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 electricity and repealing Directive 96/92/EC amending the proposal of the Commission pursuant to Article 250 (2) of the EC Treaty
Date: 2003-07-23
Institutions: European Commission
Subjects: common commercial policy, electrical industry, energy grid, enlargement of the Union, gas industry, liberalisation of the market, market access, market enlargement, single market

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 23.7.2003
COM(2003) 429 final

2001/0077 (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 electricity and repealing Directive
96/92/EC

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

2001/0077 (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 electricity and repealing Directive
96/92/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 25 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 25 amendments voted concerning the Electricity Directive by the European Parliament in
second reading 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  Electricity  Directive
(96/92/EC)  and  the  Gas  Directive  (98/30/EC)  have  been  producing  benefits  for  large
consumers  in  terms  of  lower  prices  and  better  service  standards.  However,  these  Directives
leave  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 electricity and gas markets, high standards of public service and a
universal service obligation in electricity.  It abolishes  the  choice  of negotiated  access  to the
gas and electricity  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 25 amendments to the proposal for a Directive concerning common
rules for the internal market in electricity and repealing Directive 96/92/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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