Amended proposal for a COUNCIL DIRECTIVE to introduce rational planning planning techniques in the electricity and gas distribution sectors
Date: 1997-03-24
Institutions: European Commission
Subjects: electricity supply, energy saving, gas, management techniques, principle of subsidiarity

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.03.1997 
COM(97) 69 final 

95/0208 (SYN) 

Amended proposal for a 

COUNCIL DIRECTIVE 

to introduce rational planning techniques in the electricity and gas 

distribution sectors. 

(presented by the Commission pursuant to Article  189 a (2) 
of the EC-Treaty) 

EXPLANATORY MEMORANDUM 

The Commission  adopted  on  29  September  1995  a proposal  for  a Directive  on the 

introduction  of  rational  planning  techniques  in  the  electricity  and  gas  distribution 

sectors. The proposal is based on Article  130s (1) of the Treaty which foresees the co 

operation procedure with the European Parliament.  The European Parliament gave its 

First Opinion on 13 November 1996. Fourteen amendments were voted and accepted. 

In general, the amendments have improved the text. 

Five amendments (No  6,  7,  8,  9 and  10) were  accepted by the Commission without 

reserve. Four amendments (No 5,  12, 13 and 14) were partially accepted. 

Five amendments were rejected in full. 

Am.  1 makes reference to a Legal Basis of Article  100A which the Commission does 

not consider to be valid. 

Am. 2 makes reference to a Legal Basis of Article  100A which the Commission does 

not consider to be valid. 

Am. 3 makes reference to a Legal Basis of Article  100A which the Commission does 

not consider to be valid. 

Am. 4 makes reference to a Legal Basis of Article  100A which the Commission does 

not consider to be valid. 

Am.  11 the amendment introduces ambiguity when speaking of 'cost to the consumer' 

which the Commission considers weakens the Directive. 

The amendments rejected in part are: 

Am.  5  second  part,  makes  reference  to  a  Legal  Basis  of  Article  100A  which  the 

Commission does not consider to be valid. 

Am.  12 first part,  the  Commision  considers  setting  a  quantified  objective  for  a 

Directive to be inappropriate. 

Am. 13 point a) the Commission considers the amendment to be too limiting. 

point d) the wording of the amendment is considered to be too constraining. 

Am  14.  point  e)  the  use  of  the  words  'make  compulsory'  is  considered  too 

constraining. 

ORIGINAL TEXT 

AMENDED  TEXT 

Proposal for a 

COUNCIL  DIRECTIVE 

Proposal for a 

COUNCIL  DIRECTIVE 

to introduce  rational planning 

to introduce rational  planning 

techniques in the electricity  and 

techniques in the electricity and 

gas distribution  sectors. 

gas distribution sectors. 

THE  COUNCIL  OF  THE  EUROPEAN 

THE  COUNCIL  OF  THE  EUROPEAN 

UNION 

UNION 

Having regard to the Treaty establishing the 

Having regard to the Treaty establishing the 

European  Community,  and  in  particular 

European  Community,  and  in  particular 

Article 130s para.  1  thereof, 

Article 130s para. 1 thereof, 

Having  regard  to  a  proposal  from  the 

Having  regard  to  a  proposal  from  the 

Commission,1 

Commission,1 

In 

cooperation  with 

the  European 

Parliament,2  as foreseen  by  Article  189c  of 

In 

cooperation  with 

the  European 

Parliament,2  as foreseen  by Article  189c  of 

the Treaty establishing the European Union 

the Treaty establishing the European Union 

Having  regard  to  the  opinion  of  the 

Having  regard  to  the  opinion  of  the 

Economic and Social Committee,3 

Economic and Social Committee,3 

kWNo 

2OJNo 

3 OJ No C240/78 of 15.7.1996 

ORIGINAL TEXT 

AMENDED TEXT 

Having  regard  to  the  opinion  of  the 

Having  regard  to  the  opinion  of  the 

Committee of the Regions4; 

Committee of the Regions4; 

Whereas  on  29  October  1990  the  Council 

Whereas  on  29  October  1990  the  Council 

set  an objective  of the  stabilisation  of  total 

set  an objective  of the  stabilisation  of  total 

C02 emissions by the year 2000 at the 1990 

C02 emissions by the year 2000 at the  1990 

level in the Community as a whole; 

level in the Community as a whole; 

Whereas  Article  130r  of 

the  Treaty 

Whereas  Article  130r  of 

the  Treaty 

stipulates that one objective of the action of 

stipulates that one objective of the action of 

the Community  relating to  the  environment 

the Community relating to  the  environment 

shall  be  to  ensure  a  prudent  and  rational 

shall  be  to  ensure  a  prudent  and  rational 

utilisation  of natural resources; whereas the 

utilisation of natural resources; whereas the 

power generation industry is responsible for 

power generation industry is responsible for 

30% and the natural  gas  sector for  18% of 

30% and the natural gas  sector for  18% of 

the C02 emissions in the Community5; 

the C02 emissions in the Community5; 

Whereas on the 24 June 1993 the Council of 

Whereas on the 24 June 1993 the Council of 

Minister  adopted  a  monitoring  mechanism 

Minister  adopted  a  monitoring  mechanism 

for  C02  emissions  and  other  greenhouse 

for  C02  emissions  and  other  greenhouse 

gases6, 

"OJNo.C337/41of  11.11.1996 
5 A View to the Future, Commission of the European Communities, September 1992. 

6O.J. No. L167 of 9.7.93 

ORIGINAL TEXT 

AMENDED  TEXT 

Whereas,  given  the  transnational  nature  of 

Whereas,  given  the  Commission  proposals 

C02  emissions,  the  introduction  of  rational 

for  an 

Internal  Energy  Market, 

the 

planning techniques in the gas and electricity 

introduction  of  rational  planning techniques 

distribution sectors can only be  satisfactorily 

in the gas and  electricity distribution  sectors 

implemented  at the  level  of Member States; 

can only be satisfactorily  implemented  at the 

and whereas,  in  application  of the  principle 

level  of  Member  States;  and  whereas,  in 

of  subsidiarity  as  set  out  in  Art.  3b  of  the 

application of the principle of subsidiarity as 

Treaty 

establishing 

the 

European 

set out in Art.  3b of the Treaty  establishing 

Community,  what 

is  proposed  by  the 

the European Community, what is proposed 

adoption  of  the  present  Directive  is  the 

by the  adoption  of  the  present  Directive  is 

establishment  of  common  measures  to  be 

the  establishment  of  common  measures  to 

applied by all Member States, while leaving 

be  applied  by  all  Member  States,  while 

to each Member State the flexibility to adapt 

leaving to  each Member State the  flexibility 

them to the peculiarities of its energy sector. 

to  adapt  them  to  the  peculiarities  of  its 

energy sector. 

Whereas  the  Commission's  White  Paper 

'Growth,  Competitiveness,  Employment. 

The Challenges and Ways Forward into the 

21st  Century',  has  emphasised  the  urgent 

need to improve European competitiveness; 

Whereas  the  Commission's  White  Paper 

'An Energy Policy for the European Union' 

states that the import dependency,  currently 

close  to  half  of  gross  consumption,  could 

move towards three quarters by 2020; 

Whereas  in  its  Resolution  of  15  January 

Whereas  in  its  Resolution  of  15  January 

1985  on the improvement  of  energy  saving 

1985  on the improvement  of  energy  saving 

programmes  in  the  Member  States,  the 

programmes  in  the  Member  States,  the 

Council  invited  the  latter  to  pursue  and 

Council  invited  the  latter  to  pursue  and 

ORIGINAL TEXT 

AMENDED  TEXT 

where  necessary  increase  their  efforts  to 

where  necessary  increase  their  efforts  to 

promote the more rational use of energy by 

promote the more rational use of energy by 

the 

further  development  of 

integrated 

the 

further  development  of 

integrated 

energy saving policies;7 

energy saving policies;7 

Whereas in its Resolution  of  16  September 

Whereas in its Resolution  of  16  September 

1986 

the  Council  adopted 

for 

the 

1986 

the  Council  adopted 

for 

the 

Community  the  objective  of  achieving  a 

Community  the  objective  of  achieving  a 

more  rational  use  of  energy  through 

more  rational  use  of  energy  through 

improved  energy  efficiency  and  that  the 

improved  energy  efficiency  and  that  the 

efficiency  of  final  demand  should  be 

efficiency  of  final  demand  should  be 

improved by at least 20% by 1995;8 

improved  by  at  least  20%  by  1995;8  and 

whereas  this  target  has  not  been  achieved 

and 

so  requires  greater  efforts  and 

effectiveness by legislative actions; 

Whereas  improved  energy  efficiency  will 

Whereas  improved  energy  efficiency  will 

impact  positively  on  both  the  security  of 

impact  positively  on  both  the  security  of 

energy  supplies  and the  environment  which 

energy  supplies and the  environment  which 

are  global 

in  nature,  a  high  level  of 

are  global 

in  nature,  a  high  level  of 

international  co-operation  is  desirable  to 

international  co-operation  is  desirable  to 

produce the most positive results; 

produce the most positive results; 

Whereas 

the  relationship  between 

the 

Whereas it is essential,  in order to  promote 

electricity  and  gas  distribution  companies 

rational  energy  use  and  improve  energy 

and  the  final  consumer  provides  an  ideal 

efficiency,  to  change the  traditional role  of 

opportunity  for  the  companies  to  influence 

gas  and  electricity  distributors  which  is  to 

the energy efficiency  investment  decision  of 

sell energy products by endowing them with 

the consumers; 

the role of providers of energy services; 

7 OJ No. C 020, 22.1.1985, p. 29 

8 OJ No. C 241,25.9.1986, p. 3 

(, 

ORIGINAL  TEXT 

AMENDED  TEXT 

Whereas,  to  that  end,  the  Member  States 

must,  on the one hand, perfect  mechanisms 

making it  possible  to  dissociate  the volume 

of  product  sales  (electricity  and  gas)  and 

profits,  and,  on  the  other,  bring  about  the 

separation  of  the  different  activities  in  the 

energy  chain,  viz.  fuel  supply,  production, 

transport and distribution of electricity; 

Whereas  all  classes  of  electricity  and  gas 

Whereas  all  classes  of  electricity  and  gas 

consumers,  including residential  consumers, 

consumers, including residential  consumers, 

will  benefit  directly  from  a  more  rational 

will  benefit  directly  from  a  more  rational 

planning process by the distribution utilities; 

planning process by the distribution utilities; 

Whereas the Council at its meeting of 5 June 

Whereas the Council at its meeting of 5 June 

1989  decided  on  the  establishment  of  a 

1989  decided  on  the  establishment  of  a 

Community 

action 

programme 

for 

Community 

action 

programme 

for 

improving the efficiency of electricity use9; 

improving the efficiency of electricity use9; 

Whereas  the  Council  on  the  28  October 

Whereas  the  Council  on  the  28  October 

1991  adopted  a  Community 

energy 

1991  adopted  a  Community 

energy 

efficiency  programme  (SAVE)10  aimed  at 

efficiency  programme  (SAVE)10  aimed  at 

strengthening 

energy 

efficiency 

strengthening 

energy 

efficiency 

infrastructures within the Community. 

infrastructures within the Community. 

' O.J. L157 of 9.6.1989 p.32-34 

J0OJ.L307of8.11.91 

ORIGINAL  TEXT 

AMENDED  TEXT 

Whereas  the  Council  and  the  Parliament 

Whereas  the  Council  and  the  Parliament 

have  established  a  Fourth  Framework 

have  established  a  Fourth  Framework 

Programme1 ^or  actions  in  technological 

Programme11  for  actions  in  technological 

research,  development  and  demonstration 

research,  development  and  demonstration 

and  that  Integrated  Resource  Planning 

and  that  Integrated  Resource  Planning 

constitutes  an important  instrument  for  the 

constitutes  an important  instrument  for  the 

use  and  promotion  of  new  energy 

use  and  promotion  of  new  energy 

technologies 

that 

the 

Framework 

technologies 

that 

the 

Framework 

Programme will establish, 

Programme will establish, 

HAS ADOPTED THIS DIRECTIVE: 

HAS ADOPTED THIS DIRECTIVE: 

O.J.L 334 of 22.12.94 

i 

ORIGINAL  TEXT 

AMENDED  TEXT 

Article 1 

Article 1 

The  purpose  of  this  Directive 

is 

to 

The  purpose  of  this  Directive 

is 

to 

contribute  to  the  Community  objective  of 

contribute  to  the  Community  objective  of 

stabilising  carbon  dioxide  emissions  by  the 

stabilising  carbon  dioxide  emissions  by  the 

year  2000  at  the  1990 

level 

in  the 

year  2000  at  the  1990 

level 

in  the 

Community  as  a  whole  while  at  the  same 

Community  as  a  whole  while  at  the  same 

time  improving  the  competitiveness  of  the 

time  improving  the  competitiveness  of  the 

Community economy by improving end-use 

Community economy by improving end-use 

efficiency 

in 

the  electricity  and  gas 

efficiency 

in 

the  electricity  and  gas 

distribution sectors through the introduction 

distribution sectors through the introduction 

of more rational planning techniques.  These 

of more rational planning techniques.  These 

techniques 

(hereinafter  referred 

to  as 

techniques 

shall 

evaluate 

investment 

Integrated Resource Planning) shall evaluate 

opportunities  in  energy  supply  and  energy 

investment  opportunities  in  energy  supply 

demand  reduction  (including  Demand  Side 

and  energy  demand  reduction  on  an  equal 

Management  and  Combined  Heat  and 

economic basis. 

Power) on an equal economic basis. 

Article 2 

Ar tide 2 

Member States shall take the following steps 

Member States shall take the following steps 

to  promote, 

through  a  framework  of 

to  promote, 

through  a  framework  of 

measures,  the  use  of  integrated  resource 

measures,  the  increased  use  of  rational 

planning  as  a  tool  for  a  more  rational 

planning  techniques  by  electricity  and  gas 

approach by  electricity  and gas  distribution 

distribution/supply 

companies 

in 

their 

companies to the problem of meeting future 

approach to  the problem  of  meeting  future 

energy demand: 

energy services demand: 

a) 

establish 

procedures  whereby 

a) 

establish 

procedures  whereby 

electricity  and  gas  distribution 

electricity 

and 

gas 

companies  periodically  present 

distribution/supply 

companies 

ORIGINAL TEXT 

AMENDED  TEXT 

integrated  resource  plans  to  the 

periodically 

present 

to 

the 

competent 

authorities 

to 

be 

competent 

authorities 

to 

be 

determined  by  the  Member  States. 

determined by the Member States a 

The  integrated  resource  plan  shall 

strategic development plan showing 

evaluate  all  resource  alternatives 

how  they will  meet  future  demand 

(including 

demand 

side 

requirements. 

This 

resource 

management) on an equal economic 

selection  plan  shall  evaluate  all 

basis. 

resource  alternatives 

(including 

demand  side  management)  on  an 

equal economic basis. 

b) 

examine  whether  the  economic 

b) 

examine  whether  the  economic 

energy 

efficiency 

measures 

energy 

efficiency 

measures 

identified  by 

the 

integrated 

identified  by  (delete)  the  strategic 

resource plan are undertaken. 

development plan are undertaken. 

c) 

review  existing  legislation  in  this 

c) 

review  existing  legislation  in  this 

area to  ensure that mechanisms are 

area to  ensure that mechanisms are 

established  which  permit  electricity 

established which: 

and  gas  distribution  companies  to 

1.  permit  electricity  and  gas 

recover  expenditure  on  energy 

distribution/supply  companies 

to 

efficiency  programmes  provided  to 

sell 

energy-saving 

services 

to 

consumers. 

Such  mechanisms 

customers; 

should  ensure 

that  distribution 

2.  do  not  adversely  affect  the 

companies 

which 

undertake 

competitive  position  of  electricity 

demand-side 

management 

and gas in relation to  other energy 

programmes  are  not  net  revenue 

sources falling outside the scope  of 

losers. 

this directive; 

Such  mechanisms  should  provide 

an  incentive  for  distribution/supply 

companies,  or  other  bodies,  to 

1P 

ORIGINAL TEXT 

AMENDED  TEXT 

utilise 

cost 

effective 

rational 

planning 

techniques 

through 

decoupling  profits 

from 

sales 

volumes; 

d) 

encourage 

electricity  and  gas 

d) 

encourage 

electricity  and  gas 

distribution companies to: 

distribution companies to: 

provide energy services 

that  meet  the  needs  of 

heat,  light  and  power 

at  the  lowest  cost  to 

the customers; 

ensure  that  customers 

have  clearly  identified 

costings  of  energy and 

energy 

services 

provision; 

set  up  comprehensive 

set  up  comprehensive 

information 

programmes  aimed  at 

informing 

consumers 

on 

rational 

energy 

efficiency choices; 

provide, 

where 

necessary, incentives to 

consumers to carry out 

energy 

efficiency 

investments; 

information 

programmes  aimed  at 

informing 

customers 

about  rational  energy 

efficiency services; 

provide, 

where 

necessary, incentives to 

customers to  carry out 

energy 

efficiency 

investments  such  as 

building insulation; 

set  up  demand-side 

set  up  demand-side 

management 

management 

programmes 

targeted 

programmes 

targeted 

11 

ORIGINAL  TEXT 

AMENDED  TEXT 

at  low  income  energy 

customers who spend a 

disproportionate 

amount 

of 

their 

disposable  income  on 

energy.  Where  such 

programmes 

might 

prove  of  limited  value 

to  distribution/supply 

companies it  should be 

ensured 

that 

social 

costs  are  not  paid  for 

by 

the 

service 

providers, so that there 

are no cross-subsidies; 

invest 

in 

energy 

efficiency  through  the 

creation  of  subsidiaries 

offering 

third  party 

financing  facilities  to 

customers,  or  support 

the  efforts  of  existing 

third  party  financing 

companies; 

encourage 

establishment 

the 

of 

branches 

offering 

consumers 

financing 

mechanisms 

through 

the 

intervention 

of 

third 

parties 

and 

support  the  efforts  of 

at  low  income  energy 

consumers  who  spend 

a 

disproportionate 

amount 

of 

their 

disposable  income  on 

energy; 

invest 

in 

energy 

efficiency  through  the 

creation  of  subsidiaries 

offering 

third  party 

financing  facilities  to 

consumers, or  support 

the  efforts  of  existing 

third  party  financing 

companies; 

01 

ORIGINAL TEXT 

AMENDED  TEXT 

existing 

companies 

operating that mode  of 

financing; 

e) 

promote  the  integration  of Demand 

e) 

promote the integration of Demand 

Side  Management  options  into  capacity 

Side  Management  and  Demand 

tendering  procedures  in  the  distribution 

Side  Bidding  options  into  capacity 

sector where these exist. 

tendering/contracting 

procedures 

in 

the 

electricity 

and 

gas 

distribution/supply 

sector  where 

these exist. 

Article 3 

Article 3 

The Member States will co-operate with the 

The Member States will co-operate with the 

Commission  in  carrying  out  reviews,  every 

Commission  in  carrying  out  reviews,  every 

two  years  for  the  next  eight  years,  of  the 

two  years  for  the  next  eight  years,  of  the 

results of the measures taken on the basis of 

results of the measures taken on the basis of 

this Directive. 

this Directive. 

Article 4 

Article 4 

1. 

The Member States shall bring into 

1. 

The Member States shall bring into 

force  the  provisions  necessary  to 

force  the  provisions  necessary  to 

comply with this Directive not later 

comply with this Directive not later 

than 

They 

shall 

than 

They 

shall 

immediately 

inform 

the 

immediately 

inform 

the 

Commission of these measures. 

Commission of these measures. 

When  Member  States  adopt  these 

When  Member  States  adopt  these 

provisions,  these  shall  contain  a 

provisions,  these  shall  contain  a 

lb 

ORIGINAL TEXT 

AMENDED  TEXT 

reference  to  this  Directive  or  shall 

reference  to  this  Directive  or  shall 

be  accompanied  by  such  reference 

be  accompanied  by  such  reference 

at 

the 

time  of 

their  official 

at 

the 

time  of 

their  official 

publication. The procedure for such 

publication. The procedure for such 

reference  shall  be  adopted  by 

reference  shall  be  adopted  by 

Member States. 

Member States. 

2. 

Member  States  shall  communicate 

2. 

Member  States  shall  communicate 

to the Commission the texts of the 

to the Commission the texts of the 

provisions  of  national  law  which 

provisions  of  national  law  which 

they adopt in the field of governed 

they adopt in the field of governed 

by this Directive. 

by this Directive. 

Article 5 

Article 5 

This Directive  is  addressed  to  the Member 

This Directive  is  addressed  to  the  Member 

States. 

States. 

Done at Brussels, 

Done at Brussels, 

fl 

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