Environment law update: Energy 1

United Kingdom

Gas power stations

9.1 The DTI has announced that there are plans to lift restrictions on new gas fired power stations from October 2000, to ensure full competition in the electricity market and keep prices as low as possible. This comes earlier than expected and could therefore lead to the energy industry shifting towards gas, with the result that it may experience a fall in electricity prices if demand remains static and supply increases. The DTI is currently considering applications for up to six GW of generating capacity, more than 10% of the UK’s annual demand. The ban on new stations was imposed two years ago to protect the coal industry and to slow down the growth of gas-fired capacity which was driven by low capital and generating costs. (Inside Energy, 21 April 2000)

Energy consumer council

9.2 Proposals for the new Gas and Electricity Consumer Council to be established under the Utilities Bill have been issued. This body will replace the existing Gas Consumers’ Council and the Regional Electricity Consumers’ Committees to reflect the fact that many companies in this sector now supply both gas and electricity.(DTI News Release, 23 June 2000)

Energy efficiency

9.3 Proposals to amend the energy conservation requirements of Part L of the Building Regulations 1991 have been published which are intended to reduce carbon dioxide emissions from new houses by up to 25%. The amendments include improvements to the standards for building insulation, heating and hot water systems, internal and external lighting, air conditioning, ventilation systems and boiler efficiency. In addition, the application of these technical requirements would be widened so that more work on existing buildings is covered.(DETR News Release, 15 June 2000)

9.4 The Environment Minister, Sarah Boyack, has revealed new targets to reduce energy consumption by the NHS in Scotland. It is hoped that the reduction in energy bills will free up additional funds for healthcare, as well as reducing greenhouse gas emissions to help meet climate change goals. The Minister has also urged local authorities to follow this approach to tackle the impact of climate change. The national target aims to achieve a 2% reduction each year over the period 2001-2010, which, if achieved, could result in a 46% reduction in the energy consumed by the NHS in Scotland since 1990.(Scottish Executive News Release, 26 April 2000)

European Union

Energy efficiency

9.5 A Decision has been published adopting a multi-annual programme for the promotion of energy efficiency under the SAVE Programme to be implemented for the period 1998-2002. The Decision outlines how the various categories of energy efficiency actions and measures shall be financed under the SAVE Programme and states that the European Commission shall be responsible for the financial execution and implementation of the SAVE Programme. The Decision repeals Decision 96/737/EC and came into force on 19 April 2000. (OJ L79, 30 March 2000)

9.6 An amended proposal for a Directive on energy efficiency requirements for ballasts for fluorescent lighting has been published. The Directive aims to move the market away from magnetic ballasts, which are less energy efficient than electronic ballasts, and would cover both single component ballasts and those incorporated into luminaires. The amended proposal corrects and clarifies the original proposal, without modifying its general structure and objectives. At first reading in Parliament, nineteen amendments were adopted, however only fifteen have been accepted by the Commission and incorporated into the amended proposal. The Commission accepted that a strengthening of the proposal was needed to achieve any substantial contribution to reductions of carbon dioxide emissions.(COM(2000)181, 3 April 2000)

9.7 A Communication, “Action Plan to Improve Energy Efficiency in the European Community”, has been published in the light of the Kyoto Protocol aimed at reducing greenhouse gas emissions. Improved energy efficiency is an essential tool to meeting the EU’s Kyoto commitments economically. The Action Plan outlines policies and measures for the removal of market barriers in order that the full economic potential for energy efficiency improvements on present energy consumptions may be realised. Three groups of mechanisms for improving energy efficiency are proposed: measures to enhance the integration of energy efficiency into other Community non-energy policy and programme areas such as taxation and tariff policy; measures for re-focusing and reinforcing existing successful Community energy efficiency measures; and new common and co-ordinated policies and measures. The Commission claims that the measures outlined in the Action Plan are ambitious but realistic. (COM(2000)247, 26 April 2000)

Energy labelling

9.8 The rules for the operation of the voluntary Energy Star Programme, which is the subject of an agreement between the United States and the EU on the co-ordination of energy efficiency labelling schemes, are set out in the proposal for a Regulation on a Community Energy Efficiency Labelling Programme for office and communication technology equipment (COM(2000)18). Under the Programme, products meeting the relevant specification may be labelled with the Energy Star logo.(OJ C150E, 30 May 2000)

Renewable energy

9.9 A proposal for a Directive on the promotion of electricity from renewable energy sources in the internal electricity market (COM(2000)279) would aim to double the proportion of renewable energy to 12% of primary energy supply by increasing the share of electricity generated from renewable resources from 14% to 22% by 2010. Indicative national targets have been set and the European Commission may introduce binding targets if insufficient progress is made. Measures must be taken at Member State level to ensure that grid operators ensure priority access to the transmission and distribution of electricity from renewable sources.(European Commission, May 2000)

9.10 The Decision adopting a multi-annual programme for the promotion of renewable energy sources in the Community (646/2000/EC) has been published. The programme, known as the “Altener Programme” is to be implemented for the period 1998-2002, with the primary objectives being to encourage private and public investment in the production and use of energy from renewable sources and to help create the necessary conditions for implementing the Community Action Plan for renewable sources of energy. The Decision states that the European Commission shall be responsible for the financial execution and implementation of the Altener Programme, with the financial framework set at EUR 77m. Decision 98/352/EC is repealed.(OJ L79, 30 March 2000)