Document ID: 32003D1229

Decision No 1229/2003/EC of the European Parliament and of the Council
of 26 June 2003
laying down a series of guidelines for trans-European energy networks and repealing Decision No 1254/96/EC
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community and in particular the first paragraph of Article 156 thereof,
Having regard to the proposal from the Commission(1),
Having regard to the Opinion of the European Economic and Social Committee(2),
Having regard to the Opinion of the Committee of the Regions(3),
Acting in accordance with the procedure laid down in Article 251 of the Treaty(4),
Whereas:
(1) Since the adoption of Decision No 1254/96/EC of the European Parliament and of the Council of 5 June 1996 laying down a series of guidelines for trans-European energy networks(5), the need has arisen to incorporate new priorities, to highlight the projects which are particularly important, to update the list of projects, and to adapt the procedure used for identifying projects.
(2) The new priorities stem from the creation of a more open and competitive internal energy market, as a result of the implementation of Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity(6) and of Directive 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas(7). They follow the conclusions of the Stockholm European Council of March 2001 concerning the development of the infrastructures needed for the operation of the energy market. A special effort should be undertaken to achieve the objective of making greater use of renewable energy sources as a contribution to furthering a sustainable development policy.
(3) As a rule the construction and maintenance of energy infrastructure should be subject to market principles. This is also in line with the Commission proposals for the completion of the internal market in energy and the common rules on competition law which aim at the creation of a more open and competitive internal energy market. Community financial aid for construction and maintenance should therefore remain highly exceptional. These exceptions should be duly justified.
(4) Energy infrastructure should be constructed and maintained so as to enable the internal energy market to operate efficiently, without detracting from strategic and, where appropriate, universal service criteria. The priorities also stem from the growing importance of the trans European energy networks for diversifying the Community's gas supplies, incorporating the candidate countries' energy networks, and ensuring the coordinated operation of the electricity grids in Europe and the Mediterranean and Black Sea basins.
(5) Among the projects relating to trans-European energy networks, it is necessary to highlight the priority projects, which are very important for the operation of the internal energy market or the security of energy supply.
(6) It is necessary to adapt the procedure for identifying projects relating to trans-European energy networks in order to ensure the harmonious application of Council Regulation (EC) No 2236/95 of 18 September 1995 laying down general rules for the granting of Community financial aid in the field of trans-European networks(8).
(7) The procedure for identifying projects relating to trans-European energy networks should be adapted by means of action at two levels: a first level identifying a restricted number of thematically defined projects of common interest, and a second level describing projects in detail, referred to as specifications.
(8) Since the project specifications are liable to change, they are given indicatively. The Commission should therefore continue to be empowered to update them. Since the project may have considerable political and economic implications, it is important to find the appropriate balance between legislative oversight and flexibility in determining projects that merit potential Community support.
(9) The measures necessary for the implementation of this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission(9).
(10) The identification of projects of common interest, their specifications and priority projects should be without prejudice to the results of the environmental impact assessment of the projects and of the plans or programmes.
(11) The time limit within which the Commission has to draw up the periodical report on the implementation of the guidelines under Decision No 1254/96/EC should be extended since, in pursuance of Regulation (EC) No 2236/95, it is to submit an annual report which contains information on the progress of projects, and in particular that of priority projects.
(12) Given the scope of the amendments that are being made to Decision No 1254/96/EC, it is desirable, for reasons of clarity and rationalisation, that the provisions in question should be recast,
HAVE ADOPTED THIS DECISION:
Article 1
Purpose
This Decision defines the nature and scope of Community action to establish guidelines for trans-European energy networks. It establishes a series of guidelines covering the objectives, priorities and broad lines of action by the Community in respect of trans-European energy networks. These guidelines identify projects of common interest, including those which have priority, among trans European electricity and natural gas networks.
Article 2
Scope
This Decision applies:
1. in electricity networks, to:
(a) all high voltage lines, excluding those of distribution networks, and to submarine links, provided that this infrastructure is used for inter regional or international transmission/connection;
(b) any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems;
2. in natural gas networks, to:
(a) high pressure gas pipelines, excluding those of distribution networks, making it possible to supply regions of the Community from internal or external sources;
(b) underground storage facilities connected to the abovementioned high pressure gas pipelines;
(c) reception, storage and regaseification facilities for liquefied natural gas (LNG) and also gas carriers according to the capacities to be supplied;
(d) any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems.
Article 3
Objectives
The Community shall promote the interconnection, interoperability and development of trans-European energy networks and access to such networks in accordance with current Community law, with the aim of:
(a) encouraging effective operation of the internal market in general and of the internal energy market in particular, while encouraging the rational production, distribution and utilisation of energy resources and the development and connection of renewable energy resources, so as to reduce the cost of energy to the consumer and contribute to the diversification of energy sources;
(b) facilitating the development and reducing the isolation of the less favoured and island regions of the Community, thereby helping to strengthen economic and social cohesion;
(c) reinforcing the security of energy supplies, for example by strengthening relations with third countries in the energy sector in their mutual interest, in particular in the framework of the Energy Charter Treaty and cooperation agreements concluded by the Community.
Article 4
Priorities
The priorities for action by the Community on trans-European energy networks shall be compatible with sustainable development and shall be as follows:
1. for both electricity and gas networks:
(a) adapting and developing the energy networks in support of the operation of the internal energy market and, in particular, solving the problems of bottlenecks (in particular transfrontier ones), congestion and missing links, and taking account of the needs arising from the functioning of the internal market for electricity and natural gas and the enlargement of the European Community;
(b) establishing energy networks in island, isolated, peripheral and ultraperipheral regions while promoting the diversification of energy sources and the use of renewable energy sources, together with the connection of those networks, where necessary;
2. for electricity networks:
(a) adapting and developing networks to facilitate the integration/connection of renewable energy production;
(b) interoperability of electricity networks within the European Community with those in the accession candidate countries and other countries in Europe and the Mediterranean and Black Sea basins;
3. for gas networks:
the development of gas networks in order to meet the European Community's natural gas consumption needs, the control of its gas supply systems and the interoperability of gas networks with those in third countries in Europe and the Mediterranean and Black Sea basins, and the diversification of natural gas sources and supply routes.
Article 5
Lines of action
The broad lines of action by the Community on trans-European energy networks shall be:
(a) the identification of projects of common interest;
(b) the creation of a more favourable context for development of these networks, in accordance with Article 156(1), of the Treaty.
Article 6
Additional criteria for projects of common interest
1. The generic criteria to be applied when a decision is taken on modifications, specifications or applications for updating projects of common interest are the following:
(a) the projects fall within the scope of Article 2;
(b) the projects correspond to the objectives and priorities set out in Articles 3 and 4 respectively;
(c) the projects display potential economic viability.
Projects of common interest which relate to the territory of a Member State shall require the approval of the Member State concerned.
2. The additional criteria for identifying projects of common interest are set out in Annex II.
3. Any modification which changes the description of the additional criteria for projects of common interest as it appears in Annex II, including substantial changes affecting these criteria, such as in respect of entirely new projects or new country destinations, shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.
4. Only those projects listed in Annex III which fulfil the criteria referred to in paragraphs 1 and 2 shall be eligible for Community financial aid provided under Regulation (EC) No 2236/95.
5. The indicative project specifications, including, where appropriate, their geographical description, are set out in Annex III. These specifications shall be updated in accordance with the procedure referred to in Article 10(2). Updates are of a technical nature and must be limited to technical changes of projects, the need to modify for example a particular part of the specified routing, or a limited adaptation of the location of the project.
6. Member States shall take any measures they consider necessary to facilitate and speed up the completion of projects of common interest and to minimise delays while complying with Community law and international conventions on the environment. In particular, the necessary authorisation procedures shall be completed rapidly.
7. Where parts of projects of common interest are situated within the territory of third countries, the Commission may, by agreement with the Member States concerned, put forward proposals, where appropriate within the framework of the management of the agreements between the Community and those third countries and in accordance with the Energy Charter Treaty in respect of third countries which are signatories to that Treaty, for the projects also to be recognised as of reciprocal interest by the third countries concerned, in order to facilitate their implementation.
8. The evaluation of the economic viability referred to in paragraph 1(c) shall be based upon a cost benefit analysis which shall take account of all costs and benefits, including those in the medium and/or long term, in connection with environmental aspects, security of supply and the contribution to economic and social cohesion.
Article 7
Priority projects
1. Those projects of common interest referred to in Article 6(4) and covered by Annex I shall have priority for the grant of Community financial aid provided under Regulation (EC) No 2236/95. Modifications to Annex I shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.
2. The Member States concerned and the Commission shall endeavour, each within its own sphere of competence, to further the carrying out of the priority projects especially cross border projects.
3. Priority projects shall be compatible with sustainable development and meet the following criteria:
(a) they shall have a significant impact on the competitive operation of the internal market, and/or
(b) they shall strengthen security of supply in the Community.
Article 8
Effects on competition
When projects are considered, an effort shall be made to take into account the effects on competition. Private financing or financing by the economic operators concerned shall be encouraged. Any competitive distortion between the operators on the market shall be avoided, in accordance with the provisions of the Treaty.
Article 9
Restrictions
1. This Decision shall be without prejudice to any financial commitment by a Member State or the Community.
2. This Decision shall be without prejudice to the results of the environmental impact assessment of projects and of the plans or programmes which define the future authorisation framework for such projects. The results of the environmental impact assessments, where such an assessment is requested in accordance with relevant Community legislation, shall be taken into consideration before a decision on the carrying out of the projects is actually taken in accordance with the relevant Community legislation.
Article 10
Committee
1. The Commission shall be assisted by a Committee.
2. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.
The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.
3. The Committee shall adopt its rules of procedure.
Article 11
Report
Every two years the Commission shall draw up a report on the implementation of this Decision, which it shall submit to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. In this report, attention shall also be given to the implementation and progress made in the carrying out of priority projects, as well as the modalities of their financing, especially as regards the contribution of Community funding, which concern cross border connections as mentioned in Annex II, points 1, 2 and 7.
Article 12
This Decision shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
Article 13
Decision No 1254/96/EC is hereby repealed, without prejudice to the obligations of Member States concerning the application of the said Decision. References to Decision No 1254/96/EC shall be construed as references to this Decision.
Article 14
This Decision is addressed to the Member States.
Done at Brussels, 26 June 2003.

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