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Document 02019L0944-20240716
Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast) (Text with EEA relevance)
Consolidated text: Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast) (Text with EEA relevance)
Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast) (Text with EEA relevance)
ELI: http://data.europa.eu/eli/dir/2019/944/2024-07-16
02019L0944 — EN — 16.07.2024 — 002.001
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DIRECTIVE (EU) 2019/944 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast) (OJ L 158 14.6.2019, p. 125) |
Amended by:
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Official Journal |
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No |
page |
date |
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REGULATION (EU) 2022/869 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 30 May 2022 |
L 152 |
45 |
3.6.2022 |
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DIRECTIVE (EU) 2024/1711 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 June 2024 |
L 1711 |
1 |
26.6.2024 |
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DIRECTIVE (EU) 2019/944 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 5 June 2019
on common rules for the internal market for electricity and amending Directive 2012/27/EU
(recast)
(Text with EEA relevance)
CHAPTER I
SUBJECT MATTER AND DEFINITIONS
Article 1
Subject matter
This Directive establishes common rules for the generation, transmission, distribution, energy storage and supply of electricity, together with consumer protection provisions, with a view to creating truly integrated competitive, consumer-centred, flexible, fair and transparent electricity markets in the Union.
Using the advantages of an integrated market, this Directive aims to ensure affordable, transparent energy prices and costs for consumers, a high degree of security of supply and a smooth transition towards a sustainable low-carbon energy system. It lays down key rules relating to the organisation and functioning of the Union electricity sector, in particular rules on consumer empowerment and protection, on open access to the integrated market, on third-party access to transmission and distribution infrastructure, unbundling requirements, and rules on the independence of regulatory authorities in the Member States.
This Directive also sets out modes for Member States, regulatory authorities and transmission system operators to cooperate towards the creation of a fully interconnected internal market for electricity that increases the integration of electricity from renewable sources, free competition and security of supply.
Article 2
Definitions
For the purposes of this Directive, the following definitions apply:
‘customer’ means a wholesale or final customer of electricity;
‘wholesale customer’ means a natural or legal person who purchases electricity for the purpose of resale inside or outside the system where that person is established;
‘final customer’ means a customer who purchases electricity for own use;
‘household customer’ means a customer who purchases electricity for the customer's own household consumption, excluding commercial or professional activities;
‘non-household customer’ means a natural or legal person who purchases electricity that is not for own household use, including producers, industrial customers, small and medium-sized enterprises, businesses and wholesale customers;
‘microenterprise’ means an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million;
‘small enterprise’ means an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million;
‘active customer’ means a final customer, or a group of jointly acting final customers, who consumes or stores electricity generated within its premises located within confined boundaries or self-generated or shared electricity within other premises, or who sells self-generated electricity or participates in flexibility or energy efficiency schemes, provided that those activities do not constitute its primary commercial or professional activity;
‘electricity markets’ means markets for electricity, including over-the-counter markets and electricity exchanges, markets for the trading of energy, capacity, balancing and ancillary services in all timeframes, including forward, day-ahead and intraday markets;
‘market participant’ means market participant as defined in point (25) of Article 2 of Regulation (EU) 2019/943;
‘energy sharing’ means the self-consumption by active customers of renewable energy either:
generated or stored offsite or on sites between them by a facility they own, lease or rent in whole or in part; or
the right to which has been transferred to them by another active customer for a price or free of charge;
‘citizen energy community’ means a legal entity that:
is based on voluntary and open participation and is effectively controlled by members or shareholders that are natural persons, local authorities, including municipalities, or small enterprises;
has for its primary purpose to provide environmental, economic or social community benefits to its members or shareholders or to the local areas where it operates rather than to generate financial profits; and
may engage in generation, including from renewable sources, distribution, supply, consumption, aggregation, energy storage, energy efficiency services or charging services for electric vehicles or provide other energy services to its members or shareholders;
‘supply’ means the sale, including the resale, of electricity to customers;
‘electricity supply contract’ means a contract for the supply of electricity, but does not include electricity derivatives;
‘electricity derivative’ means a financial instrument specified in point (5), (6) or (7) of Section C of Annex I to Directive 2014/65/EU of the European Parliament and of the Council ( 1 ), where that instrument relates to electricity;
‘dynamic electricity price contract’ means an electricity supply contract between a supplier and a final customer that reflects the price variation in the spot markets, including in the day-ahead and intraday markets, at intervals at least equal to the market settlement frequency;
‘fixed-term, fixed-price electricity supply contract’ means an electricity supply contract between a supplier and a final customer that guarantees that the contractual terms and conditions, including the price, remain unchanged for the duration of the contract, while it may, within a fixed price, include a flexible element with for example peak and off-peak price variations, and where changes in the resulting bill can only result from elements that are not determined by suppliers, such as taxes and levies;
‘contract termination fee’ means a charge or penalty imposed on customers by suppliers or market participants engaged in aggregation, for terminating an electricity supply or service contract;
‘switching-related fee’ means a charge or penalty for changing suppliers or market participants engaged in aggregation, including contract termination fees, that is directly or indirectly imposed on customers by suppliers, market participants engaged in aggregation or system operators;
‘aggregation’ means a function performed by a natural or legal person who combines multiple customer loads or generated electricity for sale, purchase or auction in any electricity market;
‘independent aggregator’ means a market participant engaged in aggregation who is not affiliated to the customer's supplier;
‘demand response’ means the change of electricity load by final customers from their normal or current consumption patterns in response to market signals, including in response to time-variable electricity prices or incentive payments, or in response to the acceptance of the final customer's bid to sell demand reduction or increase at a price in an organised market as defined in point (4) of Article 2 of Commission Implementing Regulation (EU) No 1348/2014 ( 2 ), whether alone or through aggregation;
‘billing information’ means the information provided on a final customer's bill, apart from a request for payment;
‘conventional meter’ means an analogue or electronic meter with no capability to both transmit and receive data;
‘smart metering system’ means an electronic system that is capable of measuring electricity fed into the grid or electricity consumed from the grid, providing more information than a conventional meter, and that is capable of transmitting and receiving data for information, monitoring and control purposes, using a form of electronic communication;
‘interoperability’ means, in the context of smart metering, the ability of two or more energy or communication networks, systems, devices, applications or components to interwork to exchange and use information in order to perform required functions;
‘supplier of last resort’ means a supplier who is designated to take over the supply of electricity to customers of a supplier which has ceased to operate;
‘energy poverty’ means energy poverty as defined in Article 2, point (52), of Directive (EU) 2023/1791 of the European Parliament and of the Council ( 3 );
‘flexible connection agreement’ means a set of agreed conditions for connecting electrical capacity to the grid that includes conditions to limit and control the electricity injection to and withdrawal from the transmission network or distribution network;
‘imbalance settlement period’ means imbalance settlement period as defined in point (15) of Article 2 of Regulation (EU) 2019/943;
‘near real-time’ means, in the context of smart metering, a short time period, usually down to seconds or up to the imbalance settlement period in the national market;
‘best available techniques’ means, in the context of data protection and security in a smart metering environment, the most effective, advanced and practically suitable techniques for providing, in principle, the basis for complying with the Union data protection and security rules;
‘distribution’ means the transport of electricity on high-voltage, medium-voltage and low-voltage distribution systems with a view to its delivery to customers, but does not include supply;
‘distribution system operator’ means a natural or legal person who is responsible for operating, ensuring the maintenance of and, if necessary, developing the distribution system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the distribution of electricity;
‘energy efficiency’ means the ratio of output of performance, service, goods or energy, to input of energy;
‘energy from renewable sources’ or ‘renewable energy’ means energy from renewable sources or renewable energy as defined in Article 2, point (1), of Directive (EU) 2018/2001;
‘distributed generation’ means generating installations connected to the distribution system;
‘recharging point’ means an interface that is capable of charging one electric vehicle at a time or exchanging the battery of one electric vehicle at a time;
‘transmission’ means the transport of electricity on the extra high-voltage and high-voltage interconnected system with a view to its delivery to final customers or to distributors, but does not include supply;
‘transmission system operator’ means a natural or legal person who is responsible for operating, ensuring the maintenance of and, if necessary, developing the transmission system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the transmission of electricity;
‘system user’ means a natural or legal person who supplies to, or is supplied by, a transmission system or a distribution system;
‘generation’ means the production of electricity;
‘producer’ means a natural or legal person who generates electricity;
‘interconnector’ means equipment used to link electricity systems;
‘interconnected system’ means a number of transmission and distribution systems linked together by means of one or more interconnectors;
‘direct line’ means either an electricity line linking an isolated generation site with an isolated customer or an electricity line linking a producer and an electricity supply undertaking to supply directly their own premises, subsidiaries and customers;
‘small isolated system’ means any system that had consumption of less than 3 000 GWh in the year 1996, where less than 5 % of annual consumption is obtained through interconnection with other systems;
‘small connected system’ means any system that had consumption of less than 3 000 GWh in the year 1996, where more than 5 % of annual consumption is obtained through interconnection with other systems;
‘congestion’ means congestion as defined in point (4) of Article 2 of Regulation (EU) 2019/943;
‘balancing’ means balancing as defined in point (10) of Article 2 of Regulation (EU) 2019/943;
‘balancing energy’ means balancing energy as defined in point (11) of Article 2 of Regulation (EU) 2019/943;
‘balance responsible party’ means balance responsible party as defined in point (14) of Article 2 of Regulation (EU) 2019/943;
‘ancillary service’ means a service necessary for the operation of a transmission or distribution system, including balancing and non-frequency ancillary services, but not including congestion management;
‘non-frequency ancillary service’ means a service used by a transmission system operator or distribution system operator for steady state voltage control, fast reactive current injections, inertia for local grid stability, short-circuit current, black start capability and island operation capability;
‘regional coordination centre’ means a regional coordination centre established pursuant to Article 35 of Regulation (EU) 2019/943;
‘fully integrated network components’ means network components that are integrated in the transmission or distribution system, including storage facilities, and that are used for the sole purpose of ensuring a secure and reliable operation of the transmission or distribution system, and not for balancing or congestion management;
‘integrated electricity undertaking’ means a vertically integrated undertaking or a horizontally integrated undertaking;
‘vertically integrated undertaking’ means an electricity undertaking or a group of electricity undertakings where the same person or the same persons are entitled, directly or indirectly, to exercise control, and where the undertaking or group of undertakings performs at least one of the functions of transmission or distribution, and at least one of the functions of generation or supply;
‘horizontally integrated undertaking’ means an electricity undertaking performing at least one of the functions of generation for sale, or transmission, or distribution, or supply, and another non-electricity activity;
‘related undertaking’ means affiliated undertakings as defined in point (12) of Article 2 of Directive 2013/34/EU of the European Parliament and of the Council ( 4 ), and undertakings which belong to the same shareholders;
‘control’ means rights, contracts or other means which, either separately or in combination and having regard to the considerations of fact or law involved, confer the possibility of exercising decisive influence on an undertaking, in particular by:
ownership or the right to use all or part of the assets of an undertaking;
rights or contracts which confer decisive influence on the composition, voting or decisions of the organs of an undertaking;
‘electricity undertaking’ means a natural or legal person who carries out at least one of the following functions: generation, transmission, distribution, aggregation, demand response, energy storage, supply or purchase of electricity, and who is responsible for the commercial, technical or maintenance tasks related to those functions, but does not include final customers;
‘security’ means both security of supply and provision of electricity, and technical safety;
‘energy storage’ means, in the electricity system, deferring the final use of electricity to a moment later than when it was generated, or the conversion of electrical energy into a form of energy which can be stored, the storing of such energy, and the subsequent reconversion of such energy into electrical energy or use as another energy carrier;
‘energy storage facility’ means, in the electricity system, a facility where energy storage occurs.
CHAPTER II
GENERAL RULES FOR THE ORGANISATION OF THE ELECTRICITY SECTOR
Article 3
Competitive, consumer-centred, flexible and non-discriminatory electricity markets
Article 4
Free choice of supplier
Member States shall ensure that all customers are free to purchase electricity from suppliers of their choice. Member States shall ensure that all customers are free to have more than one electricity supply contract or energy sharing agreement at the same time, and that, for that purpose, customers are entitled to have more than one metering and billing point covered by the single connection point for their premises. Where technically feasible, smart metering systems deployed in accordance with Article 19 may be used to allow customers to have more than one electricity supply contract or more than one energy sharing agreement at the same time.
Article 5
Market-based supply prices
Public interventions in the price setting for the supply of electricity shall:
pursue a general economic interest and not go beyond what is necessary to achieve that general economic interest;
be clearly defined, transparent, non-discriminatory and verifiable;
guarantee equal access for Union electricity undertakings to customers;
be limited in time and proportionate as regards their beneficiaries;
not result in additional costs for market participants in a discriminatory way.
Public interventions pursuant to paragraph 6 shall comply with the criteria set out in paragraph 4 and shall:
be accompanied by a set of measures to achieve effective competition and a methodology for assessing progress with regard to those measures;
be set using a methodology that ensures non-discriminatory treatment of suppliers;
be set at a price that is above cost, at a level where effective price competition can occur;
be designed to minimise any negative impact on the wholesale electricity market;
ensure that all beneficiaries of such public interventions have the possibility to choose competitive market offers and are directly informed at least every quarter of the availability of offers and savings in the competitive market, in particular of dynamic electricity price contracts, and shall ensure that they are provided with assistance to switch to a market-based offer;
ensure that, pursuant to Articles 19 and 21, all beneficiaries of such public interventions are entitled to, and are offered to, have smart meters installed at no extra upfront cost to the customer, are directly informed of the possibility of installing smart meters and are provided with necessary assistance;
not lead to direct cross-subsidisation between customers supplied at free market prices and those supplied at regulated supply prices.
Article 6
Third-party access
Article 6a
Flexible connection agreements
as a general rule, flexible connections do not delay the network reinforcements in the identified areas;
a conversion from flexible to firm connection agreements once the network is developed is ensured on the basis of established criteria; and
for areas where the regulatory authority or another competent authority where a Member State has so provided, deems network development not to be the most efficient solution, enable, where relevant, flexible connection agreements as a permanent solution, including for energy storage.
the maximum firm injection and withdrawal of electricity from and to the grid, as well as the additional flexible injection and withdrawal capacity that can be connected and differentiated by time blocks throughout the year;
the network charges applicable to both the firm and flexible injection and withdrawal capacities;
the agreed duration of the flexible connection agreement and the expected date for granting connection to the entire requested firm capacity.
The system user connecting through a flexible grid connection shall be required to install a power control system that is certified by an authorised certifier.
Article 7
Direct lines
Member States shall take the measures necessary to enable:
all producers and electricity supply undertakings established within their territory to supply their own premises, subsidiaries and customers through a direct line, without being subject to disproportionate administrative procedures or costs;
all customers within their territory, individually or jointly, to be supplied through a direct line by producers and electricity supply undertakings.
Article 8
Authorisation procedure for new capacity
Member States shall lay down the criteria for the grant of authorisations for the construction of generating capacity in their territory. In determining appropriate criteria, Member States shall consider:
the safety and security of the electricity system, installations and associated equipment;
the protection of public health and safety;
the protection of the environment;
land use and siting;
the use of public ground;
energy efficiency;
the nature of the primary sources;
the characteristics particular to the applicant, such as technical, economic and financial capabilities;
compliance with measures adopted pursuant to Article 9;
the contribution of generating capacity to meeting the overall Union target of at least a 32 % share of energy from renewable sources in the Union's gross final consumption of energy in 2030 referred to in Article 3(1) of Directive (EU) 2018/2001 of the European Parliament and of the Council ( 5 );
the contribution of generating capacity to reducing emissions; and
the alternatives to the construction of new generating capacity, such as demand response solutions and energy storage.
Member States may set guidelines for that specific authorisation procedure. Regulatory authorities or other competent national authorities, including planning authorities, shall review those guidelines and may recommend amendments thereto.
Where Member States have established particular land use permit procedures applying to major new infrastructure projects in generation capacity, Member States shall, where appropriate, include the construction of new generation capacity within the scope of those procedures and shall implement them in a non-discriminatory manner and within an appropriate time frame.
Article 9
Public service obligations
CHAPTER III
CONSUMER EMPOWERMENT AND PROTECTION
Article 10
Basic contractual rights
Final customers shall have the right to a contract with their supplier that specifies:
the identity and address of the supplier;
the services provided, the service quality levels offered, as well as the time for the initial connection;
the types of maintenance service offered;
the means by which up-to-date information on all applicable tariffs, maintenance charges and bundled products or services may be obtained;
the duration of the contract, the conditions for renewal and termination of the contract and services, including products or services that are bundled with those services, and whether terminating the contract without charge is permitted;
any compensation and the refund arrangements which apply if contracted service quality levels are not met, including inaccurate or delayed billing;
the method of initiating an out-of-court dispute settlement procedure in accordance with Article 26;
information relating to consumer rights, including information on complaint handling and all of the information referred to in this paragraph, that is clearly communicated on the bill or the electricity undertaking's web site.
Conditions shall be fair and well known in advance. In any case, this information shall be provided prior to the conclusion or confirmation of the contract. Where contracts are concluded through intermediaries, the information relating to the matters set out in this paragraph shall also be provided prior to the conclusion of the contract.
Final customers shall be provided with a summary of the key contractual conditions in a prominent manner and in concise and simple language.
Article 11
Entitlement to a fixed-term, fixed-price electricity supply contract and to a dynamic electricity price contract
By way of derogation from the first subparagraph, Member States may exempt a supplier with more than 200 000 final customers from the obligation to offer fixed-term, fixed-price electricity supply contracts, where:
the supplier offers only dynamic price contracts;
the exemption does not have a negative impact on competition; and
there remains a sufficient choice of fixed-term, fixed-price electricity supply contracts for final customers.
Member States shall ensure that suppliers do not unilaterally modify the terms and conditions of fixed-term, fixed-price electricity supply contracts and do not terminate such contracts before they reach their maturity.
the total price and its breakdown;
an explanation as to whether the price is fixed, variable or dynamic;
the supplier’s email address and the details of a consumer support hotline; and
where relevant, information on one-time payments, promotions, additional services and discounts.
The Commission shall provide guidance in that regard.
monitor the market developments and assess the risks that the new products and services may entail and address abusive practices;
take appropriate measures where impermissible termination fees are identified in accordance with Article 12(3).
Article 12
Right to switch and rules on switching-related fees
Article 13
Aggregation contract
Member States shall ensure that market participants engaged in aggregation fully inform customers of the terms and conditions of the contracts that they offer to them.
Article 14
Comparison tools
Member States shall ensure that at least household customers, and microenterprises with an expected yearly consumption of below 100 000 kWh, have access, free of charge, to at least one tool comparing the offers of suppliers, including offers for dynamic electricity price contracts. Customers shall be informed of the availability of such tools in or together with their bills or by other means. The tools shall meet at least the following requirements:
they shall be independent from market participants and ensure that electricity undertakings are given equal treatment in search results;
they shall clearly disclose their owners and the natural or legal person operating and controlling the tools, as well as information on how the tools are financed;
they shall set out clear and objective criteria on which the comparison is to be based, including services, and disclose them;
they shall use plain and unambiguous language;
they shall provide accurate and up-to-date information and state the time of the last update;
they shall be accessible to persons with disabilities, by being perceivable, operable, understandable and robust;
they shall provide an effective procedure for reporting incorrect information on published offers; and
they shall perform comparisons, while limiting the personal data requested to that strictly necessary for the comparison.
Member States shall ensure that at least one tool covers the entire market. Where multiple tools cover the market, those tools shall include, as complete as practicable, a range of electricity offers covering a significant part of the market and, where those tools do not completely cover the market, a clear statement to that effect, before displaying results.
Article 15
Active customers
Member States shall ensure that active customers are:
entitled to operate either directly or through aggregation;
entitled to sell self-generated electricity, including through power purchase agreements;
entitled to participate in flexibility schemes and energy efficiency schemes;
entitled to delegate to a third party the management of the installations required for their activities, including installation, operation, data handling and maintenance, without that third party being considered to be an active customer;
subject to cost-reflective, transparent and non-discriminatory network charges that account separately for the electricity fed into the grid and the electricity consumed from the grid, in accordance with Article 59(9) of this Directive and Article 18 of Regulation (EU) 2019/943, ensuring that they contribute in an adequate and balanced way to the overall cost sharing of the system;
financially responsible for the imbalances they cause in the electricity system; to that extent they shall be balance responsible parties or shall delegate their balancing responsibility in accordance with Article 5 of Regulation (EU) 2019/943.
Member States shall ensure that active customers that own an energy storage facility:
have the right to a grid connection within a reasonable time after the request, provided that all necessary conditions, such as balancing responsibility and adequate metering, are fulfilled;
are not subject to any double charges, including network charges, for stored electricity remaining within their premises or when providing flexibility services to system operators;
are not subject to disproportionate licensing requirements or fees;
are allowed to provide several services simultaneously, if technically feasible.
Article 15a
Right to energy sharing
communicating about the energy sharing arrangements with other relevant entities, such as suppliers and network operators, including on aspects related to the applicable tariffs and charges, taxes or levies;.
providing support for managing and balancing behind-the-meter flexible loads, distributed renewable energy generation and storage facilities that are part of the relevant energy sharing arrangement;
contracting and billing active customers that participate in energy sharing;
installation and operation, including metering and maintenance, of the renewable energy generation or storage facility.
The energy sharing organiser or another third party may own or manage a storage or renewable energy generation facility of up to 6 MW, without being considered to be an active customer, except where it is one of the active customers participating in the energy sharing project. The energy sharing organiser shall provide non-discriminatory services and transparent prices, tariffs, and terms of services. With regard to the first subparagraph, point (c), of this paragraph, Articles 10, 12 and 18 shall apply. Member States shall lay down the regulatory framework for the application of this paragraph.
are entitled to have the shared electricity injected into the grid deducted from their total metered consumption within a time interval no longer than the imbalance settlement period and without prejudice to applicable non-discriminatory taxes, levies and cost-reflective network charges;
benefit from all consumer rights and obligations as final customers under this Directive;
are not required to comply with supplier obligations, where renewable energy is shared between households with an installed capacity up to 10,8 kW for single households and up to 50 kW for multi-apartment blocks;
have access to voluntary template contracts with fair and transparent terms and conditions for energy sharing agreements;
in the event of a conflict arising from an energy-sharing agreement, have access to out-of-court dispute settlement with other participants in the energy sharing agreement in accordance with Article 26;
are not subject to unfair and discriminatory treatment by market participants or their balance responsible parties;
are informed of the possibility of changes in bidding zones in accordance with Article 14 of Regulation (EU) 2019/943 and of the fact that the right to share renewable energy is restricted in accordance with paragraph 1 of this Article;
notify energy sharing arrangements to the relevant system operators and market participants, including the relevant suppliers either directly or through an energy sharing organiser.
Member States may adapt the thresholds referred to in point (c) of the first subparagraph in accordance with the following:
in the case of single households, the threshold may be increased up to 30 kW;
in the case of multi-apartment blocks the threshold may be increased up to 100 kW or, in the case of duly justified specific circumstances due to a reduced average size of multi-apartment blocks, decreased to a minimum of 40 kW.
the size of the installed capacity of the generation facility associated with the energy sharing scheme is to be a maximum of 6 MW;
the energy sharing takes place within a local or limited geographical area, as defined by the Member State concerned.
monitor, collect, validate and communicate metering data related to the shared electricity with relevant final customers and market participants at least every month, and in accordance with Article 23, and for that purpose, put in place the appropriate IT systems;
provide a relevant contact point to:
register energy sharing arrangements;
make available practical information for energy sharing;
receive information on relevant metering points, changes in location and participation; and
where applicable, validate calculation methods in a clear, transparent and timely manner.
Article 16
Citizen energy communities
Member States shall provide an enabling regulatory framework for citizen energy communities ensuring that:
participation in a citizen energy community is open and voluntary;
members or shareholders of a citizen energy community are entitled to leave the community, in which case Article 12 applies;
members or shareholders of a citizen energy community do not lose their rights and obligations as household customers or active customers;
subject to fair compensation as assessed by the regulatory authority, relevant distribution system operators cooperate with citizen energy communities to facilitate electricity transfers within citizen energy communities;
citizen energy communities are subject to non-discriminatory, fair, proportionate and transparent procedures and charges, including with respect to registration and licensing, and to transparent, non-discriminatory and cost-reflective network charges in accordance with Article 18 of Regulation (EU) 2019/943, ensuring that they contribute in an adequate and balanced way to the overall cost sharing of the system.
Member States may provide in the enabling regulatory framework that citizen energy communities:
are open to cross-border participation;
are entitled to own, establish, purchase or lease distribution networks and to autonomously manage them subject to conditions set out in paragraph 4 of this Article;
are subject to the exemptions provided for in Article 38(2).
Member States shall ensure that citizen energy communities:
are able to access all electricity markets, either directly or through aggregation, in a non-discriminatory manner;
are treated in a non-discriminatory and proportionate manner with regard to their activities, rights and obligations as final customers, producers, suppliers, distribution system operators or market participants engaged in aggregation;
are financially responsible for the imbalances they cause in the electricity system; to that extent they shall be balance responsible parties or shall delegate their balancing responsibility in accordance with Article 5 of Regulation (EU) 2019/943;
with regard to consumption of self-generated electricity, citizen energy communities are treated like active customers in accordance with point (e) of Article 15(2);
are entitled to arrange within the citizen energy community the sharing of electricity that is produced by the production units owned by the community, subject to other requirements laid down in this Article and subject to the community members retaining their rights and obligations as final customers.
For the purposes of point (e) of the first subparagraph, where electricity is shared, this shall be without prejudice to applicable network charges, tariffs and levies, in accordance with a transparent cost-benefit analysis of distributed energy resources developed by the competent national authority.
Member States may decide to grant citizen energy communities the right to manage distribution networks in their area of operation and establish the relevant procedures, without prejudice to Chapter IV or to other rules and regulations applying to distribution system operators. If such a right is granted, Member States shall ensure that citizen energy communities:
are entitled to conclude an agreement on the operation of their network with the relevant distribution system operator or transmission system operator to which their network is connected;
are subject to appropriate network charges at the connection points between their network and the distribution network outside the citizen energy community and that such network charges account separately for the electricity fed into the distribution network and the electricity consumed from the distribution network outside the citizen energy community in accordance with Article 59(7);
do not discriminate or harm customers who remain connected to the distribution system.
Article 17
Demand response through aggregation
Member States shall ensure that their relevant regulatory framework contains at least the following elements:
the right for each market participant engaged in aggregation, including independent aggregators, to enter electricity markets without the consent of other market participants;
non-discriminatory and transparent rules that clearly assign roles and responsibilities to all electricity undertakings and customers;
non-discriminatory and transparent rules and procedures for the exchange of data between market participants engaged in aggregation and other electricity undertakings that ensure easy access to data on equal and non-discriminatory terms while fully protecting commercially sensitive information and customers' personal data;
an obligation on market participants engaged in aggregation to be financially responsible for the imbalances that they cause in the electricity system; to that extent they shall be balance responsible parties or shall delegate their balancing responsibility in accordance with Article 5 of Regulation (EU) 2019/943;
provision for final customers who have a contract with independent aggregators not to be subject to undue payments, penalties or other undue contractual restrictions by their suppliers;
a conflict resolution mechanism between market participants engaged in aggregation and other market participants, including responsibility for imbalances.
Article 18
Bills and billing information
Article 18a
Supplier risk management
have in place and implement appropriate hedging strategies, to limit the risk of changes in wholesale electricity supply to the economic viability of their contracts with customers, while maintaining liquidity on and price signals from short-term markets;
take all reasonable steps to limit their risk of supply failure.
Article 19
Smart metering systems
For the purpose of this paragraph, ‘start of works’ means either the start of construction works on the investment or the first firm commitment to order equipment or other commitment that makes the investment irreversible, whichever is the first in time. Buying of land and preparatory works such as obtaining permits and conducting preliminary feasibility studies are not considered as start of works. For take-overs, ‘start of works’ means the moment of acquiring the assets directly linked to the acquired establishment.
Article 20
Functionalities of smart metering systems
Where the deployment of smart metering systems is positively assessed as a result of the cost-benefit assessment referred to in Article 19(2), or where smart metering systems are systematically deployed after 4 July 2019, Member States shall deploy smart metering systems in accordance with European standards, Annex II and the following requirements:
the smart metering systems shall accurately measure actual electricity consumption and shall be capable of providing to final customers information on actual time of use. Validated historical consumption data shall be made easily and securely available and visualised to final customers on request and at no additional cost. Non-validated near real-time consumption data shall also be made easily and securely available to final customers at no additional cost, through a standardised interface or through remote access, in order to support automated energy efficiency programmes, demand response and other services;
the security of the smart metering systems and data communication shall comply with relevant Union security rules, having due regard of the best available techniques for ensuring the highest level of cybersecurity protection while bearing in mind the costs and the principle of proportionality;
the privacy of final customers and the protection of their data shall comply with relevant Union data protection and privacy rules;
meter operators shall ensure that the meters of active customers who feed electricity into the grid can account for electricity fed into the grid from the active customers' premises;
if final customers request it, data on the electricity they fed into the grid and their electricity consumption data shall be made available to them, in accordance with the implementing acts adopted pursuant to Article 24, through a standardised communication interface or through remote access, or to a third party acting on their behalf, in an easily understandable format allowing them to compare offers on a like-for-like basis;
appropriate advice and information shall be given to final customers prior to or at the time of installation of smart meters, in particular concerning their full potential with regard to the management of meter reading and the monitoring of energy consumption, and concerning the collection and processing of personal data in accordance with the applicable Union data protection rules;
smart metering systems shall enable final customers to be metered and settled at the same time resolution as the imbalance settlement period in the national market.
For the purposes of point (e) of the first subparagraph, it shall be possible for final customers to retrieve their metering data or transmit them to another party at no additional cost and in accordance with their right to data portability under Union data protection rules.
Article 21
Entitlement to a smart meter
Where the deployment of smart metering systems has been negatively assessed as a result of the cost-benefit assessment referred to in Article 19(2) and where smart metering systems are not systematically deployed, Member States shall ensure that every final customer is entitled on request, while bearing the associated costs, to have installed or, where applicable, to have upgraded, under fair, reasonable and cost-effective conditions, a smart meter that:
is equipped, where technically feasible, with the functionalities referred to in Article 20, or with a minimum set of functionalities to be defined and published by Member States at national level in accordance with Annex II;
is interoperable and able to deliver the desired connectivity of the metering infrastructure with consumer energy management systems in near real-time.
In the context of a customer request for a smart meter pursuant to paragraph 1, Member States or, where a Member State has so provided, the designated competent authorities shall:
ensure that the offer to the final customer requesting the installation of a smart meter explicitly states and clearly describes:
the functions and interoperability that can be supported by the smart meter and the services that are feasible as well as the benefits that can be realistically attained by having that smart meter at that moment in time;
any associated costs to be borne by the final customer;
ensure that it is installed within a reasonable time, no later than four months after the customer's request;
regularly, and at least every two years, review and make publicly available the associated costs, and trace the evolution of those costs as a result of technology developments and potential metering system upgrades.
Article 22
Conventional meters
Article 23
Data management
Independently of the data management model applied in each Member State, the parties responsible for data management shall provide access to the data of the final customer to any eligible party, in accordance with paragraph 1. Eligible parties shall have the requested data at their disposal in a non-discriminatory manner and simultaneously. Access to data shall be easy and the relevant procedures for obtaining access to data shall be made publicly available.
The processing of personal data within the framework of this Directive shall be carried out in accordance with Regulation (EU) 2016/679.
Without prejudice to the tasks of the data protection officers under Regulation (EU) 2016/679, Member States may decide to require that parties responsible for the data management appoint compliance officers who are to be responsible for monitoring the implementation of measures taken by those parties to ensure non-discriminatory access to data and compliance with the requirements of this Directive.
Member States may appoint compliance officers or bodies referred to in point (d) of Article 35(2) of this Directive to fulfil the obligations under this paragraph.
Member States shall be responsible for setting the relevant charges for access to data by eligible parties.
Member States or, where a Member State has so provided, the designated competent authorities shall ensure that any charges imposed by regulated entities that provide data services are reasonable and duly justified.
Article 24
Interoperability requirements and procedures for access to data
Article 25
Single points of contact
Member States shall ensure the provision of single points of contact, to provide customers with all necessary information concerning their rights, the applicable law and dispute settlement mechanisms available to them in the event of a dispute. Such single points of contact may be part of general consumer information points.
Article 26
Right to out-of-court dispute settlement
Article 27
Universal service
Article 27a
Supplier of last resort
Article 28
Vulnerable customers
Article 28a
Protection from disconnections
When notifying the Commission of their transposition measures of this Directive, Member States shall explain the relationship between the first subparagraph and the corresponding parts of national transposition instruments.
promoting voluntary codes for suppliers and customers on preventing and managing cases of customers in arrears; those arrangements may concern support for customers in managing their energy use and costs, including flagging unusual high energy spikes or use in winter and summer seasons, offering appropriate flexible payment plans, debt advice measures, self-metering readings, and improved communication with customers and support agencies;
promoting customers’ education and awareness of their rights with regard to debt management;
access to finance, vouchers or subsidies to support the payment of bills;
encouraging and facilitating the provision of meter readings every three months, or where relevant for shorter billing periods, where a system of regular self-reading by the final customer has been implemented to meet the obligations of points 2(a) and (b) of Annex I in relation to the frequency of billing and the provision of billing information.
Article 29
Energy poverty
When assessing the number of households in energy poverty pursuant to point (d) of Article 3(3) of Regulation (EU) 2018/1999, Member States shall establish and publish a set of criteria, which may include low income, high expenditure of disposable income on energy and poor energy efficiency.
The Commission shall provide guidance on the definition of ‘significant number of households in energy poverty’ in this context and in the context of Article 5(5), starting from the premise that any proportion of households in energy poverty can be considered to be significant.
CHAPTER IV
DISTRIBUTION SYSTEM OPERATION
Article 30
Designation of distribution system operators
Member States shall designate or shall require undertakings that own or are responsible for distribution systems to designate one or more distribution system operators for a period of time to be determined by the Member States, having regard to considerations of efficiency and economic balance.
Article 31
Tasks of distribution system operators
Distribution system operators shall provide in a transparent manner clear information to system users about the status and treatment of their connection requests. They shall provide such information within three months of the submission of the request. Where the requested connection is neither granted nor permanently rejected, distribution system operators shall update that information on a regular basis, at least quarterly.
Member States shall encourage integrated electricity undertakings which serve fewer than 100 000 connected customers to provide system users with the information referred to in paragraph 3 once a year and promote cooperation between distribution system operators for that purpose.
Article 32
Incentives for the use of flexibility in distribution networks
Article 33
Integration of electromobility into the electricity network
By way of derogation from paragraph 2, Member States may allow distribution system operators to own, develop, manage or operate recharging points for electric vehicles, provided that all of the following conditions are fulfilled:
other parties, following an open, transparent and non-discriminatory tendering procedure that is subject to review and approval by the regulatory authority, have not been awarded a right to own, develop, manage or operate recharging points for electric vehicles, or could not deliver those services at a reasonable cost and in a timely manner;
the regulatory authority has carried out an ex ante review of the conditions of the tendering procedure under point (a) and has granted its approval;
the distribution system operator operates the recharging points on the basis of third-party access in accordance with Article 6 and does not discriminate between system users or classes of system users, and in particular in favour of its related undertakings.
The regulatory authority may draw up guidelines or procurement clauses to help distribution system operators ensure a fair tendering procedure.
Article 34
Tasks of distribution system operators in data management
Member States shall ensure that all eligible parties have non-discriminatory access to data under clear and equal terms, in accordance with the relevant data protection rules. In Member States where smart metering systems have been deployed in accordance with Article 19 and where distribution system operators are involved in data management, the compliance programmes referred to in point (d) of Article 35(2) shall include specific measures in order to exclude discriminatory access to data from eligible parties as provided for in Article 23. Where distribution system operators are not subject to Article 35(1), (2) or (3), Member States shall take all necessary measures to ensure that vertically integrated undertakings do not have privileged access to data for the conduct of their supply activities.
Article 35
Unbundling of distribution system operators
In addition to the requirements under paragraph 1, where the distribution system operator is part of a vertically integrated undertaking, it shall be independent in terms of its organisation and decision-making from the other activities not related to distribution. In order to achieve this, the following minimum criteria shall apply:
the persons responsible for the management of the distribution system operator must not participate in company structures of the integrated electricity undertaking responsible, directly or indirectly, for the day-to-day operation of the generation, transmission or supply of electricity;
appropriate measures must be taken to ensure that the professional interests of the persons responsible for the management of the distribution system operator are taken into account in a manner that ensures that they are capable of acting independently;
the distribution system operator must have effective decision-making rights, independent from the integrated electricity undertaking, with respect to assets necessary to operate, maintain or develop the network. In order to fulfil those tasks, the distribution system operator shall have at its disposal the necessary resources including human, technical, physical and financial resources. This should not prevent the existence of appropriate coordination mechanisms to ensure that the economic and management supervision rights of the parent company in respect of return on assets, regulated indirectly in accordance with Article 59(7), in a subsidiary are protected. In particular, this shall enable the parent company to approve the annual financial plan, or any equivalent instrument, of the distribution system operator and to set global limits on the levels of indebtedness of its subsidiary. It shall not permit the parent company to give instructions regarding day-to-day operations, nor with respect to individual decisions concerning the construction or upgrading of distribution lines, that do not exceed the terms of the approved financial plan, or any equivalent instrument; and
the distribution system operator must establish a compliance programme, which sets out measures taken to ensure that discriminatory conduct is excluded, and ensure that observance of it is adequately monitored. The compliance programme shall set out the specific obligations of employees to meet that objective. An annual report, setting out the measures taken, shall be submitted by the person or body responsible for monitoring the compliance programme, the compliance officer of the distribution system operator, to the regulatory authority referred to in Article 57(1) and shall be published. The compliance officer of the distribution system operator shall be fully independent and shall have access to all the necessary information of the distribution system operator and any affiliated undertaking to fulfil its task.
Article 36
Ownership of energy storage facilities by distribution system operators
By way of derogation from paragraph 1, Member States may allow distribution system operators to own, develop, manage or operate energy storage facilities, where they are fully integrated network components and the regulatory authority has granted its approval, or where all of the following conditions are fulfilled:
other parties, following an open, transparent and non-discriminatory tendering procedure that is subject to review and approval by the regulatory authority, have not been awarded a right to own, develop, manage or operate such facilities, or could not deliver those services at a reasonable cost and in a timely manner;
such facilities are necessary for the distribution system operators to fulfil their obligations under this Directive for the efficient, reliable and secure operation of the distribution system and the facilities are not used to buy or sell electricity in the electricity markets; and
the regulatory authority has assessed the necessity of such a derogation and has carried out an assessment of the tendering procedure, including the conditions of the tendering procedure, and has granted its approval.
The regulatory authority may draw up guidelines or procurement clauses to help distribution system operators ensure a fair tendering procedure.
Paragraph 3 shall not apply to fully integrated network components or for the usual depreciation period of new battery storage facilities with a final investment decision until 4 July 2019, provided that such battery storage facilities are:
connected to the grid at the latest two years thereafter;
integrated into the distribution system;
used only for the reactive instantaneous restoration of network security in the case of network contingencies where such restoration measure starts immediately and ends when regular re-dispatch can solve the issue; and
not used to buy or sell electricity in the electricity markets, including balancing.
Article 37
Confidentiality obligation of distribution system operators
Without prejudice to Article 55 or another legal requirement to disclose information, the distribution system operator shall preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its business, and shall prevent information about its own activities which may be commercially advantageous from being disclosed in a discriminatory manner.
Article 38
Closed distribution systems
Member States may provide for regulatory authorities or other competent authorities to classify a system which distributes electricity within a geographically confined industrial, commercial or shared services site and does not, without prejudice to paragraph 4, supply household customers, as a closed distribution system if:
for specific technical or safety reasons, the operations or the production process of the users of that system are integrated; or
that system distributes electricity primarily to the owner or operator of the system or their related undertakings.
Closed distribution systems shall be considered to be distribution systems for the purposes of this Directive. Member States may provide for regulatory authorities to exempt the operator of a closed distribution system from:
the requirement under Article 31(5) and (7) to procure the energy it uses to cover energy losses and the non-frequency ancillary services in its system in accordance with transparent, non-discriminatory and market-based procedures;
the requirement under Article 6(1) that tariffs, or the methodologies underlying their calculation, are approved in accordance with Article 59(1) prior to their entry into force;
the requirements under Article 32(1) to procure flexibility services and under Article 32(3) to develop the operator's system on the basis of network development plans;
the requirement under Article 33(2) not to own, develop, manage or operate recharging points for electric vehicles; and
the requirement under Article 36(1) not to own, develop, manage or operate energy storage facilities.
Article 39
Combined operator
Article 35(1) shall not prevent the operation of a combined transmission and distribution system operator, provided that the operator complies with Article 43(1), Articles 44 and 45, or Section 3 of Chapter VI, or that the operator falls under Article 66(3).
CHAPTER V
GENERAL RULES APPLICABLE TO TRANSMISSION SYSTEM OPERATORS
Article 40
Tasks of transmission system operators
Each transmission system operator shall be responsible for:
ensuring the long-term ability of the system to meet reasonable demands for the transmission of electricity, operating, maintaining and developing under economic conditions secure, reliable and efficient transmission system with due regard to the environment, in close cooperation with neighbouring transmission system operators and distribution system operators;
ensuring adequate means to meet its obligations;
contributing to security of supply through adequate transmission capacity and system reliability;
managing electricity flows on the system, taking into account exchanges with other interconnected systems. To that end, the transmission system operator shall be responsible for ensuring a secure, reliable and efficient electricity system and, in that context, for ensuring the availability of all necessary ancillary services, including those provided by demand response and energy storage facilities, insofar as such availability is independent from any other transmission systems with which its system is interconnected;
providing to the operator of other systems with which its system is interconnected sufficient information to ensure the secure and efficient operation, coordinated development and interoperability of the interconnected system;
ensuring non-discrimination as between system users or classes of system users, particularly in favour of its related undertakings;
providing system users with the information they need for efficient access to the system;
collecting congestion rents and payments under the inter-transmission system operator compensation mechanism, in accordance with Article 49 of Regulation (EU) 2019/943, granting and managing third-party access and giving reasoned explanations when it denies such access, which shall be monitored by the regulatory authorities; in carrying out their tasks under this Article transmission system operators shall primarily facilitate market integration;
procuring ancillary services to ensure operational security;
adopting a framework for cooperation and coordination between the regional coordination centres;
participating in the establishment of the European and national resource adequacy assessments pursuant to Chapter IV of Regulation (EU) 2019/943;
the digitalisation of transmission systems;
data management, including the development of data management systems, cybersecurity and data protection, subject to the applicable rules, and without prejudice to the competence of other authorities.
The transmission system operator which owns the transmission system shall fulfil the requirements provided for in Chapter VI and be certified in accordance with Article 43. This shall be without prejudice to the possibility for transmission system operators which are certified under the ownership unbundling, the independent system operator or the independent transmission system operator model to delegate, on their own initiative and under their supervision, certain tasks to other transmission system operators which are certified under the ownership unbundling, the independent system operator or the independent transmission system operator model where that delegation of tasks does not endanger the effective and independent decision-making rights of the delegating transmission system operator.
In performing the task referred to in point (i) of paragraph 1, transmission system operators shall procure balancing services subject to the following:
transparent, non-discriminatory and market-based procedures;
the participation of all qualified electricity undertakings and market participants, including market participants offering energy from renewable sources, market participants engaged in demand response, operators of energy storage facilities and market participants engaged in aggregation.
For the purpose of point (b) of the first subparagraph, regulatory authorities and transmission system operators shall, in close cooperation with all market participants, establish technical requirements for participation in those markets, on the basis of the technical characteristics of those markets.
Article 41
Confidentiality and transparency requirements for transmission system operators and transmission system owners
Article 42
Decision-making powers regarding the connection of new generating installations and energy storage facilities to the transmission system
The first subparagraph shall be without prejudice to the possibility for transmission system operators to limit the guaranteed connection capacity or to offer connections subject to operational limitations, in order to ensure economic efficiency regarding new generating installations or energy storage facilities, provided that such limitations have been approved by the regulatory authority. The regulatory authority shall ensure that any limitations in guaranteed connection capacity or operational limitations are introduced on the basis of transparent and non-discriminatory procedures and do not create undue barriers to market entry. Where the generating installation or energy storage facility bears the costs related to ensuring unlimited connection, no limitation shall apply.
CHAPTER VI
UNBUNDLING OF TRANSMISSION SYSTEM OPERATORS
Article 43
Ownership unbundling of transmission systems and transmission system operators
Member States shall ensure that:
each undertaking which owns a transmission system acts as a transmission system operator;
the same person or persons are not entitled either:
directly or indirectly to exercise control over an undertaking performing any of the functions of generation or supply, and directly or indirectly to exercise control or exercise any right over a transmission system operator or over a transmission system; or
directly or indirectly to exercise control over a transmission system operator or over a transmission system, and directly or indirectly to exercise control or exercise any right over an undertaking performing any of the functions of generation or supply;
the same person or persons are not entitled to appoint members of the supervisory board, the administrative board or bodies legally representing the undertaking, of a transmission system operator or a transmission system, and directly or indirectly to exercise control or exercise any right over an undertaking performing any of the functions of generation or supply; and
the same person is not entitled to be a member of the supervisory board, the administrative board or bodies legally representing the undertaking, of both an undertaking performing any of the functions of generation or supply and a transmission system operator or a transmission system.
The rights referred to in points (b) and (c) of paragraph 1 shall include, in particular:
the power to exercise voting rights;
the power to appoint members of the supervisory board, the administrative board or bodies legally representing the undertaking; or
the holding of a majority share.
In such case, the Member State concerned shall either:
designate an independent system operator in accordance with Article 44; or
comply with Section 3.
Article 44
Independent system operator
The Member State may approve and designate an independent system operator provided that:
the candidate operator has demonstrated that it complies with the requirements laid down in points (b), (c) and (d) of Article 43(1);
the candidate operator has demonstrated that it has at its disposal the required financial, technical, physical and human resources to carry out its tasks under Article 40;
the candidate operator has undertaken to comply with a ten-year network development plan monitored by the regulatory authority;
the transmission system owner has demonstrated its ability to comply with its obligations under paragraph 5. To that end, it shall provide all the draft contractual arrangements with the candidate operator and any other relevant entity; and
the candidate operator has demonstrated its ability to comply with its obligations under Regulation (EU) 2019/943, including the cooperation of transmission system operators at European and regional level.
Where an independent system operator has been designated, the transmission system owner shall:
provide all the relevant cooperation and support to the independent system operator for the fulfilment of its tasks, including in particular all relevant information;
finance the investments decided by the independent system operator and approved by the regulatory authority, or give its agreement to financing by any interested party including the independent system operator. The relevant financing arrangements shall be subject to approval by the regulatory authority. Prior to such approval, the regulatory authority shall consult the transmission system owner together with the other interested parties;
provide for the coverage of liability relating to the network assets, excluding the liability relating to the tasks of the independent system operator; and
provide guarantees to facilitate financing any network expansions with the exception of those investments where, pursuant to point (b), it has given its agreement to financing by any interested party including the independent system operator.
Article 45
Unbundling of transmission system owners
In order to ensure the independence of the transmission system owner referred to in paragraph 1, the following minimum criteria shall apply:
persons responsible for the management of the transmission system owner shall not participate in company structures of the integrated electricity undertaking responsible, directly or indirectly, for the day-to-day operation of the generation, distribution and supply of electricity;
appropriate measures shall be taken to ensure that the professional interests of persons responsible for the management of the transmission system owner are taken into account in a manner that ensures that they are capable of acting independently; and
the transmission system owner shall establish a compliance programme, which sets out measures taken to ensure that discriminatory conduct is excluded, and ensure that observance of it is adequately monitored. The compliance programme shall set out the specific obligations of employees to meet those objectives. An annual report, setting out the measures taken, shall be submitted by the person or body responsible for monitoring the compliance programme to the regulatory authority and shall be published.
Article 46
Assets, equipment, staff and identity
Transmission system operators shall be equipped with all human, technical, physical and financial resources necessary for fulfilling their obligations under this Directive and carrying out the activity of electricity transmission, in particular:
assets that are necessary for the activity of electricity transmission, including the transmission system, shall be owned by the transmission system operator;
personnel, necessary for the activity of electricity transmission, including the performance of all corporate tasks, shall be employed by the transmission system operator;
leasing of personnel and rendering of services, to and from other parts of the vertically integrated undertaking shall be prohibited. A transmission system operator may, however, render services to the vertically integrated undertaking, provided that:
the provision of those services does not discriminate between system users, is available to all system users on the same terms and conditions and does not restrict, distort or prevent competition in generation or supply; and
the terms and conditions of the provision of those services are approved by the regulatory authority;
without prejudice to the decisions of the Supervisory Body under Article 49, appropriate financial resources for future investment projects and/or for the replacement of existing assets shall be made available to the transmission system operator in due time by the vertically integrated undertaking after an appropriate request from the transmission system operator.
The activity of electricity transmission shall include at least the following tasks in addition to those listed in Article 40:
the representation of the transmission system operator and contacts to third parties and the regulatory authorities;
the representation of the transmission system operator within the ENTSO for Electricity;
granting and managing third-party access on a non-discriminatory basis between system users or classes of system users;
the collection of all the transmission system related charges including access charges, energy for losses and ancillary services charges;
the operation, maintenance and development of a secure, efficient and economic transmission system;
investment planning ensuring the long-term ability of the system to meet reasonable demand and guaranteeing security of supply;
the setting up of appropriate joint ventures, including with one or more transmission system operators, power exchanges, and the other relevant actors pursuing the objectives to develop the creation of regional markets or to facilitate the liberalisation process; and
all corporate services, including legal services, accountancy and IT services.
Article 47
Independence of the transmission system operator
Without prejudice to the decisions of the Supervisory Body under Article 49, the transmission system operator shall have:
effective decision-making rights, independent from the vertically integrated undertaking, with respect to assets necessary to operate, maintain or develop the transmission system; and
the power to raise money on the capital market in particular through borrowing and capital increase.
Article 48
Independence of the staff and the management of the transmission system operator
The regulatory authority may object to the decisions referred to in paragraph 1 where:
doubts arise as to the professional independence of a nominated person responsible for the management and/or member of the administrative bodies; or
in the case of premature termination of a term of office, doubts exist regarding the justification of such premature termination.
The persons responsible for the management and/or members of the administrative bodies of the transmission system operator who are not subject to paragraph 3 shall have exercised no management or other relevant activity in the vertically integrated undertaking for a period of at least six months before their appointment.
The first subparagraph of this paragraph and paragraphs 4 to 7 shall be applicable to all the persons belonging to the executive management and to those directly reporting to them on matters related to the operation, maintenance or development of the network.
Article 49
Supervisory Body
Point (b) of the second subparagraph of Article 48(2) shall apply to all the members of the Supervisory Body.
Article 50
Compliance programme and compliance officer
The compliance officer shall be in charge of:
monitoring the implementation of the compliance programme;
elaborating an annual report, setting out the measures taken in order to implement the compliance programme and submitting it to the regulatory authority;
reporting to the Supervisory Body and issuing recommendations on the compliance programme and its implementation;
notifying the regulatory authority on any substantial breaches with regard to the implementation of the compliance programme; and
reporting to the regulatory authority on any commercial and financial relations between the vertically integrated undertaking and the transmission system operator.
The compliance officer may attend all meetings of the management or administrative bodies of the transmission system operator, and those of the Supervisory Body and the general assembly. The compliance officer shall attend all meetings that address the following matters:
conditions for access to the network, as laid down in Regulation (EU) 2019/943, in particular regarding tariffs, third-party access services, capacity allocation and congestion management, transparency, ancillary services and secondary markets;
projects undertaken in order to operate, maintain and develop the transmission system, including interconnection and connection investments;
energy purchases or sales necessary for the operation of the transmission system.
Article 51
Network development and powers to make investment decisions
The ten-year network development plan shall in particular:
indicate to market participants the main transmission infrastructure that needs to be built or upgraded over the next ten years;
contain all the investments already decided and identify new investments which have to be executed in the next three years; and
provide for a time frame for all investment projects.
The competent national authorities shall examine the consistency of the ten-year network development plan with the national energy and climate plan submitted in accordance with Regulation (EU) 2018/1999.
In circumstances where the transmission system operator, other than for overriding reasons beyond its control, does not execute an investment, which, under the ten-year network development plan, was to be executed in the following three years, Member States shall ensure that the regulatory authority is required to take at least one of the following measures to ensure that the investment in question is made if such investment is still relevant on the basis of the most recent ten-year network development plan:
to require the transmission system operator to execute the investments in question;
to organise a tender procedure open to any investors for the investment in question; or
to oblige the transmission system operator to accept a capital increase to finance the necessary investments and allow independent investors to participate in the capital.
Where the regulatory authority has made use of its powers under point (b) of paragraph 7, it may oblige the transmission system operator to agree to one or more of the following:
financing by any third party;
construction by any third party;
building the new assets concerned itself;
operating the new asset concerned itself.
The transmission system operator shall provide the investors with all information needed to realise the investment, shall connect new assets to the transmission network and shall generally make its best efforts to facilitate the implementation of the investment project.
The relevant financial arrangements shall be subject to approval by the regulatory authority.
Article 52
Designation and certification of transmission system operators
Regulatory authorities shall monitor the continuing compliance of transmission system operators with the requirements of Article 43. They shall open a certification procedure to ensure such compliance:
upon notification by the transmission system operator pursuant to paragraph 3;
on their own initiative where they have knowledge that a planned change in rights or influence over transmission system owners or transmission system operators may lead to an infringement of Article 43, or where they have reason to believe that such an infringement may have occurred; or
upon a reasoned request from the Commission.
Article 53
Certification in relation to third countries
The regulatory authority shall also notify to the Commission without delay any circumstances that would result in a person or persons from a third country or third countries acquiring control of a transmission system or a transmission system operator.
The regulatory authority shall adopt a draft decision on the certification of a transmission system operator within four months of the date of notification by the transmission system operator. It shall refuse the certification if it has not been demonstrated:
that the entity concerned complies with the requirements of Article 43; and
to the regulatory authority or to another competent national authority designated by the Member State that granting certification will not put at risk the security of energy supply of the Member State and the Union. In considering that question the regulatory authority or other competent national authority shall take into account:
the rights and obligations of the Union with respect to that third country arising under international law, including any agreement concluded with one or more third countries to which the Union is a party and which addresses the issues of security of energy supply;
the rights and obligations of the Member State with respect to that third country arising under agreements concluded with it, insofar as they comply with Union law; and
other specific facts and circumstances of the case and the third country concerned.
Member States shall provide for the regulatory authority or the designated competent authority referred to in point (b) of paragraph 3, before the regulatory authority adopts a decision on the certification, to request an opinion from the Commission on whether:
the entity concerned complies with the requirements of Article 43; and
granting certification will not put at risk the security of energy supply to the Union.
In preparing the opinion, the Commission may request the views of ACER, the Member State concerned, and interested parties. In the event that the Commission makes such a request, the two-month period shall be extended by two months.
In the absence of an opinion by the Commission within the period referred to in the first and second subparagraphs, the Commission shall be deemed not to raise objections to the decision of the regulatory authority.
When assessing whether the control by a person or persons from a third country or third countries will put at risk the security of energy supply to the Union, the Commission shall take into account:
the specific facts of the case and the third country or third countries concerned; and
the rights and obligations of the Union with respect to that third country or third countries arising under international law, including an agreement concluded with one or more third countries to which the Union is a party and which addresses the issues of security of supply.
Article 54
Ownership of energy storage facilities by transmission system operators
By way of derogation from paragraph 1, Member States may allow transmission system operators to own, develop, manage or operate energy storage facilities, where they are fully integrated network components and the regulatory authority has granted its approval, or where all of the following conditions are fulfilled:
other parties, following an open, transparent and non-discriminatory tendering procedure that is subject to review and approval by the regulatory authority, have not been awarded a right to own, develop, manage or operate such facilities, or could not deliver those services at a reasonable cost and in a timely manner;
such facilities or non-frequency ancillary services are necessary for the transmission system operators to fulfil their obligations under this Directive for the efficient, reliable and secure operation of the transmission system and they are not used to buy or sell electricity in the electricity markets; and
the regulatory authority has assessed the necessity of such a derogation, has carried out an ex ante review of the applicability of a tendering procedure, including the conditions of the tendering procedure, and has granted its approval.
The regulatory authority may draw up guidelines or procurement clauses to help transmission system operators ensure a fair tendering procedure.
Paragraph 4 shall not apply to fully integrated network components or for the usual depreciation period of new battery storage facilities with a final investment decision until 2024, provided that such battery storage facilities are:
connected to the grid at the latest two years thereafter;
integrated into the transmission system;
used only for the reactive instantaneous restoration of network security in the case of network contingencies where such restoration measure starts immediately and ends when regular re-dispatch can solve the issue; and
not used to buy or sell electricity in the electricity markets, including balancing.
Article 55
Right of access to accounts
Article 56
Unbundling of accounts
Undertakings which are not legally obliged to publish their annual accounts shall keep a copy of these at the disposal of the public in their head office.
CHAPTER VII
REGULATORY AUTHORITIES
Article 57
Designation and independence of regulatory authorities
Member States shall guarantee the independence of the regulatory authority and shall ensure that it exercises its powers impartially and transparently. For that purpose, Member States shall ensure that, when carrying out the regulatory tasks conferred upon it by this Directive and related legislation, the regulatory authority:
is legally distinct and functionally independent from other public or private entities;
ensures that its staff and the persons responsible for its management:
act independently from any market interest; and
do not seek or take direct instructions from any government or other public or private entity when carrying out the regulatory tasks. That requirement is without prejudice to close cooperation, as appropriate, with other relevant national authorities or to general policy guidelines issued by the government not related to the regulatory powers and duties under Article 59.
In order to protect the independence of the regulatory authority, Member States shall in particular ensure that:
the regulatory authority can take autonomous decisions, independently from any political body;
the regulatory authority has all the necessary human and financial resources it needs to carry out its duties and exercise its powers in an effective and efficient manner;
the regulatory authority has a separate annual budget allocation and autonomy in the implementation of the allocated budget;
the members of the board of the regulatory authority or, in the absence of a board, the regulatory authority's top management are appointed for a fixed term of five up to seven years, renewable once;
the members of the board of the regulatory authority or, in the absence of a board, the regulatory authority's top management are appointed based on objective, transparent and published criteria, in an independent and impartial procedure, which ensures that the candidates have the necessary skills and experience for the relevant position in the regulatory authority;
conflict of interest provisions are in place and confidentiality obligations extend beyond the end of the mandate of the members of the board of the regulatory authority or, in the absence of a board, the end of the mandate of the regulatory authority's top management;
the members of the board of the regulatory authority or, in the absence of a board, the regulatory authority's top management can be dismissed only based on transparent criteria in place.
In regard to point (d) of the first subparagraph, Member States shall ensure an appropriate rotation scheme for the board or the top management. The members of the board or, in the absence of a board, members of the top management may be relieved from office during their term only if they no longer fulfil the conditions set out in this Article or have been guilty of misconduct under national law.
Article 58
General objectives of the regulatory authority
In carrying out the regulatory tasks specified in this Directive, the regulatory authority shall take all reasonable measures in pursuit of the following objectives within the framework of its duties and powers as laid down in Article 59, in close consultation with other relevant national authorities, including competition authorities, as well as authorities, including regulatory authorities, from neighbouring Member States and neighbouring third countries, as appropriate, and without prejudice to their competence:
promoting, in close cooperation with regulatory authorities of other Member States, the Commission and ACER, a competitive, flexible, secure and environmentally sustainable internal market for electricity within the Union, and effective market opening for all customers and suppliers in the Union, and ensuring appropriate conditions for the effective and reliable operation of electricity networks, taking into account long-term objectives;
developing competitive and properly functioning regional cross-border markets within the Union with a view to achieving the objectives referred to in point (a);
eliminating restrictions on trade in electricity between Member States, including developing appropriate cross-border transmission capacities to meet demand and enhancing the integration of national markets which may facilitate electricity flows across the Union;
helping to achieve, in the most cost-effective way, the development of secure, reliable and efficient non-discriminatory systems that are consumer-oriented, and promoting system adequacy and, in accordance with general energy policy objectives, energy efficiency, as well as the integration of large and small-scale production of electricity from renewable sources and distributed generation in both transmission and distribution networks, and facilitating their operation in relation to other energy networks of gas or heat;
facilitating access to the network for new generation capacity and energy storage facilities, in particular removing barriers that could prevent access for new market entrants and of electricity from renewable sources;
ensuring that system operators and system users are granted appropriate incentives, in both the short and the long term, to increase efficiencies, especially energy efficiency, in system performance and to foster market integration;
ensuring that customers benefit through the efficient functioning of their national market, promoting effective competition and helping to ensure a high level of consumer protection, in close cooperation with relevant consumer protection authorities;
helping to achieve high standards of universal service and of public service in electricity supply, contributing to the protection of vulnerable customers and contributing to the compatibility of necessary data exchange processes for customer switching.
Article 59
Duties and powers of the regulatory authorities
The regulatory authority shall have the following duties:
fixing or approving, in accordance with transparent criteria, transmission or distribution tariffs or their methodologies, or both;
carrying out the obligations laid out in Article 3, Article 5(7) and Articles 14 to 17 of Regulation (EU) 2022/869 of the European Parliament and the Council ( 13 ).
ensuring the compliance of transmission system operators and distribution system operators and, where relevant, system owners, as well as the compliance of any electricity undertakings and other market participants, with their obligations under this Directive, Regulation (EU) 2019/943, the network codes and the guidelines adopted pursuant to Articles 59, 60 and 61 of Regulation (EU) 2019/943, and other relevant Union law, including as regards cross-border issues, as well as with ACER's decisions;
in close coordination with the other regulatory authorities, ensuring the compliance of the single allocation platform established in accordance with Commission Regulation (EU) 2016/1719 ( 14 ), the ENTSO for Electricity and the EU DSO entity with their obligations under this Directive, Regulation (EU) 2019/943, the network codes and guidelines adopted pursuant to Articles 59, 60 and 61 of Regulation (EU) 2019/943, and other relevant Union law, including as regards cross-border issues, as well as with ACER’s decisions, and jointly identifying non-compliance of the single allocation platform, the ENTSO for Electricity and the EU DSO entity with their respective obligations; where the regulatory authorities have not been able to reach an agreement within a period of four months after the start of consultations for the purpose of jointly identifying non-compliance, the matter shall be referred to the ACER for a decision, pursuant to Article 6(10) of Regulation (EU) 2019/942;
approving products and procurement process for non-frequency ancillary services;
implementing the network codes and guidelines adopted pursuant to Articles 59, 60 and 61 of Regulation (EU) 2019/943 through national measures or, where so required, coordinated regional or Union-wide measures;
cooperating in regard to cross-border issues with the regulatory authority or authorities of the Member States concerned and with ACER, in particular through participation in the work of ACER's Board of Regulators pursuant to Article 21 of Regulation (EU) 2019/942;
complying with, and implementing, any relevant legally binding decisions of the Commission and of ACER;
ensuring that transmission system operators make available interconnector capacities to the utmost extent pursuant to Article 16 of Regulation (EU) 2019/943;
reporting annually on its activity and the fulfilment of its duties to the relevant authorities of the Member States, the Commission and ACER, including on the steps taken and the results obtained as regards each of the tasks listed in this Article;
ensuring that there is no cross-subsidisation between transmission, distribution and supply activities or other electricity or non-electricity activities;
monitoring investment plans of the transmission system operators and providing in its annual report an assessment of the investment plans of the transmission system operators as regards their consistency with the Union-wide network development plan; such assessment may include recommendations to amend those investment plans;
monitoring and assessing the performance of transmission system operators and distribution system operators in relation to the development of a smart grid that promotes energy efficiency and the integration of energy from renewable sources, based on a limited set of indicators, and publish a national report every two years, including recommendations;
setting or approving standards and requirements for quality of service and quality of supply or contributing thereto together with other competent authorities and monitoring compliance with and reviewing the past performance of network security and reliability rules;
monitoring the level of transparency, including of wholesale prices, and ensuring compliance of electricity undertakings with transparency obligations;
monitoring the level and effectiveness of market opening and competition at wholesale and retail levels, including on electricity exchanges, prices for household customers including prepayment systems, the impact of dynamic electricity price contracts and of the use of smart metering systems, switching rates, disconnection rates, charges for maintenance services, the execution of maintenance services, the relationship between household and wholesale prices, the evolution of grid tariffs and levies, and complaints by household customers, as well as any distortion or restriction of competition, including by providing any relevant information, and bringing any relevant cases to the relevant competition authorities;
monitoring the occurrence of restrictive contractual practices, including exclusivity clauses which may prevent customers from contracting simultaneously with more than one supplier or restrict their choice to do so, and, where appropriate, informing the national competition authorities of such practices;
monitoring the time taken by transmission system operators and distribution system operators to make connections and repairs;
helping to ensure, together with other relevant authorities, that the consumer protection measures are effective and enforced;
publishing recommendations, at least annually, in relation to compliance of supply prices with Article 5, and providing those recommendations to the competition authorities, where appropriate;
ensuring non-discriminatory access to customer consumption data, the provision, for optional use, of an easily understandable harmonised format at national level for consumption data, and prompt access for all customers to such data pursuant to Articles 23 and 24;
monitoring the implementation of rules relating to the roles and responsibilities of transmission system operators, distribution system operators, suppliers, customers and other market participants pursuant to Regulation (EU) 2019/943;
monitoring investment in generation and storage capacities in relation to security of supply;
monitoring technical cooperation between Union and third-country transmission system operators;
contributing to the compatibility of data exchange processes for the most important market processes at regional level;
monitoring the availability of comparison tools that meet the requirements set out in Article 14;
monitoring the removal of unjustified obstacles to and restrictions on the development of consumption of self-generated electricity, energy sharing, renewable energy communities and citizen energy communities, including obstacles and restrictions preventing the connection of flexible distributed energy generation within a reasonable time in accordance with Article 58, point (d).
While preserving their independence, without prejudice to their own specific competence and consistent with the principles of better regulation, the regulatory authority shall, as appropriate, consult transmission system operators and, as appropriate, closely cooperate with other relevant national authorities when carrying out the duties set out in paragraph 1.
Any approvals given by a regulatory authority or ACER under this Directive are without prejudice to any duly justified future use of its powers by the regulatory authority under this Article or to any penalties imposed by other relevant authorities or the Commission.
Member States shall ensure that regulatory authorities are granted the powers enabling them to carry out the duties referred to in this Article in an efficient and expeditious manner. For this purpose, the regulatory authority shall have at least the following powers:
to issue binding decisions on electricity undertakings;
to carry out investigations into the functioning of the electricity markets, and to decide upon and impose any necessary and proportionate measures to promote effective competition and ensure the proper functioning of the market. Where appropriate, the regulatory authority shall also have the power to cooperate with the national competition authority and the financial market regulators or the Commission in conducting an investigation relating to competition law;
to require any information from electricity undertakings relevant for the fulfilment of its tasks, including the justification for any refusal to grant third-party access, and any information on measures necessary to reinforce the network;
to impose effective, proportionate and dissuasive penalties on electricity undertakings not complying with their obligations under this Directive, Regulation (EU) 2019/943 or any relevant legally binding decisions of the regulatory authority or of ACER, or to propose that a competent court impose such penalties, including the power to impose or propose the imposition of penalties of up to 10 % of the annual turnover of the transmission system operator on the transmission system operator or of up to 10 % of the annual turnover of the vertically integrated undertaking on the vertically integrated undertaking, as the case may be, for non-compliance with their respective obligations pursuant to this Directive; and
appropriate rights of investigation and relevant powers of instruction for dispute settlement under Article 60(2) and (3).
In addition to the duties conferred upon it under paragraphs 1 and 3 of this Article, when an independent system operator has been designated under Article 44, the regulatory authority shall:
monitor the transmission system owner's and the independent system operator's compliance with their obligations under this Article, and issue penalties for non-compliance in accordance with point (d) of paragraph 3;
monitor the relations and communications between the independent system operator and the transmission system owner so as to ensure compliance of the independent system operator with its obligations, and in particular approve contracts and act as a dispute settlement authority between the independent system operator and the transmission system owner with respect to any complaint submitted by either party pursuant to Article 60(2);
without prejudice to the procedure under point (c) of Article 44(2), for the first ten-year network development plan, approve the investments planning and the multi-annual network development plan submitted at least every two years by the independent system operator;
ensure that network access tariffs collected by the independent system operator include remuneration for the network owner or network owners, which provides for adequate remuneration of the network assets and of any new investments made therein, provided they are economically and efficiently incurred;
have the powers to carry out inspections, including unannounced inspections, at the premises of transmission system owner and independent system operator; and
monitor the use of congestion charges collected by the independent system operator in accordance with Article 19(2) of Regulation (EU) 2019/943.
In addition to the duties and powers conferred on it under paragraphs 1 and 3 of this Article, when a transmission system operator has been designated in accordance with Section 3 of Chapter VI, the regulatory authority shall be granted at least the following duties and powers:
to impose penalties in accordance with point (d) of paragraph 3 for discriminatory behaviour in favour of the vertically integrated undertaking;
to monitor communications between the transmission system operator and the vertically integrated undertaking so as to ensure compliance of the transmission system operator with its obligations;
to act as dispute settlement authority between the vertically integrated undertaking and the transmission system operator with respect to any complaint submitted pursuant to Article 60(2);
to monitor commercial and financial relations including loans between the vertically integrated undertaking and the transmission system operator;
to approve all commercial and financial agreements between the vertically integrated undertaking and the transmission system operator on the condition that they comply with market conditions;
to request a justification from the vertically integrated undertaking when notified by the compliance officer in accordance with Article 50(4), such justification including, in particular, evidence demonstrating that no discriminatory behaviour to the advantage of the vertically integrated undertaking has occurred;
to carry out inspections, including unannounced ones, on the premises of the vertically integrated undertaking and the transmission system operator; and
to assign all or specific tasks of the transmission system operator to an independent system operator appointed in accordance with Article 44 in the case of a persistent breach by the transmission system operator of its obligations under this Directive, in particular in the case of repeated discriminatory behaviour to the benefit of the vertically integrated undertaking.
The regulatory authorities, except where ACER is competent to fix and approve the terms and conditions or methodologies for the implementation of network codes and guidelines under Chapter VII of Regulation (EU) 2019/943 pursuant to Article 5(2) of Regulation (EU) 2019/942 because of their coordinated nature, shall be responsible for fixing or approving sufficiently in advance of their entry into force at least the national methodologies used to calculate or establish the terms and conditions for:
connection and access to national networks, including transmission and distribution tariffs or their methodologies, those tariffs or methodologies shall allow the necessary investments in the networks to be carried out in a manner allowing those investments to ensure the viability of the networks;
the provision of ancillary services which shall be performed in the most economic manner possible and provide appropriate incentives for network users to balance their input and off-takes, such ancillary services shall be provided in a fair and non-discriminatory manner and be based on objective criteria; and
access to cross-border infrastructures, including the procedures for the allocation of capacity and congestion management.
Article 60
Decisions and complaints
Article 61
Regional cooperation between regulatory authorities on cross-border issues
Regulatory authorities shall cooperate at least at a regional level to:
foster the creation of operational arrangements in order to enable an optimal management of the network, promote joint electricity exchanges and the allocation of cross-border capacity, and to enable an adequate level of interconnection capacity, including through new interconnection, within the region and between regions to allow for development of effective competition and improvement of security of supply, without discriminating between suppliers in different Member States;
coordinate the joint oversight of entities performing functions at regional level;
coordinate, in cooperation with other involved authorities, the joint oversight of national, regional and European resource adequacy assessments;
coordinate the development of all network codes and guidelines for the relevant transmission system operators and other market actors; and
coordinate the development of the rules governing the management of congestion.
Article 62
Duties and powers of regulatory authorities with respect to regional coordination centres
The regional regulatory authorities of the system operation region in which a regional coordination centre is established shall, in close coordination with each other:
approve the proposal for the establishment of regional coordination centres in accordance with Article 35(1) of Regulation (EU) 2019/943;
approve the costs related to the activities of the regional coordination centres, which are to be borne by the transmission system operators and to be taken into account in the calculation of tariffs, provided that they are reasonable and appropriate;
approve the cooperative decision-making process;
ensure that the regional coordination centres are equipped with all the necessary human, technical, physical and financial resources for fulfilling their obligations under this Directive and carrying out their tasks independently and impartially;
propose jointly with other regulatory authorities of a system operation region possible additional tasks and additional powers to be assigned to the regional coordination centres by the Member States of the system operation region;
ensure compliance with the obligations under this Directive and other relevant Union law, in particular as regards cross-border issues, and jointly identify non-compliance of the regional coordination centres with their respective obligations; where the regulatory authorities have not been able to reach an agreement within a period of four months after the start of consultations for the purpose of jointly identifying non-compliance, the matter shall be referred to ACER for a decision, pursuant to Article 6(10) of Regulation (EU) 2019/942;
monitor the performance of system coordination and report annually to ACER in this respect in accordance with Article 46 of Regulation (EU) 2019/943.
Member States shall ensure that regulatory authorities are granted the powers enabling them to carry out the duties referred to in paragraph 1 in an efficient and expeditious manner. For this purpose, the regulatory authorities shall have at least the following powers:
to request information from the regional coordination centres;
to carry out inspections, including unannounced inspections, at the premises of the regional coordination centres;
to issue joint binding decisions on the regional coordination centres.
Article 63
Compliance with the network codes and guidelines
Where the Commission takes a decision to examine the case further, it shall, within four months of the date of such decision, issue a final decision:
not to raise objections against the decision of the regulatory authority; or
to require the regulatory authority concerned to withdraw its decision on the basis that network codes and guidelines have not been complied with.
Article 64
Record keeping
CHAPTER VIII
FINAL PROVISIONS
Article 65
Level playing field
Article 66
Derogations
Small isolated systems and France, for the purpose of Corsica, may also apply for a derogation from Articles 4, 5 and 6.
The Commission shall inform the Member States of such applications before taking a decision, taking into account respect for confidentiality.
For outermost regions within the meaning of Article 349 TFEU, that cannot be interconnected with the Union electricity markets, the derogation shall not be limited in time and shall be subject to conditions aimed to ensure that the derogation does not hamper the transition towards renewable energy.
Decisions to grant derogations shall be published in the Official Journal of the European Union.
For the purposes of point (b) of Article 43(1), the notion ‘undertaking performing any of the functions of generation or supply’ shall not include final customers who perform any of the functions of generation and/or supply of electricity, either directly or via undertakings over which they exercise control, either individually or jointly, provided that the final customers including their shares of the electricity produced in controlled undertakings are, on an annual average, net consumers of electricity and provided that the economic value of the electricity they sell to third parties is insignificant in proportion to their other business operations.
By way of derogation from Article 54(2), Estonia, Latvia and Lithuania may allow their transmission system operators and transmission system operators related undertakings to own, develop, manage and operate energy storage facilities without following an open, transparent and non-discriminatory tendering procedure and may allow such energy storage facilities to buy or sell electricity in the balancing markets.
The derogations referred to in the first and second subparagraphs shall apply for up to three years after Estonia, Latvia and Lithuania have joined the Continental Europe Synchronous Area. Where necessary to preserve security of supply, the Commission may grant an extension of the initial three-year period by a maximum of five years.
The derogation referred to in the first subparagraph shall apply until the transmission system in Cyprus is connected to other Member States’ transmission systems via interconnection.
Article 66a
Access to affordable energy during an electricity price crisis
the existence of very high average prices in wholesale electricity markets of at least two and a half times the average price during the previous five years, and at least 180 EUR/MWh which is expected to continue for at least six months, the calculation of the average price during the previous five years not taking into account those periods where a regional or Union-wide electricity price crisis was declared;
sharp increases in electricity retail prices in the range of 70 % occur which are expected to continue for at least three months.
be limited to at most 70 % of the beneficiary’s consumption during the same period of the previous year and retain an incentive for demand reduction;
comply with the conditions set out in Article 5(4) and (7);
where relevant, comply with the conditions set out in paragraph 7 of this Article;
be designed to minimise any negative fragmentation of the internal market.
the price set for household customers only applies, at most, to 80 % of median household consumption and retains an incentive for demand reduction;
there is no discrimination between suppliers;
suppliers are compensated for supplying below cost in a transparent and non-discriminatory manner;
all suppliers are eligible to provide offers for the price for the supply of electricity which is below cost on the same basis;
measures proposed do not distort the internal electricity market.
The Commission shall continuously assess and monitor the impact resulting from any measures adopted under this Article and publish on a regular basis the results of such assessments.
Article 67
Exercise of the delegation
Article 68
Committee procedure
Article 69
Commission monitoring, reviewing and reporting
The Commission’s review shall, in particular, assess the service quality offered to final customers and whether customers, especially vulnerable customers and customers affected by energy poverty, are adequately protected under this Directive.
Article 70
Amendments to Directive 2012/27/EU
Directive 2012/27/EU is amended as follows:
Article 9 is amended as follows:
the title is replaced by the following:
‘Metering for natural gas’;
in paragraph 1, the first subparagraph is replaced by the following:
paragraph 2 is amended as follows:
the introductory part is replaced by the following:
points (c) and (d) are deleted;
Article 10 is amended as follows:
the title is replaced by the following:
‘Billing information for natural gas’;
in paragraph 1, the first subparagraph is replaced by the following:
in paragraph 2, the first subparagraph is replaced by the following:
in Article 11, the title is replaced by the following:
‘Cost of access to metering and billing information for natural gas’;
in Article 13, the words ‘Articles 7 to 11’ are replaced by the words ‘Articles 7 to 11a’;
Article 15 is amended as follows:
paragraph 5 is amended as follows:
the first and second subparagraphs are deleted;
the third subparagraph is replaced by the following:
‘Transmission system operators and distribution system operators shall comply with the requirements set out in Annex XII.’;
paragraph 8 is deleted;
in Annex VII, the title is replaced by the following:
‘Minimum requirements for billing and billing information based on actual consumption of natural gas’.
Article 71
Transposition
However, Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with:
point (5)(a) of Article 70 by 31 December 2019;
point (4) of Article 70 by 25 October 2020.
When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. They shall also include a statement that references in existing laws, regulations and administrative provisions to the Directive repealed by this Directive shall be construed as references to this Directive. Member States shall determine how such reference is to be made and how that statement is to be formulated.
Article 72
Repeal
Directive 2009/72/EC is repealed with effect from 1 January 2021, without prejudice to the obligations of Member States relating to the time-limit for the transposition into national law and the date of application of the Directive set out in Annex III.
References to the repealed Directive shall be construed as references to this Directive and shall be read in accordance with the correlation table set out in Annex IV.
Article 73
Entry into force
This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Article 6(1), Article 7 (2) to (5), Article 8(1), points (a) to (i) and (k) of Article 8(2) and Article 8(3) and (4), Article 9(1), (3), (4) and (5), Article 10(2) to (10), Articles 25, 27, 30, 35 and 37, Article 38(1), (3) and (4), Articles 39, 41, 43, 44 and 45, Article 46(1), points (a), (b) and (c) and (e) to (h) of Article 46(2), Article 46(3) to (6), Article 47 to 50, Articles 52, 53, 55, 56, 60, 64 and 65 shall apply from 1 January 2021.
Points (1) to (3), (5)(b) and (6) of Article 70 shall apply from 1 January 2021.
Point (5)(a) of Article 70 shall apply from 1 January 2020.
Point (4) of Article 70 shall apply from 26 October 2020.
Article 74
Addressees
This Directive is addressed to the Member States.
ANNEX I
MINIMUM REQUIREMENTS FOR BILLING AND BILLING INFORMATION
1. Minimum information to be contained on the bill and in the billing information
1.1. The following key information shall be prominently displayed to final customers in their bills, distinctly separate from other parts of the bill:
the price to be paid and a breakdown of the price where possible, together with a clear statement that all energy sources may also benefit from incentives that were not financed through the levies indicated in the breakdown of the price;
the date on which payment is due.
1.2. The following key information shall be prominently displayed to final customers in their bills and billing information, distinctly separate from other parts of the bill and billing information:
electricity consumption for the billing period;
the name and contact details of the supplier, including a consumer support hotline and email address;
the tariff name;
the end date of the contract, if applicable;
the information on the availability and benefits of switching;
the final customer's switching code or unique identification code for the final customer's supply point;
information on final customers' rights as regards out-of-court dispute settlement, including the contact details of the entity responsible pursuant to Article 26;
the single point of contact referred to in Article 25;
a link or reference to where comparison tools referred to in Article 14 can be found.
1.3. Where bills are based on actual consumption or remote reading by the operator, the following information shall be made available to final customers in, with or signposted to within their bills and periodic settlement bills:
comparisons of the final customer's current electricity consumption with the final customer's consumption for the same period in the previous year in graphic form;
contact information for consumer organisations, energy agencies or similar bodies, including website addresses, from which information may be obtained on available energy efficiency improvement measures for energy-using equipment;
comparisons with an average normalised or benchmarked final customer in the same user category.
|
2. |
Frequency of billing and the provision of billing information:
(a)
billing on the basis of actual consumption shall take place at least once a year;
(b)
where the final customer does not have a meter that allows remote reading by the operator, or where the final customer has actively chosen to disable remote reading in accordance with national law, accurate billing information based on actual consumption shall be made available to the final customer at least every six months, or once every three months, if requested or where the final customer has opted to receive electronic billing;
(c)
where the final customer does not have a meter that allows remote reading by the operator, or where the final customer has actively chosen to disable remote reading in accordance with national law, the obligations in points (a) and (b) may be fulfilled by means of a system of regular self-reading by the final customer, whereby the final customer communicates readings from the meter to the operator; billing or billing information may be based on estimated consumption or a flat rate only where the final customer has not provided a meter reading for a given billing interval;
(d)
where the final customer has a meter that allows remote reading by the operator, accurate billing information based on actual consumption shall be provided at least every month; such information may also be made available via the internet, and shall be updated as frequently as allowed by the measurement devices and systems used. |
|
3. |
Breakdown of the final customer's price The customer's price is the sum of the following three components: the energy and supply component, the network component (transmission and distribution) and the component comprising taxes, levies, fees and charges. Where a breakdown of the final customer's price is presented in bills, the common definitions of the three components in that breakdown established under Regulation (EU) 2016/1952 of the European Parliament and of the Council ( 15 ) shall be used throughout the Union. |
|
4. |
Access to complementary information on historical consumption Member States shall require that, to the extent that complementary information on historical consumption is available, such information is made available, at the request of the final customer, to the supplier or service provider designated by the final customer. Where the final customer has a meter that allows remote reading by the operator installed, the final customer shall have easy access to complementary information on historical consumption allowing detailed self-checks. Complementary information on historical consumption shall include:
(a)
cumulative data for at least the three previous years or the period since the start of the electricity supply contract, if that period is shorter. The data shall correspond to the intervals for which frequent billing information has been produced; and
(b)
detailed data according to the time of use for any day, week, month and year, which is made available to the final customer without undue delay via the internet or the meter interface, covering the period of at least the previous 24 months or the period since the start of the electricity supply contract, if that period is shorter. |
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5. |
Disclosure of energy sources Suppliers shall specify in bills the contribution of each energy source to the electricity purchased by the final customer in accordance with the electricity supply contract (product level disclosure). The following information shall be made available to final customers in, with, or signposted to within their bills and billing information:
(a)
the contribution of each energy source to the overall energy mix of the supplier (at national level, namely in the Member State in which the electricity supply contract has been concluded, as well as at the level of the supplier if the supplier is active in several Member States) over the preceding year in a comprehensible and clearly comparable manner;
(b)
information on the environmental impact, in at least terms of CO2 emissions and the radioactive waste resulting from the electricity produced by the overall energy mix of the supplier over the preceding year. As regards point (a) of the second subparagraph, with respect to electricity obtained via an electricity exchange or imported from an undertaking situated outside the Union, aggregate figures provided by the exchange or the undertaking in question over the preceding year may be used. For the disclosure of electricity from high efficiency cogeneration, guarantees of origin issued under Article 14(10) of Directive 2012/27/EU may be used. The disclosure of electricity from renewable sources shall be done by using guarantees of origin, except in the cases referred to in points (a) and (b) of Article 19(8) of Directive (EU) 2018/2001. The regulatory authority or another competent national authority shall take the necessary steps to ensure that the information provided by suppliers to final customers pursuant to this point is reliable and is provided at a national level in a clearly comparable manner. |
ANNEX II
SMART METERING SYSTEMS
1. Member States shall ensure the deployment of smart metering systems in their territories that may be subject to an economic assessment of all of the long-term costs and benefits to the market and the individual consumer or which form of smart metering is economically reasonable and cost-effective and which time frame is feasible for their distribution.
2. Such assessment shall take into consideration the methodology for the cost-benefit analysis and the minimum functionalities for smart metering systems provided for in Commission Recommendation 2012/148/EU ( 16 ) as well as the best available techniques for ensuring the highest level of cybersecurity and data protection.
3. Subject to that assessment, Member States or, where a Member State has so provided, the designated competent authority, shall prepare a timetable with a target of up to ten years for the deployment of smart metering systems. Where the deployment of smart metering systems is assessed positively, at least 80 % of final customers shall be equipped with smart meters either within seven years of the date of the positive assessment or by 2024 for those Member States that have initiated the systematic deployment of smart metering systems before 4 July 2019.
ANNEX III
TIME-LIMIT FOR TRANSPOSITION INTO NATIONAL LAW AND DATE OF APPLICATION
(REFERRED TO IN ARTICLE 72)
|
Directive |
Time-limit for transposition |
Date of application |
|
Directive 2009/72/EC of the European Parliament and of the Council (OJ L 211, 14.8.2009, p. 55) |
3 March 2011 |
3 September 2009 |
ANNEX IV
CORRELATION TABLE
|
Directive 2009/72/EC |
This Directive |
|
Article 1 |
Article 1 |
|
Article 2 |
Article 2 |
|
— |
Article 3 |
|
Articles 33 and 41 |
Article 4 |
|
— |
Article 5 |
|
Article 32 |
Article 6 |
|
Article 34 |
Article 7 |
|
Article 7 |
Article 8 |
|
Article 8 |
— |
|
Article 3(1) |
Article 9(1) |
|
Article 3(2) |
Article 9(2) |
|
Article 3(6) |
Article 9(3) |
|
Article 3(15) |
Article 9(4) |
|
Article 3(14) |
Article 9(5) |
|
Article 3(16) |
— |
|
Article 3(4) |
Article 10(1) |
|
Annex I. 1(a) |
Article 10(2) and (3) |
|
Annex I. 1(b) |
Article 10(4) |
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Annex I. 1(c) |
Article 10(5) |
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Annex I. 1(d) |
Article 10(6) and (8) |
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— |
Article 10(7) |
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Annex I. 1(f) |
Article 10(9) |
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Annex I. 1(g) |
Article 10(10) |
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Article 3(7) |
Article 10(11) |
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Annex I. 1(j) |
Article 10(12) |
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Article 3(10) |
— |
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Article 4 |
— |
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Article 5 |
— |
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Article 6 |
— |
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— |
Article 11 |
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Article 3(5)(a) and Annex I. 1(e) |
Article 12 |
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— |
Article 13 |
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— |
Article 14 |
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— |
Article 15 |
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— |
Article 16 |
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— |
Article 17 |
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— |
Article 18 |
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Article 3(11) |
Article 19(1) |
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— |
Article 19(2) to (6) |
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— |
Article 20 |
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— |
Article 21 |
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— |
Article 22 |
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— |
Article 23 |
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— |
Article 24 |
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Article 3(12) |
Article 25 |
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Article 3(13) |
Article 26 |
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Article 3(3) |
Article 27 |
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Article 3(7) |
Article 28(1) |
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Article 3(8) |
Article 28(2) |
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— |
Article 29 |
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Article 24 |
Article 30 |
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Article 25 |
Article 31 |
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— |
Article 32 |
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— |
Article 33 |
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— |
Article 34 |
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Article 26 |
Article 35 |
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— |
Article 36 |
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Article 27 |
Article 37 |
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Article 28 |
Article 38 |
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Article 29 |
Article 39 |
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Article 12 |
Article 40(1) |
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— |
Article 40(2) to (8) |
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Article 16 |
Article 41 |
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Article 23 |
Article 42 |
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Article 9 |
Article 43 |
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Article 13 |
Article 44 |
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Article 14 |
Article 45 |
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Article 17 |
Article 46 |
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Article 18 |
Article 47 |
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Article 19 |
Article 48 |
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Article 20 |
Article 49 |
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Article 21 |
Article 50 |
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Article 22 |
Article 51 |
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Article 10 |
Article 52 |
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Article 11 |
Article 53 |
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— |
Article 54 |
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Article 30 |
Article 55 |
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Article 31 |
Article 56 |
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Article 35 |
Article 57 |
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Article 36 |
Article 58 |
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Article 37(1) |
Article 59(1) |
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Article 37(2) |
Article 59(2) |
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Article 37(4) |
Article 59(3) |
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— |
Article 59(4) |
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Article 37(3) |
Article 59(5) |
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Article 37(5) |
Article 59(6) |
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Article 37(6) |
Article 59(7) |
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Article 37(8) |
— |
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Article 37(7) |
Article 59(8) |
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— |
Article 59(9) |
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Article 37(9) |
Article 59(10) |
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Article 37(10) |
Article 60(1) |
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Article 37(11) |
Article 60(2) |
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Article 37(12) |
Article 60(3) |
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Article 37(13) |
Article 60(4) |
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Article 37(14) |
Article 60(5) |
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Article 37(15) |
Article 60(6) |
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Article 37(16) |
Article 60(7) |
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Article 37(17) |
Article 60(8) |
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Article 38 |
Article 61 |
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— |
Article 62 |
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Article 39 |
Article 63 |
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Article 40 |
Article 64 |
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Article 42 |
— |
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Article 43 |
Article 65 |
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Article 44 |
Article 66 |
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Article 45 |
— |
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— |
Article 67 |
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Article 46 |
Article 68 |
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Article 47 |
Article 69 |
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— |
Article 70 |
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Article 49 |
Article 71 |
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Article 48 |
Article 72 |
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Article 50 |
Article 73 |
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Article 51 |
Article 74 |
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— |
Annex I, points 1 to 4 |
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Article 3(9) |
Annex I. 5 |
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Annex I. 2 |
Annex II |
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— |
Annex III |
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— |
Annex IV |
( 1 ) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
( 2 ) Commission Implementing Regulation (EU) No 1348/2014 of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 of the European Parliament and the Council on wholesale energy market integrity and transparency (OJ L 363, 18.12.2014, p. 121).
( 3 ) Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency and amending Regulation (EU) 2023/955 (OJ L 231, 20.9.2023, p. 1).
( 4 ) Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
( 5 ) Directive (EU) 2018/2001 of the European Parliament and the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).
( 6 ) Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council (OJ L 304, 22.11.2011, p. 64).
( 7 ) Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
( 8 ) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35).
( 9 ) Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (Directive on consumer ADR) (OJ L 165, 18.6.2013, p. 63).
( 10 ) Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (OJ L 220, 25.8.2017, p. 1).
( 11 ) Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1).
( 12 ) Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169, 30.6.2017, p. 46).
( 13 ) Regulation (EU) 2022/869 of the European Parliament and the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 (OJ L 152, 3.6.2022, p. 45).
( 14 ) Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (OJ L 259, 27.9.2016, p. 42).
( 15 ) Regulation (EU) 2016/1952 of the European Parliament and of the Council of 26 October 2016 on European statistics on natural gas and electricity prices and repealing Directive 2008/92/EC (OJ L 311, 17.11.2016, p. 1).
( 16 ) Commission Recommendation 2012/148/EU of 9 March 2012 on preparations for the roll-out of smart metering systems (OJ L 73, 13.3.2012, p. 9).