THE COUNCIL

HAVING REGARD to Article 5(b) of the Convention on the Organisation for Economic Co-operation and Development of 14th December 1960;

HAVING REGARD to the Decision of the Council of the O.E.E.C. of 6th July 1956, concerning Occasional and Seasonal Supplies of Electric Power between Interconnected Countries, as amended on 19th December 1960, and approved by the Council on 30th September 1961 [Doc. Nos. C(56)183, C(60)217(Final) and OECD/C(61)5];

HAVING REGARD to the Decision of the Council of 23rd July 1963 Amending the Decision of the Council concerning Occasional and Seasonal Supplies of Electric Power between Interconnected Countries [Doc. No C(63)108];

HAVING REGARD to the Report of the Special Committee for Electricity of 7th July 1965 concerning the Liberalisation of Long-Term Power Exchange Between O.E.C.D. European Member Countries [Doc. No. EL(65)4];

CONSIDERING that international interconnection is a factor which makes for safely reliable supplies of electric power;

CONSIDERING that the international exchange of electric power makes it possible to use the combined electrical equipment resources of the various countries to better advantage and, consequently, to lower power production costs;

On the proposal of the Special Committee for Electricity;

RECOMMENDS the Governments of European Member countries whose long-term imports and exports of electric power are subject to controls;

(a)        to consider whether these controls are still warranted under present conditions and whether they could not be abolished;

(b)        if these controls cannot be thus abolished, to facilitate international power exchange by simplifying formalities for its authorisation, and accelerating decisions on applications;

(c)        to free from all formalities any exchange of electric power resulting from contracts for periods not exceeding two years, provided that governments are notified of such contracts and it being understood that they cannot be renewed without the authorisation of the governments concerned. Each government may reserve the right to suspend the fulfilment of these contracts, after consulting the other governments concerned, in cases where the energy supply of the country is threatened by exceptional circumstances.

In adopting this Recommendation, the Council:

I.            NOTED the Report of the Special Committee for Electricity of 7th July 1965 referred to above;

II.           NOTED the statements by the Delegates for Norway, Spain and Switzerland regarding their special positions with respect to the Recommendation;

III.          AGREED that the Report by the Special Committee of 7th July 1965 referred to above and the Recommendation should be derestricted.