November Energy Council

On Monday 29 November 2004, Energy Council reached a political agreement on the Draft Directive on security of electricity supply and infrastructure investment, which was first submitted by the Commission to the Parliament and Council in December 2003.

The proposal's primary objective is to ensure that Member States develop an effective policy for guaranteeing security of electricity supply and to promote extra electricity capacity, something that previous Directives failed to do.

At the same time, it allows Member States considerable flexibility when deciding what final form the policy should take.

The European Parliament voiced its doubts about whether the proposal would provide added value compared to existing legislation, and released a Working Document asking the Commission a number of key questions. So far, no answers have been received.

The Council found the proposal's central objective of promoting efficient management of supply and demand in the internal market acceptable, but thought the measures proposed to achieve it were too complex and controversial. So, under the impetus of the Dutch Presidency, Council made significant amendments to the Commission's Proposal. These amendments, which were agreed at the Energy Council of 29 November 2004, aim to reduce the Commission's power on decisions regarding
infrastructure and investments.

While the Energy Council was going on, a public hearing organised by the Parliament's ITRE Committee also took place. During the hearing, energy experts generally agreed with the Council's conclusions, but official reactions from MEPs will be articulated in a new Working Document to be released in 2 or 3 months. This document will take into account the comments made by all participants in the public hearing.

For more details concerning the November Energy Council and subsequent Energy Committee Meetings, you can surf the Dutch Presidency website on http://www.eu2004.nl