EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 16.7.2009 
SEC(2009) 972 final 
  
COMMISSION STAFF WORKING DOCUMENT 
 
Accompanying document to the 
Proposal for a 
 
COUNCIL REGULATION 
 
concerning the notification to the Commiss ion of investment projects into energy 
infrastructure within the European Community  
and repealing Regulation (EC) No 736/96 
  
SUMMARY OF THE IMPACT ASSESSMENT  
 
{COM(2009) 361} 
{SEC(2009) 971} 
EN 2   EN 1. P ROBLEM DEFINITION  
1.1. What is the problem? 
The problem that requires action is the lack of consistent data and 
information  on investment projects (in their different phases) and the related 
shortcomings . Data, whatever source, is not always complete, reliable or fit for 
the required analysis: for example, EUROSTAT data deals with past 
developments while prospective data/inf ormation is necessary for investment 
projects. Council Regulation (EC) No 736/96 should in principle allow a 
monitoring of investment projects at  EU level. The Commission shall be 
notified once a year of major investment projects or major decisions affecting 
investment projects in th e petroleum, natural gas and electricity sectors. 
However, this Regulation is no longer consistently enforced nor adapted to today’s energy challenges. No other horiz ontal instrument at EU level exists. 
Without appropriate data, the Comm ission is not in a position to: 
– analyze the likely evolution of EU ener gy infrastructure, de tect any potential 
gaps and anticipate future energy supply;  
– evaluate EU energy policy and suppor t policy-making with official data; 
– promote transparency on the likely evolution of the EU energy system. 
Data reporting (i.e. notificat ion of information) and monitoring (i.e. analysis) of 
investment projects and the evolution of the EU energy system are considered important in particular in this period of time. While significant investment into EU energy infrastructure is crucial, there is a high degree of uncertainty - increased by the current economic and financ ial crisis - related to the realisation 
of investment projects. As mentioned in the Second Strategic Energy Review 
adopted by the Commission in 2008, these investments are required to respond 
to future energy demand, to foster the transition to a low carbon energy future 
and to ensure greater energy security in case of a crisis as well as the effective 
functioning of the internal market. 
1.2. Who is most affected and why is  public interven tion necessary? 
EU institutions lack relevant/consistent data on the development of energy 
infrastructure in the EU to assess the strategic supply/demand balance. Industry 
is potentially affected by insufficient transparency on the likely evolution of the EU energy system. 
2. A
NALYSIS OF SUBSIDIARITY  
EU institutions have decided new policies and set up a regulatory framework in 
which economic operators have to make  investment decisions. Data reporting 
and monitoring (i.e. analysis) of data on the progress of investment projects are 
necessary. As the EU/regional dimensi on and EU policies are more and more 
EN 3   EN predominant and given that energy sector s are more and more interrelated and 
integrated, national or sector – specific information risks to become insufficient. 
3. O BJECTIVES OF THE EU INITIATIVE  
The general objectives of the revision of Council Regulati on (EC) No 736/96 
are to build an effective and efficient reporting and monitoring tool, i.e. to 
collect appropriate data on investment in to EU energy infrastructure and to set 
up a mechanism for sharing the resulting analysis with Member States and 
stakeholders.  
4. P OLICY OPTIONS  
Four options have been considered: 
– Option 0 – Status quo - Monitori ng of the evolution of energy 
infrastructure on the basis of  exiting reporting requirements : Under 
option 0, data and information on i nvestment projects into EU energy 
infrastructure would be either pr ovided through existing EU reporting 
mechanisms and / or purchased by the Commission. 
– Option 1 – Repeal of Council Regulation (EC) No 736/96 : Compared to 
the status quo, this option consists in  repealing Council Regulation (EC) No 
736/96 given the poor implementation of  this Regulation and its growing 
inability to capture the new EU ener gy system. Assuming that in the longer 
run markets would balance supply and demand regular monitoring would be 
replaced by studies that could be conduc ted on a case by case basis if specific 
policy decisions would require an anal ysis of energy related investment 
projects.   
– Option 2 – Monitoring of the evolut ion of energy infrastructure with a 
complementary reporting: An improved and updated reporting tool is 
devised: data requirements reflect the evolution of the EU  energy system and 
requirements for quality of data are reinforced. The reporting obligations are 
aligned with recent legislative developm ents (e.g. reporting every two years, 
monitoring under the third internal market package) and are simplified: Member States may be exempted from reporting under this Regulation if equivalent data is provided by ot her means (e.g. under existing specific 
legislation) and companies may also be relieved to notify information if 
Member States decide and provide the required info via other means. On top of reporting, provision is made for an alysis of the data  by the Commission 
and for a possible transparency of data  collected, except for the commercially 
sensitive ones. 
– Option 3 – Monitoring of the evolut ion of energy infrastructure with new 
and fully-fledged reporting requirements: The difference with option 2 is 
that option 3 sets a fully-fledged inte grated reporting and monitoring system. 
Member States are obliged to notify a nd validate all requested information to 
EN 4   EN the Commission, irrespective of other existing notification mechanisms or 
monitoring mechanisms developed at EU level.  
5. A SSESSMENT OF IMPACTS  
An improved and strengthened reporting sy stem will increase data availability 
and the quality of data and informati on notified to the Commission on a short 
term basis. Regular analysis of the situ ation and increased transparency will be 
possible. In a medium to long term pe rspective, the elaboration of an EU 
consistent approach and overview of th e likely evolution of the EU energy 
system, based on accurate and appropriate information, is generally valued by investors, in particular if it reveals obs tacles to investment projects such as 
undue authorisation procedures or lack of  credit. With better information, the 
Commission could promote best practices. 
Policy options 2 and 3 are considered mo re relevant. They provide a useful 
framework for discussion between public authorities and stakeholders in the 
analysis of future trends and investme nt projects and encountered investment 
barriers. 
The maximum administrative cost (for companies, 27 Member States and the 
Commission included) for a full re porting induced by a revised Council 
Regulation (EC) No 736/96 is estimated at  about half a million €. However, this 
maximum cost will not be actually incu rred as some data will have to be 
collected by Member States, at any ra te due to other legal requirements. 
6. C
OMPARISON OF OPTIONS  
Against the criteria of efficiency, effec tiveness and coherence, option 2 presents 
the most favourable outcome of the optio ns considered and best reaches the 
objectives set for the revision of C ouncil Regulation (EC) No 736/96. It 
provides an integrated and updated framework combining reporting and 
monitoring at EU level. It  gives the possibility to us e validated data, which will 
improve acceptability of data and allow for comparison. As it takes into account 
the existing reporting which is of possible interest, it avoids duplicating existing 
work and minimizes the administrative burden imposed on Industry and Member States. It is  a proportionate option. 
7. M
ONITORING AND EVALUATION  
The impact of the new reporting and m onitoring mechanism will be observed on 
the basis of the number of Member States complying with the reporting 
obligation and of the quality, completene ss, appropriateness of data collected. 
Participation of stakeholders and of interested entities in the monitoring 
mechanism (interest in analytical reports , participation in meetings…) and the 
use of its results by EU institutions a nd other interested pa rties will also be 
monitored.