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) 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. ORIGINAL TEXT AMENDED TEXT Proposal for a COUNCIL DIRECTIVE Proposal for a 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 Parliament,2 as foreseen by Article 189c of In cooperation with the European 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 2OJNo 3 OJ No C240/78 of 15. 7. 1996 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 View to the Future, Commission of the European Communities, September 1992. 6O. J. No. L167 of 9. 7. 93 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 the flexibility to 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 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 (, 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 J0OJ. L307of8. 11. 91 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 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 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 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 programmes aimed at informing consumers on rational energy efficiency choices; provide, where necessary, incentives to consumers to carry out energy efficiency investments; information programmes aimed at informing customers about rational energy efficiency services; provide, where necessary, incentives to customers to carry out energy efficiency investments such as building insulation; set up demand-side set up demand-side management management programmes targeted programmes targeted 11 ORIGINAL TEXT AMENDED TEXT at low income energy customers who spend a disproportionate amount of their disposable income on 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 efficiency through the creation of subsidiaries offering third party financing facilities to customers, or support the efforts of existing third party financing companies; encourage establishment the of branches offering consumers financing mechanisms through the intervention of third parties and support the efforts of at low income energy consumers who spend a disproportionate amount of their disposable income on energy; invest in energy efficiency through the creation of subsidiaries offering third party financing facilities to consumers, or support the efforts of existing third party financing companies; 01 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 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 ISSN 0254-1475 COM(97) 69 final DOCUMENTS EN 12 10 Catalogue number : CB-CO-97-060-EN-C ISBN 92-78-16159-4 Office for Official Publications of the European Communities L-2985 Luxembourg 4$