THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,

Having regard to Council Decision 77/706/EEC of 7 November 1977 on the setting of a Community target for a reduction in the consumption of primary sources of energy in the event of difficulties in the supply of crude oil and petroleum products1, and in particular Article 5 thereof,

Having consulted the Member States in accordance with Article 5 of the said Decision,

Whereas the Council has adopted Regulation (EEC) No 1729/76 of 21 June 1976 concerning the communication of information on the state of the Community's energy supplies2;

Whereas the Commission has adopted Decision 78/890/EEC of 28 September 1978 applying Council Decision 77/186/EEC on the exporting of crude oil and petroleum products from one Member State to another in the event of supply difficulties3;

Whereas Article 1 (1) of Decision 77/706/EEC provides that where difficulties arise in the supply of crude oil or petroleum products in one or more Member State, the Commission, acting at the request of a Member State or on its own initiative, and after consulting the group provided for in Directive 73/238/EEC, may set a target for reducing consumption of petroleum products in the Community as a whole by up to 10 % of normal consumption;

Whereas Article 1 (2) of Decision 77/706/EEC provides that, in order to safeguard the unity of the market and to ensure that all energy consumers in the Community bear their fair share of the difficulties arising from the crisis, the Commission shall, on the expiry of a period of two months following the application of Article 1 (1), propose to the Council a new target for reducing consumption by up to 10 % of normal consumption and differentiated according to Member State, following which the quantities saved are to be shared among the Member States;

Whereas Article 1 (2) of Decision 77/706/EEC provides that in the event of a larger shortfall the Commission may propose to the Council that the target for reducing consumption exceeds 10% and be extended to other forms of energy;

Whereas the sharing-out among Member States of the quantities saved following the application of Article 1 (3) of Decision 77/706/EEC may entail additional costs, the evaluation and settlement of which are within the competence of the parties involved; whereas, however, the Commission must be able, at the request of a Member State, to make recommendations and deliver opinions to the Member States concerned to enable agreement to be reached between Member States as regards additional costs;

Whereas, in order to perform these tasks the Commission must have accurate knowledge of the energy situation in the Member States, their supplies of crude oil and petroleum products, the possibilites for substitution between the various forms of energy, and national measures which have been taken to reduce energy consumption in the Member States; whereas the Member States must accordingly provide the Commission with the necessary information,

HAS ADOPTED THIS DECISION: