CELEX: 51997PC0069
Language: en
Date: 1997-03-24
Title: Amended proposal for a COUNCIL DIRECTIVE to introduce rational planning planning techniques in the electricity and gas distribution sectors

COMMISSION OF THE EUROPEAN COMMUNITIES
                                            Brussels, 24.03.1997
                                            COM(97) 69 final
                                            95/0208 (SYN)
                          Amended proposal for a
                         COUNCIL DIRECTIVE
to introduce rational planning techniques in the electricity and gas
                          distribution sectors.
        (presented by the Commission pursuant to Article 189 a (2)
                            of the EC-Treaty)
 ---pagebreak---  ---pagebreak--- EXPLANATORY MEMORANDUM
The Commission adopted on 29 September 1995 a proposal for a Directive on the
introduction of rational planning techniques in the electricity and gas distribution
sectors. The proposal is based on Article 130s (1) of the Treaty which foresees the co-
operation procedure with the European Parliament. The European Parliament gave its
First Opinion on 13 November 1996. Fourteen amendments were voted and accepted.
In general, the amendments have improved the text.
Five amendments (No 6, 7, 8, 9 and 10) were accepted by the Commission without
reserve. Four amendments (No 5, 12, 13 and 14) were partially accepted.
Five amendments were rejected in full.
Am. 1 makes reference to a Legal Basis of Article 100A which the Commission does
not consider to be valid.
Am. 2 makes reference to a Legal Basis of Article 100A which the Commission does
not consider to be valid.
Am. 3 makes reference to a Legal Basis of Article 100A which the Commission does
not consider to be valid.
Am. 4 makes reference to a Legal Basis of Article 100A which the Commission does
not consider to be valid.
Am. 11 the amendment introduces ambiguity when speaking of 'cost to the consumer'
which the Commission considers weakens the Directive.
The amendments rejected in part are:
Am. 5 second part, makes reference to a Legal Basis of Article 100A which the
Commission does not consider to be valid.
Am. 12 first part, the Commision considers setting a quantified        objective for a
Directive to be inappropriate.
Am. 13 point a) the Commission considers the amendment to be too limiting.
        point d) the wording of the amendment is considered to be too constraining.
Am 14. point e) the use of the words 'make compulsory' is considered too
constraining.
 ---pagebreak--- ORIGINAL TEXT                                   AMENDED TEXT
                 Proposal for a                             Proposal for a
            COUNCIL DIRECTIVE                           COUNCIL DIRECTIVE
     to introduce rational planning               to introduce rational planning
   techniques in the electricity and            techniques in the electricity and
         gas distribution sectors.                    gas distribution sectors.
 THE COUNCIL OF THE EUROPEAN THE COUNCIL OF THE EUROPEAN
 UNION                                        UNION
 Having regard to the Treaty establishing the Having regard to the Treaty establishing the
 European Community, and in particular European Community, and in particular
 Article 130s para. 1 thereof,                Article 130s para. 1 thereof,
Having regard to a proposal from the Having regard to a proposal from the
 Commission,1                                 Commission,1
In     cooperation         with the European In     cooperation     with   the   European
              2
Parliament, as foreseen by Article 189c of Parliament,2 as foreseen by Article 189c of
the Treaty establishing the European Union    the Treaty establishing the European Union
Having regard to the opinion of the Having regard to the opinion of the
Economic and Social Committee,3               Economic and Social Committee,3
kWNo
2
  OJNo
3
  OJ No C240/78 of 15.7.1996
 ---pagebreak---   ORIGINAL TEXT                                                  AMENDED TEXT
  Having regard to the opinion of the Having regard to the opinion of the
  Committee of the Regions4;                                   Committee of the Regions4;
  Whereas on 29 October 1990 the Council Whereas on 29 October 1990 the Council
  set an objective of the stabilisation of total set an objective of the stabilisation of total
  C02 emissions by the year 2000 at the 1990 C02 emissions by the year 2000 at the 1990
 level in the Community as a whole;                            level in the Community as a whole;
 Whereas Article          130r of the Treaty Whereas Article                       130r of the Treaty
 stipulates that one objective of the action of stipulates that one objective of the action of
 the Community relating to the environment the Community relating to the environment
 shall be to ensure a prudent and rational shall be to ensure a prudent and rational
 utilisation of natural resources; whereas the utilisation of natural resources; whereas the
power generation industry is responsible for power generation industry is responsible for
 30% and the natural gas sector for 18% of 30% and the natural gas sector for 18% of
the C02 emissions in the Community5;                           the C02 emissions in the Community5;
Whereas on the 24 June 1993 the Council of Whereas on the 24 June 1993 the Council of
Minister adopted a monitoring mechanism Minister adopted a monitoring mechanism
for C02 emissions and other greenhouse for C02 emissions and other greenhouse
                                                              gases6,
"OJNo.C337/41of 11.11.1996
5
  A Viewtothe Future, Commission of the European Communities, September 1992.
6
 O.J. No. L167 of 9.7.93
 ---pagebreak--- ORIGINAL TEXT                                     AMENDED TEXT
Whereas, given the transnational nature of Whereas, given the Commission proposals
C02 emissions, the introduction of rational for        an   Internal  Energy     Market,    the
planning techniques in the gas and electricity introduction of rational planning techniques
distribution sectors can only be satisfactorily in the gas and electricity distribution sectors
implemented at the level of Member States; can only be satisfactorily implemented at the
and whereas, in application of the principle level of Member States; and whereas, in
of subsidiarity as set out in Art. 3b of the application of the principle of subsidiarity as
Treaty      establishing     the     European set out in Art. 3b of the Treaty establishing
Community, what is proposed by the the European Community, what is proposed
adoption of the present Directive is the by the adoption of the present Directive is
establishment of common measures to be the establishment of common measures to
applied by all Member States, while leaving be applied by all Member States, while
to each Member State theflexibilityto adapt leaving to each Member State the flexibility
them to the peculiarities of its energy sector. to adapt them to the peculiarities of its
                                                energy sector.
                                                Whereas the Commission's White Paper
                                                'Growth, Competitiveness, Employment.
                                                The Challenges and Ways Forward into the
                                                21st Century', has emphasised the urgent
                                                need to improve European competitiveness;
                                                Whereas the Commission's White Paper
                                                'An Energy Policy for the European Union'
                                                states that the import dependency, currently
                                                close to half of gross consumption, could
                                                move towards three quarters by 2020;
Whereas in its Resolution of 15 January Whereas in its Resolution of 15 January
1985 on the improvement of energy saving        1985 on the improvement of energy saving
programmes in the Member States, the programmes in the Member States, the
Council invited the latter to pursue and Council invited the latter to pursue and
 ---pagebreak--- ORIGINAL TEXT                                          AMENDED TEXT
where necessary increase their efforts to where necessary increase their efforts to
promote the more rational use of energy by promote the more rational use of energy by
the further development               of integrated the further development          of integrated
energy saving policies;7                             energy saving policies;7
Whereas in its Resolution of 16 September Whereas in its Resolution of 16 September
 1986      the     Council        adopted for   the   1986    the    Council    adopted    for  the
Community the objective of achieving a Community the objective of achieving a
more rational use of energy through more rational use of energy through
improved energy efficiency and that the improved energy efficiency and that the
efficiency      of final demand should be efficiency               of final demand should be
improved by at least 20% by 1995;8                   improved by at least 20% by 1995;8 and
                                                     whereas this target has not been achieved
                                                     and     so   requires   greater   efforts  and
                                                     effectiveness by legislative actions;
Whereas improved energy efficiency will Whereas improved energy efficiency will
impact positively on both the security of impact positively on both the security of
energy supplies and the environment which energy supplies and the environment which
are global in nature, a high level of are global in nature, a high level of
international co-operation is desirable to international co-operation is desirable to
produce the most positive results;                   produce the most positive results;
 Whereas the relationship between the Whereas it is essential, in order to promote
 electricity and gas distribution companies rational energy use and improve energy
 and the final consumer provides an ideal efficiency, to change the traditional role of
 opportunity for the companies to influence gas and electricity distributors which is to
 the energy efficiency investment decision of sell energy products by endowing them with
 the consumers;                                       the role of providers of energy services;
 7
   OJ No. C 020, 22.1.1985, p. 29
   8
     OJ No. C 241,25.9.1986, p. 3
                                                    (,
 ---pagebreak--- ORIGINAL TEXT                                             AMENDED TEXT
                                                       Whereas, to that end, the Member States
                                                        must, on the one hand, perfect mechanisms
                                                        making it possible to dissociate the volume
                                                        of product sales (electricity and gas) and
                                                        profits, and, on the other, bring about the
                                                        separation of the different activities in the
                                                        energy chain, viz. fuel supply, production,
                                                        transport and distribution of electricity;
Whereas all classes of electricity and gas Whereas all classes of electricity and gas
 consumers, including residential consumers, consumers, including residential consumers,
 will benefit directly from a more rational will benefit directly from a more rational
 planning process by the distribution utilities;        planning process by the distribution utilities;
 Whereas the Council at its meeting of 5 June Whereas the Council at its meeting of 5 June
  1989 decided on the establishment of a                 1989 decided on the establishment of a
 Community              action     programme       for Community         action    programme         for
 improving the efficiency of electricity use9;          improving the efficiency of electricity use9;
Whereas the Council on the 28 October Whereas the Council on the 28 October
 1991       adopted        a     Community    energy    1991     adopted    a   Community        energy
efficiency programme (SAVE)10 aimed at efficiency programme (SAVE)10 aimed at
strengthening                 energy       efficiency strengthening           energy         efficiency
infrastructures within the Community.                  infrastructures within the Community.
  ' O.J. L157 of 9.6.1989 p.32-34
  J0
    OJ.L307of8.11.91
 ---pagebreak--- ORIGINAL TEXT                                  AMENDED TEXT
Whereas the Council and the Parliament Whereas the Council and the Parliament
have established a Fourth Framework have established a Fourth Framework
Programme1 ^or actions in technological Programme11 for actions in technological
research, development and demonstration research, development and demonstration
and that Integrated Resource Planning and that Integrated Resource Planning
constitutes an important instrument for the constitutes an important instrument for the
use     and      promotion   of new   energy use   and   promotion      of new   energy
technologies           that the   Framework technologies     that     the    Framework
Programme will establish,                     Programme will establish,
HAS ADOPTED THIS DIRECTIVE:                   HAS ADOPTED THIS DIRECTIVE:
   O.J.L 334 of 22.12.94
                                            i
 ---pagebreak--- ORIGINAL TEXT                                         AMENDED TEXT
                      Article 1                                          Article 1
The purpose of this Directive is to The purpose of this Directive is to
contribute to the Community objective of contribute to the Community objective of
stabilising carbon dioxide emissions by the stabilising carbon dioxide emissions by the
year 2000 at the 1990 level in the year 2000 at the 1990 level in the
Community as a whole while at the same Community as a whole while at the same
time improving the competitiveness of the time improving the competitiveness of the
Community economy by improving end-use Community economy by improving end-use
efficiency     in   the   electricity    and    gas efficiency    in   the   electricity   and    gas
distribution sectors through the introduction distribution sectors through the introduction
of more rational planning techniques. These of more rational planning techniques. These
techniques      (hereinafter    referred    to   as techniques       shall   evaluate     investment
Integrated Resource Planning) shall evaluate opportunities in energy supply and energy
investment opportunities in energy supply demand reduction (including Demand Side
and energy demand reduction on an equal Management and Combined Heat and
economic basis.                                      Power) on an equal economic basis.
                     Article 2                                          Ar tide 2
Member States shall take the following steps Member States shall take the following steps
to promote, through a framework of to promote, through a framework of
measures, the use of integrated resource measures, the increased use of rational
planning as a tool for a more rational planning techniques by electricity and gas
approach by electricity and gas distribution distribution/supply            companies      in   their
companies to the problem of meeting future approach to the problem of meeting future
energy demand:                                      energy services demand:
a)        establish     procedures       whereby a)          establish     procedures       whereby
          electricity   and    gas    distribution           electricity           and           gas
          companies       periodically     present           distribution/supply         companies
 ---pagebreak--- ORIGINAL TEXT                                   AMENDED TEXT
      integrated resource plans to the              periodically      present      to    the
      competent     authorities     to    be        competent       authorities      to   be
      determined by the Member States.              determined by the Member States a
      The integrated resource plan shall            strategic development plan showing
      evaluate all resource alternatives            how they will meet future demand
      (including        demand          side        requirements.        This       resource
      management) on an equal economic              selection plan shall evaluate all
      basis.                                        resource     alternatives     (including
                                                    demand side management) on an
                                                    equal economic basis.
b)    examine whether the economic b)               examine whether the economic
      energy      efficiency      measures          energy       efficiency        measures
      identified  by     the     integrated         identified by (delete) the strategic
      resource plan are undertaken.                 development plan are undertaken.
c)    review existing legislation in this c)        review existing legislation in this
      area to ensure that mechanisms are            area to ensure that mechanisms are
      established which permit electricity          established which:
      and gas distribution companies to             1.   permit     electricity   and    gas
      recover expenditure on energy                 distribution/supply companies to
      efficiency programmes provided to             sell   energy-saving       services   to
      consumers.      Such    mechanisms            customers;
      should ensure that        distribution        2. do not adversely affect the
      companies       which      undertake          competitive position of electricity
      demand-side             management            and gas in relation to other energy
      programmes are not net revenue                sources falling outside the scope of
      losers.                                       this directive;
                                                    Such mechanisms should provide
                                                    an incentive for distribution/supply
                                                    companies, or other bodies, to
                                             1P
 ---pagebreak--- ORIGINAL TEXT                                     AMENDED TEXT
                                                      utilise   cost     effective      rational
                                                      planning       techniques        through
                                                      decoupling       profits    from      sales
                                                      volumes;
d)    encourage      electricity    and     gas d)    encourage       electricity    and     gas
      distribution companies to:                      distribution companies to:
                                                                   provide energy services
                                                                   that meet the needs of
                                                                    heat, light and power
                                                                    at the lowest cost to
                                                                    the customers;
                                                                    ensure that customers
                                                                    have clearly identified
                                                                    costings of energy and
                                                                    energy              services
                                                                    provision;
                    set up comprehensive                            set up comprehensive
                    information                                     information
                    programmes aimed at                             programmes aimed at
                    informing      consumers                        informing        customers
                    on     rational     energy                      about rational energy
                    efficiency choices;                             efficiency services;
                    provide,             where                      provide,              where
                    necessary, incentives to                        necessary, incentives to
                    consumers to carry out                          customers to carry out
                    energy           efficiency                     energy            efficiency
                    investments;                                   investments        such as
                                                                   building insulation;
                    set    up    demand-side                        set    up     demand-side
                    management                                     management
                    programmes        targeted                     programmes          targeted
                                               11
 ---pagebreak--- ORIGINAL TEXT                              AMENDED TEXT
              at low income energy                    at low income energy
              consumers who spend                     customers who spend a
              a       disproportionate                disproportionate
              amount        of    their                amount        of      their
              disposable income on                     disposable income on
              energy;                                  energy. Where such
                                                       programmes          might
                                                       prove of limited value
                                                      to    distribution/supply
                                                       companies it should be
                                                      ensured      that    social
                                                       costs are not paid for
                                                       by      the        service
                                                      providers, so that there
                                                       are no cross-subsidies;
              invest     in     energy                invest      in      energy
              efficiency through the                  efficiency through the
              creation of subsidiaries                creation of subsidiaries
              offering    third  party                offering     third    party
              financing facilities to                 financing facilities to
              consumers, or support                   customers, or support
              the efforts of existing                 the efforts of existing
              third party financing                   third party financing
              companies;                              companies;
                                                      encourage                the
                                                      establishment             of
                                                      branches           offering
                                                      consumers       financing
                                                      mechanisms        through
                                                      the    intervention       of
                                                      third     parties       and
                                                      support the efforts of
                                        01
 ---pagebreak--- ORIGINAL TEXT                                    AMENDED TEXT
                                                                      existing      companies
                                                                      operating that mode of
                                                                      financing;
e)      promote the integration of Demand e)            promote the integration of Demand
Side Management options into capacity                   Side Management and Demand
tendering procedures in the distribution                Side Bidding options into capacity
sector where these exist.                               tendering/contracting       procedures
                                                        in     the   electricity    and    gas
                                                        distribution/supply     sector  where
                                                        these exist.
                  Article 3                                        Article 3
The Member States will co-operate with the The Member States will co-operate with the
Commission in carrying out reviews, every Commission in carrying out reviews, every
two years for the next eight years, of the two years for the next eight years, of the
results of the measures taken on the basis of results of the measures taken on the basis of
this Directive.                                this Directive.
                  Article 4                                        Article 4
 1.      The Member States shall bring into     1.      The Member States shall bring into
         force the provisions necessary to              force the provisions necessary to
         comply with this Directive not later           comply with this Directive not later
         than                   They    shall           than                     They     shall
         immediately        inform        the           immediately          inform        the
         Commission of these measures.                  Commission of these measures.
         When Member States adopt these                 When Member States adopt these
         provisions, these shall contain a              provisions, these shall contain a
                                              lb
 ---pagebreak--- ORIGINAL TEXT                                  AMENDED TEXT
        reference to this Directive or shall          reference to this Directive or shall
        be accompanied by such reference              be accompanied by such reference
        at the time        of their  official         at the time        of their  official
        publication. The procedure for such           publication. The procedure for such
        reference shall be adopted by                 reference shall be adopted by
        Member States.                                Member States.
2.      Member States shall communicate 2.            Member States shall communicate
        to the Commission the texts of the            to the Commission the texts of the
        provisions of national law which              provisions of national law which
        they adopt in the field of governed           they adopt in the field of governed
        by this Directive.                            by this Directive.
                  Article 5                                     Article 5
This Directive is addressed to the Member This Directive is addressed to the Member
States.                                       States.
Done at Brussels,                             Done at Brussels,
                                              fl
 ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(97) 69 final
                                              DOCUMENTS
EN                                                                        12 10
                                    Catalogue number : CB-CO-97-060-EN-C
                                                              ISBN 92-78-16159-4
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