1. from energy balances to energy accounts
Flintull Annica Eriksson
Senior Regional Advisor, Environmental-Economic Accounts
African Centre for Statistics, ECA
3-6 September 2019, Regional Seminar on Energy & Forest Accounts

2. Outline Introduction SEEA-CF Purpose of Energy Accounts
Physical Energy Flows
Source data
Methodology
Example Energy Balance vs. Energy Account flows

3. 1. Introduction to SEEA-CF
International statistical standard by the United Nations Statistical Commission (2012).
Concepts, definitions & classifications aligned with System of National Accounts (SNA) 2008.
13 Different environmental areas.
3 Main groups of information.
Physical accounts – use of a common unit eg. Joules is recommended by SEEA-Energy.

4. System of Environmental-Economic Account modules

5. From single statistics to accounts
Comprehensive, reliable and relevant statistics, accounts - indicators relevant for developing, implementing & monitoring the Sustainable Development Goals.
SEEA accounts consistent with National Account concepts, implies - environmental data can directly compared --> GDP, employment, value added, household consumption etc.

6. 2. Purpose of the energy accounts
offer a breakdown of supply and use of energy by industries plus households as defined and classified in the national accounts.
offer possibilities for coherent and detailed comparisons of flows of energy and economic activities - contribution of a specific industry to total use of energy of an economy.
Calculation of indirect use of energy by final use categories (exports, gross fixed capital formation, final consumption).

7. Physical Supply & Use table
The physical supply table illustrates which flow items are provided by which supplier:
Industries
Households
Accumulation
Rest of the world (imports)
Flows from the environment
The physical use table illustrates who is using or receiving the respective physical flow. It shows the flows by destination.

8. Supply & Use identity
Supply and Use identity applies to both monetary (National Accounts) and physical flows (Energy Accounts), including the residuals.
Total Supply by energy product = Domestic production + Imports
is identical to
Total use of energy product = Intermediate Consumption + Household Final Consumption + Inventory changes + Exports

9. Simple example – Balanced SUT Energy
Supply = Use
Output = Input

10. 3. Principal types of physical flows
Natural inputs: environment to the economy
Products: within the economy (as energy products)
Residuals: from the economy to the environment (as losses and returns of energy to the environment)
broken down by establishments and households and as a result of production, consumption and accumulation processes.

11. Physical flows of natural inputs, products and residuals
Economy
Industries Products
Households (Goods & services produced and consumed in the economy)
Natural inputs
Environment
Residuals
Source: SEEA CF (2012 p.13)

12. Natural inputs Fossil non-renewables Natural Timber resources Solar
Oil
Coal and Peat
Natural gas
Fossil non-renewables
Wood, fire wood, wood waste
Natural Timber resources
Solar panels
Solar
Wind turbines
Wind
Hydroelectric power plants
Hydro
Bagasse
Cultivated biomass

13. Motor gasoline & Transport diesel
Energy products
Crude oil & Coal
Charcoal
Natural gas
Motor gasoline & Transport diesel
Electrical energy
Kerosene
Wood, wood waste

14. Energy residuals
Flows of soild – liquid – gaseous materials emitted to the enviroment during production, consumption or accumulation.
Energy losses assembled into 4 groups:
Losses during extraction (natural gas evaporates during extraction)
Losses during distubution (oil tanker spils oil)
Losses during storage (petrol leaks from a tank)
Losses during transformation (heat losses – coal used for production of electricity, electricty distubution via the grid)
Source: (SEEA CF 2012 § 2.92 & Eurostat PEFA 2018 p.4)

15. 4. Source data Other data sources: Energy balance
National Accounts
External trade statistics
Commodity statistics
Census on energy consumption in manufacturing industries
Traffic & transport data
Household surveys
Basic energy data
Energy balance
Large puzzle to connect all pieces
Energy supply & use tables

16. 5. Methodology for construction of energy accounts
Compilation of Energy Accounts starts from existing data - energy statistics/energy balances or other statistics -information on supply and use of energy e.g. production statistics, foreign trade statistics, business surveys, household budget surveys etc.
These existing data need to be manipulated and re-arranged according to the accounting principles of National Accounts
Two general approaches are used:
”Statistics/Energy statistics first” and ”Energy balances first”
If energy balances exist - best starting point, since a lot of potential ‘issues’ in the data has already been resolved. However, the energy balances still needs to be complemented and adjusted.
Usually it’s a mix though

17. Economic domains flows relates to National Accounts…

18. The “energy balance first-approach” starts from existing national energy balances. It re-arranges those data to a format compatible with National Accounts.
Energy Balances
Energy accounts

19. What is the link to energy statistics/balances?
Flows described - basic energy statistics & energy balances can be shown directly in the energy accounts.
Many similarities between energy balances and energy accounts – important aware - some crucial differences exists:
Differences in terminology and concepts
Conceptual differences territory principle / residence principle
Treatment of transport

20. Use of energy for transport by industries and households
Energy balances:
All use of energy for transport is allocated to the ”Transport sector”.
National accounts/energy accounts:
Transport is carried out by transport service industries (sea transport, air transport, land transport) and by all other industries and the households (own account transport).
Energy Balances: All activities related to transport are allocated into the transport sector regardless of what the predominant activity of the enterprise might be.
Energy Accounts: Consumption of fuel for own-account transportation activity is allocated into the ISIC industry actually using these fuels.
The fuel use for private cars, boats, planes etc. – allocated into households private consumption.
Use of fuels for road transport theoretically concerns all economic activities. Examples:
Use of ambulances in health service sector (ISIC Q)
Lorries & bulldozers in construction (ISIC F)
Tractors in agriculture (ISIC A)

21. Residence vs. territory principle
SEEA-Energy Accounts uses the residence principle i.e It records the energy production & energy use of residents regardless of geographic location.
Purchases of energy products abroad by resident economic units. Mainly resident units operating and fueling vehicles outside the territory.
Examples: Airplanes, trucks and ships of international transport.
Traditional energy statistics/Energy balances is based upon the territory principle.

22. Residence vs. territory principle
Residents
Non-residents on the territory
Energy balances
Country X
Energy accounts
Economy in country X
Residence principle vs. territory principle
Energy balances follows the territory principle – Purchases of energy products on the territory by non-resident economic units. Activities by non-national residents on the territory relates to purchases of energy products on the territory by non-resident economic units. Mainly related to transport services operated by non-residents. Example: Foreign aircraft bunkering on domestic airports, foreign ships bunkering in domestic ports.
Energy Accounts follow the residence principle – Activities by national residents abroad relates to activities of resident units outside their territory of residence. It refers to purchases of energy products abroad by resident economic units. These are mainly resident units operating and fueling vehicles outside the territory example: Airplanes, trucks and ships of international transport.
Abroad

23. The Structure of the Energy Balance
The energy balance consists of three main blocks:
The top block showing flows representing energy entering and leaving the national territory, as well as stock changes to provide information on supply of energy on the national territory during the reference period.
The middle block shows how energy is transformed, transferred, used by energy industries for own use or lost in distribution and transmission.
The bottom block shows flows reflecting the final energy consumption and non-energy use of energy products
In addition, the item ‘statistical difference’ bridges the supply and final consumption

24. 6. Example Energy Balance (1)
No statistical differences in Energy Accounts, this has to be allocated to the appropriate ISIC category.

25. Example Energy Balance (2)
ISIC classification – National Accounts A
Agriculture, forestry & fishing B
Mining & Quarrying C
Manufacturing D
Electricity, gas E
Water supply H
Transport
I – S
Accommodation  Other service activities HH
Total activities by Households
Note the special case of treatment of transport.

26. Example Energy Balance (3)
Data for residuals
Data for natural inputs

27. Example Energy Balance (4)

28. Example Energy Balance (5)

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