ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)474
Vol.1975/0178

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COMMISSION OFTHEEUROPEAN COMMUNITIES
\
\
COM(75 )474final
Brussels ,17September 1975
■/. " ENERGY SAVINGS
• v ■
SHORT TERM OBJECTIVES 1976 -1977
i.:/ ■<■■.••>
(Communication anddraft Resolution ,submitted bytheCommission
\
♦
•/•: ■■;'itoTheCouncil )
COM(75 )474fin»!

,ETERGYSAVINGS-SHORTTSPJiOBJECTIVES 197-5-1977
Roaeonsforener^rysavinmoam.vrea";;'■■.•.
Theneedforanenergypolicyrelating' "to-energysavingsarisena.rom
.longterraeconomicfactors,such'as-thelimited .'availability orfossil ,
energy ,rosourcesinthe'worldandtheopportunityforreducingthe')•>;
growthintheconsumptionofenergy''Wwellas-forreasonsofprotecting"
theenvironment."■'"•■.';■,-'1,,... ■..'i■v
Tothesereasons -;-'whichhave,alre&iy'inso'iredtho;Co:-vniuiity *5.Action
■■■:(*).,.,programmeonthorational'utilisation' 'o'fenergy .'naytea/.ldodthe■
moreimmédiatepréoccupations •éngaging .iho-présent"situationinthe
energynarkotjthereductionofthevulnerability of.trieJSiiropo«?r.economy
vis&.visoilimports,and.thelimitationofthe'effectsoffurther .price •
risesinoilinvolvingadditional "burdensontho'"balance ,ofpnynents.•-J'
Finally,..a.sustainedeffortforthoreductionofoilconsumption would,(,
makeavaluablecontribution to'achievingthe.equilibriumof,the/market>■
intherelationsbetweentheproducers ,and;consumers --ofoil..:,' ••
With'regardtothepresentstateofenergy..'savingsit",should ,bo
recognizedthatthoeffortsundortak'on so:?arbwi'notgivenriseto
considerable results.In.theevC'.luatic/:ofthese .efforts,it?.s
necessaryto'makea'sharpdistinction -bstvee"vhp©xegcheusand?.r:digenouci
factorswhichgovern,thewholeof--the'rednet-iojvof consumption:-••
–thedevelopmentofcconoraioactivity-syd.climatic -cor/lit:.onb.;- '
(favourablein1974 .without -onc'.c-cv.^Ai
–'theprices .and'the'measures -(constraints andmodifications inthe
'structureof•consumption ),••which ■give';riseontheotherhand -to.[,
deliberate measuresonthemarketandgovernthereal,savings\v
(*)D00.COM(74)1950final©nd'-KesoJ.uitiCh R/l$/,75ofCoi'^cf..lof
17thDecember1974* ' :.U.. !■'.

Translated intofigures,andforthewholeofenergyconsumption
intheCommunity fortheyear1974»thismeansthatofthe60:'too
*inthereduction of-recorded consumption x:onecanattribute :}
+––27Mtoe.tothepriceeffectandtothevoluntaryor
restrictive savingsmeasure :.:,thatisprincipally tosavings,:•
and -
-+33litoetotheslowingdowninthegrowthofG.D.P.andto
favourable climatic conditions .
Withregardtotheconsumption ofoilrthoreduction of65M't
recordedin1974inrelationtopreliminary forecasts ,maybe
attributed thus:
–+30Mttosavings(priceeffect,measures ,plussubstitution
•••.and
t
+35MttoG.D.P.factors andclimate.
'measures takenintheQormunity in1975 :.
In1975,possibilities forsubstitution havingbeenrealised,the
priceofoilproductshavingfalloninrealteres,andthesavings
measuresbeingintroduced only0lowly,thotrueeconorcioo should
notexceed15Mt^**^.Thus,thereductioninconsumption of9/J
oil(***)£nrelationto1973(52Mt)isduoinlargoparttotho
development oftheeoonomiosituation endtofavourable ,oliiaatio
conditions . . (
Indeed,aquickreviewofthemeasuresinforceorprojected for,
thecurrentyearwithinthoCommunity ,leads'onetoconcludethat
.theimportance oftheireffectshouldbetreatedwithreserve,
despitethegreatnumberandvarietyofmeasuresappliedorintho
courseofintroduction . ..
(*)Inlinewiththegrowthofpreviousyears,energyconsumption in1974
should.haverisento975Mtoeinsteadof915Mtosactuallyattained.
(**)See"ShortTermObjectives relatingtothereductionofOil
Consumption "(Doc.COI-I975)118finc-l,definition ofobjectivc>>,para 5).
(*.**)Resolution oftheCouncilrol.-vMngtotheestablishment ofashort-
termobjective inrespectofIhereduction ofoi3.consumption ,
.._DOC..Ry.iy,9/75,30thMay1975. ... L*

-3-
Concrete results should "beobtained only gradually andinvolve delays m
execution often going "beyond aperiod ofoneyear .Atthepresent time ,
measures have "been principally taken inthefollowing fields :
l)Information andindirect measures
-Public Information
-Création ofadvice centres
-Creation ofspecialised government services .
2)Financial
-Tax réductions
-Special loans oraids ,notably inthefield ofthermal insulation
3)Disnuasion andConstraint
-Taxation ofoilproducts \ . , . , .
;morder tochange structures
-Tariffs (electricity )
-Restriction andlimitation ,notably inthefields oftransport or
ofdomestic heating ,orpublic lighting
Since these measures areconvergent ,butdonothave thesame degree of
diffusion andimportance bycountry ,itisvirtually impossible toevaluate
results in1975 *
3.Probable development in1976 and 1977 '
Whereas theyears 1974 and1975 were characterised byavery marked slowing
down ineconomic activity ,aneconomic recovery isnevertheless expected in
1976 and1977 :abasis ofanaverage annual rate ofgrowth of4$intheGDP
could beused asahypothetical basis ;this corresponds tothelong-term
energy forecacts .TheCommission realizes that this growth rate isan
optimistic one,andreserves theright toreview theenergy savings targets
ifthesituation warrants it.A4%growth ineconomic activity would
ordinarily mean anadditional input ofenergy ofroughly thesame amount .
Thefollowing factors must also betaken into accounts

-4-
-itishighly unlikely that thefavourable climatic conditions ofthe
last twoyears will herepeated inthenext twoj aconsumption
corresponding tothat oftheheating needs ofa"normal "winter whould
therefore heexpected }
-itisassumed that energy prices wrill remain relatively stable inreal
terms ;
-theenergy conservation measures introduced in1974 and 3-975 will continue
tohave their affect .
Onthis basis itislikely that internal energy consumption will increase by
40Mtoe in1976 compared with theprevious year ,andby37Mtoe in1977 »
Taking into account theprobable additional supplies ofnatural gasproduced
intheCommunity (+10$)andprimary electricity (+15/o)»itislikely that
oilconsumption will increase byonly 10Mtin1976 andby12Mtin1977 »
i.e. byabout 2$.
Asfornetimports ofenergy andoil ,the^are likely toremain fairly
stable in1976 (560Mtoe ofwhich oilwould be5^5Mt)andeven fall in
1977 hy15Mtoe forenergy and20Mtforoil ,taking account ofindigenous
production .
4.Encr,' "^-conservation objectives for1976 and1977 «
This probable growth inenergy consumption ,raises thedifficult question
ofhowtowork outafirm policy with regard toenergy savings andhow
toachieve additional economies without hindering economic recovery .
Consequently ,itseems necessary toensure that thesavings measures do
notaffect theuseful consumption ofenergy andtoconcentrate onthe
non-useful part ofenergy consumption ,i.e. waste andpoor efficiency .
Close attention must therefore bepaid tothese twoobjectives which are •
moreover basic totheCommunity 'smedium andlong term programmes forthe
rational useofenergy^,andtheCouncil 'sResolution onthissubject ,
of17December 1974 »
What practical steps canbetaken in1976 and1977 ?
l)Doc.COM(74 )1950 final "Programme forCommunity action onthe
Rational Use ofEnergy ".

-5-
Theresponsible public authorities should commit themselves :
i
-toapplying with greather effectiveness those measures already i
taken ,especially infields directly orindirectly under publio
authority control where anexample should begiven (such ascontrol
ofheating andambient temperatures ,sensible useoflighting andof
official cars etc )inadministrative offices ,schools ,barracks ,
hospitals ,tertiary-sector enterprises -transport ,energy ,and i
banking andinsurance ;
-toexamining atCommunity level what opportunities andmeans for
extending these measures exist (exchanges ofviews onthe
effectiveness ofthemeasures taken ,andonproblems arising when
they areputinto effect ,etc.);
-tomaking agreater effort inrespect ofinforming thepublic by
effective means andattheright time (e.g. bylaunching simple ,
easily-understood campaigns demonstrating themain areas where
heating fuels canbesaved );
-topublishing incompanies' end-of-year -accounts energy balances
which stressing anysavings that have been made ;
-toaccelerating thework onreforming thepattern ofcomsumption ,
currently being undertaken through programmes for therational use
ofenergy inthemedium term (1985 ),whilst taking into account the
fact that this aimcanonly beachieved bymore intensive andwider -
ranging activities (e.g. bringing forward thetime limit ,even if
this entails introducing provisional measures atshort notice
pending their replacement bymore detailed measures which also
comprise thenecessary inspection andsupervision machinery ).
Inthis connection itappears that theaimofshort-term savings in
engergy requires more indirect /auxiliary measures from public
authorities topromote consumer action .Itwould beparticularly
appropriate :
-todevelop thenecessary structures innational administrations ;
inview ofwhat isatstake (thecontribution oftherational use
ofenergy programme for1985 isareduction ofabout 15$ (240Mtoe )
and thus ofthe same order astheproduction ofcoal orofnuclear -
based electricity ),thepublic authorities should appropriate more
inthewayofresources than atpresent todevising ,implementing
andsupervising these measures ;

-toprovide more opportunities forgiving advice onquestions
connected with therational useofenergy (information offices
andpublicity campaigns related totheareas ofhighest consumption -
heating ,transport );
-toenvisage ,under certain conditions ,financial support which could
beprovided within thescope ofprogrammes inasituation of
economic recovery ,and toprovide for thefinancial requirements by
means offunds from taxation orbyraising the tariffs onenergy
sources ;
-tomake preparations forareference and control group tostudy the
results ofnational and Community energy-conservation programmes .
Itisonly ifthe public authorities conscientiously lead this campaign
forabetter use ofenergy ,giving ittheplace itdeserves ,that the
"savings "obtained in1974 and1975 ;duelargely totheeconomic
situation ,canbemaintained intheform ofreal savings in1976 and
1977 . l
The trend started in1974 and1975 should beable tobemaintained ,re­
establishing theling with the first stage oftheprogramme for the
rational useofenergy inthemedium term v'andjustifying thesetting
ofthefollowing savings objectives :
-inenergy consumption ofabout 20Mtoe (2$)in1976 and
30Mtoe (3#)in1977 ,and
-inoilconsumption 15Mt (37°)in1976 and
25Mt (5/0in1977
Compared with thefigures for1973 (seeAppendix II)these objectives
indicate infact :
-that 1976 energy consumption should remain atthe1973 level in
spite ofthegrowth oftheeconomy .,andshould begrater by33Mtoe
in1977 ;
-that forthese twoyears oilconsumption should remain some 60Mt
(1.2Mb/d)below that of1973 ;
-that netimports ofoilshould bereduced byabout 90Mt (1.8Mb/d)
in1976 and120Mt .(2.4Mb/d)in1977 .
(*)30Mtoe ,i.e. 3$of1977 consumption -seeDoc .C0M(74 )1950 final
"Programme forCommunity action intherational useofenergy ".

-7-
The Commission considers that these objectives can beachieved to
the extent that Member States decide toadopt ,soastoattain
them ,the appropriate measures ofwhich anoutline description has
been given above .
\
Therefore the Commission submits the added draft-resolution for
the Councils' urgent consideration .

■I^VELOr^I-liTS 0?TTHECOraiETITTF21TP.CYKARKET^^®gC^
■■Results.Entimatedresults.Forecasts withoutenergysavingobjectives
■■■•«»«Forecasts withenergysavingefforts ^
«=>«=Previousforecasts (January1973)
Î050- 4 . ;1050
■ ■
1000- 1-–-1000
y*}|InternaiEnergyConsumption>^7/ ^
S50- 7/ ^
■χ<~7
^ / I^650900-X ^< -T^^
I'<^''<I-,/<^ <4 '*nn^ 600
<X
1•Inports(net)\/––550
500 ^*^^^^^ '^^^^^-500 ij/"""l"^V'"~ !i/\ i,// \ iii
jInternaiOilConsumption £j jj[
! ' |i
450b–4r±±=h–à:450\
OU 'TXIXTjt
1972 1973 1974 1975 1976 1977

ANNEX II
ENERGY CONSUMPTION INTHE COTSTUNITY
10 toe
Results Results Estimâtes Forecasts 1976 Forecasts 1977
1973 1974 1975Normal with (**)
actionsnormal v/ith
actions
Energy consumtion 932 915 918 957 938 995 965
Oil eonsumption 552 515 497 508 493 520 495
Energy imports
(net ) 616 587 558 560 540 546 515
Oilimports (net ) 590 561 519 515 500 495 470 |
.i
»
1 1 !
Annual growth
CDF (*)+5.5 +1.9 +0.4 4.0 4.0 4.0 4.0
(*)Price andrate ofchange 1973
(**)With continuing efforts onenergy savings (seechapter 4).

DRAFT COUÎTCIL RESOIUTION
onthesettingofashort–termtarget
forthereduction ofoilconsumption
1976-1977
THECOUNCIL OFTHEEUROPEAU COMMUNITIES
HavingregardtotheTreatyestablishing theEuropean Economic
Community ;
HavingregardtothedraftfromtheCommission ;
HavingnotedtheCommission communication entitled "Energysavings–
short–termtargets1976–77"whichsetsout,interalia,measures
forreducingoilconsumption ;
Considering theCouncilResolutions of17December 1974onCommunity
energypolicyobjectives for1985andontheCommunity actionprogramme
ontherationalutilization ofenergy;
Considering theCouncilResolution of26June1975on"thesettingofa
short-term targetforthereduction ofoilconsumption ;
Whereasreduction oftherateofgrowthofinternal energyconsumption
"bymeasuresfortherational andeconomical useofenergywithout
jeopardizing socialandeconomic growthobjectives isoneoftheaims
oftheCommunity'senergypolicy;
•V.
Whereasenergyresources mustbeusedrationally inordertoconserve
themasmuchaspossible ;
WhereasbyreducingoilimportstheCommunity canalleviate theburden
onbalances ofpaymentsresulting fromthepresentlevelofoilprices;

WhereaseconomicrecoveryintheCommunity in197°an^^-977would,increase
energyrequirements ,especially ontheassumption thataverageannualGDP
growthratemight "beofsome4ifadditional efforttosaveenergyis
madej
Whereasittherefore appearsdesirable toestablish atargetforthe
reduction ofoilconsumption intheCommunity }
1.APPROVES ,inthelightofMemberStatescurrentforecasts ,andonthe
assumption ofeconomic growthmentioned above,thetargetssetfor
theCommunity asawholes
–Energyconsumption :197^consumption tostabilize slightly overthe
1973level(932Mtoe)jlimitthegrowthof1977consumption toa
maximumof35Mtoe(alsobycomparison with1973)?
–Oilconsumption :maintain consumption levelsforboth197^and1977
atsome10$belowconsumption in1973}
2.REQUESTS theMemberStates,withaviewtoattaining thesetargets,to
continue theeffortsalreadyunderwayinthisfield,totakewhatever
measures aresuitedtotheirindividual situations ,andtoreinforce
theiractionsespecially inthefollowing areass
–national administrations andpublicinstitutions
–publicinformation toincrease awareness oftheenergysavingproblem
–adviceandassistance toconsumers ,showingpractical waysofsaving
energy
–incentives suchasloans,taxconcession ,etc.
–momtoring ofadoptedmeasuress
3.REQUESTS theCommission tostudythescopeandthefeasibility for
extending toaCommunity levelsomeofthemeasures foreseen oradopted
inMemberStates,andtosubmittotheCouncil,ifpossible,concrete
proposals beforetheendoftheyear}
4.REQUESTS theCommission tosubmitareporttotheCouncilonthereali-
sationofthistargetandonmeasures takenbytheMemberStatesorby
theCommunity .