Opinion of the Economic and Social Committee on the 'Communication from the Commission - An overall view of energy policy and actions` (98/C 19/10)

On 30 April 1997 the Commission decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the above-mentioned communication.

The Section for Energy, Nuclear Questions and Research, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 19 September 1997. The rapporteur was Mr Lerios.

At its 349th plenary session (meeting of 29 October), the Economic and Social Committee adopted the following opinion by 113 votes, with three abstentions.

1. Introduction

1.1. The Committee has given its views many times on the various Community programmes and activities in the energy sector.

- Investment projects of interest to the Community in the petroleum, natural gas and electricity sectors ();

- European energy charter ();

- Supply of crude oil and petroleum products ();

- Internal market in electricity and natural gas ();

- Internal market in electricity and natural gas ();

- Trans-European energy networks ();

- Community energy policy ();

- Energy and economic and social cohesion ();

- Thermie II ();

- Green paper 'For a European Union energy policy` ();

- Energy charter treaty ();

- SAVE II ();

- Gas supply ();

- Public service obligations in the internal energy market ();

- Illustrative nuclear programme ();

- Cooperation around agreed Community energy objectives ();

- Green Paper on energy for the future: renewable sources of energy ().

1.1.1. Most recently the Commission's proposal concerning the organization of cooperation around agreed Community energy objectives () sets out objectives and policy guidelines covering, in particular, security of supply, competitiveness, environmental protection, external energy relations and the promotion of energy efficiency and renewables; these guidelines have been periodically endorsed by the Member States and also by the ESC.

1.1.2. In order to facilitate the achievement of these common energy objectives, the Commission states that it is essential to strengthen cooperation and coordination between the Member States within an organized framework so as to ensure that national and Community energy policies are compatible with these objectives, as mentioned in the ESC's previous opinions.

1.2. The present communication is a first response to the call by the Council and European Parliament to establish a framework for existing Community programmes and activities in the energy sector and to make progress on rationalizing and coordinating them.

1.3. The Commission's request for the Committee to issue an opinion on this communication is in line with the new philosophy of involving the ESC from the outset in new Commission initiatives.

2. Gist of the Commission document

2.1. The communication aims at giving complete information on EU actions in the field of energy and the corresponding financial means. It deals, on the one hand, with energy cooperation which includes cooperation with the Member States and with interested parties and, on the other hand, with Community actions concentrated on four objectives:

- security of supply and international energy cooperation,

- integrating energy markets to enhance competitiveness,

- promoting sustainable development in the field of energy, and

- promoting energy research and technological development.

3. General comments

3.1. The Committee welcomes the Communication from the Commission, which further develops the direction taken by the green and white papers on EU energy policy, and by its Communication on cooperation around agreed Community energy objectives.

3.2. Except in the case of the white paper, the Committee was able to express satisfaction with the content of all the above documents. In its opinion on the green paper on an EU energy policy, the Committee asked the Commission to clarify which instruments directly or indirectly influence Community energy policy, and the powers and responsibilities concerned.

3.3. The Committee welcomes the new Communication as going some way towards satisfying this request. However, it still has some reservations, which are outlined below.

3.4. Various Member States had proposed including an energy chapter in the Amsterdam Treaty. Because this could not be achieved, the Committee believes that a coherent and coordinated common energy policy should be drawn up at European Union level, using the existing acquis communautaire. This idea has been systematically approved by the Committee since the adoption of its own-initiative opinion on a Community energy policy, which proposed that the common policy be built upon cooperation between national energy policies and the freedom to choose primary energy sources.

3.5. As long as the Treaty lacks an energy chapter, therefore, it will be necessary to balance and coordinate the use of the various Treaty articles which have a bearing on the development of energy policy. Unless these articles are interpreted in their widest sense, there is a risk that the structure of the common energy policy will simply be based on that of numerous other Community policies. This could mean an energy policy which places insufficient emphasis on security of supply, which does not strengthen competitiveness, which is incompatible with environmental protection, or which does not respond to the needs of the Union's citizens in terms of safety and quality of service.

3.6. The Committee considers that the desire for transparency demonstrated by the Commission in this Communication is an important first step towards a new proposal which could lead to a new approach to the management of all energy policy actions contained in EU programmes.

3.7. Many of the proposed initiatives have been included in previous Communications, and contain neither new elements nor additional substance. However, the Commission's attempt to provide an overall view of these, as per the title of the Communication, should be recognized.

3.8. For this reason, the Committee is of the opinion that this Communication can only be a starting point, and that it should be completed by a further Communication in which each of the areas mentioned (security of supply and international energy cooperation, integrating energy markets, promoting sustainable development in the energy field and promoting energy research and technological development) is examined in more detail and in more specific terms. The document should specify the added value of direct Community action or coordination of national activities, the legal base to be used, follow-up and monitoring mechanisms, financial implications, respective priority, and the timetable for the individual initiatives.

3.9. It should also be pointed out that the European Union is at a watershed in its development. The introduction of the single currency, the deepening of the single market, the effort to maintain economic and social cohesion among its citizens, advances in the social field, the possible accession of new Member States, and the growing demands of the citizens of the Union in many areas - all these are challenges in which the energy sector must always have a role. It must be emphasized that anyone of these new values or commitments that the European Union hopes to achieve could be jeopardized by even a short-lived energy shortage, excessive increases in the cost of imported energy, or a decline in the quality and efficiency of the supply of oil, electricity or natural gas to which European consumers have been accustomed for decades. It is vital, therefore, that the energy sector - and hence energy policy - are able to rise to these challenges and meet the demands of European citizens.

3.10. This Communication could thus serve as the basis for a real programme for the energy sector. The Economic and Social Committee could be consulted again and have another chance to make a positive contribution to the document. Finally, this programme for energy policy could be included in the discussions on Agenda 2000, which will include debates on the challenges and opportunities opened up by EU enlargement, the overall financial outlook and the new operating framework for the institutions. This would also mean that the European Commission's Directorate-General for energy would have a substantial work programme covering several years, which would consolidate the role of the energy sector in a European Union which is geographically larger, economically more competitive and socially more cohesive.

Brussels, 29 October 1997.

The President of the Economic and Social Committee

Tom JENKINS

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