WRITTEN QUESTION E-0959/01 by Erik Meijer (GUE/NGL) to the Commission. Increase in electricity generated from coal and nuclear energy and shutdown of environmentally compatible power stations following liberalisation of the energy market.
Date: 2001-03-30
Institutions: European Parliament, Provisional data
Subjects: Netherlands, electrical energy, energy policy, energy production, energy supply, liberalisation of the market

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Answer given by Mr Vitorino on behalf of the Commission

(2 May 2001)

The Commission would refer the Honourable Member to its answer to Written Question E-0830/01 by
Mrs Peijs (1).

(1) See p. 129.

(2001/C 318 E/175)

WRITTEN QUESTION E-0959/01

by Erik Meijer (GUE/NGL) to the Commission

(30 March 2001)

Subject: Increase in electricity generated from coal and nuclear energy and shutdown of environmentally

compatible power stations following liberalisation of the energy market

Is the Commission aware that since early this year, as a result of liberalisation, the Netherlands has
1.
been importing 30 % of its electricity requirements from Germany, France and Belgium and that a number
of power stations have been shut down as a result?

Can the Commission confirm that these imports are principally the result of the growing price
2.
differences between coal, brown coal and nuclear energy from electricity-exporting countries and, on the
other hand, natural gas and combined heat and power in which the Netherlands has invested heavily in
recent years in order to cut emissions of CO2 and other environmental effects?

3. What is the Commission(cid:146)s view of the fact that as a result of this development residual heat from
production processes and plants with a high energy efficiency is unutilised and that although emissions of
CO2 are falling in the Netherlands they are increasing considerably in other Member States, and hence the
European Union as a whole is less able to meet the Kyoto obligation to reduced emissions?

Can the Commission confirm that Dutch imports will continue to rise substantially in the next few

4.
years if the cross-border high voltage grid acquires a greater capacity?

Does the Commission agree that regions which are over-dependent on electricity generated elsewhere
5.
run the risk (cid:129) by analogy with the American state of California (cid:129) of not having enough electricity in a few
years(cid:146) time or of being only able to buy in at elevated prices in times of shortage, and that this effect will
be aggravated if
in order to satisfy environmental
requirements, to curtail their exports?

the regions which currently export are obliged,

6. What action is the Commission planning to take to guarantee continued availability and production
of electricity, to restrict the need for further growth in the high-voltage network (cid:129) which is a blot on the
landscape (cid:129) to counteract harmful effects on the environment and to enable consumers to refuse the use
of nuclear energy, which they do not want?

Answer given by Mrs de Palacio on behalf of the Commission

(31 May 2001)

1.
The Commission is aware of the fact that the Netherlands imports part of its electricity demand. In
fact, the Netherlands has always relied for around 15 % of its energy consumption on imports from other
Member States. It is true that the part of imported electricity has increased since liberalisation began, and is
now estimated at around 20 % of Dutch consumption. The physical capacity of the interconnectors with
Belgium and Germany would, however, not allow an import of 30 % of Dutch consumption. The
Honourable Member of Parliament is right that some of the installed capacity in the Netherlands is not
being used at the moment, because of the fact that the price of imported electricity is cheaper.

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The creation of an internal market results in consumers seeking to take advantage of price differences
2.
between different companies. It is true that currently electricity generated by coal or nuclear plants is
cheaper than electricity generated by gas fired or cogeneration plants. The evolution of electricity prices is,
however, hard to predict and depends, among others, on the development of the oil price, but also on
accompanying policies such as taxation and increasing internalisation of external costs. The Commission
supports the development of increasing internalisation of external costs of different forms of electricity
generation.

3. Market liberalisation leads to the most efficient and economic use of fuels. Existing experience shows
a significant reduction in greenhouse emissions in Member States that have fully opened their market due
to the rapid replacement of old inefficient power plants. Both in the gas and electricity market the
provision of advice to customers on energy efficiency and energy saving is now more extensive than prior
to liberalisation.

The Commission believes, however, that any consequences of liberalisation that might be detrimental to
the environment have to be countered. As highlighted in the Green Paper on Security of Supply (1), the
Commission must continue to take demand side measures to counter the increase in energy consumption.

For these reasons, the Commission in 2000, tabled a Proposal for a Directive (2) on electricity from
renewables, which is near adoption. The Commission adopted on 25 April 2001 a proposal for a Directive
lead to a 20 % reduction in Community(cid:146)s
on energy saving in buildings (3)
greenhouse gas emissions, through the obligation to use existing and commercially viable technologies). In
addition it will put forward a proposal for Directive on energy efficiency in electric and electronic
equipment.

(once implemented will

In 2002 the Commission will propose a Directive on Combined Heat and Power (co-generation) with
a view to the promotion of its use on a European scale.

4.
The Honourable Member is right in pointing out that the interconnection capacity of the Netherlands
is scheduled to increase with an additional 1 000 Megawatt in the near future. This increases the import
possibilities of the Netherlands, but at the same time it increases its export possibilities.

5.
Current overcapacity in most of the European network makes the occurrence of Californian type
problems in the Community unlikely. A host of other factors has contributed to the current electricity
crisis in California, among these are excessively long planning procedures of around seven years and the
fact that virtually no new capacity had been built for ten years, while demand in the same period increased
rapidly. These factors are not present in the Community. In addition, an increased capacity for energy
trading between Member States will ensure that it is possible to respond to unexpected increases in
demand within a single Member State.

However, the Commission does find it important to monitor the development of the supply and demand
balance. For this reason in its proposed Directive, it introduces an obligation on the Member States to
monitor the demand/supply balance on a yearly basis and to report on this to the Commission. Should
a potential disruption between supply and demand be foreseen, the Member States are obliged to take the
appropriate measures that will prevent such a situation from developing.

The proposed Directive also contains an obligation on Member States to take measures if
6.
development or maintenance of the gas/electricity networks should not be sufficient to maintain security
of supply. In addition to these measures, the Commission will propose in the near future a European
infrastructure plan with which existing bottlenecks in the electricity and gas networks in the internal
market can be resolved, through use of Trans European Network funds and through support at the highest
political level for these infrastructure projects.

Finally on consumer choice, the Commission proposes in the draft Directive to oblige suppliers to specify
on their bills to final consumers the sources of energy used to produce the electricity they sell. In
a liberalised market, this may encourage electricity companies to compete for customers on the basis of

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their environmental benefits. If enough customers are prepared to take this opportunity to use their
purchasing power then they will be able to make a real difference to the balance of sources of energy
supply in the Community.

(1) COM(2000) 769 final.
(2) OJ C 311 E, 31.10.2000.
(3) COM(2001) 226.

(2001/C 318 E/176)

WRITTEN QUESTION P-0964/01

by Michl Ebner (PPE-DE) to the Commission

(20 March 2001)

Subject: Taxation of used cars purchased within the EU

Article 36(10) of Decree Law No 41 of 23 February 1995 provides that in the context of intra-Community
trade, motor vehicles are considered to be used goods if deemed such by Article 38(4) of Decree Law
No 331 of 30 August 1993 (i.e. if they were registered more than six months previously and have been
driven more than 6 000 kilometres). Can the Commission therefore state whether such used cars are
subject to VAT on the profit margin, regardless of whether they were originally taxed in their EU country
of origin under the VAT margin scheme or the ordinary VAT scheme?

Answer given by Mr Bolkestein on behalf of the Commission

(10 May 2001)

The VAT arrangements applicable to used cars can be either the normal VAT arrangements or the special
arrangements applicable to second-hand goods, works of art, collectors(cid:146) items and antiques (the (cid:145)margin
scheme(cid:146)), as provided for in Article 26b of the 6th VAT Council Directive 77/388/EEC of 17 May 1977 on
the harmonisation of the laws of the Member States relating to turnover taxes (cid:129) Common system of value
added tax: uniform basis of assessment (1).

The margin scheme can be used by a taxable dealer in the following special circumstances:

(cid:129) Where the vehicle was supplied to him by a non-taxable person, or

(cid:129) Where the vehicle was supplied to him by a taxable person whose supplies are exempt from VAT

because he engages in an exempt activity, or

(cid:129) Where the vehicle was supplied to him by a taxable person whose supplies are exempt from VAT in

accordance with the special scheme for small undertakings, or

(cid:129) Where the vehicle was supplied by another taxable person applying the margin scheme in respect of

that vehicle.

If the margin scheme is applied, the amount on which VAT is charged is the profit margin made on the
deal, less the amount of VAT relating to the profit margin.

In each of the circumstances outlined above, the taxable dealer would, in the absence of the margin
scheme, not be able to deduct any VAT on the vehicle being sold by him, and he would be obliged to
charge VAT on the full consideration he would be entitled to receive from the customer less the amount of
VAT relating to the consideration.

However, even where the vehicle to be sold by a taxable dealer qualifies for the margin scheme to be
applied to it, he may always opt to apply the normal VAT rules.

If the conditions for applying the margin scheme are not met, it is the normal VAT arrangements which
apply to supplies of used cars.

The taxable dealer who supplies a used car must therefore decide on a case-by-case basis whether it is the
normal VAT rules that apply or whether the margin scheme could apply.