Legal provisions of COM(2001)775-2 - Amendment of Decision No 1254/96/EC laying down a series of guidelines for trans European energy networks

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Article 1 - Purpose

This Decision defines the nature and scope of Community action to establish guidelines for trans-European energy networks. It establishes a series of guidelines covering the objectives, priorities and broad lines of action by the Community in respect of trans-European energy networks. These guidelines identify projects of common interest, including those which have priority, among trans European electricity and natural gas networks.

Article 2 - Scope

This Decision applies:

1. in electricity networks, to:

(a) all high voltage lines, excluding those of distribution networks, and to submarine links, provided that this infrastructure is used for inter regional or international transmission/connection;

(b) any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems;

2. in natural gas networks, to:

(a) high pressure gas pipelines, excluding those of distribution networks, making it possible to supply regions of the Community from internal or external sources;

(b) underground storage facilities connected to the abovementioned high pressure gas pipelines;

(c) reception, storage and regaseification facilities for liquefied natural gas (LNG) and also gas carriers according to the capacities to be supplied;

(d) any equipment or installations essential for the system in question to operate properly, including protection, monitoring and control systems.

Article 3 - Objectives

The Community shall promote the interconnection, interoperability and development of trans-European energy networks and access to such networks in accordance with current Community law, with the aim of:

(a) encouraging effective operation of the internal market in general and of the internal energy market in particular, while encouraging the rational production, distribution and utilisation of energy resources and the development and connection of renewable energy resources, so as to reduce the cost of energy to the consumer and contribute to the diversification of energy sources;

(b) facilitating the development and reducing the isolation of the less favoured and island regions of the Community, thereby helping to strengthen economic and social cohesion;

(c) reinforcing the security of energy supplies, for example by strengthening relations with third countries in the energy sector in their mutual interest, in particular in the framework of the Energy Charter Treaty and cooperation agreements concluded by the Community.

Article 4 - Priorities

The priorities for action by the Community on trans-European energy networks shall be compatible with sustainable development and shall be as follows:

1. for both electricity and gas networks:

(a) adapting and developing the energy networks in support of the operation of the internal energy market and, in particular, solving the problems of bottlenecks (in particular transfrontier ones), congestion and missing links, and taking account of the needs arising from the functioning of the internal market for electricity and natural gas and the enlargement of the European Community;

(b) establishing energy networks in island, isolated, peripheral and ultraperipheral regions while promoting the diversification of energy sources and the use of renewable energy sources, together with the connection of those networks, where necessary;

2. for electricity networks:

(a) adapting and developing networks to facilitate the integration/connection of renewable energy production;

(b) interoperability of electricity networks within the European Community with those in the accession candidate countries and other countries in Europe and the Mediterranean and Black Sea basins;

3. for gas networks:

the development of gas networks in order to meet the European Community's natural gas consumption needs, the control of its gas supply systems and the interoperability of gas networks with those in third countries in Europe and the Mediterranean and Black Sea basins, and the diversification of natural gas sources and supply routes.

Article 5 - Lines of action

The broad lines of action by the Community on trans-European energy networks shall be:

(a) the identification of projects of common interest;

(b) the creation of a more favourable context for development of these networks, in accordance with Article 156(1), of the Treaty.

Article 6 - Additional criteria for projects of common interest

1. The generic criteria to be applied when a decision is taken on modifications, specifications or applications for updating projects of common interest are the following:

(a) the projects fall within the scope of Article 2;

(b) the projects correspond to the objectives and priorities set out in Articles 3 and 4 respectively;

(c) the projects display potential economic viability.

Projects of common interest which relate to the territory of a Member State shall require the approval of the Member State concerned.

2. The additional criteria for identifying projects of common interest are set out in Annex II.

3. Any modification which changes the description of the additional criteria for projects of common interest as it appears in Annex II, including substantial changes affecting these criteria, such as in respect of entirely new projects or new country destinations, shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

4. Only those projects listed in Annex III which fulfil the criteria referred to in paragraphs 1 and 2 shall be eligible for Community financial aid provided under Regulation (EC) No 2236/95.

5. The indicative project specifications, including, where appropriate, their geographical description, are set out in Annex III. These specifications shall be updated in accordance with the procedure referred to in Article 10(2). Updates are of a technical nature and must be limited to technical changes of projects, the need to modify for example a particular part of the specified routing, or a limited adaptation of the location of the project.

6. Member States shall take any measures they consider necessary to facilitate and speed up the completion of projects of common interest and to minimise delays while complying with Community law and international conventions on the environment. In particular, the necessary authorisation procedures shall be completed rapidly.

7. Where parts of projects of common interest are situated within the territory of third countries, the Commission may, by agreement with the Member States concerned, put forward proposals, where appropriate within the framework of the management of the agreements between the Community and those third countries and in accordance with the Energy Charter Treaty in respect of third countries which are signatories to that Treaty, for the projects also to be recognised as of reciprocal interest by the third countries concerned, in order to facilitate their implementation.

8. The evaluation of the economic viability referred to in paragraph 1(c) shall be based upon a cost benefit analysis which shall take account of all costs and benefits, including those in the medium and/or long term, in connection with environmental aspects, security of supply and the contribution to economic and social cohesion.

Article 7 - Priority projects

1. Those projects of common interest referred to in Article 6(4) and covered by Annex I shall have priority for the grant of Community financial aid provided under Regulation (EC) No 2236/95. Modifications to Annex I shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

2. The Member States concerned and the Commission shall endeavour, each within its own sphere of competence, to further the carrying out of the priority projects especially cross border projects.

3. Priority projects shall be compatible with sustainable development and meet the following criteria:

(a) they shall have a significant impact on the competitive operation of the internal market, and/or

(b) they shall strengthen security of supply in the Community.

Article 8 - Effects on competition

When projects are considered, an effort shall be made to take into account the effects on competition. Private financing or financing by the economic operators concerned shall be encouraged. Any competitive distortion between the operators on the market shall be avoided, in accordance with the provisions of the Treaty.

Article 9 - Restrictions

1. This Decision shall be without prejudice to any financial commitment by a Member State or the Community.

2. This Decision shall be without prejudice to the results of the environmental impact assessment of projects and of the plans or programmes which define the future authorisation framework for such projects. The results of the environmental impact assessments, where such an assessment is requested in accordance with relevant Community legislation, shall be taken into consideration before a decision on the carrying out of the projects is actually taken in accordance with the relevant Community legislation.

Article 10 - Committee

1. The Commission shall be assisted by a Committee.

2. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.

3. The Committee shall adopt its rules of procedure.

Article 11 - Report

Every two years the Commission shall draw up a report on the implementation of this Decision, which it shall submit to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. In this report, attention shall also be given to the implementation and progress made in the carrying out of priority projects, as well as the modalities of their financing, especially as regards the contribution of Community funding, which concern cross border connections as mentioned in Annex II, points 1, 2 and 7.

Article 12

This Decision shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

Article 13

Decision No 1254/96/EC is hereby repealed, without prejudice to the obligations of Member States concerning the application of the said Decision. References to Decision No 1254/96/EC shall be construed as references to this Decision.

Article 14

This Decision is addressed to the Member States.