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MODULE FOR PHYSICAL ENERGY FLOW ACCOUNTS Section 1 OBJECTIVES Physical energy flow accounts present data on the physical flows of energy expressed in terajoules in a way that is fully compatible with the ESA. Physical energy flow accounts record energy data in relation to the economic activities of resident units of national economies in a breakdown by economic activity. They present the supply and use of natural energy inputs, energy products and energy residuals. Economic activities comprise production, consumption, and accumulation. This Annex defines the data to be collected, compiled, transmitted and evaluated for physical energy flow accounts by the Member States. Section 2 COVERAGE Physical energy flow accounts have the same system boundaries as ESA and are also based on the residence principle. In accordance with ESA, a unit is said to be a resident unit of a country when it has a centre of economic interest in the economic territory of that country, that is, when it engages for an extended period (1 year or more) in economic activities in that territory.

Physical energy flow accounts record physical energy flows arising from the activities of all resident units, regardless of where these flows actually occur geographically. Physical energy flow accounts record the physical flows of energy from the environment to the economy, within the economy, and from the economy back to the environment. Section 3 LIST OF CHARACTERISTICS Member States shall produce physical energy flow accounts according to the following characteristics:

— the physical energy flows grouped into three generic categories:

(i) natural energy inputs, (ii) energy products, (iii) energy residuals,

— the origin of the physical energy flows, grouped into five categories: production, consumption, accumulation, rest of the world and environment,

— the destination of the physical flows, grouped into the same five categories as the origin of the physical energy flows. All data shall be reported in terajoules. Section 4 FIRST REFERENCE YEAR, FREQUENCY AND TRANSMISSION DEADLINES 1. Statistics shall be compiled and transmitted on a yearly basis.

2. Statistics shall be transmitted within 21 months of the end of the reference year.

3. In order to meet user needs for complete and timely datasets, the Commission (Eurostat) shall produce, as soon as sufficient country data becomes available, estimates for the EU-27 ◄ totals for the main aggregates of this module. The Commission (Eurostat) shall, wherever possible, produce and publish estimates for data that have not been transmitted by Member States within the deadline specified in point 2.

4. The first reference year is 2015.

5. In the first transmission of data, Member States shall include annual data from 2014 to the first reference year.

6. In each subsequent data transmission to the Commission, Member States shall provide annual data for the years n – 2, n – 1 and n, where n is the reference year. Member States may provide any available data for the years preceding 2014. Section 5 REPORTING TABLES 1. For the characteristics referred to in Section 3, the following data shall be reported in physical units:

— Supply table for energy flows. This table records the supply of natural energy inputs, energy products, and energy residuals (row-wise) by origin, i.e. ‘supplier’ (column-wise).

— Use table for energy flows. This table records the use of natural energy inputs, energy products, and energy residuals (row-wise) by destination, i.e. ‘user’ (column-wise).

— Table of emission-relevant use of energy flows. This table records the emission-relevant use of natural energy inputs and energy products (row-wise) by the using and emitting unit (column-wise).

— Bridge table showing the various elements which make up the difference between the energy accounts and the energy balances.

2. The supply and use tables of energy flows (including emission-relevant flows) have a common layout in terms of rows and columns.

3. The columns denote the origins (supply) or destinations (use) of the physical flows. The columns are grouped into five categories:

— ‘Production’ relates to the production of goods and services. Production activities are classified according to NACE Rev. 2 and data is reported in A*64 aggregation level.

— ‘Consumption’ activities are presented in total and also divided into three sub-classes (transport, heating/cooling, other) for private households' final consumption.

— ‘Accumulation’ refers to the changes in stocks of energy products within the economy.

— ‘Rest of the world’ records the flows of imported and exported products.

— ‘Environment’ records the origin of natural input flows and the destination of residual flows.

4. The rows describe the type of physical flows classified in the first indent of Section 3.

5. The classification of natural energy inputs, energy products, and energy residuals is as follows:

— natural energy inputs are grouped into non-renewable natural energy inputs and renewable natural energy inputs,

— energy products are grouped according to the classification used in European energy statistics,

— energy residuals include waste (without monetary value); losses during extraction/abstraction, distribution/transport, transformation/conversion and storage; as well as balancing items to balance the supply and use tables.

6. The ‘bridge’ from the residence principle indicator to the territory-based indicator is presented for the entire national economy (no breakdown by industries) and is obtained as follows: total energy use by resident units: – energy use by resident units abroad + energy use by non-residents on the territory + statistical differences = gross inland energy consumption (territory-based)

Section 6 MAXIMUM DURATION OF THE TRANSITIONAL PERIODS For the implementation of the provisions of this Annex, the maximum duration of the transitional period is 2 years from the first transmission deadline.