Proposal for a Council Directive to introduce rational planning techniques in the electricity and gas distribution sectors

(96/C 1/05)

COM(95) 369 final - 95/0208(SYN)

(Submitted by the Commission on 14 November 1995)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 130s (1) thereof,

Having regard to a proposal from the Commission,

Acting in accordance with the procedure referred to in Article 189c in cooperation with the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Having regard to the opinion of the Committee of the Regions,

Whereas the Council of Environment and Energy Ministers, at their meeting on 29 October 1990, set an objective of the stabilization of total CO2 emissions by the year 2000 at the 1990 level in the Community as a whole;

Whereas Article 130r of the Treaty stipulates that one objective of the action of the Community relating to the environment shall be to ensure a prudent and rational utilization of natural resources; whereas the power generation industry is responsible for 30 % and the natural gas sector for 18 % of the CO2 emissions in the Community (1);

Whereas by Council Decision 93/389/EEC (2) a monitoring mechanism for CO2 emissions and other greenhouse gases was adopted;

Whereas, given the transnational nature of CO2 emissions, the introduction of rational planning techniques in the gas and electricity distribution sectors cannot be satisfactorily implemented at the level of Member States; and whereas, in pursuance of the principle of subsidiarity as set out in Article 3b of the Treaty, what is proposed by the adoption of the present Directive is the establishment of common measures to be applied by all Member States, while leaving to each Member State the flexibility to adapt them to the peculiarities of its energy sector;

Whereas in its resolution of 15 January 1985 on the improvement of energy saving programmes in the Member States (3), the Council invited the latter to pursue and where necessary increase their efforts to promote the more rational use of energy by the further development of integrated energy saving policies;

Whereas in its resolution of 16 September 1986 (4), the Council adopted for the Community the objective of achieving a more rational use of energy through improved energy efficiency and that the efficiency of final demand should be improved by at least 20 % by 1995;

Whereas improved energy efficiency will have a positive impact both on the security of energy supplies and on the environment which are global in nature; whereas, therefore, a high level of international cooperation is desirable to produce the most positive results;

Whereas the relationship between the electricity and gas distribution companies and the final consumer provides an opportunity for the companies to influence consumers' decision on investment in energy-efficient projects;

Whereas all classes of electricity and gas consumers, including residential consumers, will benefit directly from a more rational planning by the distribution utilities;

Whereas by Council Decision 89/364/EEC (1) a Community action programme for improving the efficiency of electricity use was adopted;

Whereas by Council Decision 91/565/EEC (2) a Community energy efficiency programme (SAVE), aimed at strengthening energy-efficient infrastructures within the Community, was adopted;

Whereas by Decision No 1110/94/EC (3) the European Parliament and the Council established a fourth framework programme for actions in technological research, development and demonstration; whereas integrated resource planning constitutes an important instrument for the use and promotion of new energy technologies that the framework programme will establish,

HAS ADOPTED THIS DIRECTIVE:

Article 1

The purpose of this Directive shall be to contribute to the Community objective of stabilizing carbon dioxide emissions by the year 2000 at the 1990 level in the Community as a whole, while at the same time improving the competitiveness of the Community economy by improving end-use efficiency in the electricity and gas distribution sectors through the introduction of more rational planning techniques. These techniques (hereinafter referred to as integrated resource planning) shall evaluate investment opportunities in energy supply and energy demand reduction on a single economic basis.

Article 2

Member States shall take the following steps to promote, through a framework of measures, the use of integrated resource planning as a tool for a more rational approach by electricity and gas distribution companies to the problem of meeting future energy demand:

(a) they shall establish procedures whereby electricity and gas distribution companies shall periodically present integrated resource plans to the competent authorities to be determined by the Member States. The integrated resource plan shall evaluate all energy-resource alternatives (including demand side management) on a single economic basis;

(b) they shall examine whether the economic energy efficiency measures identified by the integrated resource plan are being undertaken;

(c) they shall review existing legislation in this area to ensure that mechanisms are established which permit electricity and gas distribution companies to recover expenditure on energy-efficient programmes offered to consumers. Such mechanisms should ensure that distribution companies which undertake demand-side management programmes are not net revenue losers;

(d) they shall encourage electricity and gas distribution companies to:

- set up comprehensive information programmes aimed at informing consumers on rational energy efficiency choices,

- provide, where necessary, incentives to consumers to carry out energy efficiency investments;

- set up demand-side management programmes targeted at low income energy consumers who spend a disproportionate amount of their disposable income on energy,

- invest in energy efficiency through the creation of subsidiaries offering third party financing facilities to consumers, or support the efforts of existing third party financing companies,

(e) they shall promote the integration of options regarding demand side management into capacity tendering procedures in the distribution sector, where such procedures exist.

Article 3

Member States shall cooperate with the Commission in carrying out reviews, every two years for eight years commencing in 1997, of the results of the measures taken on the basis of this Directive.

Article 4

1. Member States shall bring into force the provisions necessary to comply with this Directive not later than 1 January 1997. They shall immediately inform the Commission of these measures.

When Member States adopt these provisions, these shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The procedure for such reference be adopted by Member States.

2. Member States shall communicate to the Commission the texts of the provisions of national law which they adopt in the field governed by this Directive.

Article 5

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities.

Article 6

This Directive is addressed to the Member States.

(1) 'A View to the Future`, Commission of the European Communities, September 1992.

(2) OJ No L 167, 9. 7. 1993, p. 31.

(3) OJ No C 20, 22. 1. 1985, p. 1.

(4) OJ No C 241, 25. 9. 1986, p. 1.

(1) OJ No L 157, 9. 6. 1989, p. 32.

(2) OJ No L 307, 8. 11. 1991, p. 34.

(3) OJ No L 126, 18. 5. 1994, p. 1.