C 382/6 EN Official Journal of the European Communities 9.12.98

The Lucats-Cabeil concession (14,3 km2):

Vertices Longitude Latitude

Ba 3,74ØgrØE 49,24ØgrØN Bb 3,71ØgrØE 49,24ØgrØN Bc 3,71ØgrØE 49,25ØgrØN Bd 3,65ØgrØE 49,25ØgrØN Be 3,65ØgrØE 49,23ØgrØN Bf 3,69ØgrØE 49,23ØgrØN Bg 3,69ØgrØE 49,22ØgrØN Bh 3,74ØgrØE 49,22ØgrØN

Any company wishing to submit a competing application may do so within 90 days of publi- cation of this notice in accordance with the procedure summarised in the notice regarding the granting of mining rights for hydrocarbons in France published in the Official Journal of the European Communities CØ374 of 30 December 1994, page 11, and laid down by Decree 95-427 of 19 April 1995 concerning mining rights (French Official Gazette of 22 April 1995).

Further information can be obtained from the following address: Ministry of Economic Affairs, Finance and Industry, Secretary of State for Industry, General Directorate for Energy and Raw Materials, Hydrocarbons Directorate, Prospection/Production Service, 99, rue de Grenelle, F-75353 Paris 07 SP, fax (33-1) 43Ø19Ø31Ø22, tel. (33-1) 43Ø19Ø38Ø28.

Notice published pursuant to Article 19(3) of Council Regulation No 17 concerning case IV.F.1/36.718.CECED

(98/C 382/06) (Text with EEA relevance)

INTRODUCTION RELEVANT MARKET AND POSITION OF THE PARTIES

1.ÙOn 22 October 1997, the Conseil europ~en de la 3.ÙThe agreement concerns the market of private construction electro-domestique (CECED), notified washing machines that are used by households to an agreement (‘the agreement’) dated 24 September wash textiles for private use. The EEA appears as the 1997 committing some of its members to cease relevant geographic area of the market. The manu- production and imports of several models of washing facturers that have signed the commitment hold machines. CECED was applying for negative around 90,5Ø% of the EEA market, which is clearance or, alternatively, an exemption under relatively fragmented. Imports in the EEA account Article 85 of the EC Treaty and Article 53 of the for 5 to 7Ø% of final sales. EEA Agreement.

THE AGREEMENTS THE PARTIES 4.ÙPursuant to Commission Directive 95/12/EC, washing machines sold throughout the EU are 2.ÙCECED is an association based in Brussels classified and labelled according to their energy effi- comprising manufacturers of domestic appliances ciency (Kwh/kg of load) into seven categories from and national trade associations. CECED members A to GØ(Î). The agreement basically covers three sets having signed the agreement are ATAG, Bosch- , Brandt, , , Merloni, , Whirlpool, Dolmar, Smeg and Fagor. All of them (Î)ÙUnder Council Directive 92/75/EEC, the Commission manufacture and sell a wide range of domestic adopts implementing Directives on the labelling of domestic appliances in regard to their energy consumption. appliances under various brands in various Member Commission Directive 95/12/EC relates to washing States. machines. 9.12.98 EN Official Journal of the European Communities C 382/7

of objectives concerning: (i) production and imports such, the information exchange under the agreement of washing machines, (ii) monitoring and reporting, is not likely to be used for purposes other than (iii) promotion of technological development as well monitoring its implementationØ(Ï). as consumer education. It is open to new participants and remains valid until 31 December 2001Ø(Î).

7.ÙCECED members agree not to manufacture or to 5.ÙThe parties have agreed the following: import any more washing machines that do not meet specific criteria. These criteria are equivalent to an obligatory minimum performance standard as Production and imports: pursuant to the agreement’s regards energy efficiency. As a result, manufacturers overall objective of reaching and EU weighted restrict their ability to compete throughout the full average of 0,24 Kwh/kg before 31 December 2000, range of energy categories set forth in Directive participants agree to cease producing and importing 95/12/EC. Energy consumption is a non-negligible into the EU the following categories of products: product attribute for washing machines. Compared to current market conditions, the agreement narrows product ranges thereby reducing consumer choice, —Ùafter 31 December 1997 (first step), machines from category A to C (and partly D) compared to under categories E, F and G (except machines current A to G. under category E with load capacity lower than 3 kg and vertical axis machines),

8.ÙWhen fully implemented, 1Ø718 models under energy —Ùafter 31 December 1999 (second step, machines classes G, F, E and D would no longer be produced under category D, (except load capacity lower or imported, out of a total EU range of 2Ø730 than 3 kg and machines with spin speed lower models in 1995. In terms of unit sales, the number of than 600 rpm). machines that would no longer be allowed in the market accounted for 10 to 11Ø% of the EU total in 1997. However, no major effects on total output are Monitoring and reporting: CECED will establish directly expected from the agreement, since more and update a database, monitored by an independent efficient machines would, in principle, replace those consultant who will report annually to CECED and being phased out. to the Commission on the fulfilment of the objectives per category class and for the overall target of 0,24 Kwh/kg. The independent consultant will aggregate individualised data submitted by each 9.ÙThe agreement would have an appreciable effect on manufacturer. the market and in trade between Member States. Since producers have located their facilities only in several plants from which they supply throughout Consumer education and technological inprovement: the EU, the agreement will affect the composition of participants agree to improve the availability of sales from one Member State to another compared information to the public on environmentally to current conditions. The agreement is also likely to conscious use of washing machines (how to operate have a differentiated geographic impact. Depending the machine with less energy, detergent, water, etc.) on the composition of sales, price increases due to and to promote wider dissemination of energy- upgrading current product ranges would be unevenly saving technology. distributedØ(Ð).

ASSESSMENT 10.ÙThe notifying parties claim that the commitment is designed to reduce the potential energy consumption 6.ÙThe exchange of information takes place through of new washing machines by at least 15 to 20Ø% (on the intermediary of an independent notary, entrusted 1994 data) thereby reducing CO2 Øemissions. with the task of collating data confidentially According to CECED, if machines pertaining to the submitted by each individual manufacturer on production and sales made the previous year. Only (Ï)ÙCECED made public a first monitoring report in June 1998. aggregated data will be made available to (Ð)ÙFor instance, the projected price increase of the washing competitors in an otherwise fragmented market. As machine that would result from a target of 0,23 KWh/kg EU-wide would be around 1 to 2Ø% in northern Europe and 8 to 14Ø% in southern Europe and the UK. ‘Sensitivity (Î)ÙSince its entry into force, other manufacturers like Arçelik analysis washing machines’ Val HoljsteinØ@ØKenna Report (Turkey) and Iar Siltal (Italy) have joined the agreement. to DG XVII April 1996, p. 8. C 382/8 EN Official Journal of the European Communities 9.12.98

energy classes phased out were to be replaced by an 15.ÙMere information campaigns, which are a separate equivalent number of machines A, B and C, 7,5 part of the agreements, appear also less effective TWh would be saved in 2015 out of the estimated than a standard. Furthermore, the existing EU 38 TWh (1995) attributed to washing machines in energy label already provides the necessary the EU. CECED estimates avoided pollution to information on energy consumption to consumers. 3,5 Mtons of CO2, 17Øktons of SO2 Øand 6Øktons of Any consumer aware of its needs in terms of weight NOx Øper year in 2010. of clothes to be washed and electricity prices can easily determine whether it is cost-effective for 11.ÙThe avoided cost of pollution from the various him/her to purchase a particular washing machine substances linked to electricity consumption needs to among others. be taken into account. Marginal damages of (avoided) CO2 Ø(i.e. so called ‘external costs’) are 16.ÙMajor distributors agree that energy efficiency currently estimated to ECU 51 per tonne of carbon scores poorly among other factors influencing saved. On a European scale, avoided damages from purchase decisions like price, brand image, technical SO2 Øamount to ECU 4Ø000 to 7Ø000 tonnes and performance and so forth (eighth criterion in order 3Ø000 to 5Ø000 per tonne of NOx (Î). Available data of importance, 4,8 points out of 10). Meanwhile, shows that the combined social benefits seem to be three energy classes, combined with those other more than sevenfold greater than the increased factors will still remain available to manufacturers. purchase costs derived from the more stringent Moreover, the agreement does not prescribe any standard set forth by CECED. determined technical means to achieve the minimum standard. 12.ÙFurthermore, the level at which the minimum performance standard is set appears to provide a fair 17.ÙThe agreement appears likely to encourage manu- return to individual consumers within reasonable facturers to focus future R@D on furthering energy pay-back periods on aggregate. Financial savings efficiency, thereby allowing for increased product obtained on reduced electricity bills would allow differentiation among producers at a subsequent consumers to recoup increased purchase costs stage. This dynamic process further reduces the of more energy-efficient machines within 9 to short-term effects of the phasing out. Without a 40 months, depending on frequency of use and elec- commitment from most manufacturers to cease tricity prices, among other things. production of the lower energy-efficiency range of machines, it is doubtful that technical progress 13.ÙThe cost-effectiveness ratio of the standard and the would spontaneously shift towards the higher range. return on investment for individual users are therefore conclusive as regards both contributions to 18.ÙThough machines pertaining to classes D to F technical progress and benefits for consumers account for a non-negligible amount of final sales, stemming from the CECED agreement. about 90Ø% of the market (1996) will fall outside the Furthermore, less restrictive alternatives like scope of the agreements. information campaigns and eco-label awards appear unlikely to deliver the expected benefits. CONCLUSION 14.ÙCommission Decision 96/461/EC establishes the 19.ÙThe Commission intends to take a favourable view Community eco-label for washing machines, whose pursuant to Article 85 of the EC Treaty and Article criteria includes energy consumption (washing 53 of the EEA Agreement towards the notified machines under energy classes A and B are eligible), agreement. Before doing so, it invites all interested water and detergent use as well as consumer third parties to submit their observations within information. However, to be effective, only a minor 30 days of the publication of this notice to the share of appliances should be eligible for the following address quoting reference — eco-label, failing which the latter would be inef- IV.F.1/36.883.CECED. fective in rewarding top environmental class. European Commission Directorate-General IV — Competition, Directorate F, (Î)Ù‘Climate, change, analysis of the proposed EU emission reduction objectives for Kyoto’. Commission staff working Rue de la Loi/Wetstraat 200, paper, Annex pp. ix, x, (Base case, discount rate 5Ø%). B-1049 Brussels.