ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (84) 693 
 
 
 
Vol. 1984/0 254 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
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 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C O M (84) 693 fin a l
Brussels, 13 December 1984
M E M B E R  STATES' E N E R G Y  POLICIES: M A IN  ISS U ES F O R  T H E  F U T U R E
(Communication from the Commission to the Council)
C O M (84) 693 fin a l

WEBBER STATES' ENERGY POLICIES: HAIN ISSUES FOR THE FUTURE
Comunication fron the Comission to the Council 
following the Examination of the Comission's In-Depth Review
1. In February 1984 the Commission presented to the Council the results  
of an in-depth review of Member States' energy policies within the  
framework of the objectives and guidelines for 1990 set by the  
Council in 1980 .  At its 929th meeting on 22 May 1984 the (Energy)  
Council had a wide-ranging first debate on the issues raised in the  
Commission's report, noting the considerable progress made by the  
Community towards its 1990 objectives and emphasising the value of  
the Commission's monitoring exercise. It then called on COREPER to  
analyse the Commission's report in more detail, examining:
(a) how far national energy policies were contributing in a  
harmonised and balanced fashion to the Community's common  
objectives;
(b) the conclusions to be drawn at Community level about priorities  
for action; and
(c) new guidelines for 1995.
2. The first part of the mandate given to COREPER is now completed.
Since the meeting of the Council in May, officials from all Member  
States have participated for the first time in a detailed examination  
in cowaon of each others' energy policies. The Commission believe  
this to have been a highly beneficial exercise. In the first place,  
the discussions served to up-date the information presented in the  
Commission's report, particularly with reference to policy  
developments that have occurred in some Member States since the  
report was prepared. Secondly, and more importantly, they enabled  
each Member State to explain its energy policy to the other members  
of the Community in a more structured and comprehensive way than  
before. These explanations within a Community framework have served  
to improve understanding of individual energy situations and of the  
achievements of policy to date, and to identify the main
preoccupations of Member States for the future. This improved mutual  
understanding should make a positive contribution to future  
discussions in the Council on the further development of a common  
energy strategy that takes fully into account the special features of  
each Member State's situation.
1C0M(84)87 and C0M(84)88 final.

-  2 -
3. The Commission believes that an in-depth review of the kind  
undertaken this year, including the examination by Member States of  
each others' energy policies should become an essential feature of  
the monitoring process in the future. It may not prove necessary or  
practicable to go through the process every year but it must be done  
on a regular basis as an important tool in the definition of  
requirements for Community action and as an aid to national policy­
making. These views were endorsed by the Council at its 966th session  
devoted to energy on 13 November 1984.
4. The note that follows summarises the Commission's own Conclusions  
from this year's review exercise, concentrating on the main questions  
for the future facing each Member State. It is not intended as a new  
review of Member States' energy programmes; it seeks only to  
synthesise the key issues identified in the debates. It follows the  
analysis already made available to the Council in the Commission  
Staff Report SEC 1658 issued on 30 October 1984.
The 6eneral Context
5. A new analysis of the areas of concern and priorities for future  
action would clearly be premature pending discussion of the  
Commission's forthcoming study on energy supply and demand  
possibilities to the year 2000. But the discussions that have taken  
place among Member States already have helped the Commission to  
identify some questions about the general context in which Member  
States' policies for the future will be pursued, and specifically  
about the trends and outlook for the energy sector as a whole.
6. There are signs from a number of Member States that energy demand  
this year will increase slightly for the first time since 1980. But  
the increase will be from a very low base and an increasing degree of  
uncertainty now prevails among forecasters about the likely future of  
energy demand. Uncertainty has been the feature of the energy scene  
for some time; it was highlighted in the Commission's review of  
Community energy strategy last year. But the uncertainty is now seen  
as more acute. In general, projections of energy demand for the  
medium- and long-term have been falling, partly because of downward  
revisions to assumptions about GDP growth and partly because of  
greater optimism about the continuing momentum of restructuring in  
the energy sector. But there are some important differences amongst  
forecasters about the durability of the decoupling of GDP and energy  
demand that has occurred, about the conditions that will be required  
to sustain progress, and about the future evolution of energy prices.  
Different rates of evolution of energy demand will have different  
impl’c ions both for overall energy supplies and for the competition  
bet! :ndividual fuels. The degree of uncertainty that currently  
prevails <nderlines the importance of adequate flexibility in the  
energy sy.-i.em to respond to possible changes in energy conditions  
during the remainder of this century. The forthcoming study by the  
Commission staff of energy supply and demand to 2000 will provide one  
important basis for a thorough review of these issues before the  
Council is asked to make policy choices for the 1990s.
2C0M(83)305 final.

- 3 -
7. The discussions of the Commission's Review highlighted a number of
questions about the natural gas market. In several Community
countries current demand from the domestic and general industrial  
markets is low in relation to supplies contracted in the 1970s when  
demand expectations were higher. How much is this a short-term  
problem? What can be done to alleviate it and what will be the  
implications in the medium-term for the level of natural gas use in  
power stations? What are the supply implications for the longer-term?  
The Commission has recently transmitted to the Council a
Communication on natural gas policy addressing these questions'5.
8. Discussions have suggested greater confidence among Member States
about the prospects in the electricity sector. Electricity demand has  
picked up in the past year with the upturn in economic growth; and  
although expectations of electricity demand in the medium- and long­
term in some Member States remain generally more modest than at the  
beginning of the decade, this is not seen as a reason for major  
rethinking of power station investment programmes. Important
questions remain, however, about the long-term balance between fuels  
in the power station sector on different growth and capacity
assumptions. The long-term share of hard coal is particularly  
uncertain as nuclear power programmes progress in Member States. A  
further complicating factor here is the growing public concern about  
the environmental aspects of solid fuels combustion.
9. Underlying many of the differences among forecasters are questions  
about the rate at which the scope for energy savings will be 
exploited and specifically about rates of investment in a more  
relaxed energy environment. Lower oil prices have followed from  
diversification to other energy sources and energy savings. The  
trends could be reversed if the commendable efforts by energy users  
in the selection and efficient use of energy sources are not  
sustained. Energy savings remains therefore a high policy priority  
throughout the Community, although there are continuing differences  
of approach and emphasis among Member States. Some Member States with  
less developed programmes have recently given renewed emphasis to  
energy savings policies; while others, with historically high levels  
of expenditure on energy saving, are tending to narrow and to sharpen  
the focus of their programmes. At its meeting on 13 November the  
Council agreed a new Resolution on energy savings policy which  
provides an up-to-date framework for action and should discourage any  
relaxation of efforts.
10. Pricing policy will be vital in the latter context. Discussions of  
the Review underlined the importance attached generally by Member  
States to energy pricing as a stimulus to rational energy use, but  
also illustrated the short-term financial pressures facing some of  
the energy industries. The Commission staff report on the application  
of energy pricing principles in Member States is currently providing  
the basis for more detailed examination of these issues by the  
Council.
3C0M(84)583 final.
4C0M(84)490 final.

- 4 -
The Main Preoccupations of Member States
Belgium
11. Four areas of Belgian energy policy were identified by the Commission  
as particularly important for the coming years:
i) the new impetus given to policies for rational energy use, 
including energy saving. Belgian officials underlined the  
importance attached by the Government to this sector and its  
optimism about the speed at which the unrealised potential will  
be exploited;
ii) the implications of potential excess supplies of gas in the 
medium-term. Natural gas demand has recently increased slightly,  
but high prices are an evident constraint on rapid market  
penetration. The place of natural gas in the energy balance in  
the medium- and long-term remains, therefore, subject to a degree  
of uncertainty;
iii) the difficulties facing the Belgian coal industry. Since the  
Commission published its report one further coalmine has been  
closed. The existing arrangements for financial support for the  
industry from central Government are due to come to an end in  
1986; but the regional and social aspects of developments in the  
industry are bound to be an important preoccupation of the  
competent Belgian institutions over the coming years;
iv) the long-term ordering programme of the electricity industry. 
Decisions have already been taken on participation in the French  
nuclear station at Chooz; further decisions on capacity options  
will await the presentation of a new Equipment Plan by the  
electricity industry in 1985. A key issue in that context will be  
the choice for the long-term between new coal and nuclear plant.  
Whatever the precise balance between the two fuels, however,  
Belgium is likely to enjoy a steady increase in the combined  
share of nuclear and solid fuels in electricity generation.
Denmark
12. Danish energy savings policy has been highly successful, notably in
the residential sector. It is expected to remain a high policy
priority, although the scale of financial support may fall over the  
coming years.
13. The Commission noted in its report on Denmark the difficulties (both
pres^nl and potential) faced by the Danish Government in integrating 
natt 'I as supplies into the energy system. The scope for natural
gas use s been reduced by the success of Danish energy savings
policy ar.~ by the availability of other competing heat supplies.  
Projections of the speed at which gas can be absorbed into the
domestic heating system and into the industrial sector have been  
revised downwards this year and it now seems likely that demand for  
gas in these two sectors will be well below contracted supplies up to  
the end of this decade. The situation should then ease. In order to  
alleviate the difficulties in the short- and medium-term, the Danish

- 5 -
Government has, since the publication of the Commission's report,  
authorised the burning of natural gas in power stations on a limited  
scale and on a temporary basis. It is clear, against that background,  
that the outlook for the natural gas market will remain a continuing  
preoccupation of the Government over the coming years.
14. Denmark has made an impressive shift away from oil to coal in the  
electricity generating sector, complemented by access to cheap  
electricity supplies derived from hydropower and nuclear energy from  
the Nordic Grid. This seems likely to remain the pattern for the  
foreseeable future, probably without any indigenous nuclear  
contribution. The question of the long-term power station mix  
remains, however, an important issue to be faced by the Danish  
authorities in the coming years; the next revision to the Danish  
Energy Plan expected to be published in 1986 is expected to provide  
an appropriate framework for further discussion of the options, 
including the implications of new and more stringent environmental  
legislation and, possibly, further examination of the nuclear option.
Germany
15. Since the Commission’s report was published, the results of a major  
exercise in energy projections commissioned by the German Government  
have become available. These suggest that the process of  
restructuring in the energy sector should not only continue but be  
intensified through to the end of the century in Germany, with only  
modest growth in overall energy demand to 1990 followed by a  
stabilisation and decline in the 1990s, even if steady economic 
growth is achieved. The projections also suggest a much lower future  
level of demand for gas and oil than projected earlier, with coal  
demand fluctuating around its present level and only nuclear power  
experiencing a significant increase in contribution. The assumptions  
underlying these projections are currently being examined further by  
the German administration and some aspects have been contested by  
some of the energy industries. They rest heavily on expectations of  
rapid changes in industrial structure and more optimistic assumptions  
about the rate of turnover of the capital stock and the penetration  
of new technologies than those of other forecasters. This has
important implications in the context of energy savings policy. In  
addition they have served to highlight other important policy issues  
in the energy sector, notably:
i) the balancing of supply and demand for natural gas in a smaller  
energy market. The German administration is confident, however,  
that sufficient flexibility exists to ensure an appropriate  
market response;
ii) the long-term r6le for coal, both in the energy economy as a
whole and in electricity generation in particular (its largest  
sector of consumption);
iii) the future for the hard coal mining industry, where a process of
adjustment is already underway and which could be further
affected by a more depressed market outlook. An outstanding and  
difficult question against that background is the scope for  
increased imports of coal from third countries.

-  6 -
16. The German administration considers that a central issue for energy
policy in the coming years is the response to public concern about  
pollution. Important legislation is being introduced to reduce air  
pollution. This will have significant implications for the
electricity and oil industries.
Greece
17. Greece has a special energy situation as an industrialising country
with the lowest overall level of energy demand per capita in the
Community. As industrialisation proceeds and GDP grows, energy  
consumption in industry is expected to increase, while households  
will seek higher comfort levels in the home. The Greek Government  
recognises the importance of energy savings policy in both the
industrial and domestic sectors using regulations, incentives,
pricing policy and information efforts.
18. On the supply side, a major investment effort is underway to develop  
domestic resources, notably lignite, as a substitute for imported  
oil. A main preoccupation for the future will be the availability of  
financial and technical resources for the implementation of this  
programme, which will significantly contribute to the reduction in  
dependence on imported energy.
Other specific policy preoccupations are:
i) to ensure the success of Greek efforts to promote exploration and 
development of hydrocarbon resources. Preparations are in hand to  
set a new legislative framework for this sector;
ii) ffforts to promote new and renewable sources in a country where  
many could have particularly good chances of success. The  
progress of the Greek programme will be of great interest in a  
wider Community context;
iii) in the longer term, the possible introduction of natural gas into 
the Greek energy system. A number of options are under review.  
The experience of other Member States in this respect is clearly  
of considerable relevance.
France
19. Over the coming years France expects to consolidate the progress made  
through nuclear power and more rational energy use. But there are  
ifi . ‘f icul'  questions in the short- and medium-term:
i) ene ■  < > y savings policy. Considerable financnal resources have been  
devoted to this sector. The French Government continues to regard  
energy savings as of great importance ana it is optimistic about  
the rate at which savings potential will be exploited. A question  
remains, however, about the contradictory effect of the short-  
-no medium-term pressures facing the gas and electricity  
industries in particular (iii) below).

- 7 -
ii) the scale of the future nuclear ordering programme against a  
background of downward revision to forecast growth in energy  
demand. A related issue of relevance in the Community context is  
the scope for exports of nuclear electricity;
iii) both Electricité de France and Gaz de France face an uncertain  
financial outlook despite the progress made to date, partly  
because of reduced expectations of energy demand. A key  
preoccupation for the future is how to ensure the return of both  
these industries to sustained financial health against the  
background of possible increased price competition between them  
in a less buoyant market situation. Pricing policy will be  
particularly important;
iv) the contribution of the French coal industry to the future energy  
balance. The Government's aim is to reduce steadily in real terms  
the subsidies that are paid. The social and regional consequences  
of the situation will be a continuing source of attention by the  
Government;
Ireland
20. The Irish administration is facing three main questions in the energy  
sector:
i) energy savings policy. In a climate of budgetary stringency the  
financial resources for energy saving have been cut back  
considerably. Regulatory measures are rather limited. Pricing  
policy will therefore have to bear a particularly heavy  
responsibility for influencing the behaviour of consumers and  
investors. The pricing of domestic energy resources is certain to  
remain a continuing preoccupation;
ii) the development of premium markets for natural gas supplies.
Natural gas use in power stations should phase down as the new  
coal-fired power station at Moneypoint comes into operation in  
1986. But the rate at which this can be achieved will depend on  
the expansion of the domestic and industrial markets for gas  
within Ireland and on future possibilities of exports.  
Negotiations between Ireland and the United Kingdom on exports to  
Northern Ireland have recently broken down;
iii) the overall structure of the electricity supply system. Solid 
fuels will be used to meet base load electricity requirements  
when Moneypoint comes on stream. There should be scope in the  
coming years for some conversions from oil to solid fuel-fired  
stations so as to meet additional and peak demand. Environmental  
considerations will also need to be taken into account in the  
future decisions that are taken.
A major uncertainty is the outlook for new hydrocarbon resources from 
the Celtic Sea. A large programme of exploration is being undertaken  
by the oil companies and a new exploration round is underway. The  
discovery of a commercial oil find could have a major impact on  
Ireland's energy supply position.

-  8 -
Ita ly
21. The absence of indigenous energy resources on a large scale is a  
major constraint on Italian energy policy. The Italian Government is  
committed to the introduction of nuclear power and coal into the  
electricity generation system as rapidly as possible in substitution  
for imported oil, within the context of a long-term strategic Energy  
Plan. The aim also is to diversify energy supply and demand by  
greater recourse to natural gas in the domestic and general  
industrial sectors. On the demand side, the Italian Government
recognises the considerable scope for continuing improvements in  
energy efficiency and it expects to see major progress in this field  
during the coming years. Key policy preoccupations seem likely to be:
i) the pace of implementation at the regional and local level of  
Legislation on energy savings. New legislation approved by the  
Italian Parliament in 1983 has so far made only a limited impact  
because of administrative and legislative difficulties at the  
regional level. It is clearly a major concern of central
Government that the remaining obstacles should be overcome.
ii) the pace at which agreements can be reached between the  
electricity supply industry and regional and local authorities on  
the siting of new nuclear and coal-fired stations. There are  
encouraging signs. The prospects should be further enhanced as  
new legislation giving important financial advantages to the  
affected local authorities begins to bite. Future progress could  
also be affected, however, by environmental pressures;
iii) the evolution of the natural gas market. As in some other  
Community countries, the domestic and general industrial sectors  
in Italy are currently unable to absorb all the gas available on  
the market despite progress in developing the distribution and  
transmission system. Some additional quantities of gas are
therefore being burned in power stations on a temporary basis in  
substitution for oil. The future outlook for gas use in  
electricity generation depends clearly on the pace of development  
of premium markets and on the rate of progress in the power  
station construction programmes referred to above;
iv) continuing attention to rational energy prices so as to ensure  
sustained financial health for the energy industries and  
encourage the process of substitution and conversion.
Luxembourg
22. Luxembourg depends almost totally on imports for its energy supplies,  
while its consumption of energy is very heavily influenced by trends  
in the iron and steel industry. The main preoccupations for the  
coming years are:

- 9 -
i) widening the scope of energy savings policy. The: energy  
efficiency of the iron and ste-l industry has already improved  
considerably. Draft legislation involving tax incentives is now  
before Parliament to encourage increased efforts in other  
industries. In the domestic sector the Government is considering  
whether to make recommendations for higher standards in new  
buiIdings;
ii) the conclusion of satisfactory new long-term contract- for  
electricity and gas supplies from neighbouring countries;
iii) the scope for extending the natural gas network for the domestic  
consumer in particular, so as to encourage greater substitution  
of gas for oil in heating.
The Netherlands
23. The Netherlands has a situation of particular importance in a  
Community context as a major gas producer and exporter. Since the  
Commission's report on the Netherlands was published a number of  
aspects of Dutch energy policy have been under further review.  
Pending the conclusions of that review and further Parliamentary  
debate, the main issues facing the Netherlands for the coming years  
seem likely to be:
i) the scope and nature of future energy savings policy. In the past  
few years the Dutch Government has devoted considerable financial  
resources to energy savings. The programmes of financial subsidy  
have recently been under scrutiny. The precise rôle for policy in  
this area can be expected to be clarified shortly;
ii) the overall place of gas in the energy economy. Dutch gas  
reserves have been revalued upwards and there is now greater  
potential export availability. At home the intention is to reduce  
gas (and oil) use in power stations in the medium- and long-term 
so as both to lower the costs of electricity generation and to  
improve energy security. But the rate at which this will occur  
will be affected by
iii) the long-term power station ordering programe. The Government  
will shortly give its reply to the report of the Steering  
Committee on (Nuclear) Energy and indicate its own plans with  
respect to the place of nuclear and solid fuels in electricity  
generation in the 1990s.

-  10 -
The United Kingdom
24. Discussion of the UK programme highlighted the following main  
preoccupations for the coming years:
i) encouraging industry and the domestic consumer to exploit the  
large potential for energy savings. The UK Government considers  
that this can best be done through improved information and the  
stimulus of rational energy prices rather than through wide-  
ranging financial inducements or regulations. In those  
circumstances energy pricing policy will therefore be of critical  
importance;
ii) the maintenance of satisfactory conditions for the exploitation 
and development of hydrocarbons in the North Sea. The tax changes  
of 1983 have been followed by an upsurge in activity and there  
are signs of optimism on the part of the companies about the  
scope for maintaining North Sea oil production at high levels up  
to at least the end of the century. This is important not only to  
the UK but to the supply situation of the whole of the Community.  
It is linked also to the question of long-term gas supplies, gas  
trade and gas security;
iii) the outlook for the coal industry and its contribution to the  
overall energy balance in the coming decade;
iv) the shape of the future nuclear programme in the United Kingdom,  
in the light of the results of the enquiry into the proposed PWR  
reactor at SizewelL, which should be available early next year.