Explanatory Memorandum to COM(2015)496 - European statistics on natural gas and electricity prices - Main contents
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| dossier | COM(2015)496 - European statistics on natural gas and electricity prices. |
|---|---|
| source | COM(2015)496  |
| date | 18-11-2015 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The Commission (Eurostat) collects data on natural gas and electricity prices for industrial end-users (final non-household customers). Industrial end-user prices have been regulated by legislation since 1990, and are currently regulated by Directive 2008/92/EC, which repealed Directive 90/377/EEC. National authorities collect price data for household customers on the basis of a voluntary agreement. The national authorities have informed the Commission that, owing to financial and human resource constraints, several data providers (natural gas and electricity companies) are questioning whether to continue collecting this data.
At the European Council on 22 May 2013 on energy and taxation, heads of state and government had stated that the EU’s energy policy should aim to provide households and companies with affordable and competitively priced energy in a safe and sustainable manner. Consequently, the Commission was asked to provide analysis of the ‘composition and drivers of energy prices and costs in Member States’. This analysis was to focus on the impact of energy prices on households, small and medium-sized enterprises and energy-intensive industries, and, more broadly, examine the EU’s competitiveness in relation to its global economic counterparts.
The Commission, having identified that additional detailed pricing data were needed for this analysis, collected the required information from all 28 EU Member States on the basis of a voluntary arrangement. A report including detailed analysis of the components of natural gas and electricity prices was presented to the Council in January 2014.
In 2014, policymakers made several requests for more detailed official statistics on natural gas and electricity prices. At its meeting on 13 June 2014, the Transport, Telecommunications and Energy (TTE) Council acknowledged the negative impact of high and rising energy prices and costs on Europe’s global competitiveness and on the standard of living of individual customers. For this reason, the TTE Council called for a ‘follow-up review by the Commission on energy prices and costs and on customers by 2016’.
The European Commission adopted on 25 February 2015 the Energy Union Package. One of the actions of the Energy Union Package under the chapter of the internal energy market defines an analysis of energy prices and costs to be carried out in 2016 and every 2 years thereafter.
An additional set of sub-components on taxes and levies and network prices on natural gas and electricity has been drawn up in order to reflect the goals of the Energy Union Package and, in particular, addresses the need for greater transparency on energy costs and prices referred to in action point 8 of the Package.
• Consistency with existing policy in the area
The June 2014 European Council reconfirmed the need to strengthen the EU’s single market, increase competition and transparency on the gas market and complete the integration of the European energy market. The Council also called for further analysis of market integration with regard to energy efficiency and security.
• Consistency with other EU policies
The Energy Union Package was adopted by the Commission on 25 February 2015. In this context, the Commission will, from 2016 onwards, provide data on energy prices and costs (including taxes and subsidies). This breakdown of energy prices and costs will enable the Commission to monitor the situation on the energy market.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
Article 338(1) of the Treaty on the Functioning of the European Union.
• Subsidiarity (for non-exclusive responsibilities)
The Commission (Eurostat) collects national data on natural gas and electricity prices using a methodology that enables price comparisons between Member States. This price data must be collected at EU level to ensure the data are reliable and comparable across all EU Member States and to aggregate data for the EU and for the euro area. At national level, price data is collected by the relevant national authorities and is then disseminated by Eurostat.
• Proportionality
The proposed legal act will cover the collection of data on natural gas and electricity prices for the household and non-household sectors. In the past, price data for the industrial sector were collected in accordance with Directive 2008/92/EC, but price data for the household sector were collected on the basis of a voluntary agreement. The growing complexity of the internal energy market make it increasingly difficult to obtain reliable and up-to-date price data for natural gas and electricity in the absence of legally binding obligations to provide such data, in particular for the household sector. The proposed changes compared to the situation under Directive 2008/92/EC consist in covering data that are currently collected voluntarily by the proposed legal act. This does not go beyond what is necessary to achieve the objectives set.
• Chosen legal instrument
Using the legal instrument of a Regulation of the European Parliament and of the Council should ensure prompt, smooth and harmonised implementation throughout the EU.
3. FINDINGS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
The existing applicable legislation (Directive 2008/92/EC) covers only the collection of natural gas and electricity price data for the industrial sector. The methodology used for these price surveys, introduced in 2007, has proven effective.
• Stakeholder consultations
Members of the Energy Statistics Working Group (ESWG) were consulted by Eurostat in writing in January 2015. Their comments and recommendations were taken into account. The written consultation of ESWG resulted in a reduction in the number of sub-components of taxes and levies (from 11 to 6 sub-components) and a substantial reduction in the data on electricity and natural gas network prices to be reported. Members of the Directors of Sectoral and Environmental Statistics and Accounts (DIMESA) group were consulted in writing in May and June 2015 and this consultation led to an extension of the deadlines for requesting a derogation on the reporting of price data components and/or sub-components. For natural gas prices in the household sector, a threshold was established so that countries where household consumption of natural gas is low could be exempted. The amended draft was presented at a DIMESA group meeting on 11 June 2015 and an ESWG meeting on 24 June 2015
• Collection and use of expert advice
Eurogas and Eurelectric, two associations active in the gas and electricity sectors, were consulted by Eurostat on the feasibility of collecting the data. Their recommendations on the availability of information on sub-components of the network prices of electricity and natural gas were taken into account.
• Regulatory fitness and simplification
The administrative burden for the reporting authorities and the Commission will not increase significantly as most of the price data concerned is already reported voluntarily. Although a few sub-components of taxes and network prices have been added to the list of data to be collected, the reporting frequency has been reduced from every year to once every three years. The overall administrative burden is therefore likely to remain unchanged.
• Impact assessment
No impact assessment was carried out for this proposal as it will not significantly change the activities of either the reporting authorities or the Commission. The detailed reasoning behind the decision not to carry out an impact assessment is set out in the Commission roadmap which has been published on the Commission's website: ec.europa.eu/smart-regulation/impact/planned_ia
• Fundamental rights
Not applicable.
4. BUDGETARY IMPLICATIONS
The proposal has no implications for the EU budget. As the activities will not increase significantly, there will be no additional costs.
5. OTHER ASPECTS
• Implementation plans and monitoring, evaluation and reporting arrangements
None.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
Reliable, timely and complete statistical data on natural gas and electricity prices is an important information source for European policy makers. As the data collection on gas and electricity prices for the household sector is carried out on a voluntary agreement, individual data providers (electricity or gas companies) might decide not to continue this anymore. As the data collection will be covered under a legal framework, the continuation of the reporting will be guaranteed.
In order to analyse the main price drivers for electricity and natural gas it is insufficient to look only at final gas and electricity prices and at network, taxes and product prices. In order to identify the price drivers, a set of variables (sub-components) has been added to the data collection that will allow a more detailed analysis on data that is collected based on a harmonised methodology.
The proposed act concerns a European Economic Area (EEA) matter and should therefore extend to the EEA.