CELEX: 51988PC0576
Language: en
Date: 1988-10-20
Title: Proposal for a COUNCIL DECISION on a Community Action Programme for improving the efficiency of electricity use (Communication from the Commission)

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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM ( 88 ) 576 final
                                          Brussels , 20 October 1988
                             Proposai for a
                            COUNCIL DECISION
                  on a Community Action Programme for
             improving the efficiency of electricity use
                  ( Communication from the Commission )
                 09 /
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 ---pagebreak---                                    – 7
                 Communication from the Commission to the Council
                                         on
                  A Community Action Programme for Improving the
                           efficiency of electricity use
                                        and
                     proposai for a Councit Decision
Contents
Chapter                                                        Paragraphs
I     Introduction . 1 -                                                4
II   Reasons for promoting the efficient use of electr Iclty . . . .5 - 9
III  Areas of potential efficiency Improvements . 10 - 12
IV   Objectives of Community action . 13 - 16
V    Participants In Communlty action . 17
VI   The Community Action Programme . 18 - 21
Annex - Draft Council Decision
 ---pagebreak---                                            - "/
                                   A COMMUNITY ACTION PROGRAMME FOR
                             IMPROVING THE EFFICIENCY OF ELECTRICITY USE
                          Communication from the Commission to the Council
                              and proposal for a Council Decision
  I.       INTRODUCTION
    1.    The Importance of energy saving to the Community economy has been
          frequently emphasised by the Council .          In Its Resolution of 16 September
          19861 1 ) the Council called for a vigorous policy for energy saving and
          adopted the objective of achieving at least a further 20% improvement in
          the efficiency of final energy demand by 1995 . Towards achieving this
          objective , this Communication proposes a Council Decision ( draft annexed )
          which would establish a Community Action Programme to Improve the
          efficiency of electricity use .
    2.    The Commission , in Its Communication to the Council        In October 1987
           ( COM ( 87 ) 496 final ), presented the case for a concerted programme of action
          throughout the Community to exploit the potential for Improved efficiency
           In the use of electricity . The Council recognised the Importance of this
          and Invited the Commission to associate electricity distributors with this
          exercise , as well as other interested parties .
    3.    The Commission has since held discussions with Interested parties
          represented at Community level , including electricity utilities , energy
          consumer organisations , energy managers and manufacturers In the lighting ,
          electric motor , and domestic appliance fields . All parties indicated
          their willingness to co-operate in a Community Action Programme , and
          endorsed its objectives .
    4.    The Community Action Programme concentrates on improving the efficiency of
          final electricity use and does not deal , for example , with measures such
          as Improvements In the efficiency of electricity production or load
          management , both of which can Improve the economics of electricity
          supply . Questions of correct pricing and , particularly , the use of
          appropriate tariff structures are also vital for encouraging the efficient
          use of electricity but will be addressed elsewhere In the Internal energy
          market context .
4
  ( 1 ) O.J. C241 , 25.9.1986 , P.1
 ---pagebreak---                                                2
I I . REASONS FOR PROMOTING THE MORE EFFICIENT USE OF ELECTRICITY
  5.  Electricity consumption , which grew at about 3% a year during the 1980 's ,
      now accounts for about 17% of final energy demand In the Community . The
       increasing role of electricity often reflects the Introduction of more
      efficient and productive technologies , contributing to Industrial
      compet I t I v I ty and higher standards of living . Electricity Is also the
      vector through which solid fuels and nuclear power have greatly reduced
      the Community 's dependence on imported oil , and will In future be the main
      vector through which renewable energies can contribute to Community energy
      supply . The growing role of electricity does , therefore , make It all the
      more Important to ensure Its efficient use .
 6.   Savings in electricity correspond to still greater savings In primary
      energy demand .       In 1987 , the electricity consumption of 1570 TWH ( 2 )
      required the Input of 367 MTOE ^) 0 f primary energy ( 35% of total primary
      energy consumption ). If electricity use In 1987 had been 5% less
      ( 78,5 TWh , equal to 6,75 MTOE final energy use ), this would have reduced
      the requirement for primary fuels for electricity consumption by
      18,4 MTOE , some 2,7 times as much , due to the gearing effect of
      transformation losses .
 7.   Recent estimates Indicate that , if 90% of equipment and appliances used In
      the Community In 1985 had been the most efficient commercially available ,
      there would have been considerable savings In electricity consumption .
      Electricity consumption In the Industrial sector could have been lower by
      some 11% , in the residential sector by 20% , in the tertiary sector by 11%
      and In the transport sector by 3% , resulting In an overall reduction in
      consumption of some 12% . These estimates , although approximate , indicate
      that significant savings are possible by Improvements in the Inherent
      efficiency of electrical equipment .
  8.  Reductions in electricity consumption bring other benefits .         It is
      estimated that a 10% Improvement In the efficiency of electricity use
      could , by the year 2000 , avoid the need for some 40 GW of additional
      generating plant with a reduction in Investment requirements of some 35-40
      milliard ECU . This would imply consequential reductions In costs to
      electricity consumers . Since a high proportion of such additional plant
      would use fossil fuels , the considerable reduction In atmospheric
      emissions would contribute to the reduction of environmental pollution .
  9.  A Community Action Programme In this field would be complementary to other
      existing Community Actions . Not least of these Is the Community Energy
      Demonstration Project Programme , which has a high energy-saving content .
      Other actions Include the Council Directive on the energy labelling of
      domestic appl lances ^ 4 ) and the Commission Initiative on the energy
      certification of bui Idings ^ 5 ^ .
(2)   TWh - KWh x 109
(3)   MTOE – Mill Ions of tonnes oi I équivalent
(4)   0 . J. N° L 145 , Page 1 , of 13.6.1979
(5)   O.J. N° C 267 , Page 2 , of 6.10.1987
 ---pagebreak---                                        - 3 -
III . AREAS OF POTENTIAL EFFICIENCY IMPROVEMENTS
10 .   In the domestic sector there have been significant Improvements In the
      electrical efficiency of new appliances over the years . Typically , over
      the last 10 years the specific electricity consumption of refrigerators
      has reduced by at least 16% , that of dishwashers by at least 10% and that
      of washing machines by at least 26% . In lighting , also , new types of
      fluorescent lamps offer saving potentials of 70% to 80% compared with
       Incandescent lamps . Savings can also be achieved by the more controlled
      use of electrical space and water heating .
11 .  In the Industrial sector , motive power accounts for some 60% of total
      consumption . In this area significant savings are possible by the correct
      choice of electric motor size , by the replacement of existing motors by
      higher efficiency motors , by the correct choice of the type of regulation
      of the driven pump or fan and by suitable automatic control to ensure the
      minimum necessary running time .  The use of electricity for process heat
      accounts for a further 20% of consumption . Here the choice of the most
      efficient process and the reduction of waste heat are further areas of
      saving potential . Lighting Is also used extensively In industry ; both the
      choice of the types of lighting equipment used and the use of automatic
      controls to minimise consumption are potential areas of saving .
12 .  The principal areas of application In the tert I ary sector are space and
      water heating , motive power and lighting . As In the other sectors , the
      potential of savings lies In the selection of the most efficient equipment
      and the careful control of Its use . Although this Is a heterogeneous
      sector , It does Include public and office buildings , areas in which
      considerable potential for savings In both lighting and heating Is known
      to exist .
IV .  OBJECTIVES OF COMMUNITY ACTION
13 .  To achieve the potential savings from Improving the efficiency of
      electricity use and the resultant benefits , Community action should have
      two principle objectives .
14 .  Consumer behaviour must be Influenced In favour of the use of the most
      efficient electrical appliances and equipment and of using these In the
      most efficient manner .
      The Improvement of the overall efficiency of electricity use does not
      depend Just on Improving the efficiency of Industrial equipment and
      domestic appliances , Important as this Is .  It depends at least as much on
      the electricity consumer , to whom costs and cost-effectiveness are
      Important . The extent of his awareness of efficiency and costs will
      determine whether he purchases and installs the most efficient models
      available . Community action , to be effective , must cover all these
      aspects .
 ---pagebreak---                                             4
15 .  All consumers should be well Informed on the relative efficiencies of
      equipment commercially available , Its cost-effectiveness and Its efficient
      use . Furthermore , they should have ready access to technical advice on
      the purchase and Installation of the moat efficient equipment . In many
      cases the user of electrical equipment ( the electricity consumer ) Is not
      responsible for the choice of equipment , which has been specified by an
      architect . In the case of buildings , or a consulting engineer . Those
      responsible for specifying electrical equipment must be sensitised to the
       Importance of efficiency and well Informed on the relative efficiencies of
      ava I table equ ! pment .
 56 . The efficiency of electrical appliances , equipment , and electricity -
      based processes should be further Improved and h Igh-ef f Ic lency equipment
      effectively marketed .
      Hlgh-eff Iclency equipment should be effectively marketed and efforts made
      to Increase the proportion of such equipment In commercial use , Including
      the transfer of technology throughout the Community . Where the lack of
      technical harmonisation or standardisation ( whether performance standards
      or equipment standards ) hinders Improvement In the efficiency of
      electricity use , corrective measures must be taken . The promotion of new ,
      h igh-ef f ic lency equipment by demonstration projects and the replication of
      such projects should be used to Increase the overall efficiency of
      equipment and Its use . Research and development should also continue with
      the aim of bringing forward Into commercial use even more efficient
      electrical equipment .
VI .  PARTICIPANTS IN COMMUN ITY ACTION
17 .  The above objectives can best be furthered by the co-ordinated efforts of
      a number of different organisations and Institutions . This would ensure
      that the benefits of experience , technical and marketing expertise were
      harnessed together throughout the Community . The Community Action
      Programme should therefore Involve the following :
      -   electricity distributors , who     have both a high level of expertise In
          the use of electricity and the closest and the most direct relationship
          with the final consumer ;
      -   consumer organisations , who    are already active In providing
          information to consumers both on the relative efficiencies and costs of
          various aopl lances and equipment , principally In the domestic sector ;
      -   professional Institutions In both engineering and architectural fields ,
          who have a role to play In ensuring that the concept of the efficient
          use of electricity Is thoroughly understood and put Into practice by
          those responsible for the specification of equipment ;
      -   manufa c turers of electrical appliances and equipment , through their
          reoresentat i vs organisations , can also make a valuable contribution .
          Collective action on their part can contribute towards Improving the
          efficiency of electrical appliances and equipment on the market .
 ---pagebreak---                                            - 5 -
       -   Member State Governments , who can take a lead by ensuring the exemplaiy
           efficient use of electricity In the premises which thev own or occupy .
            In addition , efforts should be particularly focused on electricity u^e
           within Member States' energy saving programmes ;
       -   the Commission , which has a coordinating and supporting role to play In
           the planning and execution of Community action .
  VI . THE COMMUNITY ACTION PROGRAMME
       Elements of the programme
  18 . The Community Action Programme would be set In hand by the proposed
       Council Decision . The Implementation of the Programme must provide
       sufficient flexibility to ensure maximum effectiveness In each Member
       State . The Programme would Include the following elements :
       a ) Consumer Information : Improvements In the Information available to
           consumers and equipment specifiers , on appliance and equipment
           efficiency and efficient use , should be made through :
           -   electricity distributors , who should develop action programmes to
               this end ;
           -   consumer organisations , who should further improve their
               dissemination of Information through all appropriate media ;
           -   the appliance and equipment manufacturers , who should ensure not
               only the availability of adequate Information but also Its specific
               relevance to electrical efficiency ;
           -   Member State Governments and the Commission should ensure that their
               activities In this area Include measures to inform consumers ;
               the Commission , electricity distributors and manufacturers should
               co-operate In the establishment of appropriate databases .
       b ) Technical advice : Technical advice on the purchase , Installation and
           use of the most efficient appliances and equipment should be readily
           available to consumers , especially those lacking technical expertise in
           this field .   This Involves :
           -   electricity distributors , who may themselves provide such advice or
               have  Information available on where such advice can be obtained
               ( e.g. third-party financing companies , energy service companies ,
               consulting engineers , etc .);
           -   consumer organisations ;
           -   professional   institutions , who should ensure that adequate
               educational  facilities exist   In areas concerned with the efficient
               use of e lectr Ic I ty ;
           -   Member State Governments should ensure that , where appropriate ,
               their consumer Information activities    include Information on sources
               of technical advice .
*
 ---pagebreak---                                           6 -
c ) Appliance and equipment efficiencies : Actions should be taken not only
    to Improve the efficiency of appliances and equipment but to Increase
    the market share of the most efficient models already commercially
    available .      To these ends :
    -   manufacturers of appliances and equipment should , by collaboration
        through their associations , take actions to Improve equipment and
        appliance efficiencies .      They should Intensify their own marketing
        efforts In e lectr I ca I ly-ef f Ic lent equipment and their support for
        the marketing efforts of other parties ;
    -   electricity distributors should make the Increased penetration of
        more electrically efficient appliances and equipment a major element
        of their action programmes In this area , Including examination of
        the potential of selective financial Intervention ;
    -   Member State Governments and all other parties directly Involved
        with the execution of the Community programme should take actions to
        ensure that , In all the activities for which they are responsible
        and In all the buildings they own or occupy , electrical appliances
        and equipment are of high efficiency and efficiently operated ;
    -   all parties should facilitate the transfer of h Iqh-ef f 1 c lency
        technology In the Community ;
    -   new or Improved efficiency-related standards , which experience
        elsewhere has shown can be an effective means of energy saving ,
        should be Introduced wherever appropriate .
d ) Financial      Incentives : The massive use of financial      incentives to
    achieve Improved efficiency in electricity use Is obviously not a
    desirable option . Nevertheless , there may be situations where
    financial Incentives have advantages .          It may , for example , be
    beneficial for electricity distributors to give support to activities
    which , through the selective reduction of electricity use , produce
    savings In the costs of electricity supply . Although not strictly a
    financial Incentive , the use of the third party financing technique can
    facilitate and encourage Investments to achieve Improved efficiency of
    e lectr ic I ty use .
e ) Demonstration and R&D : Demonstration of new , electrically efficient
    appliances , equipment and technologies should be supported and co-
    ora inated between national and Community programmes and the results
    disseminated throughout the Community .
f ) Programme co~orci Inat Ion and monitoring : The Commission would be
    responsible for the co-ordination of the planning and Implementation of
    the programme , and monitoring of results . It would encourage the
    setting of practical targets for efficiency Improvement and reasonable
    timetables for their achievement , provide financial support for
    studies , databases , seminars and other Information activities ,         it
    should inform the Council regularly on the development and the results
    of the programme .
 ---pagebreak--- Management ofthe proar amme
Underlying the Community pattern of electricity consum.pt Ion are differing
patterns In the Member States . Such differences , and the reasons for then ,
should be taken Into account In determining the most effective actions to
be taken . Thus , It Is Important that the management of the Community
Action Programme should be sufficiently flexible tc ensure that actions
within Individual Member States are appropriate to their needs and
circumstances . At the same time , coordination and support as ’.veil as
monitoring of the actions and their results should be provided at
Community level .
To achieve this , the draft Council Decision proposes that :
-  Member State Governments should establish national bodies , responsible
   for the Implementation and coordination , at national level , of actions
   within the Community Action Programme . All interested parties snould be
   represented In these bodies , Including the electricity utilities ,
   electrical equipment manufacturers , consumers organisations and
   appropriate professional bodies ;
-  a Community Action Programme Advisory Committee should be established
   to assist the Commission in the co-ord Inai Ion of the Action Programme
   and to advise on appropriate activities to be carried out at Community
    level In support of the Action Programme . All national bodies should
   be represented on this Committee , which should call on other interested
   parties as appropriate ;
-  a Community Action Programme Secretariat should be established by the
   Commission , responsible for coordination , dissemination of Information ,
   management of studies or other actions at Community level and the
   preparation of regular progress reports to the Council .
The draft Council Decision Is annexed .
 ---pagebreak---                                                          ANNEX
                                       Proposai for a
                                      Councl I Decision
                        on a Community Action Programme for
                    Improving the efficiency of electricity use
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and In
particular Article 235 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ,
Having regard to the opinion of the Economic and Social Committee ,
Whereas In Its resolution of 15 January 1985 on the Improvement of energy-saving
programmes In Member States ^ 1 ) the Council Invited Member States to pursue and
where necessary increase their efforts to promote the more rational use of
energy by the further development of Integrated energy-saving policies ;
Whereas in its resolution of 16 September 1986(2 ) concerning new energy policy
objectives for 1995 the Council called for a vigorous policy for energy saving ;
Whereas In its declaration of 26 November 1986 on energy efficiency the Council
agreed that the Community and the Member States would publicise the need for
greater energy efficiency by making available full Information and advice on how
 this can be achieved ;
Whereas the production of electricity accounts for over 35% of the Community 's
 total primary energy consumption and the consumption of electricity for over 17%
of the Community 's total final energy consumption ;
Whereas Improvements in the efficiency of electricity use would bring benefits
 in terms of lower primary energy consumption , reduced investment in electricity
production capacity , reduced emission levels and lower electricity costs to
consumers ;
Whereas significant potent ! a I for improvements In the efficiency of electricity
use exists and specific actions are necessary to ensure Its achievement ;
Whereas , to achieve improvements In the efficiency of electricity use ,
electricity consumers should be encouraged to use the most efficient electrical
appliances and equipment and the efficiency of such appliances and equipment and
of electrically-based processes should be further Improved ;
 (1 )  O.J. C20 , 22.1.1985 , P.1
 (2)   O.J. C241 , 25.9.1986 , P.1
 ---pagebreak---                                          -9
Whereas a Community Action Programme should be Instituted to achlevj these
objectives , and whereas the EEC Treaty has not provided for the necessary powers
to achieve these object !" es ;
Whereas such a Community Action Programme would be complementary to ether
action :: *n th© general field of energy saving . In particular the Community
Energy Demonstration Project Programme , which has a high energy-saving content ,
as well as the Council Directive on the energy labelling of domestic
appliances ^) t the Council Resolution on the rational use of energy use In
buildings ^ and the Commission Initiative on the energy certification of
bul Idlngs ^) ;
Whereas the execution of a Community Action Programme would require not only
the collaboration of the Commission and Member State Governments but also     the
participation of other parties In the electricity sector , notably the
electricity distributors , electrical equipment manufacturers , electricity
consumers' organisations , and professional institutions ;
HAS DECIDED AS FOLLOWS :
                                        Article 1
1.     A Community Action Programme for Improving the efficiency of electricity
       use shall be Instituted .
2.     The Community Action Programme shall have , as its twin objectives , the
       Influencing of electricity consumers In favour of the use of the most
       efficient electrical appliances and equipment In the most efficient
       manner and the further improvement of the efficiency of electrical
       appliances and equipment and of electricity-based processes .
                                        Article 2
The main lines of the activities envisaged within the Community Action
Programme shall be as Indicated In the Annex to this Decision . Additional
actions may be included during the operation of the Programme , where such
actions can further the achievement of the programme objectives .
                                        Article 3
1.     The Member States shall be responsible for the management and execution
       of actions under the Community Action Programme within their territories
2.     To this end Member States shall set up or appoint national bod'es , In
       which all interested parties In the execution of the Programme shall be
       represented Including the electricity undertakings , electrical equioment
       manufacturers , consumers' organisations and appropriate professional
       bodies .
3.     Membur States shall   Instruct the national bodies to recommend and
       c ordinate the execution of actions under the Community Action Programme
       within th.vlr territory and to ensure close liaison with the Commission .
( 3)   O.J. N° L 145 , Page 1 of 13.6.1979
(4)    O.J. N° C 78 , Page 1 , of 26.3.1985
 .5)   O.J. H ) C 267 , Page 2 , of 6.10.1987
 ---pagebreak---                                      Article 4
1.     A Community Action Programme Advisory Committee shall be established ,
       under the Chairmanship of the Commission , which will comprise
       representatives of the national bodies referred to In Article 3 as well as
       other Interested parties nominated by the Commission . The Committee
       shall determine Its rules of procedure .
2.     The Committee shall assist the Commission In the coordination of the
       Action Programme and shall advise on appropriate actlvltes to be carried
       out at Community level in support of the Action Programme .
                                     Article 5
1 .    The Commission shall ensure the secretariat of the Advisory Committee
       referred to In Article 4 and be responsible for the provision of
       administrative planning and technical support to the management of the
       Programme and for the management of actions Instituted by the Commission
       In support of the Programme .
2.     The coordination at Community level of actions under the Action Programme ,
       the monitoring of the progress and results of the Programme and actions
       necessary to the support of the Programme at Community Level shall be the
       responsibility of the Commission .
3.     The Commission shall report regularly to the Council , to the European
       Parliament and to the Economic and Social Committee on the progress of the
       Community Action Programme . The first such report shall be made not later
       than nine months following the adoption of this Decision .
                                      Art Ici® 6
Where the achievement of the Programme objectives requires further Community
measures , the Commission shall lay before the Council proposals for such
measures pursuant to the relevant provisions of the Treaty .
                                      Art Ici® 7
After a period of not more than three years , the Action Programme and the
procedures established for Its Implementation shall be re-examined , on the basis
of a report by the Commission , with a view to examining their effectiveness and
 their possible Improvement .
                                      Article 8
The present Decision Is addressed to the Member States .
                                                 Done at Brussels ,
 ---pagebreak---                           ANNEX TO DRAFT COUNCIL DECISION
   The main I Inca of the activities envisaged within the Community
                Action Programme referred to under Article 2
Consumer    information
Activities to Improve the quality and availability of Information to
electricity consumers and equipment specifiers concerning the efficiency
of electrical appliances and equipment and their efficient use , Including :
         the provision of Information by electricity distributors , consumer
         organisations and , where appropriate , by Member State Governments ;
         the most effective use of all media for disseminating Information ;
         the provision of data relating to appliance and equipment
         efficiency by manufacturers ;
         the establishment of appropriate data bases .
Technical advice
Activities to ensure that technical advice on the purchase , Installation
and use of the most efficient electrical appliances and equipment Is
readily available to electricity consumers , Including :
         activities by electricity distributors and consumer organisations
         and Member State Governments to ensure that advice    Is available to
         consumers on the purchase , Installation and use of the most
         efficient electrical appliances and equipment ;
         activities by professional Institutions concerned with the
         specification and Installation of electrical equipment to ensure
         that their members are adequately Informed on the efficient use of
         e i ectr I c I ty .
Efflclencles cf electrical appl lances and equlpment
Activities to Improve the efficiencies of electrical appliances and
equipment and to Increase the market share of the most efficient of these
already commercially available , Including :
         the establishment of collaboration between manufacturers to
          improve the efficiency of appliances and equipment ;
         efforts by electricity distributors and others to increase the
         penetration of more efficient appliances and equipment by more
         effective marketing , including examination of the potential of
         selective financial Intervention ;
 ---pagebreak---                                      ~ A z-
            action by Member State Governments to ensure that , In all
            activities which they manage and in all buildings they own or
            occupy , electrical appliances and equipment are of high efficiency
            and efficiently operated ;
            consideration of the potential contribution of new , efficiency -
            related or technical standards to Improving the efficiency of
            electr Iclty use .
4. Démonstration
   Actions to ensure that the demonstration of new , more efficient
   appliances , equipment and technologies Is adequately supported and
   Information disseminated throughout the Community .
5. Studies and other support activities
   Actions to analyse factors determining the efficiency of electricity use
   and to Identify areas In which additional measures might effectively be
   taken , other studies and information seminars .
6. Co-ordlnat Ion and mon I tor I ng
   Actions to ensure the co-ordination of programme actions and adequate
   monitoring of the results .