A4-0268/96

Proposal for a Council Directive to introduce rational planning techniques in the electricity and gas distribution sectors (COM(95)0369 - C4-0030/96 - 95/0208(SYN))

The proposal was approved with the following amendments:

(Amendment 1)

Title

>Original text>

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

>Text following EP vote>

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

(Amendment 2)

Preamble, introduction and 1st citation

>Original text>

THE COUNCIL OF THE EUROPEAN UNION

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

>Text following EP vote>

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty establishing the European Community, and in particular Article 100a thereof,

(Amendment 3)

3rd citation

>Original text>

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

>Text following EP vote>

Acting in accordance with the procedure laid down in Article 189b of the Treaty,

(Amendment 4)

Recital 2

>Original text>

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;

>Text following EP vote>

Whereas Article 100a(3) of the Treaty stipulates that concerning health, safety, environmental protection and consumer protection, the Commission will take as a base a high level of protection; whereas the power generation industry is responsible for 30% and the natural gas sector for 18% of the CO2 emissions in the Community;

(Amendment 5)

Recital 4

>Original text>

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 the 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;

>Text following EP vote>

Whereas, given the Commission proposals for an Internal Energy Market, the introduction of rational planning techniques in the gas and electricity distribution sectors cannot be satisfactorily implemented at the level of the Member States; and whereas, in pursuance of Article 100a 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;

(Amendment 6)

Recital 4a (new)

>Text following EP vote>

Whereas the Commission's White Paper 'Growth, Competitiveness, Employment. The Challenges and Ways Forward into the 21st Century¨(COM(93)0700) has emphasised the urgent need to improve European competitiveness;

(Amendment 7)

Recital 4b (new)

>Text following EP vote>

Whereas the Commission's White Paper 'An Energy Policy for the European Union¨ (COM(95)0682) states that import dependency, currently close to half of gross consumption, could move towards three-quarters by 2020;

(Amendment 8)

Recital 6

>Original text>

Whereas in its resolution of 16 September 1986, 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;

>Text following EP vote>

Whereas in its resolution of 16 September 1986, the Council adopted for the Community the objective of achieving a more rational use of energy through improved energy efficiency, and of improving the efficiency of final demand by at least 20% by 1995; and whereas this target has not been achieved and so requires greater efforts and effectiveness by legislative action;

(Amendment 9)

Recital 8

>Original text>

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;

>Text following EP vote>

Whereas it is essential, to promote rational energy use and improve energy efficiency, to change the traditional role of gas and electricity distributors which is to sell energy products by endowing them with the role of providers of energy services;

(Amendment 10)

Recital 8a (new)

>Text following EP vote>

Whereas, to that end, the Member States must, on the one hand, perfect mechanisms making it possible to dissociate the volume of product sales (electricity or gas) and profits, and, on the other, bring about the separation of the different activities in the energy chain, viz. fuel supply, equipment supply, financing, production, transport and distribution of electricity;

(Amendment 11)

Recital 9

>Original text>

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

>Text following EP vote>

Whereas all classes of electricity and gas consumers, including residential consumers, must benefit directly from a more rational planning by the distribution utilities and whereas the cost must not be charged to the consumer;

(Amendment 12)

Article 1

>Original text>

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.

>Text following EP vote>

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 achieving a reduction in energy intensity of at least 1.5% per year. At the same time this directive will help to further reduce emissions beyond the year 2000.

This is to be partially achieved in the Community as a whole by further improving end-use efficiency in the electricity and gas distribution sectors through the introduction of more rational planning techniques. These techniques (which include Demand Side Management, the use of Combined Heat and Power and possibly Integrated Resource Planning) shall evaluate investment opportunities in energy supply and energy demand reduction on a single economic basis.

(Amendment 13)

Article 2

>Original text>

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:

>Text following EP vote>

Member States shall take the following steps to promote, through a framework of measures, the increased use of rational planning techniques by electricity and gas distribution/supply companies in their approach to the problem of meeting future energy services demand:

>Original text>

(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;

>Text following EP vote>

(a) they shall establish procedures whereby the competent authorities, to be determined by the Member States, with the co-operation of the electricity and gas distribution/supply companies and the co-operation of relevant consumer groups shall periodically publish plans which draw upon rational planning techniques. The plans shall evaluate energy resource alternatives on a single, pre-agreed economic basis;

>Original text>

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

>Text following EP vote>

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

>Original text>

(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;

>Text following EP vote>

(c) they shall review existing legislation in this area to ensure that mechanisms are established which:

(i) permit electricity and gas distribution/supply companies to sell energy- saving services to customers, to which end the separation of the different activities in the energy chain, viz. fuel supply, equipment supply, financing, production, transport and distribution of electricity, shall be progressively secured;

(ii) do not adversely affect the competitive position of electricity and gas in relation to other energy sources falling outside the scope of this Directive.

Such mechanisms should provide an incentive for distribution/supply companies, or other bodies, to utilise cost-effective rational planning techniques through decoupling profits from sales volume;

>Original text>

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

>Text following EP vote>

(d) they shall use regulatory mechanisms to ensure that electricity and gas distribution/supply companies:

- provide energy services which meet the needs for heat, light and power at the lowest cost to customers;

- ensure that customers have clearly identifiable costings of energy and energy services provision;

>Original text>

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

>Text following EP vote>

- set up comprehensive information programmes aimed at informing customers about rational energy efficiency services;

>Original text>

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

>Text following EP vote>

- provide, where necessary, incentives to customers to carry out energy efficiency investments such as building insulation;

>Original text>

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

>Text following EP vote>

- set up demand-side management programmes targeted at low income energy customers who spend a disproportionate amount of their disposable income on energy. Where such programmes might prove of limited economic value to distribution/supply companies it should be ensured that social costs are not paid for by the service providers, so that there are no cross- subsidies;

>Original text>

- 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,

>Text following EP vote>

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

>Text following EP vote>

(da) they shall encourage the establishment of branches offering consumers financing mechanisms through the intervention of third parties and support the efforts of existing companies operating that mode of financing;

>Original text>

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

>Text following EP vote>

(e) they shall make compulsory the integration of options regarding demand side management and bidding into capacity tendering/contracting procedures in the distribution/supply sector, where such procedures exist.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Directive to introduce rational planning techniques in the electricity and gas distribution sectors (COM(95)0369 - C4-0030/96 - 95/0208(SYN))

(Codecision procedure: first reading)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(95)0369 - 95/0208(SYN)) ((OJ C 1, 4.1.1996, p. 6.)),

- having been consulted by the Council pursuant to Articles 189c and 130s(1) of the EC Treaty (C4-0030/96),

- whereas the legal basis proposed is not appropriate and reference should be made to Articles 189b and 100a of the EC Treaty,

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Research, Technological Development and Energy and the opinions of the Committee on Economic and Monetary Affairs and Industrial Policy, the Committee on the Environment, Public Health and Consumer Protection and the Committee on Legal Affairs and Citizens' Rights, the last named on the legal basis (A4-0268/96),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Calls on the Council to incorporate Parliament's amendments in the common position that it adopts in accordance with Article 189b(2) of the EC Treaty;

4. Should the Council intend to depart from the text approved by Parliament, calls on the Council to notify Parliament and requests that the conciliation procedure be initiated;

5. Points out that the Commission is required to submit to Parliament any modification it may intend to make to its proposal as amended by Parliament;

6. Instructs its President to forward this opinion to the Council and Commission.