Brussels, 12/06/2009 (Agence Europe) - Meeting in Luxembourg on 12 June, EU energy ministers reached political agreement on the draft directive to replace existing Community legislation requiring member states to maintain a minimum level of oil stocks and oil products (Directives 06/67/EC and 73/238/EC and Council decision 68/416/EC). The proposed directive seeks to improve the way current EU oil stocks mechanisms operate, so as to ensure availability of oil in the event of a crisis. The decision was welcomed by European Energy Commissioner Andris Piebalgs, who proposed the new legislation, the first draft of which was tabled in November 2008 in the energy security and solidarity package (see EUROPE 9782). “Although the Council did not accept all the points of our initial proposal, I am sure that the new legislation will bring EU oil stocks closer into line with current international practice and enhance our ability to use our stocks efficiently to lessen the negative effects for consumers of any potential crisis of supply,” he said. The only reason for disappointment the commissioner might feel was on the member states' decision to have reports on the state of their stocks submitted compulsorily to the Commission on a monthly basis, not weekly, which would have provided greater transparency, he felt.
The new legislation, which is likely to come into effect by 2013, seeks to strengthen current legislation, which dates from 1968, by means of a raft of up-to-date rules aligning intra-EU rules with those of the International Energy Agency (IEA). EU states that are IEA members must also maintain emergency oil stocks that could be released under IEA coordination. Since some member states do not form part of the IEA, the new directive will ensure a coordinated response by the EU and the IEA in the event of an oil crisis. General requirements on certain member states' maintaining stocks will not be altered to any significant extent, the 90-day rule continuing to apply. In line with IEA practice, member states will now have to maintain emergency stocks equivalent to a least 90 days' net imports of oil or at least 61 days of average consumption. However, the availability of such emergency stocks will be improved as the new directive makes it very clear that stocks may not be pledged or used for other purposes. The new directive also requires that at least one-third of the emergency stocks must be composed of products in proportions corresponding to consumption patterns of the member states. These stocks will have to be owned by the member state or its stockholding agency, or held in arrangements ensuring the same level of public control. The new legislation also gives the EU new powers, such as allowing it to review and audit the stockholdings maintained by the different member states to enable it to react more efficiently in crises. No significant use of stocks will be possible, in practice, without an agreement at EU-level on its appropriateness. The Commission will be able to ensure a coordinated and timely contribution of the whole European Union to IEA efforts on equal terms. (E.H./transl.rt)