2007/394/EC: Commission Decision of 7 June 2007 amending Council Directive 90/377/EEC with regard to the methodology to be applied for the collection of gas and electricity prices charged to industrial end-users   (Text with EEA relevance)
Date: 2007-06-07
Institutions: European Commission
Subjects: access to information, electrical energy, gas, intermediate consumption, price of energy, prices policy, publishing of prices

9.6.2007

EN

Official Journal of the European Union

L 148/11

COMMISSION DECISION

of 7 June 2007

amending Council Directive 90/377/EEC with regard to the methodology to be applied for the
collection of gas and electricity prices charged to industrial end-users

(Text with EEA relevance)

(2007/394/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Directive 90/377/EEC concerning a
Community procedure to improve the transparency of gas and
electricity prices charged to industrial end-users (1), and in
particular Article 6 thereof,

(3)

(4)

Directive 90/377/EEC should therefore be amended
accordingly.

in this Decision are in
The measures provided for
accordance with the opinion of the Committee referred
to in Article 7 of Directive 90/377/EEC,

DECIDES:

Whereas:

Article 1

(1)

(2)

Directive 90/377/EEC sets out details concerning the
form, content and all other features of the information
to be provided by undertakings which supply gas or
electricity to industrial end-users.

The Annexes to Directive 90/377/EEC are replaced by the text
in the Annex to this Decision.

Article 2

the internal market

the European Parliament and of

The methodology used to collect price information needs
to be kept up to date to reflect the reality of competitive
markets for electricity and gas developed under Directive
2003/54/EC of
the
Council of 26 June 2003 concerning common rules
for
in electricity and repealing
Directive 96/92/EC (2) and Directive 2003/55/EC of the
European Parliament and of the Council of 26 June 2003
concerning common rules for the internal market
in
repealing Directive 98/30/EC (3),
natural
including the fact that several suppliers are now active
in each market.

and

gas

This Decision shall enter into force on the 20th day following
the European
that of
Union.

its publication in the Official

Journal of

Done at Brussels, 7 June 2007.

For the Commission

Andris PIEBALGS
Member of the Commission

(1) OJ L 185, 17.7.1990, p. 16 to 24. Directive as last amended by

Directive 2006/108/EC (OJ L 363, 20.12.2006, p. 414).

(2) OJ L 176, 15.7.2003, p. 37. Directive as last amended by Council

Decision 2006/653/EC (OJ L 270, 29.9.2006, p. 72).

(3) OJ L 176, 15.7.2003, p. 57.

L 148/12

EN

Official Journal of the European Union

9.6.2007

ANNEX

‘ANNEX I

GAS PRICES

Gas prices for industrial end-users (1) to be collected and compiled according to the following methodology:

(a)

Prices to be reported are prices paid by industrial end-users buying natural gas distributed through mains for their
own use.

(b) All industrial uses of gas are considered. However, the system excludes consumers who use gas:

— for electricity generation in power plants or in CHP plants,

— in non-energy uses (e.g. in the chemical industry),

— above 4 000 000 gigajoule (GJ) per year.

(c)

(d)

(e)

(f)

Prices recorded to be based on a system of standard consumption bands defined by a range of annual gas
consumption.

Prices will be collected twice per year, at the beginning of each six-month period, (January and July) and will refer to
the average prices paid by industrial end-users for gas over the previous six months. The first communication of
price data to the Statistical Office of the European Communities will refer to the situation on 1 January 2008.

Prices must be expressed in national currency per gigajoule. The unit of energy used is measured on the basis of the
gross calorific value (GCV).

Prices must include all charges payable: network charges plus energy consumed minus any rebates or premiums, plus
other charges (meter rental, standing charges, etc.). Initial connection charges are not to be included.

(g)

Prices are to be recorded as national average prices.

(h) The Member States develop and implement cost-effective procedures to ensure a representative data compilation

system based on the following rules:

— Prices will represent weighted average prices, using the market shares of the gas supply undertakings surveyed as
weighting factors. Arithmetic average prices will be provided only when weighted figures cannot be calculated. In
either case, Member States will ensure that a representative share of the national market is covered by the survey.

— Market shares should be based on the quantity of gas invoiced by the gas supply undertakings to industrial end-
users. If possible, the market shares will be calculated separately for each band. The information used for
calculating weighted average prices will be managed by Member States, respecting confidentiality rules.

— In the interest of confidentiality, data relating to prices will be communicated only where there are,
Member State concerned, at least three end-users in each of the categories referred to under point (j).

in the

(i)

Three levels of prices are to be provided:

— Prices excluding taxes and levies.

— Prices excluding VAT and other recoverable taxes.

— Prices including all taxes, levies and VAT.

(j) Gas prices will be surveyed for the following categories of industrial end-user:

Industrial End-User

Annual gas consumption (GJ)

Band-I1

Band-I2

Band-I3

Band-I4

Band-I5

Lowest

1 000

10 000

100 000

1 000 000

Highest

< 1 000

< 10 000

< 100 000

< 1 000 000

<= 4 000 000

(1) Industrial end-user may include other non-residential users

9.6.2007

EN

Official Journal of the European Union

L 148/13

(k) Once every two years, together with the January price reporting, information about the compilation system applied
will be communicated to the Statistical Office of the European Communities and particularly: a description of the
survey and its scope (number of supply undertakings surveyed, aggregated percentage of the market represented, etc.)
and the criteria used to calculate weighted average prices as well as the aggregated consumption volumes represented
by each band. The first communication related to the compilation system shall concern the situation on 1 January
2008.

(l) Once per year, together with the January price reporting, information about the main average characteristics and
factors affecting the prices reported for each consumption band will be communicated to the Statistical Office of the
European Communities.

The information will include:

— Average load factors for industrial end-users corresponding to each consumption band calculated on the basis of

the total energy supplied and average maximum demand.

— A description on discounts given for interruptible supplies.

— A description of standing charges, meter rentals or any other charges relevant at national level.

(m) Once per year, together with the January reporting, the rates and method of calculation as well as a description of
the taxes levied on gas sales to industrial end-users should also be reported. The description must include any non-
tax levy covering system costs and public service obligations.

The description of taxes to be provided will include three clearly separated sections:

— Taxes, levies, non-tax levies, fees and any other fiscal charges not identified in the invoices provided to industrial
end-users. The items described under this point will be included under the reported figures for the price level:
“Prices excluding taxes and levies”.

— Taxes and levies identified in the invoices provided to industrial end-users and considered as non-recoverable.
The items described under this point will therefore be included under the reported figures for the price level:
“Prices excluding VAT and other recoverable taxes”.

— Value Added Tax (VAT) and other recoverable taxes identified in the invoices provided to industrial end-users.
The items described under this point will be included under the reported figures for the price level: “Prices
including all taxes, levies and VAT”.

An outline of the different taxes, levies, non-tax levies, fees and fiscal charges applicable are:

— Value Added Tax.

— Concession fees. This usually refers to licences and fees for the occupation of land and public or private property

by networks or other gas devices.

— Environmental taxes or levies. This usually refers either to the promotion of renewable energy sources or CHP or

as a burden for CO2, SO2 or another agent emissions related to climate change.

— Other taxes or levies linked with the energy sector: public service obligations/charges, levies to financing energy

regulatory authorities, etc.

— Other taxes or levies not linked with the energy sector: national,

local or regional fiscal taxes on energy

consumed, taxes on gas distribution, etc.

Taxes on income, property related taxes, oil for motor cars, road taxes, taxes on licences for telecom, radio,
advertising, fees for licences, taxes on waste, etc. will not be taken into consideration and are excluded from this
description, because they are undoubtedly part of the operators costs and apply also to other industries or activities.

(n)

In Member States where one company covers all the industrial sales, the information may be communicated by that
company. In Member States where more than one company operates, the information should be communicated by
an independent statistical body.

L 148/14

EN

Official Journal of the European Union

9.6.2007

ANNEX II

ELECTRICITY PRICES

Electricity prices for industrial end-users (1) to be collected and compiled according to the following methodology:

(a)

Prices to be reported are prices paid by industrial end-users buying electricity for their own use.

(b) All industrial uses of electricity are considered.

(c)

(d)

Prices recorded to be based on a system of standard consumption bands defined by a range of annual electricity
consumption.

Prices will be collected twice per year, at the beginning of each six-month period, (January and July) and will refer to
the average prices paid by the industrial end-user for electricity over the previous six months. The first com-
munication of price data to the Statistical Office of the European Communities will refer to the situation on 1
January 2008.

(e)

Prices must be expressed in national currency per kWh.

(f)

Prices must include all charges payable: network charges plus energy consumed minus any rebates or premiums, plus
other charges (capacity charges, commercialisation, meter rental, etc.). Initial connection charges are not to be
included.

(g)

Prices are to be recorded as national average prices.

(h) The Member States develop and implement cost-effective procedures to ensure a representative data compilation

system based on the following rules:

— Prices will represent weighted average prices, using the market share of the electricity supply undertakings
surveyed as weighting factors. Arithmetic average prices will be provided only when weighted figures cannot
be calculated. In either case, Member States will ensure that a representative share of the national market is
covered in the survey.

— Market shares should be based on the quantity of electricity invoiced by electricity supply undertakings to
industrial end-users. If possible, the market shares will be calculated separately for each band. The information
used for calculating weighted average prices will be managed by Member States, respecting confidentiality rules.

— In the interest of confidentiality, data relating to prices will be communicated only where there are,
Member State concerned, at least three end-users in each of the categories referred to under point (j).

in the

(i)

Three levels of prices are to be provided:

— Prices excluding taxes and levies.

— Prices excluding VAT and other recoverable taxes.

— Prices including all taxes, levies and VAT.

(j)

Electricity prices will be surveyed for the following categories of industrial end-user:

Industrial End-User

Annual electricity consumption (MWh)

Band-IA

Band-IB

Band-IC

Band-ID

Band-IE

Band-IF

Lowest

20

500

2 000

20 000

70 000

Highest

< 20

< 500

< 2 000

< 20 000

< 70 000

<= 150 000

(1) Industrial end-user may include other non-residential user

9.6.2007

EN

Official Journal of the European Union

L 148/15

(k) Once every two years, together with the January price reporting, information about the compilation system applied
will be communicated to the Statistical Office of the European Communities and particularly: a description of the
survey and its scope (number of supply undertakings surveyed, aggregated percentage of the market represented, etc.)
and the criteria used to calculate the weighted average prices as well as the aggregated consumption volumes
represented by each band. The first communication related to the compilation system shall concern the situation
on 1 January 2008.

(l) Once per year, together with the January price reporting, information about the main average characteristics and
factors affecting the prices reported for each consumption band will be communicated to the Statistical Office of the
European Communities.

The information to be provided will include:

— Average load factors for industrial end-users corresponding to each consumption band calculated on the basis of

the total energy supplied and average maximum demand.

— A table indicating the voltage limits per country.

— A description of standing charges, meter rentals or any other charges relevant at national level.

(m) Once per year, together with the January price reporting, the rates and method of calculation as well as a description
of the taxes levied on electricity sales to industrial end-users should be reported. The description must include any
non-tax levy covering system costs and public service obligations.

The description on taxes to be provided will include three clearly separated sections:

— Taxes, levies, non-tax levies, fees and any other fiscal charges not identified in the invoices provided to industrial
end-users. The items described under this point will be included under the reported figure for the price level:
“Prices excluding taxes and levies”.

— Taxes and levies identified in the invoices provided to industrial end-users and considered as non-recoverable.
The items described under this point will be included under the reported figures for the price level: “Prices
excluding VAT and other recoverable taxes”.

— Value Added Tax (VAT) and other recoverable taxes identified in the invoices provided to industrial end-users.
The items described under this point will be included under the reported figures for the price level: “Prices
including all taxes, levies and VAT”.

An outline of the different taxes, levies, non-tax levies, fees and fiscal charges that can be applicable are:

— Value Added Tax.

— Concession fees. This usually refers to licences and fees for the occupation of land and public or private property

by networks or other electricity devices.

— Environmental taxes or levies. This usually refers either to the promotion of renewable energy sources or CHP, or

as a burden for CO2, SO2 or another agents emissions related with the climate change.

— Nuclear and other Inspection taxes: nuclear decommissioning charges, inspection and fees for nuclear instal-

lations, etc.

— Other taxes or levies linked with the energy sector: public service obligations/charges, levies to financing energy

regulatory authorities, etc.

— Other taxes or levies not linked with the energy sector: national,

local or regional fiscal taxes on energy

consumed, taxes on electricity distribution, etc.

Taxes on income, property related taxes, excise duties on oil products and fuels other than for electricity generation,
oil for motor cars, road taxes, taxes on licences for telecom, radio, advertising, fees for licences, taxes on waste, etc.
will not be taken into consideration and are excluded from this description, because they are undoubtedly part of the
operators costs and apply to other industries or activities.

L 148/16

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Official Journal of the European Union

9.6.2007

(n) Once per year,

together with the January price reporting, a breakdown of electricity prices into their main
components will be communicated to the Statistical Office of the European Communities. This breakdown of
electricity prices into their main components will be based on the following methodology:

The complete price for electricity per consumption band can be considered as the global sum of “Network” prices,
“Energy and Supply” prices (i.e. from generation to commercialisation, except networks) and all taxes and levies.

— “Network” price is the ratio between the revenue related to transmission and distribution tariffs and (if possible)
the corresponding volume of kWh per consumption band. If separate volumes of kWh per band are not
available, estimates should be provided.

— “Energy and Supply” price, is the total price minus the “Network” price and minus all taxes and levies.

— Taxes and levies. For this component an additional breakdown will be provided:

— Taxes and levies on “Network” prices.

— Taxes and levies on “Energy and Supply” prices.

— VAT and other recoverable taxes.

NOTE: If complementary services are identified separately, then they can be allocated into one of the two main
components as follows:

— “Network” price will include the following costs: transmission and distribution tariffs, transmission and distri-

bution losses, network costs, after-sale services, system service costs and meter rental.

— “Energy and Supply” price will include the following costs: generation, aggregation, balancing energy, supplied

energy costs, customer services, after-sales management, metering, and other supply costs.

— Other specific costs. This item represents costs which are neither network costs nor Energy and Supply costs nor

taxes. If this kind of costs exists, they will be reported separately.

(o)

In Member States where one company covers all the industrial sales, the information may be communicated by that
company. In Member States where more than one company operates, the information should be communicated by
an independent statistical body.’