22.1.76 Official  Journal  of the  European  Communities No C 15/21 
of research  to date  on biology  and  health  protection 
could  be condensed  into  a comprehensible  form  and 
disseminated  more  widely.  This  seems  necessary  in 
order  to bring  home  to the  general  public  in the 
Community  that  the basic  Community  standards  on 
which  the  individual  Member  States'  legislation  for 
radiation  protection  are  based,  provide  adequate 
protection  against  the dangers  of ionizing  radiations. 
It would  therefore  welcome  if the Council  would,  as 
it has  already  done  at the Committee's  request  in its 
resolution  of 22  July  1975  on the  technological 
problems  of nuclear  safety  (*) make  the  necessary 
minor  additions  to the  proposed  programme  'to 
ensure  that  the  public  is given  the  best  possible 
information  about  both  national  and  Community 
action  in the field  of nuclear  safety'. 
1.9. Just  as one  of the  aims  of the  Community's 
work  is to foster  cooperation  and  avoid  unnecessary 
(*) OJ No C 185,  14. 8. 1975,  p. 1. duplication,  so  too  is it important  that  the 
Community  plays  an active  part  in international 
cooperation  at all levels,  through  bodies  such  as the 
United  Nations'  Scientific  Committee  on Effects  of 
Atomic  Radiations  (UNSCEAR),  the  International 
Atomic  Energy  Agency  (IAEA),  the  World  Health 
Organization  (WHO),  the  Food  and  Agricultural 
Organization  (FAO),  the  International  Commission 
on Radiological  Protection  • (1CRP)  and  the 
International  Commission  on Radiation  Units  and 
Measurements  (1CRU). 
1.10.  The  Committee  equally  endorses  the second 
part of the programme  dealing  with  the possible  use 
of nuclear  techniques  in agriculture.  It believes  that 
realization  of these  techniques  would  offer  significant 
specific  benefits  to  the  agricultural  sector  in 
controlling  noxious  insects,  in improving  crop 
species,  in optimizing  crop  yields  and  quality  and  in 
raising  efficiency  in  beef  production.  These 
techniques  would  meet  both  the  objectives  of 
maximizing  the  efficiency  of food  production  and 
that of minimizing  the  use  of pesticides,  antibiotics 
and other  products  of questionable  effect  on human 
health. 
Done  at Brussels,  29 October  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  communication  and  proposals  from  the Commission  to the  Council 
entitled  'Towards  a New  Energy  Policy  Strategy  for the European  Community' 
The text  referred  to the Committee  has  not yet been  published  in the Official  Journal 
of the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
In accordance  with  the  third  paragraph  of Article  20 of the  Rules  of Procedure,  the 
Bureau  of the Committee  decided  on 29 October  1974  to deliver  an additional  opinion 
on the abovementioned  communication. 
No C 15/22 Official  Journal  of the  European  Communities 22. 1. 76 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
134th  plenary  session,  held  in Brussels  on 29 and  30 October  1975. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to Article  20, third  paragraph,  of its 
Rules  of Procedure, 
Having  regard  to its opinion  on the communication 
from  the  Commission  to  the  Council  entitled 
'Towards  a New  Energy  Policy  Strategy  for  the 
Community'  of 18 July  1974  (*), 
Having  regard  to the decision  taken  by its Bureau  on 
29 October  1974,  instructing  the Section  for Energy 
and Nuclear  Questions  to draw  up an opinion  and 
report  on the matter, 
Having  regard  to the communication  to the Council 
entitled  'Community  Energy  Policy  Objectives  for 
1985',  which  sets  out  the  revised  objectives  of the 
new strategy,  and  also  contains  a number  of detailed 
proposals  on  how  the  new  policy  is to  be 
implemented, 
Having  regard  to the  opinion  issued  by the Section 
for Energy  and  Nuclear  Questions  at its meeting  on 3 
October  1975, 
Having  regard  to the  report  submitted  by  the 
Rapporteur,  Mr Delourme,  at the said  meeting, 
Having  regard  to the discussions  at its 134th  plenary 
session  held  on 29 and  30 October  1975  (meeting  of 
29 October), 
Whereas  a coherent  and  effective  common  energy 
policy  should  be implemented, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by 64 votes  in favour,  19 against  and  17 abstentions: 
1. The  objectives  for 1985 
1.1. In  its  communication  'Community  Energy 
Policy:  Objectives  for  1985',  the  Commission 
(!) OJ  No C 125,  16. 10. 1974,  p. 58. published  the  revised  objectives  of its new  strategy. 
The Committee  notes  that  these  objectives,  which  it 
broadly  approved  in its opinion  of 18 July  1974,  were 
endorsed,  with  some  changes,  by  the  Council 
resolutions  of 17 December  1974  and  13 February 
1975. 
2. Research  and  development 
2.1. As  regards  the  energy  research  and 
development  policy  to be pursued  under  the  new 
strategy,  the Committee  would  refer  to its opinion  of 
30 January  1975  on the  communication  entitled 
'Energy  for Europe:  Research  and  Development'  (2). 
The Committee  would  also  refer  to its opinion  of 29 
May  1975  (3) on the  Programme  of Research  and 
Development  Action  in the Field  of Energy  (4). The 
Council  adopted  this  programme  by its Decision  of 
22 August  1975  (5). 
3. Joint  projects  — hydrocarbons 
3.1. Mention  should  likewise  be made  of the 
Committee's  opinion  of 27 February  1975  (6) on the 
proposed  Council  Regulation  concerning  support  to 
common  projects  for  hydrocarbon  exploration  (7), 
which  forms  part  of the new  strategy. 
4. Rational  energy  use 
4.1. In  a communication  entitled  'A Community 
Action  Programme  and  a Draft  Council  Resolution 
on the  Rational  Utilization  of Energy',  the  Com-
mission  sets  out  a plan  for  rationalizing  the  Com-
munity's  energy  use.  The  target  is a saving  of 15 % in 
the internal  energy  consumption  currently  predicted 
for 1985  on the basis  of estimates  made  in 1972.  The 
Committee  notes  that  this  objective  of a 15 % saving 
(2) OJ  No C 62, 15. 3. 1975,  p. 3. 
(3) OJ  No C 263,  17. 11. 1975,  p. 30. 
(4) OJ  No C 54, 6. 3. 1975,  p. 26. 
(5) OJ  No L 231,  2. 9. 1975,  p. 1. 
(«) OJ No C 108,  15. 5. 1975,  p. 55. 
C) OJ No C 18, 25. 1. 1975,  p. 3. 
22. 1. 76 Official  Journal  of the  European  Communities No C 15/23 
is based  on a programme  which  'aims  solely  to 
reduce  energy  input  while  providing  the  consumer 
with  the same  level  of energy  output'.  This  approach 
is in line  with  Point  6 of the Council  resolution  of 17 
September  1974,  which  calls  for a 'reduction  of the 
rate of growth  of internal  energy  consumption  by 
measures  for  using  energy  rationally  and 
economically  without  jeopardizing  social  and 
economic-growth  objectives'. the Commission  are less  likely  to have  direct  adverse 
effects  than  measures  falling  into  category  (1) or (4). 
But the  more  the  reduction  in consumption  takes 
place  at the  expense  of imported  energy,  the  less 
adverse  the repercussions  — and,  in particular,  any 
multiplier  effect  — on the Community  economy.  The 
beneficial  and  adverse  effects  of each  proposed 
measure  should,  therefore,  be considered  — even 
though  it is not  always  possible  to quantify  such 
effects  with  any  great  degree  of accuracy. 
4.2. The  Committee  supports  the  fundamental 
objective  of the  programme  for rational  energy  use. 
The programme  can  do  much  to  reduce  the 
Community's  energy  dependence  and  improve  its 
balance  of  payments,  provided  the  aim  in 
negotiations  with  the producer  countries  is to further 
the interests  of both  sides.  But  the Committee  notes 
that the  measures  taken  so far  have  been  badly 
coordinated  and  often  narrowly  national.  Their 
usefulness  has  been  severely  curtailed  by  their 
piecemeal  character.  What  is more,  the  Committee 
considers  that,  given  the  present  structure  of the 
energy  market,  it is illusory  and  inefficient  simply  to 
lay down  objectives  — however  valid  they  may  be — 
and rely  on the  goodwill  and  public  spiritedness  of 
private  operators  or national  authorities  to achieve 
them. 
4.3. Even  if the abovementioned  problems  become 
less acute,  a programme  for  rational  energy  use  is 
essential  if the  world's  energy  reserves  are  to be 
conserved  in the long  term. 4.5. The  communication  does  not  state  how  the 
Commission  arrived  at the proposed  target  of a 15 % 
saving  by 1985.  The  Committee  would  like  to know 
how much  to the cutback  will  result  from  constraints 
and incentives  introduced  by public  authorities,  and 
how much  will  come  about  as a natural  consumer 
reaction  to high  energy  prices.  To judge  from  the 
figures  for the period  since  October  1973,  the initial 
impact  of prices  on energy  consumption  has  been 
bigger  than  expected;  it is, however,  impossible  to be 
definitive  on  this  point  without  a thorough 
evaluation  of savings  already  achieved  in respect  of 
energy  in general,  and  petroleum  products  in 
particular.  In assessing  the  'price  effect',  account 
should  be taken  of:  (a) certain  changes  in energy 
consumption  patterns;  (b)  the  exceptional  mildness 
of the  last  two  winters;  (c) the reduction  in energy 
consumption  caused  by the economic  recession  in the 
Community. 
4.4. However,  the  Committee  considers  that  the 
energy  conservation  measures  taken  must  not have  an 
adverse  impact  on  employment  or other  social 
conditions.  In Annex  I to the  abovementioned 
communication,  the Commission  divides  energy-con-
servation  measures  into  four  categories: 4.6. Energy-conservation  programmes  should, 
therefore,  operate  through  both  the price  mechanism 
and intervention  by public  authorities.  Prices  must 
not be the sole  regulator. 
(1) 'Demand  restraint  of useful  energy'; 
(2) 'Reduction  of non-useful  energy  consumption'; 
(3) 'Improvement  of technical  efficiency'; 
(4) 'Adequate  allotment  of energy  resources'. 
The Commission  points  out  that  only  categories  (2) 
and (3)  come  under  the  heading  'rational  use  of 
energy'.  The  proposed  22 measures  thus  fall  into 
category  (2) or category  (3).  The  Committee  accepts 
that the category  (2) and  (3) measures  proposed  by 4.7. In  so far as savings  achieved  to date  have  been 
brought  about  by energy-price  rises,  the Committee 
considers  it unlikely  that  world  energy  prices  will 
ever again  rise  as much  as they  have  in the period 
since  1973.  Steps  must  thus  be taken  to ensure:  (a) 
that once  savings  have  been  achieved  they  are 
maintained,  even  if the cost  of energy  decreases;  (b) 
that consumers  do not  disregard  high  prices,  and 
gradually  revert  to excessive  and  often  irrational 
energy  consumption  (wastage).  The  Committee, 
therefore,  considers  that  future  energy-conservation 
policy  must  rely  basically  on intervention  by the 
public  authorities,  and  on action  taken  by public 
utilities  and  firms. 
No C 15/24 Official  Journal  of the European  Communities 22. 1. 76 
4.8. With  regard  to  the  way  in which  the 
programme  is to be implemented,  the  Committee 
does  not  intend  to comment  on  the  individual 
measures  suggested  by the Commission.  It considers 
that,  broadly  speaking,  these  cover  the  areas  on 
which  endeavours  should  be  concentrated.  The 
Committee  wishes,  however,  to make  a number  of 
observations. 
4.9. The  sectoral  approach  of the programme  has 
the advantage  of simplicity,  but  it may  have  one 
disadvantage,  in that  it diverts  attention  from 
important  long-term  problems  which  are  essentially 
of an inter-sectoral  nature.  For  instance,  improving 
urban  transport  and  traffic  flows  will  not,  in the long 
run, lead  to more  rational  energy  use,  if the result  is 
to increase  the  polarization  of  residential  and 
commercial  areas  so  that  people  will  have  to 
consume  more  energy  because  they  commute  over 
long  distances.  Similarly,  a policy  for improving  the 
insulation  of buildings  cannot  be really  effective  unless 
the public  authorities  back  it up with  appropriate 
housing  policies,  and  by  prescribing  construction 
standards.  To take  another  example,  the  combined 
production  of  heat  and  power  by  electricity 
producers  entails  more  than  installing  special 
equipment  to link  power  stations  with  factories  and 
residential  areas;  more  fundamental  is the  overall 
question  of location. 
4.10.  The  Committee  also  considers  that  detailed 
'energy  accounting'  studies  must  be carried  out  for 
the proposed  measures,  as it is necessary  to make 
sure that  any  energy  'invested'  in implementing 
certain  of the  measures  can  be 'amortized'  over  a 
reasonable  period  of time.  Consideration  should  also 
be given  to criteria  other  than  energy  consumption. 
Such  additional  criteria  are,  for example,  social  costs 
and environmental  aspects. 
4.11.  The  Committee  feels  it is important  that  the 
measures  taken  by  public  authorities  should  not 
entail  administrative  costs  out of all proportion  to the 
anticipated  savings.  It is also  very  important  that  the 
public  sector,  which  is a major  consumer  of energy, 
should  set an example  by using  energy  rationally.  In 
its opinion  on  European  Union,  The  Committee 
proposed  that  European  Union  should  encourage  the 
setting  up of public  and  semi-public  companies, 
incorporated  under  European  Community  law,  in the 
field  of energy  research  and  exploitation. 
4.12.  Financial  and  fiscal  measures  are  an 
important  means  of promoting  rational  energy  use. The Committee  suggests  that  these  should, 
preferably,  take  the form  of subsidized  interest  rates 
for investments,  reduced  VAT  rates  and  accelerated 
depreciation  arrangements  for equipment  installed  to 
improve  energy  efficiency.  Such  measures  should 
preferably  be embodied  in a selective  programme 
worked  out  and  supervised  by the interested  parties 
(public  authorities  and  socio-economic  groupings).  If 
the abovementioned  incentives  lead  to savings  of 
energy,  they  should,  in part,  be  reflected  in a 
reduction  in the prices  paid  by all consumers. 
4.13.  In  the  field  of public  information  — even 
at Community  level  — care  should  be taken  to 
ensure  that  adequate  instructions  for  optimum  use 
are supplied  with  both  industrial  and  household 
energy-using  appliances.  Specialized  regional 
information  services  should  be set up to ensure  — 
through  close  collaboration  between  public 
authorities,  public  undertakings  and  the private  sector 
— that  consumers  are as fully  informed  as possible 
about  methods  and  techniques  for achieving  the most 
rational  use of energy. 
4.14.  Finally,  the  measures  introduced  must  be 
applied  in  a manner  which  does  not  distort 
competition.  In particular,  it is necessary  to define  the 
respective  duties  of the  Community  and  national 
bodies  as regards  the implementation  and  supervision 
of these  measures. 
5. Hydrocarbons  policy 
5.1. On  the  basis  of  a  Commission 
communication  entitled  'A Community  Policy  in the 
Hydrocarbons  Sector  and  Draft  Council  Resolution', 
the Council  adopted  on  13  February  1975  a 
resolution  in which  it outlined  its  views  on  a 
Community  hydrocarbons  policy. 
5.2. The  Committee  considers  that  the  means  by 
which  the  policy  is to  be  implemented  are 
insufficient,  both  in scope  and  in effectiveness,  to give 
the Community  the minimum  authority  necessary  to 
implement  a common  policy  which  would  ensure 
secure,  supplies  of energy  under  satisfactory  economic 
conditions.  It considers  that  the  Commission's 
approach  is too  liberal,  the position  taken  being  no 
more  than  the  lowest  common  denominator  of the 
policies  of the Member  States,  and  the impact  of the 
proposed  measures  being  too often  reduced  by escape 
22.1.  76 Official  Journal  of the  European  Communities No C 15/25 
clauses.  In addition,  such  a policy  involves  a tendency 
towards  alignment  on the highest  prices. 
5.3. The  Committee  points  out  that  in  its 
communication  of  27  November  1974,  the 
Commission  makes  no reference  to the  relationship 
between  Community  policy  and  the  policy  of the 
International  Energy  Agency,  which  was  established 
on 15 November  1974.  On  10 January  1975,  the 
Commission  sent  the  Council  a communication  on 
this matter.  This  document  is, however,  concerned 
only  with  coordination  of the  positions  adopted  by 
the Member  States  in the Agency. 
5/4. The  Committee  recognizes  that  the  problems 
of world  energy  supplies  and  prices,  and  the problem 
of hydrocarbon  supplies  in particular,  cannot  be 
solved  at Community  level.  Account  must  be taken  of 
the respective  positions  of the major  importers  (EEC, 
Japan),  the  major  consumer  and  producer  countries 
(USA,  USSR),  the  exporting  countries  (OPEC)  and 
the developing  countries.  Within  such  an overall 
framework,  however,  it is essential  that  the  Member 
States  should  adopt  a coherent,  unified  approach  and 
thus enable  the  Community  to  take  a stand 
conforming  to its interests.  Only  if this  is done  can 
the Community  hope  to exercise  an influence  on the 
international  energy  market  commensurate  with  its 
economic  strength,  its energy  consumption  and  the 
importance  of the  latter  for  the  maintenance  of its 
economic  and  social  well-being.  To  this  end  the 
Member  States  should,  as  a  step  towards 
establishment  of a common  policy,  equip  themselves 
with  the  intervention  powers  needed  for  the 
simultaneous  implementation  of coordinated  energy 
policies.  This  coordination  will  be essential  during 
the transitional  period  prior  to the  introduction  of 
effective  machinery  for regulating  the Community  oil 
market.  Such  machinery  is the  only  way  to resolve 
the long-term  problems. 
5.5. The  Committee  is particularly  concerned 
about  the  fixing  of the  prices  of crude  oil supplies 
within  the  Community.  While  the  Committee 
endorses  the  aim  of guaranteeing  the  investments 
made  by  the  Community  in order  to reduce  its 
dependence  on  imported  oil,  it urges  that  any 
reference  price  (minimum  safeguard  price)  should  be 
markedly  below  the current  price  of imported  energy. 
It would  prefer  a support  policy  that  guarantees  the 
continued  development  of alternative  sources.  The 
Committee  also  considers  that  the  Member  States 
and the  Community  itself  should  speak  with  one 
voice.  Furthermore,  a spirit  of cooperation  and  a readiness  to engage  in dialogue  should  be  the 
hallmark  of  their  relations  with  the  oil  and 
commodity  producing  countries. 
5.6. The  Committee  considers  that  a high  reference 
price  would  prevent  the Community  from  reaping  the 
benefit  of  any  downward  pressure  exerted  by 
political,  economic  or technological  developments  on 
the price  of external  oil  supplies.  It must  be 
remembered  that  the Community  will  have  to import 
oil for some  considerable  time  to come. 
5.7. In  this  basically  gene/al  document,  the 
Committee  has  no further  comments  to make  on 
prices  or taxation.  It would,  however,  welcome  the 
opportunity  to examine  these  matters  in more  detail 
at a later  date. 
5.8. The  Committee  notes  that  the  Commission 
has produced  only  one  policy  document  on  the 
hydrocarbon  sector  and  has  not  considered  it 
necessary  to deal  specifically  with  the  question  of 
natural  gas.  Natural  gas  already  accounts  for  a 
considerable  proportion  of the  Community's  energy 
supplies  and  will,  by  1985,  be  providing 
approximately  20 % of the Community's  total  energy 
requirements.  It should,  therefore,  be dealt  with 
specifically  and  more  thoroughly,  particularly  from 
the point  of  view  of  price  policy,  policy  on 
investment  in the distribution  network,  import  policy, 
supply  contracts  and  policy  on apportionment  among 
the various  users.  As the Commission  has  not  made 
any concrete  proposals  on  these  matters,  the 
Committee  does  not  intend  to comment  on them  in 
detail  in this  opinion.  The  Committee  would  merely 
refer  to its previous  opinions  on this  subject  (*) (2), 
whilst  reserving  the right  to return  to the matter  at a 
later  date. 
6. Measures  in the event  of oil supply  difficulties 
6.1. In  a document  entitled  'Proposal  for a Council 
Decision  on the  Measures  to be Taken  in the Event 
of Oil  Supply  Difficulties'  the  Commission  has 
submitted  the following  proposals: 
(i) The  proposal  for  a Council  Decision  on  the 
setting  of a Community  target  for a reduction  in 
the consumption  of primary  forms  of energy  in 
the event  of difficulties  in the supply  of crude  oil 
or petroleum  products; 
H OJ  No C 125,  16. 10. 1974. 
(2) OJ No C 37, 1. 4. 1973. 
No C 15/26 Official  Journal  of the  European  Communities 22.1.  76 
(ii) The  proposal  for  a Council  Decision  on 
intra-Community  trade  in  crude  oil  and 
petroleum  products  in cases  of supply  difficulties. various  countries'  economies  are  affected  as 
uniformly  as possible'.  It will  at least  be necessary  to 
give a quantitative  definition  of a 'slight  shortfall'. 
6.2. With  regard  to the  proposal  for  a Council 
Decision  on the setting  of a Community  target  for a 
reduction  in the  consumption  of primary  forms  of 
energy  in the  event  of difficulties  in the  supply  of 
crude  oil  or petroleum  products,  the  Committee 
notes  that  adoption  of these  measures  was  one  of the 
targets  of the  'new  strategy',  but  that  the  measures 
have  to a certain  extent  been  taken  over  by the 
International  Energy  Agency,  which  was  established 
on 15 November  1974. 
6.3. The  Committee  observes  that,  for  the  time 
being,  the  International  Energy  Agency  has,  to a 
certain  extent,  assumed  prime  responsibility  for  the 
measures  to be taken  in the event  of a crisis.  In the 
Committee's  view,  however,  the  bulk  of  the 
responsibility  for such  measures  should  rest  primarily 
with  the Community  and  any  action  by the Agency 
should  be  marginal  and  complementary  to 
Community  measures.  Accordingly,  the  Community 
should  adopt  the necessary  internal  measures,  where 
appropriate,  on the basis  of those  Agency  proposals 
which  it approves.  It is particularly  necessary  that  the 
Community  should  take  such  action  until  such  time 
as the  Agency  becomes  a genuinely  effective 
organization  ratified  by the countries  which  belong  to 
it. The  Committee  also  stresses  that  the  Member 
States  must,  as far as possible,  act collectively  within 
the Agency  and  in  other  negotiations  with 
non-member  countries.  It urges  the  Commission  to 
formulate  policies  in this  sector  which  will  meet  the 
approval  of all the Member  States. 
6.4. The  Committee  approves  the general  principle 
that in times  of crisis,  the Community  should  aim  at 
a reduction  in  its  energy  consumption.  The 
Committee  also  supports  the  Commission's  view-
point  that  such  a reduction  must  not  only  cover 
crude  oil and  petroleum  products,  but  must  apply 
to all forms  of primary  energy.  The  Committee  has 
its doubts,  however,  about  the Commission  proposal 
that in the event  of a slight  shortfall  in supply,  an 
exception  should  be  made  to this  principle  by 
reducing  only  the  consumption  of  petroleum 
products.  Such  action  would  put  the  responsibility 
on the  countries  which  are  most  dependent  on oil 
and which  would  consequently  be hardest  hit by the 
interruption  of  supplies.  This  could  jeopardize 
achievement  of the  objective  referred  to in the 
explanatory  memorandum,  namely  'to  coordinate 
national  measures  to restrict  consumption  so that  the 6.5. The  Committee  approves  the  measures 
suggested  in the proposal  for a Council  Decision  on 
intra-Community  trade  in crude  oil and  petroleum 
products  in the  event  of supply  difficulties.  At the 
same  time,  it considers  that  the  question  of 
movements  of crude  oil  and  petroleum  products 
within  the Community  cannot  be viewed  in isolation 
from  price  considerations.  For  this  reason,  parallel 
steps  should  be taken  to align  price  levels  and 
taxation  policies  in the  different  regions  of the 
Community.  While  the  Committee  feels  that 
everything  possible  should  be done  to promote  the 
free movement  of oil supplies  on the  Community 
market,  it considers  that  care  must  be taken  to avoid 
movements  precipitated  by differences  in price  levels 
which  could  jeopardize  the  supply  position  of 
particular  regions. 
6.6. The  quantitative  control  mechanisms 
(mechanisms  for allocating  available  oil) proposed  by 
the International  Energy  Agency  are  intended  to 
prevent,  to some  extent,  such  undesirable  movements 
taking  place  in the event  of supply  difficulties.  The 
Committee  believes  that  the  Community  should 
concentrate  on  supplementing  these  quantitative 
controls  by  appropriate  price  harmonization 
measures.  The  Community  must,  therefore,  set up a 
system  of its  own,  identical  to that  which  the 
majority  of the Member  States  have  already  endorsed 
within  the Agency. 
6.7. As  regards  supervision  arrangements,  the 
Committee  believes  that  a system  of automatic 
authorization  must  be introduced  when  the  supply 
situation  is normal,  so that  the Community  will  have 
an information  tool  which  will  enable  it to 
implement  specific  controls  when  supply  difficulties 
arise. 
7. Guidelines  for the electricity  sector 
7.1. In  its communication  to the  Council  entitled 
'Guidelines  for  the  Electricity  Sector  in  the 
Community;  the Role  of Electricity  in a New  Energy 
Policy  Strategy',  the Commission  sets  out  guidelines 
which  would  raise  the  contribution  of primary 
electricity  to total  energy  production  from  4 % in 
1973  to 19  % in 1985,  and  the  share  of total 
electricity  production  in final  demand  from  25 % to 
22.1.  76 Official  Journal  of the  European  Communities No C 15/27 
35 %. The  Committee  notes  that  the target  of raising 
the share  of electricity  in final  energy  demand  from 
25 % to 35 % means  that  policy  in this  sector  is a 
key element  of the 'new  strategy'.  On the production 
side,  electricity  offers  scope  for replacing  oil by more 
secure  conventional  sources,  and  for  expanding  the 
use of nuclear  energy.  Although  the  development  of 
nuclear  energy  will  have  to be re-assessed  around 
1980,  its use will  make  it possible  to stabilize  to some 
extent  the share  of fossil  fuels  in energy  consumption, 
pending  the  introduction  of new  energy  sources. 
Thus,  nuclear  energy  is more  than  an alternative;  to a 
certain  degree  it will  make  us less  dependent  on 
imported  energy.  Independence  in the  energy  sector 
can also  be furthered  by optimum  diversification  of 
our energy  supplies. development,  like  that  of other  sources,  must  be 
compatible  with  public  safety  and  protection  of the 
environment.  In addition,  all the economic  and  social 
implications  of the  use  of nuclear  energy  should  be 
studied  carefully. 
7.4. If  the  Community  is to meet  the  nuclear 
energy  target  set by the  Council  for  1985,  viz.,  an 
installed  capacity  of 160  GWe  or if possible  200 
GWe,  satisfactory  solutions  will  have  to be found  for 
a number  of problems.  In this  respect,  the Committee 
has a number  of comments  to make  on  the 
Commission's  communication. 
7.2. To  ensure  optimum  use  of indigenous  energy 
resources  in the Community,  electricity  policy  must 
be complemented  by a solid  fuels  policy  and,  in 
particular,  must  be consistent  with  the 'Medium-term 
Guidelines  for Coal  1975-1985',  which  are discussed 
further  on.  Electricity  producers  should  be 
encouraged  to install  plant  capable  of using  hard 
coal,  lignite  or  peat,  and  to  convert  existing 
single-fuel  installations  so  that  they  have  this 
capability.  But,  when  the  time  comes  to embark  on 
such  investments,  and  electricity  producers  have  to 
decide  whether  to install  a coal-burning  capability  in 
their  power  stations  (whether  single-fuel  or 
dual-fired),  they  are  inclined  to make  their  decision 
contingent  on  obtaining  guarantees  of  regular 
supplies  of these  fuels  at economically  acceptable 
prices.  The  Committee  agrees  with  the principle  that 
the limited  oil and  natural  gas  resources  may,  in the 
short  run,  continue  to be used  in existing  power 
stations,  but  should,  where  possible,  be reserved  for 
other  applications  which  give  a better  efficiency.  The 
Committee  feels  that  the Commission's  communica-
tion perhaps  does  not pay  sufficient  attention  to the 
possible  contribution  which  other  energy  sources 
could  make  to electricity  generation.  The  objective 
approved  by  the  Council  is to  increase  the 
contribution  from  these  sources  to 45 M toe by 1985. 
Although  the possibilities  for expanding  hydroelectric 
production  are  indeed  limited,  attention  should  be 
given  to the  development  and  use  of geothermal 
energv  and  energy  produced  from  organic  wastes. 
Together  with  manufactured  gases,  these  sources 
could  make  a minor  but  significant  contribution 
towards  the Community's  energy  supply. 7.5. Under  modern  production  conditions,  the cost 
per kilowatt-hour  of nuclear  electricity  can  be lower 
than that  of electricity  generated  in oil-  or coal-fired 
stations.  But  it is important  to take  account  of the 
additional  costs  entailed  by  measures  needed  to 
protect  the  general  public  and  the  environment 
(decommissioning  of nuclear  power  stations).  An 
overall  balance  sheet  should  therefore  be drawn  up 
of the total  cost  to society.  More  attention  must  also 
be given  to the siting  of nuclear  installations  and  the 
need  to reconcile  rational  energy  use (inter  alia  by the 
recovery  of residual  heat)  with  essential  safety 
requirements. 
7.6. Electricity  is a convenient  form  of energy,  and 
its consumption  causes  little  pollution.  Nevertheless, 
it must  not  be forgotten  that  in this  sector  efficiency 
in the conversion  of primary  to final  energy  is very 
low — approximately  27 %. Accordingly,  steps  must 
be taken  to ensure  that  increased  recourse  to 
electricity  is compatible  with  the objective  of rational 
energy  use.  A programme  to promote  the  use  of 
electricity  must,  therefore,  be  matched  by 
corresponding  efforts  to improve  efficiency,  both  in 
the upstream  part  (turbines)  and  the  downstream 
part (heat  pumps,  combined  heat/power  production) 
of the  steam  cycle.  For  this  reason,  the  Committee 
considers  that  it is necessary  to step  up research  and 
development  work  on efficiency,  not  only  in the 
electricity  sector,  but also  in the other  areas  of energy 
production.  The  improvement  of  accumulators 
should  also  be studied  with  a view  to solving  the 
problems  of peak  periods  and  of energy  production 
in general. 
7.3. The  Committee  believes  that  it is necessary  to 
go more  deeply  into  the  basis  of the  nuclear 
development  policv.  The  Committee  has  already 
pointed  out  that,  in the  present  situation,  nuclear 
energy  constitutes  an alternative  to oil,  but  that  its 7.7. The  Commission  does  not  deal  in sufficient 
detail  with  the question  of the better  siting  of future 
power  stations,  in order  to restrict  energy  losses  in 
the transmission  of electricity.  Economical  methods 
No C 15/28 Official  Journal  of the  European  Communities 22.1.  76 
must  be sought  which  enable  such  losses  to be 
reduced  in the short  term,  pending  the development 
of longer-term  solutions  such  as superconductor 
power  lines  and  the use  of hydrogen.  In addition,  a 
study  should  be  made  of  the  possibility  of 
implementing  a  Community  programme  on 
cooperation  between  electricity  producers  and 
distributors  in locating  future  power  stations  and  in 
planning  distribution  networks,  in order  to minimize 
electricity  losses  and  achieve  better  utilization  at 
European  level.  Furthermore,  the  public  should  be 
fully  informed  about  the  programme  for  locating 
future  power  stations.  Before  any  power  station  is 
built  in  a  frontier  area,  there  must  be 
Community-level  consultations  between  the  nations 
and regions  concerned. 
7.8. As  regards  industry  generating  its  own 
electricity,  the Committee  is of the opinion  that  the 
more  or less  restrictive  provisions  introduced  by 
some  Member  States  should  be reviewed  to allow 
industries  to choose  the  overall  most  economical 
form  of electricity  supply.  This  would  be in line  both 
with  a policy  of rational  energy  use  and  with  the 
competition  principles  which  govern  the  common 
market. 
7.9. As  regards  prices  policy,  a fundamental  point 
must  be clarified  in connection  with  the development 
of the  use  of electricity.  The  Commission  does  not 
show  clearly  how  it intends  to encourage  demand 
and to maintain  the  general  downward  trend  of 
electricity  prices.  The  Committee  wonders  whether 
the Commission's  forecasts  on the general  downward 
trend  in electricity  prices  are realistic.  The  Committee 
fears  that  insufficient  account  is taken  of the real  cost 
of nuclear  development,  and  considers  that  it has not 
been  proved  that  'compared  to other  energy  sources, 
electricity  will  be competitive  in many  applications'. 
7.10.  No  steps  should  be  taken  to encourage 
increased  consumption  of  electricity  based  on 
imported  energy,  especially  imported  oil. The  market 
must  be left sufficient  flexibility  to enable  it to absorb 
nuclear-based  electricity  as it becomes  available. 
7.11.  Paragraphs  91 to 96 of the  communication 
raise  the important  issues  of investment  and  finance 
in the  electricity  sector.  Once  again,  a fundamental 
choice  has to be made  as to the extent  to which  new 
investments  are to be financed  by the consumer,  by 
the taxpayer  or  by  the  capital  market.  The 
Committee  would  opt  for a system  which  would,  as closely  as  possible,  reflect  'true  prices'.  The 
Committee  would  go so far as to say that  fuel  costs, 
operating  costs  and  amortization  must,  in principle, 
be borne  by  the  consumer  through  the  price 
mechanism.  But,  it believes  development  costs  must 
be borne  by the  utilities  and/or  by public  incentive 
measures  (for  example,  loans  at reduced  interest 
rates)  as appropriate.  Where  development  costs  are 
covered  by the public  authorities,  the latter  must  be 
provided  with  the necessary  means  of supervision  to 
ensure  that  funds  are  being  used  as efficiently  as 
possible.  If development  costs  had  to be financed  in 
full by the  electricity  sector,  this  would  make  it 
almost  impossible  for new  energy  technologies  with 
high development  costs  to penetrate  the market.  This 
could  run  counter  to the overall  Community  interest. 
Consequently,  new  energy  technologies  must  be 
furthered  by the  action  and  support  of the  public 
authorities. 
8. Nuclear  fuels 
8.1. In  its communication  to the  Council  entitled 
'A Nuclear  Fuel  Supply  Policy  for the Community', 
the Commission  outlines  the policy  to be followed  in 
the coming  years. 
8.2. The  Committee  stresses  the  need  for  a 
vigilant,  far-sighted  supply  policy,  based  on 
appropriate  diversification  of supply  sources. 
8.3. On  26 June  1974,  the Committee  delivered  an 
opinion  (*), approving  the  communication  from  the 
Commission  to the Council  on the Implementation  of 
the Guidelines  and  Priority  Measures  for  a 
Community  Energy  Policy  — Promotion  of the use of 
Nuclear  Energy.  This  opinion  specifically  welcomed 
the plan  of action  to speed  up the  development  of 
nuclear  energy,  while  at the same  time  stressing  that, 
in any  such  programme,  prime  importance  had  to be 
given  to  public  health  and  safety  and  to 
environmental  protection. 
8.4. Since  then,  it has been  pointed  out  in various 
quarters  that  technological,  safety  and  environmental 
problems  still  persist  in certain  nuclear  engineering 
sectors.  In addition,  it is always  possible  that 
difficulties  may  arise  in  connection  with  the 
(4) OJ No C 116,  30. 9. 1974,  p. 26. 
22.1.  76 Official  Journal  of the  European  Communities No C 15/29 
reprocessing  of irradiated  fuels,  the final  storage  of 
radioactive  wastes,  and  the  availability  of fissile 
materials.  The  Committee  feels  that  these  problems, 
coupled  with  the  misgivings  which  certain  sectors  of 
the general  public  have  expressed  with  regard  to 
nuclear  power,  make  it necessary  to reconsider 
whether,  given  the scale  of the proposed  expansion  of 
nuclear  energy,  current  development  programmes  can 
provide  optimum  solutions.  In the  light  of these 
factors  and  recent  demand  trends,  the  Committee 
would  question  the  feasibility  of attaining  by 1985 
the target  figure  of 160  GWe  installed  nuclear 
capacity  and,  if possible,  200  GWe.  Given  current 
growth  prospects  and  even  if nuclear  power 
succeeded  in covering  all the  post-1985  increase  in 
energy  consumption,  the  target  of  1 000  GWe 
installed  nuclear  capacity  to  cover  50  % of 
Community  energy  requirements  by the  year  2000 
raises  even  more  problems.  In  view  of  these 
problems,  consideration  should  be  given  to the 
advisability  of the  nuclear  energy  programme  having 
such  disproportionate  priority  over  the  development 
of alternative  energy  sources. 
8.5. The  Committee  recognizes,  however,  that 
even  a scaled-down  or deferred  nuclear  programme 
will have  to be backed  up by an appropriate  policy 
on nuclear  fuels.  Subject  to certain  comments,  the 
Committee  therefore  supports  the  policy  outlined  by 
the Commission.  Nuclear-industry  policy  should 
encourage  specialization  concerted  at European  level, 
in order  to ensure  better  use  of available  capacity, 
and prevent  the emergence  of monopolies. prospecting,  production  and  associated  infrastructure 
development.  The  Committee  considers  that  it could 
also cover  the  installation  of enrichment  plants  in 
producer  countries. 
8.7. The  Commission  feels  that  in the  medium-
and long-term,  expansion  of nuclear  programmes  is 
among  the  most  effective  of the  proposed  ways  of 
reducing  energy  dependence.  The  Committee 
considers,  however,  that  the  scale  of nuclear  energy 
use should  be consonant  with  real  needs  and  the 
possibilities  offered  by other  energy  sources. 
8.8. As  regards  the  nuclear-fuels  supply  policy 
proposed  by  the  Commission  — which  is almost 
exclusively  based  on uranium  — the  problem  is of a 
still more  transitory  nature,  since  the development  of 
plutonium-fed  fast  breeder  reactors  will,  in the  later 
stages  of nuclear  development,  reduce  the  demand 
for uranium  fuels.  It is therefore  necessary  that  the 
Community's  programme  should  be geared  not  to a 
steadily  increasing  demand  for uranium,  but  rather  to 
a demand  which  will  increase  rapidly  to a peak, 
remain  constant  for  a while  and  then  decline 
gradually.  The  Community  must  pursue  a balanced, 
long-term  policy  which  will:  (a)  allow  accurate 
forecasting  and  thus  preclude  the  installation  of 
excess  enrichment  capacity  that  will  be needed  during 
the period  of peak  demand  only;  (b)  provide  the 
proper  basis  for requisite  investment. 
8.6. The  Commission's  claim  that  a 'nuclear 
programme  ... is the  most  effective  way  of limiting 
the Community's  dependence  on imports'  must  be 
qualified  by the  fact  that  the  Community's  known 
resources  of natural  uranium  are  insufficient  to meet 
future  requirements  and  that  the  Community  will, 
therefore,  have  to seek  a large  part  of its supplies 
from  non-member  countries.  In order  to make  certain 
that the  problems  experienced  in oil supplies  do not 
reappear  in the  case  of uranium,  the  Community 
must  ensure  that  its supplies  are  guaranteed  on the 
basis  of economic  conditions  satisfactory  to both 
sides,  that  is to say as far as possible  on the basis  of a 
mutual  balance  of  advantages.  The  Committee 
supports  the  Commission's  view  that,  in return  for 
guaranteed  supplies,  the Community  should  consider 
the scope  for cooperation  ventures  which  fit in with 
the producing  countries'  development  priorities.  Such 
cooperation  could  include  financial  participation  in 8.9. The  Committee  has  serious  reservations  about 
the development  of advanced  enrichment  technology. 
The full-scale  development  of  two  existing 
technologies  — gaseous  diffusion  (EURODIF)  and 
ultra-centrifuge  (URENCO  CENTEC)  —  is  a 
sufficiently  ambitious  target.  The  Community  should 
not devote  further  resources  to other  technologies, 
given  the  fact  that  the  market  for  enriched  uranium 
may be  saturated  by  the  time  that  such  other 
technologies  are  fully  developed.  With  regard  to 
natural  uranium,  there  is a case  for  developing 
technology  for the extraction  of uranium  from  rivers 
or sea-water,  to the  stage  where  a rapid  changeover 
to industrial  production  could,  if necessary,  be made 
within  a few  years  in the  event  of natural  uranium 
supplies  being  jeopardized. 
No C 15/30 Official  Journal  of the European  Communities 22.1.  76 
8.10.  The  Committee  supports  the Commission's 
aim — which  the  Council  has  already  broadly 
approved  — of a fully-integrated  Community  market 
for nuclear  fuels.  The  'new  strategy'  objective  of 
rational  energy  use  should  extend  equally  to this 
area,  so that  a solution  to the  different  fuel 
requirements  of the various  reactors  can be sought  on 
the basis  of policy  for the management  of the fissile 
materials  available  in the  Community  which  is 
designed  to minimize  processing,  handling,  transport 
and reprocessing  costs. 
8.11.  The  Committee  considers  that  this 
responsibility  should  be assigned  to the  Euratom 
Supply  Agency.  The  Agency  was  established  by the 
Treaty  of Rome  and  has  the  dual  advantages  of 
already  being  in existence  and  of having  operating 
experience.  Its  powers  should  be  extended 
accordingly.  The  Committee  also  believes  that,  in 
addition  to its current  role  as a clearing-house  for 
information  on fuel  supplies  and  requirements,  the 
Agency  must  also  enforce  a 'code  of conduct'  for 
contracts  between  suppliers  and  users.  In addition, 
the Agency  should  be made  responsible  for working 
out the  supply  programme  to be followed  in the 
event  of shortages. 
9. Medium-term  guidelines  for coal 
9.1. The  Commission  has reacted  in line  with  the 
objectives  already  mapped  out  in its 'new  strategy' 
proposals,  to the dramatic  turn  on the world  energy 
market.  In its communication  to the Council  entitled: 
'Medium-term  Guidelines  for Coal  1975-1985'  (1), the 
Commission  states  that  coal  will  play  an important 
part in electricity  production  and  in the steel  industry 
for some  considerable  time  to come. 
9.2. The  Committee  notes  that  the Commission's 
chief  concern  is to maintain  coal  production  in the 
Community  and  ensure  that  indigenous  or imported 
coal makes  a maximum  contribution  to meeting 
overall  energy  demand.  This  is a complete  reversal  of 
the policy  pursued  in recent  years  of phasing  coal  out 
and is, of course,  due  to the  upheaval  which  has 
taken  place  on the energy  market.  The  new  approach 
is, ' however,  fairly  modest  and  realistic  both  as 
H OJ  No C 22, 30. 1. 1975,  p. 1. regards  domestic  production,  which  is simply  to be 
maintained  at its present  level,  and  as regards 
imports,  which  are  to be increased  by 20 million 
metric  tons.  The  Committee  endorses  these  objectives 
but looks  on  them  as minimum  targets.  The 
Committee  is also  in favour  of increasing  lignite  and 
peat production. 
9.3. The  Committee  notes  that  uniform 
development  in all coalfields  is out of the question, 
because  of the  differences  which  exist  between 
Member  States  as regards  the  extent,  quality  and 
geological  conditions  of coal  deposits. 
9.4. In  certain  fields  a reduction  — albeit  slower 
— in coal  output  is inevitable  in the longer  term.  The 
necessary  steps  should  be taken  so that  this  reduction 
can be effected  in the most  rational  manner  possible. 
Production  in other  coalfields  should  be stepped  up. 
9.5. This  can  be done  provided  that  the  mining 
undertakings,  whose  cooperation  is essential,  have 
reliable  basic  energy  data  at their  disposal.  These 
data,  which  are to be elicited  by long-term  measures 
adopted  at the right  time,  should  enable  the mining 
undertakings  to: 
(i) plan  and  finance  the necessary  investments;  the 
mining  industry's  investment  requirements  in the 
area of  production  and  in  certain  cases 
development,  are  not  particularly  high  in 
comparison  with  the  overall  investments 
essential  in the  energy  sector;  the  mining 
industry  nonetheless  needs  support  from  the 
State  in order  to ensure  this  financing.  The  use 
of the public  funds  granted  should,  of course,  be 
properly  supervised; 
(ii) pursue  a long-term  manpower  policy  consistent 
with the one outlined  by the Commission; 
(iii) achieve  optimum  production  by concentrating 
on the most  efficient  and most  profitable  plants, 
while  exhausting  all  other  possibilities  for 
increasing  their  productivity  and  for opening  up 
new shafts  where  necessary. 
9.6. As  regards  the  objectives  for  the 
coal-consuming  industries,  the Committee  considers 
that a reliable  and  at all times  adequate  supply  of 
coking  coals  and  coke  for the steel  industry  is of 
particular  importance  for the whole  economy  of the 
Community.  About  85 % of the Community's  coking 
coal requirements  are at present  covered  by domestic 
22. 1. 76 Official  Journal  of the  European  Communities No C 15/31 
production.  It is in the interests  of the Community  to 
ensure  that  the  increasing  coking  coal  requirements 
will be covered  to the  fullest  possible  extent  from 
internal  sources. 
9.7. In  the sphere  of electricity  production,  coal  is 
an important  factor  in the  diversification  of fuel 
supplies  for conventional  thermal  power  stations  and 
in the security  of such  supplies.  The  increase  in the 
utilization  of coal  for electricity  production  sought  by 
the Commission  — 30 million  tee by 1985  — can 
therefore  be considered  a reasonable  goal.  If nuclear 
energy  does  not  meet  expectations,  or gets  behind 
schedule,  steps  should  be  taken  to  boost  the 
contribution  of coal  to electricity  production  in order 
to reduce  the  use  of oil and  of natural  gas,  if this 
exceeds  a tolerable  level.  The  Committee  considers 
that the  whole  Community  should  adopt  the 
measures  already  taken  by certain  Member  States  to 
encourage  the  use  of coal  in conventional  thermal 
power  stations. 
9.8. The  role  of coal  in supplies  to domestic 
consumers  remains  important  and  represents  an 
additional  factor  of security. particularly  necessary  to offer  conditions  which 
attract  a young  labour  force  into  the  industry,  to 
secure  good  conditions  for migrant  workers  engaged 
in the sector,  to continue  research  on improvement  of 
health  protection,  and  to step  up housing  aids  and 
reception  facilities  in general.  For such  a policy  to be 
successful,  it is vital  to pursue  a long-term  policy 
geared  to guaranteed  outlets.  Coal  policy  also  covers 
lignite  mining  and  peat-cutting,  and  special  attention 
should  be devoted  to manpower  problems  in these 
industries. 
9.12.  On  imports  policy,  the  Committee  notes 
that it will  not be possible  to meet  the Community's 
increased  coal  requirements  (approximately  300 
million  tee by 1985)  from  domestic  production.  This 
means  that  the  Community  will  have  to import 
approximately  50 million  tee in 1985. 
9.13.  Notwithstanding  any  measures  taken  to 
develop  domestic  coal  production  and  make  it 
competitive,  it is essential  to secure  long-term  supply 
guarantees  for coking  coal,  steam  coal,  etc.,  from  the 
producer  countries. 
9.9. Other  important  possibilities  for  coal 
utilization  will  result  in the  longer  term  from  the 
introduction  of new  technologies  in the  sphere  of 
coal gasification  and  liquefaction.  Consequently,  the 
Committee  welcomes  the  Commission's  proposal  to 
give much  greater  support  than  previously  to 
research  and  development  work  on  liquefaction, 
gasification  and  other  aspects  of coal. 9.14.  Under  the ECSC  Treaty,  the Governments  of 
the Member  States  retain  responsibility  for 
commercial  policy  for coal.  The  approach  adopted  in 
this area  has  varied  from  country  to country, 
depending  on the  energy  supply  pattern.  If the new 
Community  energy  policy  strategy  is  to  be 
implemented,  commercial  policies  for  all  energy 
sources  must  be aligned  as closely  as possible. 
9.10.  In  general,  the Committee  considers  that  the 
considerable  aids  which  will  continue  to be granted 
from  public  funds,  and  also  prices  policy  which  is to 
aim at strengthening  the financial  capacity  of the coal 
industry,  will  have  to be very  carefully  supervised  to 
ensure  that  they  serve  the  general  Community 
interest,  rather  than  private  or national  interest. 
9.11.  The  Committee  would  lay  particular 
emphasis  on the fact  that  coal  production  targets  can 
only be met  if they  are  backed  by an adequate 
manpower  policy.  It  therefore  supports  the 
Commission's  suggestion  for  'an action  programme 
to recruit,  train  and  retain  a permanent,  stable  and 
progressive  labour  force  and  management'.  It is 9.15.  The  coal  import  policy  pursued  within  this 
framework  will  have  to be accommodated  to the 
different  situations  within  the Community. 
9.16.  Such  a policy  must  resolve  the  delicate 
problem  of reconciling  conflicting  interests;  on the 
one hand  Community  producers  can  reasonably 
expect  guaranteed  outlets  in recognition  of the efforts 
they are called  on to make,  while  on the other  hand 
purchasers  are  equally  entitled  to an assurance  that 
any long-term  commitments  which  they  may  have 
vis-a-vis  non-member  countries  will  not  be put  at 
risk. A stockpiling  policy  must  be an important 
element  in this  essential  coordination. 
No C 15/32 Official  Journal  of the  European  Communities 22.1.  76 
9.17.  This  balance  cannot  be achieved  without  an 
accurate  picture  of  the  Community's  probable 
requirements,  the  resources  at its disposal  and  the 
tonnages  to be procured  from  non-member  countries. 
To obtain  such  a picture,  the  Commission  will 
require  information  on  the  current  situation,  the 
probable  future  trend  and  the  needs  of the  parties 
concerned. 
9.18.  ECSC  action  in the  fields  of price  policy, 
importing,  storage  and  marketing  must  be reinforced 
if the  economic  and  social  interests  of the  European Community  are to be coordinated  in the best  possible 
way within  the overall  framework  of coal  policy. 
10. Coordination  of policies 
10.1.  The  Committee  considers  that  all 
Community  energy  guidelines,  recommendations  and 
decisions  will  have  to be reconsidered  when  the 
Fourth  Medium-term  Policy  Programme  is drawn  up. 
Future  development  possibilities,  as laid  down  in this 
programme,  will  call  for  a common  energy  policy 
that is consistent  with  the  economic  and  social 
objectives  proposed. 
Done  at Brussels,  29 October  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
The following  amendments  were  rejected  during  the discussion: 
Item  4.7 
Amend  the first  sentence  to read: 
'In so far as savings  achieved  to date  have  been  brought  about  by energy-price  rises,  the 
Committee  considers  it vital  that  there  should  be no more  world  price  increases.  This 
presupposes  genuine  talks  on setting  the international  monetary  system  to rights,  and  a 
vigorous  drive  against  inflation'. 
Voting: 
For: 17, against:  24, abstentions:  15. 
The original  Section  opinion  was  replaced  by an amendment.  The  amendment  was  adopted  by 
40 votes  to 27 with  9 abstentions. 
Item  5.2 
The Committee  believes  that  the Commission  is correct  in adopting  a cautious  and  flexible 
approach.  The  Committee  considers  that  the strategy  outlined  by the Commission  is a step  in 
the right  direction.  This  strategy  is a first  step  towards  a common  policy  for hydrocarbons 
which,  the Committee  believes,  can  only  be achieved  on the  basis  of gradually  increasing 
cooperation  between  the Member  States,  the oil companies  and the producer  countries. 
The following  amendments,  which  had  been  submitted  in accordance  with  the  rules  of 
procedure,  were  rejected. 
22.1.  76 Official  Journal  of the  European  Communities No C 15/33 
Item  5.4 
Eighth  line  — delete  the adjective  'unified'. 
Voting: 
Rejected.  There  were  five  votes  for and  one  abstention. 
Item  5.4 
Amend  the last  sentence  to read: 
'This  coordination  is a vital  first  step  towards  economic  cooperation  of all the  Member 
States'. 
Voting: 
Rejected.  There  were  six votes  for and  two  abstentions. 
Item  5.5 
Replace  item  5.5 by the following,  which  also  includes  item  5.6: 
'The  Community  should  reduce  its dependence  on imported  oil.  The  Committee  therefore 
stresses  the link  between  the cost  of imported  oil and  the cost  of alternative  energy  sources, 
and endorses  the aim  of guaranteeing  the investments  which  the Community  will  make  to 
develop  such  sources.  As regards  possible  ways  of guaranteeing  the  investments,  the 
Community  would  prefer  a support  policy  guaranteeing  the  continuing  development  of 
alternative  sources  — rather  than  a minimum  safeguard  price  fixed  at a level  which  would 
make  it an effective  means  of protecting  high-cost  alternative  sources.  The  Committee 
considers  that  a high  minimum  safeguard  price  would  prevent  the  Community  from 
reaping  the  benefit  of any  downward  pressure  exerted  by  political,  economic  or 
technological  developments  on the  price  of external  oil supplies.  It must  be remembered 
that the  Community  will  have  to import  oil for  some  considerable  time  to come.  The 
Committee  also  stresses  that  to help  bring  this  about  more  easily,  a spirit  of cooperation 
and a readiness  to engage  in dialogue  should  be the hallmark  of relations  between,  on the 
one hand,  the  Member  States  and  the  Community  speaking  with  one  voice,  and  on the 
other  hand  the oil and  commodity-producing  countries'. 
Voting: 
For: 17, against:  56, abstentions:  12. 
Reasons  for submitting  the  amendment 
The text  in item  5.5 does  noc  make  the Committee's  position  sufficiently  clear  on this  matter  of 
great  importance. 
Item  5.6  should  be transferred  to item  5.5,  because  it explains  the  reasons  for preferring  a 
system  for protecting  alternative  supplies  other  than  by setting  a minimum  guaranteed  price. 
Item  5.5 
Amend  the last  sentence  to read: 
'Furthermore,  their  attitude  should  be consistent  and  guided  by a readiness  to cooperate 
and engage  in a dialogue  with  the oil and  commodity-producing  countries'. 
Voting: 
Rejected.  There  were  four  votes  in favour. 
No C 15/34 Official  Journal  of the  European  Communities 22. 1. 76 
Item  6.3 
(a) Delete  the second  sentence:  'In the Section's  view  ... Community  measures'. 
(b) Delete  the word  'accordingly'  in the third  sentence. 
(c) Delete  the fourth  sentence:  'It is particularly  . .. which  belong  to it'. 
Voting: 
For: 21, against:  63, abstentions:  15. 
Reasons  for submitting  the  amendment 
The text  of the  opinion  is anything  but  consistent.  The  first  sentence  states  that  the 
International  Energy  Agency  has  to a certain  extent  assumed  prime  responsibility  for  the 
measures  to be taken  in the event  of a crisis.  The  second  sentence  however,  states  that  the bulk 
of the  responsibility  for such  measures  should  rest  primarily  with  the  Community.  The  third 
sentence  comes  to the  conclusion  that  the  Community  should  adopt  the  necessary  internal 
measures  on  the  basis  of Agency  proposals.  The  fourth  sentence  contradicts  this  by 
recommending  that  the Community  should  take  action  until  such  time  as the Agency  becomes  a 
genuinely  effective  body. 
The purpose  of the  proposed  deletions  is to make  it clear  that  in the  event  of oil supply 
difficulties  (title  of Chapter  6) the major  consumer  countries  should  pursue  a policy  which  takes 
account  of each  other's  problems.  The  International  Energy  Agency  is the appropriate  forum  for 
this. 
Item  6.4 
After  the first  sentence,  replace  by: 
'The  Committee,  however,  does  not agree  with  the Commission's  view  that  consumption  of 
all other  primary  energy  sources  should  be reduced  in the  event  of an oil shortage.  The 
Committee  realizes  that  the  aim  of this  proposal  is to make  sure  that  there  is a certain 
balance  in the economic  activities  of the Member  States  and  that  goods  circulate  freely.  But 
it feels  that  a matter  which  is so important  to the  economic  and  social  life  of the 
Community  and  the Member  States  cannot  be dealt  with  by a Council  Decision  formulated 
in terms  as bald  as those  proposed  by the Commission.  For  the abovementioned  interests  to 
be safeguarded  in the  event  of an oil shortage,  the  Community  should  have  a system  of 
sharing  out  all available  supplies  as far as possible,  bearing  in mind  what  sources  of oil 
would  be available  and  the  possibilities  of making  greater  use  of other  supplies  both  inside 
and outside  the EEC'. 
Voting: 
For: 9, against:  51, abstentions:  23. 
Reason  for submitting  the  amendment 
The amendment  is self-explanatory. 
Item  6.5 
In the seventh  line,  delete  the word  'levels'.  In the eighth  line,  add  the words  'as far as possible' 
at the end  of the sentence. 
Voting: 
For: 7, against:  65, abstentions:  9. 
22.1.  76 Official  Journal  of the  European  Communities No C 15/35 
Reason  for submitting  the  amendment 
Because  of the  differences  between  economic  conditions  and  the  structures  in the  Member 
States,  complete  alignment  of price  levels  in the Community  is neither  possible  nor  desirable. 
But national  price  and  taxation  policies  should  be aligned,  as differences  in this  field  have  a 
particularly  disruptive  effect  on intra-Community  trade  in oil. 
Item  8.4 
From  the third  sentence  on (The  Committee  feels  that...)  amend  to read: 
'These  problems  are at the root  of the  misgivings  which  some  sections  of public  opinion 
have  expressed  with  regard  to nuclear  power.  As a result,  more  should  be done  to inform 
the public  that  a high  degree  of nuclear  safety  has already  been  achieved  and  is constantly 
being  improved.  The  Commission's  target  of 160  GWe,  and  if possible  200  GWe,  by 1985  is 
highly  desirable  from  the aspect  of reducing  the Community's  dependence  on imported  oil 
(especially  from  the  Middle  East).  Safety  Development  Programmes  should  therefore  be 
implemented  on as large  a scale  as possible.  Even  though  the  development  of alternative 
forms  of energy  — such  as wind  energy,  solar  energy  and  geothermal  energy  — must  be 
given  high  priority;  it must  be recognized  that  nuclear  power  will  for many  years  remain 
the only  viable  alternative  to fossil  fuels.  The  abovementioned  forms  of energy  must  for the 
moment  be regarded  as subsidiary  sources  only.  The  Committee  feels  however  that  it is still 
premature  to specify  a nuclear  capacity  of 1000  GWe  by  the  year  2000.  Energy 
conservation,  combined  with  alternative  energy  sources,  may  make  it possible  to reduce  this 
figure'. 
Voting: 
For: 43, against:  43, abstentions:  11. 
Reasons  for submitting  the  amendment 
The present  wording  does  not lay sufficient  emphasis  on the central  role  of nuclear  power,  as an 
alternative  to fossil  fuels.  Provided  sufficient  research  funds  are  made  available  it is 
technologically  possible  for safety  to keep  pace  with  nuclear  development.  The  Commission's 
objective  should  therefore  be supported,  not disputed. 
Item  8.11  of the  additional  opinion  was  replaced  by an amendment.  The  amendment  was 
adopted  by 45 votes  to 38 with  11 abstentions. 
Item  8.11 
It should  be examined  forthwith  to what  extent  the existing  problems  of the entire  nuclear  fuel 
cycle  — problems  that  vary  greatly  from  one  sector  of the  cycle  to another  — can  be solved 
more  quickly,  if possible  at Community  level,  by greater  use  of Community  bodies  or by the 
application  of Community  instruments  (joint  undertakings).  In particular,  thought  should  be 
given  to the role,  if necessary  an expanded  one,  to be played  here  by the Supply  Agency,  which 
the Council  of Energy  Ministers,  in its resolution  of 13 February  1975,  recognized  as being  of 
vital importance  in the  implementation  of the  common  energy  policy.  At all events,  proven 
structures  and  procedures  should  be maintained.  All  potential  solutions  should  be examined 
with  an eye to the formulation  of a supply  policy  in the nuclear  fuel  sector. 
The following  amendments  were  rejected: 
Item  8.11 
Substitute  the following: 
'The  Committee  believes  that  the world-wide  nuclear  construction  programmes  are liable  to 
make  the supply  of fuels  (natural  uranium  in particular)  highly  inelastic,  since  other  fuels 
cannot  be substituted.  A probable  result  would  be  rising  prices,  which  would  be 
unresponsive  to any  future  increase  in the flexibility  of the general  energy  market. 
No C 15/36 Official  Journal  of the  European  Communities 22. 1. 76 
A Community  nuclear  fuel  supply  policy  is necessary  in order  to avoid,  or at least  contain, 
these  consequences.  The  policy  should  involve  industrial  measures  by  Community 
undertakings  throughout  the  entire  fuel  cycle,  with  the  aim  of increasing  supply.  Under 
such  a policy,  it would  also  be necessary  to set up an administrative  system  which  in a 
situation  where  the laws  of the  market  are  inoperative,  would  allow  the  Community  to 
pursue  the following  mandatory  objectives: 
(a) to obtain  the optimum  supply  conditions  by strengthening  the Community's  power  to 
negotiate  with  producers; 
(b) to protect  Community  investments  in uranium  production  and  processing; 
(c) to secure  non-discriminatory  supply  conditions  for users. 
These  objectives  can be pursued  through  the Energy  Supply  Agency  established  under  the 
EAEC  Treaty.  The  resolution  adopted  by the Council  of Energy  Ministers  on 13 February 
1975  recognized  that  the  Agency  would  be an essential  instrument  for  implementing  a 
common  policy. 
But the Council's  resolution  affirms  that  for efficiency  reasons  it will  be necessary  to revise 
the supply  provisions  of Chapter  VI of the  Euratom  Treaty,  which  defines  the powers  of 
the Agency.  The  Committee  considers  that  such  a revision  is a highly  important  matter, 
and asks  that  it be consulted  on any  relevant  proposals  put forward  by the Commission. 
Immediate  consideration  should  therefore  be given  to the  extent  to which  the  existing 
problems  of the entire  nuclear  fuel  cycle  — problems  that  vary  greatly  from  one  sector  of 
the fuel  cycle  to another  — can  be solved  more  quickly,  if possible  at Community  level,  by 
greater  use  of Community  bodies  or by the application  of Community  instruments  (joint 
undertakings). 
For instance,  should  the European  recycling  industry  be structured  in the same  way  as the 
enrichment  industry,  or should  it be supported  by the Member  States  and  the Community 
as a service  for a European  nuclear  energy  industry?'. 
Voting: 
For: 17, against:  48, abstentions:  20. 
Reasons  for submitting  the  amendment 
The amendment  is intended  to underscore  the  significance  of supply  policy  — which  is not 
dealt  with  adequately  in the  draft  opinion  — and  the  need  to determine  the  structures  best 
suited  to the situation  obtaining  in the Community. 
The second  part  of the amendment  refers  to this  aspect  and  also  to the fuel  cycle,  which  is of 
course  a separate  issue.  The  first  sentence  of item  8.11  is also  reproduced  in the second  part  of 
the opinion. 
After  item  8.11 
Add the following  item  8.12: 
'The  entire  nuclear  energy  cycle  should  be placed  under  the  direct  control  of the  public 
authorities.  This  applies  to ore  mining  in the  Community,  the  transportation  of fissile 
material,  the  erection  of power  stations,  retention  of and  respect  for  the  public  sector 
already  in operation,  energy  production  and  the  storage  and  processing  of radioactive 
waste'. 
22.1.  76 Official  Journal  of the  European  Communities No C 15/37 
Voting: 
For: 42, against:  42, abstentions:  11. 
Reasons  for submitting  the  amendment 
Energy  independence  is fundamental  to European  economic  and  political  independence.  The 
public  interest  must  be the  key  factor  in deciding  whether  to use  nuclear  energy.  Current 
profitability  cannot  be the  sole  criterion.  Energy  policy  is, moreover,  fundamental  to several 
other  issues  of direct  relevance  to Member  States'  policies  and  the  role  of the  European 
Community.  These  issues  include: 
— relations  between  oil-exporting  nations,  Fourth  World  nations  and  industrialized  nations, 
— definition  and  implementation  of a type  of growth  — no longer  based  on cheap  energy  — 
which  not only  maintains  and  develops  social  progress  but also  reduces  social  inequalities, 
— preservation  of the supremacy  of political  power  over  multi-nationals  and  national  economic 
interest  groups. 
Finally,  the safety  of workers  employed  in the nuclear  sector,  the safety  of the public  at large, 
and environmental  problems  must  receive  constant  specific  attention.  Direct  public  control  of 
the entire  nuclear  cycle  is warranted  for all the above  reasons.