1 1 Requirements for energy statistics for the development of hybrid/NAMEA data systems Julie L. Hass, Statistics Norway London Group on Environmental-Economic Accounting Session 5: Issues related to Chapters 3 and 4 Johannesburg, South Africa, March 2007

2 Environment and economy: pieces into a picture

3 Requirements for hybrid/NAMEA accounts Consistent with the national accounts before linking... 3 system requirements for the energy data: Same definitions and boundaries as the national accounts Same groupings of institutional units as the national accounts and consistency over time Attributing residuals/energy use to appropriate institutional units

4 Requirements for hybrid/NAMEA accounts Residence principle An institutional unit is said to be resident within the economic territory of a country when it maintains the centre of economic interest in that territory – that is, when it engages, or intends to engage, in economic activities or transactions on a significant scale either indefinitely or over a long period of time, usually interpreted as one year. (SNA-1993) Attributing energy use to appropriate institutional units –Need to have this by industry and by energy carrier –Increases the uncertainty when information is broken down into such detailed institutional units

5 Transportation in hybrid/NAMEA accounts is a big challenge

6 Challenges of establishing NAMEA-energy at Statistics Norway Foundation already established in energy accounts and statistical data bases Needs reorganization of data into NAMEA-style supply and use table Difficult to check NAMEA totals vs. energy accounts totals Large statistical discrepancies – do not know if these are on the supply or use side Statistical discrepancies: –Petrol 25 per cent of intermediate consumption and household use –Coke 23 per cent, natural gas 19 per cent and other gases and LNG approximately 80 per cent Quality of NAMEA-energy data becomes questionable since so much energy consumption cannot be attributed to institutional units

7 Issues to consider 1. What are energy accounts/ NAMEA/hybrid accounts? 2. Are subsoil asset accounts for energy part of “energy accounts”? 3. Consistency with official statistics (energy balances) and bridge tables 4. Methodological issues: harmonisation of classifications, energy conversion factors, integration of various data sources 5. Treatment of statistical discrepancies 6. Treatment of import/export data 7. Treatment of renewable energy 8. Link with air emissions data and the need for emissions related energy use 9. Indicators 10. How to treat inconsistencies between energy statistics and National accounts?

8 IssueLondon GroupOslo Group Valuation of energy (sub- soil) assets (including the classification of the subsoil assets) The classification of the subsoil assets should use the UN Framework Classification as the starting point. Which portions of this system to include need to be determined in consultation with UNFC experts. The valuation of the subsoil energy assets is in the mandate of the London Group as part of subsoil assets. Outside the mandate of the Oslo group. Definition of NAMEA- Energy / “Energy Accounts” Makes proposals to the Oslo Group for standard NAMEA/hybrid tables to indicate the user needs for this system. System specifications need to be clearly communicated (Oslo Group discussion forum 2. User Needs or 4 Energy Supply and Use). In the multi-purpose supply and use energy statistical system to be developed by the Oslo Group and presented in the revised UN manuals on energy statistics the user needs will be covered. Consistency with official statistics Makes proposal to the Oslo Group for a bridge table that shows the data needed to convert between a geographic definition and an economic definition of a country. System specifications need to be clearly communicated (Oslo Group discussion forum 2. User Needs or 4 Energy Supply and Use). In the multi-purpose supply and use energy statistical system to be developed by the Oslo Group and presented in the revised UN manuals on energy statistics the user needs will be covered.

9 IssueLondon GroupOslo Group Statistical discrepancies Makes proposal for how to balance the NAMEA-energy system since statistical discrepancies are not allowed in the NAMEA tables. Will hopefully solve much of this problem by eliminating these discrepancies by improving the physical data. Methodological issues: harmonisation of classifications, energy conversion factors, integration of various data sources (1) Energy products to national accounts products – participate in the Oslo group discussion forum 6. Definitions and conversion factors (2) Energy conversion factors – participate in the Oslo group discussion forum 6 Definitions and conversion factors. (3) Integration of various data sources – participate in the Oslo group discussion forum 3. Basic Energy Statistics. (1) Energy products to national accounts products – leads the discussion and included in the energy statistics manuals (2) energy conversion factors – leads the discussion and included in the energy statistics manuals (3) Integration of various data sources – leads the discussion and included in the energy statistics manuals Treatment of import/export data Contribute to this by participating in the Oslo Group discussion forum 3. Basic Energy Statistics Leads the discussion and included in the energy statistics manuals Treatment of renewable energy data – physical Participate in the Oslo group discussion forum 3 Basic Energy Statistics Leads the discussion and included in the energy statistics manuals Treatment of renewable energy data – monetary Makes proposals to the city group dealing with the National Accounts and the CPC-products list if this needs revision. Outside the mandate of the Oslo Group

10 IssueLondon GroupOslo Group Link with air emissions data and the need for emissions related energy use Makes proposals to the Oslo Group for standard emissions related energy use tables to indicate the user needs for this system. System specifications need to be clearly communicated (Oslo Group discussion forum 2. User Needs) In the multi-purpose supply and use energy statistical system to be developed by the Oslo Group the user needs will be included in the multi- purpose system. How to treat inconsistencies between energy statistics and National accounts? London Group members probably have more experience with this – price and physical amounts inconsistencies. Unclear if this is a national problem or if international guidelines can be developed. Outside the work plan of the Oslo Group. Indicators Make proposals to the Oslo Group after examining established energy indicators. Energy indicators such as energy per value added and energy per unit intermediate consumption are part of the use of energy statistics. Currently not clear if section on “use” of data in indicators will be included in the manuals – perhaps as part of best practices.