26. 3. 90 Official Journal of the European Communities No C 75/23 
Opinion on the proposal for a Council Directive on the transit of electricity through 
transmission grids 
(90/C 75/06) 
On 22 October 1989 the Council decided to consult the Economic and Social Committee, 
under Article 130q (2) of the EEC Treaty, on the abovementioned proposal. 
The Section for Energy, Nuclear Questions and Research, which was responsible for preparing 
the Committee's work on the matter, adopted its Opinion on 1 December 1989. The 
rapporteur was Mr Flum. 
At its 273rd plenary session (meeting of 31 January 1990), the Committee adopted the 
following Opinion by a majority vote, with one vote against and three absentions. 
1. Introduction 
1.1. 'A fundamental step towards completing the 
interna] energy market' is how a Commission communi­
cation describes and justifies an increase in intra-Com-
munity electricity exchanges. This communication is 
accompanied by a proposal for a Council Directive 
on the transit of electricity through transmission 
grids—which is seen as an initial step towards the 
completion of the Internal Market in electricity. 
1.2. The Commission has also presented a parallel 
proposal on the gas market and proposals on greater 
energy price transparency and on the registration of 
investments planned in individual countries for the 
purpose of improving these investments' coordination. 
1.3. The Section for Energy, Nuclear Questions and 
Research has already commented on the problems of 
Community-wide electricity supplies in a post-1992 
Internal Market in its 1988 report on Community 
energy policy and completion of the Internal Market. 
The present Opinion reiterates the viewpoints 
expressed in that report, since they are now more 
relevant than ever. 
2. General assessment 
2.1. The Committee gives its basic approval to the 
inclusion of electricity supplies in the Internal Market 
and therefore welcomes the Commission proposal. 
However, in view of the fact that the supply of elec­
tricity poses special problems, the merging of national 
markets must be a cautious and gradual process. 
Be this as it may, the investment decisions pending call 
for swift action. 
2.2. All Community countries have in the main either 
regional or nationwide electricity supply monopolies. 
The regional supply monopoly is also the commonest 
form of electricity supply in the world. Under the proposal the integration of electricity markets 
will mean the permanent transmission of larger volumes 
of electricity between national grids. This will not 
require any changes to current national supply struc­
tures. 
2.3. Access for third parties 
2.3.1. The reorganization of the electricity industry 
from a competitive angle is, however, proposed in a 
second phase. 
2.3.2. It is not yet possible to make an adequate 
assessment of the pros and cons of such far-reaching 
changes. The Commission communication's calcu­
lations of the economic gains—whose basis is not suf­
ficiently clear from the communication—can only 
become reality if the varying conditions of supply in 
each country (environmental protection standards, pri­
mary energy sources, etc.) do not change with time. 
However, if the harmonization being aimed for is 
achieved, electricity prices could become competitive 
even if customers continue to be supplied mainly from 
power stations close-by. 
2.3.3. The Committee will not make any comments 
about the planned second-phase reorganization of elec­
tricity supplies in the Community (common carriage) 
until the Commission presents its ideas on the matter. 
2.3.4. However, the Committee would refer here and 
now to a number of issues which should be taken into 
consideration by the Commission in the second phase 
and which have already been stressed in the aforemen­
tioned ESC report on Community electricity supplies 
in the Internal Market. 
The problems to which the Commission must find a 
conclusive answer include the following: 
— Supply of electricity 
Electricity has certain technical characteristics: 
— it is tied to transmission lines and cannot be 
stored, 
No C 75/24 Official Journal of the European Communities 26. 3. 90 
— it is practicable and economical to transmit it 
only over limited distances. 
— Security of supply 
For most electricity consumers security of supply is of 
prime importance; in some cases it is a vital require­
ment. 
— Security of supply and free competition 
In a common electricity market, security of supply and 
free competition are by and large incompatible. It is 
therefore not always easy to establish a link. 
In all West European countries, state monopolies and 
area monopolies—both private and public—have given 
priority to security of supply. 
The basic question in the electricity industry is whether, 
and to what extent, competition should be given pri­
ority over security of supply. In the final analysis it will 
inevitably be a question of striking the best possible 
compromise. 
— Liberalization of the electricity market 
It might be possible to gauge the effects of liberalizing 
the electricity market by answering the following ques­
tions: 
— How does such an electricity supply system, 
including the European-wide grid, function? 
— What is the extra cost of maintaining security 
of supply for all consumers (private and indus­
trial)? 
— Under such a system will private and industrial 
consumers—irrespective of their location—ben­
efit from low electricity prices which are accept­
able in world market terms? Is it likely that 
small consumers will even be charged higher 
prices under certain circumstances? 
— Will it be possible to prevent or eliminate distor­
tions of competition in the Single Market? 
— What will be the economic, energy, tax and 
fiscal policy consequences of such a switch to 
another system in regional and supra-regional 
terms? 
— What will be the legal and political implications 
of partially dispensing with state and area mon­
opolies? 
— What are the labour market, environmental, 
social and regional policy consequences of such 
a supra-regional system? 
— How is it possible to ensure that the supply 
of electricity to the distribution networks from 
renewable energy sources will not be discrimi­
nated against in future? 3. Special assessment 
3.1. Saving of energy 
The efforts to use energy as efficiently as possible in all 
its forms, including electricity, must remain a priority 
when the electricity market is integrated. 
3.2. Combined heat and power (CHP) 
In some countries of the Community electricity is pro­
duced in conjunction with heat (district heating/CHP). 
Such production systems must always be located in the 
vicinity of the consumer, because heat can only be 
distributed over short distances. The integration of the 
electricity markets must not lead to such systems being 
discriminated against. 
3.3. Cooperation 
The expansion of trade in electricity in the Community 
requires close cooperation between the companies con­
nected to the grid. A committee must therefore be set 
up on which these companies and their workforces sit. 
3.4. Participation of consumers 
In view of the national supply monopolies, care must 
be taken to ensure that the advantages to be had from 
greater integration are passed on to the consumer. 
Therefore, consumer groups should also sit on the 
committee. 
3.5. Third countries 
The European electricity grid is not confined to the 
countries of the Community. Since other countries are 
of major importance (e.g. Switzerland is Europe's 
second largest exporter of electricity), greater inte­
gration will require the involvement of all countries 
connected to the grid. 
4. Comments on the proposal for a Directive 
4.1. Serious divergences between translations result­
ing in interpretations which distort the meaning were 
discovered during the discussion of the proposal. The 
Commission is asked to look into the matter. 
4.2. Article 2 
4.2.1. The term 'high-voltage electricity grid' in 
Article 2 (1) (a) must be explained. 
4.2.2. An indent 1 (c) must be added, reading: 
'transit within the meaning of this Directive shall 
be the transport of electricity beyond national fron­
tiers via an electricity grid as defined in (a).' 
26. 3. 90 Official Journal of the European Communities No C 75/25 
4.3. Article 3 
4.3.1. Add the following to Article 3 (1): 
'This Directive shall not be binding if the interests 
of third countries are affected in the process.' 
4.3.2. Paragraph 3.2 
The Committee has difficulty in understanding why 
requests for transit agreed on by 'entities' must be 
notified to the Commission and the competent national 
Done at Brussels, 31 January 1990. authorities. In order to avoid extra red tape, the Com­
mission should check whether notification can be con­
fined to requests on which no agreement is reached. In 
these cases the Commission, after receiving a complaint 
from the body requesting the transit, will be obliged 
under the Treaty to initiate the proceedings provided 
for therein. 
4.4. Article 5 
This Article has no practical legal significance and can 
therefore be deleted. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE