(1)

Subsequent to the adoption of Decision No 1229/2003/EC of the European Parliament and of the Council of 26 June 2003 laying down a series of guidelines for trans-European energy networks (3), the need has arisen to integrate fully the new Member States and the accession and candidate countries into those guidelines and to adapt further, as appropriate, those guidelines to the new proximity policy of the European Union.

(2)

The priorities for trans-European energy networks stem from the creation of a more open and competitive internal energy market as a result of the implementation of Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity (4) and Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas (5). Those priorities reflect the conclusions of the Stockholm European Council of 23 and 24 March 2001 concerning the development of the infrastructure needed for the operation of the energy market. A special effort should be undertaken to achieve the objective of making greater use of renewable energy sources as a contribution to further a sustainable development policy. However, this objective should be achieved without creating disproportionate disturbances to the normal market equilibrium. Full account should also be taken of the objectives of the Community's transport policy and, specifically, the opportunity to reduce road traffic by using pipelines.

(3)

This Decision serves to move closer towards the target for the level of electricity interconnection between Member States which was agreed at the Barcelona European Council of 15 and 16 March 2002, and thus to improve network reliability and integrity, and ensure that there is security of supply and that the internal market functions properly.

(4)

As a rule, the construction and maintenance of energy infrastructure should be subject to market principles. This is also in line with the common rules for the completion of the internal market in energy and the common rules on competition law which aim at the creation of a more open and competitive internal energy market. Community financial aid for construction and maintenance should therefore remain highly exceptional, and such exceptions should be duly justified.

(5)

Energy infrastructure should be constructed and maintained so as to enable the internal energy market to operate efficiently, with due regard to existing procedures for consulting the people affected, without detracting from strategic and, where appropriate, universal service criteria and public service obligations.

(6)

In the light of potential synergies between natural gas networks and olefin networks, due importance should be placed on the development and integration of olefin networks in order to meet the olefin gas consumption needs of industries in the Community.

(7)

The priorities for trans-European energy networks also stem from their growing importance for securing and diversifying the Community's energy supplies, incorporating the energy networks of the new Member States, accession and candidate countries, and ensuring the coordinated operation of the energy networks in the Community and in neighbouring countries after consulting the Member States concerned. Indeed, the Community's neighbouring countries play a vital role in its energy policy. They supply a major part of the Community's natural gas requirements, are key partners for the transit of primary energy to the Community and will progressively become more important players in its internal gas and electricity markets.

(8)

Among the projects relating to trans-European energy networks, it is necessary to highlight the priority projects, which are very important for the operation of the internal energy market or the security of energy supply. In addition, a declaration of European interest should be established for those projects receiving the highest priority, as well as enhanced coordination, where appropriate.

(9)

For the purpose of the gathering of information required under this Decision, the Commission and the Member States should, as far as possible, use information on projects declared to be of European interest which is already available, in order to avoid duplication of efforts. For example, such information may already be available in the context of Council Regulation (EC) No 2236/95 of 18 September 1995 laying down general rules for the granting of Community financial aid in the field of trans-European Networks (6), in the context of other Community legislation which can provide cofinancing to trans-European network projects and the decisions approving individual projects under such legislation, or in the context of Directives 2003/54/EC and 2003/55/EC.

(10)

The procedure for identifying projects of common interest in the context of trans-European energy networks should ensure the smooth application of Regulation (EC) No 2236/95. That procedure should distinguish two levels: a first level establishing a restricted number of criteria for the identification of such projects, and a second level describing the projects in detail, referred to as ‘specifications’.

(11)

Appropriate priority for funding under Regulation (EC) No 2236/95 should be given to projects declared to be of European interest. Member States should, when submitting projects under other Community financial instruments, give particular attention to projects declared to be of European interest.

(12)

For most projects declared to be of European interest, a significant current or prospective delay could be a delay expected to last between one and two years.

(13)

Since the project specifications are liable to change, they can only be given by way of indication. The Commission should therefore be empowered to update them. Since the projects may have considerable political, environmental and economic implications, it is important to find the appropriate balance between legislative oversight and flexibility in identifying projects that deserve potential Community support.

(14)

When projects declared to be of European interest, sections of such projects or groups of such projects encounter implementation difficulties, a European coordinator could act as a facilitator by encouraging cooperation between all parties concerned and by ensuring that adequate monitoring is carried out in order to keep the Community informed of progress. The services of a European coordinator should also be made available to other projects, at the request of the Member States concerned.

(15)

Member States should be invited to coordinate implementation of certain projects, in particular cross-border projects or sections of cross-border projects.

(16)

A more favourable context for the development and construction of trans-European energy networks should be created, mainly by providing a stimulus for technical cooperation between the entities responsible for networks, by facilitating the implementation of procedures applicable for network projects in the Member States in order to reduce delays and by mobilising as appropriate the funds, instruments and financial programmes of the Community available to network projects. The Community should support Member States' measures taken in pursuit of that objective.

(17)

Since the budget allocated to the trans-European energy networks is mainly intended to finance feasibility studies, it is the Community Structural Funds, financial programmes and instruments that could, if necessary, enable funding to be provided for such interconnection networks, in particular interregional networks.

(18)

The identification of projects of common interest, their specifications and priority projects, in particular those of European interest, should be without prejudice to the results of the environmental impact assessment of the projects, plans or programmes.

(19)

The measures necessary for the implementation of this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (7).

(20)

The Commission should periodically draw up a report on the implementation of this Decision.

(21)

Information to be exchanged or provided to the Commission under the provisions of this Decision is likely to be held, to a large extent, by companies. Therefore, Member States may have to cooperate with such companies in order to obtain that information.

(22)

Since this Decision covers the same subject matter and scope as Council Decision 96/391/EC of 28 March 1996 laying down a series of measures aimed at creating a more favourable context for the development of trans-European networks in the energy sector (8) and Decision No 1229/2003/EC, those two Decisions should be repealed,

1.

in electricity networks, to:

2.

in gas networks (transporting natural gas or olefin gases), to:

(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.

1.

for both electricity and gas networks:

2.

for electricity networks:

3.

for gas networks:

(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.