A4-0285/97

Resolution on the Commission communication to the Council and the European Parliament on the external dimension of trans-European energy networks (COM(97)0125 - C4-0167/97)

The European Parliament,

- having regard to the Commission communication (COM(97)0125 - C4-0167/97),

- having regard to:

. its resolution of 14 November 1996 on the communication from the Commission on the European Community gas supply and prospects ((OJ C 362, 2.12.1996, p. 291.)),

. its decision of 18 February 1997 on the proposal for a Council and Commission Decision on the conclusion by the European Communities of the Energy Charter Treaty and of the Energy Charter Protocol on energy efficiency and related environmental aspects ((OJ C 85, 17.3.1997, p. 34.)),

- having regard to its opinions of:

. 18 May 1995 on the proposal for a European Parliament and Council Decision laying down a series of guidelines on trans-European energy networks ((OJ C 151, 19.6.1995, p. 228.)),

. 12 November 1996 on the proposal for a European Parliament and Council Decision amending European Parliament and Council Decision No 1254/96/EC laying down a series of guidelines on trans-European energy networks ((OJ C 362, 2.12.1996, p. 29.)),

- having regard to the proposals concerning the funding of energy projects in the Mediterranean Basin which were put forward at the Cairo Conference in October 1995,

- having regard to the conclusions of the conference on gas, petroleum and electricity in the Balkans, which was held in Thessaloniki in October 1995,

- having regard to the declaration issued at the Euro-Mediterranean energy conference held in Madrid in November 1995,

- having regard to the conclusions of the European seminar on cross-border cooperation in the natural gas sector, which was held in Bratislava (Slovakia) in April 1996,

- having regard to the conclusions of the Euro-Mediterranean Conference of Energy Ministers, which was held in Trieste in June 1996,

- having regard to the report of the Committee on Research, Technological Development and Energy and the opinions of the Committee on Budgets and the Committee on External Economic Relations (A4-0285/97),

A. whereas European Parliament and Council Decision No 1254/96/EC of 5 June 1996 laying down a series of guidelines for trans-European energy networks ((OJ L 161, 29.6.1996, p. 147.)) provides for the development of electricity and natural gas transport network interconnections and interoperability with third countries in Europe and the Mediterranean region; whereas the terms of the Energy Charter Treaty must be observed in the case of interconnections involving signatory countries,

B. whereas the countries which attended the OSCE Summit in Budapest in 1996 have adopted the idea of setting up trans-European energy networks and whereas the terms of the 'structured dialogue' between the EU Energy Ministers and their counterparts in the countries of Central and Eastern Europe include trans-European networks as one of the stages of the negotiations leading to EU membership,

C. whereas, in promoting trans- and pan-European network interconnections, the Community must pursue, inter alia, the objective of increasing energy-supply security; whereas, for this purpose, consideration should be given to aspects relating to dependence on the outside world, the financial soundness of suppliers, particularly Russia, the growth in internal demand from the countries of Central and Eastern Europe, the unpredictable consequences of competition in those countries and future price trends,

D. whereas the Commission has announced the terms of reference for the European Union's enlargement (Agenda 2000) indicating priorities among applicant countries; whereas the energy sector is a key area for the political options available to the CCEE applicants for accession to reduce their dependence on Russia as far as fuel supply is concerned, to upgrade their energy systems in terms of efficiency, safety and environmental compatibility and to manage convergence towards EU energy market rules and standards; whereas the EU will need to support further structural development in the applicant CCEEs in the energy sector,

E. whereas Decision No 1254/96/EC does not contain guidelines relating to oil pipelines but whereas funding is available under the TACIS programme for the implementation of the initiative known as 'Interstate oil and gas to Europe' (INOGATE), which includes ECU 50 m in aid over five years to support the CIS's efforts to improve the management of oil and gas pipelines and to help identify projects for regional energy networks,

F. whereas the implications of the external dimension of the trans-European networks require that the specifications for projects which are eligible for consideration under the proposals included by the Commission in the annexes should contain all the information needed for them to be fully assessed as projects of mutual interest, especially if the Commission attempts, on the basis of such an assessment, to launch a legislative proposal on this subject which would lay down guidelines for pan-European electricity and natural gas networks,

G. whereas the increasing trend towards network interconnection at continental level somewhat reduces the importance attributed to the development of trans-European networks within the Euro-Mediterranean Association Agreement in the energy sector as a means of making better use of resources and meeting the growing demand for energy,

H. whereas the development of pan-European electricity and natural gas networks requires corresponding initiatives to be implemented at the same time in order to extend technical interconnections and harmonize the legislative provisions in the various countries concerned, and also calls for progressive economic integration,

1. Calls on the Commission to fulfil its commitment to provide information regarding the technical specification of the projects of mutual interest which feature in the annexes to the proposal and to provide more details of those projects, particularly as regards possible changes to projects identified in Decision 1254/96/EC as amended by Decision 1047/97/EC ((OJ L 152, 11.6.1997, p. 12.));

2. Calls on the Commission to regulate appropriately the use of the funds which permit application of Community programmes such as PHARE, TACIS, MEDA and SYNERGY, EIB loans or EIF loan guarantees, so as to give priority, with regard to regional oil pipeline networks, for example, to the promotion of interconnections, interoperability and the development of natural gas and electricity networks identified as being of mutual interest within the guidelines laid down in Decision 1254/96/EC, the criterion being an increase in the Community's security of supply under the quantity, quality and price conditions which most closely meet the requirements of economic policy;

3. Calls on the Commission to justify the balance of network interconnection and development priorities contained in the proposal, taking into account the emphasis placed on the requirements which have to be met under the Euro- Mediterranean Association Agreement in the energy sector, with particular reference to boosting cooperation between the EU and the Maghreb countries in order to optimize each party's network system;

4. Notes the shortcomings detected by the Commission in the electricity interconnections with the Mediterranean Basin and the electricity and natural gas interconnections with the Balkan and Baltic regions, the remedying of which would help to ensure that the various countries had equal access to the shared resources at a similar cost;

5. Considers that the development of pan-European natural gas networks increases the Community's dependence on one energy source, even though supplies are diversified, that this supply policy will in the long term lead to higher costs to the final user of what is an inherently expensive resource since long-distance transport costs can exceed actual production costs, and that, in certain cases, a virtual network for the supply of natural gas in liquid form represents a better proposition than a gas pipeline network;

6. Considers that the EU's negotiations with third countries in this area should be accompanied by measures which will prevent virtually monopolistic supremacy on the part of one or more suppliers, safeguard against political instability, particularly in territories crossed by long-distance networks, and increase the flexibility of supply contracts along with joint measures to counter crisis situations;

7. Calls on the Commission to look into the possibility of additional financial support for environmental protection measures for regional cooperation projects;

8. Calls on the Commission to identify the technical bottlenecks in the trans- and pan-European electricity network interconnections and to specify the action which has been taken to remove them, for example by completing the 'Baltic Ring': a marine cable has already been laid from Finland to Sweden, and there is a link from Sweden to Denmark and Germany, but there is no proper link from Germany through Poland to the Baltic States;

9. Calls on the Commission to ensure that the TEN programmes for electricity and gas fully take into account the long-term strategy and time-frame of EU enlargement and the priorities set out in the Agenda 2000 programme;

10. Subject to these comments, approves the conclusions contained in the Commission communication;

11. Instructs its President to forward this resolution to the Commission and to the Council.