CELEX: 51973PC2245
Language: en
Date: 1974-01-09
Title: PROPOSAL FOR A COUNCIL DIRECTIVE obliging the Member States of the EEC to maintain minimum stocks of fuel (submitted to the Council by the Commission)

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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(73)2245 final
                                                  .      Brussels , 9 January 1974
                                 PROPOSAL FOR A
                             • COUNCIL  DIRECTIVE
                   obliging the Member States of the ESC to
                       maintain minimum stocks of fuel
                 (submitted to the Council by the Commission)
   COM(73)2245 final
 ---pagebreak---                                                           XVIl/269/1/73-E
                       EXPLANATORY MEMORANDUM
The necessity of maintaining stocks of fuel at thermal power stations
A regular and adequate supply of electricity is a fundamental condition
for the existence and development of modern society .     Any interruption
of supplies to the three main sectors of consumption , i.e. industry ,
transport and households , would cause severe disruptions in this society 's
vital activities . If this were to happen , not only would direct consumers
of electricity be affected , but a whole category of users for whom the
utilization of other sources of energy is intimately bound up with the
availability of electricity .
It is therefore necessary to ensure the continuity of electricity supplies
In order to guarantee the availability of electricity , it must be pofesibla
produce it as and when the need arises , since it is not possible to store
electrical ) energy as such .    If all power stations are to be kept
operating uninterruptedly , . it is essential that sufficient quantities of
primary energy be available ( hydraulic and geothermal reserves , cor.l ,
lignite , manufactured gases , natural gas , petroleum products and fissile
materials ).   Certain types of power station could be permanently supplied
with primary energy because they are connected directly to such sources ,
but most power stations are not in such a position and have to build up
fuel stocks .
When there are no national regulations , the stocks held can vary consider­
ably according to the technical and economic factors involved and the
security of supply .   Within the framework of a Community energy policy ,
and in view of the importance of electricity in this policy , there is an
evident need to introduce a system of maintaining fuel stocks at power
stations in accordance with common criteria .
 ---pagebreak---                                    - z -                     XVI 1/269/1/7 3-E
  The stocks of primary energy should be maintained in such a way as to
  ensure the continuity of electricity output and to enable the operators
  to have immediate access to it .   That is , the stocks should as a rule be
  held in situ at the power station . Apart from the safety aspect , this
  would have the advantage of relieving a considerable part of the burden
  on transport should a supply crisis occur .    This is clearly demonstrated
  when' one considers that in 1972 , for example , in the enlarged Community ,
  35-3% of all the heavy fuel oil and 38% of all the coal was accounted
  for by the power stations .
. Effects of the structure of primary energy supplies on electricity
  generation in the Community
  Water power , geothermal energy and manufactured gases are used as sources
  of energy by power stations near the places of production or extraction ,
  and are therefore a permanent source of supply , so that in these cases
  stocks need not be kept in reserve .
  Lignite can be added to this list of primary energy sources , since for
  technical and economic reasons there can be no question of storing it .
  For these reasons , storage should be confined to petroleum products , coal ,
  fissile materials and natural gas .
  Natural gas is not stored at power stations , since storage , whether in
  gaseous or in liquid form , would involve a great deal of capital expenditure .
  Moreover , this fuel , when derived from deposits in Community territory , is
  carried exclusively in pipelines ^    its transport is thus relatively safe .
  In view of storage difficulties and the permanent link-up between the place
  of production and the place of consumption , natural gas deposits themselves
  can be considered as part of the power stations' stocks , provided that the
  delivery of sufficient quantities can be guaranteed .
    73 million tonnes
  2
    106 million tce
 ---pagebreak---                                       - 3 -                 X7II/269/1 /73-E
    By their very nature , nuclear power stations generally have sufficient
    stocks of fuel to cover periods much longer than those envisaged
    ( see point 3 )«
    Stockpiling measures would thus chiefly concern petroleum products and
    coal .
3 . Quantities of fuel to be stockpiled at thermal power stations
    The quantities of fuel stockpiled at power stations must be sufficient to ,
    withstand a supply crisis , particularly in the oil sector . In the
    determination of these quantities , a compromise must be found between
    safety considerations and the economically acceptable cost of the operation .
    In this context certain technical problems and environmental questions
    must also be taken into account .
    Given these conditions , the reserves of fuel held bj electricity producers
    must be sufficient to maintain electricity supplies for a period of 50 days .
    If these reserves seem rather small to cope with a possible interruption
    of oil supplies , they should nevertheless be adequate having regard to the
    obligation on oil importers to hold three months' stocks ( Council Directive
    of I9.i2.i972 ).
4 . Place where stocks should be kept
    As a general rule , stocks should be held in situ at power stations .  If
    a generating undertaking has a number of power stations , it can decide how
    to distribute stocks among the individual stations as long as supplies of
    electricity can be guaranteed for the period envisaged in point }>.   The
    evening-up of stocks as between power stations belonging to different
    undertakings can be considered .
 ---pagebreak---                                      τ 4 -                 XVI 1/269/1/7 3-E
                                     Ρ
5 . Categories of utilities affected by these stockpiling arrangements
    Eighty per cent of the enlarged Community 's electrical energy needs are
    met by public utilities , and the rest by private industrial generators .
    The public utilities supply three sectors of consumption :   industry ,
    transport and households , industrial plants supply electricity either
    entirely or partially for their own needs , although they are generally
    connected to the public grid , with which they maintain exchanges .
    Because of the close interconnection of public and private systems , the
    importance from the public point of view of maintaining supplies of fuel
    to the private plants , and the effects which a failure of these supplies
    could have on the demands made on the public utilities , it has proved
    necessary to include both categories in the projected system of storage .
6 . Application and supervision of the stockpiling arrangements
    Stocks should be built up as quickly as possible , and at the latest by
    1 January 1976 .  To ensure the application of this measure , the Member
    States should institute a system of supervision .  For facility of
    implementation , the system of regular supervision could be restricted to
    those power stations with an installed capacity of at least 100 MW .    Where
    stocks were transferred for evening-out purposes between the power stations
    of one or more producers , the latter would have to prove that they could
                                  I
    achieve the target shown in point 3 «
                                                                 • »jl(» •
 ---pagebreak---                                                             XVI 1/269/1/73-E
                     PROPOSAL FOR A COUNCIL DIRECTIVE
                 obliging the Member States of the EEC to
                 maintain minimum stocks of fuel
THE COUNCIL CSP TEE EUROPEAN COMMUNITIES ,
                                                                                /
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 103 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 5
Whereas the implementation of a common energy policy is one of the objectives
that the Communities have set themselves , . and whereas it is the responsibility
of the Commission to propose the necessary measures ;
Whereas a regular and adequate supply of electricity is a fundamental
condition for the existence and development of modern society , and that any
interruption of electricity supplies would cause serious disruptions in the
vital activities of the Community ;
Whereas in order to guarantee the availability of such supplies , it must be
possible to  produce electricity as and when the demand arises ;
Whereas the fundamental condition for the continuous operation of power
stations is the possession of sufficient quantities of primary energy ;
Whereas crises of supply may occur unexpectedly in the case of certain types
of primary energy   and it is therefore essential to take the necessary
measures to alleviate the effects of such shortages ;
 ---pagebreak---                                     - 2 -                 XVI 1/269/1/73-E
Whereas it is necessary to reinforce security of supply to power stations by
establishing and maintaining minimum stocks of fuel thereat s
                          i
BAS ADOPTED THIS DIRECTIVE :
                                  Article 1
The Member States shall take all appropriate measures by way of lav;, .
regulation or administrative action to oblige electricity producers to
maintain minimum level of stocks of fuel at their thermal power stations ,
which level shall be sufficient to ensure foreseeable electricity supplies
for a period of 50 days .
                                  Article 2
This obligation to maintain stocks shall apply to both public generating
stations and private industrial generators .
This obligation does not apply to electrical power stations fired by
manufactured gases , or by industrial or other waste .
Stocks shall be held in situ at the power station , or at a place directly
linked thereto . The use of public highways and public means of transport for
connecting the power station with the place of storage shall not be taken
into account .
In the case of power stations fired by natural gas or lignite , the deposit
from which the station is supplied may be considered as its own stocks , '
provided there is a guarantee that sufficient quantities will be delivered
to ensure foreseeable electricity supplies as laid down in Article l t even
in the event of difficulties in maintaining fuel supplies to power stations .
 ---pagebreak---                                         - 3 -                   XVI 1/269/1/73-E
             (
4 . The quantities of fuel to be held at each thermal power station shall be
    determined by the electricity producers in the light of the possibilities
    offered by the transport and interconnection network .
    The electricity producers may form themselves into groups in order to
    apportion fuel stocks among their power stations , provided they can guarantee
    the continuity of foreseeable electricity supplies as laid down in Article 1 .
           /
                                      Article 3
1 . Only power stations with an installed capacity of at least 100 m shall be
    subject to regular supervision of stocks .
2 . The Member States shall communicate to the Commission on 1 April and 1 October
    of each year a statement of the stocks held at the power stations , speoifying
    the stocks necessaiyto ensure continuity of foreseeable electricity supplies
  ■ as laid down in Article 1 .   Such communications shall be made not later than
    1 June and 1 December of each year .
3 - In order to enable the Commission to assess the supply situation , the Member
    States shall , in accordance with procedures laid down by the Commission , make
    the communications provided for in paragraph 2 within shorter time-limits or
    in respect of different periods .
                                     Article 4
    If difficulties arise as regards the supplyingof fuel to thermal power stations ,
    the Commission shall at the request of a Member State or on its own initiative ,
    arrange consultations between the Member States .
    Save in cases of special urgency or of satisfying small local needs , the
    Member States shall refrain , before the consultations provided for above take
    place , from drawing ori stocks to such an extent as to reduce them below the
    compulsory minimum .
 ---pagebreak---                                       - 4 -                  XVIl/269/1/73-E
The Member States shall inform the Commission of all drawings on stocks ,
and shall notify as soon as possible :
a ) the date on which the stocks fell bo low the compulsory minimum}
b ) the reasons for such drawings j
o ) any measures taken to build up stocks again ;
                                                        \
d ) if possible , the probable trend of stocle during the period in which
    they will be below the compulsory minimum ?
                                    Article 5
Stocks shall be built up as soon as. possible after the date of the
notification of this Directive , in accordance with the provisions of this
Directive , and at the latest on 1 January 191& . The Member States shall
inform the Commission of the meaBures taken to this end .
                                    Article 6
This Directive is addressed to the Member States .
Done at Brussels ,
                                                      For the Council
                                                       The President