29. 6. 96 Official Journal of the European Communities No L 161/147 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 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 129d thereof, : Having regard to the proposal from the Commission ('), Having regard to the opinion of the Economic and Social Committee (3, Having regard to the opinion of the Committee of the Regions (%), Acting in accordance with the procedure laid down in Article 189b of the Treaty () in the light of the joint text approved on 4 April 1996 by the Conciliation Committee, 1. Whereas, by its very nature, energy must be produced, distributed and used as rationally as possible with a view to sustainable development and whereas the capacity to develop renewable energy resources in the regions concerned must in no way be hindered or held back; 2. Whereas the establishment and development of trans-European energy networks contribute towards attaining major objectives of the Community, such as completion of the internal market and the strengthe- ning of economic and social cohesion; 3. Whereas the establishment and development of trans-European energy networks throughout the territory of the Community also have the specific objectives of increasing the reliability and security of the Community’s energy supplies and of allowing balanced operation of the internal energy market and an improvement in the Community’s competitive- ness; 4. Whereas efforts must be made, in the planning, development and construction of the links currently missing from the trans-European networks for the transport of energy products, to ensure that these links are as short as possible and optimally sited, () OJ No C 72, 10. 3. 1994, p. 10 and OJ No C 205, 10. 8. 1995, 6 Q] %_] No C 195, 18. 7. 1994, p. 33. () OJ No C 217, 6. 8. 1994, p. 26. (*) Opinion of the European Parliament of 18 May 1995, (O] No C 151, 19. 6. 1995, p. 228), common position of the Council of 29 June 1995 (O] No C 216, 21. 8. 1995, p. 31) and Deci- sion of the European Parliament of 26 October 1995 (O] No C 308, 20. 11. 1995, p. 113). Decision of the Council of 7 May 1996 and Decision of the European Parliament of 21 May 1996 (not yet published in the Official Journal). taking economic and environmental factors into account; 5. Whereas, in order to contribute towards attaining the said objectives, the development of interconnections of electricity and natural gas transmission networks in the Community must be accelerated, particularly in the regions where improvements to the networks are necessary or in regions which are still isolated, and with the third countries in Europe and in the Mediterranean region; + 6. Whereas, in order to complete the internal market in energy, measures must be incorporated in an overall energy strategy which not only specifies the main criteria and objectives of the Community in this field but also defines more particularly the conditions for liberalizing the market in energy products; 7. Whereas the interconnection of electricity and gas networks with third countries which are signatories to the Energy Charter Treaty () must be carried out in accordance with that Treaty; 8. Whereas action by the Community to establish guidelines on trans-European energy networks is necessary, subject to the principle of subsidiarity; 9. Whereas, in order to develop these networks on a Community-wide scale, it is necessary to identify projects of common interest and to create a more favourable context for the completion and inter- operability of these networks; 10. Whereas projects of common interest must meet the said objectives and form part of the said priorities; whereas only those projects should be considered which display potential economic viability, taking into account economic, social and technical factors; whereas, in this context, the concept of viability includes not only the financial profitability of the projects but also other considerations such as the reliability and security of energy supplies, the stren- gthening of economic and social cohesion and protection of the environment in the Community; 11. Whereas private capital is used and will continue to be used in a majority of projects in the energy sector; whereas this means that the identification of projects of common interest will have to take particular account of the need to avoid distortions of competi- tion; () OJ No L 380, 31. 12. 1994, p. 24.