A4-0212/95

Resolution on the Green Paper 'For a European Union energy policy' (COM(94)0659 - C4-0026/95)

The European Parliament,

- having regard to the Commission's Green Paper 'For a European Union energy policy' (COM(94)0659 - C4-0026/95),

- having regard to its resolution of 12th March 1992 on the common energy policy ((OJ C 94, 13.4.1992, p. 279.)),

- having regard to the Commission's White Paper 'Growth, Competitiveness and Employment' (COM(93)0700),

- having regard to the Commission communication: 'Economic Growth and the Environment. Some Implications for Policy Making' (COM(94)0465),

- having regard to Article B of the Treaty on European Union on economic and social cohesion, and Article 2 of the EC Treaty concerning sustainable development,

- having regard to the report of the Committee on Research, Technological Development and Energy and the opinion of the Committees on Economic Affairs and Industrial Policy, on Social Affairs and Employment, on Regional Policy, on Transport and Tourism, on Environment, Public Health and Consumer Protection and on External Economic Relations for their opinions (A4- 0212/95),

A. whereas the main feature of the energy market within the EU is the existence of national actors (producers, distribution enterprises, suppliers of local capacity, large and small consumers) as well as public authorities which are also national, and whereas it is necessary with a view to the functioning of the European internal market, long-term reliability of energy supply and environmental and safety factors, for the EU institutions to play a more prominent role in this field,

B. expressing regret once again that the negotiators of the EU Treaty completely rejected the Commission's proposal on energy, which would have allowed the principles of a genuine common energy policy (CEP) to be established by indicating its objectives, the means needed to achieve those objectives and the level of the legal measures intended for that purpose,

C. whereas the EU can only create the conditions for long-term policy on security of supply, which rules out the Commission's taking a guiding and planning role,

D. whereas there are fundamental differences between the electricity and gas sectors which make different approaches essential,

E. whereas maintenance of reliability of supply at EU level is a condition for creating more scope for competition and liberalization as the basis for optimizing price-setting and the provision of services,

F. whereas the above-mentioned White Paper on Growth, Competitiveness and Employment rightly pays attention to increasing the competitiveness of EU business, whereas a healthy economy leads to a high level of employment, and competitive energy prices are a condition,

G. whereas it is therefore necessary to deregulate the energy market and increase competition between producers and distribution companies without jeopardising security of supply, the environment or the protection of the consumer,

H. whereas security of supply is not only a question of availability of energy sources but above all is a result of policy in the field of organizing the energy market, the EU's trade relations with third countries, the research policy to be pursued and policy concerning energy stocks within the EU,

I. whereas diversification, flexibility (including small scale) of supplies, research and technology are also essential means of achieving supply security,

J. whereas attention has to be drawn to the importance of the efficient implementation of the necessary health and safety norms in energy producing industries,

1. Takes the view that, in the light of Article 130 of the EC Treaty, the Council and the Commission should clearly spell out the EU's long-term policy with regard to energy, the way it relates to the Member States' policies in this area and the areas where there is a need for convergence;

2. Expects the Commission to define, pursuant to Articles 130f, 130r and 130s of the EC Treaty and in accordance with the conclusions of the Energy Council of 1 June 1995, a methodology to strike a balance in the short and the long term within the general framework of the economic rules and freedoms of the Treaty between the three objectives of energy policy - security of supply, competitive prices and protection of the environment - for and in consultation with the various sectors of society (industry, small consumers and large consumers etc.);

3. Draws attention to the fact that the difficulty in combining security of supply, reasonable prices together with environmental protection should not be further exacerbated by possibly contradictory energy policies at the Member State level;

4. Takes the view that, given that the production of and trade in energy is largely carried out at the international level, the EU can defend its own energy interests more efficiently if the 15 are seen to speak with one voice; recalls, in this respect, that the energy dependence of the EU is expected to rise from its current level of 50% to 70% by the year 2020;

5. Calls on the Commission to provide within its forthcoming White Paper a clear statement of priorities regarding environmental pollution in relation to energy;

6. Calls on the Commission and the Member States to integrate the objective of economic and social cohesion into energy policy and, at the same time, to use energy policy to help strengthen such cohesion;

7. Stresses that the energy policy aspects of the ECSC and EURATOM Treaties and other energy considerations should be integrated within a common energy framework, helping to ensure overall cooperation with regard to security of supply and environmental protection and requests the Commission to include in its forthcoming White Paper a draft proposal for an energy chapter to be tabled at the 1996 IGC Conference for inclusion in the Treaty;

8. Calls also for the Commission and the Council to formulate, with due regard to the subsidiarity principle, a single coherent energy policy as a framework for the individual initiatives of the various actors and national authorities, and calls for them to have a single interlocutor for energy policy at the Commission;

9. Stresses that the future CEP must be based on the following criteria:

- efficiency, which means competition must be encouraged,

- respect for the market so that production adapts to demand,

- maximum security of supply,

- on-going research into new energies and the use of traditional sources,

- control of technology in order to avoid risks,

- sustainable development which respects the environment;

10. Expresses the view that, owing to the need to guarantee supply security, the provision of a public service and protection of the environment there is a need for regulation of the energy market by both the national authorities and the EU, while keeping the level of regulation to a minimum so as to permit flexibility and the operation of market forces within these limits; in addition, environmental protection merits particular attention because market forces do not exert an appropriate influence here; environmental costs must be reflected in energy prices;

11. Calls on the Commission to negotiate arrangements for granting loans with the banks, particularly the EIB, in order to provide advance funding for energy saving measures and report to the European Parliament in due time on conditions and measures to be implemented;

12. Takes the view that it is necessary to define what is meant in the energy sector by universal service, and what service, of what quality, is supplied to the consumer; notes that such service can also be provided by private undertakings;

13. Considers it essential to develop a real internal energy market and to define as soon as possible the rules governing it. The progressive implementation of the internal market must be based on the major principles adopted by the European Parliament:

- respect for environmental compatibility;

- competition among energy producing companies, whilst ensuring respect for security of supply;

- respect for tasks of general economic interest and public services, in particular at distribution level, whilst taking into account competition and the conditions under which certain secondary activities of distribution enterprises that do not relate to the energy sector are acceptable under Title V of the EC Treaty;

- increasing the scope for co-operation between the different actors, subject to price transparency for which the Commission has to lay down guidelines and mechanisms;

- account transparency, in particular in vertically integrated undertakings, while upholding in this respect the principles of reciprocity, transparency and non-discrimination between suppliers;

- creating opportunities for new actors (e.g. suppliers of local power) to obtain a position on the energy market and to stimulate at the same time the supply of electricity produced from renewable energy sources;

- promoting fiscal harmonisation of energy prices, including among the various raw materials, by affording special treatment for renewable energy sources in the Union and promoting transparency for the user with regard to those components of the energy price which represent taxation and those which represent environmental costs;

- upholding also the principle of third-party access to infrastructure;

- organising access to the network on the basis of reciprocity, protection of the duties of public services and the conclusion of long-term contracts;

- the interests of the "captive consumer¨ should continue to be safeguarded;

14. Takes the view that the definition of the objective on overall competitiveness needs to be clarified, bearing in mind the need to incorporate a greater degree of flexibility into production, transport and distribution systems, encouraging the decentralisation of production thereby avoiding wasteful long-distance transmissions of electricity, rationalising production, production methods and capacities, represent ways of contributing both to the competitiveness and efficiency of energy markets as well as to the protection of the environment;

15. Suggests that more importance be given to the new tasks and role of energy suppliers/utilities in as far as Demand Side Management i.e. the range and quality of services, is concerned. Increased competition should lead to greater energy efficiency, producing energy savings at all levels of the energy chain and in particular be used to promote energy efficiency services as a way of lowering the energy bills of the end consumers rather than focusing on the price of energy as such;

16. Calls on the Commission, when it proceeds with gradual liberalization, to exercise caution with regard to legislation, with the exception of legislation to control CO2 emissions, giving consideration to other instruments, in particular an Energy/CO2 tax applied equally to fossil fuels and nuclear power, and to formulate a separate strategy for the gas and electricity sector in this respect;

17. Takes the view, with regard to long-term supply security within the EU, that the Commission's task is to create the climate for strengthening a policy of diversification, by:

- developing and making greater use of renewable energy sources to obtain a reduction in CO2 emissions and co-ordinating and encouraging research and demonstration projects in this field;

- creating a framework for closer co-operation in energy policy matters with Russia and the countries of Central and Eastern Europe through the conclusion of the Second Energy Charter and with the countries of the Mediterranean region, Africa, Central Asia and the Black Sea region;

- formulating objectives and a common programme for energy efficiency and savings and renewable energy sources compatible with the objectives concerning the emission of greenhouse gases, as agreed in Rio de Janeiro (1992) and Berlin (1995);

- a much clearer policy recognition of the cost/economic effects, the efficiency benefits and the environmental advantages of CHP (Combined Heat and Power), the technology of which requires a more competitive market on the energy savings it brings; the Member States are, accordingly urged to remove the administrative obstacles affecting CHP;

- developing as broad a range as possible of potential energy sources, whereby consideration should also be given to generating energy from waste;

- ensuring that the EU creates a favourable climate for energy investments which promote employment, industrial competitiveness, research and development, as well as improvements in energy efficiency and environmental protection;

notes that the Member States of the EU are, in agreement with public opinion, still responsible for choosing their individual energy sources, but considers that abandoning nuclear energy does not make it easier to achieve the goal of CO2 reduction; believes, however, that the decision on the location of nuclear power stations should remain a matter of national policy on condition that international safety rules are strictly respected and that the country concerned is a signatory of the Nuclear Non-Proliferation Treaty;

18. Calls on the Commission to stimulate research in order to increase the safety of nuclear energy through:

- the development of very safe so-called "new advanced nuclear reactors¨;

- the safe processing of waste and also the actualisation of theories concerning future safe waste processing;

- the re-use of fuel (mox fuel)

- the development of nuclear medical technology and of future applications and possibilities yet to be discovered;

- creating possibilities to help the countries of Central and Eastern Europe with a energy development plan with the aim of optimising the sources of electrical power;

- continuing research into thermo-nuclear fusion;

- promoting research into the health effects of radiation exposure on human populations;

- furthering advanced research into the vitrification of high-level wastes;

19. Emphasizes that research must also include actual costs connected with the storage and processing of nuclear waste to prevent the transfer of costs to future generations;

20. Stresses once again that the goal is to allocate the same amount of funds to renewable energies as to thermonuclear fusion;

21. Calls on the Commission:

- to draw up common European safety standards for nuclear power stations in the European Union;

- to draw up guidelines on safety requirements for power stations for which the European Union intends to grant loans;

- to develop a strategy for the management of nuclear waste with particular reference to wastes from fuels containing plutonium and other high-level fuels;

22. Calls on the Commission and the Member States to adopt a binding programme with clear time-tables for CO2 reduction, comprising inter alia the following components:

- an ambitious programme for developing and introducing renewable energies, with the emphasis on the use of biomass, wind energy and solar energy in the Mediterranean region;

- a development programme, in consultation with industry, to reduce the specific energy consumption of motor vehicles, trains and aeroplanes;

- environmental tax reform;

23. Considers that, before a new power station is built, a decision should be taken in each case on whether to give priority to energy-saving measures instead of construction, on the basis of a 'least-cost planning';

24. Calls on the Commission, in cooperation with the EBRD and the World Bank, and in agreement with the countries of Central and Eastern Europe, to draw up an ambitious programme for progressively reducing the latter's dependence on nuclear power, applying Western safety standards for their nuclear power stations, eliminating pollution and nuclear waste in an ecologically responsible fashion, reducing pollution of the environment by energy producers (NOx-CO2, SO2), and improving diversification by allocating priority to the potential for energy saving and the use of renewable energies; calls on the Commission to ensure that businesses in the EU can fully participate in this programme;

25. Calls on the Commission and the Member States to support nuclear disarmament in the framework of SALT I and SALT II by making available the knowledge and capabilities of European research institutes and industry for the elimination of weapons-grade plutonium and highly enriched uranium;

26. Calls on the Commission to ensure that in drafting its White Paper on the EU's energy policy it pays more attention to environmental protection by laying down guidelines for the Member States to incorporate the cost of environmental protection in energy production costs;

27. Calls on the Commission to take an active part in the Oslo and Paris Commission (OSPAR) as regards decision-making about the dismantling and destruction of off-shore installations. In selecting a solution, the following criteria should be applied: protection of the environment, maintaining safety and the energy efficiency implications of all possible options;

28. Considers that it is of great importance that the Commission, as well as drawing up a list of the various methods for saving and producing energy, should specify what the consequences and positive implications for employment may be;

29. Takes the view that the EU's task with regard to energy policy includes the following:

- formulating a CEP which is internally coherent and which takes account of the position of the competent authorities in each Member State and of the other actors, public and private, in application of the principle of subsidiarity;

- reinforcing the energy diversification policy within the EU with a view to long-term supply security and the competitive position of industry;

- encouraging a gradual liberalisation and strengthening of the market effect of the energy sector, including arranging for arbitration in the event of disputes concerning prices for cross-border imports or exports;

- formulating EU environmental policy by indicating the objectives in terms of energy savings and efficiency, together with the appropriate instruments and minimum standards etc;

- the consolidation and stimulation of national and EU research programmes and demonstration projects in this area and the full development of technologies for the more efficient use of existing sources of energy including those aimed at new technologies for the use of coal (coal gasification) ensuring that the EU retains its leading position in the field of energy (new sources of energy, biofuels including wood, peat, agricultural biomass and biowaste, energy savings, safety, technology, etc.);

- stepping up Community and national efforts to develop indigenous renewable energies (solar cells, solar heat, hydraulic, wind, biomass, geothermal, tidal, etc.) with the aim of meeting 15% of the European Union's conventional primary energy demand by the year 2010;

- using plants with fuel cells in a decentralised system for the generation of electricity and heat;

- creating a favourable climate for trans-European networks in the field of energy;

- drawing up and implementing an ambitious energy programme together with the countries of Central and Eastern Europe and with the countries of the Mediterranean area, Africa, Central Asia and the Black Sea region;

- creating a climate for energy investments which will stimulate employment, strengthen the economy and help to protect the environment; believes that the Commission must devote an annex in the Green Paper to the positive employment-related aspects of energy-saving projects and small-scale energy generating programmes;

30. Expects the Commission to take account of the above-mentioned demands in the White Paper on energy policy it has announced and expects above all the following specific measures:

- an indication of a clearer connection between the three objectives;

- an analysis on the energy market and the role which the Commission assigns to itself in it and those of the other actors;

- the role which the Commission intends to play in energy savings and efficiency by creating practical projects on which a start should be made as soon as possible;

- a European-wide regulation, providing that in future all new public buildings must demonstrate low energy consumption;

- a SAVE II programme which is considerably better funded than SAVE I;

- a new version of the THERMIE programme in which, besides lost subsidies, loans for advance funding of energy investments will increasingly be given a chance;

- calls on the Commission to use its new energy policy provisions to promote the role of co-generation and combined cycles - especially in the case of the use of gaseous fuels - to improve energy efficiency and to make more progress with energy-savings;

- an indication of what the desirable and attainable limit values of CO2, NOx and SO2 are;

- calls on the Commission to examine the possibility of establishing market mechanisms, such as negotiable emissions licences;

- a proposal for enhanced co-operation with third countries on energy policy and on its funding;

- the release of more financial resources for research and development as regards renewable energy sources;

- a comparative study on the external costs of the various fuels.

31. Instructs its President to forward this resolution to the Commission and the Council.