13 November Energy Council

Date: 19/11/1998

ENERGY Commissioner Christos Papoutsis predicted that 60&percent; of the EU's electricity market would be opened to competition when the staged liberalisation of the market starts in February. This would rise to 74&percent; by 2007, he added in a report to ministers.

MINISTERS agreed changes to existing rules on the oil stocks which governments must keep, updating a 1968 directive which obliges them to maintain 90 days of reserves. The changes reduce the obligation on oil producers to keep stocks. Governments will also be allowed to store oil in other EU countries and count this as part of their national reserves. Greece was allowed a three-year exemption from fulfilling the specific demands for reserves of aviation fuel.

IN SPITE of French reservations, ministers adopted a four-year framework for the energy sector, which lasts until 2002, with a budget of 170 million ecu. They also cleared four elements of the overall framework, covering the analysis of the energy sector, international cooperation, the promotion of clean technologies for solid fuels, and nuclear safety: the ETAP, Synergy, Carnot and Sure programmes. Pending decisions from the European Parliament, ministers could only reach political agreement on the Altener programme to boost renewable energy and the Save programme on energy efficiency.

THE Commission was urged to come forward with an action plan for energy efficiency examining all options, inside and outside the energy sector, for improvements. The Commission estimated that it would be possible to boost energy efficiency by 1&percent; a year, leading to an 18&percent; improvement by 2010 compared with consumption in 1995. Ministers described this target as ambitious, warning that national circumstances and energy price levels could affect its feasibility.

DURING a debate on boosting renewable energy, ministers warned that liberalisation of energy markets and the falling price of fossil fuels could increase the barriers to sustainable energy.

A STATEMENT on the delicate issue of oil and gas transportation was adopted. Many new reserves, especially in Central Asia, are found in landlocked countries, with pipeline routes becoming a major international issue. The ministers' statement supported multiple pipeline routings and diversification of supply sources, but added decisions on specific pipelines were commercial and should rest with companies.