CELEX: 51975PC0474
Language: en
Date: 1975-09-17
Title: ENERGY SAVINGS SHORT TERM OBJECTIVES 1976 - 1977 (Communication and draft Resolution, submitted by the Commission to The Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 474
Vol. 1975/0178
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                   \
                                      \
                                            COM(75 ) 474 final
                                            Brussels , 17 September 1975
  ■ /.         "           ENERGY SAVINGS
                                          •     v ■
                   SHORT TERM OBJECTIVES 1976 - 1977
                                                              i . :/ ■ < ■■ .• •>
        ( Communication and draft Resolution , submitted by the Commission
                                  \
                                                       to The Council )
                               ♦
                                   'i
                        • /•: ■ ;
COM(75 ) 474 fin»!
 ---pagebreak---              , ETERGY SAVINGS - SHORT TSPJi OBJECTIVES 197-5 - 1977
   R o aeons for ener^ry savin     m o am.vr e a " ; ; ' ■ . • .
   The need for an energy policy relating' "to - energy savings arisen a .rom
. long terra economic factors , such 'as -the limited .'availability or fossil ,
  energy , rosources in the' world and the opportunity for reducing the ' )•>;
  growth in the consumption of energy ''W well as- for reasons of protecting "
  the environment . " ■         ' " •■.' ; ■ ,- ' 1 ,                  , ..                     ■ .. 'i ■    v
  To these reasons - ; - 'which have , alre&iy' inso'ired tho ;Co:-vniuiity * 5 . Action
                                                                 ■ ■ ■: (*)           . , .          ,
  programme on tho rational 'utilisation' 'o'f energy . '                           nay te a/.ldod the ■
  more immédiate préoccupations • éngaging. iho- présent " situation in the
  energy narkotj the reduction of the vulnerability of .trie JSiiropo«?r. economy
 vis &. vis oil imports , and . the limitation of the 'effects of further . price •
 rises in oil involving additional "burdens on tho' "balance, of pnynents . • -J '
 Finally , .. a . sustained effort for tho reduction of oil consumption would , ( ,
 make a valuable contribution to 'achieving the . equilibrium of , the /market >■
 in the relations between the producers , and ; consumers- - of oil . . : , '                             •
 With' regard to the present state of energy..' savings it ", should , bo
 recognized that tho efforts undortak'on so :?ar bwi 'not given rise to
 considerable results .        In . the evC'.luatic/: of these . efforts , it ?.s
necessary to ' make a 'sharp distinction -bstvee " vhp ©xegcheus and ?.r:digenouci
factors which govern, the whole of- -the' rednet-iojvof consumption: - • •
–        the development of cconoraio activity -s yd . climatic - cor/lit :.onb . ; -                            '
         ( favourable in 1974                                                  .without -on c'.c-cv.^Ai
– ' the prices . and' the' measures - ( constraints and modifications in the
       ' structure of • consumption ) , •• which ■ give' ;rise on the other hand - to                       .[ ,
         deliberate measures on the market and govern the real , savings \ v
(*) D00.COM ( 74) 1950 final ©nd'-KesoJ.uitiCh R/l$/,75 of                               Coi'^c f..l of
        17th December 1974 *         '                                      :. U..        !■' .
 ---pagebreak---                Translated into figures , and for the whole of energy consumption
               in the Community for the year 1974 » this means that of the 60: 'too
                                                             *
               in the reduction of- recorded consumption x : one can attribute :       }
                     +
              –      – 27 M toe.to the price effect and to the voluntary or
                     restrictive savings measure :.:, that is principally to savings , : •
                     and                                                               -
              -      +   33 litoe to the slowing down in the growth of G.D.P. and to
                     favourable climatic conditions .
            With regard to the consumption of oil r tho reduction of 65 M't
            recorded in 1974 in relation to preliminary forecasts , may be
            attributed thus :
            –      +     30 Mt to savings ( price effect , measures , plus substitution
       ••     • .       and
                                                                                       t
                   +    35 Mt to G.D.P. factors and climat e .
                  'measures taken in the Qormunity in 1975                              : .
           In 1975 , possibilities for substitution having been realised , the
           price of oil products having fallon in real teres , and the savings
           measures being introduced only 0 lowly , tho true econorcioo should
           not exceed 15 Mt^**^. Thus, the reduction in consumption of 9/J
           oil (***) £n relation to 1973 ( 52 Mt ) is duo in largo part to tho
           development of the eoonomio situation end to favourable, oliiaatio
           conditions .                 .                                              (
           Indeed , a quick review of the measures in force or projected for ,
           the current year within tho Community, leads' one to conclude that
         . the importance of their effect should be treated with reserve ,
           despite the great number and variety of measures applied or in tho
           course of introduction .                      . .
(*) In line with the growth of previous years , energy consumption in 1974
      should . have risen to 975 Mtoe instead of 915 Mtos actually attained .
(**) See " Short Term Objectives relating to the reduction of Oil
      Consumption" ( Doc.COI-I 975 ) 118 finc-l , definition of objectivc>>,para 5).
(*.**) Resolution of the Council rol.-vMng to the establishment of a short-
          term objective in respect of Ihe reduction of oi3. consumption ,
     .._DOC..Ry.iy,9/75 , 30th May 1975 .                                   ...          L*
 ---pagebreak---                                       - 3 -
     Concrete results should "be obtained only gradually and involve delays m
    execution often going "beyond a period of one year . At the present time ,
    measures have "been principally taken in the following fields :
    l ) Information and indirect measures
         -  Public Information
         -  Création of advice centres
         -  Creation of specialised government services .
    2 ) Financial
         -  Tax réductions
         - Special loans or aids , notably in the field of thermal insulation
    3 ) Disnuasion and Constraint
         - Taxation of oil products \ .       ,   .  ,           .
                                       ; m order to change structures
         - Tariffs ( electricity )
         - Restriction and limitation , notably in the fields of transport or
            of domestic heating, or public lighting
    Since these measures are convergent , but do not have the same degree of
    diffusion and importance by country , it is virtually impossible to evaluate
    results in 1975 *
3 . Probable development in 1976 and 1977                            '
    Whereas the years 1974 and 1975 were characterised by a very marked slowing
    down in economic activity , an economic recovery is nevertheless expected in
    1976 and 1977 : a basis of an average annual rate of growth of 4$ in the GDP
    could be used as a hypothetical basis ; this corresponds to the long-term
    energy forecacts .   The Commission realizes that this growth rate is an
    optimistic one, and reserves the right to review the energy savings targets
    if the situation warrants it . A 4% growth in economic activity would
    ordinarily mean an additional input of energy of roughly the same amount .
    The following factors must also be taken into accounts
 ---pagebreak---                                      - 4 -
     - it is highly unlikely that the favourable climatic conditions of the
        last two years will he repeated in the next twoj a consumption
        corresponding to that of the heating needs of a "normal " winter whould
        therefore he expected }
    - it is assumed that energy prices wrill remain relatively stable in real
        terms ;
    - the energy conservation measures introduced in 1974 and 3-975 will continue
        to have their affect .
    On this basis it is likely that internal energy consumption will increase by
    40 Mtoe in 1976 compared with the previous year , and by 37 Mtoe in 1977 »
    Taking into account the probable additional supplies of natural gas produced
    in the Community (+ 10$) and primary electricity (+ 15/o)» it is likely that
    oil consumption will increase by only 10 Mt     in 1976 and by 12 Mt in 1977 »
    i.e. by about 2$.
    As for net imports of energy and oil , the^are likely to remain fairly
    stable in 1976 ( 560 Mtoe of which oil would be 5^5 Mt ) and even fall in
    1977 hy 15 Mtoe for energy and 20 Mt for oil , taking account of indigenous
    production .
4 . Encr,'"^-conservation objectives for 1976 and 1977 «
    This probable growth in energy consumption , raises the difficult question
    of how to work out a firm policy with regard to energy savings and how
    to achieve additional economies without hindering economic recovery .
    Consequently , it seems necessary to ensure that the savings measures do
    not affect the useful consumption of energy and to concentrate on the
    non-useful part of energy consumption , i.e. waste and poor efficiency .
    Close attention must therefore be paid to these two objectives which are •
    moreover basic to the Community 's medium and long term programmes for the
    rational use of energy^, and the Council 's Resolution on this subject ,
    of 17 December 1974 »
    What practical steps can be taken in 1976 and 1977?
    l ) Doc . COM(74 ) 1950 final "Programme for Community action on the
         Rational Use of Energy".
 ---pagebreak---                                 - 5 -
 The responsible public authorities should commit themselves :
                                                                         i
- to applying with greather effectiveness those measures already         i
    taken , especially in fields directly or indirectly under publio
   authority control where an example should be given ( such as control
   of heating and ambient temperatures , sensible use of lighting and of
   official cars etc ) in administrative offices , schools , barracks ,
   hospitals , tertiary-sector enterprises - transport , energy , and      i
   banking and insurance ;
- to examining at Community level what opportunities and means for
   extending these measures exist ( exchanges of views on the
   effectiveness of the measures taken , and on problems arising when
   they are put into effect , etc .);
- to making a greater effort in respect of informing the public by
   effective means and at the right time ( e.g. by launching simple ,
   easily-understood campaigns demonstrating the main areas where
   heating fuels can be saved );
- to publishing in companies' end-of-year-accounts energy balances
   which stressing any savings that have been made ;
- to accelerating the work on reforming the pattern of comsumption ,
   currently being undertaken through programmes for the rational use
   of energy in the medium term ( 1985 ), whilst taking into account the
   fact that this aim can only be achieved by more intensive and wider-
   ranging activities ( e.g. bringing forward the time limit , even if
   this entails introducing provisional measures at short notice
   pending their replacement by more detailed measures which also
   comprise the necessary inspection and supervision machinery ).
In this connection it appears that the aim of short-term savings in
engergy requires more indirect/auxiliary measures from public
authorities to promote consumer action .    It would be particularly
appropriate :
- to develop the necessary structures in national administrations ;
   in view of what is at stake ( the contribution of the rational use
   of energy programme for 1985 is a reduction of about 15$ ( 240 Mtoe )
   and thus of the same order as the production of coal or of nuclear-
   based electricity ), the public authorities should appropriate more
   in the way of resources than at present to devising, implementing
   and supervising these measures ;
 ---pagebreak---  - to provide more opportunities for giving advice on questions
    connected with the rational use of energy ( information offices
    and publicity campaigns    related to the areas of highest consumption -
    heating , transport );
 - to envisage , under certain conditions , financial support which could
    be provided within the scope of programmes in a situation of
    economic recovery , and to provide for the financial requirements by
    means of funds from taxation or by raising the tariffs on energy
    sources ;
 - to make preparations for a reference and control group to study the
    results of national and Community energy-conservation programmes .
 It is only if the public authorities conscientiously lead this campaign
 for a better use of energy , giving it the place it deserves , that the
 "savings " obtained in 1974 and 1975 ; due largely to the economic
 situation , can be maintained in the form of real savings in 1976 and
1977 .                                                             l
The trend started in 1974 and 1975 should be able to be maintained , re­
establishing the ling with the first stage of the programme for the
rational use of energy in the medium term v ' and justifying the setting
of the following savings objectives :
- in energy consumption of about 20 Mtoe ( 2$) in 1976 and
                                      30 Mtoe ( 3# ) in 1977 , and
- in oil consumption 15 Mt ( 37° ) in 1976 and
                         25 Mt ( 5/0 in 1977
Compared with the figures for 1973 ( see Appendix II ) these objectives
indicate in fact :
- that 1976 energy consumption should remain at the 1973 level in
   spite of the growth of the economy., and should be grater by 33 Mtoe
   in 1977 ;
- that for these two years oil consumption should remain some 60 Mt
   ( 1.2 Mb/d ) below that of 1973 ;
- that net imports of oil should be reduced by about 90 Mt ( 1.8 M b/d )
   in 1976 and 120 Mt . ( 2.4 M b/d ) in 1977 .
 (*) 30 Mtoe , i.e. 3$ of 1977 consumption -see Doc . C0M(74 ) 1950 final
      "Programme for Community action in the rational use of energy ".
 ---pagebreak---                               - 7 -
The Commission considers that these objectives can be achieved to
the extent that Member States decide to adopt , so as to attain
them , the appropriate measures of which an outline description has
been given above .
                                                            \
Therefore the Commission submits the added   draft-resolution for
the Councils' urgent consideration .
 ---pagebreak---                      ■ I^VELOr^I-liTS 0?T THE COraiETITT F21TP.CY KARKET
              ■■ Results . Entimated results . Forecasts without energy
                                                                                        ^ ^® g C^
                   saving objectives
        ■■■•«»« Forecasts with energy saving efforts                             ^
       «=>«= Previous forecasts (January 1973 )
Î050 -                                4                        .                      ;        1050
                                          ■      ■
1000 -                                                                         1           -– -1000
                                         y*} |     Internai Energy Consumption
 S50 -
                                   > ^7/           7/
                                                                                            ^
                                                                                            ^
            ■ χ<~7
            /                                                 I                      ^^
                                                                                               650
 900- X                                                       ^
      <                                                      -T ^            ^
      I         '                        < ^                           ''
                        <<          ^
                                        I-                  <4
                                                              ,/                         '      *600
                                                                                                  nn
                                                      ^
     <               X
                                               1      •          Inports (net)
                                            \ /                                       ––550
  500                                          ^*^^^^^'   /
                                                                                 ^ ^^^^-500
                                                                         """l "^V '"~
                                                                                                        i
                                                                                                        !i
                                                                                                          j
                                                         /                           \                    i,
                                                        //                              \               ii
        j Internai Oil Consumption                    £j                                             j[
                                                           !               '                         |i
  450b             –4r                   ±                   ±               =h         –à: 450 \
   OU
    1972
                  ' 1973T                X
                                        1974
                                                             I
                                                           1975
                                                                             X
                                                                             1976
                                                                                             Tj t
                                                                                            1977
 ---pagebreak---                                                                                     ANNEX II
                              ENERGY CONSUMPTION IN THE COTSTUNITY
                                                                                        10   toe
                     Results    Results    Estimâtes         Forecasts 1976    Forecasts   1977
                       1973       1974        1975       Normal     with (**) normal         v/ ith
                                                                    actions                 actions
Energy consumtion       932        915         918         957         938      995             965
Oil eonsumption         552        515         497         508         493      520             495
Energy imports                                                                                   515
( net )                 616        587         558         560         540      546
Oil imports ( net )     590        561         519         515         500      495              470     |
                                                                                                        .i
                                                                                                         »
                                                                                                1     1  !
Annual growth         + 5.5      + 1.9       + 0.4         4.0         4.0      4.0               4.0
CDF (*)
 (*) Price and rate of change 1973
 (**) With continuing efforts on energy savings ( see chapter 4 ).
 ---pagebreak---                           DRAFT COUÎTCIL RESOIUTION
                    on the setting of a short–term target
                    for the reduction of oil consumption
                                 1976 - 1977
 THE COUNCIL OF THE EUROPEAU COMMUNITIES
 Having regard to the Treaty establishing the European Economic
 Community ;
 Having regard to the draft from the Commission ;
 Having noted the Commission communication entitled "Energy savings –
 short–term targets 1976–77" which sets out , inter alia , measures
 for reducing oil consumption ;
 Considering the Council Resolutions of 17 December 1974 on Community
 energy policy objectives for 1985 and on the Community action programme
 on the rational utilization of energy ;
 Considering the Council Resolution of 26 June 1975 on "the setting of a
 short-term target for the reduction of oil consumption ;
Whereas reduction of the rate of growth of internal energy consumption
"by measures for the rational and economical use of energy without
 jeopardizing social and economic growth objectives is one of the aims
 of the Community 's energy policy ;
                                              •V.
Whereas energy resources must be used rationally in order to conserve
 them as much as possible ;
Whereas by reducing oil imports the Community can alleviate the burden
 on balances of payments resulting from the present level of oil prices ;
 ---pagebreak--- Whereas economic recovery in the Community in 197° an^ ^-977 would, increase
energy requirements , especially on the assumption that average annual GDP
growth rate might "be of some 4      if    additional effort to save energy is
made j
Whereas it therefore appears desirable to establish a target for the
reduction of oil consumption in the Community }
1 . APPROVES , in the light of Member States current forecasts , and on the
    assumption of economic growth mentioned above , the targets set for
    the Community as a whole s
    – Energy consumption : 197 ^ consumption to stabilize slightly over the
       1973 level ( 932 M toe)j limit the growth of 1977 consumption to a
       maximum of 35 M toe (also by comparison with 1973) ?
    – Oil consumption : maintain consumption levels for both 197 ^ and 1977
       at some 10 $ below consumption in 1973 }
2 . REQUESTS the Member States , with a view to attaining these targets , to
    continue the efforts already under way in this field , to take whatever
    measures are suited to their individual situations , and to reinforce
    their actions especially in the following areas s
    – national administrations and public institutions
    – public information to increase awareness of the energy saving problem
    – advice and assistance to consumers , showing practical ways of saving
       energy
    – incentives such as loans , tax concession , etc .
    – momtoring of adopted measuress
3 . REQUESTS the Commission to study the scope and the feasibility for
    extending to a Community level some of the measures foreseen or adopted
    in Member States , and to submit to the Council , if possible , concrete
    proposals before the end of the year }
4 . REQUESTS the Commission to submit a report to the Council on the reali-
    sation of this target and on measures taken by the Member States or by
    the Community .