REPORT FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND THE ECONOMIC AND SOCIAL COMMITTEE on the operation of Council Directive 90/377/EEC concerning a Community procedure to improve the transparency of gas and electricity prices charged to industrial end-users
Date: 1996-03-15
Institutions: European Commission
Subjects: electrical energy, gas, intermediate consumption, price of energy, prices policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  15.03.1996 
COM(96)  92  final 

REPORT  FROM  THE  COMMISSION 

TO  THE  COUNCIL.  THE  EUROPEAN  PARLIAMENT 
AND  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 

on  the  operation  of  Council  Directive  90/377/EEC 
concerning  a Community  procedure  to  improve  the  transparency  of  gas 
and  electricity  prices  charged  to  industrial  end-users 

(submitted  by  the  Commission  pursuant  to  Article  8 
of  Council  Directive  90/377/EEC  of  29  June  1990) 

Summary  and  general  approach 

CONTENTS 

PART  ONE  : IMPLEMENTATION  OF  THE  DIRECTIVE 

1. 

2. 

Content  of  the  Directive 

Legal  aspects 

2.1 

Implementation 

2.2 

Amendments  to  the  Directive 

3. 

Extension  to  new  countries 

3.1 
3.2 

3.3 

The  new  Member  States 
European  Economic  Area 

Central  and  Eastern  European  countries 

4. 

Operation  of  the  Directive 

4.1 

Price  data 

4.1.1  Evaluation  of  the  situation 
4.1.2  Marker  prices 
4.1.3  Application  of  the  rules  on  confidentiality 
4.1.4  Breakdown  of  consumers  and  the  corresponding  volumes 
4.1.5  Verification  of  the  data 
4.1.6  Definition  of  the  locations 
The  price  systems 
4.2 
Publication  of  results 
5. 

PART  TWO  : ANALYSIS  OF  RESULTS 
Price  situation  and  trends 

6. 

Method  employed 

6.1 
6.2 
6.3 

Choice  of  measurement  units 
Choice  of  sample 
Incidence  of  indirect  taxation 

7. 

Analysis  of  electricity  prices  to  industrial  users  in  the  Community 

7.1 

Electricity  price  situation  and  trends  by  location  in  national  currency  on 
1  January  1985,  1990  and  1995 

(a) 
(b) 

Productivity 
Degressivity 

7.2 

Price  situation  and  trends  by  location  in  PPS 

7.2.1  Ranki ng  of  1 ocati on s 
7.2.2.  Changes  in  ranking  between  1990  and  1995 
7.2.3  Electricity  prices  in  ECU 
7.2.4  Convergence 

8. 

Analysis  of  gas  prices to  industrial  users  in the  Community 

8.1 

8.2 

Gas price situation  and trends by location in national  currency  on  1 January  1985, 
1990  and  1995 
Price  situation  and  trends  by  location  in  PPS 

8.2.1  Ranking  of  locations  on  1 January  1995 
8.2.2  Gas  prices  in  ECU 
8.2.3  Convergence 

ANNEXES 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

Council  Directive  90/377/EEC  of  29  June  1990  :  incorporation  into  national 
legislation 

(a) 
(b) 

Standard  industrial  electricity  consumers 
Standard  industrial  gas  consumers 

Yearbooks  and  "Statistics  in  focus"  published  to  date 

Electricity  prices  (net  of  taxes)  to  industrial  users  in  Germany 

Electricity  price situation  and trends by location  in national  currency  on  1  January 
1985,  1990  and  1995 

EUR  12: Electricity  prices  (net  of taxes)  to  industrial  users  in  PPS/10  MWh  on 
1 January  1995 

EUR  12: Electricity  prices  (net  of  taxes)  to  industrial  users  in  PPS/10  MWh  on 
1 January  1990 

Ranking  of  locations  in  increasing  order  of  price  on  1 January  1995 

Ranking  of  locations  in  increasing  order  of  price  on  1 January  1990 

Electricity  prices  in  ECU  per  10  MWh  per  year  on  1 January  1985,  1990  and 
1995 

Gas  prices  (net  of  tax)  to  industrial  users  by  location  in  national  currency  : 
situation  and  trends  on  1 January  1985,  1990  and  1995 

12. 

13. 

14. 

EUR  12:  Gas  prices  (net  of  tax)  to  industrial  users  in  PPS/100  GJ  on  1 January 
1995 

EUR  12: Gas  prices  (net  of  tax)  to  industrial  users  in  PPS/100  GJ  on  1 January 
1990 

Gas  prices  (net  of  tax)  to  industrial  users  in  Germany  on  1 January  1990  and  1 
January  1995 

15. 

Ranking  of  locations  in  increasing  order  of  price  on  1 January  1995 

16. 

Ranking  of  locations  in  increasing  order  of  price  on  1 January  1990 

17. 

Gas  prices  in  ECU  in  1985,  1990  and  1995 

GRAPHS 

I. 

II. 

Electricity  prices  1985,  1990  and  1995  : comparison  between  the  PPS  and  ECU 
values  at  a  sample  of  14  locations 

Gas  prices  1985,  1990 and  1995  : comparison  between  the PPS  and  ECU  values 
at  a  sample  of  12 locations 

SUMMARY  AND  GENERAL  APPROACH 

This  summary  report  on  one  hand  the  operation  of  the  Price  Transparency  Directive  is 
the second  of its kindr).  It analyses  implementation  of Council  Directive 90/377/EEC  of 
It  was  written  to 
29 June  1990  and  on  the  other  hand  it  compares  price  evolution. 
comply  with  Article  8 of  the Directive. 

Part  One  of  this  report,  concerning  implementation  of  the  Directive,  describes  the 
difficulties  encountered  by the Commission  with its application.  The Member  States will 
be  asked  individually  to  improve  the  conditions  for  collecting  the  data  to  ensure  full 
compliance  with  the  submission  dates.  The increasing  number  of  countries  participating 
in the  survey  makes  it less and  less  acceptable  for  negligence  or  tardiness  on the  part of 
a  single  Member  State  to block  publication  of  the  results. 

The Commission  will  examine, with the experts on the Working Party  on Energy  Prices, 
the  improvements  to  be  made  to  operation  of  the  Directive  based,  in  particular,  on  the 
lessons learned  from  the price comparison.  The accent will  be placed  on obtaining  more 
reliable  and  more  representative  prices. 

In  response  to  the  difficulties  encountered  with  obtaining  the  breakdown  referred  to  in 
point  3  of  Article  1 of  the  Directive,  the  report  contains  new  proposals  to  redefine  the 
limits for  application  of the consumer  categories.  A particular effort  will  also have to be 
made  to  define  the  content  of  the  notifications  on  the  price  systems,  as  provided  for  in 
point  2  of  the  same  Article. 

As regards  the  marker  prices, the Commission  draws the Member  States' attention  to the 
urgent  need  to  reach  agreement  within  the  group  of  experts  on  the  definition  of  the 
demand  characteristics  of  the  notional  consumer  to  which  the  marker  price  applies,  in 
accordance  with  the  second  paragraph  of  point  15  of  the  Annex  on  electricity,  and  to 
meet  the  obligations  imposed  by  points  16  to  21  of  the  same  Annex  concerning 
notification  of  the  representative  special  factors  and  price  reductions,  of  the  number  of 
consumers and of total  consumption by category.  Without these details, the marker prices 
will not reflect  the prices actually  charged  to the relevant consumers and will  be unusable 
for  analysis  purposes. 

As in  the  past,  the  SOEC  will  continue  to play  its information  role  for  the Directive.  It 
will  study means of checking the reliability  of the data obtained from  the  communications 
provided  for  by  the  Directive  and,  where  necessary,  conduct  direct  surveys  of  certain 
consumers. 

The  geographical  coverage  of  the  Directive  has  improved,  particularly  in  Germany  and 
with  the  extension  to  the  new  Member  States,  although  gaps  remain  in  other  cases. 

Electricity  prices  are  transparent  enough,  but  gas  prices  to  the  biggest  consumers,  by 
contrast,  have  become  less  transparent.  The  Commission  will  ask  the  experts  to  study 
the  causes  in  order  to  remedy  this  deterioration. 

( +) 

See  COM(93)666 final of  16 December  1993. 

in  price  notifications  from 

The  Commission  is also concerned-about the drift  towards  making the  exemption  on  the 
In 
grounds  of  commercial  confidentiality  the  rule,  to  the  detriment  of  information. 
particular,  there  has  been  a  fall 
the  locations  where 
liberalization  has  produced  a proliferation  of  suppliers  and  the  ensuing  fragmentation  of 
the market.  More and more often  no single supplier musters the three consumers  required 
in  a given  category  in  order  to lift  the exemption  on  confidentiality  grounds  and  publish 
the  corresponding  price.  It  should  be  made  clear  that  the  three  consumers  rule  applies, 
of  course,  to  the  location,  not  supplier.  The  Commission  warns  against  this  drift  since 
transparency  remains  essential,  whatever  the  regulatory  framework  or  howsoever  the 
market  is  organized. 

*  *  * 

Part Two of the report analyses the price data collected by the SOEC under the Directive. 
It  is  restricted  exclusively  to  the  gas  and  electricity  prices  submitted  under  Article  8 of 
the  Directive. 

In  the  context  of  the  negotiations  in  progress  on  the  internal  gas  and  electricity  market, 
the  political  importance  of  this  analysis  lies  in  the  fact  that  it  answers  many  questions 
arising,  particularly  on  electricity  and  gas  price  trends  and  any  possible  convergence. 

In  this  respect,  although  no  significant  price  changes  have been  recorded  since  the  last 
report,  sharp  currency  fluctuation  has brought far-reaching  changes  to the relative  prices 
between  the Member  States. 

This  part  of  the  report  examines  the  price  movements  in  each Member  State  in  national 
currency  first,  in  order  to  establish  the  trend,  and  then  makes  comparisons  in  terms  of 
purchasing  power  standard  (PPS),  which  provides  a  means  of  removing  the  distortion 
caused  by  fluctuations  in  currency  parities.  The  trends  observed  from  the  PPS 
comparisons  closely  match  the  comparisons  of  the  ECU  prices.  Tables  setting  out  the 
ECU  prices  are  annexed. 

Throughout  the  Community  electricity  prices  fell  slightly,  in  real  terms,  between 
January  1985 and January  1995.  Gas prices, by contrast, fell  considerably,  following  the 
world  price  trend  for  energy  in  general  and  for  oil  products  in  particular. 

The  falling  electricity  prices  reflect  the  productivity  gains  obtained  from  industrial 
restructuring, the introduction  of new generating technologies, such as combined heat and 
power  production,  and  other  new  marketing  and  management  methods  (demand  side 
management  and  integrated  resources  planning). 

With  the exception  of Germany,  a marked  convergence  of gas prices  was observed  in all 
Member  States.  By  contrast,  the  spread  of  electricity  prices  has  widened,  which  could 
indicate  greater  inertia  in  the  electricity  industry  than  in  the  gas  sector  in  response  to 
competition.  However,  in  several  Member  States  the biggest  typical  consumers  qualify 
for  low  electricity  prices  which  are  relatively  similar.  These  prices  are  closer  together 
in central,  frontier  regions of the Union,  where the tariffs  and  price structures  seem  to be 
designed  to offer  competitive  prices  to big  consumers.  Beyond  doubt,  this  must be seen 
as one  result  of  the  pressure  exerted  on  electricity  generators'  pricing  by  the  opening-up 
of  the  internal  market  in  industrial  products. 

In  some  cases,  this  has  been  done  without  taking  account  of  the  generator's  real  cost 
structure  and,  hence,  to  the  detriment  of  small  consumers,  as  indicated  by  the  widening 
gap  between  the  maximum  and  minimum  prices in the  sample.  This  cross-subsidization 
is  even  more  marked  in  the  gas  industiy,  where  the  gaps  between  the  maximum  and 
minimum  prices  in  the  sample  are  wider  than  for  electricity.  They  would  have  been 
wider  still  had  data  been  available  for  the largest  consumer  in  the  sample. 

At  Community  level,  the  interval  between  the  maximum  and  minimum  prices  for  the 
entire  sample  of  industrial  users  gave  a factor  of  5 for  electricity  and  of  6.5  for  gas  in 
January  1995.  This  is bigger  than  can be  reasonably  explained  by  economic  causes  and 
can  only  stem  from  national  and  even  regional  fragmentation  of  the  markets.  This 
phenomenon  is  particularly  marked  in  Germany,  where  the  price  spread  is  even  wider 
than  in the Community  as a whole in the case of gas and  covers the whole of the top half 
of the  Community  sample  in  the case of  electricity.  In  some  cases, this  situation  is also 
a  sign  of  uneconomic  investments  or  deficient  industrial  structures. 

The  publication  of  prices  provided  for  by  the  Directive  possibly  prompted  adjustments 
of prices too far  from  the  norm.  It does not seem  capable,  on its own,  of bringing  about 
any  significant  convergence  of prices until  the grid-based  energy  markets  are opened  up 
to  competition.  These  conclusions  illustrate  the  role  which  price  transparency  can  play 
in  detecting  anomalies  likely  to hamper achievement  of the energy  policy  objectives  and 
completion  of the  internal  energy  market  or to  damage  consumers'  interests. 

The  Commission  will  continue  its  efforts  within  the  group  of  experts  to 
improve  price transparency  and  obtain  the exhaustive  breakdown  of  consumers 
by  categories 
in  every  Member  State  and  full  submission  of  the  data 
concerning  the  marker  prices,  with  a  view  to  making  the  tariff  systems,  the 
supply  conditions  and  the  format  of  the  price  data  more  homogeneous  to  allow 
optimum  comparability.  This  approach  is  in  line  with  the  conclusions  reached 
in  the  first  report  on  operation  of  the  Directive,  which  still  apply  (cf.  p.  6  of 
document  COM(93)666  final  of  16  December  1993). 

It  will  also  examine  the  need  to  amend  the  Directive  in  order  to  clarify  the 
concepts  of  "consumer  categories"  and  "location"  and 
the 
geographical  coverage  of  the  Directive. 

improve 

PART  ONE 

IMPLEMENTATION  OF  THE  DIRECTIVE 

Content  of  the  Directive 

Council  Directive 90/377/EEC of 29 June  1990 established  a procedure  requiring 
the  Member  States  to  communicate  to  the  Statistical  Office  of  the  European( 
Communities (SOEC) the prices of gas and electricity  to industrial  users, the price 
systems  in  use,  the  breakdown  of  consumers  and  the  corresponding  volumes. 

The  data  on  prices,  price  systems  and  tariffs  are  assembled  on  1 January 
and  1 July  each  year  and  sent  to  the  SOEC  for  publication  in  May  and 
November  respectively.  These  data  have  been  collected  following  the 
procedure  laid  down  in  the  Directive  since  1 July  1991. 

The breakdown  of industrial  consumers and the corresponding volumes are 
submitted  every  two  years.  These  data  are  covered  by  the  rules  on 
commercial  confidentiality  and  may  not  be  published  directly.  They 
enable the SOEC to calculate the weighted  average prices ai<d the national 
and  Community  price  indices,  which  may  be  published. 

2. 

Legal  aspects 

2.1 

Implementation 

Every  Member  State  has  incorporated  the  Directive  into  its  national  law,  except 
Spain, against which  an infringement  procedure has been initiated  for this  reason. 
Nevertheless,  this  gap  in  the  legislation  has  not  prevented  regular  submission  of 
full  data by the  Spanish  administration.  Details of the national  measures  adopted 
to  implement  the  Directive  are  set  out  in  Annex  1. 

2.2 

Amendments  to  the  Directive 

The Commission  has started the procedure to amend the Annexes to the Directive 
to transfer  Berlin  from  the North/Central  Zone  to the Eastern  Zone.  In  practice, 
the  notifications  for  Berlin  have  taken  this  into  account  since  1 July  1993.  The 
amendment  is  about  to be  published  in  the  Official  Journal. 

3. 

Extension  to  new  countries 

3.1 

The  new  Member  States 

The  accession  of  three  new  countries  to  the  European  Union  has  prompted  the 
addition  of  new  locations  to  the  Annexes  to  the  Directive.  This  automatic 
technical  adjustment  was  contained  in  the  Act  of  Accession.  The  locations  are 
Vienna,  Upper  Austria  and  Tyrol  in  Austria  and  the country  as a whole  (national 
price)  in  the  case  of  Finland  and  Sweden.  It  is  fair  to  ask  how  representative 
these national  prices are for  these two competitive markets.  The first  notifications 
were  submitted  to  the  SOEC  by  the  dates  stipulated. 

3.2 

European  Economic  Area 

The Treaty  on the  European  Economic  Area  likewise  provides  for  submission  of 
the data  provided  for  by  the  Directive to the  SOEC.  In  practice,  only Norway  is 
under  this  obligation,  as  both  Iceland  and  Liechtenstein  are  exempted.  Norway 
has  started  to  transmit  data  to  the  SOEC  already.  The  data  for  the  enlarged 
Community  plus  Norway  will  be  given  in  forthcoming  SOEC  publications. 

3.3 

Central  and  Eastern  European  countries 

The  Commission's  White  Paper  on  approximation  of  the  legislation  of  the 
countries  of  Central  and  Eastern  Europe provides for  applying the most  important 
Community  legislation  on  energy  to  these  countries.  The  Directive  on  the 
transparency  of  gas  and  electricity  prices  is  one  of  the  key  measures  mentioned. 

4. 

Operation  of  the  Directive 

Collaboration between the SOEC and the national bodies responsible for  collecting 
the  data  in  the  Member  States  has  been  satisfactory.  The  national  experts  have 
been  tackling  the  practical  problems  created  by  the  technical  and  commercially 
sensitive  nature  of  the  work  with  a  will  to  succeed,  although  this  does  not 
necessarily  mean  that the  solutions  offered  have  always been  the  fastest  or  most 
satisfactory. 

4.1 

Price  data 

4.1.1  Evaluation  of  the  situation 

All  the  data  on  electricity  prices  have been  received  and  published,  except  in  the 
case  of  the  United  Kingdom,  where  full  data  are  available  for  London  only.  In 
the  case of  gas, it  is becoming  increasingly  difficult  to obtain  data  on the biggest 
typical  consumers.  The  SOEC  had  received  only  two  figures  for  the  entire 
European  Union  in January  1995.  Also, the  submission  dates set in the Directive 
are  not  always  observed,  leading to  delays  in  publication  of  "Statistics  in  focus" 
(formerly  "Rapid  reports"). 

4.1.2  Marker  prices 

The  marker  prices  required  by  Part  II  of  the  electricity  annex  to  the  Directive 
apply  to  consumers  with  maximum  demand  above  the  volume  set  for  typical 
reference  consumers  (i.e.  above  10 MW).  They  apply  to  three  categories  of 
industrial  consumer  with  maximum  demand  in  the  region  of: 

25 MW,  covering  consumers with  maximum  net demand  of between  17.5 
and  37.5  MW, 
50  MW  (maximum  net  demand  of  between  37.5  and  62.5  MW),  and 
75  MW  (maximum  net  demand  of  between  62.5  and  75.0  MW). 

These  marker  prices  are  available  from  nine  Member  States  but  not  from 
Denmark,  Ireland  and  Luxembourg,  which  have  fewer  than  the  three  consumers 
in each  category  provided  for  in the Directive.  Member  States' attention  is drawn 
to  the  fact  that  once the  number  of  consumers  in any  category  reaches  three  (the 
point  at  which  the  confidentiality  clause  ceases  to  apply),  submission  of  the  data 
becomes  compulsory  with  effect  from  the next submission  date, without  any need 
for  a reminder  from  the  SOEC. 

Some Member  States have yet to define  the  supply  characteristics  which  apply  to 
the  marker  price  (load  factor,  distribution  between  peak  and  off-peak  periods, 
etc.).  Without  these  details,  the  SOEC  is  unable  to  guarantee  that  the  data  are 
homogeneous.  The  same  applies  to the  special  factors  specified  in  paragraph  17 
of  the  electricity  annex  which  may  be  applied  to  reduce  prices  and  of  which 

notification  must  be  given  as  provided  for  in  paragraph  18  of  the  Annex.  The 
Commission  departments  concerned  will  examine,  with  each  Member  State 
concerned,  the  obstacles  to  regular  submission  of  this  information  and  ways  of 
improving  the  quality  of  the  information  published. 

4.1.3  Application  of  the  rules  on  confidentiality 

The growing  difficulties  encountered  in certain  Member  States with  collection  of 
the  prices  stem  largely  from  misapplication  of  the  rules  on  confidentiality  in 
paragraph  20  of the Annex  on gas  and  paragraph  19 of the  Annex  on  electricity. 
In  practice,  the  immediate  consequence  of  liberalization  of  a  national  electricity 
or  gas  industry  is to increase  the  number  of  transactions  with  different  suppliers 
in  a  given  region,  thus  making  it  increasingly  difficult  to  find  three  consumers 
supplied  by  the  same  distributor. 
It  must  be  remembered  that  the  Directive 
stipulates  that there must be at least three consumers  per category  in the  Member 
State  or  region  concerned,  but  makes  no  mention  of  extending  this  clause  to 
distributors.  Were  this  rule  applied,  no  prices  could  be  communicated  from 
regions  where  there  are  several  distributors  each  with  fewer  than  three  clients in 
any  one  category. 

By  way  of  example,  of  the  four  locations  selected  in  the  United  Kingdom,  only 
London  provided  a full  set of electricity  prices in January  1995.  Real  price trends 
(in  purchasing  power  standard  (PSS))  in  London  show  a general  reduction  from 
la to Ig1 between  1990 and  1995 (Ih and Ii were not submitted  for  January  1990). 
This  ranges  from  a maximum  reduction  of  20.8% in  the  case  of  Ic  to  12.1% for 
Ig, 8%>  for  la and lb, and around 4% for Id and If.  However,  comparison with the 
few  comparable  data  available  for  the  other  locations  reveals  different  trends: 
Leeds  reported  increases  of  6.2%  for  la  and  9%  for  lb  and  a  reduction  of  just 
1.8%  for Id and of 9.5% for  Ig.  In Birmingham  prices generally  increased,  except 
for  a  17.3%) reduction  for  Ig.  In  Glasgow  there  was  an  11%  increase  for  la  and 
lb,  the only  consumers  for  which  prices have been  submitted  since July  1994.  A 
particular  effort  will  have to be  made at these  locations to meet  the  requirements 
of  the  Directive. 

In the Member  States with  a competitive market  on which  prices are fixed  freely, 
a national  average  price  fails  to  reflect  the  diversity  of the  prices  or to  attain  the 
principal  objective  declared  in  the  first  recital  of  the Directive,  which  states  that 
"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  smooth  functioning  of  the  internal  energy  market."  This  implies  that  a 
sufficient  number  of  price  surveys  are  needed  to  make  it  possible  to  check  that 
these conditions have indeed  been  met.  The Working Party  on Energy  Prices will 
examine,  in  concertation  with the Commission,  means of supplementing  the price 
data  without  endangering  the  undertakings'  trade  secrets. 

4.1.4  Breakdown  of  consumers  and  the  corresponding  volumes 

Cf.  Annex  2,  page  28. 

The breakdown of consumers and the corresponding volumes provided  for in point 
3  of  Article  1 of the  Directive  creates  problems  because  in  some Member  States 
the  structure  of  the  undertakings'  customer  files  allows  no  such  breakdown. 

to 

in 

the 

survey 

participants 

As  the  Directive  provides  no  definition  of  the  categories  of  consumption,  the 
SOEC  attempted  to  align  them  on  the  typical  consumers  (see  the  note  from  the 
SOEC 
of 
Directive  90/377/EEC).  However,  it must be emphasized  that  Article  1 gives  no 
definition  of  the  categories  and  does  not  preclude  setting  other  limits  for  the 
categories  covered  by  the  breakdowns.  As  experience  has  shown  that  it  is 
extremely  difficult  to  make  the  categories  coincide  with  the  typical  consumers, 
there  is  nothing  to  prevent  the  Commission  from  proposing  re-examining  this 
point within the working party in order to find  a formula  for obtaining  satisfactory 
information  without  impairing  transparency. 

concerning 

application 

In  practice,  although  point  3  in  Article  1 clearly  defines  the  consumers  as  those 
defined  in the annexes, it does not say what is meant by breakdown  of  consumers 
or  what  the  limits  are  for  the  individual  categories.  Consequently, 
the 
Commission  considers  that  the  data  provided  for  in  point  3  of  Article  1  could 
equally  well  apply  not  to  the  typical  consumers  (who,  by  definition,  cannot  be 
taken  as the  limits  for  the  categories)  but  to  other  types  of  sale  (for  example,  to 
small,  medium-sized  and  big  industrial  undertakings),  which  would  enable  the 
SOEC  to  calculate  the  average  selling  prices.  This  assumes  submission  of  the 
volumes  marketed  in  each  category  and  of  the  corresponding  revenue.  The 
Commission  will  put this interpretation to the Member  States within  the Working 
Party  on  Energy  Prices  in  order  to  ensure  the  earliest  possible  introduction  of 
these notifications,  which  are essential  for  calculation  of the weighted  prices  and 
of  the  national  and  Community  price  indices. 

4.1.5  Verification  of  the  data 

One  loophole  often  pointed  out  is the  lack  of  means  for  the  SOEC  to  check  the 
accuracy  of  the information  received.  As part of its task  of observing the  energy 
market,  the  Commission  could  consider  the  possibility  of  enlisting  specialists  to 
conduct random  surveys of consumers in order to check the accuracy of the prices 
collected. 

4.1.6  Definition  of  the  locations 

In order to reflect  consumers' real position  as accurately  as possible, the prices are 
recorded  at  a  single  location  wherever  possible  rather  than  giving  the  average 
prices  per  country.  These  locations  can  be  a  city,  conurbation  or  distribution 
network,  as  appropriate. 

The choice of location  is based  on how representative it is, in terms of  population, 
economic  importance,  even  geographical  coverage of the country,  different  tariff 
districts  and  harmonization  with  the locations  used  for  the  prices  of  other  energy 
sources  to  allow  comparisons.  Consideration  could  be  given  to  including  this 
definition  in  the  annexes  to  the  Directive,  where  appropriate. 

4.2 

The  price  systems 

11 

Although 
the  notifications  of  the  price  systems  are  regular  enough,  the 
transparency  of  the  price  systems,  on  the  other  hand,  should  be  improved.  In 
particular,  analysis  has shown  that the  standards  of information  are  not the  same 
in every  Member  State.  The  SOEC  has published  guidelines  on  ways of  making 
the  data  supplied  more  consistent,  with  the  cooperation  of  the  experts  on  the 
working  party.  The  tariff  and  price-setting  arrangements  vary  widely  from  one 
location  to  another.  Sometimes  the  prices  are  based  on  tariffs,  sometimes  on 
standard  contracts  containing  terms  allowing  a degree  of  flexibility. 

5. 

Publication  of  results 

The  information  collected  by  the  SOEC  under  the  Directive  is  published  in  the 
"Rapid  reports:  Energy  and  industry"  series and,  since  1995, in  the  "Statistics in 
focus"  series.  Five yearbooks  on energy  prices have also been  published  in series 
4C (energy  and  industry)  since the Directive  entered  into force.  See Annex  3 for 
a  list  of  publications. 

The energy prices yearbooks cover a wider field than the Directive.  They  provide 
long  time  series  placing  the  electricity  and  gas  prices  to  domestic  and  industrial 
users in their historical  context, together with  series covering all fuels,  particularly 
coal, heating gas oil  and residual  fuel  oil, with which  electricity  and  gas compete. 
They also contain  abundant  information  on the methods and units used  and on the 
incidence  of taxation  on these products.  Finally,  they provide  useful  information 
on  consumer  price  index  and  GDP  trends  in  the Member  States. 

12 

PART  TWO 

ANALYSIS  OF  RESULTS 

Price  situation  and  trends 

6. 

Method  employed 

6.1.  Choice  of  measurement  units 

Two  reference  units  can be  used  for  price  comparisons  between  Member  States: 
the  ECU  or  the  PPS  (purchasing  power  standard).  Each  has  its  own  merits, 
depending  on  the  objective  of  the  comparison. 

The  PPS  is  a  reference  unit  based  on  the  purchasing  power  parities  between  the 
different  national  currencies,  irrespective  of  variations  in  currency  parity.  The 
purchasing  power  parities  are obtained  from  the average  price  ratios between  the 
different  countries  for  the  same basket  of goods  and  services.  These  parities  are 
scaled  to  keep  the  value  of  the  Community's  GDP  the  same  in  PPS  as  in  ECU. 

Comparison  of  the  ECU  and  PPS  prices  between  Member  States  shows  that  no 
currency  corresponds  exactly  to  the  purchasing  power  attributed  thereto.  This 
phenomenon  reflects  the  overvaluation  or  undervaluation  of  every  national 
currency.  The PPS/ECU ratios in Table  1 indicate the order  of magnitude of this 
relative  overvaluation  or undervaluation  of each  national  currency.  If the ratio is 
over  100, the currency  is strong and  general  price levels  high.  If it is under  100, 
the currency  is weak and price levels low, as confirmed  by the differences  in GDP 
values between Member  States, expressed in ECU.  When the prices are expressed 
in  ECU,  the  countries  with  an  overvalued  currency  are at  a disadvantage  as their 
prices appear  higher than they really are, whereas the opposite applies to countries 
with  a weak  national  currency.  These  distortions  can  be  corrected  by  expressing 
the  prices  in  PPS  which  removes  the  currency  overvaluation  or  undervaluation 
element  inherent  in  the ECU  prices. 

PPS  and  ECU  values  in  national  currency  on  1 January  1990  and  1 January  1995 

Table 1 

Jan-90  B 

PPS 

ECU 

42.41 

42.61 

DK 

10.1 

7.88 

D 

2.25 

2.04 

GR 

151 

190 

E 

F 

IRL 

117.7 

132 

7.1 

6.9 

0.74 

0.77 

IT 

1514 

1514 

L 

42.69 

42.62 

NL 

2.33 

2.29 

PPS/ECU 

99.53 

128.17 

110.29 

79.47 

89.16 

102.89 

96.10 

100 

100.16 

101.74 

P 

111.5 

179 2 

62.22 

UK 

0.656 

0.728 

90.10 

13 

Jan-95 

B 

DK 

D 

GR 

E 

IPS 

ECU 

40.28 

39.16 

9.43 

2.28 

7.49 

1.90 

PPS/ECU 

102.9 

125.9  120.0 

231.6 

295.7 

78.3 

130.37 

164.52 

79.2 

107.3 

F 

7.05 

6.57 

IRL 

0.71 

0.8 

88.8 

IT 

1693.38 

1999.01 

84.7 

L 

43.11 

39. lo 

110.0 

NL 

2.29 

2.13 

107.5 

P 

UK 

133.25 

196.13 

67.9 

0.69 

0 79 

87.3 

A second  problem  is that the differences  in general  price levels between  countries 
at  a  given  time  cannot  reflect  the  differences  between  the  prices  for  each 
individual  product  as  there  is  only  a  cingle  exchange  rate.  It  therefore  follows 
that  the  prices  converted  into  nominal  values  at  the  market  exchange  rates  are 
distorted because, the currencies are under the influence  of factors  independent  of 
national  price movements.  Calculation  of the purchasing  power  parities  provides 
a  means  of  re-establishing  the real  prices.  Use  of  PPS  is  all  the  more  important 
in  comparisons  of  electricity  and  gas  prices, where the  consumer  markets  for  the 
products  are  closed. 

Owners  of  plants  in  different  Member  States  who  wish  to  compare  the 
consolidated  cost  of  supplies  to the  different  plants  in  the group  will  express  the 
prices  in  ECU  or  in  any  national  currency.  However,  the  ECU  and  national 
currencies  fluctuate  constantly,  under  the  impact  of  variations  in  the  currency 
parities.  Consequently,  owners  will  prefer  to  use  the  PPS  to  compare  the 
economic  value  of  supplies  of  goods  and  services  to  each  of  their  plants,  since 
this  provides  a  means  of  obtaining  comparable  values  cleared  of  all  factors 
associated  with  currency  fluctuations. 

6.2.  Choice  of  sample 

A choice  had  to be  made  from  the 33 locations  covered  by  the  electricity  survey 
(excluding  the  new  Member  States)  to  keep  the  report  reasonably  readable. 
Consequently,  14 locations  were  selected  as  suitably  representative  and  offering 
complete  price  series. 

One  location  per  Member  State  was  chosen  from  Italy,  Ireland,  Belgium, 
Luxembourg  and  Greece,  all  of  which  apply  a  standard  nationwide  tariff,  and 
where,  therefore,  the choice  of locations  poses no problem.  In  France, Paris  was 
considered  representative  of  the  French  market,  where  there  are  only  minimal 
differences  between  locations.  In the case of the United  Kingdom,  only  London 
was  selected  as  no  other  location  had  provided  full  series  of  data.  Only  Lisbon 
was chosen  in Portugal  for  the same reasons.  Of course these choices dictated by 
purely methodological  considerations in no way prejudice the importance,  stressed 
throughout  this  report,  of  keeping  as many  locations  as  possible  in  the  survey. 

In  Germany  and  the Netherlands  no  single  location  could  reflect  the  diversity  of 
electricity  prices.  The  locations  which  most  frequently  recorded  the  lowest  and 
highest  prices  in  the  sample  and,  hence,  embrace  all  the  others  were  therefore 
chosen.  In  the  Netherlands,  this  choice  was  dictated  by  the  price  gap  between 
Rotterdam  and  North  Brabant,  while  in  Germany  the  main  reason  was  the  large 
number  of  locations  (11)  and  the  price  scatter. 

14 

Annex  4  shows  electricity  prices  in  Germany  in  1995  and  1990  expressed  in 
national  currency  (DM/10 MWh).  The progress on transparency  can be seen  from 
the  increased  number  of  locations  covered  and  from  the  fact  that  the  1995  table 
is  complete,  whereas  over  half  the  data  were  missing  in  January  1990.  The 
intervals  between  the  maximum  and  minimum  prices  at  each  location  vary 
between  a factor  of  2.3  and  3, slightly  above  the  Community  average  (2)  except 
in  Dusseldorf,  where  it  is  3.95  because  of  the  abnormally  high  price  to  the 
smallest  consumer,  67% higher  than  the  price  to  consumer  lb. 

The extremely  complex  price  structures  at the German  locations  make it  difficult 
to  sum  up  the  situation  as regards  electricity  prices  to  industrial  users.  Prices in 
Hamburg  are  amongst  the  highest  in  the  Community,  behind  only  Portugal  and 
Spain  (from  le upwards).  By contrast,  prices are close to the Community  average 
in  the  Western  Zone  and  in  the  Southern  Zone,  particularly  for  categories  le,  Id 
and  If.  Compared  with  other  locations  in  the  Community,  prices  in  Germany 
range  between  the  Community  average  and  the  highest  prices. 

One  point  to  note  is  that  all  the  prices  in  the  new  Lander  lie  between  the 
maximum  and minimum  prices in the old Lander, a sign of satisfactory  integration 
of the tariffs.  In Leipzig and Rostock,  for  example, prices to categories Ig, Ih and 
Ii  are  amongst  the  most  moderate. 

6.3. 

Incidence  of  indirect  taxation 

Since  in  most  cases  indirect  taxes  are  deductible  by  industry,  their  impact  was 
considered  negligible  and  the  study  was  restricted  solely  to  the  prices  net  of  all 
taxes  based  on  application  of  the  tariffs  and  contracts. 

7. 

Analysis  of  electricity  prices  to  industrial  users  in  the  Community 

The  tables  in  Annex  5 show  the  price  trends  for  the  14 locations  in  the  sample. 
As  no  comparison  is  made,  the  prices  could  be  expressed  in  national  currency. 
The objective  is to compare the situation before  and after  the Directive.  The dates 
of  1 January  1985,  i990 and  1995 were chosen,  as ten years was considered  long 
enough  to  show  the  long-term  trend.  The tables  also include  the  consumer  price 
indices (CPI) and GDP index.  The consumer price indices are the monthly  values 
on  1 January  each  year.  The  GDP  index  is  an  annual  value,  calculated  on  the 
basis  that  1985=100.  Comparison  of  the  price  trends  with  the  consumer  price 
index  gives  an  indication  of  the  productivity  gains  or  losses  in  the  electricity 
industry.  The  ratio between  the  maximum  and  minimum  prices  at  each  location 
in  turn  allows  assessment  of  how  the tariff  burden  is  spread  between  consumers. 

7.1.  '  Electricity  price  situation  and  trends  bv  location  in  national  currency  on 

1 January  1985.  1990  and  1995 

As  a  result  of  the  Directive,  progress  has  been  made  with  improving  the 
transparency  of electricity  prices, since the number of locations has increased  and, 
for  the  first  time,  full  data  are available  for  at least  one location  in  each  Member 
In  contrast  to  gas,  the  falling  world  market  prices  for  primary  energy 
State. 

15 

sources  have  exerted  no  downward  pressure  on  electricity  prices.  This  is  one 
factor  which  must  be  borne  in  mind  when  assessing  productivity  trends. 

(a) 

Productivity 

A  rough  estimate  of  the  productivity  improvements  in  the  electricity  sector  can 
be  obtained  by  comparing  electricity  price  and  CPI  trends.  If  prices  are  rising 
slower  than  the  CPI  it can  be assumed  that  progress  has been  made.  In  practice, 
a general  improvement  can be observed,  except in Hamburg  and  Spain where the 
relative deterioration  in prices could be due to a deterioration  in the cost  structure 
and  in  Italy  where,  by  contrast,  the  price  increases  reflect  a  drive  towards  truer 
pricing  with  a view  to  privatization.  In  Portugal,  Greece  and,  to  a  lesser  extent, 
the  United  Kingdom,  where  inflation  was  high,  the  price  increases  were  well 
below  the  increase  in  the  CPI.  At  the  low-inflation  locations,  the  biggest 
productivity  improvements  were  in  Denmark,  Ireland,  the  Netherlands  and 
Luxembourg.  Moderate  progress  was  made  in  Belgium,  the  Western  Zone  of 
Germany  and  France. 

This progress  stems  partly  from  passing  on the  reductions  in  the  cost  of  primary 
energy  supplies  in  the tariffs  and  partly  from  the  introduction  of  new  generation 
technologies (gas/steam turbines) or of improved business management  techniques 
(integrated  resources  management).  Finally,  some  of  the  national  electricity 
industries  have  been  liberalized  and  had  to  be  restructured  to  make  them  more 
competitive. 

(b) 

Degressivity 

The  interval  between  Ii  and  la  (the  minimum  and  maximum  prices  at  each 
location  in  the  sample)  provides  a measure  of  degressivity.  If  the  factor  is very 
high,  the  tariff  is  highly  degressive  and  it  can  be  assumed  that  the  costs  are  not 
shared  evenly  between  consumer  categories  but  to  the  advantage  of  big 
consumers.  On  1 January  1995  this  was  the  case  in  Italy  (coefficient  of  3.36), 
Belgium  (3.25), Luxembourg  (3.21) and Ireland  (2.77).  Conversely,  a  coefficient 
below  the  average  for  the  sample  is  a  sign  of  a  tariff  particularly  favourable  to 
small  consumers,  as  in  London  (1.88)  and  Rotterdam  (1.90).  At  all  the  other 
locations, this coefficient  is slightly  over 2:  Spain (2.12), Greece (2.14), Portugal 
(2.18), Paris (2.22), Hamburg (2.27) and Western Zone of Germany (2.46).  Prices 
in Denmark,  with  a coefficient  of  1.26,  stand  out  amongst all  the others,  not only 
because  they  are  the  lowest  but  also because  of  the  gentle  price  curve  which,  in 
turn,  suggests  that  the  position  is very  different  from  at  the  other  locations. 

Whether  upward  or  downward,  the  price  movements  between  1985  and  1995 
favoured  the biggest  consumers,  above all  in Belgium,  Ireland,  Luxembourg  and, 
even  more  so, Italy.  By contrast, the increases were shared  more  evenly  between 
all  consumers  in  Hamburg,  the  Western  Zone  of  Germany,  Greece,  Spain  and 
Portugal  and tended  to favour  small  industrial  consumers  in Denmark  and France. 
In  the Netherlands,  restructuring  hit  small  consumers  during  the  first  period,  but 
this  was  corrected  during  the  second.  In  London,  restructuring  of  the  tariff  put 
an  end  to  one  anomaly  in  the  degressive  scale  and  restored  the  differentials 
between  la,  lb  and  Ic to  normal  proportions. 

16 

7.2. 

Price  situation  and  trends  bv  location  in  PPS 

Annexes  6  and  7  provide  an  overview  of  electricity  prices  (net  of  all  taxes)  to 
industrial  users  in  the  Community  on  1 January  1995  and  1 January  1990, 
expressed  in  PPS.  These  tables  allow  comparisons  between  different  locations. 
In  both  1995  and  1990  Danish  consumers  paid  the  lowest  PPS  prices  in  the 
sample  and  Portuguese  consumers the  highest.  These  countries  clearly  mark  the 
two opposite ends of the scale, with all the other prices therefore between  the two. 

The first conclusion  is that  price trends between  1990 and  1995 differed  far  more 
in  terms  of  purchasing  power  than  of  monetary  parity,  although  they  remained 
within moderate limits, with one or two exceptions.  These were in North  Brabant 
(with  an  increase  of  30.7% for  Ic and  a reduction  of  19.4% for  la),  followed  by 
Rotterdam  (25% reduction  for  lb) and Italy  (19.0% increase for  la).  All the other 
price  movements  observed  were  smaller.  The  analysis  ends  at  Ig  since  no  data 
were  available  for  Ih  and  Ii  in  January  1990. 

Compared  with  1 January  1990,  on  1 January  1995  moderate  increases  or 
reductions  were  observed  at every  location,  with  the  average  trend  for  the  entire 
sample  downward,  matching  the trend  in  national  currency.  Increases  of  around 
10%  or  lower  were  recorded  in  Belgium,  France,  Ireland,  Italy,  Portugal  and 
Hamburg.  Reductions  on  the  same  scale  were  observed  in  the Western  Zone  of 
Germany,  Greece, Luxembourg and London  (the data for the other locations in the 
United Kingdom  were incomplete).  There were ups and downs in Denmark, with 
the prices  falling  up  to  Id  and  increasing  from  le  on.  In  Spain,  the  opposite  was 
observed,  with  increases  for  la  and  lb  and  small  reductions  for  the  others. 
Finally,  in  the  Netherlands  restructuring  of  the  tariffs  brought  big  reductions  or 
increases for  all consumers as costs were transferred  from  one category to another. 

At every  location  the PPS prices followed  the same curve as the prices in  national 
currency,  except  in  Denmark,  where  they  showed  transfers  of  costs  between 
consumers,  in  Greece,  where  they  reflected  a  relative  fall  in  the  PPS  prices  and 
Ireland  where  prices  held  steady  in  national  currency  but  rose  in  PPS,  showing 
that  they  had  become  higher  in terms  of  purchasing  power. 

Price  rises  over  the  report  period  generally  remained  below  inflation,  with 
numerous  examples  of restructuring  of the tariffs  reflecting  the concern  to  adjust 
prices  to  the  demand  profile. 

At  many  locations,  electricity  prices  were  widely  scattered  in  the  case  of  small 
consumers  but  converged  towards  the  same  low-price  range  as  consumption 
increased.  This  could  suggest that  producers  set their  tariffs  to keep  prices to big 
consumers  close  to  the  prices  charged  by  their  immediate  neighbours. 

7.2.1.  Ranking  of  locations 

In  Annexes  8  and  9  the  horizontal  line  cutting  the  table  in  two  represents  the 
median,  the  theoretical  value  above  and  below  which  an  equal  number  of 
observations  fall.  This provides a means of measuring  any  convergence  of prices, 
by calculating  the gap between  the prices at each  location  and  the  median.  These 
tables display  the relative position  of each  location  in increasing order  of price on 

17 

1 January  1990 and  1 January  1995.  They  also reveal  far-reaching  differences  in 
price  structures  from  one  location  to  another  in  the  sample. 

Ranking  the  locations  by  frequency  of  appearance  in  each  position,  Denmark, 
North  Brabant,  France  and  Rotterdam,  in  that  order,  can  be  considered  the 
cheapest  locations  in  the  sample,  followed  by  Greece,  the  Western  Zone  of 
Germany  and  the United  Kingdom  (for  small  industrial  consumers),  Ireland  (for 
moderate  consumers) and  Belgium  and Luxembourg  (for  the biggest  consumers). 
The most costly locations for all consumers are Hamburg and Portugal, joined,  for 
moderate  and  big  industrial  consumers,  by  Spain. 

7.2.2.  Changes  in  ranking  between  1990 and  1995 

Comparison  of  Annexes  8 and  9  shows  the  changes  in  ranking  of  the  individual 
locations  on  the  relevant  dates.  Denmark  (ranked  first)  and  Portugal  (last)  still 
hold  the  same  position  for  all  their  typical  consumers.  Amongst  the  low-cost 
locations,  France,  Rotterdam  and  North  Brabant  all  showed  minor  changes. 
Luxembourg  and  the  Western  Zone  of  Germany  fell  significantly.  Luxembourg 
has  even  become  the  location  with  the  lowest  prices,  after  Denmark,  for  big 
consumers.  The United Kingdom  (London)  and  Greece  have both  improved  their 
relative  positions.  As  for  the  high-cost  locations  (i.e.  the  locations  above  the 
median),  Belgium's  position  deteriorated  in  the  case  of  small  and  moderate 
consumers.  Spain  and  Italy's  position  deteriorated  for  all  consumers,  except 
category  Ic  in  Spain.  In  Ireland,  no  significant  changes  were  reported.  Finally, 
prices  in  Hamburg  drew  closer  to  those  charged  in  Spain. 

7.2.3.  Electricity  prices  in  ECU 

The ECU tables in Annex  10 are for  information  only.  They  made it possible  to 
plot  the  price  difference  graphs  for  the  various  units  on  pp.  45  and  46. 

7.2.4.  Convergence 

To  determine  whether  prices  converged  between  1990  and  1995, the  number  of 
observations  within  an interval  of  10% and  25% on  either  side of the  median  for 
the  sample  was  determined  in  January  1990  and  January  1995,  i.e.  before  and 
after  the  Directive  entered  into  force. 

TABLE  II 

OBSERVATIONS 
within  intervals  of  10%  and  25%  on  either  side  of  the  median 
(January  1995/January  1990) 

Over  the  report  period,  the  scatter  increased  only  for  small  consumers  (up  to  If) 
and  the  trend  reversed  from  Ig  on.  This  is  confirmed  by  the  variations  in 
Pearson's  coefficient  of  variability  (standard  deviation  x  100  divided  by  the 
arithmetic  mean)  which  rose  from  25.87%  in  1990  to  27.76%  in  1995  for  If 
(wider  scatter)  but,  conversely,  fell  from  28.26%»  to  25.59%  for  Ig  (narrower 
scatter)  over  the  same  period. 

This  is  confirmed  by  the  variations  in  the  standard  deviation  (square  root  of  the 
variance  =  s),  which  rose  from  179  for  If  in  1990  to  191.5  in  1995  but, 
conversely,  fell  from  167 in  1990 to  151 in  1995 in the case of Ig. It is impossible 
to  compare  these  coefficients  for  the  largest  consumers  in  the  sample  since  no 
figures  are available for  Ih and  Ii in  1990.  However,  these figures  are known  for 
1995,  when  the  standard  deviation  and  coefficient  of  variability  were  147  and 
25.48%  respectively  for  Ih  and  132 and 25.68% for  Ii.  These  percentages  are of 
the  same  order  as  for  Ig.  There  are  therefore  strong  reasons  to  presume  that  the 
findings  for  Ig  also  apply  to  Ih  and  Ii  and  that  prices  have converged  for  all  big 
consumers. 

8. 

Analysis  of  gas  prices  to  industrial  users  in  the  Community 

The same method will  be used  to analyse gas prices.  As in the case of electricity, 
the prices are based on direct application  of the tariffs  and  contracts.  Fourteen  of 
the  34  locations  covered  by  the  survey  were  selected,  based  on  similar  criteria  to 
ensure a representative  subsample.  It must be made clear from  the outset that gas 
prices are noticeably less transparent than electricity prices, particularly  in the case 
of  the  biggest  consumers. 

8.1 

Gas price situation and trends by location in national  currency  on  1 January  1985. 
1990  and  1995 

The  tables  in  Annex  11  show  the  sharp  deterioration  in  the  transparency  of  gas 
prices  to  industrial  users  in  January  1995  (except  in  the  case  of  Weser-Ems and 
the  Netherlands).  In  contrast  to  electricity  prices,  there  are  numerous  blanks 
amongst the prices charged to the biggest consumers, either because no consumers 
were  surveyed  in  these  categories  or  because  there  were  fewer  than  three. 
Nevertheless,  there  has been  a marked  deterioration  in  transparency,  since  seven 
prices were  reported  in January  1990 for  15 but just  two in January  1995, despite 
the greater penetration  by gas over this period. Geographically,  price transparency 
is  improving  in  Germany.  As  regards  price  trends,  the  repercussions  of  falling 
world  gas prices on prices to end-users vary  from  one location to another.  Finally, 
at  many  locations  the  price  scale  has  become  more  degressive,  to  the  benefit  of 
large-scale  industry. 

Over  the  first  period  (from  January  1985 to January  1990) there  was  generally  a 
big reduction, both in the gas-producing  and gas-importing Member  States.  From 
1990  to  1995  the  situation  was  more  varied.  The  reductions  continued  at  many 

locations,  albeit  at  a slower  rate,  but  a few  increases  were  observed,  principally 
for  the  smallest  standard  industrial  consumers  whose  prices  seem  to  be  directly 
influenced  by  the  increase  in  the  CPI.  The  situation  over  the  entire  period  was 
marked  by  a general  consolidation  of  the  reductions. 

At  most  locations,  the  price  scale  became  markedly  more  degressive  between 
January  1990 and  1995 in favour  of the biggest standard  consumers in the sample, 
often  by  substantial  proportions, with the notable exception  of London.  There has 
been  extensive  restructuring  of  the  tariffs  at  the  expense  of  small  and 
medium-sized  industrial  undertakings, which indicates strong pressure exerted  by 
competition  on  the  internal  market  on  the  biggest  consumers,  who  demand  and 
obtain  the  most  competitive  gas  prices.  Competition  from  other  energy  sources 
plays an extremely  important role for  large offtakes  in the gas  sector but  virtually 
no role at all for  small  and medium-sized  industrial  users who bear the full  burden 
of  the  tariff  restructuring  in  response  to  falling  oil  and  oil-product  prices. 

8.2 

Price  situation  and  trends  by  location  in  PPS 

Annexes  12 and  13 show the situation  as regards  PPS gas prices,  net  of  all  taxes, 
to  industrial  users  on  1 January  1995 and  1 January  1990 respectively,  based  on 
direct application  of the tariffs  and terms of sale.  The unit used  in the case of gas 
is  100  GJ. 

Prices  are  lowest  in  Denmark  and  the Western  Zone  of  Germany  up  to  standard 
consumer  13-1  and  in  France  from  13-2  on  (15  not  communicated).  Prices  are 
highest in Spain up to 13-2 and in Berlin from  13-1 to 14-2 (15 not communicated). 
Prices in the Netherlands lie in between.  Only two (identical) prices are  available 
for  15, from  the Netherlands  and Weser-Ems,  both gas-producing  regions.  These 
prices  are  extremely  favourable,  compared  with  the  11 submitted  for  14-2. 

As  regards  the  tariff  structure,  at  every  location  the  switch  from  12  to  13-1 
(identical  offtake  but  better  load  factor)  attracts  a  significant  price  reduction, 
except  in  Berlin  and  Luxembourg,  where  there  is  no  significant  difference.  By 
contrast,  the  improvement  in  consumption  conditions  between  13-1  and  13-2  or 
between  14-1  and  14-2 (same  offtake  but  better  load  factor)  attracts  only  a  small 
price  cut  or  no  change  at  all  at  most  locations,  except  in  Belgium,  France,  Italy 
and  the  United  Kingdom. 

Compared  with  January  1990,  the  1995  PPS  prices  were  slightly  lower  in  the 
United  Kingdom,  Luxembourg,  Strasbourg  and  in  Belgium  but  higher  in  Ireland 
and  Turin.  Changes  to the tariff  base in  favour  of big  industry  were  observed  in 
Weser-Ems,  Paris,  Spain  and  the Netherlands.  In  Naples,  similar  changes  were 
made  in  favour  of  small  industrial  consumers.  No  comparison  was  possible  for 
Denmark,  Berlin,  Hanover  and Birmingham  for  lack  of data.  In  some  cases,  this 
was  because  no  correlation  with  the  past  was  established,  in  others  because  the 
Directive  is  not  fully  applied. 

Compared  with  the  Community  sample  as  a  whole,  Germany  is  at  both  ends  of 
the scale, with  Weser-Ems  sharing the lowest  prices with Denmark  and  Paris, but 
the Berlin  sample  sharing  the  highest  prices with  Spain.  Consequently,  the  price 

20 

scatter in Germany  is wider for gas than  for  electricity, with the locations with the 
lowest  gas  prices  comparable  to  the  cheapest  locations  in  the  European  Union. 
Still  in Germany,  the interval  between  the highest  price (DM  1306 in  Diisseldorf) 
and  the  lowest  (DM  584  in  Weser-Ems)  was  slightly  over  2  in  1990  but  rose  to 
3.46  in  1995 between  Berlin  (on DM  1497) and Dortmund/Dusseldorf (DM  433). 
The  tables  in  Annex  14  compare  DM  gas  prices  at  10 locations  in  Germany  on 
1 January  1990  and  1 January  1995. 

8.2.1  Ranking  of  locations  on  1 January  1995 

Without  exception,  and  irrespective  of  the  fact  that  the  locations  chosen  are  not 
always  the  same  for  the  two  sources,  the  relative  ranking  of  the  locations  is  not 
the  same  for  both  gas  and  electricity  prices.  Locations  with  high  gas  prices 
sometimes  have  low  electricity  prices  and  vice-versa  (see  Annexes  15  and  16), 
which  suggests  that  the  two  sources  are  not  in  competition.  Comparison  of  the 
tables  in  Annexes  15  and  16  shows  the  changes  in  the  ranking  of  the  sample 
between  1990  and  1995.  The following  countries,  in order,  had  prices below  the 
median  everywhere  in  1995:  Denmark  (no  data  in  1990),  Weser-Ems  (no 
significant  change in comparison with  1990), Birmingham  (no data in  1990), Paris 
and  the Netherlands  (which  lost  ground  in  categories  II  and  12 but  consolidated 
their  strong  position  from  13-1  on).  The  following  were  above  the  median 
everywhere:  Spain,  Naples  and  Berlin  (except  in  the  case  of  12),  Turin  (except 
from  14-1 on) and Ireland  (except for  13-1).  Luxembourg  and London  maintained 
the  same  pattern  in  1995,  amongst  the  lowest  gas  prices  for  II  and  12 but  well 
above the median  from  13-1 on.  Belgium  aligned  its prices on the median,  clearly 
in  1990, but  far  less  so in  1995.  Transparency  has deteriorated  since  1990.  It is 
inadequate  for  the  biggest  gas  consumers,  as  can  be  seen  from  the  lack  of  data 
from  many  locations.  This  limits the  scope  for  comparisons. 

The  most  striking  features  are  as follows:  Denmark,  the  Weser-Ems  region  and 
the Netherlands  are the leading contenders  for  the lowest  prices for  all  consumers 
combined.  They  are joined  by  London  and  Birmingham  in  the  case  of  small 
industrial  consumers.  Both these locations are close to the production  sites, which 
is an indication that the comparative advantages have been passed on  satisfactorily 
in  the  price  of  the  end-product.  Ireland,  however,  is  an  exception  and  has  veiy 
high  prices  despite  having  its  own  resources.  France  (Paris)  is  close  to  the 
median  for  II  and  12 and  the  cheapest  location  in  the  sample  in  1995  from  13-2 
on,  despite  the fact  that  it has no substantial  resources  of  its own  and  is a leading 
importer.  Strasbourg, with  its autonomous  arrangements, is far  worse placed  than 
the  rest  of  the  country.  Of  the  other  importing  locations,  Belgium  and 
Luxembourg  are  clearly  below  the  median  for  II  and  12,  are  amongst  the  most 
expensive locations in the sample for  13-1 but return  close to the median  again  for 
large  offtakes.  Berlin  is  close to  the  median  for  II  and  12 but  then  becomes  the 
most expensive location in the entire sample from  13-1 on.  Spain  has the  highest 
It  is  also 
prices  for  II  and  12,  followed  by  Ireland  and  the  Italian  locations. 
amongst  the  most  expensive  locations  from  13-1  on. 

8.2.2  Gas  prices  in  ECU 

21 

As in the case  of  electricity,  the ECU  gas prices  in  Annex  17 made  it  possible  to 
plot  the graphs  comparing  ECU  and  PPS  prices (see  pp. 47  and  48)  and  to  show 
the  differences  between  the  two  modes  used. 

8.2.3  Convergence 

The number of observations within intervals of  10% and 25% on either side of the 
median  was  higher  everywhere  in  January  1995  than  in  January  1990  except  in 
the  case  of  II,  where  the  scatter  widened  in  response  to  the  numerous  price 
increases  in  this  category.  The  increase  in  the  number  of  observations  indicates 
a  clear  convergence  of  gas  prices  in  the  Community. 

TABLE  III 

OBSERVATIONS 
within  intervals  of  10% and  25% on either  side of the  median 
(January  1995/January  1990) 

11 

12 

13-1  13-2  14-1  14-2 

15 

Comparison  of the coefficients  of variability  (see definition  on p.  19)  between  1990  and 
1995  for  the  standard  consumers  for  which  full  series  are  available  confirms  this. 
Although  the  variability  rose  from  32.8%  to  42%  for  II,  it  fell  considerably  for  the 
following  three  standard  consumers: 

-  from  27.5% to  17.5% for  12, 
-  from  22% to  12.6% for  13-1, 
-  from  24.3% to  13% for  13-2. 

Beyond 13-2, the data are incomplete, which makes measurements of this type impossible. 
The  perfect  symmetry  from  II  to  13-1  between  the  concentration  of  the  observations 
around  the  median  on  the  one  hand  combined  with  the  reduction  in  the  coefficients  of 
variability  on  the  other  suggest  that  the  same  symmetry  should  extend  to  the  consumer 
categories  above 13-1 and  tends to confirm  that the average reduction  in gas prices in the 
European  Union  has  been  accompanied  by  greater  convergence.  This  is  possible,  even 
though  gas  is a closed  market  protected  against  gas-gas  competition  by  exclusive  rights, 
since  this  market  is  nevertheless  open  to  "oblique"  competition  from  neighbouring 
markets. 

22 

ANNEX 1 
COUNCIL  DIRECTIVE  90/377/EEC OF 29 JUNE  1990 
INCORPORATION  INTO  NATIONAL  LEGISLATION 

Member  State 

Type  of Act 

Date of adoption 

Date of 
publication 

Date  of 
notifcation 

Date of entry  into force 

A 

B 

D 

DK 

E1 

FIN 

F 

G2 

IRL3 

I 

LUX' 

NL 

P 

S5 

UK 

Federal law 

-

04-12-92 

04-03-94 

01-01-95 

Ministerial  Decree  published in Moniteur  Belge 

18-05-92 

18-05-92 

28-09-92 

18-05-92 

Agreement signed.  Details published in the 
Bundesanzeiger 

08-07-93 

30-07-93 

17-09-93 

08-07-93 

Decree  issued by  Energy  Ministry 

16-03-92 

16-03-92 

01-04-92 

16-03-93 

Not yet  fully  incorporated 

Agreement reached between the  INS and the  parties 
concerned 

-

-

09-02-94 

01-01-95 

Law published in the Journal Officiel de  la  République 

19-07-93 

20-07-93 

05-10-94 

Law published in  Efimeris tes  Guverneseus 

25-07-91 

25-07-91 

09-08-91 

(Existing  provisions) 

-

-

-

20-07-93 

25-07-91 

01-07-91 

Law published in the  Gazetta  Ufficiale 

20-02-92 

20-02-92 

26-03-92 

20-02-92 

(Existing  provisions) 

Agreement signed between Ministry  of  Economic 
Affairs and relevant parties 

-

-

-

-

-

25-05-92 

01-07-91 

01-01-92 

Ministerial Decree published in  Diario da  Republica 

30-05-92 

30-05-92 

10-06-92 

30-05-92 

? 

Energy Act  of  1976 

? 

-

? 

-

? 

-

? 

01-07-91 

see footnotes on next page. 

23 

1. 

2. 

3. 

4. 

5. 

In Spain  an Order  published  in the  Boletin Oficial del Estado  on 31 May  1995 implemented the  part  of the  Directive  concerning  electricity  prices, 
but  the  Commission  has  yet  to  be  notified  of  the  general  regulation  on  the  transparency  of  gas  prices.  This  gap  in  the  legislation  has  not 
prevented  regular  submission  of  full  data  by  the  Spanish  administration. 

Greece  has  implemented  only  the  part  of the  Directive  relating to  electricity. 
Greece  is  exempted  from the  provisions  on  natural gas which  is not  yet  available  nationwide. 

In line with  paragraph  2 of Article  9  and with  Annex  1 to  the  Directive, 

Only administrative measures were deemed necessary in view of the laws and other provisions already adopted. The Commission accepted this solution 
in an exchange  of letters. 

The  provisions  of the  existing  Act were  deemed  sufficient  to  implement  the  Directive,  i.e.  to  incorporate  it  into  national  law. 

Contacts  have  been  established  with the  Swedish  administration  to verify whether the  Directive  has  been  incorporated  and why the  Commission  has 
not  been notified. 

24 

Reference  consumer 

Annual  consumption  (in  kWh) 

Maximum demand  (in  kWh) 

Annual  utilisation  (in  hours) 

ANNEX 2 

Typical industrial electricity consumers: 

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 

Reference consumer 

Annual  consumption  (in  GJ) 

Load  factor 

Typical industrial gas consumers: 

la 

lb 

Ic 

Id 

le 

If 

ig 

Ih 

ii 

11 

12 

13-1 

13-2 

14-1 

14-2 

15 

'If  necessary 115 - 200 days 

418.60 (or  116 300 KWh)  No load factor laid down* 

4  186.00 (or  1 163 000 KWh) 

200 days 

41 860.00 (or  11.63 GWh) 

200 days  1 600 hours 

41 860.00 (or 11.63 GWh) 

250 days 4 000 hours 

418 600.00 

(or  116.3 GWh) 

250 days 4 000 hours 

418 600.00 

(or 116.3 GWh) 

330 days 8 000 hours 

4 186 000.00  (or  1 163 GWh) 

330 days 8 000 hours 

25 

ANNEX  3 

ISSUES  OF  "STATISTICS  IN  FOCUS" 
PUBLISHED  TO  DATE 

1993 

No  19 

Electricity  prices  (domestic)  -  1 January  1993 
No 20  Gas  prices  (domestic)  -  1 January  1993 

1994 

1995 

No  1 
No  2 
No  3 
No  4 
No  13 
No  14 
No  19 
No 20 
No 21 
No 22 
No  33 
No  35 

No  8 
No  9 
No  13 
No  14 

Electricity  prices  (industry)  -  1 July  1993 
Gas  prices  (industry)  -  1 July  1993 
Electricity  prices  (domestic)  -  1 July  1993 
Gas  prices  (domestic)  -  1 July  1993 
Pricing  systems  (electricity) 
Pricing  systems  (gas) 
Gas  prices  (domestic)  -  1 January  1994 
Electricity  prices  (domestic)  -  1 January  1994 
Electricity  prices  (industry)  -  1 January  1994 
Gas  prices  (industry)  -  1 January  1994 
Electricity  prices  for  industry  in the  EU -  1 July  1994 
Gas  prices for  industry  in the  EU -1 July  1994 

Electricity  prices  for  industry  -  1 January  1995 
Gas  prices  for  industry  in the  EU -  1 January  1995 
Gas  prices  (domestic)  -  1 January  1995 
Electricity  prices  (domestic)  -  1 January  1995 

YEARBOOKS ON ENERGY PRICES 

Gaspreise  - Gas  prices  - Prix du gaz  1990 -  1994 
Elektrizitàtspreise -  Electricity  prices -  Prix de  l'électricité  1985  -  1993 
Gaspreise  - Gas  prices  -  Prix du gaz  1985 -  1993 
Elektrizitàtspreise  -  Electricity  prices  -  Prix de  l'électricité  1990  -  1994 
Gaspreise  - Gas  prices  -  Prix du gaz  1990 -  1994 
Energiepreise  -  Energy  prices -  Prix de  l'énergie  1973 -  1993 
Energiepreise  -  Energy  prices - Prix de  l'énergie  1973 -  1994 
Elektrizâtspreise  - Electricity  prices  -  Prix de  l'électricité  1990 -  1995 
Gaspreise  -  Gas  prices  - Prix du gaz  1990-  1995 

' 

26 

01/01/95 

DM/10  MWh/Year 

Dusseldorf 

Hamburg 

Hannover 

W.Gebiet 

Frankfurt 

Stuttgart 

Munchen 

S.Gebiet 

Erfurt 

Leipzig 

Rostock 

01/01/90 

DM/10  MWh/Year 

DUsseldorf 
Hamburg 

Hannover 
W.Gebiet 
Frankfurt 
Stuttgart 
Munchen 

S.Gebiet 
Erfurt 

Leipzig 

Rostock 

ANNEX 4 

ELECTRICITY  PRICES  5NET OF  TAX)  TO INDUSTRIAL  USERS  IN GERMANY 
(in  DM/100 MWh/year) 

ELECTRICITY PRICES (NET  OF  TAX)  TO INDUSTRIAL  USERS IN GERMANY 

la 

5036 

3548 

3364 

2768 

4198 

3726 

3891 

3442 

3597 

2939 

3700 

lb 

3020 

3548 

3316 

2768 

4169 

3632 

3846 

3400 

3565 

2884 

3700 

Ic 

2681 

3020 

2602 

2436 

2831 

2798 

2509 

2957 

2767 

2702 

3348 

Id 

2144 

2423 

2159 

2012 

2200 

2253 

2008 

1932 

2064 

2187 

2174 

le 

1895 

1943 

1824 

1777 

1799 

1861 

1645 

1625 

1748 

1845 

1770 

ELECTRICITY PRICES  (NET OF  TAX)  TO INDUSTRIAL  USERS IN GERMANY 
Ic 

la 

lb 

Id 

le 

NA 

NA 
NA 
2975 
NA 

3474 
3235 

NA 
NA 

NA 

NA 

NA 
NA 

NA 

2882 
NA 
3474 
3235 

NA 
NA 

NA 

NA 

2066 
2326 

2013 

2086 
1996 
2247 

2004 

1924 
NA 

NA 

NA 

1837 
1858 
1700 
1863 
1632 

1857 
1643 

1620 
NA 

NA 

NA 

2582 
2833 
2412 
2594 
2525 
2749 

2477 

2406 
NA 

NA 

NA 

27 

If 

1760 

1943 

1806 

1627 

1718 

1780 

1613 

1579 

1745 

1693 

1770 

If 

1701 
1858 

1686 
1713 
1561 

1779 

1613 

1577 
NA 

NA 

NA 

/& 
1402 

1627 

1517 

1259 

1481 

1481 

1416 

1384 

1501 

1364 

1503 

'9 
1358 
1550 

1417 

1334 
1349 
1480 

1416 

1383 
NA 

NA 

NA 

lh 

1535 

1755 

1588 

1366 

1560 

1534 

1478 

1418 

1596 

1456 

1431 

lh 

NA 
NA 
*  NA 
NA 
NA 
NA 
NA 
NA 
NA 
NA 
NA 

li 

1276 

1522 

1408 

1123 

1401 

1334 

1364 

1304 

1425 

1243 

1234 

U 

NA 
NA 
NA 
NA 
NA 
NA 
NA 
NA 
NA 
NA 
NA 

ELECTRICITY  PRICE  SITUATION  AND  TRENDS  BY  LOCATION  IN NATIONAL  CURRENCY 
ON  1 JANUARY  1985,1990 and  1995 

ANNEX 5 

Electricity  prices net of tax to  industrial users 

Belgium (B) 

Year 

I.P.O. 

P.I.B. 

la 

lb 

Ic 

Id 

le 

If 

1985 

1990 

1995 

97.7 

(100) 

109.2 

116.6 

124 

(131) 

504 

550 

581 

502 

542 

575 

457 

452 

476 

368 

346 

359 

328 

296 

304 

307 

283 

288 

Denmark (DK) 

in BFR/100 KWh/Yea 

ig 

264 

245 

236 

Ih 

NA 

NA 

Ii 

NA 

NA 

209 

179 

in DKR/100 KWh/Year 

Year 

I.P.O. 

P.I.B. 

la 

lb 

Ic 

Id 

le 

If 

ig 

Ih 

Ii 

1985 

1990 

1995 

98 

(100) 

4249 

4196 

4007 

3842 

3330 

3527 

3094 

3272 

2935 

119.5 

121-

4720 

4662 

4452 

4273 

3743 

3720 

3445 

3561 

3316 

132 

(131) 

3656 

3597 

3496 

3264 

3240 

3169 

3029 

2962 

2907 

Hamburg (D) 

Year 

I.P.O. 

P.I.B. 

99.3 

(100) 

105.8 

112.7 

1985 

1990 

1995 

la 

NA 

NA 

lb 

NA 

NA 

Ic 

Id 

le 

If 

3187 

2242 

1800 

1800 

ig 

NA 

2833 

2326 

1858 

1858 

1550 

Ih 

NA 

NA 

Ii 

NA 

NA 

in DM/100  KWh/Year 

125 

(132) 

3548 

3548 

3020 

2423 

1943 

1943 

1627 

1755 

1522 

28 

Western Zone (D) 

Year 

I.P.C 

P.I.B. 

la 

Ib 

le 

Id 

le 

If 

1985 

99.3 

(100) 

2748 

2658 

2379 

* 

1887 

1674 

1530 

1990 

105.8 

112.7 

2975 

2882 

2594 

2086 

1863 

1713 

in DM/100 KWh/Year 

"g 

1193 

1334 

Ih 

NA 

NA 

li 

NA 

NA 

1995 

125 

.(132) 

2768 

2768 

2436 

2012 

1777 

1627 

1259 

1365 

1123 

Athens(GR) 

in DR/100 KWh/Year 

Year 

I.P.C. 

P.I.B. 

la 

Ib 

le 

Id 

le 

If 

1985 

1990 

1995 

92.5 

(100) 

1088 

1084 

1002 

832 

775 

775 

201.3 

211 

1740 

1735 

1603 

1330 

1239 

1239 

1049 

410 

(359) 

2467 

2467 

2278 

1813 

1678 

1678 

1426 

1307 

1155 

ig 

657 

Ih 

NA 

NA 

li 

NA 

NA 

Madrid (E) 

Year 

I.P.C. 

P.I.B. 

la 

Ib 

le 

Id 

le 

If 

1985 

97 

(100) 

1143 

1002 

941 

869 

781 

741 

1990 

133.2 

142.8 

1588 

1588 

1339 

1229 

1094 

1026 

in PTA/100 KWh/Yea 

ig 

669 

934 

Ih 

NA 

NA 

li 

NA 

NA 

1995 

172 

(178) 

1934 

1934 

1465 

1347 

1203 

1127 

1014 

1016 

911 

Paris (F) 

in FF/100 KWh/Year 

Year 

I.P.C 

P.I.B. 

la 

Ib 

le 

Id 

le 

If 

ig 

Ih 

li 

1985 

1990 

1995 

97.4 

(100) 

7807 

7089 

4708 

4708 

3860 

3860 

3210 

114.7 

119.4 

6465 

6465 

5930 

4947 

4033 

4033 

3436 

NA 

NA 

NA 

NA 

128 

(134) 

6673 

6673 

6156 

5089 

4275 

4275 

3688 

3345 

3001 

29 

Dublin (IRL) 

in IRL/100 KWh/Year 

Year 

I.P.C. 

P.I.B. 

la 

Ib 

le 

Id 

1985 

98.3 

(100) 

1063 

1063 

1990 

116.7 

114.8 

1015 

1001 

1995 

130 

(126) 

1015 

1001 

879 

804 

804 

693 

614 

614 

le 

610 

501 

501 

If 

593 

469 

469 

ig 

536 

403 

403 

Ih 

NA 

NA 

li 

NA 

NA 

404 

367 

Italy  (I) 

in LIT/100 KWh/Year 

Year 

I.P.C 

P.I.B. 

la 

Ib 

le 

Id 

le 

If 

ig 

96.1 

(100) 

23073 

21054 

16891 

14417 

12356 

12410 

9168 

128.2 

139 

20873 

19049 

14886 

12412 

11166 

10893 

8029 

1985 

1990 

1995 

Ih 

NA 

NA 

li 

NA 

NA 

163 

(171) 

27320 

21980 

17192 

15442 

12671 

12671 

10323 

9694 

8134 

30 

Luxemburg (L) 

Year 

I.P.C. 

P.I.B. 

la 

Ib 

Ic 

Id 

le 

If 

1985 

1990 

1995 

97.8 

(100) 

108 

124 

117 

(132) 

545 

582 

556 

542 

583 

563 

422 

450 

433 

346 

368 

353 

296 

313 

300 

275 

242 

230 

Rotterdam (NL) 

in LFR/100 KWh/Year 

ig 

225 

206 

189 

Ih 

NA 

NA 

li 

NA 

NA 

196 

173 

in HFL/100 KWh/Year 

Year 

I.P.C. 

P.I.B. 

la 

Ib 

Ic 

Id 

le 

If 

ig 

Ih 

NA 

NA 

li 

NA 

NA 

991 

Ih 

NA 

NA 

li 

NA 

NA 

1985 

1990 

1995 

1985 

1990 

1995 

98.6 

(100) 

3125 

3003 

2536 

2361 

2187 

2025 

1720 

102.5 

104 

NA 

2950 

2168 

1815 

1521 

1411 

1122 

119 

(117) 

2177 

2182 

2401 

1874 

1491 

1294 

1053 

1118 

Lisbon (P) 

in ESC/100 KWh/Year 

Year 

I.P.C. 

P.I.B. 

la 

Ib 

Ic 

Id 

le 

If 

ig 

93.9 

(100) 

1511 

1373 

1156 

1017 

925 

925 

856 

160.7 

192 

1943 

1948 

1613 

1398 

1253 

1255 

1149 

237 

(288) 

2408 

2499 

2057 

1764 

1568 

1568 

1284 

1197 

1105 

London (UK) 

Year 

I.P.C. 

P.I.B. 

la 

Ib 

Ic 

Id 

le 

If 

1985 

1990 

1995 

96.4 

(100) 

126.3 

131.1 

154 

(157) 

631 

650 

753 

623 

637 

735 

580 

701 

615 

454 

529 

534 

396 

462 

473 

395 

460 

449 

in UKL/100 KWh/Year 

ig 

NA 

413 

414 

Ih 

NA 

NA 

li 

NA 

NA 

428 

401 

31 

ANNEX 6 
EUR12: ELECTRICITY  PRICES  (NET OF  TAXES)  TO  INDUSTRIAL  USERS 
(in PPS/10  MWh on  1/01/1995) 

Electricity prices  net  of  tax  to industrial  users  on  1/1/1995 

Belgium(B) 

la 

1443 

lb 

1428 

Ic 

1182 

Denmark(DK) 

441 

435 

424 

Id 

891 

399 

881 

1212 

1553 

1212 

1067 

1553 

1322 

1061 

1069 

1065 

984 

783 

1483 

1483 

1124 

1033 

947 

947 

873 

1422 

1403 

1126 

1613 

1298 

1015 

1289 

1306 

1005 

949 

772 

951 

793 

1047 

919 

722 

860 

912 

819 

817 

587 

Western  Zone(D) 

Hamburg(D) 

Athens(GR) 

Madrid(E) 

Paris(F) 

Dublhi(IRL) 

Italy(I) 

Luxembourg(L) 

Rotter dam(NL) 

North  Brabant(NL) 

Lisbon(P) 

London(UK) 

le 

755 

397 

778 

851 

725 

923 

607 

702 

748 

625 

650 

495 

If 
715 

Ig 
586 

Ih 

519 

Ii 

444 

389 

374 

367 

361 

712 

551 

598 

492 

851 

712 

768 

666 

725 

616 

564 

499 

864 

778 

779 

699 

607 

523 

475 

426 

657 

565 

566 

514 

748 

610 

572 

480 

533 

439 

455 

402 

564 

549 

488 

432 

493 

441 

455 

433 

EUR 12 
in  PPS/10 
MWh/yr 

Ia/Ii 

3.25 

1.22 

2.46 

2.33 

2.14 

2.12 

2.22 

2.77 

3.36 

3.21 

2.20 

1.78 

2.18 

1.88 

1807 

1875 

1544 

1324 

1177 

1177 

964 

898 

829 

1090 

1064 

890 

773 

' 685 

650 

529 

620 

580 

32 

Electricity prices  net of tax  to 'industrial users on  1/1/1990 

EUR  12 in  PPS/10 
MWh/yr 

ANNEX  7 
EUR12:  ELECTRICITY  PRICES  (NET  OF TAXES)  TO  INDUSTRIAL  USERS 
(in PPS/10 mWh on 1/01/1990) 

Bclgium(B) 

Denmark(DK) 

Western Zone(D) 

Hamburg(D) 

Athens(GR) 

Madrid(E) 

Paris(F) 

Dublin (IRL) 

Italy(I) 

Luxemburg(L) 

Rotterdam(NL) 

North  Brabant(NL) 

Lisbon (P) 

London(UK) 

Glasgow(UK) 

la 

1296 

463 

1321 

N.A. 

1148 

1350 

905 

1366 

1357 

1363 

N.A. 

958 

1741 

990 

1189 

Ib 

1277 

457 

1280 

N.A. 

1145 

1350 

905 

1348 

1238 

1364 

1266 

921 

1746 

969 

1156 

Ic 

1065 

436 

1152 

1258 

1058 

1138 

830 

1082 

968 

1053 

930 

703 

1445 

1067 

1124 

Id 

815 

419 

926 

1033 

878 

1045 

693 

827 

807 

861 

779 

575 

1253 

805 

878 

33 

le 

697 

367 

827 

825 

818 

930 

565 

675 

726 

732 

653 

488 

1123 

703 

744 

If 

667 

365 

761 

825 

818 

872 

565 

631 

708 

567 

605 

486 

1124 

700 

682 

577 

338 

592 

688 

692 

794 

481 

543 

522 

482 

481 

427 

030 

628 

602 

Ih 

N.A. 

349 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

N.A. 

Ia/Ii 

2.25 

1.33 

2.23 

1.83 

1.66 

1.70 

1.88 

2.52 

2.60 

2.83 

2.63 

2.24 

1.69 

1.58 

1.98 

ANNEX  8 

RANKING OF  LOCATIONS IN INCREASING  ORDER  OF PRICE 
ON  1 JANUARY  1995 

RANKING  OF LOCATIONS IN INCREASING  ORDER OF PRICE 

1/1/1995 

la 

lb 

Ic 

Id 

le 

If 

ig 

Ih 

li 

1 
2 
3 
4 
5 
6 
7 

8 
9 
10 
11 
12 
13 
14 

Denmark  (DK) 
North Brabant  (NL) 
Paris  (F) 
Rotterdam  (NL) 
Athens (GR) 
London  (UK) 
Western Zone  (D) 

Denmark  (DK) 
North Brabant  (NL) 
Paris  (F) 
Rotterdam  (NL) 
London  (UK) 
Athens  (GR) 
Western  Zone (D) 

Denmark (DK) 
Paris (F) 
London  (UK) 
North  Brabant  (NL) 
Athens  (GR) 
Luxembourg  (L) 
Italy (1) 

Luxemburg (L) 
Dublin  (IRL) 
Belgium  (B) 
Madrid (E) 
Hamburg  (D) 
Italy (1) 
Lisbon  (P) 

Italy (1) 
Luxembourg  (L) 
Dublin  (IRL) 
Belgium  (B) 
Madrid (E) 
Hamburg  (D) 
Lisbon  (P) 

Rotterdam  (NL) 
Western  Zone  (D) 
Madrid (E) 
Dublin  (IRL) 
Belgium  (B) 
Hamburg  (D) 
Lisbon  (P) 

Denmark (DK) 
North Brabant  (NL) 
Paris  (F) 
London  (UK) 
Athens  (GR) 
Rotterdam  (NL) 
Luxembourg (L) 

Dublin  (IRL) 
Western Zone  (D) 
Belgium  (B) 
Italy (1) 
Madrid (E) 
Hamburg (D) 
Lisbon  (P) 

Denmark (DK) 
North  Brabant  (NL) 
Paris  (F) 
Luxembourg  (L) 
Rotterdam  (NL) 
London  (UK) 
Dublin  (IRL) 

Athens  (GR) 
Italy (1) 
Belgium  (B) 
Western  Zone (D) 
Hamburg (D) 
Madrid (E) 
Lisbon (P) 

Denmark (DK) 
North Brabant  (NL) 
Luxemburg (L) 
Rotterdam  (NL) 
Paris  (F) 
London  (UK) 
Dublin  (IRL) 

Western  Zone (D) 
Belgium  (B) 
Athens  (GR) 
Italy (1) 
Hamburg (D) 
Madrid (E) 
Lisbon  (P) 

Denmark (DK) 
Luxemburg (L) 
North Brabant (NL) 
Paris (F) 
Rotterdam  (NL) 
Western  Zone  (D) 
Dublin  (IRL) 

Denmark (DK) 
Luxembourg  (L) 
North Brabant  (NL) 
Paris  (F) 
Rotterdam  (NL) 
Belgium  (B) 
Athens (GR) 

Denmark (DK) 
Luxembourg (L) 
Paris  (F) 
Rotterdam  (NL) 
North Brabant  (NL) 
Belgium  (B) 
Italy (I) 

Belgium  (B) 
London  (UK) 
Italy (1) 
Athens  (GR) 
Hamburg (D) 
Madrid (E) 
Lisbon  (P) 

Dublin  (IRL) 
Italy (1) 
Western Zone  (D) 
London  (UK) 
Hamburg (D) 
Madrid (E) 
Lisbon  (P) 

Western Zone  (D) 
Athens (GR) 
Dublin  (IRL) 
London  (UK) 
Hamburg (D) 
Madrid (E) 
Lisbon  (P) 

34 

ANNEX  9 

RANKING  OF  LOCATIONS  IN INCREASING ORDER OF PRICE 
ON  1 JANUARY  1990 

RANKING  OF LOCATIONS  IN INCREASING  ORDER  OF PRICE 

1/1/1990 

la 

Ib 

Ic 

Id 

le 

If 

ig 

Ih 

li 

Denmark (DK) 
Paris  (F) 
North Brabant  (NL) 
London  (UK) 
Athens  (GR) 
Glasgow  (UK) 
Belgium  (B) 

Western  Zone (D) 
Madrid (E) 
Italy (1) 
Luxembourg (L) 
Dublin  (IRL) 
Lisbon  (P) 

1 
2 
3 
4 
5 
6 
7 

8 
9 
10 
11 
12 
13 
14 
15 

Denmark  (DK) 
Paris (F) 
North  Brabant  (NL) 
London  (UK) 
Athens (GR) 
Glasgow  (UK) 
Italy (1) 

Denmark (DK) 
North  Brabant  (NL) 
Paris  (F) 
Rotterdam  (NL) 
Italy (1) 
Luxembourg (L) 
Athens  (GR) 

Rolterdam  (NL) 
Belgium  (B) 
Western Zone (D) 
Dublin  (IRL) 
Madrid (E) 
Luxembourg (L) 
Lisbon  (P) 

Belgium  (B) 
London  (UK) 
Dublin  (IRL) 
Glasgow  (UK) 
Madrid (E) 
Western  Zone  (D) 
Hamburg (D) 
Lisbon  (P) 

Denmark (DK) 
North Brabant (NL) 
Paris (F) 
Rotterdam  (NL) 
London  (UK) 
Italy (1) 
Belgium  (B) 

Dublin (IRL) 
Luxembourg (L) 
Athens (GR) 
Glasgow (UK) 
Western Zone (D) 
Hamburg (D) 
Madrid (E) 
Lisbon  (P) 

Denmark (DK) 
North Brabant  (NL) 
Paris (F) 
Rotterdam  (NL) 
Dublin  (IRL) 
Belgium  (B) 
London  (UK)  •• 

Italy (1) 
Luxembourg (L) 
Glasgow (UK) 
Athens (GR) 
Hamburg (D) 
Western Zone (D) 
Madrid (E) 
Lisbon (P) 

Denmark (DK) 
North Brabant  (NL) 
Paris  (F) 
Luxembourg (L) 
Rotterdam  (NL) 
Dublin  (IRL) 
Belgium  (B) 

Glasgow  (UK) 
London (UK) 
Italy (1) 
Western Zone (D) 
Athens  (GR) 
Hamburg (D) 
Madrid (E) 
Lisbon  (P) 

Denmark  (DK) 
North Brabant  (NL) 
Paris (F) 
Rolterdam  (NL) 
Luxembourg (L) 
Italy (1) 
Dublin  (IRL) 

Belgium  (B) 
Western Zone (D) 
Glasgow  (UK) 
London  (UK) 
Hamburg (D) 
Athens (GR) 
Madrid (E) 
Lisbon  (P) 

Denmark (DK) 

35 

ANNEX  10 
ELECTRICITY  PRICES  IN ECU PER  10 MWh PER  YEAR 
(1 January  1985,1990 and  1995) 

Electricity  prices  in  ECU  per  10  M Wh  per  year 

Electricity  prices  in  ECU  per  10  M Wh  per  year 

la 

Jan-85  ,  Jan-90 

Jan-95 

Ib 

Jan-85 

Jan-90 

Jan-95 

Belgium  (B) 

Denmark  (DK) 

Western  Zone  (D) 

Hamburg  (D) 

Athens  (GR) 

Madrid  (E) 

Paris  (F) 

Dublin  (IRL) 

Italy  (I) 

Luxemburg  (L) 

Rotterdam  (NL) 

North  Brabant  (NL) 

Lisbon  (P) 

London  (UK) 

1132 

5 35 

1237 

0 

1200 

929 

1148 

1489 

1684 

1224 

1244 

778 

1251 

1015 

1290 

599 

1464 

0 

915 

1484 

Belgium  (B) 

488 

Denmark  (DK) 

1456 

Western  Zone  (D) 

1866 

Hamburg  (D) 

837 

Athens  (GR) 

1204 

, 

1176 

Madrid  (E) 

931 

1320 

1378 

1366 

0 

974 

1084 

893 

1015 

Paris  (F) 

1274 

Dublin  (IRL) 

1367 

Italy  (I) 

1419 

Luxemburg  (L) 

1021 

Rotterdam  (NL) 

830 

North  Brabant  ( N L) 

1228 

Lisbon  (F) 

955 

London  (UK) 

1127 

5 29 

1196 

0 

1196 

815 

1042 

1489 

1537 

1217 

1195 

743 

1137 

1002 

1272 

592 

1418 

0 

913 

1204 

931 

1302 

1257 

1367 

1286 

936 

1087 

874 

1468 

480 

1456 

1866 

834 

1176 

1015 

1257 

1100 

1438 

1024 

853 

1274 

932 

Electricity  prices  in  ECU  per  10  M Wh  per  year 

Electricity  prices  in  ECU  per  10  M Wh  per  year 

Ic 

Jan-85 

Jan-90 

Jan-95 

Id 

Jan-85 

Jan-90 

Jan-95 

Belgium  (B) 

Denmark  (DK) 

Western  Zone(D) 

Hamourg  (D) 

Athens  (GR) 

Madrid  (E) 

Paris  (F) 

Dublin(IRL) 

Italy  (I) 

Luxemburg (L) 

Rotterdam  (NL) 

North  Brabant(NL) 

Lisbon  (P) 

London  (UK) 

1026 

505 

1071 

1434 

1105 

765 

692 

1231 

1233 

948 

1009 

1102 

957 

9 33 

1060 

565 

1276 

1394 

843 

1015 

8 54 

1045 

982 

1056 

945 

715 

900 

962 

1215 

Belgium  (B) 

467l 

Denmark  (DK) 

1281 

Western  Zone(D) 

1588 

Hamburg  (D) 

770 

Athens  (GR) 

890 

Madrid  (E) 

937 

Paris  (F) 

1008 

Dublin  (IRL) 

860 

Italy  (I) 

1107 

Luxemburg  (L) 

1127 

Rotterdam  (NL) 

989 

North  Brabant  (NL) 

1049 

Lisbon  (P) 

780 

London  (UK) 

36 

827 

484 

849 

1009 

918 

706 

692 

971 

1052 

777 

940 

613 

842 

731 

812 

543 

1026 

1144 

700 

932 

712 

798 

819 

863 

791 

584 

780 

726 

917 

436 

1058 

1274 

613 

819 

774 

771 

772 

902 

879 

632 

899 

677 

ANNEX  10 

Electricity  prices in ECU per  10 MWh  per year 

Electricity  prices in ECU per  10 MWh  per year 

le 

Jan-85 

Jan-90 

Jan-95 

If 

Jan-85 

Jan-90 

Jan-95 

Belgium (B) 

Denmark (DK) 

Western Zone (D) 

Hamburg (D) 

Athens (GR) 

Madrid (E) 

Paris (F) 

Dublin (IRL) 

Italy (I) 

Luxemburg (L) 

Rotterdam (NL) 

North Brabant (NL) 

Lisbon (P) 

London (UK) 

737 

420 

753 

S10 

855 

635 

567 

854 

902 

665 

870 

558 

765 

636 

694 

475 

917 

914 

652 

829 

581 

652 

737 

733 

663 

496 

699 

634 

776 

Belgium (B) 

433 

Denmark (DK) 

935 

Western Zone (D) 

1022 

Hamburg (D) 

567 

Athens (GR) 

731 

Madrid (E) 

650 

Paris (F) 

629 

Dublin (IRL) 

634 

Italy (I) 

765 

Luxemburg (L) 

700 

Rotterdam (NL) 

533 

North Brabant (NL) 

799 

Lisbon (P) 

600 

London (UK) 

690 

444 

689 

810 

855 

602 

567 

830 

906 

618 

806 

556 

766 

635 

664 

472 

843 

914 

652 

778 

581 

609 

719 

569 

615 

494 

700 

631 

735 

423 

856 

1022 

567 

685 

550 

588 

634 

587 

607 

531 

799 

570 

Electricity  prices in ECU per  10 MWh per year 

Ig 

Jan-85 

Jan-90 

Jan-95 

Belgium (B) 

Denmark (DK) 

Western Zone (D) 

Hamburg (D) 

Athen (GR) 

Madrid (E) 

Paris (F) 

Dublin (IRL) 

Italy (I) 

Luxemburg (L) 

Rotterdam (NL) 

North Brabant (NL) 

Lisbon (P) 

London (UK) 

593 

390 

537 

0 

725 

544 

472 

750 

669 

505 

685 

675 

709 

0 

575 

438 

656 

763 

552 

709 

495 

524 

530 

483 

989 

434 

641 

567 

603 

404 

662 

856 

482 

616 

561 

506 

516 

483 

494 

474 

655 

525 

37 

ANNEX  11 

Gas  prices (net of tax) to industrial users by location in national currency: 
situation and trends on  1 January  1985,1990 and  1995 

Gas  prices  (net of tax) to  industrial  users 

Belgium  (B) 

in BFR/100 GJ/Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

13-2 

14-1 

I4-2 

15 

97.7 

100 

36840 

36840 

36840 

36840 

36840 

36840 

36840 

109,2 

116.6 

24620 

24620 

24620 

24620 

24620 

24620 

24620 

124 

(131) 

23700 

23700 

23700 

23700 

23700 

23700 

23700 

Year 

1985 

1990 

1995 

Denmark  (DK) 

in DKR/100 GJ/Year 

Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

13-2 

14-1 

14-2 

15 

1985 

1990 

1995 

Year 

1985 

1990 

1995 

98 

119,5 

100 

121 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

132 

(131) 

3870 

3650 

2710 

2710 

2370 

2370 

NA 

NA 

N A' 

Weser-Ems  (D) 

in DM/100  GJ/Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

I3-2 

14-1 

I4-2 

15 

99,3 

100 

1438 

1394 

1292 

1292 

1279 

1237 

1228 

105,8 

112,7 

125 

(132) 

838 

978 

794 

875 

665 

678 

665 

678 

609 

569 

609 

569 

584 

517 

Berlin  (D) 

in DM/100  GJ/Year 

Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

I3-2 

j 

14-1 

14-2 

15 

1985 

1990 

1995 

99,3 

100 

105,8 

112,7 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

125 

(132) 

1497 

1072 

1050 

1050 

NA 

NA 

900 

NA 

NA 

872 

NA 

NA 

NA 

Madrid  (E) 

in PTA/100 GJ/Year 

Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

I3-2 

14-1 

I4-2 

15 

1985 

1990 

1995 

Year 

1985 

1990 

1995 

97 

100 

160400 

153600 

152700 

152700 

142,8 

118400 

78500 

73800 

73800 

NA 

NA 

NA 

NA 

MA 

NA 

NA 

(178) 

190010 

83020 

52170 

50250 

46110 

46110 

in  FF/100  GJ/Year 

133,2 

172 

Paris  (F) 

I.P.C. 

P.I  B. 

11 

12 

13-1 

13-2 

14-1 

I4-2 

15 

97,4 

100 

114,7 

119,4 

128 

(134) 

5352 

3796 

3960 

4647 

3157 

3337 

4222 

2298 

2132 

4129 

2242 

1945 

3850 

1975 

1691 

3780 

1925 

1640 

3753 

1901 

NA 

38 

Dublin  (IRL) 

in  IRU100 GJ/Year 

Year 

1985 

1990 

1995 

I.P.C. 

Pl.B. 

11 

12 

13-1 

98,3 

116,7 

130 

100 

114,8 

(126) 

630 

380 

549 

559 

380 

446 

NA 

340 

254 

I3-2 

NA 

340 

254 

14-1 

NA 

175 

NA 

I4-2 

NA 

175 

NA 

15 

NA 

175 

NA 

Milano (1) 

in LIT/• 00 GJ/Year 

Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

I3-2 

14-1 

I4-2 

15 

1985 

1990 

1995 

96,1 

100 

1118900 

1084500 

1008300 

9C4900 

937000 

914400 

862400 

128,2 

139,4 

1163600 

1122400 

529500 

496600 

468200 

434800 

408500 

163 

(171) 

1456300 

1011900 

655100 

6265CJ 

575900 

543800 

NA 

Luxemburg (L) 

in LUF/100 GJ/Year 

Year 

I.P.C. 

P.I.B. 

11 

12 

i3-1 

I3-2 

14-1 

I4-2 

15 

1985 

1990 

1995 

97,8 

108 

124 

100 

32880 

32160 

30800 

28750 

NA 

NA 

116,6 

20003 

17691 

16991 

16767 

16603 

16603 

(132) 

19451 

17610 

17237 

15149 

15086 

15086 

NA 

NA 

NA 

Rotterdam (NL) 

in  HFU100 GJ/Year 

Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

I3-2 

14-1 

14-2 

15 

1985 

1990 

1995 

98,6 

102,5 

119 

100 

104,4 

(117) 

1594 

1140 

1184 

1582 

1125 

1162 

1492 

1492 

1410 

1410 

1328 

762 

742 

762 

742 

645 

593 

645 

593 

London (UK) 

in UKL/100  GJ/Year 

Year 

I.P.C. 

P.I.B. 

11 

12 

13-1 

I3-2 

1985 

1990 

1995 

96,4 

126.3 

154 

100 

131.1 

(157) 

343 

386 

333 

325 

303 

298 

308 

290 

262 

308 

286 

258 

14-1 

308 

246 

256 

I4-2 

308 

242 

227 

39 

NA 

518 

15 

271 

156 

NA 

ANNEX  12 
EUR12: GAS  PRICES  (NET OF  TAX)  TO INDUSTRIAL  USERS  IN PPS/100 GJ 
on  01/01/1995 

Gas  prices  (net  of  tax)  to  industrial  users  on  1/1/1995 

BELGIUM  (B) 

DENMARK(DK) 

WESER-EMS(D) 

BERLIN(D) 

MADRID(E) 

PARIS(F) 

STRASBURG(I0 

DUBLIN(IRL) 

TURIN(I) 

NAPLES(I) 

LUXEMBURG(L) 

ROTTERDAM(NL) 

LONDON(UK) 

BIKMINGIIAM(UK) 

11 

588 

411 

428 

655 

1454 

562 

650 

769 

753s 

1099 

451 

516 

481 

497 

*or  last  known  consumer  where  no  15. 

12 

13-1 

13-2 

14-1 

14-2 

15 

11/15 

342 

251 

249 

394 

354 

240 

N.A. 

N.A. 

340 

340 

350 

259 

371 

334 

316 

251 

249 

382 

354 

233 

N.A. 

N.A. 

321 

321 

350 

259 

328 

N.A. 

N.A. 

N.A. 

226 

N.A. 

N.A. 

N.A. 

N.A.' 

N.A. 

N.A. 

N.A. 

N.A. 

226 

N.A. 

N.A. 

1.90 

1.60 

1.90 

1.70 

4.10 

2.40 

1.90 

2.10 

2.30 

3.42 

1.30 

1.20 

1.50 

1.50 

461 

387 

383 

469 

637 

473 

571 

625 

598 

598 

408 

507 

432 

428 

342 

288 

297 

460 

385 

276 

334 

356 

370 

370 

351 

324 

373 

351 

418 

288 

297 

460 

400 

303 

353 

356 

387 

387 

400 

324 

379 

975 

40 

ANNEX  13 

EUR12:  GAS  PRICES  (NET OF  TAX)  TO  INDUSTRIAL  USERS  IN  PPS/100  GJ 
on  01/01/1990 

Gas  prices  (net  of tax)  to  industrial  users  on 1/1/1990 

Belgium(B) 

11 

12 

580 

469 

13-1 

421 

13-2 

352 

14-1 

352 

14-2 

329 

15 

11/15 

321 

1.80 

Hanover(D) 

672 

569 

•  497 

492 

470 

272 

272 

2.50 

Weser-Ems(D) 

372 

353 

296 

296 

271 

271 

260 

1.40 

Madrid(E) 

Paris(F) 

1006 

667 

627 

627 

N.A 

N.A 

'  N.A 

1.60 

533 

443 

323 

315 

277 

270 

N.A 

2.00 

Stras bo urg(F) 

700 

579 

N.A 

346 

N.A 

N.A 

N.A 

2.00 

Dublin(IRL) 

511 

511 

458 

458 

236 

236 

236 

2.10 

Turin(l) 

Naples(l) 

699 

651 

344 

323 

304 

283 

266 

2.60 

1130 

944 

344 

323 

304 

283 

266 

4.20 

Luxembourg(L) 

468 

414 

398 

393 

389 

389 

N.A 

1.20 

Rotterdam(NL) 

489 

483 

327 

327 

277 

277 

N.A 

1.80 

London(UK) 

588 

461 

441 

435 

374 

368 

237 

2.50 

41 

ANNEX  14 
GAS  PRICES  (NET  OF  TAX)  TO  INDUSTRIAL  USERS  IN  GERMANY 
on  1 January  1990  and  1995 

Gas prices  (net  of  tax)  to  industrial  users  on 1/1/95 

Dusseldorf 
Hamburg 
Hanover 
Dortmund 
Frankfurt 
Stuttgart 
Munich 
Weser-Ems 
Dresden 
Berlin 

11 

1350 
1022 
1289 
1003 
1069 
1231 
1161 
978 
1233 
1497 

12 

983 
1014 
972 
850 
983 
1097 
1094 
875 
994 
1072 

Gas prices  (net  of  tax)  to  industrial  users  on 1/1/90 

Dusseldorf 
Hamburg 
Hanover 
Dortmund 
Frankfurt 
Stuttgart 
Munich 
Weser-Ems 
Dresden 
Berlin 

11 

1306 
1103 
1512 
1028 
992 
1075 
1482 
838 
NA 
NA 

12 

982 
1103 
1280 
834 
939 
1103 
1002 
794 
NA 
NA 

13-1 

967 
861 
844 
822 
847 
1058 
1028 
678 
892 
1050 

13-1 

967 
928 
1119 
806 
718 
1181 
1114 
665 
NA 
NA 

13-2 

919 
786 
836 
789 
817 
944 
836 
678 
836 
1050 

13-2 

924 
853 
1108 
773 
718 
923 
1032 
665 
NA 
NA 

42 

14-1 

14-2 

Germany 
15 

803 
708 
792 
733 
781 
875 
797 
569 
667 
900 

14-1 

914 
834 
1058 
684 
714 
923 
864 
609 
NA 
NA 

756 
NA 
NA 
703 
753 
750 
742 
569 
NA 
872 

14-2 

772 
612 
612 
684 
714 
834 
751 
609 
NA 
NA 

433 
NA 
NA 
433 
NA 
NA 
456 
517 
NA 
NA 

Germany 
15 

635 
612 
612 
621 
714 
834 
609 
584 
NA 
NA 

ANNEX  15 
Ranking  of  locations  in  increasing  order  of  price  on  1 January  1995 

Ranking  of  locations  in  increasing order of price 

01/01/1995 

11 

12 

13-1 

Denmark(DK) 

Weser-Ems(D) 

Denmark(DK) 

I3-2 
Paris(F) 

14-1 
Paris(F) 

14-2 
Paris(F) 

15 
Weser-Ems(D) 

Weser-Ems(D) 

Denmark(DK) 

Weser-Ems(D) 

Denmark(DK) 

Weser-Ems(D)  Weser-Ems(D)  Rotterdam(NL) 

Luxembourg(L) 

Luxembourg(L) 

Paris(F) 

Weser-Ems(D) 

Denmark(DK) 

Denmark(DK) 

London (UK) 

Birmingham(UK) 

Rotterdam(NL) 

Rollerdam(NL) 

Rotterdam(NL)  Rotterdam(NL) 

Birmingham(UK) 

London(UK) 

Strasbourg(F) 

Strasbourg(F) 

Birmingham(UK)  Belgium(B) 

Rotterdam(NL) 

Belgium(B) 

Dublin(IRL) 

Belgium(B) 

Turin (I) 

Turin (I) 

Paris(F) 

Behin(D) 

Birmingham(UK) 

Birmingham(UK) 

Belgium(B) 

Paris(F) 

London(UK) 

Luxembourg(L) 

Strasbourg(F) 

Rotterdam(NL) 

Turin (I) 

Dublin(IRL) 

Berlin (D) 

Strasbourg(F) 

Naples(l) 

Turin (I) 

Naples(l) 

Naples(l) 

Belgium(B) 

London(UK) 

Luxembourg(L) 

Luxembourg(L) 

Madrid(E) 

Madrid(E) 

Tu fin (I) 

Turin (I) 

Luxembourg(L) 

Naples(l) 

London(UK) 

Berlin(D) 

Dublin (IRL) 

Naples(l) 

Madrid(E) 

London(UK) 

Beriin(D) 

Naples(l) 

Dublin (IRL) 

Belgium(B) 

Madrid(E) 

M ad rid (E) 

Madrid(E) 

Berlin(D) 

Beriin(D) 

43 

ANNEX  16 

RANKING  OF  LOCATIONS  IN  INCREASING  ORDER  OF  PRICE 
on  1 January  1990 

Ranking  of  locations  in  increasing  order  of  price 

GazOl/01/90 

II 

12 

13-1 

13-2 

14-1 

14-2 

15 

Weser-Ems(D)  Weser-Ems(D)  Weser-Ems(D)  Weser-Ems(D)  Dublin(IRL) 

Dub lin (IRL) 

Dublin(IRL) 

Luxembourg(L) Luxembourg(L)  Paris(F) 

Paris(F) 

Weser-Ems(D)  Paris(F) 

London(UK) 

Rotterdam(NL)  Paris(F) 

Rotterdam(NL)  Turin(I) 

Paris(F)  %  Weser-Ems(D)  Weser-Ems(D) 

Dublin(IRL) 

London(UK) 

Turin(I) 

Naples(I) 

Rotterdam(NL)  Hanover(D) 

Turin(I) 

Paris(F) 

Belgium(B) 

Naples(I) 

Rotterdam(NL)  Turin (I) 

Rotter dam(NL)  Naples(I) 

Belgium(B) 

Rotterdam(NL)  Luxembourg(L)  Strasbourg(F)  Naples(I) 

Turin(I) 

Hanover(D) 

London(UK)  Dublin(IRL) 

Belgium(B) 

Belgium(B) 

Belgium(B) 

Naples(I) 

Belgium(B) 

Hanover(D) 

Hanover(D) 

London(UK) 

Luxembourg(L)  London(UK) 

Belgium(B) 

Turin(I) 

Strasbourg(F)  Dublin(IRL) 

London(UK) 

Luxembourg(L)  London(UK) 

Strasbourg(F)  Turin(I) 

Hanover(D) 

Dublin(IRL) 

Honover(D) 

Luxembourg(L) 

Madrid(E) 

:  Madrid(E) 

Madhd(E) 

Hanover(D) 

Naples(l) 

Naples(I) 

Madhd(E) 

44 

ANNEX  17 
GAS  PRICES  IN ECU  IN  1985 -  1990 -  1995 

Gas prices  in ECU/100 GJ/Year 

Gas prices  in  ECU/100 GJ/Year 

11 

Jan-85 

Jan-90 

Jan-95 

12 

Jan-85 

Jan-90 

Jan-95 

Belgium(B) 

Denmark(DK) 

Weser-Ems(D) 

Madrid(E) 

Paris(F) 

Strasbourg(F) 

Dublin(IRL) 

Turin(l) 

Naples(l) 

Luxembourg(L) 

Rotterdam(NL) 

London(UK) 

827 

NA 

647 

1304 

786 

937 

882 

877 

NA 

738 

634 

551 

578 

NA 

412 

897 

548 

720 

494 

710 

605 

Belgium(B) 

517 

Denmark(DK) 

514 

Weser-Ems(D) 

1155 

Madrid(E) 

602 

Paris(F) 

697 

Strasbourg(F) 

689 

Oublin(IRL) 

638 

Turin(l) 

1148 

931 

Naples(l) 

469 

497 

530 

497 

Luxembourg(L) 

556 

Rotterdam(NL) 

422 

London(UK) 

758 

NA 

627 

1249 

683 

779 

783 

827 

NA 

722 

630 

523 

467 

NA 

390 

595 

456 

595 

494 

661 

958 

415 

490 

416 

Gas prices  in ECU/100  GJ/Year 

Gas prices  in ECU/100 GJ/Year 

13-1 

Jan-85 

Jan-90 

Jan-95 

I3-2 

Jan-85 

Jan-90 

Jan-95 

Belgium(B) 

Denmark(DK) 

Weser-Ems(D) 

Madrid(E) 

Paris(F) 

Strasbourg(F) 

Dublin(IRL) 

Turin(l) 

Naples(l) 

Luxembourg(L) 

Rotterdam (NL) 

London(UK) 

692 

NA 

581 

1241 

620 

NA 

NA 

736 

736 

692 

594 

495 

419 

NA 

327 

559 

332 

NA 

442 

349 

349 

399 

332 

398 

408 

Belgium(B) 

362 

Denmark(DK) 

357 

Weser-Ems(D) 

317 

Madrid(E) 

324 

Paris(F) 

378 

Strasbourg(F) 

319 

Dublin(IRL) 

328 

Turin(l) 

328 

Naples(l) 

440 

Luxembourg(L) 

348 

Rotterdam(NL) 

332 

London(UK) 

632 

NA 

581 

1241 

606 

639 

NA 

719 

719 

646 

594 

495 

350 

NA 

327 

559 

324 

356 

442 

328 

328 

393 

332 

393 

474 

487 

460 

505 

508 

612 

560 

506 

506 

450 

454 

378 

329 

362 

357 

305 

296 

358 

319 

313 

313 

387 

348 

327 

45 

Gas  prices  in  ECU/100  GJ/Year 

Gas  prices  in  ECU/100  GJ/Year 

14-1 

Jan-85 

Jan-90 

Jan-95 

14-2 

Jan-85 

Jan-90 

Jan-95 

611 

NA 

556 

NA 

555 

NA 

NA 

668 

668 

NA 

561 

495 

327 

NA 

299 

NA 

278 

NA 

227 

287 

287 

390 

281 

332 

303 

316 

299 

280 

249 

NA 

NA 

272 

272 

385 

278 

287 

Belgium(B) 

Dcnmark(DK) 

Weser-Ems(D) 

Madrid(E) 

Paris(F) 

Strasbourg(F) 

Dublin(IRL) 

Turin(I) 

NapIes(I) 

Luxembourg(L) 

Rotterdam(NL) 

London(UK) 

632 

NA 

575 

NA 

565 

NA 

NA 

684 

684 

NA 

561 

495 

350 

NA 

299 

NA 

285 

NA 

227 

309 

309 

390 

281 

338 

329 

Belgium(B) 

316 

Denmark(DK) 

299 

Weser-Ems(D) 

280 

Madrid(E) 

257 

Paris(F) 

NA 

Strasbourg(F) 

NA 

Dublin(IRL) 

288 

Turin(T) 

288 

NaplesfT) 

385 

Luxembourg(L) 

278 

Rotterdam(NL) 

325 

London(UK) 

Gas  p r i c es 

in  ECU/100  G J / Y e ar 

15-1 

Jan-85 

Jan-90 

Jan-95 

Belgium(B) 

Denmark(DK) 

Weser-Ems(D) 

Mad rid (E) 

ParisfF) 

Strasbourg(F) 

Dublin(IRL) 

Turin(l) 

Naples(l) 

L u x e m b o u r g ( L) 

Rotterdam(NL) 

L o n d o n ( U K) 

605 

NA 

552 

NA 

551 

NA 

NA 

630 

630 

NA 

529 

436 

320 

NA 

287 

NA 

275 

NA 

227 

270 

270 

NA 

NA 

214 

NA 

NA 

272 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

243 

NA 

46 

2 5 00 

2 0 00 

1S00 

1 0 00  -1 

5 00 

0 •> 

2 0 00 

1 5 00 

1 0 00 

5 0 0 -1 

20O0 

1 5 00 

lOOO  -V 

5 00  A 

G R A P HS 

ELECTRICITY  PRICES  1985. 1990, 1995 

i/'A 

l.i 

ECU 

la 

SPA 

Ib 

2500 

1S00 

1000 

5 00 

20O0 

1500 

1000 

5Mli-fe 

ECU3b 

SPA 

Ic 

ECU 

Ic 

1500  4— 

\*0%?0txi 

Jan-90 

P7' 
Li 

J.-.n  9' 

Noies:  1-  Bclgium(B)4-  Hamburg(D)7-  Paris(F)10-  Luxembourg(L)l3  -  L.isbon(P) 
2-  Dcnmark(DK)5-  Alhens(G)8-  Dublin(lRL)l  1-  Rottcrdani(NL)l4-  London(UK) 
3-  Western  Zonc(D)6-  Madnd(E)9-  Italy(I)12-  North  Brabanl 

47 

GRAPHS 

ELECTRICITY  PRICES  1985, 1990. 1395 

Notes:  1- Belgium(B)4- Hamburg(D)7-Paris(F)10- Luxembourg(L)13-  Lisbon(P) 
2-  Denmark(DK)5-Athens(G)8-Dublin(IRL)11-Rotterdam(NL)14-  London(UK) 
3- Western Zone(D)6- Madrid(E)9- ltaly(l)12- North  Brabant 

48 

GRAPHS 

N A T U R AL  GAS  PRICES  IN  1985.  1990  and  1995 

•f= 

Notes:  1-  Belgium(B)4-  Hamburg(D)7-  Dublin(IRL)10-  Luxembourg(L) 
2-  Denmark(DK)5-  Paris  (F)8-Turin(I)l  1-  Rotterdani(NL)) 
3-  Wcser-Ems(D)6-  Strasbourg  (F)0-Naples(l)l 2-  London  (UK) 

49 

GRAFMS 

NATURAL  GAS  PRICES  IN  1985.  1990 and  1995 

Notes  1-  Belgium(B)4-Hamburg(D)7-Dublin(IRL)10-Luxembourg(L) 
2-  Denmark(DK)5-  Paris  (F)8-Turin(l)11 - Rotterdam(NL)) 
3-  Weser-Ems(D)6-  Strasbourg  (F)9-Naples(l)1 2- London  (UK) 

r^0 

ISSN 0254-1475 

COM(96) 92 final 

DOCUMENTS 

EN 

10  12 

Catalogue number  :  CB-CO-96-097-EN-C 

ISBN 92-78-01237-8 

Office  for  Official  Publications  of the European  Communities 

L-2985 Luxembourg 

5i