hasincreased markedly inprevious years,asnewcentresofcon­
sumptionhaveappeared,particularly %nearthecoastandincountries with
nodomestic coalproduction ;whereas,becauseimportpricesforsteamcoal
werefarlowerthanthecostofproducing Commjnity coal',Community producer
couldnotthemselves competewithimported steamcoalevenwithgreatfi-1
nantfalsacrifices ;whereasthecoal-mining industry hastherefore .notbeen
abletosupplytargemarketswhichwere^particularly significant asa
measureforstabilizingsales;whiereastheavailability andfunctioning pf•
acommonmaiketinpower-station coalisoneoftheconditions forlong-v
termsecurity ofsupplyintheCommunity ;
Whereas,ifthistrendisnothaltedoratteastchecked,itwillhave -
deleterious andirreversible effectsonproduction capacity andtherefore
onenergysupplies;whereasthisrunscountertothelong-term interests
ofallenergyconsumers intheCommunity ;
Whereas,becausetheCommunity coal-mining industry cannotatpresent
supplythenewmarketsbecauseofitsowncompetitive -position ancJrestric­
tingfreeaccesstotheworldmarketforcoalconsumers wouldruncounter
totheCounciI'sguidelines of13Pdbiuary 19?5,thecompetitivity'ofthe -,
Community's' coal-mining industryshouldbetemporarily strengthened by
financial measures;whereasasystemofCommuhity aidsinfavourofintra-

Community tiiide inpower –btationcoal is yp&cific r^jaatire tomaintain this
part oftheconi;oon market incoals whereas the '•fl'"-stem should .benotonly
simple andefficient ,butalso quantitatively lr ■tedastotheamounts of
co&l andthelevel offinance involved ,and :estripted iriduration ;
Whereas this aidfrom theCommunity should b?granted inaccordance with
therules ofcompetition intheTreaty ?
Whereas under theECSC Treaty andwhere necessary because ofcompetition
from steam coal imported from thethird countries ,coal-mining undertakings
areauthorized togrant rebates ontheir list-prices andwhereas inthis
context theprovisions ofArticle 60oftheECSC Treaty ,paragraph 2b,last
sub-paragraph regarding toprice alignment ,together with thecorresponding
implementation decisions ,continue toapply }
Whereas theTreaty does not specify thenecessary competences forthe
introduction ofCommunity financial measures forthepurposes ofimproving
and safeguarding thesupply situation ,
HASADOPTED THIS REGULATION i

SECTION I ,
*
«U.
General objective
Article 1 -
Within thelimits ofthefunds made available forthis purpuse inthebudget
oftheCommunities and inaccordance with theconditions defined below ,the
Commission maygrant aids totheundertakings referred tointhefirst para >-
graph ofArticle 3»inorder tofacilitate intra-Community trade inCommunity
hard coal intended foruseinthermal power stations (power-station coal ),
inorder tocover part ofthefinancial losses incurred bycoal-mining undertaking
asaresult ofsuch deliveries .
SECTION II
Criteria for granting aid
Article 2
Aidshall begranted when thecriteria defined inArticle 3to7below are
fulfilled . '
Article 3
1.Aidshall begranted toundertakings which produce hard coal inthe
Community *
«
2.Aidshall only begranted onrequest .
Article A
%
1.Aidforpower-station coal' shall begranted only ifallthefollowing
three conditions arefulfilled .
The coal must :
(i)havebeenproduced intheCommunity ; '
(ii)beintended foruseinpower stations inanother Member State ofthe '
Community !

-5-
(ii1)mustcomplywithatleastoneofthedelivery categories specified
inParagraph 2.
ν >
2.Thefollowing delivery conditions quatifyforaid:
'(1)deliveries topower-stations whichhavealreadyobtained coal
throughintra-Community tradein1978,andinfactuptothe
amountof1978deliveries ;
(ii)deliveries topowerstations whichin1978exclusively orinpart
consumed coalimported fromnon-member countries ;
(ili)deliveries topowerstations which,duringthetimeofvalidity of
"•thisregulation ,started upoperating forthefirsttimeinDen­
'mark,Ireland,Italy,Luxembourg andtheNetherlands .
3.Ifcontracts betweencoalproducers inoneMemberStateandelectricity
producers inanothercoal-producing Member "Statecontainconditions
wherebyelectricity undertakings themselves seetothedistribution of
coaldeliveries totheirownpowerstations ^theeLectricity undertakings
arerequiredtoobservethedeliveryconditions specified underparagraph
2(i)and(ii)ofthisArticleandnottosubstitute national coal."Excep­
tionsareonlygrantedtothisprovisioniftheelectricity undertaking
hssurgentbusiness reasonsforitscourseofaction. -
4.Power-station coal.qualifying forasubsidymustcomeeitherfromnormal
production orfrompitheadstocksofcoalproduced bythosecoal-pro-
ducingundertakings mentianed in.paragraph 1of'Article 3.-
-Noaidisgrantedin.respectofcoalrecovered fromwaste-tips ,

^ ' ' ' '• ' ■ '< ' .
Article 5 ' "
. .. » * 1 *
"«■ » -, .
1.Thebeneficiaries ofaid inaccordance with Paragraph 1ofArticle'3
' shall beobliged tosupply theCommission with details of ,anycontracts
signed orthecontracts themselves onrequest . .^
V N '#
2.With regard todeliveries topublic power stations inother Community
countries ,aidmaybegranted inrespect ofthat quantity ofpower-station
./ -_ ; •
coal which hascome from thecoal-mining undertakings referred toinPa­
,ragraph 1ofArticle 3.
3.With'regard todeliveries inother Member States toother industrial j
undertakings forwhom electricity production isnotthemain activity i
butwhopossess oneorseveral power plants which cover partly orentirely j
their ownneeds aidmaybegranted ononly that quantity ofpower-station ,
coal which isactually used inthepower stations andonthecondition
that atleast 80%ofthesteam produced isfedinto theturbo-alternator ./ I­
set.Anytemporary drop "below this percentage fortechnical oreconomic j
/ reasons is.acceptable .Thecoal-mining undertakings mentioned . ■ j
·* ι
?inparagraph 1ofArticle 3arerequired toobtain thenecessary proof
,every quarter from theindustrial undertakings supplied bythem . . .
.4.Forthepurpuses ofcalculating theaidpayment thequantities deter - ''
mined inaccordance with peircigraphs 2and 3ofthis Article shall be
taken together .
Article 6
.1. * 'f
1.Aidforintra-Community trade inpower-station coaL shall begranted
forquantities estimated atnomore-than 10million standard' tonnes •.
fofcoal ayear forthewhole Community .
.2.Anupper calorific value of25.1 millionk 'Joule (6.0million Kcal or
23.8 million BTU )perstandard tonne shall betaken asabasis forconver­
ting theactual tonnage delivered orconsumed inaccordance with paragraph
2and 3ofArticle 5into standard tonnes .The conversion shall becarried
outbythecoal-mining undertakings referred toinParagraph 1ofArticle 3.,

3(a)Theoverall yearly quantity ofnotmore than 10million standard tonnes
eligible foraidasreferred toinparagraph 1ofthis Article ,shall
bedivided among thefive coal-producing Member States oftheCommunity
(Belgium ,theFederal .Republic ofGermany ,France ,.Ireland andtheUnited
Kingdom )inmaximum quotas valid forayear atatime .Thequota distri­
bution will bebased onthepercentage ofCommunity production and the
percentage ofoverall intra-Community trade inpower-station coal on,a
one-to-onebasis .Theperiod from 1July to30June preceeding theyear
inwhich aidisgranted shall betaken asabasis forcalculating the
percentage -ofproduction ortrade .TheCommission shall calculate the
quotas intheautumn ofeach year foraid inthefollowing year andshall
inform Member States ofits results .
(b)Inthemiddle ofeach year ,theCommission together with thecoal--
producing Member States ,shall investigate theextent towhich their
coal-mining industries have already used uporareexpected touseup
intheremaining months thequotas allocated tothem inaccordance
with Paragraph 3(a)ofthis Article .Should this investigation show
that some individual quotas will probably notbeused upwhile other
coal-producirig Member States areexpected toexceed their allocated
quotas ,theCommission mayadjust thequotas initially allocated to
individual Member Siatea onthebasis ofFaragraph 3(a)ofthis Article .
(c)Adjustment ofquotas inaccordance ywithParagraph 3(b)ofthisArticle
shall result inacorresponding adjustment ofaidpayments .
• i.
4*Thequota allocated to .each coal–' producing Member State inaccordance
with Paragraphs 3(a)or(b)maybedivided byMember States between the
coal-mining undertakings initscountry .
Article 7
1"Aidi*1accord&nce Vith Paragraph 2ofArticle 6shall begranted ata
standard rate of10SUApersi.ardard tonne ofpower-station coal (amount
ofaidpertonne ).
2.Inthe -oaseofthecoal-mining tuid .'takings referred toinParagraph 1
ofArticls 3D aidpertonne shall notexessd theactual loasss to •>

theundertakings ontheirdeliveries inaccordance with,Paragraphs 2
and3ofArticle 5»Ifthisdoeshappen,theaidpertonneshallbe
reducedaccordingly .. / *-
3.Theamountsofaidtobepaidtothebeneficiariesaresetexclusively
according totheamountsspecified inParagraph 4ofArticle 5f°r
whichshippingpapersorproofofconsumption areavailable .-
• - I *
4.Aidshallbepaidquarterly andretroactively andonlyonpresentation i
•ofalldocuments andinformation whichtheCommission feelstobene­
cessary .
'' 'SECTIONIII
*
,Generalandfinalprovisions
Article 8
Shouldt"eoveralltotalofnational aidsgranted byMemberStatestothe
coalminingindustryinaccordance withDecision No.528/76/ECSCandofthe
amountofaidpertonnegrantedinaccordance withthisregulation givean
amountpertonnewhichishigherthantheactuallosses .whichhaveoccured
onsalesofpower-statiorf coalinintra-Community trade,theamountof.aid
paidinaccordance withthisregulation shallbereducedaccordingly .
Article 9
1.Atthe"endofeachcalendaryeartheCouncil may,unanimously ,ona
proposal fromtheCommission andafterhearingtheopinionoftheEuropean
Parliament ,decidetoadjusttheamountofaidpertonnebyaregulation .
» ·-. Γ'
InurgentcasestheCouncil mayhowever,onaproposal from-theCommission
vmaketheseadjustments atother-times. v.
2.TheCommission maywithdrawaidwhichwasgrantedincorrectly or,parti­
cularly,onthebasisofmisleading information supplied bythebene­
ficiary. ^ \ " . 1,

Article 10
IftheCommission discovers fromaMemberStateoronitsowninitiative
that: -' •
' • ~ s
1.theapplication ofthisregulation threatens toseriously disturbthe
commonMarketincoalorcreatedifficulties whichcouldresultinthe
deterioration ofthecoalsupplysituation ingeneral,
or– ''.•
2.appreciable changesoccurintheconditions ofthecoalmarketbecause
theeconomic conditions *whichpromptedthisregulation havechanged,
r
theCouncil may,onaproposal fromtheCommission andafterhearingthe
opiniQnofthe5European Parliament ,decidetopartially orcompletely
suspendtheapplication ofthisregulation .Theconditions ofexisting
contracts wouldhavetobetakenintoconsideration ,inthiscase.
Article 11
TheCommission shallregularly inform "theEuropeanParliament andthe
Counciloftheapplication ofthisregulation .
* te
Article 12
Afterconsulting theCounciljtheCommission shall.issueprovisions for
implementing thisregulation andshalltakeallthenieasuresnecessary
toensurethecontrolandtheorderlyimplementation thereof.
1 ' * • • ' •
..Article 13 \'
Thisregulation shallenterintoforceon1January1979.Itshallapply
until31December 198l«'

* Now -measure
•Financial recordsheet
?
forthe1979financial .year
* T:
,yiinhorofrelevant Budgetheading :Chapter 32,Item3232
-Titleof-Bu'3/retheading:Aidforintra-Community trade'inpower-station coal'
. ^
i.nmlbanin:
» >
3.O.I.CouncilResolution of17December 1974concerning Community energy -policy
objectives for1985(OJNoC153,of9July1975)*'-~.
3.0.?.CouncilResolution of13February 1975concerning measures tobeimplemented
toachievetheCommunity energypolicyobjectives adoptedbytheCouncil
of17December 1974(OJNoC153of9July1975)-"
3.0.3.ProposalforaCouncilRegulation ,basedonArticle 235of"theEECTreaty,
concerning theintroduction ofaCommunity aidsystemforintra-Community
tradeinpower-station coal(COM(78)'70final).
3.?.Proposal fortheRegulation submitted totheCouncil on....
3.3.OpinionoftheEuropean Parliament ...."
3./J.OpinionoftheEconomic andSocialCommittee , .'.
l.y.Article235of"theEECTreaty ' . '
-V- ' >-
4-Description ,objectives and.justification ofthemeasure
4.0.Dencriptjon ofthemeasure andparties involved .
4«0;0.Description :Non-repayable subsidies designedtostimulate intra-Community
tradeinpowef-station coal.Aidamounting to10EUA/ttobegrantedjn
respectof-anannualquantityestimatedatamaximumof10milliontonly,and
coveringonly30/ooftheestimatedlosseswhichCbmmunity coal–miningunder­
takingssupplying steamcoaltootherMemberS&teshavetom£etthemselves ,or
whichareoffsetbyStated-aid schemesinthecoal–producing MemberStates.The

coal-mining undertakings ,will receive the10EUA/tosubsidy .
■ i»
4*0.1 .Parties involved
/
\
4*0.1.0 .Category JCommunity undertakings .
' . " · Λ
4.0.1.1 .Number tAbout 15coal-mining undertakings ,
- v
4«0.1.2 .Geographical position :Community territory
4.1 .Aim ofthemeasure ,
»
4.1.0 .General aim jToachieve theaims oftheCommunity energy policy }to
improve theconditions ofcompetition towhich Community steam coal is
subject inorder toensure Community energy supplies inthelong term .
Council Resolutions of17December 1974 and 13Februaiy 1975 *
4*1.1 .Specific aim sTheaimofthesubsidy istorsduce thefinancial burden'
borne byunder takings inthecoal-mining industry ?thesubsidy will cover
about 30fooftl\at burden ..Inaccordance with theDirectives oflong-term
policy ,this measure will contribute Lowards stabilizing production be­
tween now and1985 . - '
4*2 *Justification ofthemeasure
Itwould notbepossible tostabilize hard-coal production between nowand
1985 without financial help from thoCoataunityj •if "production isnot
stabilized this will have anegative effeotonthesecurity oftheCom–
nrarity 'senergy supplies . *■

■* , f
.. ' i
5.O.Financial implications '' ; '
*
5«0.0»Therequiredappropriations willbeenteredin.theGeneralBudgetofthe-
European Communities .
Thisinvolves .anannualsubsidyestimated atamaximumof100million EUA
overaperiodofthreeyears.
5.0.0.0.AnnualmaximumpaymëntsinEUAatcurrentprices:millinEUA
SumProbable
':1979payments
1980-
1931
1979 100 100
11980 ,100 100
1981' 100 100
Total '300 100 100
13.00
Itisestimated thatthemaximumannualsubsidywillbe100million EUA,
.Thesumactually paidmaybelessthanthemaximum,depending onthe'
actualrataofdeliveries ofsteamcoalinintra-Community trade.
Thesubsidywillbepaidquarterly-i.e.-attheendofeachquarter-
toundertakings meetingtheconditions subjecttowhichsubsidies will
bepaid.'Outgoings "perquarterwillbeapproximately onequarterof
themaximumannualpayments-i.e.approximately 25million EUA.
5.0.0.1.Methodofcalculation anduncertainty factor
5.0.0.1.0 .Methodofcalculation s , "'
<Commiimehts tobepaidforthefinancial years1979,1980andI98I.
■*» »
Thesubsidyis10EUA/tperyear. '
.Itisbasedontieamoirntofetes.i.coal'suppliedtopowerstationsby
A
.•vtFiyofintra–Corniiiunity trade.Theaimofthosubridyis-toincrease -
theamourofs.tee^,.coultradedwithintheCommunity top.l~v,elof
•-1Cmil.!Ion-tpc.''*j?ar.Themitaiwillbepaidinr.-ip-rotofa'r..o\'iinu
a.v*e~tr.mat?di-.t10r.ilii'o ...-tf^ly;-xhemaximciu'vaualr?.ihentis-

coal-mining undertakings ,will receive the10EUA/tosubsidy .
4.0.1 .Parties involved -
. . - \
4.0.1.0 .Category iCommunity undertakings .
4.0.1.1 .Number tAbout 15coal-mining undertakings ,
,4*0.1.2 .Geographical position :Community territory '
4.1 .Aimofthemeasure * ,
4*1.0 .General aim :Toachieve the aims oftheCommunity energy policy }to
improve theconditions ofcompetition towhich Community steam coal is
subject inorder toensure Community energy supplies inthelong term .
Council Resolutions of1JDecember 1974 and 13February 1975 .
4.1.1 .Specific aim sTheaimofthesubsidy istoreduce thefinancial burden'
borne byundertakings inthecoal-mining industry ?thesubsidy will cover
about 30 oftl\at burden ..Inaccordance with theDirectives oflong-term
policy ,this measure will contribute lowarda stabilizing production be­
tween nowand1985 * . ' '
4.2 .Justification ofthe measure
Itwould notbepossible tostabilise hard-coal production between nowand
1985 without financial help from thoCoomuiiityj ifproduction isnot
, i
stabilized this will have anegative effect onthesecurity oftheCom­
munity 'senergy supplies . *'.

-3-
5.0.Financial implications ; '
5.O.O,Therequiredappropriations willbeenteredin.theGeneralBudgetofthe •
European Communities
Thisinvolves .anannualsubsidyestimated atamaximumof100million EUA
overaperiodofthreeyears. :".-
5.0.0.0.AnnualmaximumpaymfentsmEUAatcurrentprices:millinEUA
SumProbable
___ 1979payments
1980-
1931
1979 100 100 '.,
'1980 100. 100 :
1981' 100 100
Total "300 100 100
'100;
Itisestimated thatthemaximumannualsubsidywillbe100million EUA.
.Thesumactuallypaidmaybelessthanthemaximum,depending onthe'
actualrateof,deliveries ofsteamcoalinintra-Community trade.
^ y €
Thesubsidywillbepaidquarterly-i.e.-attheendofeachquarter-
toundertakings meetingtheconditions subjecttowhichsubsidies will
bepaid.Outgoings perquarterwillbeapproximately onequarterof
themaximumannualpayments –i.e.approximately 25million EUA.
5«0.0»1 »Methodofcalculationanduncertainty factor
5.0.0.1.0.Methodofcalculation •'
•*Commitmehts tobepaidforthefinancialyears1979,I98OaridI98I.
Thesubsidyis10EUA/tperyear. " .
- »
-Itisbasedonti"?amountofetea.,coalsuppliedtopowerstationsby
w^yof*intra,–CoiTiMuuity *tra,d6#Thos.intof1"thosiibridyis-toincrease -
theanour*ofs:ea-coultradedwithinteeCommunitytop.Uv.elof
l,cmillion -tpc-jaar.Thenutai-V ;willbopaid*inr^p-retofan.s.yiinw ,
enir.mavpdi=.t10r.i.l.!ro.i-1.r^lyj'xbemaximum 'stnru&lr?rrersti9•

estimated at100million EUA-,
χ
5.0.0.1.1 .Uncertainty factor
Inviewofthecomplicated marketconditions itisnotpossible to
forecast exactly howmuchcoalwillactually be,supplied ,andhence
;fcheamounttobepaidoutinsubsidies .
6.Typeofmonitoring tobeapplied i
6.0.The.usualsupervision willbecarriedoutbytheCommission inaccordance
withthecurrentFinancial Regulation .
6.1.TheCommission hastoreportannually totheCouncilandtheEuropean
Parliament ontheapplication cfthesubsidy.
7.Overallfinancial implications ofthemeasureforthewholeofitsexpected
duration
7.0.Totalcosts .areestimatedatamaximumamountof300million EUA.Periodofappli
/cation:threeyears,duringwhichamaximumof.100million EUAwillbe.dueeach
'year* .
7.0.1.Thecostsofthemeasure .willbebornebytheCommunity Budget.Ifthe
proposed measureisadoptedbytheCouncilin1978,paymentswillbegin .
■attheendofthefirstquarterof1979« '
7.0.2,Thecodl-mining ur.dertaJc.ings orthegovernments ofcoal-producing Member-
7.0.3.Stateshavetobearcostsofapproximately 200million EUAperyear.It
isnotpossibletoindicate whatproportion of-that200million EUAis
bornebyth9undertakings andhowmuchbytheMemberStates.
3.Staffing : -.-
"l*practicalapplication oftheintendedmeasuresbytheCommission's
departments requirestheemploymen*toftwoGradeBofficials ,.
3,2,Staffcosts ..

5-
9.Financing ofthemeasure '
9.0.ThroughChapter 32,Item3232ofthe1979Community Budget.
9.1^Probable commitments tobepaidinsubsequent financial years
100million EUAperyearforI98Oand198l.