Category Archives: Security of Supply External Dimension and Enlargement

If it is to achieve its goal of secure, competitive and sustainable energy the EU must involve and cooperate with developed and developing countries, be they producers, transit countries or consumers. For the sake of efficiency and consistency, therefore, the EU and the Member States must speak with one voice on international energy issues. At a time of vulnerability of imports, potential energy crises and uncertainty surrounding future supplies, the EU must make sure that it adopts measures and creates partnerships that guarantee the security of its energy supply. Compliance with the Community energy acquis by the candidate countries is a vital part of the process of their accession to the EU.

Security of supply of electricity

Security of supply of electricity

Outline of the Community (European Union) legislation about Security of supply of electricity

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Security of supply of electricity

Document or Iniciative

Directive 2005/89/EC of the European Parliament and of the Council of 18 January 2006 concerning measures to safeguard security of electricity supply and infrastructure investment.

Summary

Subject matter and scope

This Directive establishes measures aimed at safeguarding security of electricity supply so as to ensure the proper functioning of the EU internal market for electricity, an adequate level of interconnection between Member States, an adequate level of generation capacity and balance between supply and demand.

Member States must define general, transparent and non-discriminatory policies on security of electricity supply compatible with the requirements of a competitive single market for electricity. They must define and publish the role and responsibilities of competent authorities and different players in the market.

When adopting policy implementation measures, Member States must take certain elements into account, in particular the need to:

  • ensure continuity of electricity supplies;
  • study the internal market and the possibilities for cross-border cooperation in relation to security of electricity supply;
  • reduce the long-term effects of growth of electricity demand;
  • introduce a degree of diversity in electricity generation in order to ensure a reasonable balance between different primary fuels;
  • promote energy efficiency and the use of new technologies;
  • continuously renew transmission and distribution networks to maintain performance.

Operational network security

Transmission network operators must set minimum rules and obligations to ensure continuous operation of the transmission and, where appropriate, the distribution network under foreseeable circumstances. Member States may decide that these rules and obligations must be approved by the competent authorities and, where appropriate, also respected by the transmission network operators.

The network operators must set and meet quality of supply and network security performance objectives. Curtailment of supply in emergency situations must be based on predefined criteria and the relevant measures taken in consultation with other transmission system operators concerned.

Balancing supply and demand

The Directive provides for specific measures necessary to maintain the balance between electricity demand and available generation capacity, to avoid Member States taking more interventionist measures which are incompatible with competition. They will need to have a clear policy in place to maintain the balance between supply and demand. In particular Member States need to encourage the establishment of wholesale markets, require network operators to ensure that an appropriate level of generation reserve capacity is maintained, facilitate the development of new generation capacity, or encourage energy conservation and technology for demand management in real time.

Network investment

Investment is crucial for competition and the future security of electricity supply in the EU. Member States must lay down a framework for providing information to network operators which facilitates investment.

Reports

Member States or competent authorities, in cooperation with transmission network operators, must prepare a report on security of supply, as provided for in the Directive on the internal electricity market. This report must contain information on operational network security, projected balance of supply and demand, prospects for security of supply within the medium term and investment intentions of transmission system operators as regards provision of cross-border interconnection capacity.

On the basis of this information, the Commission prepares a report and sends it to the Member States, the competent authorities and the European Regulators Group on Electricity and Gas.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Directive 2005/89/EC 24.2.2006 24.2.2008 OJ L 33, 4.2.2006.

Related Acts

Decision No 1364/2006/EC of the European Parliament and of the Council of 6 September 2006 laying down guidelines for Trans-European energy networks and repealing Decision 96/391/EC and Decision No 1229/2003/EC [OJ L 262, 22.9.2006].

Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC [OJ L 52, 21.2.2004].

Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC [OJ L 176, 15.7.2003].

Regulation (EC) No 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity [OJ L 176, 15.7.2003].

Commission Communication of 20 December 2001 on European energy infrastructure [COM(2001) 775 final – Not published in the Official Journal].
The Commission lays down the first steps towards a Community-wide effort aiming to resolve bottlenecks in connections between neighbouring countries, ensure effective use of existing infrastructure, and in so far as possible, prevent further congestion. It also outlines priority projects of European interest and underlines that infrastructure development is basically a task for the European gas and electricity industry, whereas the role of public authorities is to provide a stable and reliable regulatory framework which provides appropriate incentives, together with the political and where necessary financial support.

Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market [OJ L 283 , 27.10.2001].

Council Regulation (EC) No 736/96 of 22 April 1996 on notifying the Commission of investment projects of interest to the Community in the petroleum, natural gas and electricity sectors [OJ L 102, 25.4.1996].

Green Paper on the security of energy supply

Green Paper on the security of energy supply

Outline of the Community (European Union) legislation about Green Paper on the security of energy supply

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Green Paper on the security of energy supply

The European Commission addresses the main issues relating to Europe’s ever increasing energy dependence: the challenges posed by climate change and the internal energy market, measures relating to the supply of and demand for energy resources, the role of renewable energy and nuclear energy, etc.

Document or Iniciative

Commission Green Paper of 29 November 2000 Towards a European strategy for the security of energy supply [COM(2000) 769 final – Not published in the Official Journal].

Summary

The European Union’s (EU) external energy dependence is constantly increasing. The EU meets 50% of its energy needs through imports and, if no action is taken, this will increase to 70% by 2020 or 2030. This external dependence involves economic, social, ecological and physical risks for the EU. Energy imports account for 6% of total imports and, in geopolitical terms, 45% of oil imports come from the Middle East and 40% of natural gas imports come from Russia. The EU does not yet have all the necessary means to change the international market. This weakness was highlighted by the sharp rise in oil prices at the end of 2000.

One solution recommended by the Green Paper for tackling this problem is to draw up a strategy for security of energy supply aimed at reducing the risks linked to this external dependence.

New challenges

In tackling this problem, the EU will have to face many challenges, and these must be taken into account when drawing up the strategy. The two greatest new challenges are:

  • environmental concerns influencing energy choices, most significantly efforts to combat climate change;
  • the development of the internal market, which has given a new place and a new role to energy demand and could lead to political tensions, e.g. falling prices could undermine efforts to combat climate change. It is up to our societies to find satisfactory compromises.

A European strategy

Nowadays, energy policy has assumed a Community dimension: Member States are interdependent, both with regard to combating climate change and in terms of the completion of the internal market. However, this has not been reflected by new Community powers. The Community is empowered to intervene in several areas, notably in the internal market, harmonisation, environment and taxation.

Nevertheless, the lack of political consensus on a Community energy policy limits the scope for action. It is worth considering whether it would be advantageous to extend Community powers with regard to energy issues to enable the EU to have more control over its energy destiny. It is not a question of proposing a complete strategy for security of supply, but rather of launching a debate on these issues.

A long-term energy strategy

According to the Green Paper, the main objective of an energy strategy should be to ensure, for the well-being of its citizens and for the proper functioning of the economy, the uninterrupted physical availability of energy products on the market at an affordable price for all consumers, whilst respecting environmental concerns and looking towards sustainable development. It is not a question of maximising energy self-sufficiency or minimising dependence, but rather of reducing the risks linked to this dependence. The energy resources that are being used right now must be taken into account in the debate. The EU relies heavily on fossil fuels such as oil (the dominant resource). This is a problem that must be addressed.

The Green Paper outlines a long-term energy strategy in which the EU is to take action in the following areas:

  • Rebalancing its supply policy by taking clear action in favour of a demand policy

There is more room for manoeuvre to address demand than to increase Community supply. An attempt should be made to control the growth of demand, notably by using taxation, for example, to bring about a real change in consumer behaviour.
With regard to supply, priority should be given to combating global warming, for example by promoting new renewable energy sources, using profitable energies to finance their development.

  • Assessing the contribution to be made by nuclear energy in the medium term
    If no action is taken, the contribution of nuclear energy will decrease still further in the future. Whilst assessing the future contribution of nuclear energy, the debate should also look at issues such as global warming, security of supply and sustainable development. Whatever conclusions are drawn, research in the area of safe management of nuclear waste must be actively pursued.
  • Providing a stronger mechanism to build up strategic stocks and to secure new import routes for increasing amounts of oil and gas.

Related Acts

Communication from the Commission to the European Council and the European Parliament of 10 January 2007 – An energy policy for Europe[COM(2007) 1 final -Not published in the Official Journal].

With its new energy policy, the EU is moving towards a low-consumption economy based on more secure, more competitive and more sustainable energy. This new European energy policy focuses, in particular, on measures to guarantee security of energy supply.

Council Directive 2006/67/EC of 24 July 2006 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products (codified version) [Official Journal L 217 of 8 August 2006].

Member States are required to establish and maintain minimum stocks of oil at a level corresponding to at least 90 days average daily internal consumption in the preceding calendar year.

Communication from the Commission of 11 September 2002 – The internal market in energy: Coordinated measures on the security of energy supply [COM(2002) 488 final – Not published in the Official Journal].

The Commission emphasises that the creation of an integrated energy market will make Member States increasingly interdependent and must be accompanied by coordinated measures to guarantee security of oil and gas supplies. These measure must focus, in particular, on harmonising the organisation of oil stocks and promoting their coordinated use (national storage systems, emergency stocks, intervention criteria), harmonising minimum measures for the security of gas supplies (minimum standards, crisis measures, supply contracts) and organising an energy dialogue between producer and consumer countries.

Communication from the Commission of 26 June 2002 to the Council and the European Parliament – Final report on the Green Paper Towards a European strategy for the security of energy supply [COM(2002) 321 final – Not published in the Official Journal].

The Green Paper, published in November 2000, opened a wide debate within the EU on security of supply. This report details the points raised. Most of the stakeholders who gave their opinion on the proposals in the Green Paper (e.g. Member States and NGOs) were in favour of the main thrust of the strategy proposed, namely the emphasis on controlling demand by, for example, promoting greater energy efficiency.
Given that there is almost unanimous agreement on this approach, the EU has already taken action by adopting:

  • Directive 2001/77/EC on electricity production from renewable sources;
  • Directive 2002/91/EC on energy saving in buildings;
  • Directive 2003/30/EC on promoting biofuels;
  • the White Paper to improve management of the transport sector, which accounts for 32% of energy consumption and 28% of total CO2 emissions.

Although the EU has taken steps to promote renewable energy, the action taken so far has proved insufficient.

As regards oil stocks, the EU is, to some degree, dependent on oil resources imported from Non-EU Member Countries. The Commission considers it necessary to increase dialogue between the EU and the producer countries in order to improve market transparency and conclude satisfactory supply agreements. The Commission is looking at a new approach that would guarantee greater stability of oil stocks among the EU’s Member States. The need for strategic gas stocks should also be considered.

Nuclear energy remains an essential part of the debate on security of supply, as the greenhouse gas savings from nuclear energy are equivalent to the emissions from half of the cars on the EU’s roads. Opinions still differ on this form of energy, but the nuclear option remains open. The processing and transportation of radioactive waste is one of the main concerns about nuclear energy. The EU has responded to this by making nuclear safety an important issue in negotiations on the accession of the candidate countries and, in the long term, is planning to introduce new measures for the EU as a whole.

Harmonisation of taxes still meets with some reservations. However, the Barcelona European Council called for the Energy Taxation Directive to be adopted by the end of 2002. It was adopted in 2003.

The internal energy market plays an important role in security of supply, as the legislation establishing it seeks not only to achieve more competitive prices but also to impose public service obligations to ensure that there is no breakdown in energy supply. However, there is a need for a more open market and increased intra-Community trade.

The Commission stresses the fact that progress has been made with regard to security of supply but believes that consideration must be given to a global concept of security of supply covering:

  • long-term preventive action,
  • market surveillance mechanisms,
  • policy instruments,
  • strengthening relations with Non-EU Member Countries.

Convention on Nuclear Safety

Convention on Nuclear Safety

Outline of the Community (European Union) legislation about Convention on Nuclear Safety

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Nuclear energy

Convention on Nuclear Safety

Document or Iniciative

Commission Decision 1999/819/Euratom of 16 November 1999 concerning the accession to the 1994 Convention on Nuclear Safety by the European Atomic Energy Community (Euratom).

Summary

Context

The Convention on Nuclear Safety is an international convention which aims to improve nuclear safety worldwide.

All Member States of the European Union (EU) are party to the Convention. The Community established by the Euratom Treaty shares jurisdiction with Member States in the fields governed by the Convention. The Community acceded to the Convention on 30 January 2000.

Euratom Responsibilities

Euratom does not possess nuclear installations as defined in the Convention. The safety of nuclear installations is the main responsibility of the holder of the corresponding licence from the Member State on whose territory the installation has been set up. The responsibilities of Euratom within the Convention are derived from the provisions in the Treaty (Title II, Chapter 3) dealing with the protection of the health of workers and the general public against the dangers of ionising radiation as confirmed by the Court of Justice (judgment C-29/99).

Objectives

The Convention has three main objectives:

  • to achieve and maintain a high level of nuclear safety through the enhancement of national measures and technical cooperation;
  • to establish and maintain effective defences against radiological hazards in nuclear installations in order to protect people and the environment, etc.;
  • to prevent nuclear accidents and limit their consequences.

The Convention does not give detailed safety standards but represents a commitment to the application of fundamental safety principles for nuclear installations.

Scope

The Convention applies to the safety of fixed civil nuclear power plants including facilities for storage, handling and treatment of radioactive materials that are on the same site and are directly related to the operation of the nuclear power plant.

Implementation

The parties to the Convention are committed to establishing a legislative and regulatory and administrative framework to ensure the safety of nuclear installations which provides for:

  • the establishment of sufficient national safety requirements and regulations;
  • a system for licensing nuclear installations and the prohibition of operating without a licence;
  • a system of inspection and assessment. Comprehensive and systematic assessments should be carried out before the construction and commissioning of an installation and throughout its life;
  • measures to enforce the regulations and the terms of licensing (suspension or revocation of licences, etc.).

The parties must set up an independent regulatory body to grant licenses and to ensure that the regulations are correctly implemented. The duties of this body must be effectively separated from those of any other organisation whose task is to promote or use nuclear energy.

Those responsible for the plants must draw up a strategy prioritising safety and a quality assurance programme to ensure that the requirements are met. Emergency measures must also be put in place, detailing the procedures for informing the relevant authorities, such as hospitals.

Each party to the Convention must submit to the other parties a report on the measures that they have taken to meet the requirements of the Treaty at regular review meetings.

Safety of Installations

The regulatory body is in charge of granting operating licences to nuclear installations. The Convention specifies assessment criteria for each phase in the life of an installation: siting, design and construction, and operation.

In choosing the site, one must consider, inter alia, its effect on the safety of the installation and the effects of the installation on individuals and the environment. Other contracting parties in the vicinity of the site must also be consulted if the installation is likely to have consequences for them.

Regarding design and construction, safety measures must be put in place against the release of radioactive materials and to make sure that the techniques and equipment used are proven by experience or testing, for example.

Authorisation to operate a nuclear installation is based on safety analysis and a commissioning plan. The management of the installation must conform with the regulations established by the national authorities. Programmes to collect and analyse data must also be introduced.

Each installation must also have on-site and off-site emergency plans to protect workers, the general public, the environment, etc. in the case of a radiological emergency.

Organisational arrangements

Parties meet at least once every three years. The parties look at reports on the measures that they have each taken to fulfil the Treaty obligations. The International Atomic Energy Agency (IAEA). provides the secretariat.

Act Entry into force Deadline for transposition in the Member States Official Journal
Decision 1999/819/Euratom

16.11.1999

OJ L 318 of 11.12.1999

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Decision 2004/491/Euratom

1.5.2004

OJ L 172 of 6.5.2004

Related Acts

PROPOSALS

Proposal for a Council Directive (Euratom) setting up a Community framework for nuclear safety [COM(2008) 790 final – Not published in the Official Journal].
This Proposal replaces and updates the Proposal which was presented in September 2004. It aims at establishing a common Community framework to define basic obligations on the safety of nuclear installations whilst strengthening the role of national regulatory bodies. The general objective of the Proposal is to achieve, maintain and continuously improve nuclear safety in the European Union. It also aims at enhancing the role of national regulatory bodies, by ensuring their independence and the appropriate financial and human resources to allow them to fulfil their duties. It will anchor the international principles of nuclear safety arising from the Convention on Nuclear Safety and the International Atomic Energy Agency (IAEA) Safety Fundamentals in Community law, thus giving the European Union its own provisions in this field. For the moment, the Member States and the European Union are only Parties to the IAEA Convention on Nuclear Safety, which is only of a voluntary nature and therefore does not lead to any sanctions in cases of non-compliance.

Its scope includes the design, siting, construction, maintenance, operation and decommissioning of nuclear installations.

It focuses on giving a precise definition of the terms ‘nuclear installations’, ‘nuclear safety’, radioactive material’, ‘decommissioning’, ‘radioactive waste’, ‘spent fuel’, ‘ionising radiation’, ‘regulatory body’, ‘licence’ and ‘new power reactors’.

Member States are still responsible for the legislative and regulatory framework for the safety of nuclear installations. They must ensure the independence of the regulatory body which grants licences and carries out inspections on siting, design, construction, commissioning, operation or decommissioning of nuclear installations.

Moreover, Member States should comply with the obligations and requirements set in the International Atomic Energy Agency Convention on Nuclear Safety, as well as the Agency’s Safety Fundamentals.

The population shall be informed of the procedures and the results of the surveillance activities on nuclear safety. Every three years, Member States must submit a report to the European Commission on the implementation of the directive.

Consultation procedure (CNS/2008/0231)

Proposal for a Council (Euratom) Directive Setting out basic obligations and general principles on the safety of nuclear installations [COM(2003) 32 final – Not published in the Official Journal].

Proposal for a Council Directive (Euratom) on the management of spent nuclear fuel and radioactive waste [COM(2003) 32 final – Non publié au Journal officiel].

DECISIONS

Council Decision of 15 December 2003 amending the Council Decision of 7 December 1998 approving the accession of the European Atomic Energy Community to the Nuclear Safety Convention with regard to the Declaration attached thereto – Not published in the Official Journal].

Council Decision of 23 May 2005, approving the conclusion of the Convention on Early Notification of a Nuclear Accident [COM(2004) 560 final – Not published in the Official Journal].

Council Decision of 23 May 2005, approving the conclusion of the Convention on Assistance in the case of a Nuclear Accident or Radiological Emergency [COM(2004) 560 final – Not published in the Official Journal].

CONVENTION ON NUCLEAR SAFETY

Convention on Nuclear Safety adopted in Vienna on 20 September 1994.

Declaration by the European Atomic Energy Community in accordance with the provisions of Article 30 (4) of the Convention on Nuclear Safety [Official Journal L 318 of 11.12.1999].

REPORTS ON THE IMPLEMENTATION OF THE CONVENTION

Report of 9 October 2001 on the implementation of the obligations of the Convention on Nuclear Safety [COM(2001) 568 final – Not published in the Official Journal].
This is the first Euratom report on the measures taken as a result of the Convention and refers to the health and safety provisions of the Euratom Treaty (Title II, Chapter 3), as well as Community legislation on radiation protection and emergency preparedness, for which Community jurisdiction was declared in Commission Decision 1999/819/Euratom (OJ L 318, 11.12.1999, p. 20). The report was presented at the second review meeting in Vienna in 2002.

Concerning radiation protection, Directive 96/29/Euratom lays down basic standards for the protection of the health of workers and the general public against the dangers arising from ionising radiation. This directive is the central element of the legislation on radiation protection. It lays down, inter alia, the implementation procedure and fundamental principles.

There are two main pieces of European legislation on emergency preparedness. The first, Decision 87/600/Euratom, concerns the early exchange of information between authorities in the event of a radiologicial emergency. The second, Directive 89/618/Euratom, concerns informing the general public about measures to be taken in the event of an emergency.

Euratom also tackles the planned activities to improve safety. The key action ‘Nuclear Fission’ from the 5th Framework Programme for research (1998-2002) is an important framework for activity with the Joint Research Centre (JRC).

Report of 13 October 2004 (pdf ) on the implementation of the obligations under the Convention on Nuclear Safety– 3rd Review meeting of the Contracting Parties [C(2004) 3742 final – Not published in the Official Journal].
This is the second Euroatom report on measures taken as a result of the Convention. It refers to the provisions concerning health protection of the Euratom Treaty (Title II, Chapter 3), and Community legislation in the field of radiation protection and emergency preparedness. Having regard to the new Declaration (Council Decision of 15 December 2003, not published in the Official Journal), the report includes information in line with articles 7, and 14 to 19 of the Convention (legislative and regulatory framework, assessment and verification of safety, radiation protection, emergency preparedness, siting, design, construction and operation. It was presented at the third review meeting in Vienna in 2005.

Report of 1 October 2007 (pdf ) on the implementation of obligations under the Convention on Nuclear Safety – 4th Review meeting of the Contracting Parties [C(2007)4492 final – Not published in the Official Journal].

COMMUNICATIONS

Communication from the Commission to the Council and the European Parliament of 6 September 2000 – Commission support to nuclear safety in the Newly Independent States and Central and Eastern Europe [COM(2000) 493 final – Not published in the Official Journal].

Communication from the Commission to the Council and the European Parliament: “Nuclear safety in the European Union” [COM(2002) 605 final – Not published in the Official Journal].


Another Normative about Convention on Nuclear Safety

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Energy > Security of supply external dimension and enlargement

Convention on Nuclear Safety

Document or Iniciative

Commission Decision 1999/819/Euratom of 16 November 1999 concerning the accession to the 1994 Convention on Nuclear Safety by the European Atomic Energy Community (Euratom).

Summary

Context

The Convention on Nuclear Safety is an international convention which aims to improve nuclear safety worldwide.

All Member States of the European Union (EU) are party to the Convention. The Community established by the Euratom Treaty shares jurisdiction with Member States in the fields governed by the Convention. The Community acceded to the Convention on 30 January 2000.

Euratom Responsibilities

Euratom does not possess nuclear installations as defined in the Convention. The safety of nuclear installations is the main responsibility of the holder of the corresponding licence from the Member State on whose territory the installation has been set up. The responsibilities of Euratom within the Convention are derived from the provisions in the Treaty (Title II, Chapter 3) dealing with the protection of the health of workers and the general public against the dangers of ionising radiation as confirmed by the Court of Justice (judgment C-29/99).

Objectives

The Convention has three main objectives:

  • to achieve and maintain a high level of nuclear safety through the enhancement of national measures and technical cooperation;
  • to establish and maintain effective defences against radiological hazards in nuclear installations in order to protect people and the environment, etc.;
  • to prevent nuclear accidents and limit their consequences.

The Convention does not give detailed safety standards but represents a commitment to the application of fundamental safety principles for nuclear installations.

Scope

The Convention applies to the safety of fixed civil nuclear power plants including facilities for storage, handling and treatment of radioactive materials that are on the same site and are directly related to the operation of the nuclear power plant.

Implementation

The parties to the Convention are committed to establishing a legislative and regulatory and administrative framework to ensure the safety of nuclear installations which provides for:

  • the establishment of sufficient national safety requirements and regulations;
  • a system for licensing nuclear installations and the prohibition of operating without a licence;
  • a system of inspection and assessment. Comprehensive and systematic assessments should be carried out before the construction and commissioning of an installation and throughout its life;
  • measures to enforce the regulations and the terms of licensing (suspension or revocation of licences, etc.).

The parties must set up an independent regulatory body to grant licenses and to ensure that the regulations are correctly implemented. The duties of this body must be effectively separated from those of any other organisation whose task is to promote or use nuclear energy.

Those responsible for the plants must draw up a strategy prioritising safety and a quality assurance programme to ensure that the requirements are met. Emergency measures must also be put in place, detailing the procedures for informing the relevant authorities, such as hospitals.

Each party to the Convention must submit to the other parties a report on the measures that they have taken to meet the requirements of the Treaty at regular review meetings.

Safety of Installations

The regulatory body is in charge of granting operating licences to nuclear installations. The Convention specifies assessment criteria for each phase in the life of an installation: siting, design and construction, and operation.

In choosing the site, one must consider, inter alia, its effect on the safety of the installation and the effects of the installation on individuals and the environment. Other contracting parties in the vicinity of the site must also be consulted if the installation is likely to have consequences for them.

Regarding design and construction, safety measures must be put in place against the release of radioactive materials and to make sure that the techniques and equipment used are proven by experience or testing, for example.

Authorisation to operate a nuclear installation is based on safety analysis and a commissioning plan. The management of the installation must conform with the regulations established by the national authorities. Programmes to collect and analyse data must also be introduced.

Each installation must also have on-site and off-site emergency plans to protect workers, the general public, the environment, etc. in the case of a radiological emergency.

Organisational arrangements

Parties meet at least once every three years. The parties look at reports on the measures that they have each taken to fulfil the Treaty obligations. The International Atomic Energy Agency (IAEA). provides the secretariat.

Act Entry into force Deadline for transposition in the Member States Official Journal
Decision 1999/819/Euratom

16.11.1999

OJ L 318 of 11.12.1999

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Decision 2004/491/Euratom

1.5.2004

OJ L 172 of 6.5.2004

Related Acts

PROPOSALS

Proposal for a Council Directive (Euratom) setting up a Community framework for nuclear safety [COM(2008) 790 final – Not published in the Official Journal].
This Proposal replaces and updates the Proposal which was presented in September 2004. It aims at establishing a common Community framework to define basic obligations on the safety of nuclear installations whilst strengthening the role of national regulatory bodies. The general objective of the Proposal is to achieve, maintain and continuously improve nuclear safety in the European Union. It also aims at enhancing the role of national regulatory bodies, by ensuring their independence and the appropriate financial and human resources to allow them to fulfil their duties. It will anchor the international principles of nuclear safety arising from the Convention on Nuclear Safety and the International Atomic Energy Agency (IAEA) Safety Fundamentals in Community law, thus giving the European Union its own provisions in this field. For the moment, the Member States and the European Union are only Parties to the IAEA Convention on Nuclear Safety, which is only of a voluntary nature and therefore does not lead to any sanctions in cases of non-compliance.

Its scope includes the design, siting, construction, maintenance, operation and decommissioning of nuclear installations.

It focuses on giving a precise definition of the terms ‘nuclear installations’, ‘nuclear safety’, radioactive material’, ‘decommissioning’, ‘radioactive waste’, ‘spent fuel’, ‘ionising radiation’, ‘regulatory body’, ‘licence’ and ‘new power reactors’.

Member States are still responsible for the legislative and regulatory framework for the safety of nuclear installations. They must ensure the independence of the regulatory body which grants licences and carries out inspections on siting, design, construction, commissioning, operation or decommissioning of nuclear installations.

Moreover, Member States should comply with the obligations and requirements set in the International Atomic Energy Agency Convention on Nuclear Safety, as well as the Agency’s Safety Fundamentals.

The population shall be informed of the procedures and the results of the surveillance activities on nuclear safety. Every three years, Member States must submit a report to the European Commission on the implementation of the directive.

Consultation procedure (CNS/2008/0231)

Proposal for a Council (Euratom) Directive Setting out basic obligations and general principles on the safety of nuclear installations [COM(2003) 32 final – Not published in the Official Journal].

Proposal for a Council Directive (Euratom) on the management of spent nuclear fuel and radioactive waste [COM(2003) 32 final – Non publié au Journal officiel].

DECISIONS

Council Decision of 15 December 2003 amending the Council Decision of 7 December 1998 approving the accession of the European Atomic Energy Community to the Nuclear Safety Convention with regard to the Declaration attached thereto – Not published in the Official Journal].

Council Decision of 23 May 2005, approving the conclusion of the Convention on Early Notification of a Nuclear Accident [COM(2004) 560 final – Not published in the Official Journal].

Council Decision of 23 May 2005, approving the conclusion of the Convention on Assistance in the case of a Nuclear Accident or Radiological Emergency [COM(2004) 560 final – Not published in the Official Journal].

CONVENTION ON NUCLEAR SAFETY

Convention on Nuclear Safety adopted in Vienna on 20 September 1994.

Declaration by the European Atomic Energy Community in accordance with the provisions of Article 30 (4) of the Convention on Nuclear Safety [Official Journal L 318 of 11.12.1999].

REPORTS ON THE IMPLEMENTATION OF THE CONVENTION

Report of 9 October 2001 on the implementation of the obligations of the Convention on Nuclear Safety [COM(2001) 568 final – Not published in the Official Journal].
This is the first Euratom report on the measures taken as a result of the Convention and refers to the health and safety provisions of the Euratom Treaty (Title II, Chapter 3), as well as Community legislation on radiation protection and emergency preparedness, for which Community jurisdiction was declared in Commission Decision 1999/819/Euratom (OJ L 318, 11.12.1999, p. 20). The report was presented at the second review meeting in Vienna in 2002.

Concerning radiation protection, Directive 96/29/Euratom lays down basic standards for the protection of the health of workers and the general public against the dangers arising from ionising radiation. This directive is the central element of the legislation on radiation protection. It lays down, inter alia, the implementation procedure and fundamental principles.

There are two main pieces of European legislation on emergency preparedness. The first, Decision 87/600/Euratom, concerns the early exchange of information between authorities in the event of a radiologicial emergency. The second, Directive 89/618/Euratom, concerns informing the general public about measures to be taken in the event of an emergency.

Euratom also tackles the planned activities to improve safety. The key action ‘Nuclear Fission’ from the 5th Framework Programme for research (1998-2002) is an important framework for activity with the Joint Research Centre (JRC).

Report of 13 October 2004 (pdf ) on the implementation of the obligations under the Convention on Nuclear Safety– 3rd Review meeting of the Contracting Parties [C(2004) 3742 final – Not published in the Official Journal].
This is the second Euroatom report on measures taken as a result of the Convention. It refers to the provisions concerning health protection of the Euratom Treaty (Title II, Chapter 3), and Community legislation in the field of radiation protection and emergency preparedness. Having regard to the new Declaration (Council Decision of 15 December 2003, not published in the Official Journal), the report includes information in line with articles 7, and 14 to 19 of the Convention (legislative and regulatory framework, assessment and verification of safety, radiation protection, emergency preparedness, siting, design, construction and operation. It was presented at the third review meeting in Vienna in 2005.

Report of 1 October 2007 (pdf ) on the implementation of obligations under the Convention on Nuclear Safety – 4th Review meeting of the Contracting Parties [C(2007)4492 final – Not published in the Official Journal].

COMMUNICATIONS

Communication from the Commission to the Council and the European Parliament of 6 September 2000 – Commission support to nuclear safety in the Newly Independent States and Central and Eastern Europe [COM(2000) 493 final – Not published in the Official Journal].

Communication from the Commission to the Council and the European Parliament: “Nuclear safety in the European Union” [COM(2002) 605 final – Not published in the Official Journal].

Strategic oil stocks

Strategic oil stocks

Outline of the Community (European Union) legislation about Strategic oil stocks

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Strategic oil stocks

Document or Iniciative

Council Directive 2006/67/EC of 24 July 2006 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products.

Summary

In an unstable geopolitical environment where the balance between supply and demand is generally uneasy, particularly due to growing demand from new mass consumers such as China, the European Union’s dependency on imports of petroleum products is an increasing cause for concern for European economic prospects.

A supply crisis caused by our supply of petroleum products from third countries being unexpectedly interrupted would most likely have a serious impact on European economic activity. Breaks in supply could also occur within the EU.

It is in order to ensure the security of its oil supply that the EU obliges Member States to guarantee minimum stocks of petroleum products that can be used in the event of a supply crisis to replace all or part of the shortfall.

Strategic stock-holding requirement

Member States are required to build up and constantly maintain minimum stocks of petroleum products equal to at least 90 days of the average daily internal consumption during the previous calendar year.

The calculation of the daily internal consumption is based on motor spirit and aviation fuel, gas oil, diesel oil, kerosene and jet-fuel of the kerosene type, as well as fuel oils.

Amongst the petroleum resources accepted in the statistical summary of strategic stocks are supplies held in ports of discharge, or those on board oil tankers in port for the purpose of discharging, once the port formalities have been completed, supplies held in tanks at the entry to oil pipelines and also those held in refinery tanks. On the other hand, certain resources may not be included in the statistical summary, such as crude oil not yet extracted, supplies intended for the bunkers of sea-going vessels, supplies in pipelines, in road tankers or rail tank-wagons, in the storage tanks of retail outlets and those held by small consumers, as well as quantities held by or for the armed forces.

Member States who have their own petroleum production may deduct this proportionally from their stock-holding obligation. Such deduction may not, however, exceed 25 % of the Member State’s internal consumption.

Member States may include in their statistical summary of strategic stocks only quantities that are at their full disposal in the event of an oil supply crisis.

Stock-holding arrangements

Stock-holding arrangements must ensure that the stocks are available to and accessible by Member States so they can react immediately in the event of a supply crisis. In fact, Member States must be able to control allocation of the stocks and quickly make them available to the sectors where the need for supply is the most urgent.

Stock-holding may rely on a system of partial or total delegation to a stock-holding body or agency. Member States ensure transparency of the stock-holding arrangements and make sure that fair, non-discriminatory conditions are applied.

The stocks may be held outside national territory in another Member State. The Member State on whose territory the stocks are held has control of them and guarantees their actual availability. It does not include them in its statistical summary.

Member States have an obligation to ensure administrative monitoring of their stocks, in other words to ensure their control and supervision. Breaches of these control mechanisms are covered by a system of penalties.

Member States send the Commission a statistical summary of the stocks existing at the end of each month, stating the number of days of average consumption of the previous calendar year that they represent.

Coordination

In the event of a supply crisis, a coordinated operation is put in place and the Commission organises a consultation between the Member States, either on its own initiative or at the request of one of them.

Member States do not, in principle, make withdrawals from the stocks that would bring them below the compulsory minimum level before such a consultation, except in a particularly urgent situation.

Member States must therefore send the Commission information relating to any withdrawal from the stocks (date on which the stocks fell below the compulsory minimum, reason for withdrawal, steps taken to build the stocks back up, likely stock levels during the period in which they will remain below the compulsory minimum).

Background

Since the end of the 1960s, the European Union has been aware of the need to prevent potential oil supply shortages. Council Directive 68/414/EEC therefore laid down the obligation on Member States to build up and maintain strategic oil stocks. Subsequently, Council Directive 72/425/EEC raised the obligation for stocks initially set at the equivalent of at least 65 days of the daily internal consumption to an obligation for stocks equivalent to at least 90 days. Council Directive 98/93/EC developed and strengthened the provisions of Directive 68/414/EEC. In the interests of clarity and effectiveness, these Directives were consolidated in, and thus repealed by, Council Directive 2006/67/EC.

When anticipating or reacting to a supply crisis, replacement of the shortfall by putting onto the market stocks built up by the Member States can be effective only in tandem with certain complementary measures (to promote energy efficiency and thus reduce consumption of hydrocarbons, to improve dialogue with producer countries, carry out more in-depth market analysis for better forecasting, to diverse energy sources, in particular by promoting renewable forms of energy, etc.).

This Directive will be repealed by Directive 2009/119/EC from 31 December 2012.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Directive 2006/67/EC

28.8.2006

OJ L 217, 8.8.2006

Related Acts

Council Decision 77/706/EEC of 7 November 1977 on the setting of a Community target for a reduction in the consumption of primary sources of energy in the event of difficulties in the supply of crude oil and petroleum products [Official Journal L 292, 16.11.1977].

Amended by Decision79/639/EEC [Official Journal L 183 of 19.7.1979].
Member States may be bound to reduce their oil consumption. The Decision therefore provides that the Commission can set a target for reducing the consumption of petroleum products by up to 10 % of normal consumption.

Energy cooperation with the developing countries

Energy cooperation with the developing countries

Outline of the Community (European Union) legislation about Energy cooperation with the developing countries

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Energy cooperation with the developing countries

To propose a framework for discussion and cooperation and concrete recommendations to integrate energy more effectively into cooperation with the developing countries.

2) Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 17 July 2002 – Energy cooperation with the developing countries [COM(2002) 408 final – Not published in the Official Journal].

3) Summary

Background

For a long time, energy was neglected in measures to promote sustainable development at international level. However, it has a central role in the three dimensions of sustainable development: the social dimension (fight against poverty), the economic dimension (security of supply) and the environmental dimension (environmental protection).

The energy sector is also of vital importance in cooperation with the developing countries since problems such as limited access to energy sources, the very widespread use of traditional biomass and dependence on imported energy sources constitute a significant obstacle to social and economic development.

It is only recently that energy has emerged as a matter of increasing international concern. This communication was presented as part of the contribution of the European Union to the Johannesburg World Summit in August/September 2002 on sustainable development issues.

Analysis of the energy situation in the developing countries
The energy situation in developing countries is very diverse.

Energy demand
Per capita energy consumption is significantly less than that in industrialised countries. Nevertheless, the annual rate of growth in energy consumption in the developing countries is three to four times higher than in industrialised countries. These figures mask very unequal access to energy worldwide. In Africa, per capita consumption remains very low whereas in Asia it has almost doubled since 1970. On present trends, energy demand and intensity (the relationship between consumption and the gross domestic product) will increase sharply in most developing countries (particularly in Asia). These phenomena require urgent action such as the application of new technologies for the development of renewable energy sources and improved energy efficiency.

Energy supply
At present, the developing countries tend to make greater use of coal and certain renewable energies (particularly traditional biomass) rather than oil, gas and nuclear energy. However, nuclear energy, gas and oil in particular are destined to play a more important role in the future. Increased use of gas and oil could entail financial risks since the international oil market is volatile and resources of these two fuels are limited. There will probably be a reduction in biomass use in the future. It should be noted that this source of energy, which is frequently used in developing countries, presents risks for health and the environment, partly due to the way in which it is used.

Lack of funding and a regulatory and institutional infrastructure
Lack of funding in the energy sector is a significant problem for developing countries which cannot be resolved by public funds or development aid alone. Private investment must therefore be attracted. The situation is made worse by the absence of clearly defined energy policy and the lack of institutional capacities and human resources. Nor is there an adequate legislative, regulatory and financial framework which is vital for attracting private investment and ensuring the proper functioning of the market.

Reference framework for energy cooperation

The approach of the European Union (EU) in this respect has hitherto been on a case-by-case basis. Energy cooperation should play a greater role in strategy documents by country and by region and strategy documents for the reduction of poverty.

Horizontal aspects
Two key horizontal actions have been identified:

  • reform of the energy sector;
  • technology transfer.

As regards reform of the sector, in order to meet the requirements concerning the opening up of the market, an appropriate legislative and regulatory framework is necessary, in particular as regards regulation, the unbundling of activities, pricing and the promotion of private participation. Apart from the formulation and implementation of an energy policy, work should be concentrated on two aspects: opening up production and distribution to the private sector and pricing.

Technology transfer and creating the conditions for it are fundamental aspects. Technologies relating to clean coal, renewable energy, energy efficiency and nuclear safety are of particularly importance in this connection.

Demand-side cooperation
Cooperation at this level is one of the most promising avenues of approach. The aim is to manage demand more effectively and save energy in particular through measures which promote energy efficiency. However, this requires guaranteed access to technologies, adequate funding and a propitious legal and financial framework. To this end, cooperation has to be established between public institutions, the private sector and international organisations such as the European Union.

Supply-side cooperation
More efficient management of energy supply can lead to greater stability in the energy sector. Actions are proposed in two areas:

  • promoting diversification of energy supply;
  • facilitating the development of networks, and in particular interconnections.

Energy diversification
This is important both for the consuming countries which are often dependent on a limited number of energy sources and the producing countries which are often monoexporters. The objective is to reduce dependence on the traditional fossil fuels such as oil and gas.

Promoting clean coal technologies is one of the possibilities. Alternatives to oil are currently limited but natural gas is a promising substitute fuel since it has less impact on climate change. More efficient use of these two fuels is necessary as their reserves are limited. As regards renewable energies, their use is currently higher in developing countries than in industrialised countries but in most cases it involves sources such as firewood which presents a risk in terms of sustainable development (for example, deforestation) and human health. Unlike the European Union, there is no specific policy for the development of renewable energies which are often fairly costly in developing countries. To promote the development of these sources, it is necessary to help these countries gain access to the technology, support efforts to establish a legal framework and develop appropriate financial mechanisms. In the field of nuclear energy, technical assistance is a priority to ensure nuclear safety. Apart from the fundamental need to guarantee a high level of safety, this could help to attract private investment to this sector.

Facilitating the development of networks, and in particular interconnections
The development of regional energy infrastructures can offer the benefits of economies of scale, especially in small developing countries. Sharing the development, management etc. of infrastructures can reduce transaction costs and improve competitiveness. However, this solution is not always appropriate since energy consumption varies significantly from one country to another. Consideration must also be given to setting up national infrastructures as there are developing countries which still do not have an adequate national network.

Operational recommendations

The objective of the recommendations is to establish an innovative approach based on the experience of the European Union which focuses on energy efficiency, reduction of energy wastage and promotion of renewable energies. However, this should not call into question the fundamental objective of guaranteeing access to basic energy services for people and firms in developing countries.

Long-term objectives
There are five recommendations for the long term:

  • integrating energy as a horizontal element of EU development aid programmes;
  • developing institutional support, technical assistance and networking

    The aim of these actions is to give developing countries the capacities to implement their energy choices and they comprise initiatives such as the secondment of EU experts to those countries, support for training, etc.;
  • developing a regulatory framework and innovative financial mechanisms

    This is vital to encourage private capital. Measures such as public-private partnerships are envisaged;
  • encouraging regional cooperation;
  • developing coordination within the EU and with other international providers of finance and organisations.
    The Commission is proposing that an international organisation should be designated to act as a focal point and take responsibility for the analysis and management of statistics concerning the situation in the developing countries.

The EU Energy Initiative
The European Union launched a European Union Energy Initiative at the World Summit on sustainable development. The initiative is part of the process of achieving the Millennium Development Goal of halving the number of people in extreme poverty by 2015.

Actions will be launched at national, regional and international level in partnership with all public and private players. The key actions will include:

  • institutional capacity building;
  • transfer of knowledge and skills;
  • technical cooperation;
  • market development.

The Initiative and the recommendations will lead to an increase in financial aid for the energy sector in the developing countries.

4) Implementing Measures

5) Follow-Up Work

 

Security of energy supply in the EU and international cooperation

Security of energy supply in the EU and international cooperation

Outline of the Community (European Union) legislation about Security of energy supply in the EU and international cooperation

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Security of energy supply in the EU and international cooperation

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 7 September 2011 On security of energy supply and international cooperation – “The EU Energy Policy: Engaging with Partners beyond Our Borders” [COM(2011) 539 final – Not published in the Official Journal].

Summary

This Communication defines a strategy of cooperation beyond the borders of the European Union (EU) in order to ensure its energy supply and to promote its objectives in the field of energy. This strategy is based on four main objectives:

  • building up the external dimension of the EU’s internal energy market;
  • strengthening partnerships for secure, safe, sustainable and competitive energy;
  • improving access to sustainable energy for developing countries;
  • better promoting EU policies beyond its borders.

Objective 1: building up the EU’s internal energy market

Member States often favour the negotiation of bilateral agreements in the field of energy supply. For this reason the European Commission wishes to set up an information exchange mechanism on intergovernmental agreements between Member States and third countries in order to improve coordination within the internal energy market. Agreements could also be adopted with third countries at EU level.

It is essential for the EU to diversify its sources of energy in order to ensure continuity of supply. The EU therefore intends to put follow-up actions in place in order to:

  • ensure the continuity of the building of the infrastructure defined in the strategy Energy infrastructure priorities for 2020 and beyond;
  • promote supply from the Southern Corridor;
  • ensure a continuous supply of gas and oil from the East through cooperation with Russia and Ukraine, while supporting the rehabilitation of the Ukrainian transmission network;
  • develop renewable energy projects with the Southern Mediterranean countries.

The Commission considers it necessary to establish differentiated types of cooperation suited to each partner. It therefore intends to initiate several projects, with the main ones seeking to:

  • conclude negotiations with Switzerland aimed at full integration of electricity markets;
  • encourage cooperation with States wishing to join the EU;
  • develop an EU-Southern Mediterranean partnership to promote electricity and renewable energy by 2020.

Russia is an energy security partner of vital importance for the EU. The Commission therefore wishes to develop privileged relations with this country by stepping up the implementation of the EU-Russia partnership and by preparing an EU 2050 Energy Roadmap. An agreement is to be concluded between the EU, Russia and Belarus on the technical rules for the management of electricity networks in the Baltic region.

Objective 2: strengthening partnerships for secure, safe, sustainable and competitive energy

Besides Russia, the EU is obliged on the one hand to strengthen its partnerships with its hydrocarbon suppliers, such as Norway, Algeria, Saudi Arabia and Libya, and, on the other hand, to extend new dialogues with emerging producers. It is vital to emphasise good energy governance.

In the context of its cooperation activities, the EU must not lose sight of the objective of reducing carbon emissions at global level. It therefore proposes to invite industrialised and emerging countries to work on the creation of reliable and transparent global energy markets, on the promotion of energy efficiency and low carbon energy, and on research and innovation projects in this field.

The EU considers it essential to step up work on a comprehensive legal environment for EU relations with suppliers and transit countries. To do this, it actively supports the Energy Charter and, in particular, work on its core trade, transit and investment mandate.

The Commission also wishes to promote nuclear safety and security standards globally. To this end, it intends to extend the scope of the Euratom agreements and to advocate for international legally binding nuclear safety standards, particularly at the level of the International Atomic Energy Agency (IAEA). It also intends to address the safety of offshore operations, including with hydrocarbon producers within the Organization of Petroleum Exporting Countries (OPEC).

Objective 3: improving access to sustainable energy for developing countries

In its development policy, the Commission has set itself the aim of making sources of energy (particularly electricity) accessible to the regions with the fewest resources, while respecting environmental imperatives. To achieve these aims, it wishes to mainstream energy in all EU development policy instruments, and to facilitate access of least developed countries to climate financing.

Objective 4: better promoting EU policies beyond its borders

The Commission has defined four types of energy partner:

  • market integration partners;
  • key energy suppliers and transit countries;
  • key energy players worldwide;
  • developing countries.

For each of these partners, it proposes the use of appropriate instruments selected from among the existing legal and political instruments, such as the Energy Community Treaty, the strategic energy dialogues or other instruments.

The Commission also wishes to improve coordination between Member States in order to speak with a single voice beyond its borders. To do this, it intends to set up a Strategic Group for International Energy Cooperation.

To ensure the best possible follow-up of its projects, the Commission is to establish a database of energy projects in partner countries funded by the EU, EU Member States, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

Security of supply of natural gas

Security of supply of natural gas

Outline of the Community (European Union) legislation about Security of supply of natural gas

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Security of supply of natural gas

Gas consumption in Europe has rapidly increased during the last 10 years. With decreasing domestic production, gas imports have increased even more rapidly, thus creating higher import dependence and the need to address security of gas supply aspects.

Document or Iniciative

Regulation (EU) No 994/2010 concerning measures to safeguard security of gas supply and repealing Council Directive 2004/67/EC (Text with EEA relevance).

Summary

The regulation aims to safeguard the security of gas supply by ensuring both prevention and a coordinated response in the event of a supply disruption and by securing the proper and continuous functioning of the internal gas market.

The regulation establishes a common framework where the security of supply is a shared responsibility of natural gas undertakings, European Union (EU) countries and the Commission. It also provides transparent mechanism, in a spirit of solidarity, for a coordinated response to an emergency at national, regional and EU levels.

Security of supply for protected customers

The regulation sets out a common concept of the customers whose gas supplies have to be protected. All households are protected customers. EU countries may also include as protected customers small and medium-sized enterprises and essential social services (provided that these additional customers do not represent more that 20% of the final use of gas) and/or district heating installations.

Common infrastructure and supply standards

The regulation provides common standards at EU level.

  • Infrastructure standard: EU countries must ensure that by 3 December 2014 at the latest, in the event of a disruption of the single largest infrastructure, they are able to satisfy total gas demand during a day of exceptional high gas demand. The regulation also requires reverse flows to be established in all cross border interconnections between EU countries by 3 December 2013.
  • Supply standard for protected customers: Natural gas undertakings must secure supplies to protected customers under severe conditions: in the event of a seven day temperature peak and for at least 30 days of high demand, as well as in the case of an infrastructure disruption under normal winter conditions.

Risk assessment, preventive action plan and emergency plan

By 3 December 2011, the competent authority shall make a full assessment of the risks affecting the security of gas supply. The risk assessment shall take into account the supply and infrastructure standards, all relevant national and regional circumstances, various scenarios of exceptionally high gas demand and supply disruption and the interaction and correlation of risks with other EU countries.

On the basis of the results of the risk assessment, no later than 3 December 2012, the competent authority shall adopt, make public and notify the Commission of a preventive action plan, containing the measures needed to remove or mitigate the risk identified, and an emergency plan containing the measures to be taken to remove or mitigate the impact of a gas supply disruption.

The risk assessment and the plans shall be updated every 2 years.

The Commission shall assess those plans in consultation with the Gas Coordination Group.

EU and regional emergency

The regulation defines three main crisis levels: early warning level, alert level, and emergency level.

The emergency plan shall build upon these crisis levels.

The Commission plays an important role with regard to the declaration of EU or regional emergency. The Commission may declare an EU or a regional emergency at the request of a competent authority that has declared an emergency. When the request comes from at least two competent authorities, the Commission shall declare an EU or regional emergency.

The Gas Coordination Group

The Gas Coordination Group is established to facilitate the coordination of measures concerning security of gas supply. The Group shall be consulted and shall assist the Commission on security of gas supply issues.

The Group shall be composed of representatives of the EU countries, in particular of their competent authorities, as well as the Agency for the Cooperation of Energy Regulators, the European Network of Transmission System Operators (ENTSO) for gas and representative bodies of the industry concerned and those of relevant customers. The Commission shall chair the Group.

Transparency and information exchange:

During an emergency, the natural gas undertakings concerned shall make available certain information to the competent authority on a daily basis.
In the event of an EU or regional emergency, the Commission is entitled to request that the competent authority provides at least information on the measures planned to be undertaken and already implemented to mitigate the emergency.

By 3 December 2011 at the latest EU countries shall inform the Commission of existing inter-governmental agreements concluded with non-EU countries. EU countries must also notify the Commission when any new such agreements are concluded.

Background

The Council Directive 2004/67/EC established for the first time a legal framework at EU level to safeguard security of gas supply. The Russian-Ukrainian gas crisis in January 2009 demonstrated that the provisions of the directive and their uneven implementation by the EU countries was not sufficient to prepare for, and to respond to a supply disruption, and there was a clear risk that measures developed unilaterally by the EU countries could jeopardise the functioning of the internal market.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EU) 994/2010

2.12.2010

OJ L295 of 12.11.2010

Stocks of crude oil and petroleum products

Stocks of crude oil and petroleum products

Outline of the Community (European Union) legislation about Stocks of crude oil and petroleum products

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Stocks of crude oil and petroleum products (from 2012)

Document or Iniciative

Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products.

Summary

The new Directive lays down rules aimed at:

  • making oil supply in the Community more secure through reliable and transparent mechanisms based on solidarity amongst Member States;
  • maintaining minimum stocks of crude oil and/or petroleum products;
  • putting in place emergency procedures to be used in the event of a shortage.

Main provisions concerning emergency stocks

Member States must maintain a total level of oil stocks corresponding, at the very least, to 90 days of average daily net imports or 61 days of average daily inland consumption *, whichever of the two quantities is greater.

The average daily net imports are to be calculated on the basis of the method explained in Annex I of the Directive, whilst the procedure for calculating average daily inland consumption is given in Annex II. Annex III lays down the procedure for calculating stock levels.

Member States have an obligation to ensure that stocks are available and physically accessible. In this regard, they are responsible for putting in place arrangements for the identification, accounting and control of these stocks. A register containing information on emergency stocks (the location of the depot, refinery or storage facility, the quantities (involved, the owner of the stocks and their nature) should be established and continually updated. A summary copy of the register shall be sent to the European Commission once a year.

In order to maintain stocks, each Member State may set up a central stockholding entity (CSE)*in the Community, in the form of a non-profit making body or service. The CSE shall maintain oil stocks (including acquisition and management of these stocks). Under the conditions and limitations laid down by the Directive, CSEs and Member States may delegate part of the management of stocks to another Member State with stocks on its territory, to the CSE set up by the said Member State or to economic operators.

Under the conditions and limitations laid down by the Directive, Member States may authorise any economic operators upon whom they have imposed stockholding obligations to delegate part of these obligations to:

  • the CSE of the Member State in question;
  • one or several CSEs that have expressed a wish to maintain such stocks;
  • certain other economic operators which have surplus stocks.

Main provisions relating to specific stocks and other stocks of products

Each Member State is invited to commit to maintaining specific stocks. In this case, they must maintain a minimum level defined in terms of number of days of consumption. Specific stocks shall be owned by the Member State concerned or the CSE set up by it. Member States shall publish their decision to hold specific stocks in the Official Journal of the European Union.

Specific stocks shall be composed of one or several of the following products:

  • ethane;
  • LPG;
  • motor gasoline;
  • aviation gasoline;
  • gasoline-type jet fuel (naphtha-type jet fuel or JP4);
  • kerosene-type jet fuel;
  • other kerosene;
  • gas/diesel oil (distillate fuel oil);
  • fuel oil (high sulphur content and low sulphur content);
  • white spirit and SBP;
  • lubricants;
  • bitumen;
  • paraffin waxes;
  • petroleum coke.

Member States shall ensure that in total, for the reference year, the crude oil equivalent of the quantities consumed of products included in the categories used is at least equal to 75 % of inland consumption. If there is no commitment to maintain at least 30 days of specific stocks, Member States shall ensure that at least one third of their commitment is held in the form of products, under the conditions laid down by the Directive.

Biofuels*and additives*

When calculating stockholding obligations and stock levels actually maintained, biofuels and additives shall be taken into account only where they have been blended with the petroleum products concerned. Furthermore, under certain conditions, part of the biofuels and additives stored on the territory of the Member State in question may be taken into account when calculating stock levels actually maintained.

Emergency procedures

Member States must be able to release all or part of their emergency stocks and specific stocks if required. Contingency plans shall be developed. In the event of a major supply disruption, emergency procedures must be in place. Specific rules also apply according to whether or not there is an effective international decision to release stocks.

Context

Since the system for the management of oil stocks was flawed, the Commission considered it useful to revise Community stockholding mechanisms. Oil is now one of the European Union’s main energy resources and security of supply should be enhanced in order to avoid or mitigate a crisis in this sector.

The Directive repeals Directives 2006/67/EC and 73/238/EEC, as well as Decision 68/416/EEC.

Key terms of the Act
  • Inland consumption: means the total quantities, calculated according to Annex II, delivered within a country for both energy and non-energy use (see full definition in Article 2);
  • Central stockholding entity: means the body or service upon which powers may be conferred to act to acquire, maintain or sell oil stocks, including emergency stocks and specific stocks;

REFERENCES

Act Entry into force Deadline for transposition in the Member States Official Journal
Directive 2009/119/EC

29.10.2009

31.12.2012

OJ L 265 of 9.10.2009

Security of supply, external dimension and enlargement

Security of supply, external dimension and enlargement

Outline of the Community (European Union) legislation about Security of supply, external dimension and enlargement

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

Security of supply, external dimension and enlargement

If it is to achieve its goal of secure, competitive and sustainable energy the EU must involve and cooperate with developed and developing countries, be they producers, transit countries or consumers. For the sake of efficiency and consistency, therefore, the EU and the Member States must speak with one voice on international energy issues. At a time of vulnerability of imports, potential energy crises and uncertainty surrounding future supplies, the EU must make sure that it adopts measures and creates partnerships that guarantee the security of its energy supply. Compliance with the Community energy acquis by the candidate countries is a vital part of the process of their accession to the EU.

SECURITY OF SUPPLY

  • Security of energy supply in the EU and international cooperation
  • Stocks of crude oil and petroleum products (from 2012)
  • Strategic oil stocks
  • Security of supply of natural gas
  • Security of supply of electricity
  • Green Paper on the security of energy supply

EXTERNAL DIMENSION

  • The Energy Community Treaty
  • European Energy Charter
  • The Global Energy Efficiency and Renewable Energy Fund
  • ACP-EU Energy Facility
  • Energy cooperation with the developing countries
  • Black Sea Synergy
  • Global partnership for sustainable development
  • Environment and sustainable management of natural resources, including energy
  • Convention on Nuclear Safety
  • Euro-Mediterranean Cooperation

ENLARGEMENT

Ongoing enlargement

  • Croatia – Energy
  • Turkey – Energy
  • The former Yugoslav Republic of Macedonia – Energy
  • Iceland – Energy

Enlargement of January 2007

  • Bulgaria
  • Romania

Enlargement of May 2004

  • Cyprus
  • Estonia
  • Hungary
  • Latvia
  • Lithuania
  • Poland
  • Malta
  • The Czech Republic
  • Slovakia
  • Slovenia

European Energy Charter

European Energy Charter

Outline of the Community (European Union) legislation about European Energy Charter

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Energy > Security of supply external dimension and enlargement

European Energy Charter

Document or Iniciative

Council and Commission Decision 98/181/EC, ECSC, Euratom of 23 September 1997 on the conclusion, by the European Communities, of the Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects.

Summary

Background

At the Dublin European Council (June 1990), the Prime Minister of the Netherlands suggested establishing cooperation in the energy sector with the eastern European and former Soviet Union countries, with the aim of stimulating economic growth and improving the EU’s security of supply. The Council invited the Commission to look into the best way of establishing cooperation, and in 1991 the Commission proposed the European Energy Charter. Negotiations on this Charter began in Brussels in July 1991 and culminated in the signature of a concluding document at The Hague on 17 December 1991.

The 51 signatories of the European Energy Charter undertook to pursue the objectives laid down in the Charter and to establish cooperation under a legally binding basic agreement, which became the Energy Charter Treaty. The purpose of this Treaty is to promote East-West industrial cooperation through legal guarantees concerning investments, transit and trade. The Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects were signed in Lisbon on 17 December 1994 by all signatories to the 1991 Charter except for the United States and Canada. The EU and its Member States are signatories to the Treaty and the Protocol.

The Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects were approved by this Decision on behalf of the European Coal and Steel Community (ECSC), the European Community (EC) and Euratom (European Atomic Energy Community).

The Decision sets out the methods for establishing the position which the EU may be required to take within the Energy Charter Conference. It also indicates the method for establishing the position to take on behalf of the ECSC and Euratom.

Energy Charter Treaty

The aim of the Treaty is to establish a legal framework to promote long-term cooperation in the energy sector based on the principles enshrined in the European Energy Charter.

The key provisions of the Treaty concern the protection of investment, trade in energy materials and products, transit and dispute settlement.

As regards completed investments, Contracting Parties must promote and create stable, favourable and transparent conditions for foreign investors and apply the most-favoured nation principle or offer the same treatment that is given to national investors, whichever arrangement is the most favourable. However, for pre-investments the principle of national treatment will be applied in two stages. In accordance with the Treaty, the first stage is to apply the “best efforts” clause. Then, and subject to the conditions to be defined in a supplementary treaty (currently under negotiation), it will become legally binding to offer national treatment regarding investments.

Trade in energy materials and products between Contracting Parties is governed by the GATT rules. This means that the signatories to the Treaty must apply the GATT rules on trading energy materials and products even if they are not members of the WTO or GATT.

Regarding transit, each party must take the necessary steps to facilitate the transit of energy materials and products in line with the principle of free transit without distinction made on the origin, destination or ownership of such energy materials or products, nor discriminatory pricing on the basis of these distinctions, and without imposing delays, restrictions or unreasonable taxation.

All parties undertake to ensure that the provisions on the transit of energy materials and products and the use of energy transit equipment treat energy materials and products in transit in a manner that is no less favourable than that regarding materials and products originating in their area, save where otherwise provided in an international agreement.

The transit of energy materials and products of energy materials and products may not be interrupted or reduced in the case of a dispute on transit arrangements before the relevant dispute settlement procedures have been followed.

Other provisions prevent countries through which energy materials and products transit from opposing the creation of new capacity.

The Treaty provides for strict procedures for settling disputes either between countries or between private investors and the state in which the investment has been made. In the case of a dispute between an investor and a country, the investor may decide to submit the dispute to international arbitration. In the case of a dispute between countries, and if diplomacy is unsuccessful, an ad hoc arbitration tribunal may be set up. The settlement solutions provided by these mechanisms are binding.

The Treaty sets out the following provisions on competition, transparency, sovereignty, taxation and the environment.

Competition: all parties must take steps to combat market distortions and barriers to competition in economic activities in the energy sector. They must ensure that their legal framework includes provisions to address any unilateral or concerted anti-competitive behaviour in economic activities in the energy sector.

Transparency: Contracting Parties must nominate at least one inquiry point to which requests for information on laws, regulations, legal decisions and general administrative decisions regarding energy materials and products may be addressed.

Sovereignty: all Contracting Parties exercise sovereignty over their energy resources in accordance with and subject to international law. They also have the right to choose the geographical areas in their territory to be made available for exploration and exploitation.

Environment: the “polluter pays” principle is enshrined in the Treaty. This favours market-led pricing which fully reflects environmental costs and benefits. Contracting Parties must reduce, in an economically effective manner, any environmentally harmful impact caused by any operations in the energy cycle in their territory, in compliance with security standards.

Taxation: the Treaty does not establish new fiscal rights or obligations. Direct taxation remains a matter for the national legislation of each country or for applicable bilateral agreements.

State enterprises and privileged bodies: all State enterprises or bodies that are granted exclusive or special privileges by the Contracting Party must comply with Treaty obligations.

The Treaty has a protection clause to maintain the preferential treatment resulting from the treaties establishing the European communities. Therefore under the clause on economic integration agreements (EIAs), a signatory that is party to an EIA has no obligation to extend to another Contracting Party that is not party to the EIA the preferential treatment provided for in that EIA.

Not all the provisions of the Treaty apply immediately to all signatories upon ratification and entry into force of the Treaty. Countries with transition economies benefit from some provisional arrangements.

The Treaty sets out the organisation, structure, tasks and financial provisions for the Energy Charter Conference.

The Treaty provides for the withdrawal of any Contracting Party, subject to compliance with a deadline (five years from the entry into force of the Treaty).

Energy Charter Protocol on energy efficiency and related environmental aspects

This Protocol was adopted in accordance with the Treaty, which clearly provided for the negotiation of protocols and declarations aimed at achieving the objectives and principles laid down in the Charter.

The objectives are:

  • to promote energy efficiency policies compatible with sustainable development;
  • to create the conditions for encouraging producers and consumers to use energy in a more economic, efficient and environmentally sound manner;
  • to encourage cooperation in the field of energy efficiency.

The Contracting Parties undertake to frame energy efficiency policies and legal and regulatory frameworks that promote effective market mechanisms, including market-led pricing.

The Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects both entered into force on 16 April 1998.

References

Act

Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Decision 98/181/EC, CECA, Euratom 23.9.1997 OJ L 69 of 9.3.1998

Related Acts

Council Decision 2001/595/EC of 13 July 2001 on the conclusion by the European Community of the Amendment to the trade-related provisions of the Energy Charter Treaty [Official Journal L 209 of 2.8.2001].
By this Decision the European Community adopted the amendment to the trade-related provisions of the Energy Charter Treaty, which had been provisionally adopted in July 1998. The amendment introduces references to provisions applicable to the WTO instead of the 1947 GATT and inserts a list of energy equipment into the trade provisions.

Energy Charter Conference – rules concerning the conduct of the conciliation of transit disputes [Official Journal L 11 of 16.1.1999].