Legal provisions of COM(2003)742 - Guidelines for trans-European energy networks and repealing Decisions No 96/391/EC and No 1229/2003/EC [ SEC (2003) 1369 ]

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier COM(2003)742 - Guidelines for trans-European energy networks and repealing Decisions No 96/391/EC and No 1229/2003/EC [ SEC (2003) 1369 ].
document COM(2003)742 EN
date September  6, 2006


Article 1

Subject matter

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 and priority projects, including those of European interest, among trans-European electricity and gas networks.

Article 2

Scope

This Decision shall apply:

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 interregional or international transmission or connection;

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

2.in gas networks (transporting natural gas or olefin gases), 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 regasification facilities for liquefied natural gas (LNG) and also LNG 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 Community law in force, with the aim of:

(a)encouraging the effective operation and development of the internal market in general and of the internal energy market in particular, while encouraging the rational production, transportation, distribution and use 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 the mutual interest of all parties concerned, in particular in the framework of the Energy Charter Treaty and cooperation agreements concluded by the Community;

(d)contributing to sustainable development and protection of the environment, inter alia by involving renewable energies and reducing the environmental risks associated with the transportation and transmission of energy.

Article 4

Priorities for action

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, especially transfrontier bottlenecks, 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 Union;

(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 and connection of renewable energy production;

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

3.for gas networks:

(a)developing natural gas networks in order to meet the Community's natural gas consumption needs and to control its natural gas supply systems;

(b)ensuring interoperability of natural gas networks within the Community and with those in accession and candidate countries and other countries in Europe, in the Mediterranean Sea, Black Sea and Caspian Sea basins, as well as in the Middle East and the Gulf regions, and 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 and priority projects, including those of European interest;

(b)the creation of a more favourable context for development of those networks.

Article 6

Projects of common interest

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

(a)the project falls within the scope of Article 2;

(b)the project meets the objectives and priorities for action set out in Articles 3 and 4 respectively;

(c)the project displays potential economic viability.

The evaluation of economic viability shall be based upon a cost-benefit analysis which takes 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. Projects of common interest which relate to the territory of a Member State shall require the approval of the Member State concerned.

2. Additional criteria for identifying projects of common interest are set out in Annex II. Any changes to the additional criteria for identifying projects of common interest set out in Annex II shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

3. Only those projects listed in Annex III which fulfil the criteria laid down in paragraph 1 and those set out in Annex II shall be eligible for the Community financial aid provided for under Regulation (EC) No 2236/95.

4. The indicative project specifications, comprising the detailed description of the projects and, 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 14(2). Updates shall be of a technical nature and shall be limited to technical changes of projects, or to modification of a part of the specified routing, or to limited adaptation of the location of the project.

5. 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, especially as regards projects declared to be of European interest. In particular, the necessary procedures shall be completed rapidly.

6. Where parts of projects of common interest are situated within the territory of third countries, the Commission may, in 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 and other multilateral agreements with third countries which are parties to that Treaty, for the projects also to be recognised as being of mutual interest by the third countries concerned, in order to facilitate their implementation.

Article 7

Priority projects

1. The projects of common interest referred to in Article 6(3) and covered by the axes for priority projects set out in Annex I shall have priority for the grant of the Community financial aid provided for pursuant to Regulation (EC) No 2236/95. Amendments to Annex I shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

2. As regards cross-border investment projects, Member States shall take the steps required to ensure that, under national procedures, the fact that such projects increase the capacity for interconnection of two or more Member States and consequently strengthen Europe-wide security of supply is treated as a criterion for the assessment by the competent national authorities.

3. The Member States concerned and the Commission shall endeavour, each within its own sphere of competence, together with the responsible companies, to further the carrying out of the priority projects, especially cross-border projects.

4. 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; and/or

(c)they shall result in an increase in the use of renewable energies.

Article 8

Projects of European interest

1. A number of projects on the axes for priority projects referred to in Article 7 which are of cross-border nature or which have significant impact on cross-border transmission capacity are declared to be of European interest. Those projects are set out in Annex I.

2. When projects are selected under the budget for the trans-European networks in accordance with Article 10 of Regulation (EC) No 2236/95, appropriate priority shall be given to projects declared to be of European interest.

3. When projects are selected under other Community cofinancing funds, particular attention shall be given to projects declared to be of European interest.

4. If there is a significant current or prospective delay in the progress of a project declared to be of European interest, the Commission may ask the Member States concerned to ensure that reasons for the delay are provided within three months.

As regards projects declared to be of European interest for which a European coordinator has been appointed, the European coordinator shall include in his report the reasons for the delay.

5. Five years after the completion of a project declared to be of European interest or one of the sections thereof, the Commission, assisted by the Committee referred to in Article 14(1), shall carry out an assessment of that project which includes its socio-economic impact, impact on the environment, impact on trade between Member States and impact on territorial cohesion and sustainable development. The Commission shall inform the Committee referred to in Article 14(1) of the result of that assessment.

6. For each project declared to be of European interest, and in particular for cross-border sections thereof, the Member States concerned shall take appropriate steps to ensure that:

—a regular exchange of relevant information takes place, and

—joint coordination meetings are organised as appropriate.

The joint coordination meetings shall be organised as necessary in the light of the particular requirements of the project, such as the project development phase, and the difficulties anticipated or encountered. The joint coordination meetings shall address, in particular, the evaluation and the public consultation procedures. The Member States concerned shall ensure that the Commission is informed of the joint coordination meetings and of the exchange of information.

Article 9

Implementation of projects of European interest

1. Projects of European interest shall be implemented rapidly.

No later than 12 April 2007, Member States shall, using as a basis a draft timetable provided to that effect by the Commission, submit to the Commission an updated and indicative timetable for the completion of those projects including, as far as available, details of:

(a)the envisaged passage of the project through the planning approval process;

(b)the timetable for the feasibility and design phase;

(c)the construction of the project; and

(d)the entry into service of the project.

2. The Commission, in close collaboration with the committee referred to in Article 14(1), shall present a report every two years on the progress of projects referred to in paragraph 1.

For projects declared to be of European interest for which a European coordinator has been appointed, the annual reports presented by the European coordinator shall replace those biennial reports.

Article 10

European coordinator

1. When a project declared to be of European interest encounters significant delays or implementation difficulties, including in situations where third countries are involved, the Commission may designate, in agreement with the Member States concerned, and after having consulted the European Parliament, a European coordinator. When necessary, Member States may also request that the Commission designate a European coordinator for other projects concerning trans-European energy networks.

2. The European coordinator shall be chosen, in particular, on the basis of his experience of European institutions and knowledge of issues relating to energy policy and the financing and socio-economic and environmental evaluation of major projects.

3. The decision designating the European coordinator shall specify how the coordinator is to perform his tasks.

4. The European coordinator shall:

(a)promote the European dimension of the project and the cross-border dialogue between the project promoters and the persons concerned;

(b)contribute to the coordination of the national procedures for consulting the persons concerned; and

(c)submit a report to the Commission every year on the progress of the project(s) for which he has been designated European coordinator and on any difficulties and obstacles which are likely to result in a significant delay. The Commission shall transmit that report to the Member States concerned.

5. The Member States concerned shall cooperate with the European coordinator in his execution of the tasks referred to in paragraph 4.

6. The Commission may request the opinion of the European coordinator when examining applications for Community funding for projects or groups of projects for which he has been designated.

7. In order to avoid an unnecessary administrative burden, the level of coordination must be proportionate to the costs of the project.

Article 11

More favourable context

1. In order to contribute to creating a more favourable context for the development of trans-European energy networks and their interoperability, the Community shall take account of Member States' efforts made in line with that objective, and shall attach the greatest importance to and promote as necessary the following measures:

(a)technical cooperation between the entities responsible for the trans-European energy networks, in particular for the proper functioning of the connections mentioned in points 1, 2 and 7 of Annex II;

(b)facilitating implementation of the authorisation procedures for projects on trans-European energy networks in order to reduce delays, especially as regards projects declared to be of European interest;

(c)the provision of assistance to projects of common interest from Community Funds, instruments and financial programmes applicable to those networks.

2. The Commission shall, in close collaboration with the Member States concerned, take all initiatives for promoting the coordination of the activities referred to in paragraph 1.

3. The measures necessary for the implementation of the activities referred to in points (a) and (b) of paragraph 1 shall be decided upon by the Commission in accordance with the procedure referred to in Article 14(2).

Article 12

Effects on competition

When projects are considered, their effects on competition and on security of supply shall be taken into account. Private financing or financing by the economic operators concerned shall be the main source of financing and shall be encouraged. Any competitive distortion between market operators shall be avoided, in accordance with the provisions of the Treaty.

Article 13

Restrictions

1. This Decision shall be without prejudice to financial commitments entered into by a Member State or by the Community.

2. This Decision shall be without prejudice to the results of the environmental impact assessment of projects, plans or programmes which define the future 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 14

Committee procedure

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 15

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 that report, attention shall be given to the implementation and progress made in the carrying out of priority projects which concern cross-border connections as mentioned in points 2, 4 and 7 of Annex II, as well as the detailed arrangements for their financing, especially as regards the contribution from Community funds.

Article 16

Repeal

Decision 96/391/EC and Decision No 1229/2003/EC are hereby repealed.

Article 17

Entry into force

This Decision shall enter into force on the 20th day following its publication in the Official Journal of the European Union.

Article 18

Addressees

This Decision is addressed to the Member States.