Opinion of the Commission pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a Directive of the European Parliament and of the Council concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC amending the proposal of the Commission pursuant to Article 250 (2) of the EC Treaty
Date: 2003-07-23
Institutions: European Commission
Subjects: energy grid, enlargement of the Union, gas industry, liberalisation of the market, market enlargement, natural gas, single market

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 23.7.2003
COM(2003) 428 final

2001/0077A (COD)

OPINION OF THE COMMISSION

pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty,
on the European Parliament's amendments
to the Council's common position regarding the
proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

concerning common rules for the internal market in natural gas and repealing Directive
98/30/EC

AMENDING THE PROPOSAL OF THE COMMISSION
pursuant to Article 250 (2) of the EC Treaty

2001/0077A (COD)

OPINION OF THE COMMISSION

pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty,
on the European Parliament's amendments
to the Council's common position regarding the
proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

concerning common rules for the internal market in natural gas and repealing Directive
98/30/EC

1.

INTRODUCTION

Article 251(2), third subparagraph, point (c) of the EC Treaty provides that the Commission is
to  deliver  an  opinion  on  the  amendments  proposed  by  the  European  Parliament  at  second
reading. The Commission sets out its opinion on the 20 amendments adopted by Parliament.

2.

BACKGROUND

The  Commission  adopted  its  proposal  of  the  proposal  for  a  Directive  amending  Directives
96/92/EC and 98/30/EC concerning common rules for the internal markets in electricity and
natural gas on 13 March 2001.

The  European  Parliament  adopted  its  first  reading  on  13  March  2002  and  the  Commission
adopted its modified proposal on 7 June 2002. The proposal has subsequently been split into
two separate proposals,  one  concerning a Directive  on  the  internal  market  in  electricity  and
one concerning the internal market in natural gas.

The  Council  adopted  its  common  position  on  3  February  2003  unanimously,  which  the
Commission supported.

The 20 amendments voted by the European Parliament in second reading on the Gas Directive
on  4  June  2003  are  part  of  a  compromise  package  of  amendments  on  the  three  texts  of  the
internal market package. The package was  accepted in its totality in the plenary vote by the
EP  on  4  June  2003.  Since  the  amendments  are  acceptable  to  the  Council,  the  conciliation
procedure  will  not  be  invoked.  The  Council  has  approved  the  amendements  voted  by
Parliament on the 16th of June 2003.

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3.

PURPOSE OF THE PROPOSAL

The aim of the Commission proposal is to arrive at a level playing field for all market actors
on the electricity and gas markets in the European Union. The Gas Directive (98/30/EC) has
produced  benefits  for  large  consumers  in  terms  of  choice  and  better  service  standards.
However,  the  Directive  leaves  a  number  of  choices  to  Member  States  in  terms  of  market
opening,  organisation  of  access  to  the  network  and  regulation  of  the  market.  Practice
demonstrates  that  this  situation  leads  to  distortion  of  competition,  as  some  Member  States’
markets are more open to effective competition than others.

For this reason the Commission has proposed this amending Directive. It seeks to achieve full
progressive opening of the gas market and high  standards  of public service. It  abolishes  the
choice of negotiated access to the gas networks and obliges Member States to legally separate
the  transmission  and  distribution  network  operators  from  other  parts  of  the  business.  In
addition,  all  Member  States  have  to  establish  a  regulatory  authority  with  a  set  of  minimum
competencies.

In the framework of the accession process, the candidate countries have taken commitments
in  the  Accession  negotiations  regarding  the  existing  Electricity  and  Gas  Directives.  The
Commission  expects  new  Member  States  to  fulfill  the  obligations  created  by  these  new
Directives, but acknowledges that in duly justified and exceptional cases, it may be necessary
to allow for a  progressive  phasing-in into the  further developed electricity  and  gas  markets.
The Commission parts from the principle that any permanent derogation will, however, not be
accepted.

4.

OPINION  OF  THE  COMMISSION  ON  THE  AMENDMENTS  BY  THE  EUROPEAN
PARLIAMENT

The Parliament adopted 20 amendments to the proposal for a Directive concerning common
rules  for  the  internal  market  in  gas  and  repealing  Directive  98/30/EC  on  4  June  2003.  The
Commission can accept all of them in full. All these amendments clarify or strengthen the text
and the Commission can fully support them.

5.

CONCLUSION

The Commission accepts the amendments voted by Parliament on 4 June 2003 and approved
by Council on 16 June 2003.

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