Committee Reports > List of Committees > Joint > 1975 > Committee on the Secondary Legislation of the European Communities > Report No. 04 - Energy Policy

REPORT

I. The Joint Committee has considered the following documents—

*(a) Towards a New Energy Policy Strategy for the European Community

COM (74) 550—26.6.74;

(b) Council Resolution of 17th September, 1974

R/2391/74;

(c) Council Resolution of 17th December, 1974

R/3649/74;

(d) Council Directive (68/414/EEC)

—20.12.68;

(e) Council Directive (72/425 /EEC)

—19.12.72, and

(f) Proposal for a Council Directive obliging Member States to maintain minimum stocks of fossil fuel at thermal power stations,

and desires to report thereon to both Houses of the Oireachtas.

2. THE JOINT COMMITTEE,

HAVING REGARD to the objective stated in the Resolution of the Council of 17th September 1974 of “reducing the rate of growth of internal consumption by measures for using energy rationally and economically without jeopardizing social and economic growth objectives”;

HAVING REGARD to the objectives stated in the Resolution of the Council of 17th December 1974 that

(a) implementation of a Community Energy Policy involves the drawing up of quantitative joint objectives representing guidelines for national policies and serving as a significant guide for energy producers and consumers in the Community;

(b) each of the Member States should be able, according to its own resources and constraints, to contribute to the attainment of these objectives;

(c) the continuation of a high degree of Community dependence on energy sources, especially oil, imported from third countries, would, under the present and foreseeable conditions on the world market, be such as to jeopardize the economic balance of the Community and economic and social progress and that it is therefore necessary to reduce this dependence as much as possible;

(d) the rate of growth of energy consumption for the Community as a whole should be reduced in order to achieve by 1985 a level of 15% below the January 1973 estimates, bearing in mind that this percentage may be different for the various Member States and without ruling out the possibility of setting specific objectives, depending on circumstances, for saving energy in the shorter term;

(e) the pattern in energy consumption should be altered by progressively increasing the use of reliable energy sources and by relying more and more on electricity as nuclear energy in particular is developed;

(f) the level of the Community’s coal production under economically satisfactory conditions should be maintained, while increasing the possibilities of importing coal from third countries and raising the production of brown coal and peat;

(g) community research and production of land and underwater deposits of natural gas should be stepped up;

(h) nuclear power stations be provided with an installed capacity of at least 160 GWe and, if possible, of 200 GWe by 1985.

IS OF OPINION that-

in regard to General Community Policy

(i) there is an overreliance on external sources of energy inasmuch as uranium and to some extent non-community gas and coal are to substitute for oil as sources of energy;

(ii) even if nuclear energy is utilised to the extent envisaged its benefits would not be available to Ireland for a considerable time as, it is understood that, even if construction of a nuclear station is finally approved, this country could not produce energy from this source until 1983 at the earliest;

(iii) Whereas the objective of reducing the rate of growth of internal consumption by measures for using energy rationally and economically without jeopardizing social and economic growth objectives is important in discouraging wasteful uses of energy, nevertheless, the proposals to reduce the growth rate of energy demand could have a more severe effect on this country than on any other Member State. As Ireland is relatively underdeveloped by overall EEC standards and has a different pattern of usage and consequently relies to a lesser extent on energy for specific purposes, e.g. central heating, the amount of energy on which a cut-back could be made is correspondingly less. The expansion of industry to absorb manpower released from the agricultural sector has necessitated an increasing annual rate of growth of energy needs significantly higher than that projected for the Community as a whole and any reduction in this growth could have a serious effect on employment and development;

(iv) as a consequence of subparagraphs (ii) and (iii) there is an imperative need to review our situation in regard to energy policies; that such policies should take cognisance of our needs within the general framework of Community policy, and in particular the preservation of employment, the expansion of the economy, the protection of the environment and the raising of standards of living to Community level.

3. Directive 68/414/EEC imposed an obligation, subject to certain exceptions, on Member States to maintain at all times their stocks of petroleum products at a level corresponding to at least 65 days average daily internal consumption in the preceding calendar year. On 4th November 1974 the Minister for Transport and Power made regulations entitled European Communities (Minimum Stocks of Petroleum Oils) Regulations, 1974 giving effect to the Directive as from 18th November 1974. As a contingency stock equivalent to 10 days supply is held at all times at Whiddy Island the regulations require oil importers and certain large oil consumers to hold a 55 days stock.

Directive 72/425/EEC increased the 65 days requirement to 90 days with effect from 1st January 1975. The Joint Committee understands that the question of bringing the aggregate of stocks to be held in this country up to the required level is at present the subject of discussion between the Department of Transport and Power and interested parties.

The proposal for a Council Directive obliging members to maintain minimum stocks of fossil fuel at thermal power stations provides that members shall oblige electricity producers to maintain permanently a level of stocks of fossil fuel at their power stations to ensure a continuous electricity supply for a period of at least 30 days. This level may, however, be reduced by an amount corresponding to 25% of such petroleum products held by electricity producers under the provisions of Directive 72/425/EEC. In addition in the case of power stations fueled by natural gas, lignite or peat the deposit may be considered in certain cases as station stock. The E.S.B. is the only electricity producer in this country and the Joint Committee understands that its storage capacity is such as to enable it to comply with the provisions of the proposed Directive.

One of the draft instruments attached as annexes to the document “Towards a New Energy Policy for the European Community” has now been approved by the Council of Ministers under the following Title—

Council Directive on the restriction of the use of natural gas in power stations (R/22/75).

It includes a provision that the competent authority of a Member State can authorise the use of natural gas in power stations where such a course is necessary for economic reasons. As this escape clause could be used to utilise natural gas for the generation of electricity, the Joint Committee is of opinion that the question of the use of such a valuable source of energy for this purpose should receive the most careful consideration.

The Joint Committees draws attention to the urgent and far-reaching importance of the energy situation and recommends that it should be the subject of a general debate as soon as possible in each House.

12th February, 1975.

(Signed) CHARLES J. HAUGHEY,

Chairman of the Joint Committee.

* A Summary of this document is attached in the Schedule.