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COM (84) 164 
 
 
 
Vol. 1984/0 059 
  
 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(84) 164 final  
Brussels, 26 March 1984
COMMISSION REPORT TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT
on the application of Council Regulation (EEC) N° 625/83 of 15 March 1983  
establishing specific measures of Community interest relating to energy
strategy in 1983
COM(84) 164 final

■  1
COMMISSION REPORT TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT
on the application of Council Regulation (EEC) N° 625/83 of 15 March 1983 
establishing specific measures of Community interest relating to energy 
strategy in 1983.
1. Introduction
This report covers the period from the date of entry into force of 
Council Regulation (EEC) N° 625/83, ie: 19 March 1983, until
31 December 1983. For its report, the Commission has chosen a period 
which is three months longer than that provided for in Article 10 of the 
Regulation, so as to include all the relevant information and in
particular the findings of the on the spot checks carried out in October 
and November 1983, and the Commission decisions of December 1983 
following the adoption of amending and supplementary budget N° 2/83.
2. The Commission Decisions of March 1983
2.1. The Commission first of all examined the projects and measures 
submitted to it by the United Kingdom and the Federal Republic of 
Germany, together with the information necessary in order to assess them.
On the basis of the criteria specified in Articles 2 and 3 of the 
Regulation, the Commission selected the projects and measures meriting 
financial assistance from the Community within the limits of a total 
contribution estimated at 400 million ECU in the case of the United 
Kingdom and 210 million ECU in the case of the Federal Republic of 
Cermany.

-  2 -
In accordance with Article 8 of the Regulation, the draft decisions 
concerning the United Kingdom and the Federal Republic of Germany were 
submitted to the Management Committee set up for this purpose. This 
Committee issued a favourable opinion on both of the draft decisions at 
its meeting on 21 March 1983.
2.2. Accordingly, on 23 March 1983, the Commission adopted one decision 
granting financial assistance to 17 projects submitted by the United 
Kingdom1 and another decision granting financial assistance to 8 projects 
and one measure (coking coal scheme) submitted by the Federal Republic of 
Germany (see Tables 1 and 2 annexed hereto); in accordance with Article 
4(4) of the Regulation, both decisions were published in the Official 
Journal of the European Communities.
2.3. It emerges from these tables that, in accordance with Article 4(3) 
of the Regulation, the financial assistance from the Community was 
calculated in relation to the public expenditure provided for the 
projects and the measure selected during the relevant financial year, ie: 
in the case of the Federal Republic of Germany during the calendar year 
1983 and in the case of the United Kingdom during the year running from 
1 April 1982 to 31 March 1983.
In accordance with Article 4(3) of the Regulation, where a particular 
project or measure is in receipt of other Community subsidies the ceiling 
for the total level of Community assistance was fixed at 70% of the 
public expenditure during the relevant financial year. Although non- 
subsidised Community loans are not such as to come into the reckoning 
when defining the abovementioned total Community assistance, they have 
nevertheless been taken into consideration, since, by an administrative 
decision, the Commission place a ceiling of 80% on the level of the 
Community's total financial contribution (including non-subsidised loans 
and aids) during the relevant financial year.
1OJ N° L 82 of 29 March 1983.
2OJ N° L 82 of 29 March 1983.

- 3 -
Within the above limits, the level of the Community's financial 
assistance to the different projects and the measure selected was fixed 
case by case, on the basis of their characteristics and merits.
3. First Payment
After adopting the abovementioned decisions, on 24 March 1983 the 
Commission, in accordance with Article 5(2) of the Regulation, paid 90% 
of the amount of the financial assistance granted to each of the two 
Member States in question, ie: 360 million ECU to the United Kingdom and 
189 million ECU to the Federal Republic of Germany.
4. Certifying the Utilisation of the Funds Paid Over
In accordance with Article 5(3) of the Regulation, the United Kingdom 
certified in June 1983 and the Federal Republic of Germany in September 
and November 1983 that the funds paid over as the first payment had been 
used up. They also certified that the projects and the measure in
receipt of Community assistance were proceeding as planned.
5. The Commission Decisions of December 1983
5.1. Article 1 of Regulation 625/83 provided for the financial 
assistance granted to the United Kingdom and the Federal Republic of 
Germany in 1983 in respect of specific measures of Community interest 
relating to energy strategy to be adjusted in the light of the final 
amount of compensation to be granted to each of these two Member States 
for 1982. The October 1983 amending and supplementary budget provided 
for the granting under this heading of additional assistance amounting to 
111.95464 million ECU for the United Kingdom and 62.4846 million ECU for 
the Federal Republic of Germany.
5.2. The Commission decided to allocate these additional amounts by 
increasing, within the limits specified in paragraph 2.3 above, the 
financial assistance granted to some of the projects and the measure 
selected in the context of its decisions of 23 March 1983.

- 4 -
The Committee referred to in Article 7 of the Regulation gave its assent 
at a meeting on 30 November 1983, and on 12 December 1983 the Commission
3
adopted a decision concerning the United Kingdom and a decision
4concerning the Federal Republic of Germany ,  both of which were published 
in the Official Journal of the European Communities, amending the two 
decisions of 23 March 1983 and raising the total amount of financial 
assistance to 511.95464 million ECU for the United Kingdom and 272.4846 
million ECU for the Federal Republic of Germany.
5.3. In its decision concerning the United Kingdom (see Table 3 annexed 
hereto), the Commission raised the amount of financial assistance granted 
to seven of the biggest projects selected within the context of the 
decision of 23 March 1983, i.e. the five nuclear power stations, the Drax 
coal-fired power station and the electricity interconnector linking 
between the United Kingdom and France.
Similarly, in its decision concerning the Federal Republic of Germany 
(see Table 4 annexed hereto), the Commission raised the amount of 
assistance granted to two of the biggest projects and the measure 
selected within the context of the decision of 23 March 1983, i.e. the 
THTR-300 Schmehausen and the coking coal scheme.
5.4. When the decisions of 12 December 1983 were being drafted, the 
figures for the actual public expenditure in the United Kingdom in 
respect of the projects selected, during the relevant financial year 
(1 April 1982 - 31 March 1983), were already available, with the result 
that it was possible to correct, where this Member State was concerned, 
the forecasts of public expenditure indicated in the decision of 23 March 
1983. However, the figures for the actual public expenditure in the 
Federal Republic of Germany in 1983 were not available before the 
beginning of 1984, with the result that in the decision of 12 December
3OJ N° L 9 of 12 January 1984.
4OJ N° L 9 of 12 January 1984.

- 5 -
1983 concerning the Federal Republic of Germany the forecasts of 
expenditure indicated in the decision of 23 March 1983 were again 
included.
6. Checks to establish that the projects and the measure selected are 
implemented in conformity with the Regulation
6.1. The Commission obtained from the United Kingdom in July 1983 and 
from the Federal Republic of Germany in September 1983 a certain amount 
of information concerning the implementation of the projects and the 
measure in receipt of financial assistance from the Communicy, with a 
view to updating, supplementing and verifying the information already in 
its possession.
6.2. The Commission then decided, on the basis of the type and scale of 
the projects and the measure, which of them should be checked on the spot 
by its officials, in accordance with Article 5(3) of the Regulation. 
These checks, which were carried out in accordance with the procedure 
laid down in Article 6 of the Regulation, with the agreement and 
assistance of the Member States concerned, took place in the United 
Kingdom at the end of October 1983 and in the Federal Republic of Germany 
at the end of November 1983.«
6.3. Four United Kingdom projects were checked on the spot: Heysham II 
(advanced gas-cooled reactor), Drax (coal-fired power station) Morecambe 
(natural gas terminal) and Dynevor Arms (natural gas storage facility). 
They represent 61% of the total financial assistance granted.
6.4. In the Federal Republic of Germany, Commission officials checked 
the coking coal production aid scheme, and two projects: VEW-KUV (coal 
gasification) and SNR 300 Kalkar (fast breeder reactor), representing 63% 
of the total financial assistance granted.
6.5. It was established on the basis of the on the spot checks and an 
examination of the data already in the Commission's possession that the 
implementation of the projects and the measure in receipt of Community 
assistance were proceeding as planned and in conformity with Regulation

-  6 -
625/83, the subsequent Commission decisions and the regulations adopted 
pursuant to Article 209 of the EEC Treaty. With regard to the financial
aspect in particular, the Commission satisfied itself that the public 
expenditure foreseen for the implementation of each project and measure 
was actually effected.
6.6. However, in the case of three of the German projects, i.e. 
Rohrreaktor-Salzgitter,  Université de Aachen and Saarbergwerke,  the 
reduction in public expenditure on their implementation compared with the 
forecasts contained in the Commission <ieeisio as» prompted the Commission 
to reduce the total amount of assistance due by 1.79 million ECU, by 
applying the aid ceiling of 70% of the public expenditure provided for in 
Article 4(3) of the Regulation, bringing it down to 270.6946 million ECU 
instead of 272.4846 million ECU (see paragraph 8 below).
7. Subsequent payments
7.1. As all the conditions laid down in Article 5(3) of the Regulation 
were satisfied, the Commission paid the balances as follows:
(a) On 2 December 1983 the Commission paid the United Kingdom the 10% 
balance of the financial assistance granted under its decision of 23 
March 1983, i.e. 40 million ECU. On 31 December 1983 it paid the 
United Kingdom all the additional financial assistance granted, i.e. 
111.95464 million ECU.
(b) On 31 December 1983 the Commission paid the Federal Republic of 
Germany the balance of the total financial assistance provided for in 
the decision of 12 December 1983 less 1.79 million ECU as a result of 
applying the 70% aid ceiling to the three projects mentioned in 
paragraph 6.6 above, i.e. a sum of 81.6946 million ECU.
8. Commission decision concerning the Federal Republic of Germany to be
taken at the beginning of 1984

- 7 -
Subject to the opinion of the Commit.tee referred to in Article 7 of the 
Regulation, the Commission proposes to grant the residual amount of 
1.79 million ECU to one of the German projects selected. In the same 
decision, the Commission will correct, on the basis of the final figures 
which will then be available, the actual public expenditure in 1983 on 
the implementation of the projects and the measure in the Federal 
Republic of Germany which have received financial assistance from the 
Community.

-  8 -
ANNEX

Table 1
P fO lfC t
N oNam e of project Type of project' ·, · Public ■  eipendllura 
'forcKcn from  1  A pril 1982 to 3 1  M arch 1 9 8 3  
(m illion 
. E C U  ('))CommunityOdiii Com munity
T otalCom m unitylinsncing 
(u V *  of 4 )Support 
in accordant! vllh R egulation 
(E E C )
No 625/83 (m illion E C U )(ai %  of 4 )Gianu 
(m V, of 4 )L od/u 
( u *  * /*  oi 4 )
(1 ) (J) (3 ) ( < > (3 ) W P) (« )
lHeytham I — Lane« Advanced gu-cooled 
reactor 98,66 1 0_ 9 19 9,87
2Hcyiham 1 1  — Lanci Advanced g«-cooled 
reactor 314,08 1 0 — 3 13 51,41
3Tornesa, E. Lothian Advanced gei-cooied 
reactor .. ,, 465,62 1 0— 7 17 46,56
4Hartlepool — Cleveland Advanced g*»-cooled 
reactor 8  6,55 1 0— 1 6 26 8,66
5Dungencu — Kent Advanced ga»-cooled 
reactor . . 7VQ 10— — 1 0 7,27
6Drax , Coal-fired power atation 316,76 53' — 1 54 169,34
7Croii Channel link — 
KentElectricity. inter- 
conhector linking 67,51 1 8 — 1 1 29 12,27
8Dinorwic — Gwynedd Pumped itorage power 
tution 38,08 30 — 41 71 11,42
9Fort Dunlop — W. 
Midland»Combined -  heat . and 
power nation 4,15 50— 50 2,08
1 0 Morecambe — Lanci Gai terminal . •  AM8 40 — — 40 35,31
1  1 Rough — Yorluhire Get terminal 55,39 . 40 · — — ,40 22,16
1 2 St Perguj — Grampian Gu terminal ' . 1,90 40 — — 40· 0,76
1 3 Horniea — Yorkihira Gat ttorage facility 6,23 50 — — 50 3.12
M Dynevor Arm» — Wale» Gu itonge facility - 13,67 35 30 — 65 4,78
II Nantgawr — Walea Gai itorage facility ' 14,37 35 ■ 25 — 60 5,03
16 Avonmjuch III — Avon Gu itorage facility 8,14 . 50 — — 50 4,07
1 7 laic of Grain — Kent Gai itorage facility
»11,77 50 · 50 5,89
400,00
(') Rue of exchange : I  ECU —  £ 0,577728.

Table 2
P ublic 
expenditure 
foreseen 1  
lo r 1983 
( m illio n  ·
.  E C U  ( ■ ) )CommunityO lh e i Com munity 
Ii|ia n v lll|i 1  9 8  ) -T otal
C o m m u n ity  i 
lin a n cin g  
(»i V #  ol 4)
(7 )Support 
in accordance 
w ith  R egulation
(B E  q  No 625/13(m illion E C U )
oProject
N oN am « of project Typ« of projecttuppon 
(Il %  ol 4 )
1 5 1G rant» 
(tu  V . U  4 )Loan» 
at * /· of 4)
(1 )
1
2< J )
Solar Village SV 3 
'Rohrreaktor1  Salzgittcr(3 )
Solar village . · 
Coal liquefaction2^9
8,42 6565
655,47
6,45
3 VEW — KUVCoal gasification 9,92 65~
4
5MKW Volklingen 
Coking coal achemeCoal-fired power autlon 
with fluidized bed 
combustion
Aid for the production4,31 
232,8960
49,4_ —60
4
9,4.
252,58
115,13
38,06
6 SNR 300 Kalkar Fast breeder reactor ■ 152,24 25
7 THTR-300 Schmehauien Thorium fuelled high- 
temperature reactor... *  ‘  i
143,19. 25 - — 25 35,80
\
8 Min« EBV charbon i 
coke · ·Rationalization of 
production .  .... •  31,35 — ■2 *2. 64 —
9 Chauffage Universiti 
AachenPressurized fluidized bed 
(pilot installation) 5.39 65 — — 65 ' 3,50
1 0 Rhcinbraun Hydrogaaification of lig­
nite in a  fluidized bed 
(pilot installation) . ■ 4,36 65 — — 65 · 2.83
1 1 Saarbergwcrke Utilization in an under­
ground mine of gypsum 
formed during flue-gw 
desulphurization
1. 0,27 65
»__:-----------—65
________ _—0,
18 
j  210,00
(') Rale ol exchange: 1  ECU —  DM 2,3186/.

Table 3 '
P rotectN >m e ol piojcci Type ol projectPublicexpenditure
from
1  A pril 1 9 8 2  to  
3 1  M arch 1 9 8 3
(m illion 
E C U  ('))CommunityOther Com  
financing 1....vd
'M TuImI
Com m unitySuppon 
in accordance 
w ith R egulation
N o(m i 7 »  of 4 )G rants
(mi V t ol 4)l bail) 
\0%  * · '* ol 4 /fiiuncinj 
(m s * /· o f 4 J(H fc C )
N o 625/82(m illion E C U )
ID (2 ) (3 ) '< « ) (5)(‘ ) ( « * )(·) I7 )!1 ) (8 ) 1
1Heysham 1  — Lancs. Advanced gaj-cooled 
reactor 91,39 15,8 y 24,8 14.4393
2Heysham 1 1  — ^anci. Advanced gas-cooled 
reactor ■  494,70 13,8— J 18,4 76,1450
iTorness — E . Loihiin Advanced gas-cooled 
reactor ‘  406,60 16.5 — / 2J.5 66,890
4Hartlepool — Cleveland Advanced gas-cooled 
reactor ' j , * ‘  78,93· , 16,0 — lb 32,0 12,6065
, 4 Dungcncss — Kent Advanced gas-cooled 
reactor *  ·* · •  70,62 .  15,3— 15,3 10,8010
6Dr·« Coal-fired power station 313,12 62,0 — 1 63,0 194,20264
7Cross-Channel inter- 
connec — KentElectricity interconnector, 
linking .  74,95 
33,5836,4 — 1 1 67,4 42,2500
8Dmorwic — Gwynedd Pumped storage power 
station \ 34,0' — 4 1 75,0 ' 11,42
9Fori Dunlop — W. 
MidlandsCombined heat ' and 
power station -3,75 33,3 ·  — — ■ ' 55,5 !  2,08
1 0 Morecarnbc — Lancs. *  r ·Gas terminal·, 81,87. •  43,1 ·■_ . ' — ■  43,1 35,31
1  1 Rough — Yorkshire Gas terminal ' ' '■  43,97 ••30.4 · '· — — 50,4 22,16
1 2 S i Fergus — Grampian Gas terminal ' '· 2* 0 4 3 7 , 3 ; .— !  ■  ' — •  37,3 ' •  0,76
1  J Hornsea — Yorkshire Gas storage facility 5,83 . 33,5 ' — — 53,5 ' 3,12
1 4 Dynevor Arms — Wales Gas storage facility 16,53 ' 28,9 30 ' — 58,9 4,78
1  5 Nanigawr — Wales Gas storage facility 12.60 39^9 . 25,. — 64,9 5,03
1 6 Avonmouih I I I  — Avon Gas storage facility . 7.88 ■ . 31,6 ' — — 31.6 4,07
1 7 Isle ol Grain — Kent Gas storage facility 11,34 51,9151,9 5,89
511,95464
(') Rile ol cschange : 1  ECU —  £ 0,577728. 
(') Indicative percentage.
t

Tab Le ; , 4
PrefectVPublic
expenditure Com munityOther Com munity 
financing 198Jt
T otal
Com munity financing 
(is V *  o f 4 )Support 
in accordance 
w ith R egulation 
(EtQ No 623/11 
(m illion E C U )N am e of projcci Type o 1  projectfor 1 9 8 3  
•  (m illion ·  E C U ) ( * )  ·support
(u v· of 4 ) G ram s 
(a s %  of 8 )L oans 
(a s V #  o f 4 )
(1 ) (2 ) (3 ) :  (1 ) •  w o (‘10 w o (8 )
1 Solar Village SV 3 Solar village 2,29 1 — · — — — ' —
2 'Kohrrcikior' Salzgiucr Coa) liquefaction 8.« 65,0 — — 65,0 5,47
3 VEW — K .U V Coal- gasification ' 9,92 ■ 65,0 · — 65,0 6,45
4 MKW Vollclingen Coal-fired power station 
with fluidized bed 
combustion “ 1 ,3 1 59,9 _ 59
,9 2.58
5 Coking coal scheme Aid for the production 232,89 54,7 r- — 54.7 127,4981
6 SNR 300 Kalkar Past breeder reactor •  152,24 .25,0 — — 25,0 38,06
•
7 THTR-300 Schmehauaen Thorium fuelled high· 
temperature reactor 143,19 -60,0 — — 60,0 85,9165
■ 8 Mines EBV charbon i 
cokeRationalization of pro­
duction ' 31,35 — 2 62 64,0 — ’
9 Chauflage Univeniti 
AachenPressurized fluidized bed 
(pilot installation) 5,39 64.9 — — 64,9 ■ 3.50
1 0 Rheinbraun Hydrogasification of lig­
nite in a  fluidized bed 
(pilot ‘  installation) 4,36 64,9 64,9 483
1  1 Saarbergwerke Utilization in an under­
ground mine of gypsum 
formed during flue-gas 
desulphurization 0,27 66 7 — — 66,7 0,18
272,4846
(') tyetc ot exchange : 1  ECU ^ DM  2,31867. 
(j) Indicative percentage.