Proposal for a COUNCIL REGULATION (EC) on notifying the Commission of investment projects of interest to the Community in the petroleum, natural gas and electricity sectors
Date: 1995-07-26
Institutions: European Commission
Subjects: European Commission, electrical energy, exchange of information, investment project, natural gas, petroleum

ix 

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COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

»<*â&fï 

Brussels,  26.07.1995 
COM(95)  1IX  final 

95/0083  (CNS) 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

on notifying  the Commission of investment projects of interest 
to the Community  in the petroleum, natural gas and electricity  sectors 

(presented  by  the  Commission) 

m 

COMMUNICATION  FROM  THE  COMMISSION 

CONCERNING A  PROPOSAL FOR  A  REGULATION 

REFORMULATING REGULATION  (EEQ  NO  1056/72  OF  THE COUNCIL 

ON NOTIFYING  THE COMMISSION  OF  INVESTMENT PROJECTS 

OF  INTEREST  TO  THE  COMMUNITY 

IN  THE  PETROLEUM, NATURAL  GAS AND  ELECTRICITY  SECTORS 

The proposed regulation reformulates Regulation  (EEC) No  1056/72  of the Council,  as 
amended by Council  Regulation  (EEC) No  1215/76. 

After  an  indepth  study  of  the  effectiveness  of  the  existing  Regulation,  based  on  the 
experience  acquired from  implementing  it, the Commission  considers that amendments 
and simplification  are needed. 

This proposal forms part of the Commission's legislative programme for  1995 and is the 
most effective way of presenting the new Council Regulation bringing together in a single 
text the existing Regulations (1056/72 and 1215/76) and making the amendments which 
the Commission  considers necessary. 

This proposal  is also of relevance to the European Economic Area (EEA).  However, no 
specific  adjustments are necessary  to attain the objectives of the EEA. 

The Council  is requested to adopt the proposal for a regulation, after having received the 
opinions of the European Parliament and the Economic  and Social  Committee. 

EXPLAN 

A  TOR 

Y 

MEMORANDUM 

Regulation (EEC) No  1056/72 of the Council,1 as amended by Council Regulation (EEC) 
No  1215/76,2 provides for  notifying  the Commission  of investment projects of interest to 
the Community  in  the  petroleum,  natural  gas and  electricity  sectors 

It applies to terminals for the importation of liquefied  natural gas, energy production plant 
(power  stations and  oil  refineries),  oil  and  natural  gas pipelines,  electricity  transmission 
lines and  oil  and  natural  gas  storage  installations. 

The objective  is to supply  the Commission  with detailed  information  on planned energy 
investment  projects  of  interest  to  the Community  and  thereby  give  it  an  overall  picture 
of  the  capacity  and  equipment  plans  in  the  energy  sector  in  the  Community.  All  the 
information  required  is  based  on  existing  data  the  industry  or  in  some  cases  also  the 
Member  States  possess,  which  means  in  fact  that  this  Regulation  does  not  impose  any 
constraint  to the industry  but  for  the obligation  in  some cases to fill  in  the tables. 

The notification  procedure provided  for by the Regulation  was added to the similar rules 
in  the  Euratom  and  ECSC  Treaties  in  order  to  build  up  a  stock  of  data  allowing 
assessment and, if necessary, redirection  of the general trends and patterns of investment. 

The  information  gathered  pursuant  to  the  Regulation  is  needed  for  the  Commission's 
ongoing  activities,  not  only  in  the  energy  sector  but  also  for  other  purposes,  such  as to 
supply  data to official  bodies  such  as the  Statistical  Office  (which  publishes  them  in its 
annual  energy  statistics),  to other  Commission's  services  in  order  to  implement  existing 
Community  policies  like  environmental,  internal  market,  public  health  protection, 
competition  rules,  etc.,  for  regular  transmission  to any  Member  States which  so request 
or for  analyses  of the situation  in  the relevant  sectors. 

This information  gives the Commission the full  picture for management of its instruments 
and  administration  of  its  competition  and  financial  policy  instruments.  However,  with 
a  view  to  ensuring  transparency  between  the  Member  States  themselves  and  all 
institutions  concerned,  the  data  are  also  necessary  to  enable  the  industry  and  the 
authorities  to  take  decisions  in  the  future,  through  for  instance  the  Green  and  White 
papers  of the Commission  for  a Community  energy  policy. 

Considering  the  fundamental  contribution  which  investments  in  energy  handling, 
production,  transmission  and  storage  facilities  make  to  the  security  of  supply  of 
consumers in the Community,  it is essential  for the Commission  to be informed  in good 
time of planned  developments  so that it can take them  into account  when formulating  its 
energy  policy  proposals  since  concordance  between  the  Member  States'  investment 
projects  and  estimated  trends  in  demand  is one of  the essential  measures  evaluating  the 
Community's  long-term  energy  balance. 

This information  should  show the allocation  of resources to energy  investments between 
Member  States and make it possible to monitor the capacity  available and in service and 

1 
2 

O J N oL  120, 25.5.1972,  p. 7. 
O J N oL  140, 28.5.1976,  p.  1. 

1  CL. 

to compile  an inventory  of  the new capacity  or of the  closures in progress  or planned. 
In this way, it can be used to forecast the security of supply of each Member State and, 
hence, of the Community  in order to study,  where appropriate, the measures needed to 
ensure better safeguards for supplies. 

The  past  data  and  forecasts  collected  are  also  a  source  of  statistics  of  primordial 
importance for compilation  of the Commission's regular reports on the industry and the 
three markets concerned, like for instance the annual energy report to the Council (based 
on article 3 of the Regulation), the gas report at present under discussion, the oil refinery 
sector report every two years and the preparation  of the forecast  scenarios for the year 
2020. 

The information  on the investments  planned  makes it possible to foresee  how  capacity 
is adapting to demand trends and, in the case of oil in particular, how higher value added 
products meeting more stringent environmental regulations and standards are coming onto 
the market. 

It also puts the Commission  in a better position  to handle with the Community  actions 
in the trans-European network sector, by providing information on the completion of the 
specific  projects  of  common  interest  and  on  the  evolution  of  production  and  storage 
capacities leading to new needs for interconnections. 

The Regulation is the Commission's only official  source of information on developments 
in  production,  processing  and transmission  capacity  in the Fifteen.  In their  capacity  as 
intermediaries for collecting the information,  the Member States in turn find it a source 
of relevant, regular, and reliable information. Thanks to this information the Commission 
can  constantly  monitor  changes  in  existing  or planned  capacity  in  the  various  energy 
sectors of the Member States. 

In view of the wide variety of information gathered, the number of parties involved and 
the possible differences of interpretation of the information  requested, verification  of the 
information  received  is essential.  This  has  shown  that the  data gathered  are the most 
reliable  from  the  sources  available  to  the  Commission.  In  particular,  the  information 
comes  straight  from  the  national  administrations  and  it  allows  improvement  of 
administrative cooperation to facilitate the smooth running of the internal market. 

Nevertheless,  the  quality  and  accuracy  of  the  data  varies  from  one  Member  State  to 
another.  Sometimes the information is incomplete and has to be corrected after bilateral 
talks.  Other Member  States continue  to  submit  information  not fully  in  line  with the 
contents of the Regulation.  An effort must be made to supply exactly the data requested 
by the Regulation. 

The  time limit for submission of the information to the Commission (15 February) still 
is not met and the consequent delays have  a knock-on  effect  on  processing  of the data 
and on preparation of the summary. 

In response to the European Council meeting in Edinburgh on 11 and 12 December  1992, 
the  Commission  gave  an  undertaking  to  check  and  adapt  legislation  in  force,  in 
accordance  with  the  subsidiarity  principle,  and  to  amend  it  accordingly.  Even  though 
Regulation  1056/72  was  not  on  the  list  drawn  up  by  the  Council,  the  Commission 
considered it important to analyze the usefulness of this regulation. 

A preliminary assessment by the Commission, with the agreement of the Member States, 
concluded  that the  Regulation  is  needed.  However,  in  keeping  with  the  principle  of 
proportionality,  the Commission  recognizes that the obligation  imposed  on the industry 
to supply the Member State with the data collected,  even if the Member  State prefers to 
use another more efficient  source, goes further  than necessary and imposes administrative 
constraints out of proportion with the benefits  which can be expected.  The net result is, 
therefore,  that the Regulation  loses  effectiveness. 

To remedy the difficulties  encountered with implementation  of the Regulation and, where 
appropriate, guarantee that the information  collected is of maximum use, the Commission 
proposes repealing Regulation (EEC) No 1056/72 of the Council, as amended by Council 
Regulation (EEC) No 1215/76, and combining the two Regulations into a new Regulation, 
in  line with  the  draft  annexed  (in  which  the  additions  and  amendments  are  underlined) 
and,  at the  same  time,  announces  its  intention  to  simplify  its  implementing  Regulation 
(No 3025/77). 

In particular,  the Commission's  proposal  leaves it to the Member  States to decide which 
means they wish to use to supply  the information  necessary  to meet the objectives  set in 
the text.  It also changes the time limits for  submission  of the data  and  shortens the list 
of  data  in the  Annex  to the  Regulation. 

The  Commission  will  revise  this  Regulation  on  the  basis  of  article  2.2  when  the 
experience  in  applying  it  will  show  that  further  modifications  or  simplifications  are 
necessary  in order to  render  it  more  effective 

The Council  is therefore  requested: 

to  adopt  the  annexed  proposal  for  a  Council  Regulation  on  notifying  the 
Commission of investment projects of interest to the Community in the petroleum, 
natural gas and electricity  sectors and, accordingly, to repeal  Regulation  1056/72; 

to request the European  Parliament  for  its opinion  on the  draft; 

to consult  the  Economic  and  Social  Committee. 

COUNCIL  REGULATION  (EC) No 
of 

on notifying  the  Commission  of  investment  projects  of  interest 
to the Community  in the petroleum, natural  gas and electricity  sectors 

THE  COUNCIL  OF THE EUROPEAN  UNION, 

Having regard to  the Treaty  establishing  the European  Community, and 
in particular Articles  5 and  213  thereof, 

Having  regard to the  Treaty  establishing  the European  Atomic Energy 
Community, and in particular  Articles  187 and  192 thereof, 

Having regard to the  proposal  from  the Commission, 

Having regard to the  opinion of the European Parliament,1 

Having regard  to  the  opinion of  the Economic  and  Social  Committee,2 

Whereas, out of  concern for  clarity  and for  the  purpose  of  new 
amendments, it is necessary  to  reformulate  Regulation  (EEC)  No 
1056/72 of  the  Council  of  18 May  1972 on notifying  the  Commission of 
investment  projects  of  interest  to  the  Community  in the petroleum, 
natural  gas and electricity  sectors:3 

Whereas the  introduction  of  a common energy  policy  is one  of the 
objectives  of the  Communities; whereas  it is the  task  of  the  Commission 
to propose the  measures to be  taken for  this  purpose; 

1056/72 

Whereas the  information  gathered  pursuant  to  the Regulation  is necessary 
for  the Commission's  ongoing activities: whereas these data are  the 
Commission's only  official  source  of information  on developments  in 
production, processing  and transmission  capacity  in the  electricity, 
petroleum and natural  gas sectors: 

Whereas, after  studying  the  communication  made to  it by  the 
Commission  on  18 December  1968 on initial  guidelines for  a 
Community  energy  policy,  the  Council, during  its 88th session held  on 
13 November  1969: 

1056/72 

approved  the basic principles  of  that  communication  in the  light  of 
the report from  the  Committee  of Permanent  Representatives; 

requested  the  Commission to put before  it as soon as possible  the 
most urgent  concrete  proposals  in this  field; 

agreed to study  these proposals as soon  as possible  in order to 
establish a  Community  energy  policy; 

OJ No  C 280,  8.12.1975,  p. 58. 
O J N o C 3 5,  16.2.1976, p. 22. 
OJ No L  120, 25.5.1972, p. 7, as last amended by Council Regulation  (EEC) No 
1215/76  (OJNo  L  140, 28.5.1976,  p. 1). 

Whereas obtaining an overall  picture  of  the development  of  investments 
in the Community  is one  feature  of  such  a policy;  whereas  this will, in 
particular,  enable the  Community  to  make  the  necessary  comparisons; 

Whereas the accomplishment  of  that  task  requires  the  most  accurate 
information  possible on  investments;  whereas, with  regard  to coal  and 
atomic energy, undertakings  are  under an  obligation, pursuant  to the 
Treaty  establishing  the  European  Coal  and  Steel  Community  and  the 
Treaty  establishing the European  Atomic  Energy  Community, to  notify 
their  investment projects;  whereas  it  is desirable  to  supplement  such 
information  with particulars  relating  to petroleum,  natural  gas and 
electricity;  whereas to  this end  the  Commission  should be  informed  of 
investment  projects  which  are  of  interest  to  the  Community  in the  sectors 
concerned; 

Whereas, so that the  Commission  may  carry  out  its task, it  should be 
informed  in good time of  any  fundamental  alteration  in such projects,  in 
particular as regards the  period  required  for  carrying  them out and  the 
planned capacity;  whereas  in consequence  communication  of  such 
particulars is similarly  indispensable; 

Whereas Member States  should  for  this purpose  communicate  to the 
Commission, with any  comments they  may  have, particulars of 
investment projects  concerning  production, storage  and distribution  of 
petroleum, natural  gas or electric  power  planned  in their  territory; 
whereas to this end the  persons  and  undertakings concerned  must be 
under an obligation  to communicate  to  the Member  States the 
information  in question; 

Whereas some Member  States  have  no  need  to  maintain  this  obligation 
on the persons and undertakings  concerned  in order to know the 
investment projects which  must  subsequently  be  notified  to the 
Commission: 

Whereas, because  of the  technical, financial,  industrial  and social  aspects 
of  investment projects  in the  electricity  sector, there  is a  growing 
tendency  to formulate  such  projects  at  least  five  years before  the 
expected commencement  of  work; 

J: 

Whereas it is therefore  necessary  to  ensure  that  the  Commission  is 
notified  of  investment  projects  in the electricity  sector  on which work  is 
expected to commence within five years from  1 January  of the current 
yean 

1056/72 

1056/72 

1056/72 

1056/72 

1215/76 

1215/76" 

1215/76 

Whereas,  in the  case  of  petroleum  refining,  investment  in 
desulphurization  plants  for  residues, gas oil  and  feedstock  or  other 
petroleum  products  is of  increasing  importance  in view  of  the  strict 
quality  standards  to be  adopted  within the  Community  in order to  control 
pollution; 

Whereas  Articles 41 and  42 of  the Treaty  establishing  the  European 
Atomic Energy  Community  provide  that  the  Commission  must  receive 
notification  of  any  kind  of  nuclear  investment  project  not  later  than  three 
months before  the first  contracts  are concluded  with  the  suppliers  or 
three  months before  the work begins;  whereas  this  means  that 
notification  of  projects  is given when they  are at  a very  advanced  stage 
and  then  only  at the  initiative  of and  on the date  chosen by  the person  or 
undertaking  making the  investment; 

1215/76 

10 

1215/76 

11 

1215/76 

12 

1215/76 

13 

1215/76 

Whereas  in order to assist  manufacturing  industry  in undertaking  the 
investment  and  adjustments  necessary  for  the  supply  of  heavy  plant 
under the  investment programmes  relating to electric  power  supplies,  the 
Commission  must be  informed  of the projects  involved  in  these 
programmes  sufficiently  far  in advance  of their  implementation  to be 
able to provide  industry  with  information  - the exact  form  varying 
according  to the degree  of  final  commitment  reached  with  regard  to  the 
construction  plans  - which will  enable  an accurate  assessment  to be  made 
of  the  technical, financial  and  social risks involved; 

Whereas, in the  electricity  and  natural  gas sectors, investment  projects 
relating  respectively  to underground  and sub-marine  transmission  cables 
and  pipelines, which  constitute  essential  links  in  national  or  international 
interconnecting  networks as well  as  in the transeuropean  networks, are  of 
interest  to the  Community;  whereas  the  Commission  needs  information 
on such projects  to enable  it  to carry  out  its task  in  the  electricity  and 
natural  gas sectors; whereas  provision  should  be  made  to ensure  that 
such projects  are communicated  to  the  Commission; 

Whereas experience  has shown  that  the dates of  15 February  and 
15 January  leave  the  persons  and  undertakings  concerned  and  the 
Member  States insufficient  time to collect  the  information  necessary: 

1056/72 

1056/72 

1056/72 

1215/76 

1056/72 

Whereas  it  is desirable to enable  the Commission  to prescribe,  if  need 
be, certain  practical  details, such  as the  form  and  content  of  the 
notifications  to be  made; 

Whereas  experience  has shown  that  some of  the data  collected  impose 
administrative  constraints  which  go further  than  necessary, in relation  to 
the advantages  which  can be  expected, and  that  it  is necessary  to  reduce 
and  change  the  data  collected: 

Whereas observance  of  the obligations  provided for  in this Regulation 
and  the confidential  nature  of  the  information  collected  should  be 
ensured, 

HAS ADOPTED  THIS  REGULATION: 

Article  1 

1.  Member  States shall, before  15 April  of  each year, communicate  to 
the  Commission  the  information  they  have obtained  on the basis of  the 
provisions of paragraph  2 concerning  investment  projects  listed  in the 
Annex which  relate  to  the  production, transport, storage  or distribution  of 
petroleum, natural  gas or electric  power and on which work  is scheduled 
to  start within  three years, in  the  case  of  projects  in the  petroleum  and 
natural  gas sectors, or within  five  years, in the case of  projects  in  the 
electricity  sector,  the  notifications  must take account  of  the  latest 
developments  in the  situation. 

Member States shall  add  to their  notifications  any  comments  they  may 
have. 

2.  In order to  fulfil  the  obligation  laid  down  in paragraph  I. the  persons 
and  undertakings  concerned  shall, before  15 March  of  each  year, 
communicate  details  of  investment  projects  referred  to  in paragraph  1 to 
the Member  States  in whose  territory  they  are planning  to carry  them 
out. However, this provision  shall  not  apply  where  the  Member  State 
concerned  decides  to  use  other  means of supplying  the  Commission  with 
information  on  the  investment  projects  referred  to  in paragraph  1. 

3.  The  notifications  provided  for  in paragraphs  1 and  2 shall,  moreover, 
indicate  the volume  of capacities  in commission  or under construction  or 
which  are  scheduled  to be  taken out  of commission  within three years. 

4.  When calculating  capacities  or dimensions  mentioned  in the  Annex, 
the Member  States, persons  or undertakings  concerned  shall  take  into 
account  all  parts of a project,  in so far  as they  together constitute  a 
technically  indivisible  whole, even where the  project  is carried  out  in 
several  successive  stages. 

1215/76 

1056/72 

1215/76 

1056/72 

1056/72 

5.  The  notifications  provided  for  in  paragraphs  1 and  2 shall  also  cover 
investment  projects  of  which  the  major  features  (location,  contractor, 
undertaking,  technical  features,  etc.)  may, in whole  or  in part,  be  subject 
to further  review  or to  final  authorization  by  a competent  authority. 

Article  2 

1.  With  regard  to  investment  projects  planned  or  in progress, any 
notifications  as  referred  to  in Article  1 shall  indicate  the  following. 

the name  and address or seat  of  the  person  or  undertaking  planning 
to make  the  investments; 
the precise  purpose  and  nature  of such  investments; 
the planned  capacity  or  power; 

the probable  date  of  commissioning: 
the type  of  raw  materials  used. 

As  regards any  proposed  withdrawal  from  service,  notifications  shall 
indicate  the  following: 

the character and  the capacity  or power of  the  installations 
concerned; 

the probable  date  when  the  installations  will  be withdrawn  from 
service. 

2.  Within the limits  laid  down by  this Regulation  and  the  Annex 
thereto, the  Commission  is authorized  to  adopt  implementing  provisions 
concerning  the form,  content  and  other details  of  the  notifications 
provided  for  in  Article  1. 

Article  3 

The  Commission  shall  place before  the  Council  a summary  of  the 
information  obtained  pursuant  to  this  Regulation. 

Article  4 

Information  forwarded  pursuant  to  this Regulation  shall  be  treated  as 
confidential.  This  provision  shall  not  prevent  the  publication  of  general 
information  or of  summaries  not  containing  particulars  concerning 
individual  undertakings. 

Article  5 

Member States shall  take  appropriate  measures to  ensure  observance  of 
the obligations arising under  Articles  1(2) and  4. 

Article 6 

Regulation  (EEC)  No  1056/72  of  the  Council  is  hereby  repealed. 

Article  7 

This Regulation  shall  enter  into  force  on the day  after  its publication  in 
the  Official  Journal  of  the European  Communities. 

This  Regulation  shall  be binding  in  its entirety  and  directly  applicable  in 
all  Member States. 

Done at  Brussels, 

For the  Council 

The  President 

ANNEX 

INVESTMENT  PROJECTS 

1.  PETROLEUM 

1.1  Refining 

1056/72 

distillation  plants with a capacity  of  not  less  than  1 000  000 
metric  tons a year; 

extension  ol~ distilling  capacity  beyond  1 000  000  metric  tons a 
year: 

reforming/cracking plants with a  minimum capacity  of  500 
metric  tons a day; 

desulphuri/ation  plants  for  residual  fuel  oils/gas 
oil/fcedstoek/other  petroleum  products. 

1215/76 

Chemical  plants which do  not  produce  fuel  oil  and/or  motor  fuels,  or 
which produce  them only  as by-products,  arc  excluded. 

1056/72 

1.2  Transport 

transfrontier  oil'pipelines  as well  as  projects  of  common  interest 
identified  under  the  guidelines  established  bv  application  of 
Article  12(->c of  the  Treaty. 

Pipelines  for  military  puiposes  and  those  supplying  plants  outside  the 
scope of  item  I I.  arc  excluded 

2.  NATURAL.  GAS 

2.1  Transport 

transfrontier  gas  pipelines  as well  as  projects  of  common 
interest  identified  under  the  guidelines  established  bv  application 
of  Article  129c of  the  Treaty. 

terminals  for  the  importation  of  liquefied  natural  gas. 

Gas pipelines  and  terminals  lor  military  purposes  and  those 
supplying  chemical  plants  which  do  not  produce  energy  products, or 
which  produce  them  only  as by-products,  arc  excluded. 

2.2  Distribution 

underground  storage  installations  with  a capacity  of  not  less 
than  150 000  000  m\ 

Installations  for  military  purposes  and  those  supplying  chemical 
plants which  do  not  produce  energy  products, or  which  produce  them 
only  as by-products,  are  excluded. 

10 

3.  ELECTRICITY 

3.1  Production 

thermal  power  stations  (generators  with  a  unit  capacity  of  200 
MW  or more): 

1215/76 

hydro-electric  power stations  (power  stations  having  a capacity 
of  50 MW or  more). 

1056/72 

3.2  Transport 

1215/76 

overhead  transmission  lines,  if  they  have  been  designed  for a 
voltage  of  345 kV or  more; 

underground  and  sub-marine  transmission  cables,  if  they  liavc 
been  designed  for  a voltage  of  100 kV or  more  and  constitute 
essential  links  in national  or  international  interconnecting 
networks. 

projects of  common  interest  identified  under  the  guidelines 
established  bv  application  of  Article  129c of  the  Treaty. 

11 

ISSN 0254-1475 

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