Proposal for a Council Regulation (EC) extending the validity of the programme to promote international cooperation in the energy sector (Synergy programme), as established by Council Regulation (EC) No 701/97 of 14 April 1997
Date: 1997-10-02
Institutions: European Commission
Subjects: EU programme, energy consumption, energy policy, international cooperation, security of supply

•WWWflfPRFfW 

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  02.10.1997 
COM(97) 488  final 

97/0251  (CNS) 

Proposal for a 

COUNCIL REGULATION flEO 

extending the validity of the programme to promote international 

cooperation in the energy sector - Synergy programme -

as established by Council Regulation (EC) No 701/97 

of 14 April 1997 

(presented by the  Commission) 

Explanatory  memorandum 

On  14  April  1997  the  Council  adopted  the  Regulation  concerning  a  programme  to 
promote  international  cooperation  in  the  energy  sector-  Synergy  programme-  for  a 
period  of one year,  covering  1997.  This called on the  Commission  to  present,  before  the 
end  of  1997, a communication  on  all the  Community programmes  which  have  an  energy 
component  and a proposal for a framework  energy programme. 

» 

In  response,  on  23 April  1997  the  Commission  adopted  a  communication  entitled  "An 
overall view  of energy policy  and  actions".  The  objective  of the  communication  was  to 
bring  greater  transparency  to  the  Community's  energy  policy. 
It  marked  an  initial 
response to the Council's request. 

Apart from increased transparency, the communication  draws two  operational  conclusions 
as regards the policy which could be followed in future: 

energy  measures  should  be  strengthened  so  as better  to  respond  to  the  expected 
significant  increase  in  external  dependency,  to  the  objective  of  competitiveness, 
and to the need to respect the environment; 

with  a  view  to  increased  efficiency,  efforts  should  be  made  at  clarification  and 
streamlining.  Community energy policy needs a coherent  framework  to  allow it to 
fulfil  its priority purposes with adequate means. 

At the Council meeting  on energy on 27 May the Presidency drew  conclusions in which it 
"supports the Commission in its intention to continue with its analyses in this direction and 
to present proposals on the basis of the treaties and the allocation  of responsibilities  before 
the-endof 1997". 

The  Commission  will  submit  appropriate  proposals  by  the  end  of  the  year.  However, 
clearly it will not be possible definitively to adopt a new programme before  the first half of 
1998, given the  scope  of the new proposal  and the  consequent  need  for  in-depth  analysis 
and adequate negotiations. 

With this in mind, the  Council annexed  a declaration to the Regulation  of  14 April  stating 
that  should  it prove  impossible  to  adopt  the  framework  energy  programme  provided  for 
by Article 3(3) by the end of  1997, the Council would decide on the question  of extension 
of the Synergy programme  at the appropriate time. 

Consequently,  the  objective  of this proposal  is to  secure  the  continuity,  for  1998,  of  the 
action started by Synergy, until these measures are incorporated  into the new programme. 
The  amount  proposed  is  identical  to  the  amount  for  1997  and  in  line  with  the  1998 
prelirninary draft  budget  submitted by the Commission. 

Proposal for a 

COUNCIL REGULATION  fEQ 

extending the validity of the programme to promote international 

cooperation in the energy sector - Synergy programme -

as established by Council Regulation (EC) No 701/97 

of 14 April  1997 

THE COUNCIL OF THE EUROPEAN  UNION, 

Having  regard  to  the  Treaty  estabhshing  the  European  Community,  and  in  particular 
Article 235 thereof, 

Having regard to the proposal from the  Commission, 

Having regard to the opinion of the European  Parliament, 

Whereas Coimcil Regulation  (EC) No 701/97  of  14 April  1997 adopting  a programme  to 
promote  international  cooperation  in  the  energy  sector -  Synergy  programme1 -  and  in 
particular  Article 3  thereof,  provides  for  implementation  of  the  Synergy  programme  to 
start  on  1  January  1997 and end on 31 December  1997; 

Whereas the declaration  annexed to the Council minutes states that  should it be impossible 
to  adopt  the  framework  energy  programme  provided  for  by  Article 3(3)  of  the 
abovementioned  Regulation  before  the  end  of  1997,  the  Council  will  decide  on  the 
question of extension  of the  Synergy programme at the appropriate time; 

Whereas  the  Commission  communication  entitled  "An  overall view  of  energy  policy  and 
actions"  concludes  that  an  effort  is  needed  to  improve  the  transparency  of  Community 
energy  policy  and  marks  a  first  step  towards  a  proposal  for  a  framework  energy 
programme; 

Whereas the Council Presidency's conclusions of 27 May  1997 supported the  Commission 
in its intention  to  continue  with  its  analyses to  define  a pluriannual  programme,  covering 
all Community  energy action, with  a view to present proposals  on the basis  of the  treaties 
and the allocation  of responsibilities before the end of 1997; 

Whereas it is necessary  to  extend  the  Synergy programme  for  one year,  on  a  transitional 
basis, until the programme is incorporated  into the new framework energy programme; 

Whereas the Treaty  provides  no  powers  for  adoption  of this Regulation  other  than  those 
provided by Article 235 of the EC  Treaty, 

HAS ADOPTED THIS  REGULATION: 

1  OJ.NoL  104,22.4.1997,  p. 1. 

-  3 -

Sole Article 

1. 

2. 

ô. 

The  provisions  of  Regulation  (EC)  No  701/97  of  14 April  1997  adopting  a 
programme  to  promote  international  cooperation  in  the  energy  sector-  Synergy 
programme-  until  31 December  1997  shall  be  extended  for  one  year  from 
1 January  1998 to  3 l*December 1998. 

The  budgetary  authority  shall  determine  the  appropriation  for  1998  in  accordance 
with the financial perspectives and budget  discipline. 

This Regulation  shall enter into force  on the 20th day following  its publication  in the 
Official  Journal of the European  Communities. 

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

Done at Brussels, 

For the Coimcil 

The President 

4-

IMPACT ASSESSMENT FORM 
THE IMPACT OF THE PROPOSAL ON BUSINESS 

with  special  reference  to  small  and  medium-sized 
enterprises  (SMEs) 

international  cooperation 

in 

the  energy  sector-  Synergy 

Title of proposal: 

Regulation  concerning 
programme 

Reference  No: 

The  proposal: 

1. 

TAKING  ACCOUNT  OF  THE  PRINCIPLE  OF  SUBSIDIARITY,  WHY  IS  COMMUNITY 
LEGISLATION NECESSARY IN THIS AREA AND WHAT ARE ITS MAIN  AIMS? 

The  objective  is to  promote  the  Community's  energy  interests  in  fields  such  as  the 
overall competitiveness  of industry,  security of supply  and  environmental  protection 
at  European  level,  bearing  in mind  that  each  Member  State  defines  its  own  energy 
policy objectives, which sometimes differ from those of other Member States. 

2.  W HO WILL BE AFFECTED BY THE PROPOSAL? 

Aid only for  undertakings in the  energy sector for penetration  of markets in non-EU 
countries. 

-  are there particular  geographical  areas of the  Community where  these  businesses 

are found? 

No,  but  the  priority  measures  concern  the  Mediterranean  and  central  and  eastern 
European  countries  and  should  be  of  particular  benefit  to  undertakings  in  these 
frontier regions. 

3.  W H AT WILL BUSINESS HAVE TO DO TO COMPLY WITH THE PROPOSAL? 

4.  WHAT ECONOMIC EFFECTS IS THE PROPOSAL LIKELY TO HAVE? 

-  on employment 

The objective of providing aid for penetration of markets in non-EU countries should 
create jobs in undertakings  supplying goods or  services in this sector.  The energy 
market should grow by 2% worldwide, compared with just  1% in Europe. 

-  on investment and the creation of new businesses 

European investments and business start-ups in non-EU countries. 

-  on the competitive position of businesses 

An indirect effect  on energy supply costs is expected. 

5.  DOES THE  PROPOSAL  CONTAIN  MEASURES TO  TAKE  ACCOUNT  OF THE  SPECIFIC 
SITUATION  OF  SMALL  AND  MEDIUM-SIZED  FIRMS  (REDUCED  OR  DIFFERENT 
REQUIREMENTS,  ETC.)? 

CONSULTATION 

6. 

LIST THE ORGANISATIONS WHICH HAVE BEEN CONSULTED ABOUT THE  PROPOSAL 
AND OUTLINE THEIR MAIN VIEWS. 

EnR network, trade associations in this sector:  Eurelectric, Eurogas, Europia, etc. 

FINANCIAL STATEMENT 

ITEMB4-1041 

1.  TITLE OF OPERATION 

Promotion of international cooperation in the energy sector - Synergy programme. 

2. 

BUDGET  HEADING  INVOLVED 

B4-1041 

3. 

LEGAL  BASIS 

Council  Regulation  (EC)  No  701/97  of  14 April  1997  adopting  a  programme  to 
promote international cooperation in the energy sector -  Synergy programme (OJ No 
L  104, 22.4.1997, p.  1). 

4. 

DESCRIPTION  OF  OPERATION 

4.1 

General  objective 

The need  for  an international  cooperation  programme  at  European  level  has 
been heightened by developments on the world energy scene in recent years: 

-  Europe's growing dependence on outside energy sources; 

-  extremely sharp increase in demand for energy in developing countries; 

-  growing  impact  of  environmental  problems,  particularly  greenhouse  gas 

emissions, on energy choices. 

The  objective  is  to  promote  cooperation  in  the  field  of  formulation  and 
implementation  of  energy  policy  in  non-EU  countries  to  help  achieve  the 
objectives  of the European Union's energy strategy, namely: 

-  overall competitiveness; 

-  security of energy supply for Europe; 

-  environmental protection. 

-T-

This  operation  should  held  to  attain  these  objectives  by  launching  schemes 
aiming, in particular, at: 

- 

improving energy efficiency in non-EU countries; 

-  promoting use of clean technologies; 

-  encouraging use of local and, in particular, renewable energy sources; 

-  providing  support  for  regional  integration  and  opening-up  of  the  energy 

sector in non-EU countries; 

- 

fostering  dialogue  and contacts  between  Europe,  producer  countries and 
international organisations in the energy  field; 

-  supporting  penetration  by  European  energy  undertakings  in  non-EU 

countries. 

The  operation  also  provides  support  for  the  European  Union's  external 
relations policy and helps to  establish frameworks for  steering  and preparing 
energy projects and to pave the way for the accession of Central and Eastern 
European countries. 

Formulation  of  the  annual  programme, 
in  collaboration  with  other 
Commission  departments  and  representatives  of  the  Member  States,  will 
provide  an  opportunity  to  target  Synergy  on  the  priority  issues,  taking 
account  of  the  annex  to  the  Regulation,  as  proposed  by  the  European 
Parliament. 

4.2 

Period  covered 

One year, from 1  January 1998 to  31 December  1998, as an extension  of the 
current programme, which ends on 31 December 1997. 

5. 

CLASSIFICATION  OF EXPENDITURE 

Non-compulsory expenditure/differentiated  appropriations. 

6.  TYPE OF EXPENDITURE OR REVENUE 

Financing  of  studies,  technical  assistance  and  advice  through  the  possible 
mtermediary  of  experts,  training  and  promotion  activities,  dissemination  of 
information,  organisation  of  conferences,  seminars,  workshops,  technical  and 
educational visits,  support  for  energy  cooperation  or energy policy  institutions and 
other activities in support of energy policy. 

Expenditure  on  promotion  of  the  programme,  dissemination  of  the  results  and 
evaluation of the programme by outside  experts and operating  expenditure  of bodies 
supporting cooperation in the energy  field. 

Normally the  Community will contribute not  more than  50% of the total  cost  of the 
project  and  will fund  projects jointly with non-EU  countries,  the  Member  States  or 
international  organisations. 

In  certain  cases,  however,  the  Community  can  contribute  up  to  100%:  to  finance 
experts  seconded  full  time to the  authorities in non-EU  countries  or  action  solely in 
the  interest  of  the  Community  (preliminary  studies,  reconnaissance  missions, 
European energy centres, project  evaluation, etc.). 

7. 

FINANCIAL  IMPACT 

7.1  Method  of calculating  total  cost of  operation 

The total cost of the operation depends on the specific measures. 

The budget  submitted is in line with the forecasts in the financial perspectives. 

•  "Horizontal  measures"  cover  evaluations  and  information  campaigns  on 

the programme itself. 

•  "Energy  analyses" cover  sector-by-sector  energy  analyses  and  the  energy 
planning  studies  referred  to  in  the  previous  statement  plus,  increasingly, 
studies  on  the  existing  legislation  in non-EU  countries  and  adaptation  to 
the new energy context. 

•  "Cooperation  in  formulating  energy  policy  in  non-EU  countries"  covers 
secondment  of  European  experts  to  the  energy  authorities  in  non-EU 
countries for  specific  short-term team-building missions. 

• 

'Tinancial  support  for  cooperation  bodies"  covers  projects  under  the 
auspices  of the  energy  centres plus, increasingly, support  for  meetings  of 
working parties or fora. 

•  "Seminars, conferences  and workshops" are growing  as non-EU  countries 
in  Europe's  experience  with  regulation  and 

interest 

show  greater 
integration. 

7.2 

Itemised  breakdown  of cost 

EC in mECU 

Breakdown 

Horizontal measures 
Energy analyses 
Cooperation in formulating  energy policy in non-EU 
countries 
Financial support for cooperation bodies 
Seminars, conferences  and workshops 
Information  and training 
TOTAL 

1 

Amount 
0.500 
1.500 

1.000 
2.000 
1.000 
1.000 
7.000 

~ 

7.3 

Operating  expenditure  on  studies  and  meetings  of  experts  included  in 
Part  B 

Breakdown 

Amount 

Studies 
Meetings of experts 
Conferences  and congresses 
Information  and publications 
TOTAL 

0.150 
0.150 

1 

8. 

FRAUD PREVENTION  MEASURES;  RESULTS  OF MEASURES  TAKEN 

The work is paid after  its acceptance on the basis of a percentage  set before  award  of 
the  contract,  and  in  the  Ught  of  a  final  financial  report  on  the  operation. 
Documentary proof of travel and subsistence expenses may be required. 

9. 

ELEMENTS  OF COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific  objectives 

A distinction can be drawn between: 

- 

the  specific  objectives  to  which  Synergy  contributes  without  bearing  sole 
responsibility for the results; 

- 

the direct objectives of the Synergy schemes. 

(o 

9.1.1  Objectives  of the programme 

• 

• 

• 

• 

• 

to reduce the predicted increase in greenhouse gas emissions worldwide by 
means  of  measures  to  encourage  energy  efficiency,  new  technologies, 
renewable sources and energy planning; 

to  increase  energy  investment  and  exports  by  European  undertakings  in 
non-EU  countries; 

to  facilitate  interconnection  of the  energy  networks  in  non-EU  countries 
and between non-EU countries and Europe; 

to  prepare  for  accession  of  the  associated  countries  by  helping  to  bring 
their energy policies closer to EU energy pohcy; 

to  maintain  or  increase  the  capacity  for  exporting  energy  from  non-EU 
countries to Europe, despite the growing demand in non-EU  countries. 

9.1.2  Specific  objectives of the schemes 

In  the  case  of  seminars,  conferences,  workshops  and  financial  support  for 
cooperation bodies: 

• 

to  strengthen ties between  decision-makers in the public  or private  sectors 
in Europe and in non-EU countries; 

• 

to foster  contacts between the authorities responsible in non-EU countries; 

• 

to  help  to  implement  other  cooperation  schemes between  the  Community 
and non-EU countries; 

• 

to  disseminate information  on the energy situation in Europe. 

In the  case  of  cooperation  in formulating  energy pohcy  in non-EU  countries 
and energy analyses: 

• 

to  make  a  European  contribution  to  formulation  of  energy  plans  and 
regulations in non-EU countries. 

In the case of training and  information: 

• 

to  train  members  of  the  profession  hi non-EU  countries  and  make  them 
aware of European points of view. 

Target population 

States, public energy services, businesses, individuals from non-EU countries 
and the European Communities. 

9.2  Grounds for the operation 

Action at Commission level is justified for the following reasons: 

. 

•  only  the  Commission  can  support  European  interests  and  undertakings 

without favouring any particular Member State; 

•  the  Commission  as  such is designated  as the intermediary  with non-EU 
countries in contexts such as the G-24 or agreements concluded with some 
non-EU countries which explicitly include energy in their scope; 

•  action at Commission level will make it possible to complete the measures 

taken at the level of Member States and to strengthen their impact; 

•  the  European  Commission  can  represent  better  the  interests  of  the 

Member States as a whole; 

•  action at European Commission level will make it possible to use expertise 

scattered between several Member States. 

9.3  Monitoring and evaluation of the operation 

First, the officials  responsible for  each geographical region  already manage, 
monitor and evaluate, at their level, each project of which they are in charge. 

Performance indicators selected 

As Synergy is a programme of cooperation in formulating  energy policies, it 
is difficult to determine quantitative indicators of its impact. 

Furthermore,  action  relating  to  energy  pohcy  influences  productipn  or 
consumption figures only in the medium or long term. 

Nevertheless, it is possible to apply indicators corresponding to the two types 
of objective mentioned in Section 9.1. 

\i 

In the case of the general objectives: 

•  comparison  of greenhouse gas emission levels with  forecasts; 

•  country-by-country trends in the energy efficiency  index; 

• 

increase  in  local  production,  particularly  the  share  taken  by  renewable 
sources; 

•  amount of European energy investment  and exports; 

•  growth  in  energy  exports  from  non-EU  countries,  in  relation  to  their 

domestic demand trends; 

• 

investments  in  interconnections  between  non-EU  countries  and  between 
European and non-EU countries. 

,., 

In the case of the specific  objectives of the schemes: 

•  number  of participants  at  conferences  or  meetings  organised  by  Synergy 
plus, possibly, number of business contacts made and of measures taken to 
follow up  such meetings; 

•  number  of  countries  drawing  on  European  experience  to  formulate  their 

energy pohcy; 

•  number of members of the profession  trained; 

•  number of people informed  about the projects; 

•  cooperation  schemes to follow up a Synergy project. 

Details  and frequency  of planned  evaluations 

the  pilot  phase, 

During 
the  Synergy  programme  was  evaluated  by 
independent  experts in June  1990.  The results  of an  evaluation  of the  action 
taken between  1990 and  1995 was released in June 1996. 

The  Regulation  adopted  by  the  Council  provides  for  an  evaluation  in  1997 
and a report to Parliament and the Council. 

Synergy is also included in the general review of programmes administered by 
DG XVII. 

II 

9.4 

Elements for evaluation of  cost-effectiveness 

To compare the figures with other programmes, allowance must be made for 
the fact that the projects are managed and monitored directly by officials from 
the Unit  and that these tasks are not firmed  out.  Moreover,  Synergy takes 
the 
the 
Euro-Mediterranean  forum) which provide results that can be used by other 
programmes.  The  projects  call  for  greater  involvement  by  officials  for 
identification and negotiation of the projects. 

initiatives  and  action 

form  of  Community 

(such  as 

The  budget  cut from ECU  10  million  to  ECU 7 million  in  the  light  of the 
financial  perspectives  has  also  led,  out  of  concern  to  ensure  greater  cost-
effectiveness,  to  continued  priority  for  Community  initiatives  and  activities 
contributing  to  the  emergence  of  other  cooperation  schemes,  thereby 
increasing the proportion of the programme's budget taken by administrative 
costs. 

10.  ADMINISTRATIVE EXPENDITURE 

The allocation of required administrative resources for this action will depend on the 
Commission's annual decision on the allocation of resources, taking into account the 
number of staff and additional credits authorised by the budget authority. 

10.1 

Impact on the number of staff 

Post 

« 

Staff  to  be  assigned  to 
management of  the 
operation 

of  whom 

of  whom 

permanent 
staff 

temporary 
staff 

existing  resources 
within  the DG  or 
department  concerned 

additional 
resources 

Officials  or 
temporary 
staff 

A 
B 
C 

Other  resources 

2 

6 
2 
5 

8 
2 
5 

2  seconded 
national 
experts 

2  suppliers 
of  services 

2 seconded  national 
experts 

2 suppliers  of  services 

Total 

13 

6 

19 

Proportion  of time  spent  on the programme:  60%.  Number  of posts to be allocated  to the programme:  12 

In the case of additional resources, indicate the rate at which they will have to 
be provided. 

h 

10.2  Total financial impact of the human resources 

The 19 staff mentioned will not work exclusively on the Synergy programme 
but also on all international energy measures. 

The team as a whole will spend an estimated 60% of its time on the Synergy 
programme alone. 

The total cost of administration of the programme can therefore be estimated 
at 19 x 0.6 x ECU 103 000 = ECU 1 174 200. 

10.3  Other operating expenditure 

Budget heading 

Amount 

Method of calculation 

i 
A-2510 Meetings in general 

, 

40 000 

A-130 Mission expenses, travel 
expenses and incidental 
expenditure 

100 000 

Total  140 000 

Two one-day meetings with two 
delegates per Member State, 
based on an average of ECU 658 
per delegate (travel expenses 
only) 

Estimate based on expenditure in 
the first half of the year 

The appropriations indicated  are funded from the existing  amount  allocated 
to the departments rumring the programme. 

The amounts correspond to the total expenditure on the operation in the case 
of operations of limited  duration and to  expenditure over  12 months in the 
case of operations of indefinite duration. 

& 

ISSN 0254-1475 

COM(97) 488 final 

DOCUMENTS 

EN 

12  15  11 

Catalogue number  :  CB-CO-97-498-EN-C 

ISBN  92-78-25088-0 

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