Last November, the European Commission presented its second Strategic Energy Review. The Commission has proposed a European energy security and solidarity action plan intended to complement the measures contained in the climate/energy package in order to ensure that all the EU's three core energy objectives are achieved: sustainable development, competitiveness and security of supply.
According to the Commission, the priorities of this second strategic review is to reach the goals of a 20% reduction in greenhouse gas emissions, a 20% share for renewable in final energy consumption and a 20% saving in future energy demand by 2020 as well as to deal with the Europe's energy supply security.
The Commission has listed almost twenty-five measures, including legislative proposals concerning oil stocks and energy efficiency.
The European Parliament has recently adopted Anne Laperrouze's report which is the European Parliament's response to the Commission’s Strategic Energy Review. The European Parliament has adopted several recommendations for the EU's future energy policy.
The European Parliament called for a common EU energy policy and stressed the need for the EU to speak with one voice with regard securing energy supply.
Taking into account the Russia-Ukraine gas dispute, the European Parliament has stressed the need for strengthening the security of supplies to all the EU member states.
The MEPs have called on the Commission to revise, before the end of this year, the 2004 Security of Gas Supply Directive to include "mandatory and effective national and EU emergency action plans" both at EU and national level and to provide for a common declaration of an emergency situation, the distribution of available supplies and infrastructure capacity among the affected countries, and the activation of emergency measures in less affected Member States in order to increase the amount of gas available to the affected ones. The European Parliament has therefore called for more energy solidarity.
The European Parliament has also called for an “energy security clause” in future trade, association, partnership and cooperation agreements with producer and transit countries in order to ensure that commercial disputes do not lead to supply disruptions. Such clause would prohibit any supply disruption due to commercial disputes.
The MEPs have deemed a trilateral agreement between the EU, Russia and Ukraine necessary to secure gas supply in the future.
The European Parliament called on Member States to be more ambitious in tackling climate change and to agree to cut greenhouse gas emissions by up to 80%, to improve energy efficiency by 35%. They also called for a 60% share of renewable energy in the EU's total energy consumption by 2050. Moreover, the MEPs called on the Commission and Member States to adopt a legally binding energy efficiency improvement target of at least 20% by 2020.
The Commission recalled on its Communication “Energy efficiency: delivering the 20% target” that the EU leaders committed themselves to reduce primary energy consumption by 20% by 2020. The Commission has pointed out that according to Member States energy efficiency action plans there is a gap between the Member States political commitment to energy efficiency and their actions. Therefore, the Commission has called on Member States to implement more effectively energy efficiency legislation.
The Commission proposed an Energy Efficiency Package containing: a proposal for a recast of the Energy Performance of Buildings Directive, a proposal for a revision of the Energy Labelling Directive and a proposal for a new Directive containing a labelling scheme for tyres.
The Community regulatory framework on labelling of energy-related products is provide by the 1992 Energy Labelling Directive which determines the conditions and criteria to the Commission to adopt requirements for the labelling of particular household appliances through the comitology procedure.
The Commission adopted a proposal for a Directive on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products which would recast the present Energy Labelling Directive.
The Energy Labelling Directive, presently, applies to household appliances but the Commission has proposed to extend its scope to energy-using products used in the industrial and commercial sectors and other energy-related products which have an impact on energy consumption during use, such as windows and insulation materials.
The new directive would introduce a uniform label indicating energy consumption/savings. The energy consumption and other information concerning the product would be measured in accordance with harmonized standards and methods. The precise information that must be displayed on the label as well as the precise modalities of the label would be defined on a product-by-product basis in implementing measures, through the comitology procedure.
According to the Commission the criteria for products to be eligible for public procurement or incentives differs among the EU Member State. Hence, the draft amending Directive would establish a harmonised base for public procurement and incentives provided by the EU and the Member States. Such implementing measures would establish label classes below which Member States would not be able to provide incentives to purchase, and public authorities would not be able to procure.
The UK Government believes that such measures would go against its policy of opposing the introduction of tax measures in non-tax legislation agreed by qualified majority voting. Therefore, it will seek to remove the Member States obligation not to provide incentives for products which are below energy efficiency levels. Moreover, it does not support the use of comitology to adopt such measures.
The UK Government is considering if EU wide standards for public procurement should be mandatory or just taken into account in purchasing decisions.
The draft Directive also defines the responsibilities of Member States and introduces new provisions for compliance checking. Member States would be required to monitor compliance with this Directive particularly the responsibilities of suppliers and dealers to properly display labels. Under the draft proposal, Member States are required to protect the label through market surveillance and enforce it through administrative law such as fines or banning of the product.
The UK Government believes that the directive measures will be cost-effective and make substantial energy savings. However, the precise costs and benefits would only be assessed when the implementing measures are presented.
The scope of the ELD would be extended therefore there would be an increase on implementing measures and consequently further administrative burden.
The manufactures would have to print labels and including them in product packaging and to test the products. The retailers would have to put labels on products displayed in shops. There would be an increase in operating cost to manufacturers and retailers due to energy labelling requirements which would be passed on to consumer.
The proposal is going through the co-decision procedure with QMV required at the Council.
The main objective of the 2002 Energy Performance of Buildings Directive is to promote the cost-effective improvement of the overall energy performance of buildings. The Directive requires Member States to set energy performance requirements for new and existing buildings with a floor area above 1000m2 that undergo major renovation as well as to provide information-based instruments such as energy performance certificates. Although it does not provide for EU-wide levels it requires Member States to lay down the concrete requirements and relevant mechanisms.
The 2004 Housing Act has transposed the Directive on the energy performance of buildings. The UK law goes significantly further than the minimum standards set out in the EU directive. For instances, whereas the directive requires a energy performance certificate to be produced every 10 years under the UK law a new certificate has to be made with every sale. The directive does not provide for the creation of a central government register of all energy certificates, nor provides for strict fines for non-compliance, but this is cover on the UK regulation.
As part of the Second Strategic Energy Review, the Commission has proposed a Directive on the energy performance of buildings whose main objective is to recast of Directive 2002/91/EC. The Commission wants to reinforce the energy efficiency legislation on buildings and enhance the role of energy performance certificates as well as inspection reports for heating and air-conditioning systems.
The Commission’s proposal extends the Directive's scope to all existing buildings and not just those over 1,000 square metres, the need to meet specified minimum energy performance requirements when they undergo a major renovation. It would introduce minimum energy performance requirements for systems, such as boilers, water heaters and air conditioning installed in buildings.
The Commission has also proposed more specific requirements concerning to the content of energy performance certificates. Under the Draft proposal, the certificate must be provided every time there is a property transaction. The Commission has stressed that the potential buyer and tenant of building must be provided with correct information about the energy performance of the building and practical advice about improving it. The certificate would have to provide information about the actual impact of heating and cooling on the energy needs of the building, on its primary energy consumption and on carbon dioxide emissions.
The directive provides for regular inspection, maintenance of boilers, heating and of air-conditioning systems by qualified personnel. It extends the requirement on Member States to set up regular inspections of the boiler heating systems, which presently applies to those with an output between 20kW and 100kW, to include all boilers with an output greater than 20kW.
The Commission has also introduced a requirement for an inspection of boilers and air conditioning systems report to be handed over to the owner or tenant of a building in order to inform them about the inspection result and recommendations for cost-effective improvements. Member States would be required to ensure that these are carried out independently by accredited experts.
Member States would be required to introduce an independent control system for the energy performance certificates and for the reports on the inspection of heating and air-conditioning systems, that is, via random sampling checks of the quality.
Moreover, Member States would be required to establish penalties for infringements.
Presently, Member States are required to set their minimum energy performance requirements using their own calculation methodology in order to achieve the cost-optimal levels determined by them. However, the Commission has proposed that the minimum energy performance requirements set by Member States should be progressively aligned with cost-optimal levels calculated in accordance with a methodology to be developed by the Commission by the end of 2010. The Commission will put forward a comparative methodology for calculating cost optimal levels of minimum energy performance requirements. Member States would be required to use this methodology in order to calculate the cost optimal requirements using variables as fixed by them. The results would be then compared with the actual requirements fixed in the Member State, indicating how close the member state requirements are to cost-optimal levels.
Under the draft proposal, from June 2014, Member States would no longer be able to provide incentives for the construction or renovation of buildings which do not comply with minimum energy performance requirements achieving the results of the comparative calculation. Moreover, from June 2017, Member States are required to ensure that these minimum energy performance requirements achieve the results of the calculation.
Iain Wright, the Parliamentary Under- Secretary of State at the Department for Communities and Local Government, has said to the European Scrutiny Committee that the UK has already adopted the majority of the proposed measures. However, Iain Wright has pointed out that the introduction of cost-optimal energy performance levels, and the provision of control systems for energy performance certificates and inspections of heating and air conditioning systems will have financial implications. According to the minister although the financial implications have not yet been quantified they are likely to be significant. However, the Government is planning to produce an Impact Assessment once the proposals have been agreed. Obviously, the ESC is concerned with such suggestion since an Impact Assessment is required before any agreement is reached.
Under the Commission's proposal the new provisions would come into forece by the end of 2010 for buildings occupied by public authorities, and by the end of January 2012 for all the other buildings. The minister deemed the need for measures applying to buildings occupied by the public to be in place by the end of 2010 as “extremely challenging.”
The proposal is going through the co-decision procedure with QMV required at the Council.
Last February, the Energy Council welcomed the energy security and energy efficiency package presented by the Commission. It adopted general conclusions on the Strategic Energy Review. The EU´s energy ministers stressed “The need for Europe to act together to deliver sustainable, secure and competitive energy.” They have reiterated their support for the six priority infrastructure actions outlined in the Second Strategic Energy Review: the Southern gas corridor, diversifying and improving liquefied natural gas (LNG) supply for Europe, effective interconnection of the Baltic region, the Mediterranean Energy Ring, adequate North-South gas and electricity interconnections within Central and South-East Europe, and the North Sea and North West Offshore Grid.
On 19-20 March, the European Council endorsed the broad initiatives set out in the Second Strategic Energy Review (SER). The EU leaders called for energy infrastructures and interconnections to be developed.
Consequently, they invited the Commission to present the detailed actions necessary to realise the priority areas identified in the SER, such as the Southern Gas Corridor, a diverse and adequate LNG supply for Europe, effective interconnection of the Baltic region, the Mediterranean Energy Ring, adequate North-South gas and electricity interconnection within Central and SE Europe and the North Sea and North West Offshore Grid.
Moreover, they called on the Commission to present in 2010 its proposal for a new EU Energy Security and Infrastructure Instrument. Such instrument would be aimed at financing the above priority projects and replace the Trans-European Energy Networks (TEN-E) programme.
The EU leaders stressed that “The recent gas crisis has demonstrated the urgent need to establish adequate crisis mechanisms in the EU as well as to work to obtain clear guarantees from suppliers and transit partners that supplies will not be interrupted.”
The European Council called on the Council to examine by the end of 2009 the impending Commission proposals to revise legislation on the security of gas supply.
The EU leaders called for a new crisis mechanism to deal with disruptions of supply in order to ensure “the preparedness of all actors, including the energy industry, transparency and prior information through the development of EU and regional plans for security of supply; solidarity among Member States through the development of regional plans; and improved assessment and coordination through the redefinition of the threshold for deciding actions at Community level.”
The European Council also called on the Council to agree, before the end of the year, on the proposals contained in the Energy Efficiency Package and it has invited the Commission to rapidly propose a revision of the Energy Efficiency Action Plan.
Moreover, the EU leaders have stressed “the importance of diversifying sources, fuels and routes of energy supply, the European Council underlines the increasingly important part played by energy in the EU’s external relations.” Hence, they called on the Commission to propose, by the end of the year, concrete action on the development of the Southern corridor including a mechanism to facilitate access to Caspian gas.
According to the European Council “It is of particular importance for the EU and its Member States to continue delivering consistent messages (”speaking with one voice”) to supplier and transit countries.”