The
North Sea oil industry could face ruin because of the potentially enormous cost
of applying new European rules on offshore working time, industry sources
warned last night. A House of Lords report said the UK Offshore Operators
Association was "very concerned" at the possibility that European
Court of Justice rulings limiting doctors' hours could be interpreted to include
offshore oil-and-gas rig crews as well. The
rulings stipulate that time spent sleeping at work by doctors on call counts as
working time and there must be immediate compensatory rest for those on call
who are summoned back to work to deal with emergencies, even when they have been
able to rest. The report by the European Union committee of the Lords said
employers feared "this would have a profoundly damaging impact on staffing
requirements and operating costs". Management believed the time spent
onshore by rig crews more than covered the rest periods to which they were
entitled. A senior offshore source said a strict application across the board of
the principles outlined for doctors might require the double-manning of offshore
installations, at least for specialists such as medics, senior electricians and
engineers. "A wide and extreme interpretation of the court's judgments
could be ruinously expensive," the source said. The Department of Trade and
Industry told the committee in evidence that the rulings "might well pose
problems" for offshore workers. (North of
The
draft EU Constitution gives
The European Commission has finally agreed a new Energy Tax Directive which widens the scope of the EU’s
minimum rate of taxation system, previously limited to mineral oils, to include
all energy products including coal, natural gas and electricity. In
1997, the Commission proposed a directive on the taxation of energy products
with a view to extending the scope of the directives on mineral oils to various
other energy products such as coal, electricity and natural gas. However,
ministers have failed to reach agreement until now. In
particular, the European Commission says the new Directive will: -
reduce distortions of competition that currently exist between Member States as
a result of divergent rates of tax -
reduce distortions of competition between mineral oils and the other energy
products that have not been subject to Community tax legislation up to now -
increase the incentive to use energy more efficiently (so as to reduce
dependency on imported energy and cut carbon dioxide emissions) -
allow Member States to offer companies tax incentives in return for specific
undertakings to reduce emissions. (Croner
OIL and gas industry leaders
have urged the government to reject the proposed "Energy Chapter" in
the controversial draft EU constitution. In a letter to Tony Blair, signed
by energy chiefs including Wood Group's Sir Ian Wood, the Oil & Gas Industry
Liaison Team (ILT) said the proposed policy would introduce new uncertainties
for offshore operators, and failed to recognise
When
we began to develop the
The EU stripped member countries of their full power to negotiate airline deals with America, and on Wednesday it proposed a near takeover of the British and French nuclear industries. As usual, there were good reasons for these moves, but the cumulative effect of such "power-grabs" is the relentless emasculation of the British government. (Daily Telegraph Ambrose Evans-Pritchard in Brussels 09/11/2002). One of the EU s main aims in the enlargement process has been to get the candidate countries to close their nuclear power stations, the likely consequence of which is that they would become dependant on Western suppliers instead. The Commission has therefore put forward a series of propositions on nuclear safety by means of which it proposes to deal with the eighteen reactors which will henceforth be in EU territory. The EU has already demanded the closure of three nuclear stations which it considers incapable of being modernised , Bohunice in Slovakia, Kozloduy in Bulgaria and Ignalina in Lithuania. Brussels expects to require that the accession treaties of these countries contain a commitment to close these power stations. This, apparently, is not enough: Brussels wants a global approach to the issue, and wants to have the power to survey all the nuclear stations in the new member states. It also wants the requirement that the new member states have enough money to dismantle these stations if they should suddenly prove financially unviable. According to the energy commissar, Loyola de Palacio, all this is being done to make a re-launch of nuclear power in Europe possible . [Arnaud Leparmentier, Le Monde, 5th November 2002]
A key objective in the (EU's) economic reform process is liberalising gas and electricity markets. But the French, whose state-owned power giant Electricite de France is active in other countries' energy markets -- for instance, supplying power to 10 Downing Street, Blair's home, through its London Electricity -- have so far blocked a deal. Neither Jospin nor Chirac will want to be seen conceding any national interest at this time, and the best that can be hoped for is that they will agree to allow outside competition for power supplies to businesses in France, but not for household supplies. (CNN 18/10/02)
France blocked a compromise plan to open up European gas and energy markets, in a move explained by European diplomats due to electoral reasons. The failure of the EU finance ministers to reach agreement on the issue leaves the decision to the EU leaders, meeting in Barcelona on March 15-16. (EUobserver.com 6/3/02)
The EU Commission has sued several oil companies who are licensees to the gas fields Norwegian Shelf with the clear aim of lowering the price of Norwegian gas. The development of the gas fields have demanded enormous investments which have been carried by the Norwegian state. In actual fact, the EU Commission's attack on the Norwegian gas sale now threatens the value of the entire Norwegian oil capital. (EUobserver.com 20/11/01)
Britain's Europe minister, Peter Hain, said that it is "unacceptable" for France and Germany to hold up full liberalisation of gas and electricity markets while their own companies want "a free ride into the British market. In an interview with politics website Epolitix.com, Hain said "We want to see economic reform pushed forward. Europe is not competitive enough. Energy liberalisation, for instance, gas and electricity, must be given a priority." "Germany and France have expressed major reservations about it and we are trying to address those, because it's important that they are overcome," he added. Hain's attack comes as Electricité de France, the French state-owned power group might be taking over Seeboard, the south-east England-based electricity supplier. "I do give a very clear message to French companies like EDF and German companies like E.ON. The French company EDF is effectively state controlled and owned. They are able to come into the British market and bid for Seeboard, or London Electricity, or in E.ON's case Powergen. But British companies like Centrica and others are not able to go into France and Germany and form joint ventures, joint partnerships and make acquisitions," said Hain to Epolitix com. "Now that's unfair. There's no reciprocity and I don't think it's acceptable for Germany and France to hold up energy liberalisation or block it and think that their companies can have a free ride into the British market," he added. (EUobserver.com 24/7/01)
Britain's oil reserves could be taken over by the European Union in times of international energy shortage under draft legislation being drawn up in Brussels, writes Sunday Times. This article has attracted much notice in Norway, and the question has been raised: "Can Norway, as an EEA member, be forced to hand over control with her North Sea oil?" According to leaked EU documents, Britain's oil-producing status could be exploited for the benefit of Europe as a whole. It means that instead of being able to sell British oil on the open market, firms such as BP, one of the world's leading fuel retailers, would be required to divert supplies into a central pool to help countries such as Greece and Portugal if they are experiencing supply problems, writes the Sunday Times. The legislation proposed by the European Commission says that reserves held by member states must be brought into the "community framework" and should in an emergency be distributed throughout the European Union to ensure that supplies are equally shared. The draft says that there should be "a plan which will enable petroleum stocks to be communitarised within a short time span." (EUobserver.com 11/4/01)
The Court of Justice in Luxembourg on Tuesday approved German rules protecting electricity produced from renewable sources such as wind energy. The Court held in its remarkable decision that the German rules were capable, at least potentially, of hindering intra-Community trade. However, the rules aimed in particular at protecting the environment by contributing to the reduction of emissions of greenhouse gases. Thus the objective of those rules appears amongst the priority objectives of the Community. In those circumstances and in the current state of Community law applicable to the electricity market, the Court held that the German rules were not contrary to the free movement of goods, the Court said. (EUobserver.com 14/3/01)
A key plank in EU enlargement policy is persuading candidate countries to close down their independent sources of energy. This makes them economically and politically dependent on the West - just as they were dependent on the Soviet Union for their energy supplies in the old communist days. Thus, on 31st December, representatives of Lithuania and the European Commission signed a memorandum on funding for the closure of the nuclear power plant at Ignalina. The memorandum, which is part of the PHARE assistance program, provides for a grant of 10 million euros ($10.12 million) in the year 2000 to prepare the first unit of Ignalina for a 2005 shutdown. [Radio Free Europe Newsline, 3rd January 2000]
Analysts said that euroscepticism is increasing in Lithuania mainly because of pressure by the EU for the early shutdown of the Ignalina nuclear power plant, which provides 80 percent of the country's electricity. (VILNIUS, Oct 6 1999 AFP)
The Environmental Audit Select Committee condemned the Treasury's reasons for not reducing VAT on energy saving measures. The Treasury says that such a reduction would require EU agreement. The committee pointed out a reduction had been made in Belgium without first consulting the EU. (Daily Telegraph 11 March 1998)
The Treaty of Paris prohibits, in respect of coal, any subsidies or aids granted by states in any form whatsoever. The UK's coal industry has no subsidies. In Germany, Spain and France the industry is wholly dependent on state aid. In South Wales Celtic Energy faces subsidised exports from two German producers who undercut their subsidy free coal. The Germans have not been authorised by the Commission to export their coal that is sold well below cost. A double illegality, subsidising coal and then exporting it. (European Journal 11/97) (FFP). The German Economics Minister dismissed as simply absurd British protests at the large state subsidies paid to the German coal industry. The British government cannot expect German taxpayers to save British jobs at the expense of German ones. (FT 18 March 1998). The German government pays the coal industry the equivalent of £50,000 a man a year. (S Telegraph/Perverse Subsidies 14/6/98).
The Large Combustion Plant Directive proposes reductions in acid emissions by power stations. If the rules are adopted then only two coal-fired power stations will remain in the UK after 2010. This will spell the demise of the coal industry. (Guardian 8/9/97)
The EU Utilities Directive could lead to higher prices for electricity. The Procurement Directive is likely to have the reverse effect from that intended according to a report from Sussex University, Science Policy Research Unit (FT 11/1/94).
The EEC Directive on Electromagnetic Compatibility may lead to the closure of thousands of small manufacturers. Every new electrical component must be tested for radio interference at a cost of £1,000, even for a one off device costing £50. (S Telegraph 6/12/92). The Directive itself covers four pages, the UK law is written on 84 pages (Sunday Telegraph 12/3/95). The directive 89/336/EEC places an enormous burden on makers of laser equipment. Sales of US equipment will be halted (www.lfw.com). Small companies in the southwest have been forced to invest £400,000 in a test facility or face the loss of a third of their business (D Mail 22/4/96). The DTI is so concerned about the impact of the EU regulations that it has issued a guide to minimising the harmful effect on businesses. Nevertheless, manufacturers of even the most insignificant electrical or electronic product must complete and sign a Declaration of Conformity to the EMC directive. This document is binding on the manufacturer and must be available to the enforcement authorities for 10 years (DTI URN/95/785)
The proposed common European system for electrical plugs and sockets could cost British consumers £78m per year for over 40 years according to a DTI sponsored report. UK homes are wired with ring mains but the continental system is radial. It would be impossible to block the EU with the UK veto so the best hope is for a derogation (FT 2/6/94). The continental round pin plugs with no fuses could seriously damage the UK manufacturing base. About half the £1.3bn capital employed in the 20 UK companies could be made redundant. The companies employ 10,000 and as many again are employed in support. The smaller producers could be forced to cease trading (FT 30/10/93). The -two round pin- Euro-plug is to operate at 16 amps that could lead to overheating on British 13 amp ring mains. (FT 7/12/93) Despite the clear economic benefit to manufacturers and convenience to consumers, CENELEC has apparently decided to pull the plug (no pun intended) on its efforts to build an agreement around a single 250 volt plug design that could be used throughout the European Community. (http://www.conformity.com/cnf0297.html#obituary)
In order to harmonise power voltages the UK will lower the level from 240v to 230v. This will result in a 15 per cent reduction in light output from filament bulbs. Transmission losses will increase and the maximum load capacity of the national grid will be reduced by 8 per cent. The lower power consumption will mean lower electricity bills (New Scientist 27/11/93). The reduction in voltage will reduce the output of microwave cookers resulting in an increase in food poisoning. (BBC R4 28/1/95). The European Bank for Reconstruction and Development commissioned a report on completing the building two new nuclear reactors in the Ukraine. This is to allow the Chernobyl reactor to be shutdown. The report recommended that instead of building the two new reactors it would be more cost effective to improve the efficiency to the Ukraine's non-nuclear plants. The EU Commission is unhappy with the recommendations and has refused to publish the report until it has a published a response. It wants to award the reactor work to EU nuclear companies such as Electricite de France. (New Scientist 15/2/97)