DRAFT COUNCIL DIRECTIVE CONCERNING A COMMUNITY PROCEDURE TO IMPROVE THE TRANSPARENCY OF GAS AND ELECTRICITY PRICES CHARGED TO INDUSTRIAL END-USERS
Date: 1989-09-18
Institutions: European Commission
Subjects: Eurostat, access to information, confidentiality, price of energy, publishing of prices

I  •' 

.:1.:.l 

11 if  I 

I  ! I 

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC89) 332 final 

Brussels, 18 September 1989 

Draft 

COUNCIL  DIRECTIVE 

concerning  a  Community  procedure  to  improve  the  transparency 

of  gas  and  e l e c t r i c i ty  prices  charged  to  industrial 

end-users 

(presented by the Commission) 

Or^hM { 

EXPLANATORY  MEMORANDUM 

1.  As  announced  in  its  communication  to  the  Council  on  the 
transparency  of  energy  prices  (C0M(89)123  30  March  1989),  the 
Commission  now  transmits  a  proposal  for  a  Council  Directive 
concerning  a  Community  procedure  to  improve  the  transparency  of 
natural  gas and electricity  prices charged  to  Industrial  end-users. 

The point  of  departure  for  this proposal  has been  the  fact  that  gas 
and  electricity  price  transparency  is  not  satisfactory  in  the 
Community's  industrial  market  and  puts  in danger  the realization of 
the  internal  energy  market. 

2.  In  order  to  assist  the  Commission  in  finalizing  the  technical 
aspects  of  the  system  for  gathering  and  communicating  prices,  the 
Commission  has  appointed  a  select  group  of  experts  with  balanced 
representation of  gas and electricity  companies on  the one  hand  and 
industrial  users,  both  small  businesses  and  large  firms,  on  the 
other. 

Except  for  its  first  and  last  meetings  which  were  In  plenary,the 
group  held  meetings  from  27 April  to  15 June  1989,  in  separate 
subgroups on gas  and  electricity. 

3.  The  intensive  work  carried  out  by  both  subgroups  In  a  spirit  of 
full  cooperation  has  allowed  the  Commission  to  draw  up  the  two 
technical  annexes  to the draft  Directive. 

1.  Gas:  The  technical  annex  to  the  draft  Directive  defines  the 
method  which  will  be used, which  is based  on  that  used  by  the  SOEC 
in  its  gas  price  surveys.  It  identifies  seven  "standard"  users 
most  representative of  the  Industrial  gas market.  It  lays down  the 
frequency  and  deadlines  for  transmitting  data,  the  places  where 
the  prices  will  be  recorded,  and  the  method  of  calculating  them, 
it  determines  the  elements  ensuring  an  accurate  reflection  of  the 
system of  price  formation. 

2.  E lectr ic i ty:  The  technical  annex  to  the  draft  Directive  adopts 
the  method  of  standard  type  used  by  the  SOEC  in  its  electricity 
price  surveys  and  extends  it  to  cover  industrial  users  up  to  a 
rated  capacity  of  10 MW. 

For  users  above  10 MW  a new  system  has  been  introduced,  based  on a 
marker 

generators. 

including 

private 

pr ice, 

The  marker  price  is  accompanied  by  a  series  of  price  abatement 
factors  (in  principle  6%,  8%  and  10%)  selected  among  the  factors 
used  in practice  in the category  of  industrial  user  in question. 

Independent  statistical  processing  bodies  will  supply  the  highest 
and  lowest  prices  recorded  in  the  regions  served  by  several 
d i str ibutors. 

Every  two  years  the  distributors  or  the  independent  statistical 
processing  bodies will  supply  statistics on  the number  of  users  and 
their  consumption  for  each  category  of  quantity  or  capacity.  This 
information,  which  is  for  the  Commission's  use,  will  not  be 
pub Ii shed. 

4.  The  draft  Directive  is based  on  Article  213 of  the  EEC  Treaty,  and 

is based on  the  following essential  features: 

no breach  of"the confident la I Ity of contracts, 
transmission  of  up-to-date  price  data  every  six  months,  on 
1 January  and  1 July of  each  year, 
pub Ilcat ion  of  prices  by  the  Commission  (through  the  SOEC)  no 
later  than  five months  after  the surveys. 

Within  the  Commission,  the  SOEC  will  be  charged  with  the  receipt, 
control  and  publication  of  the  information  provided  for  in  the 
first  Article of  the Directive. 

Draft 

COUNCIL DIRECTIVE 

concerning  a Community  procedure  to  Improve  the  transparency 
of  gas and electricity  prices 
charged  to  industrial  end-users 

THE  COUNCIL CF  THE  EUROPEAN COMMUNITIES", 

Having  regara  to  the  Treaty  establishing  the  European  Economic 
Community, and  in particular  Article  213  thereof. 

Having  regard  to the  Commission's  draft, 

in cooperation with  the European  Parliament, 

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

Whereas energy  price  transparency,  to  the extent  that  it  reinforces 
the  conditions  ensuring  that  competition  Is  not  distorted  in  the 
Common  Market,  is essential  to the achievement  and operation  of  the 
internal  energy  market; 

Whereas  transparency  can  help  to  obviate  discrimination  between 
users,  by  increasing  their  freedom  to  choose  between  different 
energy  sources and  different  suppliers; 

Whereas,  at  present,  the  degree  of  transparency  varies  from  one 
energy  source  and  one Community  country  or  region  to  another,  thus 
calling  into question  the achievement  of  an  internal  energy  market; 

Whereas,  however,  th«  price  paid  by  industry  in  the  Community  for 
the energy  which  it uses  is one of  the  factors which  influence  its 
competitiveness and should  therefore  remain  confidential-, 

Whereas  the  system  of  standard  consumers  used  by  the  Statistical 
Office  cf  the  European  Communities  (SOEC)  in  its  price  publications 
and  the  system  of  marker  prices  due  to  be  Introduced  for  major 
industrial  electricity  users  will  ensure  that  transparency  is  not 
an  obstacle  to  confidentiality; 

it 

Whereas 
to  extend  the  consumer  categories 
used  by  the  SOEC  up  to  the  limits  at  which  the  consumers  remain 
representative; 

necessary 

is 

Whereas 
;n  this  way  the  objective  of  end-user  price  transparency 
would  be  achieved  without  endangering  the  confidentiality  of 
contracts;  whereas  in  order  to  respect  confidentiality,  it  is 
necessary  that  at  least  3  consumers  exist  in  a  given  consumption 
category  to  be  able  to  publish  a  price; 

Whereas  the  information  in  question  relates  exclusively  to  the  gas 
and  electricity  consumed  by  industry  for  energy  end-uses; 

the 

gas 

industrial 

and  electricity 

Whereas  the  undertakings  which  supply  gas  and  electricity  as  we I i 
as 
independently  of  the  application  of  the  present  Directive  -  subject 
to  the  Treaty's  competition  rules;  whereas  consequently  the 
Commission,  in  the  framework  of  the  powers  of  application  of 
Council  Regulation  No  17^,  as  last  amended  by  the  Act  of  Accession  of 
Spain  and  Portugal,  can  require  communication  of  prices  and  conditions 
of  sale,  to  the  extent  that  this  becomes  necessary  to  ensure  compliance 
with the prohibitions decreed by Artie les 85 and 86 of the Treaties; 

consumers 

remain 

Whereas  knowledge  of  the  price  systems  in  force  forms  part  of  price 
t ransparency ; 

Whereas knowledgeof the distribution of categories of consumers and thei r 
respective  market  shares  also  forms  part  of  price  transparency; 

Whereas, 
the  communication  to  the  Commission  of  prices  and 
conditions  of  sale  to  consumers,  accompanied  by  the  price  systems 
in  operation 
by 
consumption  category,  is  to  enable  the  Commission  to  be  informed  in 
order  for  it  to  decide,  as  necessary,  on  appropriate  action  or  proposals 
in  the  light  of  the  situation  of  the  internal  energy  market; 

as  well  as  the  distribution  of  consumers 

Whereas  the  data  supplied  to  the  Commission  will  be  more  reliable 
if  the  companies  themselves  establish  this  data; 

10J  No  13, 21.2.1962, p.  204/62. 

f 

-  3 -

Whereas  it  must  be  possible  to  check  the  reliability  of  the  data 
supplied  to  the Commission-, 

Whereas  transparency  can  be  achieved  by  publicizing  data  and  by. 
calculating  the prices and  price  systems as widely as possible  among 
end-users; 

Whereas  to  implement  energy  price  transparency  the system  should  be 
based  on  the  proven  expertise  and  methods  developed  and  applied  by 
the  SOEC  regarding  the  processing,  checking  and  publication  of 
the data; 

Whereas,  with  the  prospect  of  the  achievement  of  the  internal 
market  in  energy,  the  system  of  transparency  should  be  rendered 
operational  as soon as possible, 

HAS DECIDED  AS FOLLOWS: 

Article 1 

Member  States shall take the steps necessary to ensure that the undertakings which 
supply  gas  or  electricity  to  final  industrial  consumers,  as  defined  in 
the Technical Annexes  I and  II, communicate  to the Commission  in the form 
provided  for  in Article  3: 

1.  gas and  electricity  prices  and  sales conditions  for  industrial  end-users, 

2.  the price systems in use, 

3.  the  distribution  of  consumers  and  the  corresponding  volumes  by 

category  of  consumption. 

Article  2 

1.  The undertakings referred to in Article 1 shall assemble the data provided 
for  in Article  1, points  1 and  2,  on  1 January  and  1 July  of  each 
year.  This  data, drawn  up  in  conformity  with  the  provisions  of 
Article  3, shall  be  sent  to  the  Commission  and  the  competent 
authorities of  the Member  States within  two months. 

2.  On the basis of the data  referred  to in the first  paragraph  the 

Commission  shall publish  each May and  each November,  in an  appropriate 
form, the prices of gas and  electricity  for  industrial  end-uses  in 
the Member  States, and  the pricing  systems used  to that  end. 

-  4 -

The  .nfcrmaticn  provided  for  in Article  1, point  3,  shall  be  sent 
every  two  years  to  the  Commission.  The  first  communication  shall 
concern  the  situation  as  of  1st  January  1990.  This  information 
will  not  be pubi ished. 

Article  3 

The  implementing  provisions  concerning  the  form,  content  and  all  other 
features  of  the  information  provided  for  in  Article  1  are  set  out  in 
Annexes  1 and 2. 

Article  4 

The  Commission  shall  not  disclose  data  supplied  to  it  pursuant  to 
Article 1 and  covered, by its nature, by the obligation  of  professional  secrecy, 

This  provision  shall  not  prevent  the  publication  of  such  data  in  an 
aggregated  form  which  does  not  allow  the  Identification  of  individual 
commercial  transactions. 

Article  5 

When  the  Commission  notes  anomolies  or  inconsistencies  in  the  data 
submitted  under  the  present  Directive,  it  may ask  the Members  States to 
allow  it  to  inspect  the  appropriate  disaggregated  data  supplied  by 
undertakings  as well  as  the methods of  calculation  or evaluation  upon  which 
the aggregated  data  is based,  in order  to understand, or  even  amend,  any 
information  deemed  irregular. 

Article  6 

Where  a  specific  problem  is  identified  that  can  be  corrected  by  a 
simple  technical  adjustment  to  the  corresponding  annex,  the  Commission 
shall  make  the  necessary  changes.  Such  changes  shall apply to the 
technical elements only and  may under no  circumstances  affect  the general 
system of the  method. 

Article  7 

Once  a  year  the  Commission  shall  present  a  summary  report  on  the 
operation of  this Directive  to the European Parliament  and  the  Economic 
and  Social  Committee. 

f 

-  5 -

Article  8 

Member  States  shall adopt  the  laws, regulations  and  administrative  provisions 
needed  to  comply  with  this Directive  no  later  than  1 July  1990. 

The provisions  adopted  pursuant  to the  first  paragraph  shall make  express 
reference  to this  Directive. 

This  Directive  is addressed  to the Member  States. 

Article  9 

Done at Brussels, 

For  the  CounciI 
The  President 

Annex  I: 

Description  of  the data  concerning  prices and  sales  conditions 
requested  for gas. 

Annex  II:  Description  of  the data  concerning  prices and  sales  conditions 

requested  for  electricity. 

ANNEX  I 

Technical  Annex  on  Gas 

Two  types of  gas are  concerned 

(i)  natural  gas 
(i i) town gas 

2.  When  these  two types of  gas are  distributed  in the same urban  area 

or  region  data  should  be  reported  for  both  except  where  the 
consumption  is not  significant  (less  than 10%). 

3.  Only  piped  distribution  is considered. 

4.  Prices  to be  reported  are not  city  gate  prices  paid  by  gas 

distributors  but  prices paid  by  the end-consumer  for  supplies 
delivered  usually  by  distribution  companies  but  also  in some  cases 
by  production  or  transmission  companies. 

5.  Uses considered  are all  industrial  uses. 

6.  Excluded  from  the system  are gas consumers with  consumption 

a)  for  electricity  generation  in public  power  plants, 

b)  in non-energetic uses  (e.g.  in the chemical  industry), 

c)  above  4 186 000 GJ/year  (-  1 163 GWh/year). 

-  2 -

Prices  recorded  are based  on  a system of  standard  consumers ^efined 
basically  by  the  level  and  the modulâtiont1)  (or  load  factor)\ of 
'VV: 
the gas consumption. 

The other  characteristics which  could  play  a part  in the price  \ 
setting  (e.g.  interruptibiIity) will  be determined  In every  case.^V 
always adopting  the solution  which  is most  frequent  in practice. 

9.  Prices must  include meter  rental,  the standing  charge  and  the 

commodity  rate. They  do not  include  the  initial  Installation  charge 
to  the consumer. 

10. The  following  industrial  standard  consumers, coded  l-j to  I5, 

have  been  chosen: 

Annua I consumpt i on 

Modulât ion 

h 

I2 

I3-1 

I3-2 

I4-1 

I4-2 

Is 

418. 

60 GJ 

or 

116 300 KWh 

no  load  factor  laid  down1 

4 

186 

GJ 

or 

1  163 000 KWh 

200 days 

41 

860 

GJ 

or 

11.63 GWh 

200 days  1 600 h 

41 

860 

GJ 

or 

11.63 GWh 

250 days  4 000 h 

413 

600 

GJ 

or 

116.6  GWh 

250 days  4 000 h 

418 

600 

GJ 

or 

116.3  GWh 

330 days 8 000 h 

4  1S6 

000 

GJ 

or 

1  163 GWh 

330 days 8 000 h 

1  If necessary  115-200 days 

(1) the daily  load  factor  is the number  of  days which  would  be  required 

to  take  the entire annual  consumption  at  the maximum  daily  offtake 
rate: nd - Qa_ 

Qd max 

the hourly  load  factor  is the number  of  hours which  would  be 
required  to take  the entire annual  consumption  at  the maximum 
hourly  offtake  rate: nh - Qa_ 

Qh max 

n  the above  formula-. 

Qa  » annual  volume  consumed 
Qd max  - maximum  daily  offtake 
Qh max  » maximum  hour I y offtake 

Jo 

11.  Prices  are  to  be  recorded  in  the  following  places  or  regions: 

-  3 -

Belgium: 

Brussels; 

Denmark: 

Copenhagen; 

FR  of  Germany: 

Hamburg,  Hannover,  Weser-Ems,  Dortmund, 
Diisseldorf,  Frankfurt/Main,  Stuttgart,  Munich; 

Spain: 

France: 

Madrid,  Barcelona,  Valencia,  North  &  East; 

Lille,  Paris,  Strasbourg,  Marseille,  Lyon, 

Toulouse; 

Ireland: 

Dubi in; 

Italy: 

Milan,  Turin,  Genova,  Rome,  Naples; 

Luxembourg: 

Luxembourg  city; 

Netherlands: 

Rotterdam; 

Portugal: 

L isbon 

United  Kingdom: 

London,  Leeds, Birmingham; 

12.  Prices  recorded  are  prices  based  on  the  tariffs,  contracts, 

conditions  and  rules  in force  at  the  beginning  of  each  six-month 
period  (January  and  July)  including  any  eventual  rebates. 

13.  If  there  are  several  possible  tariffs,  it  is the  tariff  which  is 

most  advantageous  to  the  consumer  that  is taken  into  account,  after 
the  elimination  of  the  tariffs  which  are  not  used  in practice  or 
which  apply  only  to a neglegible  number  of  users. 

14. When  there  are  only  quasi-tariffs,  special  contracts  or  freely-

negotiated  pr ices,  the most  commonly  found  price  (most 
representative) for  the given  supply  conditions  has  to  be  recorded 

15.  Prices  have  to be  expressed  in national  currency  by  physical  unit 
of  g a st 2 ).  The  unit  of  energy  used  is measured  on  the  basis  of 
the gross  calorific  value  (GCV),  as  is the  practice  in  the  gas 
industry. 

(2),In  case  the m^ would  be used,  it woiild be  necessary  to define  its 

energy  content  in GJ, KWh  or  therm. 

16.  Two  price  levels  are  to  be  s h o w n :^ 

_  4  -

the  pr ice  net  of  tax ; 
the  price  excluding  recoverable  VAT  but  including  all  other 
taxes. 

17.  The  level  of  taxes  (excluding  recoverable  VAT)  should  be  indicated 

as well  as  an  explanation  of  their  application. 

18.  An  explanation,  as  detailed  as  necessary  to  accurately  reflect  the 
system  of  price  formation,  must  be  annexed.  Special  emphasis  shall 
be  given  to  any  modifications  since  the  previous  survey. 

19.  In Member  States  where  one  gas  company  covers  virtually  all  the 
industrial  sales  for  that  country,  the  information  should  be 
collected  by  that  company.  In other  Member  States  where  one  or  more 
of  the  regions  Is served  by  more  than  one  gas  company,  the 
information  should  be  collected  by  an  independent  statistical  body. 

(3) The  price  excluding  tax  is obtained  directly  from  the  tariffs  or 

the  contracts.  The  price  excluding  recoverable  VAT  includes,  where 
payable,  other  specific  taxes. 

À 

ANNEX II 

Technical  Annex on Electricity 

With respect  to the reporting of  Information relating  to electricity 
under  this Directive, the following shall apply: 

I.  The "Typical Reference Consumer'1 Survey, (for Consumers with up to 

10 MW Maximum  Demand). 

1.  The existing survey of electricity  prices for typical 

reference consumers  In the Community carried out by the 
Commission shall be extended  to  include two categories of 
industrial  reference consumer with a maximum demand of  10 MW, 
and the whole survey of  industrial consumers, (as described 
below) shall be  incorporated  in this Directive. 

2.  Electricity prices  in Member  States with a unified national 

tariff shall be surveyed  in one  location only and for Member 
States with tariffs which vary across the country, prices shall 
be surveyed  in a representative sample of  locations, as 
fol lows: 

Be Ig Iurn 
Federal Republic 
of Germany 

Denmark 

Spain 
France 

Greece 
Ireland 
Italy 

Luxembourg 
Netherlands 

Portugal 
United Kingdom 

The country as a whole. 
Hamburg, Hanover, Dusse I dorf, 
Frankfurt  am Main, Stuttgart, 
Munich, Western Zone, Southern 
Zone. 
Copenhagen  (KB), North Zealand 
(NESA). 
Madrid. 
Lille, Paris, Marseille, Lyon, 
Toulouse, Strasbourg. 
Athens. 
Dublin. 
Northern 
Southern 
Is Iands. 
Grand Duchy  (Cegedel). 
Rotterdam  (GEB), North Holland 
(PEN)» North Brabant  (PNEM). 
Lisbon. 
London, Glasgow, Leeds, 
Birmingham. 

and Central  Italy, 
Italy and the 

Electricity  prices shall be surveyed for the following nine 
categories of typical  reference  industrial  consumer: 

Reference  Annual  Consumption 
Consumer 

kWh 

Maximum  Demand 
kW 

Annual  utilisa 
tion, hours 

• » • •• 

"  ' 

• 

—

—

—

^

^

—

—

•

—

^

—

—

—

•— 

• !• 

a l *| 

30 000 
50 000 
160 000 
1 250 000 
2 000 000 
10 000 000 
24 000 000 
50 000 000 
70 000 000 

30 
50 
100 
500 
500 
2 500 
4 000 
10 000 
10 000 

1 000 
1 000 
1 600 
2 500 
4 000 
4 000 
6 000 
5 000 
7 000 

The maximum demand  is the maximum offtake  in any quarter of an hour 
recorded  In one year, expressed  in kW. The price of supply Is 
calculated  for cos 0 - 0.9. In the case of tariffs based on half 
hourly maximum demand, the maximum demand of the reference consumer 
is multiplied by a coefficient of 0.98. In the case of tariffs 
based on a maximum demand expressed  in kVA an adjustment  is made by 
dividing the reference consumer's maximum demand  in kW by the 
coefficient cos 0 - 0.90. 

In the case of tariffs based on maximum demand  readings more 
frequent  than once a year the capacity charge  is multiplied by the 
following coefficients: 

Table of power correction coefficients 

UtiIisa-
tion 
(hours) 

Monthly 
Max imum 
Demand 

Two Monthly 
Max imum 
Demand 

Quarterly 
Max imum 
Demand 

Average of 
3 highest 
monthly 
Max imum 
Demands 

Average of 
2 highest 
monthly 
Max imum 
Demands 

Annua I 
Max im. 
Demand 

1 000 
1 600 
2 500 
4 000 
5 000 
6 000 
7 000 

0.81 
0.83 
0.85 
0.90 
0.90 
0.96 
0.96 

0.83 
0.85 
0.87 
0.91 
0.91 
0.97 
0.97 

0.86 
0.88 
0.90 
0.95 
0.95 
0.98 
0.98 

0.94 
0.95 
0.96 
0.98 
0.98 
0.99 
0.99 

0.96 
0.97 
0.98 
0.99 
0.99 
0.995 
0.995 

1 .0 
1.0 
1.0 
1 .0 
1.0 
1.0 
1.0 

I 

M 

- 3 -

For  tariffs with  reductions  for  "off-peak" periods the following 
"off-peak" consumptions should be assumed  In calculating the 
average price per kWh: 

Standard 
consumer 

Annua 1 
uti 1 i-
sat ion 

Annua I 
Consump-
t Ion 

Annual  Consumption  (In  1 000  kWh) 
charged  at off-peak  rates  according 
to  the average  daily  duration  of 
off-peak  periods  in each  24  hours 

hours 

1000 kWh 

7  h 

8 h 

9 h 

10 h 

11 h 

12 h 

' a 
'b 
'c 
'd 
'e 
•f 
'g 9 
!h 
1 i 

1  000 
1  000 
1  600 
2  500 
4  000 
4  000 
6  000 
5  000 
7  000 

30 
50 
160 
1  250 
2  000 
10 000 
24  000 
50  000 
70  000 

0 
0 
11 
197 
438 
2 190 
7  140 
13 100 
23 300 

0 
0 
13 
225 
500 
2 500 
8  160 
15 000 
26 600 

0 
0 
16 
262 
580 
2 900 
9  120 
17 000 
29 400 

0 
0 
19 
300 
660 
3 300 
10 080 
19 000 
32 200 

0 
0 
22 
338 
740 
3 700 
11 040 
21 000 
35 000 

0 
0 
25 
375 
820 
4 100 
12 000 
23 000 
37 800 

For off peak periods of durations between  those shown above, the 
annual  consumption of off-peak kWh's should be estimated by 
interpolation. For any further off-peak periods, for example all 
day Sunday, only half of the extra hours should be taken and these 
hours averaged across all days of the year, and the result  added to 
the normal off-peak period, before using the table above. 

6.  Wherever  possible, the price reported should be based on a 

published  tariff applicable to the reference consumer  category  In 
question,  tf there are several possible tariffs, the tariff which 
is the most advantageous to the consumer, after  the elimination of 
any tariffs wtvtch are not used  in practice or which apply only  to a 
marginal or negligible number of users, should be applied. Where 
there are only quasi-tar iffs, special contracts, or freely 
negotiated prices, the most commonly  found price, (most 
representative) for the given supply conditions should be reported. 

7.  Where electricity  for a given reference consumer  category may be 

supplied at a variety of voltages, that voltage should be assumed 
which  is the most  representative for the reference consumer 
category  in question. This principle should be applied to other 
parameters not specified  in this Directive. 

8.  The price per kWh should be calculated so as to  Include all  fixed 
charges payable, (e.g. meter  rental, fixed charges or capacity 
charges, etc.), as wet I as the charges for the kWh's consumed. It 
is therefore the total amount payable after  any premiums or 
rebates, for the consumption pattern  In question, divided by the 
total  consumption.  Initial connection charges, however, should not 
be  included. Although  information  is to be provided twice yearly, 
the calculation shouki be based on annual  consumption figures, to 
avoid seasonal variations. 

J 

9.  P-ices  should  be  given  in national  currency  per  kWh : 

-  with  all  taxes  excluded 
-  with  all  taxes  included,  (except  recoverable VAT). 

The  rates  and  method  of  application  of  taxes, which  should 
include  any  tax  whether  national,  regional  or  local,  levied  on 
electricity  sales  to  the  consumer,  should  be  reported. 

10.  An  explanation  as  detailed  as  necessary  to  accurately  describe 

the  tariff  system  and  how  It  is applied  should  be  given.  Any 
modifications  in the  system  since  the  previous  survey  should  be 
given  special  prominence. 

I I. The  "Marker  Price"  Survey,  (for  Consumers  above  10 MW  Maximum 

Demand). 

11.  To  survey  industrial  consumers  with  maximum  demands  above 

10 MW,  a new  system  based  on  "Marker  Prices", as  defined  below, 
shall  be  introduced. 

12.  For  all  Member  States  except  the  Federal  Republic  of  Germany 

and  the United  Kingdom,  variations  in the  structure  of  charges 
and  prices  charged  for  large  industrial  electricity  consumers 
across  the  country  are  relatively  small,  and  Marker  Prices  and 
associated  information  shall  be  collected  and  published  for  the 
Member  State  as  a whole.  For  the  Federal  Republic  of  Germany 
and  the  United  Kingdom  there may  be  significant  geographical 
variations  and  so  information  for  these  two Member  States  shall 
be  collected  and  published  by  three  regions  In each  case,  as 
fo iIows: 

Member  State 

Federal  Republic  of  Germany 

Uni ted  Kingdom 

Regions 

North/Central 
West 
South 

England  and  Wales 
Scotland 
Northern  Ireland 

13. Marker  Prices  and  associated  information  shall  be  reported  for 
each  Member  State  as described  in paragraph  12  above  for  three 
categories  of  large  industrial  consumer,  i.e.  those  industrial 
consumers  with  maximum  demands of  about: 

The  regions  for  the  Federal  Republic  are  defined  as: 
North/Central:  Schleswig-Holstein,  Bremen,  Hamburg,  Berlin, 
Niedersachsen  and  North  Hessen. 

: Nordrhein-Westfalen,  Rheinland-Pfalz,  Saarland  and 

West 

South 

South  Hessen. 

: Baden  Wurttemberg  and  Bavaria. 

At 

- 5 -

25 MW, covering consumers with maximum demands between  17,5 MW 
to 37,5 MW. 

50 MW, covering consumers with maximum demands between 37,5 MW 
to 62,5 MW, and 

75 MW, covering consumers with maximum demands between 62,5 MW 
to 75 MW. 

These categories  include any  industrial  consumers which also 
produce a part of their own electricity needs themselves, 
although only  information relating  to their consumption  from an 
electricity utility  is required  to be reported. 

14. The Marker Price for a given MW category  (e.g. 25 MW)  Is the 

average price payable per kWh for a notional  or  "Marker Price" 
industrial consumer of the utility  in question with a normal 
maximum demand of about  the appropriate size (I.e. 25 MW), but 
before any reductions for "special  factors", which should be 
reported separately, (see paragraph  17 below). This "Marker 
Price"  industrial consumer should have demand characteristics 
as far as possible representative, (ignoring  "special  factors") 
of ail the  industrial  consumers  in the category  in question 
served by the utility.  In order  to try to achieve a measure of 
homogeneity, however, the Commission will  define demand 
characteristics for "Marker Price" consumers for each category, 
(i.e. 25 MW, 50 MW and 75 MW), which should be adopted by a 
reporting utility where appropriate.  If such demand 
characteristics are not appropriate, the utility may define  its 
own  "Marker Price" consumer  demand characteristics, subject  to 
the approval of the Commission. These demand characteristics 
refer, for example-, to the  load factor, (e.g. "7000 hours", 
where 700Q  is the number of hours for which  the maximum demand 
would have to be  In effect  to obtain the annual  consumption)., 
and the distribution of consumption by the different  tlme-of-
day charge bands, (e.g. peak, off-peak, etc.). 

15. The Marker Prices given should be calculated so as to include 

all  fixed charges payable, (e.g. meter  rental, fixed charges or 
capacity charges etc.), as well as the charges for the kWh's 
consumed,  initial connection charges, however, should not be 
included. Although  information  is to be provided  twice yearly, 
annual  consumption figures should be used  in order  to avoid 
seasonal variations. The way  in which  the Marker  Price is 
calculated,  including the Inclusion of any fixed charges, 
should be explained. 

16. For each Marker  Price a range of  "special  factors" which may 

be applied to reduce the price of electricity,  (e.g. 
interruptibiIity clauses), should be described and the amount 
of reduction, (e.g. 6%,  8%, 10%,) indicated. These special 
factors should be representative of factors which are in 
reality used by the industrial  consumers sup©I led by the 
report rng util ity  in the MW catenary bel n$ surveyed. 

- 6 -

17.  In Member  States where  there  is more  than one  electricity 

utility,  these  utilities  shall  each  provide  Marker  Prices  and 
the  associated  Information,  (on  the  demand  characteristics of 
the notional  "Marker  Price"  industrial  consumer,  (paragraph 
15),  and  on  the  special  factors  and  their  price  reductions 
(paragraph  17)), to an  independent  statistical  body.  These 
bodies  shall  then  pass on  the  highest  and  the  lowest  Marker 
Price  for  the Member  State,(or  for  each  region  if  applicable) 
for  each  MW  category,  together  with  the associated  information 
for  these Marker  Prices, simultaneously  to  the Commission  and 
to  the national  administration.  For  the other  Member  States, 
where  one  national  utility  covers  the whole  country,  the 
information  shall  be  reported  directly  and  simultaneously  to 
the Commission  and  to  the  national  administration. 

18.  In order  to preserve  confidentiality. Marker  Prices  and  the 
associated  Information  shall  be  reported  by  the  independent 
statistical  body  or  the  national  utility  as  appropriate  (see 
paragraph  18 above) for  a given MW  category,  only  where  at 
least  three  consumers  in the MW  category  are  present  In  the 
Member  State  or  region  concerned. 

19. Marker  Prices should  be given  In national  currency  per  kWh: 

-  with  all  taxes excluded,  and 
-  with  all  taxes, except  recoverable  VAT,  Included. 

The  levels of  taxes,  (excluding  recoverable  V A T ), should  be 
indicated  as well  as an explanation  of  their  application. 

20.  Supply  utilities should  also  provide  data, once  every  two 

years, on  the  number  of  its consumers  in each  MW  range,  (i.e. 
17.5 -  37.5 MW,  37.5 - 62.5 MW,  and  62.5  - 75.0 M W ), and  the 
total  annual  consumption  of  these  consumers  for  each  range,  (in 
GWh).  As with  the  information  required under  paragraph  18,  this 
information  shall  be passed  either  via  an  Independent 
statistical  body, which  shall  collate  information  for  the 
Member  State  as a whole, or directly  and  simultaneously  to  the 
Commission  and  to the national  administration.  The  information 
required  under  this paragraph  will  be  provided  on a 
confidential  basis  and will  not  be  published. 

FINANCIAL  RECORD 

The  Directive  has  no  immediate  financial  implications.  The  matter  will 
be  re-examined  when  the  draft  1991  budget  is  drawn  up,  by  which  time 
the  publications  and  surveys  .related  to  the  application  of  the 
Directive  will  be  published  on  a  six-monthly  basis. 

J>. 

ISSN 0254- W5 

COM(89) 332 final 

DOCUMENTS 

EN 

15  13 

a.- v 

Catalogue number : CB-CO-89-410-EN-C 

ISBN 92-77-52948-2 

Office for Official Publications of the European Communities 
L-2985 Luxembourg