Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast) - Main contents

Document date	30-11-2018
Publication date	01-12-2018
Reference	7506/7/18 REV 7
From	General Secretariat of the Council
External link	original article
Original document in PDF

Council of the European Union

Brussels, 30 November 2018 (OR. en)

7506/7/18

Interinstitutional File: REV 7

2016/0380(COD) i

ENER 110 ENV 200 CLIMA 55 COMPET 184 CONSOM 78 FISC 157 CODEC 444

NOTE

From: General Secretariat of the Council

To: Permanent Representatives Committee

No. Cion doc.: 15150/1/16 REV 1 + ADD 1 REV 1

Subject: Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast)

• I. 

  INTRODUCTION

• 1. 

  On 30 November 2016, the Commission submitted a set of proposals as “Clean Energy for

  All Europeans” package, in order to provide for a stable legislative framework, necessary for

  the energy transition. Two legislative files, based on article 194 para 2 of the Treaty, address

  the common rules for the internal market in electricity.

• 2. 

  In the European Parliament, these proposals were referred to the Industry, Research and

  Energy Committee (ITRE) which appointed on 25 January 2017 Mr. Krišjānis Kariņš as

  rapporteur.

II. STATE OF PLAY

• 3. 

  The TTE (Energy) Council adopted, on 18 December 2017, a general approach on the abovementioned

  proposal. The European Parliament adopted its position on the proposal on 1

  March 2018 and the first trilogue, based on the Council general approach, took place on 27

  June 2018. The second trilogue took place on 11 September 2018, the third on 18 October

  2018 and the fourth on 13 November. The trilogues and technical meetings in between

  allowed the co-legislators to advance significantly and propose compromise suggestions.

  Moreover, a broad mandate was also given to the technical meetings to make progress on the

  entire Directive.

• 4. 

  During the first trilogue both institutions explained their views on the main political issues

  and recognised the need to swiftly advance on this file. At the second and third trilogues,

  provisional agreements were reached on Articles 10, 11, 13, 14, 17, 18 and 24, including

  Annexes I and II. Furthermore, several provisions of Articles 3, 7 and 12 were provisionally

  agreed. At the fourth trilogue, Articles 16 and 19-22, including Annex III, were provisionally

  agreed. The negotiations will now be pursued on such issues as price regulation, energy

  poverty, transmission and distribution system operators, national regulatory authorities and

  final provisions.

III. REVISED MANDATE

• 5. 

  In view of the fifth and, as scheduled, final trilogue on 5 December 2018, the basis for the

  discussion will be the four-column table contained in the Annex to this Note that sets out, in

  the fourth column, the Presidency's compromise proposals on the articles which were agreed

  by both institutions to be discussed.

• 6. 

  In this version of the four-column document the Presidency has included new compromise

  proposals on a number of main political issues such as Article 5 (Marked based supply

  prices), Article 12 (Right to switch supplier), Articles 28 and 29 (Vulnerable customers,

  Energy poverty) and Articles 36 and 54 (Ownership of storage facilities by DSOs and TSOs).

  Furthermore, Presidency has included some compromise proposals in Articles 59 (Duties and

  powers of NRAs) and 62 (Duties and powers of RCCs) in order to adapt the text and provide

  for proper oversight of the ENTSO-E, EU DSO and RCCs, as discussed in the context of the

  negotiations on the ACER Regulation.

• 7. 

  All new Presidency compromise proposals are marked with underlined in the document. The

  Presidency believes that the compromise text, as set out in the four column of the Annex,

  constitutes a well balanced mandate for conducting the negotiations with the Parliament at the

  next trilogue on 5 December with the view to reaching a political agreement. The Presidency

  is very much hoping for delegations' flexibility in this regard.

• 8. 

  Furthermore, 'Provisionally agreed' in the fourth column indicates that the text was

  provisionally agreed at the previous trilogues. 'Provisionally agreed in TM' indicates that the

  text was provisionally agreed at technical level after the fourth trilogue while awaiting to be

  provisionally confirmed at the fifth trilogue.

• 9. 

  Regarding other European Parliament's amendments, the Presidency proposes to maintain the

  Council's general approach at this stage of negotiations.

• 10. 

  In the fourth column, bold italics indicates text proposed by the EP; bold indicates texts of the

  Council general approach added to the Commission proposal and/or compromise texts

  proposed by the Presidency in response to the EP amendments; bold (bold) underlined

  indicates new text elements, diverging from document (7506/5/18 REV 5) and strikethrough

  indicates deletion. No change indicates that the Commission proposal is maintained

  unchanged.

IV. CONCLUSION

  11. The Permanent Representatives Committee is invited to agree on a revised mandate for the

fifth trilogue on 5 December 2018, on the basis of the text reflected in the Annex.

______________________ ANNEX

Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast)

• 1. 

  COMISSION PROPOSAL EP PLENARY TEXT COUNCIL GENERAL Compromise proposals

  APPROACH

  (COD - doc. 15150/1/16 REV 1) (doc. 15886/17 + ADD 1 )

• 2. 

  THE EUROPEAN PARLIAMENT THE EUROPEAN PARLIAMENT N.B. any compromise proposals AND THE COUNCIL OF THE AND THE COUNCIL OF THE for the recitals are provisional,

  EUROPEAN UNION, EUROPEAN UNION, and without prejudice to any

  Having regard to the Treaty on the Having regard to the Treaty on the alignment with the content of

  Functioning of the European Union, Functioning of the European Union, the Articles that may prove and in particular Article 194(2) and in particular Article 194(2) necessary. thereof, thereof,

  Having regard to the proposal from the Having regard to the proposal from European Commission, the European Commission,

  After transmission of the draft After transmission of the draft legislative act to the national legislative act to the national parliaments, parliaments,

  Having regard to the opinion of the Having regard to the opinion of the European Economic and Social European Economic and Social Committee 1 , Committee

  3 ,

  Having regard to the opinion of the

  Having regard to the opinion of the Committee of the Regions 2 Committee of the Regions 4 , ,

1 OJ C 211, 19.8.2008, p. 23.

2 OJ C 172, 5.7.2008, p. 55.

ANNEX TREE.2.B EN

Acting in accordance with the ordinary Acting in accordance with the

legislative procedure, ordinary legislative procedure,

Whereas: Whereas:

• 3. 

  (1) A number of amendments are to (1) A number of amendments are be made to Directive 2009/72/EC i of to be made to Directive 2009/72/EC i the European Parliament and of the of the European Parliament and of

  Council 5 . In the interests of clarity, that the Council 6 . In the interests of Directive should be recast. clarity, that Directive should be recast.

• 4. 

  (2) The internal market in (2) The internal market in electricity, which has been electricity, which has been

  progressively implemented throughout progressively implemented the Union since 1999, aims, by throughout the Union since 1999, organising competitive electricity aims, by organising competitive markets across country borders, to electricity markets across country deliver real choice for all consumers of borders, to deliver real choice for all the European Union, be they citizens consumers of the European Union, be or businesses, new business they citizens or businesses, new opportunities competitive prices, business opportunities, competitive efficient investment signals, higher prices, efficient investment signals, standards of service, and to contribute higher standards of service, and to to security of supply and sustainability. contribute to security of supply and sustainability.

3 OJ C 211, 19.8.2008, p. 23.

4 OJ C 172, 5.7.2008, p. 55.

5 Directive 2009/72/EC i of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC i (OJ L 211, 14.8.2009, p. 55).

6 Directive 2009/72/EC i of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC i (OJ L 211, 14.8.2009, p. 55).

ANNEX TREE.2.B EN

• 5. 

  (3) Directive 2003/54/EC i of the (3) Directive 2003/54/EC i of the

  European Parliament and of the European Parliament and of the Council and Directive 2009/72/EC i of Council and Directive 2009/72/EC i of the European Parliament and of the the European Parliament and of the Council have made a significant Council have made a significant contribution towards the creation of contribution towards the creation of such an internal market in electricity. such an internal market in electricity. However, Europe's energy system is in However, Europe's energy system is the middle of a profound change. The in the middle of a profound change. common goal to decarbonise the The common goal to [] lower the energy system creates new emission of the energy system opportunities and challenges for creates new opportunities and market participants. At the same time, challenges for market participants. At technological developments allow for the same time, technological new forms of consumer participation developments allow for new forms of and cross-border cooperation. There is consumer participation and crossa need to adapt the Union market rules border cooperation. There is a need to a new market reality. to adapt the Union market rules to a new market reality.

• 6. 

  (4) The Energy Union Framework (4) The Energy Union Framework

  Strategy sets out the vision of an Strategy sets out the vision of an Energy Union with citizens at its core, Energy Union with citizens at its where citizens take ownership of the core, where citizens take ownership energy transition, benefit from new of the energy transition, benefit from technologies to reduce their bills, new technologies to reduce their participate actively in the market, and bills, participate actively in the where vulnerable consumers are market, and where vulnerable protected. consumers are protected.

ANNEX TREE.2.B EN

• 7. 

  (5) The Communication from the AM 1 (5) The Communication from the

  Commission of 15 July 2015 (5) The Communication from the Commission of 15 July 2015 'Delivering a new deal for energy Commission of 15 July 2015 'Delivering a new deal for energy consumers 7 ' put forward the 'Delivering a new deal for energy consumers 8 ' put forward the Commission's vision for a retail market 31 consumers ' put forward the Commission's vision for a retail that better serves energy consumers, Commission's vision for a retail market that better serves energy including by better linking wholesale market that better serves energy consumers, including by better and retail markets. Taking advantage consumers, including by better linking wholesale and retail markets. of new technology, new and linking wholesale and retail markets. Taking advantage of new technology, innovative energy service companies Taking advantage of new new and innovative energy service should enable all consumers to fully technologies, new and innovative companies should enable all participate in the energy transition, energy service companies should consumers to fully participate in the managing their consumption to deliver enable all consumers to raise their energy transition, managing their energy efficient solutions which save awareness of their energy consumption to deliver energy them money and contribute to overall consumption and to fully participate efficient solutions which save them reduction of energy consumption. in the energy transition, managing money and contribute to overall their consumption to deliver energy reduction of energy consumption. efficient solutions which save them money and contribute to overall reduction of energy consumption. ___________

  31 COM (2015) 339 final i of 15.7.2015.

7 COM (2015) 339 final i of 15.7.2015.

8 COM (2015) 339 final i of 15.7.2015.

ANNEX TREE.2.B EN

• 8. 

  (6) The Communication from the AM 2 (6) The Communication from the

  Commission of 15 July 2015 Commission of 15 July 2015

  'Launching the public consultation (6) The Communication from the 'Launching the public consultation

  process on a new energy market Commission of 15 July 2015 process on a new energy market

  design' 9 highlighted that the move 'Launching the public consultation design' 10 highlighted that the move

  away from generation in large central process on a new energy market away from generation in large central power plants towards de-centralized design'

  32 highlighted that the move power plants towards de-centralized

  production from renewable energy away from generation in large central production from renewable energy sources and decarbonized markets power plants towards de-centralized sources [] requires an adaptation of requires an adaptation of the current production from renewable energy the current rules of electricity trading rules of electricity trading and changes sources and decarbonized markets and changes to the existing market to the existing market roles. It requires an adaptation of the current roles. It underlined needs to organise underlined needs to organise electricity rules of electricity trading and electricity markets in a more flexible markets in a more flexible manner and changes to the roles of existing to fully integrate all market players – market participants. It underlined

  manner and to fully integrate all

  including renewable energy producers, needs to organize electricity markets

  market players – including renewable

  new energy service providers, energy in a more flexible manner and to

  energy producers, new energy

  storage and flexible demand. fully integrate all market players –

  service providers, energy storage and

  including renewable energy flexible demand.

  producers, new energy service providers, energy storage and flexible demand. It is equally important for the Union to invest urgently in interconnection at European level for the transfer of energy through high-voltage, electric power transmission systems.

  _________________

  32 COM (2015) 340 final i of 15.7.2015.

9 COM (2015) 340 final i of 15.7.2015.

10 COM (2015) 340 final i of 15.7.2015.

ANNEX TREE.2.B EN

• 9. 

  AM 3

  (6a) (new) With a view to creating an internal market in electricity, Member States should foster the integration of their national markets and the cooperation of system operators at Union and regional level, also incorporating isolated systems forming electricity islands that persist in the Union.

• 10. 

  (7) Apart from the new challenges, (7) Apart from the new the Directive seeks also to address the challenges, the Directive seeks also persisting obstacles to the completion to address the persisting obstacles to of the internal market in electricity. the completion of the internal market Refined regulatory framework needs to in electricity. Refined regulatory contribute to overcoming the current framework needs to contribute to problems of fragmented national overcoming the current problems of markets which are still often fragmented national markets which determined by a high degree of are still often determined by a high regulatory interventions. Such degree of regulatory interventions. interventions have led to obstacles to Such interventions have led to the sale of electricity on equal terms as obstacles to the sale of electricity on well as higher costs in comparison to equal terms as well as higher costs in solutions based on cross-border comparison to solutions based on cooperation and market-based cross-border cooperation and marketprinciples. based principles.

• 11. 

  AM 4

  (7a) (new) The Union will most effectively meet its renewable targets through the creation of a market framework that rewards flexibility and innovations. A well-functioning electricity market design is the key enabler for the uptake of renewables.

ANNEX TREE.2.B EN

• 12. 

  (8) Consumers are essential to AM 5 (8) Consumers are essential to achieving the flexibility necessary to (8) Consumers are essential to achieving the flexibility necessary to adapt the electricity system to variable, achieving the flexibility necessary to adapt the electricity system to

  distributed renewable generation. adapt the electricity system to variable, distributed renewable Technological progress in grid variable and distributed renewable generation. Technological progress in management and renewable generation generation. Technological progress in grid management and renewable has unlocked many opportunities for grid management and renewable generation has unlocked many consumers, and healthy competition on generation has unlocked many opportunities for consumers, and retail markets will be essential to opportunities for consumers. Healthy healthy competition on retail markets ensuring the market-driven competition on retail markets will be will be essential to ensuring the deployment of innovative new services essential to ensuring the marketmarket-driven deployment of that cater to the consumers' changing driven deployment of innovative new innovative new services that cater to needs and abilities, while increasing services that address consumers' the consumers' changing needs and system flexibility. By empowering changing needs and abilities, while abilities, while increasing system consumers to participate in the energy increasing system flexibility. flexibility. By empowering market more, and participate in new However, the lack of real time or consumers to participate in the ways, citizens should benefit from the near real time information provided energy market more, and participate internal market in electricity and the to consumers about their energy in new ways, citizens should benefit Union's renewable targets should be consumption, in particular due to from the internal market in electricity attained. the slow roll-out of smart meters, and the Union's renewable targets has prevented them from being should be attained. active participants in the energy market and the energy transition. By empowering consumers and providing them with the tools to participate in the energy market more, and participate in new ways, citizens should benefit from the internal market in electricity and the Union's renewable targets should be attained.

ANNEX TREE.2.B EN

• 13. 

  (8a) This Directive respects fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union (‘Charter’). Accordingly, this Directive should be interpreted and applied in accordance with those rights and principles, in particular the right to protection of personal data guaranteed by Article 8 of the Charter. It is essential that any processing of personal data under this Directive be in compliance with Regulation (EU) 2016/679.

• 14. 

  (9) The freedoms which the Treaty AM 6 (9) The freedoms which the guarantees the citizens of the Union — (9) The freedoms which the Treaty guarantees the citizens of the inter alia, the free movement of goods, Treaty guarantees the citizens of the Union — inter alia, the free

  the freedom of establishment and the Union — inter alia, the free movement of goods, the freedom of freedom to provide services — are movement of goods, the freedom of establishment and the freedom to achievable only in a fully open market, establishment and the freedom to provide services — are achievable which enables all consumers freely to provide services — are achievable only in a fully open market, which choose their suppliers and all suppliers only in a fully open and enables all consumers freely to freely to deliver to their customers. interconnected market, which choose their suppliers and all enables all consumers freely to suppliers freely to deliver to their choose their suppliers and all customers. suppliers freely to deliver to their customers.

ANNEX TREE.2.B EN

• 15. 

  (10) Promoting fair competition and (10) Promoting fair competition easy access for different suppliers and easy access for different

  should be of the utmost importance for suppliers should be of the utmost Member States in order to allow importance for Member States in consumers to take full advantage of the order to allow consumers to take full opportunities of a liberalised internal advantage of the opportunities of a market in electricity. liberalised internal market in electricity. Nonetheless, market failure may still persist in peripheral small electricity systems and systems not connected with other EU Member States, where electricity prices fail to provide the right signal to drive investment, and may therefore require specific solutions to ensure an adequate level of security of electricity supply.

• 16. 

  (11) In order to secure competition AM 7 (11) In order to secure competition and the supply of electricity at the (11) In order to secure competition and the supply of electricity at the

  most competitive price, Member States and the supply of electricity at the most competitive price, Member and national regulatory authorities most competitive price, Member States and national regulatory should facilitate cross-border access States and national regulatory authorities should facilitate crossfor new suppliers of electricity from authorities should facilitate crossborder access for new suppliers of different energy sources as well as for border access for new suppliers of electricity from different energy new providers of power generation electricity from different energy sources as well as for new providers storage and demand response. sources as well as for new providers of power generation, storage and of power generation, storage and demand response. demand response. However, Member States should cooperate in scheduling electricity flows and should take necessary action to prevent unscheduled loop-flows of electricity.

ANNEX TREE.2.B EN

• 17. 

  AM 8 (11a) Member States should

  (11a) (new) Member States should ensure that no undue barriers exist ensure that no undue barriers exist within the internal electricity within the internal electricity market market as regards market entry, as regards market entry, operation operation and exit. At the same and exit. At the same time, it should time, it should be clear that this be clear that this obligation is provision is without prejudice to without prejudice to those those competences, which Member competences which Member States States retain in relation to third retain in relation to third countries. countries. Such a clarification must Such a clarification must not be not be interpreted as enabling a interpreted as enabling a Member Member State to exercise an State to exercise an exclusive exclusive competence of the competence of the Union. It should Union. It should also be clarified also be clarified that market that market participants from participants from third countries third countries operating within must comply with applicable Union the internal market must comply and Member States' laws just like all with applicable Union and other market participants. Member States' laws just like all other market participants.

• 18. 

  AM 9 (11aa) Market rules allow for entry

  (11b) (new) The European Council and exit of electricity generation stated in its conclusions of October and electricity supply undertakings 2014 that the Commission supported based on their assessment of the by the Member States must take economic and financial viability of urgent measures in order to ensure their operations. This principle the achievement of a minimum would not be incompatible with the target of 10% of existing electricity possibility of Member States to interconnections, as a matter of impose on undertakings operating urgency, and no later than 2020, at in the electricity sector, in general least for Member States which have economic interest, public service not yet attained a minimum level of obligations, where this is done in integration in the internal energy conformity with the Treaties, in market, which are the Baltic States, particular Article 106 TFEU, and Portugal and Spain, and for with the provisions of this

ANNEX TREE.2.B EN

Member States which constitute Directive and [Electricity their main point of access to the Regulation]. internal energy market. It further stated that the Commission will also report regularly to the European Council with the objective of arriving at a 15% target by 2030.

• 19. 

  (11b) Sufficient physical interconnection with neighbours is important to enable all countries to benefit from the positive effects of the internal market as stressed in the Commission's 'Communication on strengthening Europe's energy networks' 11 and as also reflected in the Integrated National Energy and Climate Plans under the [Governance Regulation].

• 20. 

  (12) Securing common rules for a (12) Securing common rules for a true internal market and a broad supply true internal market and a broad

  of electricity accessible to all should supply of electricity accessible to all also be one of the main goals of this should also be one of the main goals Directive. To that end, undistorted of this Directive. To that end, market prices would provide an undistorted market prices would incentive for cross-border provide an incentive for cross-border interconnections and for investments interconnections and for investments in new power generation while in new power generation while leading, in the long term, to price leading, in the long term, to price convergence. convergence.

• 21. 

  (13) Market prices should give the (13) Market prices should give the right incentives for the development of right incentives for the development the network and for investing in new of the network and for investing in electricity generation. new electricity generation.

11 COM(2017) 718 final i

ANNEX TREE.2.B EN

• 22. 

  (14) Different types of market (14) Different types of market organisation exist in the internal organisation exist in the internal market in electricity. The measures market in electricity. The measures that Member States could take in order that Member States could take in to ensure a level playing field should order to ensure a level playing field be based on overriding requirements of should be based on overriding

  general interest. The Commission requirements of general interest. The should be consulted on the Commission should be consulted on compatibility of the measures with the the compatibility of the measures Treaty and Union law. with the Treaty and Union law.

• 23. 

  (15) Member States should maintain AM 10 (15) Member States should a wide discretion to impose public (15) Member States should maintain a wide discretion to impose service obligations on electricity maintain a wide discretion to impose public service obligations on undertakings in pursuing objectives of public service obligations on electricity undertakings in pursuing general economic interest. Member electricity undertakings in pursuing objectives of general economic States should ensure that household objectives of general economic interest. Member States should customers and, where Member States interest. Member States should ensure that household customers and, deem it appropriate, small enterprises, ensure that household customers and, where Member States deem it enjoy the right to be supplied with where Member States deem it appropriate, small enterprises, enjoy electricity of a specified quality at appropriate, small enterprises, enjoy the right to be supplied with clearly comparable, transparent and the right to be supplied with electricity of a specified quality at competitive prices. Nevertheless, electricity of a specified quality at clearly comparable, transparent and public service obligations in the form clearly comparable, transparent and competitive prices. Nevertheless, of supply price regulation constitute a competitive prices. Nevertheless, public service obligations in the form fundamentally distortive measure that public service obligations in the form of supply price regulation constitute often leads to the accumulation of of supply price regulation constitute a fundamentally distortive measure tariff deficits, limitation of consumer a fundamentally distortive measure that often leads to the accumulation choice, poorer incentives for energy that often leads to the accumulation of tariff deficits, limitation of saving and energy efficiency of tariff deficits, limitation of consumer choice, poorer incentives investments, lower standards of consumer choice, poorer incentives for energy saving and energy service, lower levels of consumer for energy saving and energy efficiency investments, lower engagement and satisfaction, efficiency investments, lower standards of service, lower levels of restriction of competition as well as standards of service, lower levels of consumer engagement and

  fewer innovative products and services consumer engagement and satisfaction, restriction of on the market. Consequently, Member satisfaction, restriction of competition as well as fewer

ANNEX TREE.2.B EN

States should apply other policy tools, competition as well as fewer innovative products and services on and in particular targeted social policy innovative products and services on the market. Consequently, Member measures, to safeguard the the market. Consequently, Member States should apply other policy affordability of electricity supply to States should apply other policy tools, and in particular targeted social their citizens. Interventions in price tools, and in particular targeted social policy measures, to safeguard the setting should only be applied in policy measures, to safeguard the affordability of electricity supply to limited exceptional circumstances. A affordability of electricity supply to their citizens. Interventions in price fully liberalised retail electricity their citizens. Interventions in price setting should only be applied [] as market would stimulate price and nonsetting should only be applied in very public service obligations and price competition among existing limited exceptional circumstances in subject to specific conditions suppliers and incentivise new market order to protect the most vulnerable specified in this Directive. A fully entries therefore improving consumers' and should be phased out within a liberalised retail electricity market choice and satisfaction. limited timeframe. A fully would stimulate price and non-price liberalised, well-functioning retail competition among existing suppliers electricity market would stimulate and incentivise new market entries price and non-price competition therefore improving consumers' among existing suppliers and choice and satisfaction. incentivise new market entries therefore improving consumers' choice and satisfaction.

• 24. 

  (15a) Public service obligations in the form of electricity supply price regulation should be used without overriding the principle of open

  markets in clearly defined circumstances and beneficiaries and be limited in duration. Such circumstances could occur for example when the supply of electricity is severely constrained, causing significantly higher electricity prices than normal, or in the event of market failure where interventions by regulatory authorities and competition

ANNEX TREE.2.B EN

authorities have proven ineffective.

This would disproportionately affect households, and in particular, vulnerable consumers who typically use a higher share of their disposable income on energy bills, compared to high income consumers. In order to mitigate the distortive effects of public service obligations in the price-setting for supply of electricity, Member States applying such interventions should put in place additional measures, including measures preventing distortions to wholesale market price setting. Member States should ensure that all beneficiaries of regulated prices are able to fully benefit from the offers of the competitive market when they choose so. To this effect they need to be equipped with smart meters and have access to dynamic electricity price contracts, they should be directly and regularly informed of the offers and savings available on the competitive market, in particular dynamic electricity price contracts, and be provided with assistance to engage with and benefit from market based offers.

ANNEX TREE.2.B EN

• 25. 

  (15b) The entitlement of beneficiaries of regulated prices to receive individual smart meters without extra costs, does not prohibit Member States modifying the functionality of smart meters where smart meter infrastructure does not exist as the cost-benefit assessment regard roll-out of smart meters was negative.

• 26. 

  (15c) Interventions in electricity supply price regulation must not lead to cross-subsidisation between different categories of consumers in a direct manner. According to this principle, price systems must not explicitly make certain

  categories of consumers bear the cost of price interventions affecting other categories of consumers. For example, price interventions whose cost is born by suppliers or other operators in a non discriminatory manner should not be considered as direct cross-subsidisation.

ANNEX TREE.2.B EN

• 27. 

  (16) In order to ensure the (16) In order to ensure the maintenance of the high standards of maintenance of the high standards of public service in the Union , all public service in the Union, all measures taken by Member States to measures taken by Member States to achieve the objective of this Directive achieve the objective of this should be regularly notified to the Directive should be regularly notified Commission. The Commission should to the Commission. The Commission regularly publish a report analysing should regularly publish a report measures taken at national level to analysing measures taken at national achieve public service objectives and level to achieve public service comparing their effectiveness, with a objectives and comparing their view to making recommendations as effectiveness, with a view to making regards measures to be taken at recommendations as regards national level to achieve high public measures to be taken at national level service standards. to achieve high public service standards.

• 28. 

  (17) It should be possible for (17) It should be possible for

  Member States to appoint a supplier of Member States to appoint a supplier last resort. That supplier may be the of last resort. That supplier may be sales division of a vertically integrated the sales division of a vertically undertaking, which also performs the integrated undertaking, which also functions of distribution, provided that performs the functions of it meets the unbundling requirements distribution, provided that it meets of this Directive. the unbundling requirements of this Directive.

• 29. 

  (18) It should be possible for (18) It should be possible for measures implemented by Member measures implemented by Member States to achieve the objectives of States to achieve the objectives of social and economic cohesion to social and economic cohesion to include, in particular, the provision of include, in particular, the provision adequate economic incentives, using, of adequate economic incentives, where appropriate, all existing national using, where appropriate, all existing and Union tools. Such tools may national and Union tools. Such tools include liability mechanisms to may include liability mechanisms to guarantee the necessary investment. guarantee the necessary investment.

ANNEX TREE.2.B EN

• 30. 

  (19) To the extent to which measures (19) To the extent to which taken by Member States to fulfil public measures taken by Member States to service obligations constitute State aid fulfil public service obligations under Article 107(1) of the Treaty, constitute State aid under

  there is an obligation under Article107(1) of the Treaty, there is Article 108(3) of the Treaty to notify an obligation under Article 108(3) of them to the Commission. the Treaty to notify them to the Commission.

• 31. 

  (19a) Cross–sectorial legislation provides a strong basis for

  consumer protection for a wide range of energy services that exist, and may develop in the future. Nevertheless, certain basic contractual rights of customers should be clearly defined.

• 32. 

  (20) Clear and comprehensible (20) Clear and comprehensible information should be made available information should be made available to consumers concerning their rights in to consumers concerning their rights relation to the energy sector. The in relation to the energy sector. The Commission has established, after Commission has established , after consulting relevant stakeholders consulting relevant stakeholders including Member States, national including Member States, national regulatory authorities, consumer regulatory authorities, consumer organisations and electricity organisations and electricity

  undertakings an energy consumer undertakings an energy consumer checklist providing consumers with checklist providing consumers with practical information about their rights. practical information about their That checklist should be maintained up rights. That checklist should be to date provided to all consumers and maintained up to date provided to all made publicly available. consumers and made publicly available.

ANNEX TREE.2.B EN

• 33. 

  (21) At present, several factors (21) At present, several factors impede consumers from accessing, impede consumers from accessing, understanding and acting upon the understanding and acting upon the various sources of market information various sources of market

  available to them. To that end, the information available to them. To comparability of offers should be that end, the comparability of offers improved and barriers to switching should be improved and barriers to minimised to the greatest practicable switching minimised to the greatest extent without unduly limiting practicable extent without unduly consumer choice. limiting consumer choice.

• 34. 

  (22) Customers are still being

  charged a broad range of fees directly (22) Smaller customers are still or indirectly as a result of switching being charged a broad range of fees energy supplier. Such fees make directly or indirectly as a result of calculating the best product or service switching energy supplier. Such fees more difficult and diminish the make calculating the best product or immediate financial advantage of service more difficult and diminish switching. Although removing such the immediate financial advantage of fees may limit consumer choice by switching. Although removing such eliminating products based on fees may limit consumer choice by rewarding consumer loyalty, eliminating products based on restricting their use further should rewarding consumer loyalty, improve consumer welfare, consumer restricting their use further should engagement and competition in the improve consumer welfare, consumer

  market. engagement and competition in the market.

ANNEX TREE.2.B EN

• 35. 

  (22a) Shorter expected switching

  times can encourage consumers to search for better energy deals and switch suppliers. The increased deployment of information technology will mean that the technical switching process of registering a new supplier in a metering point at the market operator should typically be able to be completed within 24 hours on any working day by the year 2025. Notwithstanding other steps in the switching process that must be completed before the technical process of switching is initiated, ensuring the technical process of switching can take place within 24 hours by this date will minimise switching times, helping to increase consumer engagement and retail competition. In any case, the total duration of the switching process should not exceed three weeks from the date of the customer notification.

ANNEX TREE.2.B EN

• 36. 

  (23) Independent comparison tools

  including websites are an effective (23) Independent comparison tools (23)Independent comparison tools

  means for customers to assess the including websites are an effective including websites are an effective

merits of different energy offers means for smaller customers to means for smaller customers to

available on the market. Search costs assess the merits of different energy assess the merits of different energy

are lower as they no longer need to offers available on the market. offers available on the market. collect information from individual Search costs are lower as they no Search costs are lower as they no suppliers and service providers. Such longer need to collect information longer need to collect information tools can provide the right balance from individual suppliers and service from individual suppliers and between the need for information to be providers. Such tools can provide the service providers. Such tools can clear and concise and the need for it to right balance between the need for provide the right balance between be complete and comprehensive. They information to be clear and concise the need for information to be clear should aim at including the broadest and the need for it to be complete and and concise and the need for it to be possible range of available offers, and comprehensive. They should aim at complete and comprehensive. They at covering the market as completely including the broadest possible range should aim at including the broadest as is feasible so as to give the customer of available offers, and at covering possible range of available offers, a representative overview.. It is crucial the market as completely as is and at covering the market as that the information given on such feasible so as to give the customer a completely as is feasible so as to tools be trustworthy, impartial and representative overview. It is crucial give the customer a representative

transparent. that consumers have access to at overview. It is crucial that least one comparison tool and that consumers have access to at least

the information given on such tools one comparison tool and that the be trustworthy, impartial and information given on such tools be transparent. Member States may trustworthy, impartial and provide for this through a transparent. Member States may comparison tool that is operated by provide for this through a a national authority or a verified comparison tool that is operated comparison tool that is operated by by a national authority or a a private company. private company.

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• 37. 

  (24) Greater consumer protection is AM 11 (24) Greater consumer protection is guaranteed by the availability of (24) Greater consumer protection is guaranteed by the availability of

  effective means of dispute settlement guaranteed by the availability of effective means of dispute settlement for all consumers. Member States effective means of independent for all consumers. Member States should introduce speedy and effective dispute settlement mechanisms for should introduce speedy and complaint handling procedures. all consumers, such as energy effective complaint handling ombudsman or a consumer body. procedures. Member States should introduce speedy and effective complaint handling procedures.

• 38. 

  (25) All consumers should be able to AM 12 (25) All consumers should be able benefit from directly participating in (25) All consumers should be able to benefit from directly participating the market, in particular by adjusting to benefit from directly participating in the market, in particular by

  their consumption according to market in the market, in particular by adjusting their consumption signals and in return benefit from adjusting their consumption according to market signals and in lower electricity prices or other according to market signals and in return benefit from lower electricity incentive payments. The benefits of return benefit from lower electricity prices or other incentive payments. this active participation are likely to prices or other incentive payments. The benefits of this active increase over time when electric The benefits of this active participation are likely to increase vehicles, heat pumps and other flexible participation are likely to increase over time when electric vehicles, heat loads become more competitive. over time when the awareness of pumps and other flexible loads Consumers should be enabled to otherwise passive consumers is become more competitive. participate in all forms of demand raised about their possibilities as Consumers should be enabled to response and therefore should have the active consumers and when the participate in all forms of demand possibility to opt for having a smart information on the possibilities of response and therefore should have metering system and a dynamic active participation are better the possibility to opt for having a electricity pricing contract. This should accessible and known. Consumers smart metering system and a allow them to adjust their consumption should be enabled to participate in all dynamic electricity pricing contract. according to real time price signals forms of demand response and This should allow them to adjust that reflect the value and cost of therefore should have the possibility their consumption according to real electricity or transportation in different to benefit from the full roll-out of time price signals that reflect the time periods, while Member States smart metering systems, and in value and cost of electricity or should ensure a reasonable exposure of cases where such a roll out has been transportation in different time consumers to the wholesale price risk. negatively assessed, they should be periods, while Member States should Member States should also ensure that able to opt for having a smart ensure a reasonable exposure of those consumers who choose not to metering system and a dynamic consumers to the wholesale price

ANNEX TREE.2.B EN

actively engage in the market are not electricity pricing contract. This risk. Member States should also penalised but instead their informed should allow them to adjust their ensure that those consumers who decision making on the options consumption according to real time choose not to actively engage in the available to them should be facilitated price signals that reflect the value market are not penalised but instead in the manner that is the most suitable and cost of electricity or their informed decision making on for domestic market conditions. transportation in different time the options available to them should periods, while Member States should be facilitated in the manner that is the ensure a reasonable exposure of most suitable for domestic market consumers to the wholesale price conditions. risk. Consumers should be informed about potential price risk of dynamic price contracts. Member States should also ensure that those consumers who choose not to actively engage in the market are not penalised but instead their informed decision making on the options available to them should be facilitated in the manner that is the most suitable for domestic market conditions.

• 39. 

  Provisionally agreed (AM 54, line 254):

  (25 a) In order to maximise the benefits and effectiveness of dynamic electricity pricing, Member States should assess the potential for making more dynamic or reducing the share of fixed components in electricity bills, and where such potential exists, take appropriate action.

ANNEX TREE.2.B EN

• 40. 

  (26) All customer groups (industrial, (26) All customer groups commercial and households) should (industrial, commercial and have access to the energy markets to households) should have access to trade their flexibility and selfthe energy markets to trade their generated electricity. Customers flexibility and self-generated should be allowed to make full use of electricity. Customers should be the advantages of aggregation of allowed to make full use of the production and supply over larger advantages of aggregation of regions and benefit from cross-border production and supply over larger competition. Aggregators are likely to regions and benefit from cross-border play an important role as competition. [] Market participants intermediaries between customer engaged in aggregation are likely to groups and the market. Transparent play an important role as

  and fair rules should be established to intermediaries between customer also allow independent aggregators to groups and the market. Member fulfil this role. Products should be States should be free to choose the defined on all organised energy appropriate implementation model markets, including ancillary services and approach to governance, for and capacity markets so as to independent aggregation while encourage the participation of demand respecting the general principles as response. laid out in this Directive. This could include market-based or regulatory principles which provide solutions which achieve the provisions set out in this Directive, including models where imbalances are corrected. The chosen model should contain transparent and fair rules [] to [] allow independent aggregators to fulfil this role and to ensure, that the final customer adequately benefits from their activity. Products should be defined on all [] energy markets, including ancillary services and capacity markets so as to encourage the participation of demand response.

ANNEX TREE.2.B EN

• 41. 

  (27) The 'European Strategy for Low (27) The 'European Strategy for

  Emission Mobility' 12 stresses the need Low Emission Mobility' 13 stresses for the decarbonisation of the transport the need for the decarbonisation of sector and the reduction of its the transport sector and the reduction emissions especially in urban areas and of its emissions especially in urban highlights the important role that areas and highlights the important electro-mobility can play in role that electro-mobility can play in contributing to these objectives. contributing to these objectives. Moreover, the deployment of electro Moreover, the deployment of electromobility constitutes an important mobility constitutes an important element of the energy transition. element of the energy transition. Market rules set out in this Directive Market rules set out in this Directive should therefore contribute to creating should therefore contribute to favourable conditions for electric creating favourable conditions for vehicles of all kinds. In particular, they electric vehicles of all kinds. In should safeguard the effective particular, they should safeguard the deployment of publicly accessible and effective deployment of publicly private recharging points for electric accessible and private recharging vehicles and ensure the efficient points for electric vehicles and integration of vehicle charging into ensure the efficient integration of system operation. vehicle charging into system operation.

• 42. 

  (28) Demand response will be pivotal (28) Demand response will be to enable smart charging of electric pivotal to enable smart charging of vehicles and thereby enable the electric vehicles and thereby enable efficient integration of electric vehicles the efficient integration of electric into the electricity grid which will be vehicles into the electricity grid crucial for the decarbonisation of which will be crucial for the process transport. of decarbonisation of transport.

12 SWD(2016) 244 final

13 SWD(2016) 244 final

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• 43. 

  (29) Consumers should be able to (29) Consumers should be able to consume, store and/or sell selfconsume, store and/or sell selfgenerated

  electricity to the market. generated electricity to the market. New technology developments will New technology developments will facilitate these activities in the future. facilitate these activities in the future. However, legal and commercial However, legal and commercial barriers exist including for example barriers exist including for example disproportionate fees for internally disproportionate fees for internally consumed electricity, obligations to consumed electricity, obligations to feed self- generated electricity to the feed self- generated electricity to the energy system, administrative burdens energy system, administrative such as for self- generators who sell burdens such as for self- generators electricity to the system to comply who sell electricity to the system to with the requirements for suppliers, comply with the requirements for etc. All these obstacles that prevent suppliers, etc. All these obstacles that consumers from self-generating and prevent consumers from selffrom consuming, storing or selling generating and from consuming, self-generated electricity to the market storing or selling self-generated should be removed while it should be electricity to the market should be ensured that self-generating consumers removed while it should be ensured contribute adequately to system costs. that self-generating consumers contribute adequately to system costs. Member States may have different governing provisions with respect to taxes and levies for individual and jointly acting final customers as well as for household and other final customers in their national legislation.

ANNEX TREE.2.B EN

• 44. 

  (30) Distributed energy technologies AM 13 (30) Distributed energy and consumer empowerment have (30) Distributed energy technologies and consumer made community energy and energy technologies and consumer empowerment have made community cooperatives an effective and costempowerment have made community energy [] an effective and costefficient way to meet citizens' needs energy and energy cooperatives an efficient way to meet citizens' needs and expectations regarding energy effective and cost-efficient way to and expectations regarding energy sources, services and local meet citizens' needs and expectations sources, services and local participation. Community energy regarding energy sources, services participation. Community energy offers an inclusive option for all and local participation. Community offers an inclusive option for all consumers to have a direct stake in energy offers an inclusive option for consumers to have a direct stake in producing, consuming or sharing all consumers to have a direct stake producing, consuming or sharing energy between each other within a in producing, consuming or sharing energy between each other []. geographically confined community energy between each other, on the Community energy initiatives focus network that may operate in an basis of open and voluntary primarily on providing affordable isolated mode or be connected to the participation, within a energy of a specific kind, such as public distribution network. geographically confined community renewable energy, for their members Community energy initiatives focus network that may operate in an or shareholders rather than primarily on providing affordable isolated mode or be connected to the prioritising profit-making like a energy of a specific kind, such as public distribution network. traditional energy company. By renewable energy, for their members Community energy initiatives focus directly engaging with consumers or shareholders rather than prioritising primarily on providing affordable community energy initiatives are profit-making like a traditional energy energy of a specific kind, such as demonstrating their potential in company. By directly engaging with renewable energy, for their members facilitating the up-take of new consumers community energy or shareholders, contributing to technologies and consumption initiatives are demonstrating their bringing benefits to local patterns, including smart distribution potential in facilitating the up-take of communities and to representing grids and demand response, in an new technologies and consumption local interests, and rather than integrated manner. Community patterns, including smart distribution prioritising profit-making like a energy can also advance energy grids and demand response, in an traditional energy company. By efficiency at household level and integrated manner. Community energy directly engaging with consumers help fight energy poverty through can also advance energy efficiency at community energy initiatives are reduced consumption and lower household level and help fight energy demonstrating their potential in supply tariffs. Community energy poverty through reduced consumption facilitating the up-take of new also enables certain groups of and lower supply tariffs. Community technologies and consumption household consumers to participate energy also enables certain groups of patterns, including smart distribution in the energy market who otherwise

ANNEX TREE.2.B EN

household consumers to participate in grids and demand response, in an might not have been able to do so. the energy market who otherwise integrated manner. Community Where they have been successfully might not have been able to do so. energy can also advance energy operated such initiatives have Where they have been successfully efficiency at household level and delivered economic, social and operated such initiatives have help fight energy poverty through environmental value to the delivered economic, social and reduced consumption and lower community that goes beyond the environmental value to the community supply tariffs. Community energy mere benefits derived from the that goes beyond the mere benefits also enables certain groups of provision of energy services. [] The derived from the provision of energy household consumers to participate Directive aims at recognizing services. Local energy communities in the energy market who otherwise certain categories of citizen energy should be allowed to operate on the might not have been able to do so. initiatives at the European level as market on a level-playing field without Where they have been successfully "energy community" to provide distorting competition. Household operated such initiatives have them with an enabling framework, consumers should be allowed to delivered economic, social and fair treatment, a level playing field voluntarily participate in a community environmental value to the and a well-defined catalogue of energy initiative as well as to leave it, community that goes beyond the rights and obligations. Household without losing access to the network mere benefits derived from the consumers should be allowed to operated by the community energy provision of energy services. Local voluntarily participate in a initiative or their rights as consumers. energy communities should be community energy initiative as well Access to a local energy community's allowed to operate on the market on a as to leave it, without losing access to network should be granted on fair and level-playing field without distorting the network operated by the cost-reflective terms. competition. Household consumers community energy initiative or their should be allowed to voluntarily rights as consumers. Access to a [] participate in a community energy energy community's network should initiative as well as to leave it, be granted on fair and cost-reflective without losing access to the network terms. operated by the community energy initiative or their rights as consumers. Access to a local energy community's network should be granted on fair and cost-reflective terms.

ANNEX TREE.2.B EN

• 45. 

  (30a) Energy community Provisionally agreed: membership is open to all (30a) Citizens energy community categories of entities, however the membership is open to all decision-making powers within an categories of entities, however the energy community should be decision-making powers within a limited to those members or citizens energy community should shareholders that are not engaged be limited to those members or in large scale commercial activity shareholders that are not engaged and for which the energy sector in large scale commercial activity does not constitute a primary area and for which the energy sector of economic activity. Energy does not constitute a primary area communities, as defined in the of economic activity. Citizens Directive, are deemed a category of energy communities, as defined in citizens' initiatives that should be the Directive, are deemed a subject to recognition and category of citizens' or local protection under the Union law. actors' cooperation that should be The definition of energy subject to recognition and communities does not prevent the protection under the Union law. existence of other citizen initiatives The definition of citizens energy such as those stemming from communities does not prevent the private law agreements. Therefore, existence of other citizen it should be possible for Member initiatives such as those stemming States to choose any form of entity from private law agreements. for energy communities as long as Therefore, it should be possible such an entity may, acting in its for Member States to choose any own name, exercise rights and be form of entity for citizens energy subject to obligations. communities, for example an association, a cooperative, a partnership, a non-profit organisation or SME, as long as such an entity may, acting in its own name, exercise rights and be subject to obligations.

ANNEX TREE.2.B EN

• 46. 

  (30b) The provisions on energy Provisionally agreed: communities contain a catalogue of (30b) The provisions on citizens applicable rights and obligations, energy communities contain a which could be deduced from catalogue of applicable rights and other, already existing rules, such obligations, which could be as the freedom of contracting, deduced from other, already supplier switching rules, existing rules, such as the freedom distribution system operator of contracting, supplier switching responsibilities, network charges, rules, distribution system operator balancing obligation. responsibilities, network charges, balancing obligation.

• 47. 

  (30c) Energy communities Provisionally agreed: constitute a new type of entity due (30c) Citizens energy to their membership structure, communities constitute a new type governance requirements and of entity due to their membership purpose. They should be allowed to structure, governance operate on the market on a levelrequirements and purpose. They playing field without distorting should be allowed to operate on competition subject to the same the market on a level-playing field rights and obligations as the other without distorting competition electricity undertakings. The rights subject to the same rights and and obligations should apply obligations as the other electricity according to the roles undertaken undertakings. The rights and such as the roles of final customers, obligations should apply generators, suppliers, distribution according to the roles undertaken system operators. Energy such as the roles of final communities should not face customers, generators, suppliers, regulatory restrictions if they distribution system operators. apply existing or future ICT Citizens energy communities technologies to share electricity should not face regulatory from generation assets within the restrictions if they apply existing community between its members or future ICT technologies to or shareholders based on market share electricity from generation principles, for example by assets within the community offsetting the energy component of between its members or members using the generation shareholders based on market

ANNEX TREE.2.B EN

available within the community, principles, for example by even over the public network, offsetting the energy component of provided that both metering points members using the generation belong to the community. Virtual available within the community, sharing enables members to be even over the public network, supplied with electricity from the provided that both metering generation plants within the points belong to the community. community without being in direct Electricity sharing enables physical proximity or behind a members to be supplied with single metering point. Where electricity from the generation electricity is shared over the public plants within the community network it should not affect the without being in direct physical collection of network charges, proximity or behind a single tariffs, taxes and levies related to metering point. Where electricity electricity flows. The sharing is shared it should not affect the should be facilitated according the collection of network charges, obligations and correct timeframes tariffs and levies related to for balancing, metering and electricity flows. The sharing settlement. The provisions on should be facilitated according the energy communities do not obligations and correct interfere with the Member States' timeframes for balancing, competence to design and metering and settlement. The implement their policies for the provisions on citizens energy energy sector related to taxation, communities do not interfere with network charges and tariffs or the Member States' competence to energy policy financing systems design and implement their and cost sharing as long as those policies for the energy sector policies are non-discriminatory related to network charges and and lawful. tariffs or energy policy financing systems and cost sharing as long as those policies are nondiscriminatory and lawful.

ANNEX TREE.2.B EN

• 48. 

  (30d) The Directive foresees a Provisionally agreed: possibility for Member States to (30d) The Directive foresees a allow an energy community to possibility for Member States to become a distribution system allow a citizens energy community operator either under the general to become a distribution system regime or in accordance with Art. operator either under the general 38 as the so-called "Closed regime or in accordance with Art. Distribution System Operator". 38 as the so-called "Closed Once an energy community is Distribution System Operator". granted the status as a distribution Once a citizens energy community system operator, it should be is granted the status as a treated and be subject to the same distribution system operator, it obligations as distribution system should be treated and be subject operators. The provisions on to the same obligations as energy communities only clarifies distribution system operators. The aspects of distribution system provisions on citizens energy operation that are likely to be communities only clarifies aspects relevant for energy communities, of distribution system operation while other aspects on distribution that are likely to be relevant for system operation apply according citizens energy communities, while to the provisions on distribution other aspects on distribution system operators. system operation apply according to the provisions on distribution system operators.

ANNEX TREE.2.B EN

• 49. 

  (31) Energy bills and annual AM 14 (31) Energy bills [] are an statements are an important means (31) Energy bills and annual important means through which through which customers are informed. statements are an important means customers are informed. As well as As well as data on consumption and through which customers are data on consumption and costs, they costs, they can also convey other informed. Energy bills and annual can also convey other information information that helps consumers to statements provide data on that helps consumers to compare compare their current deal with other consumption and costs, while they their current deal with other offers. offers. However, considering that billcan also convey other information However, [] bill-related disputes are related disputes are a very common that helps consumers to compare a very common source of consumer source of consumer complaints, a their current deal with other offers. complaints, a factor which factor which contributes to persistently However, considering that billcontributes to persistently low levels low levels of consumer satisfaction related disputes are a very common of consumer satisfaction and and engagement in the energy sector, it source of consumer complaints, bills engagement in the energy sector. It is is necessary to make bills and annual and annual statements contribute to therefore necessary to make bills [] statements clearer and easier to persistently low levels of consumer clearer and easier to understand, as understand, as well as to ensure that satisfaction and engagement in the well as to ensure that bills and bills contain all the information energy sector. Therefore it is billing information [] prominently necessary to enable consumers to necessary to make bills and annual display a limited number of regulate their energy consumption, statements clearer and easier to important information items that compare offers and switch suppliers. understand, as well as to ensure that are necessary to enable consumers to bills contain all the information regulate their energy consumption, necessary to enable consumers to compare offers and switch suppliers. regulate their energy consumption, Other information items should be compare offers and switch suppliers. available to final customers in, with or signposted to within their bills. These can be displayed in the bill, be in a separate document attached to the bill, or the bill can contain a reference to where the customer can easily find the information on a website, app or through other means.

ANNEX TREE.2.B EN

• 50. 

  (31a) The regular provision of accurate billing information based on actual consumption, facilitated by smart meters, is important for helping consumers to control their electricity consumption and costs. Nevertheless, consumers, in

  particular household consumers, should have access to flexible arrangements for actual payment. This enables, for example, consumers to be provided frequent billing information whilst only paying on a quarterly basis, or products where the consumer pays the same amount every month independent of the actual consumption.

• 51. 

  (31b) The provisions on billing provided for in Directive

  2012/27/EU of the European Parliament and of the Council 14 should be updated, streamlined and moved to Directive 2009/72/EC, where they fit more coherently.

14 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC i and 2010/30/EU

and repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

ANNEX TREE.2.B EN

• 52. 

  (32) Member States should AM 15 (32) Member States should encourage the modernisation of (32) Member States should encourage the modernisation of distribution networks, such as through encourage the modernisation of distribution networks, such as the introduction of smart grids, which distribution networks, such as through the introduction of smart should be built in a way that through the introduction of smart grids, which should be built in a way encourages decentralised generation grids, which should be built in a way that encourages decentralised and energy efficiency. that encourages decentralised generation and energy efficiency. generation, energy storage and

  energy efficiency. 53. (33) Engaging consumers requires (33) Engaging consumers requires

  appropriate incentives and appropriate incentives and technologies such as smart metering. technologies such as smart metering. Smart metering systems empower Smart metering systems empower consumers as they allow them to consumers as they allow them to receive accurate and near-real time receive accurate and near-real time feedback on their energy consumption feedback on their energy or generation allowing them to manage consumption or generation allowing it better, participate in and reap them to manage it better, participate benefits from demand side response in and reap benefits from demand programmes and other services, and side response programmes and other lower their electricity bill. Smart services, and lower their electricity metering also enables distribution bill. Smart metering also enables system operators to have better distribution system operators to have visibility of their networks, and better visibility of their networks, and consequently reduce their operation consequently reduce their operation and maintenance costs and pass those and maintenance costs and pass those savings to the distribution tariffs which savings to the distribution tariffs are ultimately borne by consumers. which are ultimately borne by consumers.

• 54. 

  (34) When it comes to deciding at AM 16 (34) When it comes to deciding at national level on the smart metering (34) When it comes to deciding at national level on the smart metering deployment, it should be possible to national level on the smart metering deployment, it should be possible to base this on an economic assessment. deployment, it should be possible to base this on an economic assessment. Should that assessment conclude that base this on an economic assessment. Should that assessment conclude that the introduction of such metering This economic assessment should the introduction of such metering

  systems is economically reasonable take into account the long term systems is economically reasonable

ANNEX TREE.2.B EN

and cost-effective only for consumers benefits of smart metering and cost-effective only for consumers with a certain amount of electricity deployment for the whole value with a certain amount of electricity consumption, Member States should chain, in particular for better consumption, Member States should be able to take that into account when network management, more precise be able to take that into account proceeding with implementation. planning and identification of when proceeding with network losses. Should that implementation. assessment conclude that the introduction of such metering systems is cost-effective only for consumers with a certain amount of electricity consumption, Member States should be able to take that into account when proceeding with implementation. This assessment should however be reviewed regularly and at least every two years in light of the fast evolving technological developments.

• 55. 

  (35) Member States that are not (35) Member States that are not systematically rolling out smart systematically rolling out smart

  metering should give the possibility to metering should give the possibility consumers to benefit, upon request and to consumers to benefit, upon request under fair and reasonable conditions, and under fair and reasonable and by providing them with all the conditions, and by providing them relevant information, from the with all the relevant information, installation of an electricity smart from the installation of an electricity meter. Where consumers do not have smart meter. Where consumers do smart meters, they should be entitled to not have smart meters, they should meters that fulfil the minimum be entitled to meters that fulfil the requirements necessary to provide minimum requirements necessary to them with the billing information provide them with the billing specified in this Directive. information specified in this Directive.

ANNEX TREE.2.B EN

• 56. 

  (36) In order to assist consumers' (36) In order to assist consumers' active participation in the electricity active participation in the electricity market, the smart metering systems to market, the smart metering systems be deployed by Member States in their to be deployed by Member States in territory should be interoperable, not their territory should be

  represent a barrier to switching of interoperable, not represent a barrier supplier, and should be equipped with to switching of supplier, and should fit-for-purpose functionalities that be equipped with fit-for-purpose allow consumers to have near-real time functionalities that allow consumers access to their consumption data, to have near-real time access to their modulate their energy consumption consumption data, modulate their and, to the extent that the supporting energy consumption and, to the infrastructure permits, offer their extent that the supporting flexibility to the network and to energy infrastructure permits, offer their services companies, be rewarded for it, flexibility to the network and to and achieve savings in their electricity energy services companies, be bill. rewarded for it, and achieve savings in their electricity bill.

• 57. 

  (37) A key aspect of supplying AM 17 (37) A key aspect of supplying customers is access to objective and

  transparent consumption data. Thus, (37) A key aspect of supplying

  customers is access to objective and

  consumers should have access to their final customers is access to

  transparent consumption data. Thus,

  consumption data and associated objective, timely and transparent

  consumers should have access to

  prices and services costs so that they consumption data. Thus, consumers

  their consumption data and

  can invite competitors to make an offer should have access to their

  associated prices and services costs

  based on those data. Consumers should consumption data and associated

  so that they can invite competitors to make an offer based on those data.

  also have the right to be properly prices and services costs so that they Consumers should also have the right informed about their energy can invite competitors to make an to be properly informed about their

  consumption. Prepayments should not offer based on those data. Consumers should also have the right to be energy consumption. Prepayments

  place a disproportionate disadvantage properly informed about their energy should not place a disproportionate at their users, while different payment consumption. Prepayments should disadvantage at their users, while systems should be non-discriminatory. not place a disproportionate different payment systems should be Information on energy costs provided disadvantage at their users, while non-discriminatory. Information on to consumers frequently enough will different payment systems should be energy costs provided to consumers create incentives for energy savings non-discriminatory. Information on frequently enough will create because it will give customers direct energy costs provided to final incentives for energy savings because

ANNEX TREE.2.B EN

feedback on the effects of investment consumers frequently enough will it will give customers direct feedback in energy efficiency and change of create incentives for energy savings on the effects of investment in energy behaviour. In this respect, full because it will give final customers efficiency and change of behaviour. implementation of Directive direct feedback on the effects of In this respect, full implementation of 2012/27/EU of the European investment in energy efficiency and Directive 2012/27 i/EU of the Parliament and of the Council 15 will change of behaviour. In this respect, European Parliament and of the help consumers to reduce their energy full implementation of Directive Council 16 will help consumers to costs. 2012/27/EU of the European reduce their energy costs.

Parliament and of the Council 35 will help consumers to reduce their energy costs.

• 58. 

  (38) Currently different models for AM 18 (38) Currently different models for the management of data have been (38) Currently different models for the management of data have been

  developed or are under development in the management of data have been developed or are under development the Member States following the developed or are under development in the Member States following the deployment of smart metering systems. in the Member States following the deployment of smart metering Independently of the data management deployment of smart metering systems. Independently of the data model it is important that Member systems. Independently of the data States put in place transparent rules management model it is important

  management model it is important

  under which data can be accessed that Member States put in place

  that Member States put in place transparent rules under which data

  under non-discriminatory conditions transparent rules under which data can be accessed under nonand ensure the highest level of can be accessed and exchanged discriminatory conditions and ensure cybersecurity and data protection as under non-discriminatory conditions the highest level of cybersecurity and well as the impartiality of the entities and in an effective manner and data protection as well as the

  which handle data. ensure the highest level of data integrity, cybersecurity and data impartiality of the entities which

  protection as well as the impartiality handle data.

  of the entities which handle data. Member States should also ensure that consumers remain in control and owners of the consumption

15 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC i and

2010/30/EU and repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1). 16 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC i and

2010/30/EU and repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

ANNEX TREE.2.B EN

data, in particular by being able to identify themselves, give or withdraw consent in an easy manner in accordance with Union data protection legislation.

• 59. 

  (39) Member States should take the (39) Member States should take the necessary measures to protect necessary measures to protect

  vulnerable and energy poor customers vulnerable and energy poor in the context of the internal market in customers in the context of the electricity. Such measures may differ internal market in electricity. Such according to the particular measures may differ according to the circumstances in the Member States in particular circumstances in the question and may include social or Member States in question and may energy policy measures relating to the include social or energy policy payment of electricity bills, investment measures relating to the payment of in residential energy efficiency or electricity bills, investment in consumer protection such as residential energy efficiency or disconnection safeguards. Where consumer protection such as universal service is also provided to disconnection safeguards. Where small enterprises, measures to ensure universal service is also provided to that such universal service is provided small enterprises, measures to ensure may differ according to whether they that such universal service is are aimed at household customers or provided may differ according to small enterprises. whether they are aimed at household customers or small enterprises.

• 60. 

  (40) Energy services are fundamental AM 19 (40) Energy services are to safeguard the well-being of the (40) Energy supply is fundamental fundamental to safeguard the well Union citizens. Adequate warmth, to safeguard the well-being of the being of the Union citizens. cooling, lighting and the energy to Union citizens. Heating, cooling, Adequate warmth, cooling, lighting power appliances are essential services lighting and the energy to power and the energy to power appliances to guarantee a decent standard of appliances are essential to guarantee are essential services to guarantee a living and citizens' health. a decent standard of living and decent standard of living and citizens' Furthermore, access to these energy citizens' health. Furthermore, access health. Furthermore, access to these services empowers European citizens to energy empowers European energy services empowers European to fulfil their potential and it enhances citizens to fulfil their potential and it citizens to fulfil their potential and it social inclusion. Energy poor enhances social inclusion. Energy enhances social inclusion. Energy

ANNEX TREE.2.B EN

households are unable to afford these poor households are unable to afford poor households are unable to afford energy services due to a combination these energy services due to a these energy services due to a of low income, high energy combination of low income, high combination of low income, high expenditure and poor energy efficiency energy expenditure and poor energy energy expenditure and poor energy of their homes. Member States should efficiency of their homes. Member efficiency of their homes. Member collect the right information to monitor States should collect the right States should collect the right the number of households in energy information to monitor the number of information to monitor the number of poverty. Accurate measurement should households in energy poverty. households in energy poverty. assist Member States to identify those Accurate measurement should assist Accurate measurement should assist households affected by energy poverty Member States to identify those Member States to identify those in order to provide targeted support. households affected by energy households affected by energy The Commission should actively poverty in order to provide targeted poverty in order to provide targeted support the implementation of the support through their social welfare support. The Commission should provisions on energy poverty by systems or other policy measures. actively support the implementation facilitating the sharing of good The Commission should actively of the provisions on energy poverty practices between Member States. support the implementation of the by facilitating the sharing of good provisions on energy poverty by practices between Member States. facilitating the sharing of good practices between Member States.

• 61. 

  (41) Member States which are AM 20 (41) Member States which are affected by energy poverty and which (41) Energy poverty is a growing affected by energy poverty and have not yet done so should therefore problem in the Union. Member which have not yet done so should develop national action plans or other States which are affected by energy therefore develop national action appropriate frameworks to tackle this poverty and which have not yet done plans or other appropriate

  problem, aiming at decreasing the so should therefore develop national frameworks to tackle this problem, number of people suffering such action plans or other appropriate aiming at decreasing the number of situation. Low income, high energy frameworks to tackle energy poverty, people suffering such situation. Low expenditure, and poor energy aiming at decreasing the number of income, high energy expenditure, and efficiency of homes are relevant energy poor customers. Low income, poor energy efficiency of homes are, factors in designing indicators for the high energy expenditure, and poor among others, relevant factors in measurement of energy poverty. In any energy efficiency of homes are designing indicators for the event, Member States should ensure relevant factors in designing measurement of energy poverty .In the necessary energy supply for indicators for the measurement of any event, Member States should vulnerable and energy poor customers. energy poverty. In any event, ensure the necessary energy supply In doing so, an integrated approach, Member States should ensure the for vulnerable and energy poor such as in the framework of energy necessary energy supply for customers. In doing so, an integrated

ANNEX TREE.2.B EN

and social policy, could be used and vulnerable and energy poor approach, such as in the framework measures could include social policies customers. In doing so, an integrated of energy and social policy, could be or energy efficiency improvements for approach, such as in the framework used and measures could include housing. At the very least, this of energy and social policy, could be social policies or energy efficiency Directive should allow national used and measures could include improvements for housing. At the policies in favour of vulnerable and social policies or energy efficiency very least, this Directive should energy poor customers. improvements for housing. This allow national policies in favour of Directive should enhance national vulnerable and energy poor policies in favour of vulnerable and customers. energy poor customers.

• 62. 

  (42) Distribution system operators (42) Distribution system operators have to cost-efficiently integrate new have to cost-efficiently integrate new electricity generation especially electricity generation especially

  generating installations using generating installations using renewable energy sources and new renewable energy sources and new loads such as heat pumps and electric loads such as heat pumps and electric vehicles. For this purpose distribution vehicles. For this purpose system operators should be enabled distribution system operators should and incentivised to use services from be enabled and incentivised to use distributed energy resources such as services from distributed energy demand response and energy storage, resources such as demand response based on market procedures, in order and energy storage, based on market to efficiently operate their networks procedures, in order to efficiently and avoid costly network expansions. operate their networks and avoid Member States should put in place costly network expansions. Member appropriate measures such as national States should put in place appropriate network codes and market rules, and measures such as national network incentivise distribution system codes and market rules, and operators through network tariffs incentivise distribution system which do not create obstacles to operators through network tariffs flexibility or to the improvement of which do not create obstacles to energy efficiency in the grid. Member flexibility or to the improvement of States should also introduce network energy efficiency in the grid. development plans for distribution Member States should also introduce systems in order to support the network development plans for integration of generating installations distribution systems in order to

ANNEX TREE.2.B EN

using renewable energy sources, support the integration of generating facilitate the development of storage installations using renewable energy facilities and the electrification of the sources, facilitate the development of transport sector, and provide to system storage facilities and the users adequate information regarding electrification of the transport sector, the foreseen expansions or upgrades of and provide to system users adequate the network, as currently such information regarding the foreseen procedure does not exist in the expansions or upgrades of the majority of Member States. network, as currently such procedure does not exist in the majority of Member States.

• 63. 

  (42a) Network operators should (42a) Network operators should not own, develop, manage or not own, develop, manage or

  operate energy storage facilities. In operate energy storage facilities. the new electricity market design In the new electricity market storage services should be marketdesign storage services should be based and competitive. market-based and competitive. Consequently, cross-subsidization Consequently, cross-subsidization between storage and the regulated between storage and the regulated function of distribution or function of distribution or transmission of electricity should transmission of electricity should be avoided. Such restriction on be avoided. Such restriction on storage facilities ownership is to storage facilities ownership is to prevent distortion of competition, prevent distortion of competition, eliminate the risk of eliminate the risk of discrimination, safeguard fair discrimination, safeguard fair access to storage services to all access to storage services to all market participants and to foster market participants and to foster effective and efficient use of effective and efficient use of storage facilities, beyond the storage facilities, beyond the operation of the distribution or operation of the distribution or transmission system. This should transmission system. This should be interpreted and applied in be interpreted and applied in accordance with the rights and accordance with the rights and principles established under the principles established under the

ANNEX TREE.2.B EN

Charter of Fundamental Rights of Charter of Fundamental Rights of the European Union, in particular the European Union, in particular

the freedom to conduct a business the freedom to conduct a business and the right to property and the right to property guaranteed by Articles 16 and 17 guaranteed by Articles 16 and 17 of the Charter. of the Charter.

• 64. 

  (43) Non-discriminatory access to the (43) Non-discriminatory access to distribution network determines the distribution network determines downstream access to customers at downstream access to customers at retail level. To create a level playing retail level. To create a level playing field at retail level, the activities of field at retail level, the activities of distribution system operators should distribution system operators should therefore be monitored so that they are therefore be monitored so that they prevented from taking advantage of are prevented from taking advantage their vertical integration as regards of their vertical integration as regards their competitive position on the their competitive position on the

  market, in particular in relation to market, in particular in relation to household and small non-household household and small non-household customers. customers.

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• 65. 

  (44) Where a closed distribution AM 21

  system is used to ensure the optimal (44) Where a closed distribution (44) Where a closed distribution efficiency of an integrated energy system is used to ensure the optimal system is used to ensure the optimal supply requiring specific operational efficiency of an integrated energy efficiency of an integrated energy standards, or a closed distribution supply requiring specific operational supply requiring specific operational system is maintained primarily for the standards, or when a closed standards, or a closed distribution use of the owner of the system, it distribution system is maintained system is maintained primarily for should be possible to exempt the primarily for the use of the owner of the use of the owner of the system, it distribution system operator from the system, it should be possible to should be possible to exempt the obligations which would constitute an exempt the distribution system distribution system operator from unnecessary administrative burden operator from obligations which obligations which would constitute because of the particular nature of the would constitute an unnecessary an unnecessary administrative burden relationship between the distribution administrative burden because of the because of the particular nature of the system operator and the users of the particular nature of the relationship relationship between the distribution system. Industrial, commercial or between the distribution system system operator and the users of the shared services sites such as train operator and the users of the system. system. Industrial, commercial or station buildings, airports, hospitals, Industrial, commercial or shared shared services sites such as train large camping sites with integrated services sites such as train station station buildings, airports, hospitals, facilities or chemical industry sites can buildings, airports, hospitals, large large camping sites with integrated include closed distribution systems camping sites with integrated facilities or chemical industry sites because of the specialised nature of facilities or chemical industry sites can include closed distribution their operations. can include closed distribution systems because of the specialised systems because of the specialised nature of their operations.

  nature of their operations. 66. (45) In order to secure competition (45) In order to secure competition

  and the supply of electricity at the and the supply of electricity at the most competitive price, Member States most competitive price, Member and national regulatory authorities States and national regulatory should facilitate cross-border access authorities should facilitate crossfor new suppliers of electricity from border access for new suppliers of different energy sources as well as for electricity from different energy new providers of power generation. sources as well as for new providers of power generation.

• 67. 

  (46) Without effective separation of (46) Without effective separation of networks from activities of generation networks from activities of

  and supply (effective unbundling), generation and supply (effective

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there is an inherent risk of unbundling), there is an inherent risk discrimination not only in the of discrimination not only in the operation of the network but also in the operation of the network but also in incentives for vertically integrated the incentives for vertically undertakings to invest adequately in integrated undertakings to invest their networks. adequately in their networks.

• 68. 

  (47) Only the removal of the (47) Only the removal of the incentive for vertically integrated incentive for vertically integrated undertakings to discriminate against undertakings to discriminate against competitors as regards network access competitors as regards network and investment can ensure effective access and investment can ensure unbundling. Ownership unbundling, effective unbundling. Ownership which implies the appointment of the unbundling, which implies the network owner as the system operator appointment of the network owner as and its independence from any supply the system operator and its

  and production interests, is clearly an independence from any supply and effective and stable way to solve the production interests, is clearly an inherent conflict of interests and to effective and stable way to solve the ensure security of supply. For that inherent conflict of interests and to reason, the European Parliament, in its ensure security of supply. For that resolution of 10 July 2007 on reason, the European Parliament, in prospects for the internal gas and its resolution of 10 July 2007 on electricity market 17 referred to prospects for the internal gas and ownership unbundling at transmission electricity market referred to level as the most effective tool to ownership unbundling at promote investments in infrastructure transmission level as the most in a non-discriminatory way, fair effective tool to promote investments access to the network for new entrants in infrastructure in a nonand transparency in the market. Under discriminatory way, fair access to the ownership unbundling, Member States network for new entrants and should therefore be required to ensure transparency in the market. Under that the same person or persons are not ownership unbundling, Member entitled to exercise control over a States should therefore be required to

17 OJ C 175 E, 10.7.2008, p.206.

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generation or supply undertaking and, ensure that the same person or at the same time, exercise control or persons are not entitled to exercise any right over a transmission system control over a generation or supply operator or transmission system. undertaking and, at the same time, Conversely, control over a exercise control or any right over a transmission system or transmission transmission system operator or system operator should preclude the transmission system. Conversely, possibility of exercising control or any control over a transmission system or right over a generation or supply transmission system operator should undertaking. Within those limits, a preclude the possibility of exercising generation or supply undertaking control or any right over a generation should be able to have a minority or supply undertaking. Within those shareholding in a transmission system limits, a generation or supply operator or transmission system. undertaking should be able to have a minority shareholding in a transmission system operator or transmission system.

• 69. 

  (48) Any system for unbundling (48) Any system for unbundling should be effective in removing any should be effective in removing any conflict of interests between producers, conflict of interests between

  suppliers and transmission system producers, suppliers and transmission operators, in order to create incentives system operators, in order to create for the necessary investments and incentives for the necessary guarantee the access of new market investments and guarantee the access entrants under a transparent and of new market entrants under a efficient regulatory regime and should transparent and efficient regulatory not create an overly onerous regulatory regime and should not create an regime for national regulatory overly onerous regulatory regime for authorities. national regulatory authorities.

• 70. 

  (49) Since ownership unbundling (49) Since ownership unbundling requires, in some instances, the requires, in some instances, the

  restructuring of undertakings, Member restructuring of undertakings, States that decide to implement Member States that decide to ownership unbundling should be implement ownership unbundling granted additional time to apply the should be granted additional time to

ANNEX TREE.2.B EN

relevant provisions. In view of the apply the relevant provisions. In view vertical links between the electricity of the vertical links between the and gas sectors, the unbundling electricity and gas sectors, the provisions should apply across the two unbundling provisions should apply sectors. across the two sectors.

• 71. 

  (50) Under ownership unbundling, to (50) Under ownership unbundling, ensure full independence of network to ensure full independence of

  operation from supply and generation network operation from supply and interests and to prevent exchanges of generation interests and to prevent any confidential information, the same exchanges of any confidential person should not be a member of the information, the same person should managing boards of both a not be a member of the managing transmission system operator or a boards of both a transmission system transmission system and an operator or a transmission system undertaking performing any of the and an undertaking performing any functions of generation or supply. For of the functions of generation or the same reason, the same person supply. For the same reason, the should not be entitled to appoint same person should not be entitled to members of the managing boards of a appoint members of the managing transmission system operator or a boards of a transmission system transmission system and to exercise operator or a transmission system control or any right over a generation and to exercise control or any right or supply undertaking. over a generation or supply undertaking.

• 72. 

  (51) The setting up of a system (51) The setting up of a system operator or a transmission operator that operator or a transmission operator is independent from supply and that is independent from supply and generation interests should enable a generation interests should enable a vertically integrated undertaking to vertically integrated undertaking to maintain its ownership of network maintain its ownership of network assets whilst ensuring effective assets whilst ensuring effective separation of interests, provided that separation of interests, provided that such independent system operator or such independent system operator or such independent transmission such independent transmission

  operator performs all the functions of a operator performs all the functions of

ANNEX TREE.2.B EN

system operator and detailed a system operator and detailed regulation and extensive regulatory regulation and extensive regulatory control mechanisms are put in place. control mechanisms are put in place.

• 73. 

  (52) Where, on 3 September 2009, an (52) Where, on 3 September 2009, undertaking owning a transmission an undertaking owning a

  system was part of a vertically transmission system was part of a integrated undertaking, Member States vertically integrated undertaking, should therefore be given a choice Member States should therefore be between ownership unbundling and given a choice between ownership setting up a system operator or unbundling and setting up a system transmission operator which is operator or transmission operator independent from supply and which is independent from supply generation interests. and generation interests.

• 74. 

  (53) To preserve fully the interests of (53) To preserve fully the interests the shareholders of vertically of the shareholders of vertically

  integrated undertakings, Member integrated undertakings, Member States should have the choice of States should have the choice of implementing ownership unbundling implementing ownership unbundling either by direct divestiture or by either by direct divestiture or by splitting the shares of the integrated splitting the shares of the integrated undertaking into shares of the network undertaking into shares of the undertaking and shares of the network undertaking and shares of remaining supply and generation the remaining supply and generation undertaking, provided that the undertaking, provided that the requirements resulting from ownership requirements resulting from unbundling are complied with. ownership unbundling are complied with.

ANNEX TREE.2.B EN

• 75. 

  (54) The full effectiveness of the (54) The full effectiveness of the independent system operator or independent system operator or

  independent transmission operator independent transmission operator solutions should be ensured by way of solutions should be ensured by way specific additional rules. The rules on of specific additional rules. The rules the independent transmission operator on the independent transmission provide an appropriate regulatory operator provide an appropriate framework to guarantee fair regulatory framework to guarantee competition, sufficient investment, fair competition, sufficient access for new market entrants and the investment, access for new market integration of electricity markets. entrants and the integration of Effective unbundling through the electricity markets. Effective independent transmission operator unbundling through the independent provisions should be based on a pillar transmission operator provisions of organisational measures and should be based on a pillar of measures relating to the governance of organisational measures and transmission system operators and on a measures relating to the governance pillar of measures relating to of transmission system operators and investment, connecting new on a pillar of measures relating to production capacities to the network investment, connecting new and market integration through production capacities to the network regional cooperation. The and market integration through independence of the transmission regional cooperation. The operator should also, inter alia, be independence of the transmission ensured through certain ‘cooling-off’ operator should also, inter alia, be periods during which no management ensured through certain ‘cooling-off’ or other relevant activity giving access periods during which no management to the same information as could have or other relevant activity giving been obtained in a managerial position access to the same information as is exercised in the vertically integrated could have been obtained in a undertaking. managerial position is exercised in the vertically integrated undertaking.

ANNEX TREE.2.B EN

• 76. 

  (55) A Member State has the right to (55) A Member State has the right opt for full ownership unbundling in to opt for full ownership unbundling its territory. Where a Member State in its territory. Where a Member

  has exercised that right, an undertaking State has exercised that right, an does not have the right to set up an undertaking does not have the right independent system operator or an to set up an independent system independent transmission operator. operator or an independent Furthermore, an undertaking transmission operator. Furthermore, performing any of the functions of an undertaking performing any of the generation or supply cannot directly or functions of generation or supply indirectly exercise control or any right cannot directly or indirectly exercise over a transmission system operator control or any right over a from a Member State that has opted for transmission system operator from a full ownership unbundling. Member State that has opted for full ownership unbundling.

• 77. 

  (56) The implementation of effective (56) The implementation of unbundling should respect the effective unbundling should respect principle of non-discrimination the principle of non-discrimination between the public and private sectors. between the public and private To that end, the same person should sectors. To that end, the same person not be able to exercise control or any should not be able to exercise control right, in violation of the rules of or any right, in violation of the rules ownership unbundling or the of ownership unbundling or the independent system operator option, independent system operator option, solely or jointly, over the composition, solely or jointly, over the

  voting or decision of the bodies of both composition, voting or decision of the transmission system operators or the bodies of both the transmission the transmission systems and the system operators or the transmission generation or supply undertakings. systems and the generation or supply With regard to ownership unbundling undertakings. With regard to and the independent system operator ownership unbundling and the solution, provided that the Member independent system operator State in question is able to demonstrate solution, provided that the Member that the requirement is complied with, State in question is able to two separate public bodies should be demonstrate that the requirement is able to control generation and supply complied with, two separate public activities on the one hand and bodies should be able to control transmission activities on the other. generation and supply activities on

ANNEX TREE.2.B EN

the one hand and transmission activities on the other.

• 78. 

  (57) Fully effective separation of (57) Fully effective separation of network activities from supply and network activities from supply and generation activities should apply generation activities should apply throughout the Union to both Union throughout the Union to both Union and non- Union undertakings. To and non- Union undertakings. To ensure that network activities and ensure that network activities and supply and generation activities supply and generation activities

  throughout the Union remain throughout the Union remain independent from each other, independent from each other, regulatory authorities should be regulatory authorities should be empowered to refuse certification to empowered to refuse certification to transmission system operators that do transmission system operators that do not comply with the unbundling rules. not comply with the unbundling To ensure the consistent application of rules. To ensure the consistent those rules across the Union, the application of those rules across the regulatory authorities should take Union, the regulatory authorities utmost account of the Commission’s should take utmost account of the opinion when the former take Commission’s opinion when the decisions on certification. To ensure, former take decisions on in addition, respect for the certification. To ensure, in addition, international obligations of the Union, respect for the international and solidarity and energy security obligations of the Union, and within the Union, the Commission solidarity and energy security within should have the right to give an the Union, the Commission should opinion on certification in relation to a have the right to give an opinion on transmission system owner or a certification in relation to a transmission system operator which is transmission system owner or a controlled by a person or persons from transmission system operator which a third country or third countries. is controlled by a person or persons from a third country or third countries.

ANNEX TREE.2.B EN

• 79. 

  (58) Authorisation procedures should (58) Authorisation procedures not lead to an administrative burden should not lead to an administrative disproportionate to the size and burden disproportionate to the size potential impact of electricity and potential impact of electricity producers. Unduly lengthy producers. Unduly lengthy

  authorisation procedures may authorisation procedures may constitute a barrier to access for new constitute a barrier to access for new market entrants. market entrants.

• 80. 

  (59) Energy regulators need to be (59) Energy regulators need to be able to take decisions in relation to all able to take decisions in relation to relevant regulatory issues if the all relevant regulatory issues if the internal market in electricity is to internal market in electricity is to

  function properly, and to be fully function properly, and to be fully independent from any other public or independent from any other public or private interests. This precludes neither private interests. This precludes judicial review nor parliamentary neither judicial review nor supervision in accordance with the parliamentary supervision in constitutional laws of the Member accordance with the constitutional States. In addition, approval of the laws of the Member States. In budget of the regulator by the national addition, approval of the budget of legislator does not constitute an the regulator by the national obstacle to budgetary autonomy. The legislator does not constitute an provisions relating to the autonomy in obstacle to budgetary autonomy. The the implementation of the allocated provisions relating to the autonomy budget of the regulatory authority in the implementation of the should be implemented in the allocated budget of the regulatory framework defined by national authority should be implemented in budgetary law and rules. While the framework defined by national contributing to the independence of the budgetary law and rules. While national regulatory authority from any contributing to the independence of political or economic interest through the [] regulatory authority from any an appropriate rotation scheme, it political or economic interest through should be possible for Member States an appropriate rotation scheme, it to take due account of the availability should be possible for Member States of human resources and of the size of to take due account of the availability the board. of human resources and of the size of the board.

ANNEX TREE.2.B EN

• 81. 

  (60) National regulatory authorities (60) National regulatory authorities New compromise proposal: should be able to fix or approve tariffs, should be able to fix or approve (60a) National regulatory or the methodologies underlying the tariffs, or the methodologies authorities should ensure that calculation of the tariffs, on the basis underlying the calculation of the distribution and transmission of a proposal by the transmission tariffs, on the basis of a proposal by system operators take appropriate system operator or distribution system the transmission system operator or measures to make their network operator(s), or on the basis of a distribution system operator(s), or on more resilient and flexible. For proposal agreed between those the basis of a proposal agreed doing so, their should monitor their operator(s) and the users of the between those operator(s) and the performance based on indicators network. In carrying out those tasks, users of the network. In carrying out such as their capability to operate national regulatory authorities should those tasks, national regulatory lines under dynamic line rating, the ensure that transmission and authorities should ensure that development of remote monitoring distribution tariffs are nontransmission and distribution tariffs and real-time control of

  discriminatory and cost-reflective, and are non-discriminatory and costsubstations, the reduction of grid should take account of the long-term, reflective, and should take account of losses and the frequency and marginal, avoided network costs from the long-term, marginal, avoided duration of power interruptions. distributed generation and demandnetwork costs from distributed side management measures. generation and demand-side management measures.

• 82. 

  (61) Energy regulators should have

  the power to issue binding decisions in (61) Energy regulators should have relation to electricity undertakings and the power to issue binding decisions to impose effective, proportionate and in relation to electricity undertakings dissuasive penalties on electricity and to impose effective, undertakings which fail to comply with proportionate and dissuasive their obligations or to propose that a penalties on electricity undertakings competent court impose such penalties which fail to comply with their on them. To this end , regulatory obligations or to propose that a authorities should be able to request competent court impose such relevant information from electricity penalties on them. To this end, undertakings, make appropriate and regulatory authorities should be able sufficient investigations and settle to request relevant information from disputes. Energy regulators should also electricity undertakings, make be granted the power to decide, appropriate and sufficient

  irrespective of the application of investigations and settle disputes. Energy regulators should also be

ANNEX TREE.2.B EN

competition rules, on appropriate granted the power to decide, measures ensuring customer benefits irrespective of the application of through the promotion of effective competition rules, on appropriate competition necessary for the proper measures ensuring customer benefits functioning of the internal market in through the promotion of effective electricity. competition necessary for the proper functioning of the internal market in electricity.

• 83. 

  (62) Energy regulators should also (62) Energy regulators should also be granted the power to contribute to be granted the power to contribute to ensuring high standards of universal ensuring high standards of universal and public service in compliance with and public service in compliance

  market opening, to the protection of with market opening, to the vulnerable customers, and to the full protection of vulnerable customers, effectiveness of consumer protection and to the full effectiveness of measures. Those provisions should be consumer protection measures. Those without prejudice to both the provisions should be without Commission’s powers concerning the prejudice to both the Commission’s application of competition rules powers concerning the application of including the examination of mergers competition rules including the with a Union dimension, and the rules examination of mergers with a Union on the internal market such as the free dimension, and the rules on the movement of capital. The independent internal market such as the free body to which a party affected by the movement of capital. The decision of a national regulator has a independent body to which a party right to appeal could be a court or affected by the decision of a national other tribunal empowered to conduct a regulator has a right to appeal could judicial review. be a court or other tribunal empowered to conduct a judicial review.

ANNEX TREE.2.B EN

• 84. 

  (62a) The Electricity and Gas

  Directives do not deprive the government of the possibility of establishing and issuing its national energy policy. This means that, depending on the national constitution, it could be the government’s competency to determine the policy framework within which the regulatory authorities must operate, for instance concerning security of supply. However, general energy policy guidelines issued by the government must not impinge on the regulatory authority independence and autonomy.

• 85. 

  (63) Under [recast of Regulation

  714/2009 as proposed by (63) Under [recast of Regulation COM(2016)861 i/2], the Commission 714/2009 as proposed by may adopt guidelines or network codes COM(2016)861 i/2], the Commission to achieve the necessary degree of may adopt guidelines or network harmonisation. Such guidelines or codes to achieve the necessary network codes, which constitute degree of harmonisation. Such binding implementing measures, are, guidelines or network codes, which also with regard to certain provisions constitute binding implementing of this Directive, a useful tool which measures, are, also with regard to can be adapted quickly where certain provisions of this Directive, a

  necessary. useful tool which can be adapted quickly where necessary.

ANNEX TREE.2.B EN

• 86. 

  (64) Member States and the Energy

  Community Contracting Parties should (64) Member States and the Energy

  closely cooperate on all matters Community Contracting Parties

  concerning the development of an should closely cooperate on all

  integrated electricity trading region matters concerning the development

  and should take no measures that of an integrated electricity trading endanger the further integration of region and should take no measures electricity markets or security of that endanger the further integration supply of Member States and of electricity markets or security of

  Contracting Parties. supply of Member States and Contracting Parties.

• 87. 

  (65) This Directive should be read

  together with [recast of Regulation (65) This Directive should be read 714/2009 as proposed by together with [recast of Regulation COM(2016)861 i/2] which lays down 714/2009 as proposed by key principles of the new market COM(2016)861 i/2] which lays down design for electricity which will enable key principles of the new market better reward for flexibility, provide design for electricity which will adequate price signals and ensure the enable better reward for flexibility, development of functioning integrated provide adequate price signals and short-term markets. [recast of ensure the development of Regulation 714/2009 i as proposed by functioning integrated short-term COM(2016)861 i/2] also sets out new markets. [recast of Regulation rules in various areas including 714/2009 as proposed by capacity mechanisms and cooperation COM(2016)861 i/2] also sets out new between transmission system rules in various areas including

  operators. capacity mechanisms and cooperation between transmission

  system operators.

ANNEX TREE.2.B EN

• 88. 

  (66) Since the objective of this (66) Since the objective of this

  Directive, namely the creation of a Directive, namely the creation of a fully operational internal electricity fully operational internal electricity market, cannot be sufficiently achieved market, cannot be sufficiently by the Member States and can achieved by the Member States and therefore be better achieved at Union can therefore be better achieved at level, the Union may adopt measures, Union level, the Union may adopt in accordance with the principle of measures, in accordance with the subsidiarity as set out in Article 5 of principle of subsidiarity as set out in the Treaty on the European Union. In Article 5 of the Treaty on the accordance with the principle of European Union. In accordance with proportionality, as set out in that the principle of proportionality, as set Article, this Directive does not go out in that Article, this Directive does beyond what is necessary in order to not go beyond what is necessary in achieve that objective. order to achieve that objective.

• 89. 

  (67) This Directive respects the

  fundamental rights, and observes the (67) This Directive respects the principles, recognised in particular by fundamental rights, and observes the the Charter of Fundamental Rights of principles, recognised in particular

  the European Union. by the Charter of Fundamental Rights of the European Union.

• 90. 

  (68) In order to provide the minimum

  degree of harmonisation required to []

  achieve the aim of this Directive, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission to establish guidelines on the extent of the duties of the regulatory authorities to cooperate with each other and with the Agency for the Cooperation of Energy Regulators (the 'Agency') and setting out the details of the procedure. It is of particular importance that the Commission carry out appropriate

ANNEX TREE.2.B EN

consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 18 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of the delegated acts.

• 91. 

  (69) In order to ensure uniform AM 22 (69) In order to ensure uniform

  conditions for the implementation of (69) In order to ensure uniform conditions for the implementation of this Directive, implementing powers conditions for the implementation of this Directive, implementing powers should be conferred on the this Directive, implementing powers should be conferred on the Commission in order to determine a should be conferred on the Commission in order to determine common European data format and Commission in order to determine a interoperability for a common non-discriminatory and transparent common European data format and European data format and nonprocedures for accessing the data on non-discriminatory and transparent discriminatory and transparent metering, consumption data as well as procedures for accessing the data on procedures for accessing the data on data required for consumer switching. metering, consumption data as well metering, consumption data as well Those powers should be exercised in as data required for consumer as data required for consumer accordance with Regulation (EU) No switching. Those powers should be switching. Those powers should be 182/2011 of the European Parliament exercised in accordance with exercised in accordance with and of the Council 19 . Regulation (EU) No 182/2011 i of the Regulation (EU) No 182/2011 i of the

18 OJ L 123, 12.5.2016, p. 1.

19 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning

mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

ANNEX TREE.2.B EN

European Parliament and of the European Parliament and of the Council 38 . In order to ensure that Council 20 . such a common European data format supports marked-based competition and contributes to ensuring interoperability between energy services, the Commission may request if appropriate that data standards are drawn up by the relevant European standardisation organisations.

• 92. 

  (70) The obligation to transpose this

  Directive into national law should be (70) The obligation to transpose New compromise proposal: confined to those provisions which this Directive into national law represent a substantive amendment as should be confined to those Where the Commission has compared to the earlier Directive. The provisions which represent a granted a derogation pursuant to obligation to transpose the provisions substantive amendment as compared Article 66(2a) and 2b), or where a which are unchanged arises under the to the earlier Directive. The derogation is granted under

  earlier Directive. obligation to transpose the provisions Article 66(2), the derogation which are unchanged arises under the should also cover any provisions

  earlier Directive. in the Directive that is ancillary to or requires the prior enforcement of any of the provisions from

  which it has been granted a derogation.

• 93. 

  (71) In accordance with the Joint

  Political Declaration of 28 September (71) In accordance with the Joint 2011 of Member States and the Political Declaration of 28 September Commission on explanatory 2011 of Member States and the documents 21 , Member States have Commission on explanatory

20 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning

mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 21 OJ C 369, 17.12.2011, p. 14.

ANNEX TREE.2.B EN

undertaken to accompany, in justified documents 22 , Member States have cases, the notification of their undertaken to accompany, in justified transposition measures with one or cases, the notification of their more documents explaining the transposition measures with one or relationship between the components more documents explaining the of a directive and the corresponding relationship between the components parts of national transposition of a directive and the corresponding instruments. With regard to this parts of national transposition Directive, the legislator considers the instruments. With regard to this transmission of such documents to be Directive, the legislator considers the justified. transmission of such documents to be justified.

• 94. 

  (72) This Directive should be without

  prejudice to the obligations of the (72) This Directive should be Member States relating to the timewithout prejudice to the obligations limit for the transposition into national of the Member States relating to the law and the date of application of the time-limit for the transposition into

  Directive set out in Annex IV. national law and the date of application of the Directive set out in

  Annex IV.

• 95. 

  HAVE ADOPTED THIS HAVE ADOPTED THIS

  DIRECTIVE: DIRECTIVE:

22 OJ C 369, 17.12.2011, p. 14.

ANNEX TREE.2.B EN

• 96. 

  CHAPTER I

  SUBJECT MATTER AND DEFINITIONS 97. Article 1

  Subject matter 98. This Directive establishes common AM 23

  rules for the generation, transmission, This Directive establishes common This Directive establishes common

  Provisionally agreed in TM:

  distribution, storage and supply of rules for the generation, transmission, rules for the generation, transmission,

  (including AM 34, line 163):

  electricity, together with consumer distribution, storage and supply of distribution , storage and supply of

  This Directive establishes common

  protection provisions, with a view to electricity, together with consumer electricity, together with consumer

  rules for the generation,

  creating truly integrated competitive, protection provisions, with a view to protection provisions, with a view to

  transmission, distribution, storage

  consumer-centred and flexible creating truly integrated competitive, creating truly integrated competitive ,

  and supply of electricity, together

  electricity markets in the Union. Using consumer-centred and flexible consumer-centred and flexible, fair

  with consumer protection

  the advantages of an integrated market, electricity markets in the Union. and transparent electricity markets

  provisions, with a view to creating

  the Directive aims at ensuring Using the advantages of an integrated in the Union. Using the advantages

  truly integrated competitive,

  affordable energy prices for market, the Directive aims at of an integrated market, the Directive

consumer-centred, flexible, fair and

consumers, a high degree of security of ensuring affordable, transparent aims at ensuring affordable energy

transparent electricity markets in

supply and a smooth transition towards energy costs for consumers, a high prices for consumers, a high degree

the Union. Using the advantages of

a decarbonised energy system. It lays degree of security of supply and a of security of supply and a smooth

an integrated market, the Directive

down key rules relating to the smooth transition towards a transition towards a [] low-carbon

aims at ensuring affordable,

organisation and functioning of the decarbonised and sustainable energy energy system. It lays down key rules

transparent energy prices and costs

European electricity sector, in system. It lays down key rules relating to the organisation and

for consumers, a high degree of

particular rules on consumer relating to the organisation and functioning of the European

security of supply and a smooth

empowerment and protection, on open functioning of the European electricity sector, in particular rules

transition towards a sustainable

access to the integrated market, on electricity sector, in particular rules on consumer empowerment and

low-carbon energy system. It lays

third party access to transmission and on consumer empowerment and protection, on open access to the

down key rules relating to the

distribution infrastructure, unbundling protection, on open access to the integrated market, on third party

organisation and functioning of the

rules, and on independent national integrated market, on third party access to transmission and

European electricity sector, in

energy regulators. access to transmission and distribution infrastructure,

particular rules on consumer

distribution infrastructure, unbundling rules, and on independent

empowerment and protection, on open access to the integrated market,

unbundling rules, and on independent national energy regulators. on third party access to transmission

national energy regulators. and distribution infrastructure, unbundling rules, and on

independent national energy regulators. This Directive also sets out modes of cooperation among

ANNEX TREE.2.B EN

Member States, regulatory authorities and transmission system operators towards the creation of a fully interconnected internal electricity market that increases the integration of renewable electricity, the free competition and security of supply.

• 99. 

  Article 2

  Definitions 100. For the purposes of this Directive, the For the purposes of this Directive, No change

  following definitions apply: the following definitions apply:

• 101. 

  1. 'customer’ means a wholesale or 1. 'customer’ means a wholesale or No change final customer of electricity; final customer of electricity;

• 102. 

  2. 'wholesale customer' means a 2. 'wholesale customer' means a No change natural or legal person purchasing natural or legal person purchasing

  electricity for the purpose of resale electricity for the purpose of resale inside or outside the system where he inside or outside the system where he is established; is established;

• 103. 

  3. ‘final customer’ means a customer 3. ‘final customer’ means a customer No change purchasing electricity for his own use; purchasing electricity for his own

  use;

• 104. 

  4. 'household customer' means a 4. 'household customer' means a No change customer purchasing electricity for his customer purchasing electricity for

  own household consumption, his own household consumption, excluding commercial or professional excluding commercial or activities; professional activities;

• 105. 

  5. 'non-household customer' means a 5. 'non-household customer' means a No change natural or legal person purchasing natural or legal person purchasing

  electricity which is not for their own electricity which is not for their own household use and includes producers household use and includes industrial customers, small and producers industrial customers, small medium sized enterprises, businesses and medium sized enterprises, and wholesale customers; businesses and wholesale customers;

ANNEX TREE.2.B EN

• 106. 

  5a. 'microenterprise' means an Provisionally agreed in TM: enterprise which employs fewer 5a. 'microenterprise' means an than 10 persons and whose annual enterprise which employs fewer turnover and/or annual balance than 10 persons and whose annual sheet total does not exceed EUR 2 turnover and/or annual balance million; sheet total does not exceed EUR 2 million;

• 107. 

  5b. 'small enterprise' means an Provisionally agreed in TM: enterprise which employs fewer 5b. 'small enterprise' means an than 50 persons and whose annual enterprise which employs fewer turnover and/or annual balance than 50 persons and whose annual sheet total does not exceed EUR 10 turnover and/or annual balance million; sheet total does not exceed EUR 10 million;

• 108. 

  6. ‘active customer’ means a customer AM 24 New compromise proposal

  or a group of jointly acting customers 6. ‘active customer’ means a 6. ‘active customer’ means a final (the change to "flexibility" was made

  who consume, store or sell electricity final customer or a group of jointly customer or a group of jointly acting in order to include storage services

  generated on their premises, including acting final customers who consume, final customers who consume or besides demand response):

  through aggregators, or participate in store or sell electricity generated store [] electricity generated on the 6. ‘active customer’ means a final

  demand response or energy efficiency within their premises, including same site or sells self-generated customer or a group of jointly acting

  schemes provided that these activities through aggregators or suppliers or electricity [], provided that these final customers who consume or

  do not constitute their primary traders, or participate in demand activities do not constitute their

  commercial or professional activity; response or energy efficiency primary commercial or professional

  store electricity generated within

  schemes provided that these activities activity;

  their premises located within confined boundaries or where

  do not constitute their primary allowed by Member States, on commercial or professional activity; other premises, and may store or sell self-generated electricity or participate in flexibility demand response or energy efficiency schemes, provided that these activities do not constitute their primary commercial or professional activity;

ANNEX TREE.2.B EN

• 109. 

  6a. ‘electricity markets’ shall Provisionally agreed in TM:

  include over-the-counter markets 6a. ‘electricity markets’ shall and electricity exchanges for include over-the-counter markets trading energy, capacity, balancing and electricity exchanges for and ancillary services in all trading energy, capacity, timeframes, including forward, balancing and ancillary services in day-ahead and intra-day markets; all timeframes, including forward, day-ahead and intra-day markets;

• 110. 

  6b 'market participant' means a Provisionally agreed in TM:

  natural or legal person buying, 6b 'market participant' means a selling or generating electricity, natural or legal person buying, engaging in aggregation or storage selling or generating electricity, services, including the placing of engaging in aggregation or storage orders to trade, in one or more services, including the placing of electricity markets including orders to trade, in one or more balancing energy markets; electricity markets including balancing energy markets;

• 111. 

  7. 'local energy community' means: an AM 25 Provisionally agreed:

  association, a cooperative, a 7. 'local energy community' 7. '[] energy community' means: [] a 7. ' citizens energy community' partnership, a non-profit organisation means an association, a cooperative, legal entity which is based on means: a legal entity which is based or other legal entity which is a partnership, a non-profit voluntary and open participation, on voluntary and open effectively controlled by local organisation, SME or other legal effectively controlled by [] participation, effectively controlled shareholders or members, generally entity which is based on voluntary shareholders or members who are by shareholders or members who value rather than profit-driven, and open participation and is natural persons, local authorities, are natural persons, local involved in distributed generation and effectively controlled by local including municipalities, or small in performing activities of a shareholders or members, the enterprises and microenterprises

  authorities, including

  distribution system operator, supplier predominant aim of which is to []. The primary purpose of an

  municipalities, or small

  or aggregator at local level, including provide local environmental, energy community is to provide

  enterprises and microenterprises.

  across borders; economic or social community environmental, economic or social

  The primary purpose of a citizens

benefits for its members or the local community benefits for its

energy community is to provide

area or areas where it operates members or the local areas where

environmental, economic or social

rather than where it generates it operates rather than financial

community benefits for its

profits, and which is involved in profits. An energy community can

members or the local areas where

be engaged [] in [] electricity it operates rather than financial

ANNEX TREE.2.B EN

activities such as distributed generation, distribution and supply, profits. A citizens energy generation, storage, supply, consumption, aggregation, storage community can be engaged in provision of energy efficiency or energy efficiency services, electricity generation, distribution services, aggregation, electrogeneration of renewable electricity and supply, consumption, mobility and distribution system [] or provide other energy services aggregation, storage or energy operation, including across borders; to its shareholders or members []; efficiency services, generation of renewable electricity, charging stations for electric vehicles or provide other energy services to its shareholders or members;

• 112. 

  8. 'supply' means the sale, including

  resale, of electricity to customers; 8. 'supply' means the sale, including

  No change

  resale, of electricity to customers;

• 113. 

  9. ‘electricity supply contract’ means a No change

  contract for the supply of electricity, 9. ‘electricity supply contract’ means but does not include an electricity a contract for the supply of

  derivative; electricity, but does not include an electricity derivative;

• 114. 

  10. ‘electricity derivative’ means a No change

  financial instrument specified in 10. ‘electricity derivative’ means a points 5, 6 or 7 of Section C of financial instrument specified in Annex I to Directive 2004/39/EC i of points 5, 6 or 7 of Section C of the European Parliament and of the Annex I to Directive 2004/39/EC i of

  Council

  23 , where that instrument the European Parliament and of the

  relates to electricity; Council

  24 , where that instrument relates to electricity;

• 115. 

  11. ‘dynamic electricity price contract’

  means an electricity supply contract 11. ‘dynamic electricity price

  Provisionally agreed in TM:

  between a supplier and a final contract’ means an electricity supply 11. ‘dynamic electricity price customer that reflects the price at the contract between a supplier and a contract’ means an electricity supply spot market, including at the day ahead final customer that reflects the price contract between a supplier and a

  market at intervals at least equal to the variation at the spot markets final customer that reflects the price including day ahead and intraday variation at the spot markets

23 Directive 2004/39/EC i of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (OJ L 145, 30.4.2004, p. 1).

24 Directive 2004/39/EC i of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (OJ L 145, 30.4.2004, p. 1).

ANNEX TREE.2.B EN

market settlement frequency; markets, [] at intervals at least equal including day ahead and intraday to the market settlement frequency; markets, at intervals at least equal to the market settlement frequency;

• 116. 

  12. 'contract termination fee‘ means

  any charge or penalty imposed on 12. 'contract termination fee‘ means

  Provisionally agreed in TM:

  customers by suppliers or aggregators any charge or penalty imposed on 12. 'contract termination fee‘ means for withdrawing from an electricity customers by suppliers or [] market any charge or penalty imposed on

supply or service contract; participants engaged in customers by suppliers or market aggregation for withdrawing from participants engaged in

an electricity supply or service aggregation for withdrawing from contract; an electricity supply or service contract;

• 117. 

  13. 'switching related fee' means any

  charge or penalty imposed on 13. 'switching related fee' means any

  Provisionally agreed in TM: 13. 'switching related fee' means any

  customers by suppliers or system charge or penalty imposed on charge or penalty imposed on operators directly or indirectly for customers by suppliers or market customers by suppliers or market changing suppliers, including contract participants engaged in participants engaged in

termination fees; aggregation or system operators directly or indirectly for changing aggregation or system operators

suppliers or market participants directly or indirectly for changing engaged in aggregation, including suppliers or market participants

contract termination fees; engaged in aggregation, including contract termination fees;

• 118. 

  14. ‘aggregator’ means a market 14. [] ‘aggregation’ means a Provisionally agreed in TM: participant that combines multiple function taken by a natural or legal 14. ‘aggregation’ means a function customer loads or generated electricity person [] that combines multiple taken by a natural or legal person for sale, for purchase or auction in any customer loads or generated that combines multiple customer organised energy market; electricity for sale, for purchase or loads or generated electricity for auction in any [] electricity market; sale, for purchase or auction in any [] electricity market;

• 119. 

  15. 'independent aggregator' means an AM 26

  aggregator that is not affiliated to a 15. 'independent aggregator' 15. 'independent aggregator' means [] Provisionally agreed in TM: supplier or any other market means an aggregator that is not a market participant that performs 15. 'independent aggregator' means a participant; affiliated to the supplier of the aggregation that is not affiliated to customer; its customer's [] supplier [];

  market participant that performs aggregation that is not affiliated to its customer's supplier;

ANNEX TREE.2.B EN

• 120. 

  16. 'demand response' means the No change

  change of electricity load by final 16. 'demand response' means the

  customers from their normal or current change of electricity load by final

  consumption patterns in response to customers from their normal or

  market signals, including time-variable current consumption patterns in

  electricity prices or incentive response to market signals, including payments, or in response to acceptance time-variable electricity prices or of the final customer's bid, alone or incentive payments, or in response to through aggregation, to sell demand acceptance of the final customer's reduction or increase at a price in bid, alone or through aggregation, to organised markets as defined in sell demand reduction or increase at a Commission Implementing Regulation price in organised markets as defined

  (EU) No 1348/2014 25 ; in Commission Implementing Regulation (EU) No 1348/2014 i 26 ;

• 121. 

  16a. 'billing information' means all Provisionally agreed in TM:

  the information provided in final customers' bills, apart from a 16a. 'billing information' means request for payment; all the information provided in final customers' bills, apart from a request for payment;

• 122. 

  17. ‘conventional meter’ means an No change

  analogue meter or an electronic meter 17. ‘conventional meter’ means an with no capability to both transmit and analogue meter or an electronic

  receive data; meter with no capability to both transmit and receive data;

25 Commission Implementing Regulation (EU) No 1348/2014 i of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 i of the European Parliament and the Council on wholesale energy market integrity and transparency (OJ L 363, 18.12.2014, p. 121).

26 Commission Implementing Regulation (EU) No 1348/2014 i 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).

ANNEX TREE.2.B EN

• 123. 

  18. ‘smart metering system’ means an

electronic system that can measure 18. ‘smart metering system’ means Provisionally agreed in TM:

energy consumption, providing more an electronic system that can information than a conventional meter, measure energy consumption or the 18. ‘smart metering system’ means and can transmit and receive data for amount of electricity put into the an electronic system that can information, monitoring and control grid, providing more information measure energy consumption or the purposes, using a form of electronic than a conventional meter, and can amount of electricity put into the

communication; transmit and receive data for grid, providing more information information, monitoring and control than a conventional meter, and can

purposes, using a form of electronic transmit and receive data for communication; information, monitoring and control purposes, using a form of electronic communication;

• 124. 

  19. ‘interoperability’ means, in the

  context of smart metering, the ability 19. ‘interoperability’ means, in the

  No change

  of two or more energy or context of smart metering, the ability communication networks, systems, of two or more energy or devices, applications or components to communication networks, systems, interwork, to exchange and use devices, applications or components information in order to perform to interwork, to exchange and use

  required functions; information in order to perform required functions;

• 125. 

  20. ‘near-real time’ means, in the

  context of smart metering, the time, 20. ‘near-real time’ means, in the Provisionally agreed: usually down to seconds, that elapses context of smart metering, [] a short between data recording and their time period, usually down to seconds 20. ‘near-real time’ means, in the automated processing and transmission or up to the imbalance settlement context of smart metering, a short

for use or information purposes; timeframe in the national market time period, usually down to []; seconds or up to the imbalance

settlement timeframe in the national market;

• 126. 

  21. ‘best available techniques’ means,

  in the context of data protection and 21. ‘best available techniques’

  No change

  security in a smart metering means, in the context of data environment, the most effective and protection and security in a smart

ANNEX TREE.2.B EN

advanced stage in the development of metering environment, the most activities and their methods of effective and advanced stage in the operation, which indicates the practical development of activities and their suitability of particular techniques, methods of operation, which designed to prevent or mitigate risks indicates the practical suitability of on privacy, personal data and security, particular techniques, designed to for providing in principle the basis for prevent or mitigate risks on privacy, complying with the Union data personal data and security, for protection framework; providing in principle the basis for complying with the Union data protection framework;

• 127. 

  22. 'distribution' means the transport of 22. 'distribution' means the transport No change electricity on high-voltage, mediumof electricity on high-voltage,

  voltage and low-voltage distribution medium-voltage and low-voltage systems with a view to its delivery to distribution systems with a view to customers, but does not include its delivery to customers, but does supply; not include supply;

• 128. 

  23. 'distribution system operator' 23. 'distribution system operator' No change means a natural or legal person means a natural or legal person

  responsible for operating, ensuring the responsible for operating, ensuring maintenance of and, if necessary, the maintenance of and, if necessary, developing the distribution system in a developing the distribution system in given area and, where applicable, its a given area and, where applicable, interconnections with other systems its interconnections with other and for ensuring the long-term ability systems and for ensuring the longof the system to meet reasonable term ability of the system to meet demands for the distribution of reasonable demands for the electricity; distribution of electricity;

• 129. 

  24. ‘energy efficiency' means the ratio

  of output of performance, service, 24. ‘energy efficiency' means the

  No change

  goods or energy, to input of energy ; ratio of output of performance, service, goods or energy, to input of

  energy;

ANNEX TREE.2.B EN

• 130. 

  25. ‘energy from renewable sources’

means energy from renewable non 25. ‘energy from renewable sources’ Provisionally agreed in TM (aligned

fossil sources, in particular wind, solar means energy from renewable nonto the RED II):

(solar thermal and solar photovoltaic), fossil sources , in particular wind,

geothermal energy, ambient heat, solar (solar thermal and solar 25. ‘energy from renewable hydropower and tide, ocean, wave photovoltaic), geothermal energy, sources’ or ‘renewable energy’ energy , and combustible renewables: ambient heat, hydropower and tide, means energy from renewable biofuels, bioliquids, biogas, solid ocean , wave, and other ocean non-fossil sources, namely wind, biofuels and combustible wastes of energy, hydropower and solar (solar thermal and solar

renewable origin; combustible renewables: biofuels, photovoltaic) and geothermal bioliquids, biogas, solid biofuels and energy, ambient energy, tide, wave

combustible wastes of renewable and other ocean energy, origin; hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas;

• 131. 

  26. ‘distributed generation’ means No change

  generation plants connected to the 26. ‘distributed generation’ means

  distribution system; generation plants connected to the distribution system;

• 132. 

  27. 'recharging point' means an No change

  interface that is capable of charging 27. 'recharging point' means an one electric vehicle at a time or interface that is capable of charging exchanging a battery of one electric one electric vehicle at a time or

  vehicle at a time; exchanging a battery of one electric vehicle at a time;

• 133. 

  28. 'transmission' means the transport

  of electricity on the extra high-voltage 28. 'transmission' means the transport

  No change

  and high-voltage interconnected of electricity on the extra highsystem with a view to its delivery to voltage and high-voltage final customers or to distributors, but interconnected system with a view to

  does not include supply; its delivery to final customers or to distributors, but does not include

  supply;

ANNEX TREE.2.B EN

• 134. 

  29. 'transmission system operator' No change

  means a natural or legal person 29. 'transmission system operator' responsible for operating, ensuring the means a natural or legal person maintenance of and, if necessary, responsible for operating, ensuring developing the transmission system in the maintenance of and, if necessary, a given area and, where applicable, its developing the transmission system interconnections with other systems, in a given area and, where applicable, and for ensuring the long-term ability its interconnections with other of the system to meet reasonable systems, and for ensuring the longdemands for the transmission of term ability of the system to meet

  electricity; reasonable demands for the transmission of electricity;

• 135. 

  30. 'system user' means a natural or No change

  legal person supplying to, or being 30. 'system user' means a natural or supplied by, a transmission or legal person supplying to, or being

  distribution system; supplied by, a transmission or distribution system;

• 136. 

  31. 'generation' means the production No change

  of electricity; 31. 'generation' means the production of electricity;

• 137. 

  32. 'producer' means a natural or legal

  person generating electricity; 32. 'producer' means a natural or

  No change

  legal person generating electricity;

• 138. 

  33. 'interconnector' means a

transmission line which crosses or [ 33. 'interconnector' means an Council compromise proposal:

spans a border between bidding zones, equipment used to link electricity

between Member States or, up to the systems [] which crosses or spans a 33. 'interconnector' means border of EU jurisdiction, between border between bidding zones or equipment used to link electricity

Member States and third countries ; between Member States or, up to the systems; border of [] Union territorial

jurisdiction, between Member States

and third countries; ] 27

27 This definition is not part of the general approach.

ANNEX TREE.2.B EN

• 139. 

  34. ‘interconnected system’ means a No change

  number of transmission and 34. ‘interconnected system’ means a distribution systems linked together by number of transmission and

  means of one or more interconnectors; distribution systems linked together by means of one or more

  interconnectors;

• 140. 

  35. ‘direct line’ means either an

  electricity line linking an isolated 35. ‘direct line’ means either an

  No change

  generation site with an isolated electricity line linking an isolated customer or an electricity line linking generation site with an isolated an electricity producer and an customer or an electricity line linking electricity supply undertaking to an electricity producer and an supply directly their own premises, electricity supply undertaking to

  subsidiaries and customers; supply directly their own premises, subsidiaries and customers;

• 141. 

  36. ‘small isolated system’ means any

  system with consumption of less than 36. ‘small isolated system’ means

  No change

  3 000 GWh in the year 1996, where any system with consumption of less less than 5 % of annual consumption is than 3 000 GWh in the year 1996, obtained through interconnection with where less than 5 % of annual

  other systems; consumption is obtained through interconnection with other systems;

ANNEX TREE.2.B EN

• 142. 

  36a. 'small connected system’ Provisionally agreed in TM:

  means any system with consumption of less than 3 000 36a. 'small connected system’ GWh in the year 1996, where more means any system with than 5 % of annual consumption is consumption of less than 3 000 obtained through interconnection GWh in the year 1996, where with other systems; more than 5 % of annual consumption is obtained through interconnection with other systems;

• 143. 

  37. ‘ancillary service’ means a service No change

  necessary for the operation of a 37. ‘ancillary service’ means a transmission or distribution system service necessary for the operation of including balancing and non-frequency a transmission or distribution system ancillary services but not congestion including balancing and nonmanagement;

  frequency ancillary services but not congestion management;

• 144. 

  38. 'non-frequency ancillary service' AM 27 Provisionally agreed (specification

  means a service used by a transmission 38. 'non-frequency ancillary 38. 'non-frequency ancillary service' of DSO's tasks set out in Article or distribution system operator for service' means a service used by a means a service used by a 31(5a), line 449): steady state voltage control, fast transmission or distribution system transmission [] system operator for 38. 'non-frequency ancillary reactive current injections, inertia and operator for steady state voltage steady state voltage control, fast service' means a service used by a black start capability; control, fast reactive current reactive current injections, inertia for transmission or distribution system injections, inertia for local grid grid stability, short circuit current, stability, short-circuit current, and [] black start capability and island

  operator for steady state voltage

  black start capability and island operation capability or a service

  control, fast reactive current

operation capability; used by a distribution system

injections, inertia for local grid

operator, including storage facility, stability, short-circuit current, and for steady state voltage control, black start capability and island fast reactive current injections and operation capability;

short circuit current;

ANNEX TREE.2.B EN

• 145. 

  39. 'regional operational centre' means AM 28

  the regional operational centre as 39. 'regional coordination centre' 39. [] Regional Security Provisionally agreed in TM: defined in Article 32 of the [recast of means the regional coordination Coordinators means the [] Regional Regulation 714/2009 i as proposed by centre as established pursuant to Security Coordinators pursuant to

  • 39. 

    'regional coordination centre'

  COM(2016)861 i/2]. Article 32 of Regulation (EU) … [] Article 32 of the [recast of

  means the regional coordination

  [recast of Regulation 714/2009 i as Regulation 714/2009 i as proposed by

  centre as established pursuant to

  proposed by COM(2016)861 i/2]. COM(2016)861 i/2];

  Article 32 of Regulation (EU) … [recast of Regulation 714/2009 i as

  (This amendment applies throughout proposed by COM(2016)861 i/2]. the text. Adopting it will necessitate corresponding changes throughout.)

• 146. 

  AM 29

39a. (new) ‘integral part of the 39a. ‘fully integrated network

Council compromise proposal:

transmission system’ means network components’ means static network

39a. ‘fully integrated network

components that are integrated in components that are integrated in

components’ means network

the transmission or distribution the transmission or distribution

components that are integrated in

system, including storage facilities, system, including storage facility,

the transmission or distribution system, including storage facility,

and are used for the sole purpose of and are used for the only purpose and are used for the only purpose ensuring a secure and reliable of ensuring a secure and reliable of ensuring a secure and reliable operation of the transmission or operation of the transmission or operation of the transmission or distribution system, however not for distribution system but not for distribution system but not for balancing or congestion balancing nor congestion management, except for the reactive management;

balancing nor congestion management;

instantaneous restoration of network security in case of network contingencies;

• 147. 

  40. 'integrated electricity undertaking'

  means a vertically or horizontally 40. 'integrated electricity

  No change

  integrated undertaking; undertaking' means a vertically or horizontally integrated undertaking;

ANNEX TREE.2.B EN

• 148. 

  41. 'vertically integrated undertaking' No change

  means an electricity undertaking or a 41. 'vertically integrated undertaking' group of electricity undertakings means an electricity undertaking or a where the same person or the same group of electricity undertakings persons are entitled, directly or where the same person or the same indirectly, to exercise control, and persons are entitled, directly or where the undertaking or group of indirectly, to exercise control, and undertakings perform at least one of where the undertaking or group of the functions of transmission or undertakings perform at least one of distribution, and at least one of the the functions of transmission or functions of generation or supply of distribution, and at least one of the

  electricity; functions of generation or supply of electricity;

• 149. 

  42. 'related undertaking' means

  affiliated undertakings, within the 42. 'related undertaking' means

  No change

  meaning of Article 2(12) of Directive affiliated undertakings, within the 2013/34/EU of the European meaning of Article 2(12) of Directive Parliament and of the Council 28 , and 2013/34/EU of the European undertakings which belong to the same Parliament and of the Council

  29 and

  shareholders; undertakings which belong to the same shareholders;

• 150. 

  43. 'horizontally integrated

  undertaking' means an undertaking 43. 'horizontally integrated

  No change

  performing at least one of the undertaking' means an undertaking functions of generation for sale, or performing at least one of the transmission, or distribution, or supply functions of generation for sale, or of electricity, and another nontransmission, or distribution, or

  electricity activity; supply of electricity, and another non-electricity activity;

28 Directive 2013/34 i/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 i of the European Parliament and of the Council and repealing Council Directives 78/660/EEC i and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

29 Directive 2013/34 i/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 i of the European Parliament and of the Council and repealing Council Directives 78/660/EEC i and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

ANNEX TREE.2.B EN

• 151. 

  44. 'control' means rights, contracts or No change

  any other means which, either 44. 'control' means rights, contracts separately or in combination and or any other means which, either having regard to the considerations of separately or in combination and fact or law involved, confer the having regard to the considerations possibility of exercising decisive of fact or law involved, confer the influence on an undertaking, in possibility of exercising decisive

  particular by: influence on an undertaking, in particular by:

• 152. 

  (a) ownership or the right to use all (a) ownership or the right to use No change or part of the assets of an undertaking; all or part of the assets of an

  undertaking;

• 153. 

  (b) rights or contracts which confer (b) rights or contracts which No change decisive influence on the composition, confer decisive influence on the

  voting or decisions of the organs of an composition, voting or decisions of undertaking; the organs of an undertaking;

• 154. 

  45. 'electricity undertaking' means any

  natural or legal person carrying out at 45. 'electricity undertaking' means Provisionally agreed in TM: least one of the following functions: any natural or legal person carrying

  generation, transmission, distribution, out at least one of the following 45. 'electricity undertaking' means supply, or purchase of electricity, functions: generation, transmission, any natural or legal person carrying which is responsible for the distribution, aggregation, demand out at least one of the following commercial, technical or maintenance response, storage, supply, or functions: generation, transmission, tasks related to those functions, but purchase of electricity, which is distribution, aggregation, demand

  does not include final customers; responsible for the commercial, response, energy storage, supply, technical or maintenance tasks or purchase of electricity, which is

  related to those functions, but does responsible for the commercial, not include final customers; technical or maintenance tasks related to those functions, but does not include final customers;

• 155. 

  46. ‘security’ means both security of 46. ‘security’ means both security of No change supply and provision of electricity, and supply and provision of electricity,

  technical safety; and technical safety;

ANNEX TREE.2.B EN

• 156. 

  47. 'energy storage' means, in the AM 30

  electricity system, deferring an amount 47. 'energy storage' means, in the 47. 'energy storage' means, in the Provisionally agreed in TM: of the electricity that was generated to electricity system, deferring the use electricity system, [] the conversion 47. 'energy storage' means, in the

the moment of use, either as final of electricity to a later moment than of an amount of the electricity that electricity system, deferring the

energy or converted into another when it was generated or the was generated [] into a form of final use of electricity to a later energy carrier. conversion of electrical energy into energy which can be stored, the moment than when it was generated a form of energy which can be storing of that energy, and the stored, the storing of that energy, subsequent direct use or

or the conversion of electrical

and the subsequent reconversion of reconversion of that energy back

energy into a form of energy which

that energy back into electrical into electrical energy or into

can be stored, the storing of that

energy or another energy carrier. another energy carrier and use of

energy, and the subsequent

that reconverted energy at a later reconversion of that energy back

moment than it was generated; into electrical energy or direct use as another energy carrier.

• 157. 

  47a. ‘energy storage facility’ in the Provisionally agreed in TM:

  electricity system means a facility

where energy storage occurs. 47a. ‘energy storage facility’ in the electricity system means a facility

where energy storage occurs.

ANNEX TREE.2.B EN

• 158. 

  CHAPTER II

  GENERAL RULES FOR THE ORGANISATION OF THE SECTOR

• 159. 

  Article 3

  Competitive, consumer-centred, flexible and non-discriminatory electricity market 160. 1. Member States shall ensure that AM 31 Provisionally agreed:

  their national legislation does not 1. Member States shall ensure 1. Member States shall ensure 1. Member States shall ensure unduly hamper cross-border flows of that their national legislation does not that their national legislation does not that their national legislation does

  electricity, consumer participation unduly hamper cross-border trade unduly hamper cross-border [] trade

including through demand–side and flows of electricity, consumer of electricity, consumer participation not unduly hamper cross-border

response, investments into flexible participation including through including through demand–side trade of electricity, consumer

energy generation, energy storage, the demand–side response, investments response, investments into [] energy participation including through

deployment of electro-mobility or new into flexible energy generation, generation, energy storage, the demand–side response, investments

interconnectors, and that electricity energy storage, the deployment of deployment of electro-mobility or into in particular variable and

prices reflect actual demand and electro-mobility or new new interconnectors between flexible energy generation, energy

supply. interconnectors, and that electricity Member States, and that electricity storage, the deployment of electroprices

reflect actual demand and prices reflect actual demand and mobility or new interconnectors

supply. supply. Any public intervention in between Member States, and that

electricity prices shall be subject to electricity prices reflect actual

conditions in Article 5. demand and supply.

• 161. 

  AM 32

  1a. (new) Member States shall 1a. When developing new Provisionally agreed (text included ensure that their national legislation interconnectors, Member States in para.2a, line 165)

  ensures an equal level-playing field shall take into account the and does not discriminate against electricity interconnection targets. Council text of para.1a to be any market participant, including discussed in conjunction with those from other Member States. interconnectors.

• 162. 

  AM 33 Provisionally agreed (text included 1b. (new) Without prejudice to the in paras.2 and 2b, lines 164 and

  competences in relation to third 166)

  countries, Members States shall ensure that no undue barriers exist within the internal electricity market as regards market entry, operation and exit. Market

ANNEX TREE.2.B EN

participants from third countries shall comply with applicable Union and Member States' laws, including those concerning environmental and safety policy.

• 163. 

  AM 34 Provisionally agreed (included in

  1c. (new) This Directive also sets out Article 1, line 98) means of cooperation among Member States, regulatory authorities and transmission system operators towards the creation of a fully interconnected internal market that increases the integration of renewable electricity, the mechanisms of solidarity among Member States, the free competition and the security of supply.

• 164. 

  2. Members States shall ensure that AM 35 2. Members States shall ensure

  no undue barriers exist for market 2. Members States shall ensure that no undue barriers exist within Provisionally agreed (however entry and market exit of electricity that no undue barriers exist for the internal electricity market as second part of the paragraph moved generation and electricity supply market entry and market exit of regards [] market entry, operation to new para.2b, line 166):

  undertakings. electricity generation, energy and [] exit [], without prejudice to 2. Members States shall ensure storage, demand-response and those competences which Member that no undue barriers exist within electricity supply undertakings. States retain in relation to third the internal electricity market as countries. Market participants regards market entry, operation

  from third countries, operating and exit, without prejudice to those

  within the internal electricity competences which Member

  market shall comply with States retain in relation to third

  applicable Union and Member countries.

  States' laws, including those

  concerning environmental and

  safety policy.

• 165. 

  2a. Member States shall ensure Provisionally agreed:

  that electricity undertakings are

  subject to transparent, 2a. Member States shall ensure proportionate and nona level-playing field where discriminatory rules, fees and electricity undertakings are

ANNEX TREE.2.B EN

treatment, in particular in the subject to transparent, fields of balancing responsibility, proportionate and nonaccess to wholesale markets, access discriminatory rules, fees and to data, customer switching and treatment, in particular in the billing and, where applicable, in fields of balancing responsibility, the Member States licensing. access to wholesale markets, access to data, customer switching and billing and, where applicable, in the Member States licensing.

• 166. 

  Provisionally agreed:

  2b. Market participants from third countries, operating within the internal electricity market shall comply with applicable Union and Member States' laws, including those concerning environmental and safety policy.

• 167. 

  Article 4

  Free choice of electricity supplier 168. Member States shall ensure that all AM 36 Member States shall ensure that all Provisionally agreed in TM:

  customers are free to purchase Member States shall ensure that all customers are free to purchase Member States shall ensure that all electricity from the supplier of their customers are free to purchase electricity from the supplier of their customers are free to purchase choice. electricity from the producer or choice. electricity from the supplier of their supplier of their choice and are free choice and are free to have more to contract simultaneously with than one supply contract at the several suppliers. same time provided that the required connection and metering points are established.

• 169. 

  Article 5

  Market based supply prices 170. 1. Electricity suppliers shall be free

  to determine the price at which they 1. Electricity suppliers shall be supply electricity to customers. free to determine the price at which Member States shall take appropriate they supply electricity to customers.

  actions to ensure effective competition Member States shall take appropriate actions to ensure effective

ANNEX TREE.2.B EN

between electricity suppliers. competition between electricity suppliers.

• 171. 

  2. Member States shall ensure the AM 37

  protection of energy poor or vulnerable 2. Member States may ensure the 2. Member States shall ensure the customers in a targeted manner by protection of energy poor or protection of energy poor or other means than public interventions vulnerable household customers in a vulnerable customers pursuant to in the price-setting for the supply of targeted manner by social policy or Article 28 [] by other means than electricity. other means than public interventions public interventions in the pricein the price-setting for the supply of setting for the supply of electricity.

  electricity. 172. 3. By way of derogation from

  paragraphs 1 and 2, Member States 3. By way of derogation from

  New compromise proposal:

  which apply public interventions in paragraphs 1 and 2, Member States []

  • 3. 

    By way of derogation from

  price setting for the supply of may apply public interventions in

paragraphs 1 and 2, Member States

electricity for energy poor or price setting for the supply of

may apply public interventions in

vulnerable household customers at the electricity subject to the conditions

price setting for the supply of

[OP: please insert the date of entry into in paragraphs 3a and 3b [].

electricity for energy poor or vulnerable household customers.

force of this Directive] may continue Member States which apply public to apply such public interventions interventions in price setting for the until [OP: insert the date – five years supply of electricity for other from the entry into force of this customers may continue to apply

Directive]. Such public interventions

shall pursue a general economic such public interventions. interest, be clearly defined, until [OP: insert the date – ten transparent, non-discriminatory, years from the entry into force of verifiable and guarantee equal access this Directive]. for Union electricity companies to Public interventions shall be customers. The interventions shall not subject to the conditions in go beyond what is necessary to paragraphs 3a and 3b.

achieve the general economic interest

which they pursue, be limited in time (3-a) By end of 2022 the and proportionate as regards their Commission shall present a report

beneficiaries. to the European Parliament and the Council assessing the public

interventions of Member States in

ANNEX TREE.2.B EN

price setting for the supply of electricity to households, and, if appropriate, present legislative and non-legislative proposals addressing the functioning of the internal market as well as measures to combat energy poverty.

• 173. 

  3a. [] Public interventions Maintain Council GA pursuant to paragraph 3 shall:

• 174. 

  (a) pursue a general economic interest;

• 175. 

  (b) be clearly defined, transparent, non-discriminatory and verifiable [];

• 176. 

  (c) guarantee equal access for Union electricity companies to customers. The interventions shall not go

  beyond what is necessary to achieve the general economic interest which they pursue,

• 177. 

  (d) be limited in time and proportionate as regards their beneficiaries.

• 178. 

  3b. Public interventions Maintain Council GA pursuant to paragraph 3 shall:

• 179. 

  (-a) avoid influencing the wholesale electricity market;

• 180. 

  (a) not result in additional costs for market participants in a

  discriminatory way;

• 181. 

  (b) not lead to direct crosssubsidisation between customers supplied at free market prices and those supplied at regulated supply prices;

ANNEX TREE.2.B EN

• 182. 

  (c) ensure that all beneficiaries of such public intervention have the possibility to choose competitive market offers and are directly

  informed of the availability of offers and savings on the competitive market, in particular dynamic electricity price contracts, at least every quarter and that they are provided with assistance to switch to a market based offer;

• 183. 

  (d) ensure that, pursuant to Article

  19 and 21, all beneficiaries of such public interventions are entitled to and are offered to have smart meters being installed at no extra costs for these customers and are directly informed of the possibility to install smart meters and are provided with necessary assistance.

• 184. 

  3c. By way of derogation from Maintain Council GA paragraph 3b, Member States

  which apply public interventions in price setting for the supply of electricity to households as part of the support programme [under the European Stability Mechanism], may continue to apply such public interventions subject to the terms stipulated in that support programme and the implementing documents.

• 185. 

  4. After[OP – insert the date – five AM 38

  years from the entry into force of this 4. Between [OP – insert the date []

  Maintain Council GA

  Directive], Member States may still – five years from the entry into force apply public interventions in the priceof this Directive] and [OP – insert

ANNEX TREE.2.B EN

setting for the supply of electricity for the date – ten years from the entry vulnerable household customers in so into force of this Directive], Member far as it is strictly necessary for reasons States may still apply public of extreme urgency. Such interventions interventions in the price-setting for shall comply with the conditions set the supply of electricity for out in paragraph 3. vulnerable household customers. Such interventions shall comply with all the following conditions: (a) they shall not go beyond what is necessary to achieve the general economic interest which they pursue;

(b) they shall be limited in time;

(c) they shall be proportionate as regards their beneficiaries;

(d) they shall be limited to energy poor and vulnerable customers;

(e) they shall not impede market entry by new participants;

(f) they shall not negatively impact the wholesale electricity market;

(g) they shall not result in additional costs for market participants in a discriminatory way; and

(h) all beneficiaries of such public intervention shall have the possibility to choose competitive

ANNEX TREE.2.B EN

market offers and shall be directly informed of the availability of offers and savings on the competitive market, in particular dynamic electricity price contracts, at least every quarter and they shall be provided with assistance to switch to a market based offer.

• 186. 

  Member States shall notify the

  measures taken in accordance with the 4. [] Member States shall notify

  Maintain Council GA

  first subparagraph to the Commission the measures taken in accordance within one month after adoption and with paragraph 3 [] to the may apply them immediately. The Commission within one month after notification shall be accompanied by adoption and may apply them an explanation why other instruments immediately. The notification shall could not sufficiently address the be accompanied by an explanation situation and how the beneficiaries and why [] other instruments could not the duration of the measure have been sufficiently address the situation and determined. The notification shall be how the beneficiaries and the considered as complete if, within two duration of the measure have been months from its receipt, or from the determined. []

  receipt of any additional information requested, the Commission does not request any further information.

• 187. 

  The Commission may take a decision

  asking the national authorities to []

  Maintain Council GA

  amend or withdraw the measures within two months from receipt of a complete notification where it considers that the requirements set out in the first subparagraph are not fulfilled. The decision-making period can be extended with the consent of both the Commission and the Member State concerned.

ANNEX TREE.2.B EN

• 188. 

  The public intervention applied on the

  basis of this paragraph shall be deemed []

  Maintain Council GA

  valid as long as the Commission has not taken a decision asking the national authorities to amend or withdraw the measure.

• 189. 

  Article 6

  Third-party access 190. 1. Member States shall ensure the

  implementation of a system of third 1. Member States shall ensure the No change. party access to the transmission and implementation of a system of third distribution systems based on party access to the transmission and published tariffs, applicable to all distribution systems based on customers and applied objectively and published tariffs, applicable to all without discrimination between system customers and applied objectively users. Member States shall ensure that and without discrimination between those tariffs, or the methodologies system users. Member States shall underlying their calculation, are ensure that those tariffs, or the approved prior to their entry into force methodologies underlying their in accordance with Article 59 and that calculation, are approved prior to those tariffs, and the methodologies — their entry into force in accordance where only methodologies are with Article 59 and that those tariffs, approved — are published prior to and the methodologies — where only

  their entry into force. methodologies are approved — are published prior to their entry into

  force.

• 191. 

  2. The transmission or distribution 2. The transmission or No change system operator may refuse access distribution system operator may

  where it lacks the necessary capacity. refuse access where it lacks the Duly substantiated reasons shall be necessary capacity. Duly given for such refusal, in particular substantiated reasons shall be given having regard to Article 9, and based for such refusal, in particular having on objective and technically and regard to Article 9, and based on economically justified criteria. objective and technically and

ANNEX TREE.2.B EN

Member States or, where Member economically justified criteria. States have so provided, the regulatory Member States or, where Member authorities shall ensure that those States have so provided, the criteria are consistently applied and regulatory authorities shall ensure that the system user who has been that those criteria are consistently refused access can make use of a applied and that the system user who dispute settlement procedure. The has been refused access can make use regulatory authorities shall also ensure, of a dispute settlement procedure. where appropriate and when refusal of The regulatory authorities shall also access takes place, that the ensure, where appropriate and when transmission or distribution system refusal of access takes place, that the operator provides relevant information transmission or distribution system on measures that would be necessary operator provides relevant to reinforce the network. Such information on measures that would information shall be provided in all be necessary to reinforce the cases when access for recharging network. Such information shall be points was denied. The party provided in all cases when access for requesting such information may be recharging points was denied. The charged a reasonable fee reflecting the party requesting such information cost of providing such information. may be charged a reasonable fee reflecting the cost of providing such information.

• 192. 

  2a. The provisions of this Article

  apply also to energy communities Provisionally agreed:

  that manage distribution networks. 2a. The provisions of this Article apply also to citizens energy communities that manage distribution networks.

• 193. 

  Article 7

  Direct lines 194. 1. Member States shall take the 1. Member States shall take the No change

  measures necessary to enable: measures necessary to enable: 195. (a) all electricity producers and AM 39 (a) all electricity producers and

  electricity supply undertakings (a) all electricity producers and electricity supply undertakings Provisionally agreed:

  established within their territory to electricity supply undertakings established within their territory to (a) all electricity producers and

ANNEX TREE.2.B EN

supply their own premises, subsidiaries established within their territory to supply their own premises, electricity supply undertakings and customers through a direct line; supply their own premises, subsidiaries and customers through a established within their territory to

subsidiaries and customers through a direct line; supply their own premises, direct line without being subject to subsidiaries and customers through a disproportionate administrative direct line without being subject to procedures or costs related for disproportionate administrative instance to the need for a supply procedures or costs;

licence; 196. (b) all customers within their territory AM 40

to be supplied through a direct line by (b) all customers within their (b) all customers within their Provisionally agreed: a producer and supply undertakings. territory individually or jointly, to be territory to be supplied through a all customers within their supplied through a direct line by a direct line by a producer and supply

(b) territory individually or jointly, to

producer and supply undertakings. undertakings. be supplied through a direct line by

a producer and supply undertakings. 197. 2. Member States shall lay down 2. Member States shall lay down No change

the criteria for the grant of the criteria for the grant of authorisations for the construction of authorisations for the construction of direct lines in their territory. Those direct lines in their territory. Those criteria shall be objective and noncriteria shall be objective and nondiscriminatory. discriminatory.

• 198. 

  3. The possibility of supplying AM 41 3. The possibility of supplying Provisionally agreed in TM: electricity through a direct line as 3. The possibility of supplying electricity through a direct line as

  referred to in paragraph 1 shall not electricity through a direct line as referred to in paragraph 1 shall not 3. The possibility of supplying affect the possibility of contracting referred to in paragraph 1 shall not affect the possibility of contracting electricity through a direct line as electricity in accordance with affect the possibility of contracting electricity in accordance with Article referred to in paragraph 1 shall not Article 6. electricity in accordance with Article 6. affect the possibility of contracting 6 and shall not affect the right of the electricity in accordance with Article customer to sign a second supply 6.

  contract for the residual electricity demand.

• 199. 

  4. Member States may issue an 4. Member States may issue an No change authorisation to construct a direct line authorisation to construct a direct

  subject either to the refusal of system line subject either to the refusal of access on the basis, as appropriate, of system access on the basis, as Article 6 or to the opening of a dispute appropriate, of Article 6 or to the settlement procedure under Article 60. opening of a dispute settlement procedure under Article 60.

ANNEX TREE.2.B EN

• 200. 

  5. Member States may refuse to 5. Member States may refuse to No change authorise a direct line if the granting of authorise a direct line if the granting

  such an authorisation would obstruct of such an authorisation would application of the provisions on public obstruct application of the provisions service obligations pursuant to on public service obligations Article 9 . Duly substantiated reasons pursuant to Article 9. Duly shall be given for such refusal. substantiated reasons shall be given for such refusal.

• 201. 

  Article 8

  Authorisation procedure for new capacity 202. 1. For the construction of new 1. For the construction of new No change

  generating capacity, Member States generating capacity, Member States shall adopt an authorisation procedure, shall adopt an authorisation which shall be conducted in procedure, which shall be conducted accordance with objective, transparent in accordance with objective, and non-discriminatory criteria. transparent and non-discriminatory criteria.

• 203. 

  2. Member States shall lay down 2. Member States shall lay down No change the criteria for the grant of the criteria for the grant of

  authorisations for the construction of authorisations for the construction of generating capacity in their territory. generating capacity in their territory. In determining appropriate criteria, In determining appropriate criteria, Member States shall consider: Member States shall consider:

• 204. 

  (a) the safety and security of the No change

  electricity system, installations and (a) the safety and security of the

  associated equipment; electricity system, installations and associated equipment;

• 205. 

  (b) the protection of public health (b) the protection of public health No change and safety; and safety;

• 206. 

  (c) the protection of the (c) the protection of the No change environment; environment;

• 207. 

  (d) land use and siting; (d) land use and siting; No change

• 208. 

  (e) the use of public ground; (e) the use of public ground; No change

• 209. 

  (f) energy efficiency; (f) energy efficiency; No change

ANNEX TREE.2.B EN

• 210. 

  (g) the nature of the primary (g) the nature of the primary No change sources; sources;

• 211. 

  (h) the characteristics particular to (h) the characteristics particular to No change the applicant, such as technical, the applicant, such as technical,

  economic and financial capabilities; economic and financial capabilities; 212. (i) compliance with measures (i) compliance with measures No change

  adopted pursuant to Article 9; adopted pursuant to Article 9; 213. (j) the contribution of the (j) the contribution of the No change

  generating capacity to meeting the generating capacity to meeting the overall Union target of at least a 20 % overall Union target of at least a 20 share of energy from renewable % share of energy from renewable sources in the Union ’s gross final sources in the Union’s gross final consumption of energy in 2020 consumption of energy in 2020 referred to in Article 3(1) of Directive referred to in Article 3(1) of 2009/28/EC of the European Directive 2009/28/EC i of the Parliament and of the Council 30 ; and European Parliament and of the Council 31 ; and

• 214. 

  (k) the contribution of generating (k) the contribution of generating No change capacity to reducing emissions. capacity to reducing emissions.

• 215. 

  AM 42 Provisionally agreed in TM:

  (ka) (new) the assessment of (ka) the assessment of alternatives, alternatives, such as demandsuch as demand-response solutions response solutions and energy and energy storage, to the storage, to the construction of new construction of new generating generating capacity. capacity.

• 216. 

  3. Member States shall ensure that AM 43 3. Member States shall ensure Provisionally agreed in TM: specific authorisation procedures exist Member States shall ensure that that specific authorisation procedures 3. Member States shall ensure for small decentralised and/or specific, simplified and streamlined exist for small decentralised and/or that specific, simplified and distributed generation, which take into authorisation procedures exist for distributed generation, which take streamlined authorisation

  account their limited size and potential small decentralised and/or distributed into account their limited size and procedures exist for small

30 Directive 2009/28/EC i of the European Parliament and the Council of 23 April 2009 on the promotion of the use of energy sources (OJ L 140, 5.6.2009,

• p. 

  16).

31 Directive 2009/28/EC i of the European Parliament and the Council of 23 April 2009 on the promotion of the use of energy sources (OJ L 140, 5.6.2009,

• p. 

  16).

ANNEX TREE.2.B EN

impact. generation, which take into account potential impact. decentralised and/or distributed their limited size and potential generation, which take into account impact. their limited size and potential impact.

• 217. 

  Member States may set guidelines for

  that specific authorisation procedure. Member States may set guidelines

  No change

  National regulatory authorities or other for that specific authorisation competent national authorities procedure. National regulatory including planning authorities shall authorities or other competent review those guidelines and may national authorities including

  recommend amendments thereto. planning authorities shall review those guidelines and may recommend

  amendments thereto.

ANNEX TREE.2.B EN

• 218. 

  Where Member States have No change

  established particular land use permit Where Member States have procedures applying to major new established particular land use permit infrastructure projects in generation procedures applying to major new capacity, Member States shall, where infrastructure projects in generation appropriate, include the construction of capacity, Member States shall, where new generation capacity within the appropriate, include the construction scope of those procedures and shall of new generation capacity within the implement them in a nonscope of those procedures and shall discriminatory manner and within an implement them in a nonappropriate

  time-frame. discriminatory manner and within an appropriate time-frame.

• 219. 

  4. The authorisation procedures

  and criteria shall be made public. 4. The authorisation procedures

  No change

  Applicants shall be informed of the and criteria shall be made public. reasons for any refusal to grant an Applicants shall be informed of the authorisation. Those reasons shall be reasons for any refusal to grant an objective, non-discriminatory, wellauthorisation. Those reasons shall be founded and duly substantiated. objective, non-discriminatory, well Appeal procedures shall be made founded and duly substantiated.

  available to the applicant. Appeal procedures shall be made available to the applicant.

ANNEX TREE.2.B EN

• 220. 

  Article 9

  Public service obligations 221. 1. Member States shall ensure, on No change

  the basis of their institutional 1. Member States shall ensure, on organisation and with due regard to the the basis of their institutional principle of subsidiarity, that, without organisation and with due regard to prejudice to paragraph 2, electricity the principle of subsidiarity, that, undertakings are operated in without prejudice to paragraph 2, accordance with the principles of this electricity undertakings are operated Directive with a view to achieving a in accordance with the principles of competitive, secure and this Directive with a view to environmentally sustainable market in achieving a competitive, secure and electricity, and shall not discriminate environmentally sustainable market between those undertakings as regards in electricity, and shall not

  either rights or obligations. discriminate between those undertakings as regards either rights

  or obligations.

• 222. 

  2. Having full regard to the AM 44 2. Having full regard to the Provisionally agreed in TM: relevant provisions of the Treaty, in 2. Having full regard to the relevant provisions of the Treaty, in 2. Having full regard to the particular Article 106 thereof, relevant provisions of the Treaty, in particular Article 106 thereof, relevant provisions of the Treaty, in Member States may impose on particular Article 106 thereof, Member States may impose on particular Article 106 thereof, undertakings operating in the Member States may impose on undertakings operating in the Member States may impose on electricity sector, in the general undertakings operating in the electricity sector, in the general undertakings operating in the economic interest, public service electricity sector, in the general economic interest, public service electricity sector, in the general obligations which may relate to economic interest, public service obligations which may relate to economic interest, public service security, including security of supply, obligations which may relate to security, including security of supply, obligations which may relate to regularity, quality and price of supplies security, including security of supply, regularity, quality and price of security, including security of and environmental protection, regularity, quality and price of supplies and environmental supply, regularity, quality and price including energy efficiency, energy supplies and environmental protection, including energy

  from renewable sources and climate protection, including energy

  of supplies and environmental

  protection. Such obligations shall be efficiency, energy from renewable

  efficiency, energy from renewable protection, including energy

  clearly defined, transparent, nonsources and climate protection. Such

  sources and climate protection. Such efficiency, energy from renewable

  discriminatory, verifiable and shall obligations shall be clearly defined,

  obligations shall be clearly defined, sources and climate protection. Such

  guarantee equality of access for transparent, non-discriminatory,

  transparent, non-discriminatory, obligations shall be clearly defined,

  electricity undertakings of the Union to verifiable and shall guarantee

  verifiable and shall guarantee transparent, non-discriminatory,

  national consumers. Public service equality of access for electricity

  equality of access for electricity verifiable and shall guarantee

  undertakings of the Union to national undertakings of the Union to national equality of access for electricity

ANNEX TREE.2.B EN

obligations which concern the price consumers. In relation to security of consumers. Public service obligations undertakings of the Union to setting for the supply of electricity supply, energy efficiency/demandwhich concern the price setting for national consumers. Public service shall comply with the requirements set side management and for the the supply of electricity shall comply obligations which concern the price out in Article 5. fulfilment of environmental goals with the requirements set out in setting for the supply of electricity and aims for energy from renewable Article 5. shall comply with the requirements sources, as referred to in this set out in Article 5.

paragraph, Member States may introduce the implementation of long-term planning, taking into account the possibility of third parties seeking access to the system. Public service obligations which concern the price setting for the supply of electricity shall comply with the requirements set out in Article 5.

• 223. 

  3. Where financial compensation,

  other forms of compensation and 3. Where financial compensation,

  No change

  exclusive rights which a Member State other forms of compensation and grants for the fulfilment of the exclusive rights which a Member obligations set out in paragraph 2 or State grants for the fulfilment of the for the provision of universal service obligations set out in paragraph 2 or as set out in Article 27 are provided, for the provision of universal service this shall be done in a nonas set out in Article 27 are provided,

  discriminatory and transparent way. this shall be done in a nondiscriminatory and transparent way.

• 224. 

  4. Member States shall, upon

  implementation of this Directive, 4. Member States shall, upon

  No change

  inform the Commission of all implementation of this Directive, measures adopted to fulfil universal inform the Commission of all service and public service obligations, measures adopted to fulfil universal including consumer protection and service and public service environmental protection, and their obligations, including consumer possible effect on national and protection and environmental

  international competition, whether or protection, and their possible effect

  not such measures require a derogation on national and international competition, whether or not such

ANNEX TREE.2.B EN

from this Directive. They shall inform measures require a derogation from the Commission subsequently every this Directive. They shall inform the two years of any changes to such Commission subsequently every two measures, whether or not they require years of any changes to such a derogation from this Directive. measures, whether or not they require a derogation from this Directive.

• 225. 

  5. Member States may decide not

  to apply the provisions of Articles 6, 7 5. Member States may decide not

  No change

  and 8 insofar as their application to apply the provisions of Articles 6, would obstruct the performance, in law 7 and 8 insofar as their application or in fact, of the obligations imposed would obstruct the performance, in on electricity undertakings in the law or in fact, of the obligations general economic interest and insofar imposed on electricity undertakings as the development of trade would not in the general economic interest and be affected to such an extent as would insofar as the development of trade be contrary to the interests of the would not be affected to such an Union . The interests of the Union extent as would be contrary to the include, inter alia, competition with interests of the Union. The interests regard to customers in accordance with of the Union include, inter alia, this Directive and Article 106 of the competition with regard to customers

  Treaty. in accordance with this Directive and Article 106 of the Treaty.

ANNEX TREE.2.B EN

• 226. 

  CHAPTER III

  CONSUMER EMPOWERMENT AND PROTECTION 227. Article 10

  Basic contractual rights (Article 10 provisionally agreed) 228. 1. Member States shall ensure that

  all customers are entitled to have their 1. Member States shall ensure Provisionally agreed: electricity provided by a supplier, that all customers are entitled to have subject to the supplier’s agreement, their electricity provided by a

  • 1. 

    Member States shall ensure

  regardless of the Member State in supplier, subject to the supplier’s

  that all customers are entitled to

  which the supplier is registered, as agreement, regardless of the Member

  have their electricity provided by a

  long as the supplier follows the State in which the supplier is

  supplier, subject to the supplier’s agreement, regardless of the

  applicable trading rules. In this regard, registered, as long as the supplier Member State in which the supplier Member States shall take all measures follows the applicable trading and is registered, as long as the supplier necessary to ensure that administrative balancing rules. In this regard, follows the applicable trading and procedures do not discriminate against Member States shall take all balancing rules. In this regard, supply undertakings already registered measures necessary to ensure that Member States shall take all

in another Member State. administrative procedures do not discriminate against supply measures necessary to ensure that

undertakings already registered in administrative procedures do not

another Member State. discriminate against supply undertakings already registered in

another Member State. 229. 2. Without prejudice

to Union rules on consumer 2. Without prejudice to Union Provisionally agreed: protection, in particular Directive rules on consumer protection, in 2011/83/EU of the European particular Directive 2011/83 i/EU of

• 2. 

  Without prejudice to Union

Parliament and of the Council 32 and the European Parliament and of the

rules on consumer protection, in

Council Directive 93/13/EEC i (33), Council

34 and Council Directive particular Directive 2011/83 i/EU of 93/13/EEC (35), Member States shall the European Parliament and of the

32 OJ L 304, 22.11.2011, p. 64–88

33 OJ L 95, 21.4.1993, p. 29–34

34 OJ L 304, 22.11.2011, p. 64–88

35 OJ L 95, 21.4.1993, p. 29–34

ANNEX TREE.2.B EN

Member States shall ensure that ensure that []: Council 36 and Council Directive customers: 93/13/EEC (37), Member States shall ensure that:

• 230. 

  (a) have a right to a contract with

  their electricity service provider that (a) customers have a right to a Provisionally agreed:

  specifies: contract with their [] supplier that specifies: (a) customers have a right to a

  contract with their supplier that specifies:

• 231. 

  – the identity and address of the

  supplier, – the identity and address of the Provisionally agreed: supplier,

  – the identity and address of the supplier,

• 232. 

  – the services provided, the

  service quality levels offered, as well – the services provided, the Provisionally agreed:

as the time for the initial connection, service quality levels offered, as well as the time for the initial connection, – the services provided, the

service quality levels offered, as well as the time for the initial connection,

• 233. 

  – the types of maintenance service

  offered, – the types of maintenance Provisionally agreed: service offered,

  – the types of maintenance service offered,

• 234. 

  – the means by which up-to-date AM 45

  information on all applicable tariffs - the means by which up-to-date – the means by which up-to-date Provisionally agreed: and maintenance charges may be information on all applicable tariffs information on all applicable tariffs - the means by which up-toobtained, and maintenance charges and and maintenance charges may be additional products and /or services obtained,

  date information on all applicable tariffs and maintenance charges and

  (bundled offers) may be obtained, additional products and /or services (bundled offers) may be obtained,

36 OJ L 304, 22.11.2011, p. 64–88

37 OJ L 95, 21.4.1993, p. 29–34

ANNEX TREE.2.B EN

• 235. 

  – the duration of the contract, the AM 46

  conditions for renewal and termination - the duration of the contract, – the duration of the contract,

  Provisionally agreed:

  of services and of the contract, the conditions for renewal and the conditions for renewal and

  • - 

    the duration of the contract, the conditions for renewal and

  termination of services including termination of services and of the termination of services including

  additional products and/or services contract , additional products and/or services

  (bundled services) and of the (bundled services) and of the contract and whether withdrawal contract and whether withdrawal from the contract without charge is from the contract without charge is permitted, permitted,

• 236. 

  – any compensation and the

  refund arrangements which apply if – any compensation and the Provisionally agreed: contracted service quality levels are refund arrangements which apply if not met, including inaccurate and contracted service quality levels are – any compensation and the

  delayed billing, not met, including inaccurate and refund arrangements which apply if delayed billing, contracted service quality levels are

  not met, including inaccurate and delayed billing,

ANNEX TREE.2.B EN

• 237. 

  – the method of initiating

  procedures for settlement of disputes – the method of initiating Provisionally agreed:

in accordance with Article 26 , procedures for settlement of disputes in accordance with Article 26, – the method of initiating

procedures for settlement of disputes in accordance with Article 26,

• 238. 

  – information relating to

  consumer rights, including on the – information relating to Provisionally agreed: complaint handling and all of the consumer rights, including on the information referred to in this point, complaint handling and all of the – information relating to clearly communicated through billing information referred to in this point, consumer rights, including on the or the electricity undertaking’s web clearly communicated through billing complaint handling and all of the

  site. or the electricity undertaking’s web information referred to in this point, site. clearly communicated through

  billing or the electricity undertaking’s web site.

• 239. 

  Conditions shall be fair and wellknown

  in advance. In any case, this Conditions shall be fair and well Provisionally agreed: information should be provided prior known in advance. In any case, this to the conclusion or confirmation of information should be provided prior Conditions shall be fair and wellthe contract. Where contracts are to the conclusion or confirmation of known in advance. In any case, this concluded through intermediaries, the the contract. Where contracts are information should be provided prior information relating to the matters set concluded through intermediaries, to the conclusion or confirmation of out in this point shall also be provided the information relating to the the contract. Where contracts are

  prior to the conclusion of the contract; matters set out in this point shall also concluded through intermediaries, be provided prior to the conclusion of the information relating to the

  the contract; matters set out in this point shall

  also be provided prior to the conclusion of the contract;

• 240. 

  (b) are given adequate notice of any AM 47 (b) customers are given adequate

  intention to modify contractual (b) are given adequate notice of notice of any intention to modify Provisionally agreed:

  conditions and are informed about any intention to modify contractual contractual conditions and are (b) customers are given adequate their right to dissolve the contract conditions and are informed about informed about their right to dissolve notice of any intention to modify when the notice is given. Suppliers their right to dissolve the contract the contract when the notice is given. contractual conditions and are shall notify their customers directly of when the notice is given. Suppliers Suppliers shall notify their customers informed about their right to

ANNEX TREE.2.B EN

any adjustment in the supply price as shall notify their customers directly directly of any adjustment in the dissolve the contract when the notice

well as of the reasons and of any adjustment in the supply price supply price as well as of the reasons is given. Suppliers shall notify their

preconditions for the adjustment and as well as of the reasons and and preconditions for the adjustment customers directly of any adjustment

its scope, at an appropriate time no preconditions for the adjustment and and its scope, at an appropriate time in the supply price as well as of the

later than one normal billing period its scope, as soon as they have the no later than [] two weeks, and as reasons and preconditions for the

before the adjustment comes into information on the adjustment, and far as household consumers are adjustment and its scope, at an

effect in a transparent and no later than one month before the considered, one month before the appropriate time no later than two

comprehensible manner. Member adjustment comes into effect in a adjustment comes into effect in a weeks, and as far as household

States shall ensure that customers are transparent and comprehensible transparent and comprehensible consumers are considered, one

free to withdraw from contracts if they manner. Member States shall ensure manner. Member States shall ensure month before the adjustment comes

do not accept the new contractual that customers are free to withdraw that customers are free to withdraw into effect in a transparent and

conditions or adjustments in the supply from contracts if they do not accept from contracts if they do not accept comprehensible manner. Member

price notified to them by their the new contractual conditions or the new contractual conditions or States shall ensure that customers

electricity supplier ; adjustments in the supply price adjustments in the supply price are free to withdraw from contracts

notified to them by their electricity notified to them by their electricity if they do not accept the new

supplier; supplier; contractual conditions or

adjustments in the supply price

notified to them by their electricity

supplier;

• 241. 

  (c) receive transparent information

  on applicable prices and tariffs and on (c) customers receive transparent Provisionally agreed: standard terms and conditions, in information on applicable prices and respect of access to and use of tariffs and on standard terms and (c) customers receive transparent

electricity services; conditions, in respect of access to information on applicable prices and and use of electricity services; tariffs and on standard terms and

conditions, in respect of access to and use of electricity services;

• 242. 

  (d) are offered a wide choice of AM 48

  payment methods, which do not (d) are offered a wide choice of (d) customers are offered a wide Provisionally agreed:

  unduly discriminate between payment methods, which do not choice of payment methods, which

  customers. Any difference in charges unduly discriminate between do not unduly discriminate between

  (d) customers are offered a wide choice of payment methods, which

  related to payment methods shall customers. Any difference in charges customers. Any difference in charges reflect the relevant costs incurred by related to payment methods shall related to payment methods shall be

  do not unduly discriminate between

  objective, non-discriminatory and customers. Any difference in

ANNEX TREE.2.B EN

the supplier . reflect the relevant costs incurred by proportionate and shall not exceed charges related to payment methods the supplier, in line with Article 62 the direct costs borne by the payee shall be objective, nonof

Directive (EU) 2015/2366 which for the use of the specific payment discriminatory and proportionate forbids surcharges for any payment method []. and shall not exceed the direct instrument; costs borne by the payee for the use of the specific payment method, in line with Article 62 of Directive (EU) 2015/2366.

• 243. 

  (e) are not placed at an excessive AM 49 Provisionally agreed:

  disadvantage in comparison to the (e) are not placed at a (e) pursuant to subparagraph (e) pursuant to subparagraph average market price by the disproportionate disadvantage in (d), household customers, who (d), household customers, who prepayment systems; comparison to the average market have access to prepayment have access to prepayment

  price by the prepayment systems; systems, are not placed at a [] disadvantage [] by the prepayment systems, are not placed at a

  systems; disadvantage by the prepayment systems;

• 244. 

  (f) are offered fair and transparent (f) customers are offered fair and Provisionally agreed: general terms and conditions. The transparent general terms and (f) customers are offered fair general terms and conditions shall be conditions . The general terms and and transparent general terms and given in clear and comprehensible conditions shall be given in clear and conditions . The general terms and language and shall not include noncomprehensible language and shall conditions shall be given in clear contractual barriers to the exercise of not include non-contractual barriers and comprehensible language and customers’ rights, for example to the exercise of customers’ rights, shall not include non-contractual excessive contractual documentation. for example excessive contractual barriers to the exercise of customers’ Customers shall be protected against documentation. Customers shall be rights, for example excessive unfair or misleading selling methods; protected against unfair or contractual documentation. misleading selling methods; Customers shall be protected against unfair or misleading selling methods;

• 245. 

  (g) have the right to a good standard of (g) customers have the right to Provisionally agreed:

  service and complaint handling by a good standard of service and

  their electricity service provider.

  Electricity service providers shall complaint handling by their

  (g) customers have the right to a

  handle complaints in a simple, fair and suppliers []. [] Suppliers shall

  good standard of service and

  prompt manner; handle complaints in a simple, fair

  complaint handling by their

  and prompt manner; suppliers. Suppliers shall handle complaints in a simple, fair and

  prompt manner;

ANNEX TREE.2.B EN

• 246. 

  (h) when having access to universal

  service under the provisions adopted (h) customers when having access Provisionally agreed: by Member States pursuant to Article to universal service under the 27 , are informed about their rights provisions adopted by Member States (h) customers when having

  regarding universal service; pursuant to Article 27 , are informed access to universal service under the about their rights regarding universal provisions adopted by Member

  service; States pursuant to Article 27 , are informed about their rights regarding universal service;

• 247. 

  (i) are given adequate information Provisionally agreed:

  on alternatives to disconnection (i) household costumers are (i) household costumers are sufficiently in advance before the given adequate information on given adequate information on planned disconnection. These alternatives to disconnection alternatives to disconnection alternatives may refer to sources of sufficiently in advance before the sufficiently in advance before the support to avoid disconnection, planned disconnection. These planned disconnection. These alternative payment plans, debt alternatives may refer to sources of alternatives may refer to sources of management advice or disconnection support to avoid disconnection, support to avoid disconnection, moratorium and should not constitute prepayment systems, energy prepayment systems, energy

an extra cost to customers; audits, energy consultancy services, alternative payment plans, audits, energy consultancy

debt management advice or services, alternative payment plans, disconnection [] moratoria. The debt management advice or information on the available disconnection moratoria and alternatives [] should not constitute should not constitute an extra cost to an extra cost to the customers facing the customers facing disconnection; disconnection;

• 248. 

  (j) receive a final closure account AM 50

  following any change of electricity (j) receive a final closure account (j) customers receive a final

  Provisionally agreed:

  supplier no later than six weeks after following any change of electricity closure account following any

  (j) customers receive a final closure account following any

  the change of supplier has taken place. supplier no later than two weeks after change of [] supplier no later than six change of supplier no later than six

  the change of supplier has taken weeks after the change of supplier weeks after the change of supplier

  place. has taken place. has taken place.

• 249. 

  AM 51 Provisionally agreed:

  (ja) (new) are provided with a (ja) customers are provided with a summary of the key contractual summary of the key contractual conditions (such as the main conditions in a prominent way in

ANNEX TREE.2.B EN

features of the service, detailed concise and simple language. information on prices, conditions for switching and price increase) in concise and simple language on the first page of the contract or together with the contract.

• 250. 

  Article 11

  Entitlement to a dynamic electricity price contract (Article 11 provisionally agreed) 251. 1. Member States shall ensure that Provisionally agreed:

  every final customer is entitled, on 1. Member States shall ensure 1. Member States shall ensure request, to a dynamic electricity price that the national regulatory contract by his supplier. framework enables electricity

  that the national regulatory

  suppliers to offer a dynamic framework enables electricity electricity price contract. Member suppliers to offer a dynamic States shall ensure that [] final electricity price contract. Member customers who have a smart meter States shall ensure that final installed can [] request to conclude customers who have a smart meter a dynamic electricity price contract installed can request to conclude a

from at least one [] supplier. dynamic electricity price contract from at least one supplier and from

every supplier that has more than 200,000 final customers.

• 252. 

  2. Member States shall ensure that AM 52 Provisionally agreed:

final customers are fully informed by 2. Member States shall ensure 2. Member States shall ensure 2. Member States shall ensure

the suppliers of the opportunities and that final customers are fully that final customers are [] well that final customers are fully

risks of such dynamic electricity price informed by the suppliers of the informed by the suppliers of the informed by the suppliers of the

contract. opportunities and risks of such opportunities, costs and risks of such opportunities, costs and risks of such

dynamic electricity price contract dynamic electricity price contract

including the need to have an and that suppliers are required to

dynamic electricity price contract

adequate electricity meter installed. provide information to the final

and that suppliers are required to

customers accordingly. Regulatory provide information to the final authorities shall monitor the customers accordingly, including market developments and assess the need to have an adequate the risks that the new products and electricity meter installed. services may entail and modify Regulatory authorities shall safeguards in case of abusive monitor the market developments

ANNEX TREE.2.B EN

practices. and assess the risks that the new products and services may entail and deal with abusive practices.

• 253. 

  AM 53 Provisionally agreed:

  2a. (new) Every final customer shall 2a. Every final customer shall always be required to give consent always be required to give consent before being switched to a dynamic before being switched to a dynamic price contract. price contract.

• 254. 

  AM 54 Provisionally agreed (covered by

  2b. (new) Member States shall aim new recital 25a, line 39): at reducing the share of fixed [] components in final customers’ electricity bills.

• 255. 

  3. Member States, through their

  National Regulatory Authorities, shall 3. Where dynamic electricity

  Provisionally agreed:

  monitor and report annually, for at price contracts account for less

  • 3. 

    Member States or their National

  least a ten-year period after such than 80% of the electricity

  Regulatory Authorities, shall

  contracts become available, on the consumed by households, Member

  monitor and publish an annual

  main developments of such contracts States [] or their National Regulatory

  report, for at least a ten-year period

  including market offers, the impact on Authorities, shall monitor and

  after dynamic electricity price

  consumers' bills and specifically the publish an annual report [], for at

  contracts become available, on the main developments of such contracts

level of price volatility, and on least a ten-year period after such including market offers and the

consumers' sensitivity to the level of contracts become available, on the impact on consumers' bills and

financial risk. main developments of such contracts including market offers[]. specifically the level of price

volatility.

• 256. 

  AM 55 Provisionally agreed:

  3a. (new) Member States shall [] ensure that adequate safeguards on the exposure of price changes for final customers are in place to avoid bill shocks or high levels of financial liability.

ANNEX TREE.2.B EN

• 257. 

  Article 12

  Right to switch [] and rules on switching-related fees

• 258. 

  1. Member States shall ensure that New compromise proposal:

  a customer wishing to change supplier, 1. Member States shall ensure 1. Changing suppliers or market while respecting contractual that a customer wishing to change participants engaged in conditions, is entitled to such change suppliers or market participant aggregation shall be carried out

  within three weeks. engaged in aggregation, while respecting contractual conditions, is within the shortest possible time.

  entitled to such a change within a Member States shall ensure that a maximum of three weeks. By no customer wishing to change later than 2025, the technical suppliers or market participant process of switching supplier shall engaged in aggregation, while take no longer than 24 hours and respecting contractual conditions, is shall be possible on any working entitled to such a change within a day, unless a Member State maximum of three weeks. By no concludes there is a negative cost– later than 2023 2027, the technical

benefit analysis. process of switching supplier shall take no longer than 24 hours and

shall be possible on any working day, unless a Member State concludes there is a negative cost– benefit analysis.

• 259. 

  AM 56 See compromise proposal in para.1 (new) By 1 January 2022, the above.

  technical process of switching supplier shall take no longer than 24 hours and shall be possible on any working day.

• 260. 

  2. Member States shall ensure AM 57 2. Member States shall ensure Provisionally agreed: that customers are not charged any 2. Member States shall ensure that at least household customers, 2. Member States shall ensure switching-related fees. that final customers are not charged microenterprises and small that at least household customers, any switching-related fees. enterprises are not charged any microenterprises and small

ANNEX TREE.2.B EN

switching-related fees. enterprises are not charged any switching-related fees.

• 261. 

  3. By way of derogation from AM 58 Provisionally agreed:

  paragraph 2, Member States may 3.By way of derogation from 3. By way of derogation from 3. By way of derogation from choose to permit suppliers to charge paragraph 2, Member States may paragraph 2, Member States may paragraph 2, Member States may contract termination fees to customers choose to permit suppliers to charge choose to permit suppliers or market willingly terminating fixed term contract termination fees to final participants engaged in

  choose to permit suppliers or

  supply contracts before their maturity. customers willingly terminating fixed aggregation to charge contract

  market participants engaged in

  Such fees may only be charged if term, fixed price supply contracts termination fees to customers,

  aggregation to charge contract

  customers receive a demonstrable before their maturity provided that willingly terminating fixed term,

  termination fees to customers,

  advantage from these contracts. In the customer has willingly entered fixed price supply [] contracts

  willingly terminating fixed term,

  addition, such fees shall not exceed the into such a contract. Such fees may before their maturity, as long as such

  fixed price supply contracts before

  direct economic loss to the supplier of only be charged if final customers fees are part of a contract that the

  their maturity, as long as such fees

  the customer terminating the contract, receive a demonstrable advantage costumer has willingly entered into

  are part of a contract that the

  including the cost of any bundled from these contracts. In addition, and such fees are clearly

  costumer has willingly entered

  investments or services already such fees shall be proportionate to communicated to the customer

  into and such fees are clearly

  provided to the customer as part of the the advantage provided to the before the contract is entered into.

  communicated to the customer

  contract. customer and shall not exceed the Such fees [] shall [] be

before the contract is entered into.

direct economic loss to the supplier proportionate and not exceed the

Such fees shall be proportionate

of the final customer terminating the direct economic loss to the supplier

and not exceed the direct economic

contract, including the cost of any or market participant engaged in

loss to the supplier or market

bundled investments or services aggregation of the customer

participant engaged in

already provided to the final terminating the contract, including

aggregation of the customer

customer as part of the contract. The the costs of any bundled investments

terminating the contract, including

burden of proof of the direct or services already provided to the

the costs of any bundled investments

economic loss shall be on the customer as part of the contract.

or services already provided to the customer as part of the contract. The

supplier and shall be monitored by burden of proof of the direct the national regulatory authority. economic loss shall be on the supplier or market participant engaged in aggregation and the permissibility of contract termination fees shall be monitored by the national regulatory authority, or any other competent authority.

ANNEX TREE.2.B EN

• 262. 

  4. Member States shall ensure that

  the right to switch suppliers is granted 4. Member States shall ensure Provisionally agreed:

  to customers in a non-discriminatory that the right to switch suppliers or

  manner as regards cost, effort or time. market participant engaged in 4. Member States shall ensure aggregation is granted to customers that the right to switch suppliers or

  in a non-discriminatory manner as market participant engaged in regards cost, effort or time. aggregation is granted to customers in a non-discriminatory manner as regards cost, effort or time.

• 263. 

  AM 59

  4a. (new) Household customers Provisionally agreed:

  shall be entitled to participate in

  collective switching schemes. 4a. Household customers shall be Member States shall remove all entitled to participate in collective regulatory or administrative barriers switching schemes. Member States for collective switching while shall remove all regulatory or providing a framework that ensures administrative barriers for utmost protection for consumers to collective switching while providing

  avoid any abusive practices. a framework that ensures utmost protection for consumers to avoid

  any abusive practices.

• 264. 

  Article 13

  [] Aggregation contract (Article 13 provisionally agreed)

• 265. 

  -1. Member States shall ensure Provisionally agreed:

  that all customers are free to purchase and sell electricity -1. Member States shall ensure services, other than electricity that all customers are free to supply, including aggregation, purchase and sell electricity independently from their supply services, other than electricity contract and from an electricity supply, including aggregation, undertaking of their choice. independently from their supply contract and from an electricity undertaking of their choice.

ANNEX TREE.2.B EN

• 266. 

  1. Member States shall ensure that, AM 60 Provisionally agreed:

  where a final customer wishes to 1. Member States shall ensure 1. Member States shall ensure 1. Member States shall ensure

  conclude a contract with an that final customers are entitled to that, where a final customer wishes that, where a final customer wishes

aggregator, such engagement shall not conclude a contract with an to conclude an aggregation contract to conclude an aggregation

require the consent of the final aggregator and that such engagement [], this shall not require the consent contract, this shall not require the

customer's supplier. shall not require the consent of the of the final customer's [] electricity consent of the final customer's

final customer's supplier. undertaking. Member States may allow suppliers to require such electricity undertaking

consent only in cases where the customer's supplier does neither receive a regulated compensation payment in line with Article 17(3)(db) nor a compensation for positive imbalances and the need for the supplier’s consent is clearly specified in the contract between the customer and his supplier. Such contractual terms and conditions should be subject to monitoring and approval by the regulatory authorities.

• 267. 

  Member States shall ensure that

  aggregators fully inform customers Provisionally agreed:

  of the terms and conditions of the Member States shall ensure that contracts offered to them. market participants engaged in aggregation fully inform customers of the terms and conditions of the contracts offered to them.

• 268. 

  Member States shall ensure that

  suppliers do not discriminate Provisionally agreed (EP text between customers on the basis of included in para.5, line 273):

  whether they have a contract with

  an aggregator. []

ANNEX TREE.2.B EN

• 269. 

  2. Member States shall ensure that AM 61

  a final customer wishing to terminate 2. Member States shall ensure 2. []

  Provisionally agreed:

  the contract with an aggregator, while that a final customer wishing to 2. []

  respecting contractual conditions, is terminate the contract with an entitled to such termination within aggregator may do so in accordance three weeks. with Article 12.

• 270. 

  3. Member States shall ensure that

  final customers terminating a fixed 3. [] Provisionally agreed:

  term contract with an aggregator

  before its maturity are not charged any 3. []

  termination fee that exceeds the direct economic loss to the aggregator, including the cost of any bundled investments or services already provided to the final customer as part of the contract.

• 271. 

  AM 62

  (new) The burden of proof of the Provisionally agreed in TM (AM 62 direct economic loss shall be on the covered by Article 12(3), line 261):

  aggregator and shall be monitored

  by the national regulatory authority. []

• 272. 

  4. Member States shall ensure that AM 63

  final customers are entitled to receive 4. Member States shall ensure 4. Member States shall ensure Provisionally agreed: all relevant demand response data or that final customers are entitled to that final customers are entitled to 4. Member States shall ensure data on supplied and sold electricity at receive all relevant demand response receive all relevant demand response that final customers are entitled to least once per year. data or data on supplied and sold data or data on supplied and sold receive all relevant demand response electricity and settlement data upon electricity free of charge at least data or data on supplied and sold request and without being charged once every billing period [] if electricity free of charge at least any additional fees and at least once requested by the customer. once every billing period if

  per month. requested by the customer.

• 273. 

  5. Member States shall ensure that

  the rights referred to in paragraphs 1, 5. Member States shall ensure Provisionally agreed (EP text from 2, 3 and 4 are granted to final that the rights referred to in AM 60, line 268):

customers in a non-discriminatory paragraphs 1[] and 4 are granted to final customers in a non 5. Member States shall ensure

ANNEX TREE.2.B EN

manner as regards cost, effort or time. discriminatory manner as regards that the rights referred to in cost, effort or time. paragraphs 1 and 4 are granted to final customers in a nondiscriminatory

manner as regards cost, effort or time. In particular, Member States shall ensure that customers are not subject to discriminatory technical and administrative requirements, procedures and charges from their supplier on the basis of whether they have a contract with a market participant engaged in aggregation.

• 274. 

  Article 14

  Comparison tools (Article 14 provisionally agreed) 275. 1. Member States shall ensure that AM 64 1. Member States shall ensure Provisionally agreed:

  customers have access, free of charge, 1. Member States shall ensure that at least household customers,

  to at least one tool comparing the that customers have access, free of and microenterprises with an 1. Member States shall ensure offers of suppliers that meets the charge, to at least one tool comparing expected yearly consumption of that at least household customers, certification criteria set out in Annex I. the offers from both individual and below 100,000 kWh have access, and microenterprises with an The comparison tools may be operated bundled contracts, including free of charge, to at least one tool expected yearly consumption of by any entity, including private dynamic price contracts, offers from comparing the offers of suppliers that below 100,000 kWh have access, companies and public authorities or electricity suppliers, electricity meets [] at least the following free of charge, to at least one tool bodies. Customers should be informed service providers and independent criteria: comparing the offers of suppliers, of the availability of such tools. aggregators that meets at least the The tools shall: including dynamic price contracts. certification criteria set out in Annex Customers shall be informed of the I. The comparison tools may be availability of such tools in or operated by any entity, including together with their bills or by other private companies and public means. The tools shall meet at authorities or bodies. At least one least the following criteria:

  tool per Member States shall cover the whole of the market. Customers shall be informed of the availability of such tools in or together with their bills.

ANNEX TREE.2.B EN

• 276. 

  (a) be operationally independent Provisionally agreed:

  and ensure that electricity

  undertakings are given equal (a) be independent from market

  treatment in search results; participants and ensure that electricity undertakings are given

  equal treatment in search results;

• 277. 

  (b) clearly disclose their owners Provisionally agreed:

  and the natural or legal person

  operating the tool; (b) clearly disclose their owners and the natural or legal person

  operating and controlling the tool as well as information on how the tools are financed;

• 278. 

  (c) set out clear, objective criteria Provisionally agreed: on which the comparison will be (c) set out clear, objective criteria

  based and disclose them; on which the comparison will be based, including services, and

  disclose them;

• 279. 

  (d) use plain and unambiguous Provisionally agreed:

  language; (d) use plain and unambiguous language;

• 280. 

  (e) provide accurate and up-to-date Provisionally agreed:

  information and state the time of

  the last update; (e) provide accurate and up-todate information and state the

  time of the last update;

• 281. 

  Provisionally agreed:

  (AM 182, Annex I point (da), line 944):

  (ea) be accessible for persons with disabilities by making them perceivable, operable, understandable and robust;

ANNEX TREE.2.B EN

• 282. 

  (f) where multiple tools cover the Provisionally agreed: market, include, as complete as (f) Member States shall ensure that practicable, a range of electricity at least one tool covers the whole of offers covering a significant part of the market. Where multiple tools the market and, where the cover the market, include, as information presented is not a complete as practicable, a range of complete overview of the market, a electricity offers covering a clear statement to that effect, significant part of the market and, before displaying results. In such where the information presented cases the Member State shall does not completely cover the ensure that at least one tool market, a clear statement to that provides an overview of the whole effect, before displaying results, of the market; and and;

• 283. 

  (g) provide an effective procedure Provisionally agreed:

  to report incorrect information on published offers. (g) provide an effective procedure to report incorrect information on published offers.

• 284. 

  Provisionally agreed (AM 184, line

  949):

  (ga) perform comparisons while limiting personal information requested to data strictly necessary for the comparison.

• 285. 

  1a The tools referred to in Provisionally agreed: paragraph 1 may be operated by 1a The tools referred to in any entity, including private paragraph 1 may be operated by companies and public authorities any entity, including private

  or bodies. companies and public authorities or bodies.

• 286. 

  1b Household customers and Provisionally agreed:

  microenterprises with an expected

ANNEX TREE.2.B EN

yearly consumption of below [] 100,000 kWh shall be informed of the availability of the tools referred to in paragraph 1.

• 287. 

  2. Member States shall appoint an

  independent competent authority 2. Member States shall appoint a Provisionally agreed: responsible for certifying comparison [] competent authority to be 2. Member States shall appoint a tools and ensuring that certified responsible for [] verifying competent authority to be comparison tools continue to meet the comparison tools and ensuring that [] responsible for issuing comparison

  criteria set out in Annex I. verified comparison tools continue to meet the criteria set out in tools that meet the criteria set out in

  paragraph 1 []. This authority shall paragraph 1 with a trust mark, be independent from any market and ensuring that comparison participants and comparison tool tools bearing a trust mark

operators. continue to meet the criteria set out in paragraph 1. This authority

shall be independent from any market participants and comparison tool operators.

• 288. 

  3. Member States may require the AM 65

  comparison tools referred to in 3. Member States shall require 3. [] Provisionally agreed:

  paragraph 1 to include comparative the comparison tools referred to in 3. Member States may require the determinants relating to the nature of paragraph 1 to include comparative comparison tools referred to in the services offered by the suppliers. determinants relating to the nature of paragraph 1 to include the services offered by the suppliers. comparative determinants relating to the nature of the services offered by the suppliers.

• 289. 

  4. Any tool comparing the offers AM 66

  of suppliers shall be eligible to apply 4. Any tool comparing the offers 4. Any tool comparing the offers Provisionally agreed: for certification in accordance with this of electricity suppliers, electricity of [] market participants shall be Article on a voluntary and nonservice providers and aggregators, eligible to apply for [] verification in

• 4. 

  Any tool comparing the offers

  discriminatory basis. including independent aggregators, accordance with this Article on a

  of market participants shall be

  shall apply for certification in voluntary and non-discriminatory

  eligible to apply for a trust mark in

  accordance with this Article on a basis.

  accordance with this Article on a voluntary and non-discriminatory

  non-discriminatory basis. basis.

ANNEX TREE.2.B EN

• 290. 

  4a. By way of derogation from

  paragraphs 2 and 4, Member Provisionally agreed:

  States may choose not to provide 4a. By way of derogation from for verification of comparison tools paragraphs 2 and 4, Member should a public authority or body States may choose not to provide provide a comparison tool fulfilling for the issuance of trust mark to the obligation set out in paragraph comparison tools should a public 1. authority or body provide a comparison tool fulfilling the obligation set out in paragraph 1.

• 291. 

  Article 15

  Active customers 292. 1. Member States shall ensure that Provisionally agreed in TM:

  final customers: 1. Member States shall ensure that final customers: 1. Member States shall ensure

  that final customers: 293. (a) are entitled to generate, store, AM 67 (a) are entitled [] to act as active Provisionally agreed in TM:

  consume and sell self-generated (a) are entitled to generate, store, customers, without being subject to (a) are entitled to act as active electricity in all organised markets consume and sell self-generated [] discriminatory technical and customers, without being subject to either individually or through electricity in all organised markets administrative requirements, disproportionate or aggregators without being subject to either individually or through procedures and charges []; discriminatory technical and disproportionately burdensome aggregators without being subject to administrative requirements, procedures and charges that are not discriminatory or disproportionately procedures and charges and cost reflective; burdensome procedures and charges network charges that are not cost that are not cost reflective; reflective;

• 294. 

  (b) are subject to cost reflective, (b) [] Provisionally agreed in TM: transparent and non-discriminatory []

  network charges, accounting separately for the electricity fed into the grid and the electricity consumed from the grid, in line with Article 59(8).

• 295. 

  1a. Member States shall ensure Provisionally agreed in TM:

  that active consumers: 1a. Member States shall ensure that active consumers:

ANNEX TREE.2.B EN

• 296. 

  (a) are entitled to operate either Provisionally agreed in TM:

directly or through aggregation; (a) are entitled to operate either directly or through aggregation;

• 297. 

  (b) are entitled to sell self Provisionally agreed in TM: generated electricity including (b) are entitled to sell selfthrough power purchase generated electricity including

  agreements; through power purchase agreements;

• 298. 

  (c) are entitled to participate in Provisionally agreed in TM (the demand response and energy change was made to align with

  efficiency schemes; corresponding change in line 108): (c) are entitled to participate in

  demand response flexibility and energy efficiency schemes;

• 299. 

  (d) are entitled to delegate the Provisionally agreed in TM: management of the installations (d) are entitled to delegate the required for their activities to a management of the installations third party, including installation, required for their activities to a operation, data handling and third party, including installation,

  maintenance; operation, data handling and maintenance. The third party

  should not be considered an active customer itself;

• 300. 

  (e) are subject to cost reflective, Provisionally agreed in TM: transparent and non(e) are subject to cost reflective, discriminatory network charges, transparent and nonaccounting

  separately for the discriminatory network charges, electricity fed into the grid and the accounting separately for the electricity consumed from the grid, electricity fed into the grid and the in line with Article 59(8) ensuring electricity consumed from the they contribute in an adequate and grid, in line with Article 59(8) balanced way to the overall cost ensuring they contribute in an sharing of system of producing, adequate and balanced way to the distributing and consuming overall cost sharing of system of electricity in line with Article 16 of producing, distributing and the [Electricity Regulation]; consuming electricity in line with

ANNEX TREE.2.B EN

Article 16 of the [Electricity Regulation];

• 301. 

  (f) are financially responsible Provisionally agreed in TM: for the imbalances they cause in (f) are financially responsible the electricity system. To this for the imbalances they cause in extent they shall be balance the electricity system. To this responsible parties or shall extent they shall be balance delegate their balance responsible parties or shall responsibility in accordance with delegate their balance

  Article 4 of the [Electricity responsibility in accordance with Regulation]. Article 4 of the [Electricity Regulation].

• 302. 

  1b. Member States may have Provisionally agreed in TM: different governing provisions for 1b. Member States may have individual and jointly acting final different governing provisions for customers in their national individual and jointly acting final legislation provided that all rights customers in their national and obligations as stipulated in this legislation provided that all rights article are applied to all active and obligations as stipulated in customers. this article are applied to all active customers. Any different

  treatment towards jointly acting active customers shall be proportionate and duly justified.

• 303. 

  1c. Member States that have New compromise proposal:: existing schemes not accounting 1c. Member States that have separately for the electricity fed existing schemes not accounting into the grid and the electricity separately for the electricity fed consumed from the grid, shall into the grid and the electricity grant no new rights under these consumed from the grid, shall not schemes beyond the end of the year grant new rights under these

2025. schemes beyond the end of the year 2024. All customers subject

to existing schemes must at any time have the possibility to opt for a new scheme accounting

ANNEX TREE.2.B EN

separately for the electricity fed

into the grid and the electricity

consumed from the grid as the

basis for calculating network

charges.

• 304. 

  2. The energy installation required AM 68

  for the activities of the active customer 2. The energy installation 2. []

  Provisionally agreed in TM (covered in para.1a(d), line 299):

  may be managed by a third party for required for the activities of the []

  installation, operation, including active customer may be managed by metering and maintenance. a third party for installation, operation, including metering and maintenance provided that the economic risk connected to the operation of the installation remains with the active costumer.

• 305. 

  Member States shall ensure that Provisionally agreed in TM: active customers owning a storage Member States shall ensure that facility: active customers owning a storage facility:

• 306. 

  (a) have the right to a grid Provisionally agreed in TM: connection within a reasonable time (a) have the right to a grid following the request; connection within a reasonable time following the request if all necessary conditions such as balancing responsibility and adequate metering are fulfilled;

• 307. 

  (b) are not subject to additional Provisionally agreed in TM taxes, surcharges, and fees for the (aligned to RED II Article 21(2)(b): electricity stored in the storage (b) are not subject to any double facility; charge, including network charges, for stored electricity remaining within their premises surcharges and fees for the electricity stored in the storage facility which remains within their premises;

ANNEX TREE.2.B EN

• 308. 

  (c) are distinguished from Provisionally agreed in TM: generators and not subject to related (c) are not subject to unlicensing

  requirements and fees; proportional disproportionate licensing requirements and fees;

• 309. 

  (d) are allowed to provide several Provisionally agreed in TM: services simultaneously, if (d) are allowed to provide several technically feasible. services simultaneously, if

  technically feasible. 310. Article 16

  Citizens energy communities (Article 16 provisionally agreed) 311. 1. Member States shall ensure that Provisionally agreed:

  local energy communities: 1. Member States shall [] provide an enabling regulatory 1. Member States shall provide

framework for [] energy an enabling regulatory framework

communities ensuring that: for citizens energy communities ensuring that:

• 312. 

  (a) are entitled to own, establish, or AM 69 (a) [] Provisionally agreed: lease community networks and to (a) are entitled to own, establish, (covered in Council text, paras.2(b) autonomously manage them; or lease community networks and and 2b, lines 338 and 347) autonomously manage them, as long []

  as the concession system of the Member State is respected;

• 313. 

  (b) can access all organised markets (b) [] Provisionally agreed: either directly or through aggregators []

  or suppliers in a non-discriminatory manner;

• 314. 

  AM 70 Provisionally agreed:

  (ba) (new) shall be subject to (covered in Council text, para.2a balance responsibility in accordance (c), line 344) with Article 4 of Regulation (EU) ... [] [recast of Regulation 714/2009 i as proposed by COM (2016)861 i/2];

• 315. 

  (c) benefit from a non AM 71 (c) [] Provisionally agreed: discriminatory treatment with regard to (c) benefit from a non(covered in Council text, para.2a their activities, rights and obligations discriminatory treatment with regard (b), line 343)

  as final customers, generators, to their activities, rights and []

ANNEX TREE.2.B EN

distribution system operators or obligations as final customers, aggregators; generators, distribution system operators, suppliers or aggregators;

• 316. 

  AM 72 Provisionally agreed:

  (ca) (new) adequately contribute to (covered in Council text, para.1(f), the costs of the electricity system to line 324) which they remain connected; []

• 317. 

  AM 73 Provisionally agreed:

  (cb) (new) operate on the market on (covered in Council text, para.2a (a) a level playing field without and (b), lines 342 and 343) distorting competition; []

• 318. 

  (d) are subject to fair, proportionate (d) [] Provisionally agreed: and transparent procedures and cost []

  reflective charges.

• 319. 

  (a) participation in an energy Provisionally agreed:

  community is open and voluntary; (a) participation in a citizens energy community is open and

  voluntary;

• 320. 

  (b) shareholders or members are Provisionally agreed: allowed to leave an energy (b) shareholders or members community; in such cases Article are allowed to leave a citizens

  12 shall apply; energy community; in such cases Article 12 shall apply;

• 321. 

  (c) shareholders or members of Provisionally agreed:

  an energy community shall not lose (c) shareholders or members of their rights and obligations as a citizens energy community shall household customers or active not lose their rights and customers; obligations as household customers or active customers;

• 322. 

  (d) energy communities that Provisionally agreed:

  supply electricity, provide [] aggregation or other commercial electricity services are subject to

ANNEX TREE.2.B EN

the provisions relevant for such activities;

• 323. 

  (e) relevant distribution system Provisionally agreed:

  operator shall, subject to fair (e) relevant distribution system compensation as assessed by the operator shall, subject to fair regulatory authority, cooperate compensation as assessed by the with energy communities to regulatory authority, cooperate facilitate electricity transfers with citizens energy communities within energy communities; to facilitate electricity transfers within citizens energy communities;

• 324. 

  (f) energy communities are Provisionally agreed: subject to non-discriminatory fair, (f) citizens energy communities proportionate and transparent are subject to non-discriminatory procedure, including registration fair, proportionate and and licensing, and transparent and transparent procedure and non-discriminatory and cost charges, including registration reflective network charges and licensing, and transparent ensuring they contribute in an and non-discriminatory and cost adequate and balanced way to the reflective network charges in line overall cost sharing of the system with Article 16 of the [Electricity in line with Article 16 of the Regulation] ensuring they

  [Electricity Regulation]. contribute in an adequate and balanced way to the overall cost

  sharing of the system.

• 325. 

  2. Member States shall provide an 2. Member States [] may provide Provisionally agreed: enabling regulatory framework that [] in the enabling regulatory 2. Member States may provide ensures that: framework that [] energy in the enabling regulatory

  communities: framework that citizens energy communities:

ANNEX TREE.2.B EN

• 326. 

  AM 74 Provisionally agreed:

  (-a) (new) conditions for creating, [] operating and dissolving local energy networks are well defined;

• 327. 

  (a) participation in a local energy (a) [] Provisionally agreed: community is voluntary; []

• 328. 

  AM 75 Provisionally agreed:

  (aa) (new) conditions and standards [] are set up for local energy communities with networks in order to preserve efficient network planning. These conditions and standards shall also ensure that customers and members in the local energy community receive the same quality and standard of network services that are available to customers outside the local energy community;

• 329. 

  AM 76 Provisionally agreed:

  (ab) (new) final customers are (covered in Council text, para.1(a), entitled to participate in a local line 319) energy community; []

• 330. 

  (b) shareholders or members of a

  local energy community shall not lose (b) []

  Provisionally agreed: []

  their rights as household customers or active customers;

ANNEX TREE.2.B EN

• 331. 

  (c) shareholders or members are

  allowed to leave a local energy (c) []

  Provisionally agreed: []

  community; in such cases Article 12 shall apply;

• 332. 

  (d) Article 8 (3) applies to

  generating capacity installed by local (d) []

  Provisionally agreed: []

  energy communities as long as such capacity can be considered small decentralised or distributed generation;

• 333. 

  (e) provisions of Chapter IV apply AM 77 (e) [] Provisionally agreed: to local energy communities that (e) provisions of Chapter IV as (covered in Council text, para.2b, perform activities of a distribution well as other rules and regulations lines 347-350)

  system operator; applying to distribution system [] operators apply to local energy

  communities that perform activities of a distribution system operator;

• 334. 

  (f) where relevant, a local energy (f) [] Provisionally agreed: community may conclude an []

  agreement with a distribution system operator to which their network is connected on the operation of the local energy community's network;

ANNEX TREE.2.B EN

• 335. 

  (g) where relevant system users that AM 78 (g) [] Provisionally agreed: are not shareholders or members of the (g) where relevant system users (covered in Council text, para.2b, local energy community connected to that are not shareholders or members lines 347-350)

  the distribution network operated by a of the local energy community [] local energy community shall be connected to the distribution network subject to fair and cost-reflective operated by a local energy network charges. If such system users community shall be subject to nonand local energy communities cannot discriminatory, fair and costreach an agreement on network reflective network charges. If such charges, both parties may request the system users and local energy regulatory authority to determine the communities cannot reach an level of network charges in a relevant agreement on network charges, both decision; parties may request the regulatory authority to determine the level of network charges in a relevant decision;

• 336. 

  (h) where relevant local energy (h) [] Provisionally agreed: communities are subject to appropriate []

  network charges at the connection points between the community network and the distribution network outside the energy community. Such network charges shall account separately for the electricity fed into distribution network and the electricity consumed from the distribution network outside the local energy community in line with Article 59 (8).

• 337. 

  (a) are open to cross-border Provisionally agreed:

  participation; (a) are open to cross-border participation;

ANNEX TREE.2.B EN

• 338. 

  (b) are entitled to own, establish, Provisionally agreed: purchase or lease distribution (b) are entitled to own, networks and to autonomously establish, purchase or lease manage them subject to conditions distribution networks and to set out in Article 16 (2b); autonomously manage them

  subject to conditions set out in Article 16 (2b);

• 339. 

  (c) are subject to exemptions Provisionally agreed: foreseen by Article 38(2); (c) are subject to exemptions foreseen by Article 38(2);

• 340. 

  (d) are entitled to arrange Provisionally agreed: within the community sharing of []

  electricity that is produced by the production units owned by the community, subject to the provisions of this article and retaining community members’ rights and obligations as final consumers.

• 341. 

  2a. Member States shall ensure Provisionally agreed: that energy communities: 2a. Member States shall ensure

  that citizens energy communities: 342. (a) can access all electricity Provisionally agreed:

  markets either directly or through (a) can access all electricity aggregation in a nonmarkets either directly or through discriminatory manner; aggregation in a nondiscriminatory

  manner;

• 343. 

  (b) are treated in a non Provisionally agreed: discriminatory manner with (b) are treated in a nonregard to their activities, and are discriminatory and proportionate subject to the same rights and manner with regard to their obligations when acting as final activities, rights and obligations as customers, generators, suppliers, final customers, generators, distribution system operators, or suppliers, distribution system other market participants; operators or market participants engaged in aggregation;

ANNEX TREE.2.B EN

• 344. 

  (c) shall be financially Provisionally agreed: responsible for the imbalances they (c) shall be financially cause in the electricity system. To responsible for the imbalances this extend they shall be balance they cause in the electricity responsible parties or shall system. To this extend they shall delegate their balance be balance responsible parties or responsibility in accordance with shall delegate their balance

  Article 4 of the [Electricity responsibility in accordance with Regulation]; Article 4 of the [Electricity

  Regulation];

• 345. 

  (d) with regard to self Provisionally agreed: consumption, energy communities (d) with regard to selfshall be treated like active consumption, citizens energy customers in accordance with communities shall be treated like

  Article 15(1)b; active customers in accordance with Article 15(1)b;

• 346. 

  (e) are subject to Article 8 (3) in Provisionally agreed: relation to generating capacity (ea) are entitled to arrange within installed by energy communities as the community sharing of long as such capacity can be electricity that is produced by the considered small decentralised or production units owned by the

  distributed generation. community subject to the provisions of this article and

  retaining community members’ rights and obligations as consumers. Where electricity is shared, this shall be without prejudice to applicable network charges, tariffs and levies, in line with a transparent cost-benefit analysis of distributed energy resources developed by the national competent authority.

ANNEX TREE.2.B EN

• 347. 

  2b. Member States may decide, Provisionally agreed: to grant energy communities with 2b. Member States may decide, a right to manage distribution to grant citizens energy network in their area of operation communities with a right to and define the relevant procedures, manage distribution network in without prejudice to the provisions their area of operation and define of Chapter IV and other rules and the relevant procedures, without regulations applying to prejudice to the provisions of distribution system operators. If Chapter IV and other rules and such right is granted, Member regulations applying to

  States shall ensure that: distribution system operators. If

  such right is granted, Member States shall ensure that:

• 348. 

  (a) energy communities may Provisionally agreed: conclude an agreement with a (a) citizens energy communities relevant distribution system may conclude an agreement with a operator or transmission system relevant distribution system operator to which their network is operator or transmission system connected on the operation of the operator to which their network is

  energy community's network; connected on the operation of the citizens energy community's

  network;

• 349. 

  (b) energy communities are Provisionally agreed: subject to appropriate network (b) citizens energy communities charges at the connection points are subject to appropriate between the community network network charges at the connection and the distribution network points between the community outside the energy community. network and the distribution

  Such network charges shall network outside the citizens account separately for the energy community. Such network electricity fed into distribution charges shall account separately network and the electricity for the electricity fed into consumed from the distribution distribution network and the network outside the energy electricity consumed from the community in line with Article 59 distribution network outside the

ANNEX TREE.2.B EN

(8); citizens energy community in line with Article 59 (8);

• 350. 

  (c) energy communities do not Provisionally agreed: discriminate or harm customers (c) citizens energy communities remaining connected to the do not discriminate or harm

distribution system. customers remaining connected to the distribution system.

• 351. 

  AM 79 Provisionally agreed:

  Article 16a (new) (covered in new compromise Electricity sharing proposal, para.2a(ea), line 346) Local energy communities are [] entitled to share electricity from generation assets within the community between its members or shareholders based on market principles, including applying existing or future ICT technologies such as virtual net metering schemes and those based on distributed ledger technologies, as well as through power purchase agreements or peer-to-peer trade arrangements for example.

• 352. 

  Article 17

  Demand response through aggregation 353. 1. Member States shall ensure that AM 80

  national regulatory authorities 1. Member States shall ensure 1. Member States shall allow

  Provisionally agreed (linked to

  encourage final customers, including that the regulatory framework allows and foster participation of demand

  definition of electricity markets set

  those offering demand response final customers, including those response through aggregation.

  out in Article 2(6a), line 109):

  through aggregators, to participate offering demand response through Member States shall [] allow final

  • 1. 

    Member States shall allow

  alongside generators in a nonaggregators, to participate alongside customers, including those offering

  and foster participation of

  discriminatory manner in all organised generators in a non-discriminatory demand response through []

  demand response through

  markets. manner in all organised markets and aggregation, to participate alongside

  aggregation. Member States shall

capacity mechanisms. electricity generators in a nonallow

final customers, including

discriminatory manner in all [] those offering demand response through aggregation, to participate

ANNEX TREE.2.B EN

electricity markets. alongside electricity generators in a non-discriminatory manner in all

electricity markets. 354. 2. Member States shall ensure that AM 81 Provisionally agreed:

transmission system operators and 2. Member States shall ensure 2. Member States shall ensure distribution system operators when that transmission system operators that transmission system operators

• 2. 

  Member States shall ensure

procuring ancillary services, treat and distribution system operators and distribution system operators

that transmission system operators

demand response providers, including when procuring ancillary services, when procuring ancillary services,

and distribution system operators

independent aggregators, in a nontreat demand response providers, treat [] market participants

when procuring ancillary services,

discriminatory manner, on the basis of including independent aggregators, in engaging in demand response

treat market participants engaging

their technical capabilities. a non-discriminatory manner aggregation, in a non-discriminatory

in demand response aggregation,

alongside generators, on the basis of manner, on the basis of their

in a non-discriminatory manner

their technical capabilities. technical capabilities.

alongside generators, on the basis of their technical capabilities.

• 355. 

  3. Member States shall ensure that AM 82

  their regulatory framework encourages 3. Member States shall ensure 3. Member States shall ensure

  Provisionally agreed:

  the participation of aggregators in the that their regulatory framework that their relevant regulatory 3. Member States shall ensure retail market and that it contains at encourages the participation of framework [] contains at least the that their relevant regulatory least the following elements: aggregators in all markets and that it following elements: framework contains at least the contains at least the following following elements:

  elements:

• 356. 

  (a) the right for each aggregator to (a) the right for each market Provisionally agreed: enter the market without consent from participant engaged in (a) the right for each market other market participants; aggregation, including independent participant engaged in

  aggregators, to enter [] electricity aggregation, including markets without consent from other independent aggregators, to enter []market participants; electricity markets without consent from other market participants;

• 357. 

  (b) transparent rules clearly AM 83 (b) non-discriminatory and Provisionally agreed: assigning roles and responsibilities to (b) non-discriminatory and transparent rules clearly assigning (b) non-discriminatory and all market participants; transparent rules clearly assigning roles and responsibilities to all [] transparent rules clearly assigning roles and responsibilities to all electricity undertakings engaged in roles and responsibilities to all market participants; aggregation or affected by the electricity undertakings and participation of demand response customers;

  through aggregation;

ANNEX TREE.2.B EN

• 358. 

  (c) transparent rules and procedures AM 84 (c) non-discriminatory and Provisionally agreed: for data exchange between market (c) non-discriminatory and transparent rules and procedures for (c) non-discriminatory and participants that ensure easy access to transparent rules and procedures for data exchange between market transparent rules and procedures for data on equal and non-discriminatory data exchange between market participants engaged in data exchange between market terms while fully protecting participants that ensure easy access aggregation and other [] electricity participants engaged in commercial data; to data on equal and nonundertakings that ensure easy access aggregation and other electricity discriminatory terms while fully to data on equal and nonundertakings that ensure easy protecting commercial data and discriminatory terms while fully access to data on equal and noncustomers´ personal data, including protecting commercial data; discriminatory terms while fully minimum information requirements protecting commercial data and for the aggregator, as well as customers´ personal data; minimum criteria for the protection

  of commercially sensitive data for all parties concerned;

• 359. 

  (d) aggregators shall not be required AM 85

  to pay compensation to suppliers or deleted (d) []

  Provisionally agreed: []

  generators; 360. AM 86 Provisionally agreed:

  (da) (new) market participants (da) market participants engaged (da) market participants engaged engaged in aggregation shall be in aggregation shall be financially financially responsible for the responsible for the imbalances they

  in aggregation shall be financially

  imbalances they cause in the cause in the electricity system. To

responsible for the imbalances they

electricity system as defined in this extent they shall be balance

cause in the electricity system. To

accordance with Article 4 of responsible parties or shall

this extent they shall be balance

Regulation (EU) ... [recast of delegate their balance

responsible parties or shall delegate their balance

Regulation 714/2009 i as proposed by responsibility in accordance with responsibility in accordance with COM (2016)861 i/2]; Art 4 of the electricity Regulation; Art 4 of the electricity Regulation;

• 361. 

  AM 87 Council compromise proposal:

  (db) (new) non-discriminatory and (db) Member States may require (db) Member States may require transparent rules and procedures to undertakings, including compensate market participants for independent aggregators to pay

  electricity undertakings or

  the energy they deliver during the compensation to other market

  participating final customers to

  demand response period in a participants or their balancing

pay compensation to other market

proportionate manner, under the responsible party if they directly

participants or their balancing

supervision of the national induce imbalances to these market

responsible party that are directly

participants including situations affected by demand response

ANNEX TREE.2.B EN

regulatory authority, without where a perimeter correction is activation if they directly induce creating a barrier for market entry introduced without creating a imbalances to these market of aggregators or a barrier for barrier for market entry of participants without creating Such flexibility. Compensation shall be aggregators or a barrier for payments shall not create a barrier strictly limited to cover the resulting flexibility. In such cases the for market entry of market costs. The calculation method for compensation payment shall be participants engaged in such compensation may take strictly limited to cover the aggregation or a barrier for account of the benefits induced by resulting costs. The calculation flexibility. In such cases the the independent aggregators to method for such compensation compensation payment shall be other market participants and be may take account of the benefits strictly limited to cover the subject to approval by the regulatory induced by the independent resulting costs incurred induced authority; aggregators to other market by the suppliers of participating participants and be subject to customers or their balance approval by the regulatory responsible party during activation authority; of demand response. The calculation method for compensation may take account of the benefits induced by the independent aggregators to other market participants and in such a case aggregators or participating consumers may contribute to such compensation only if ever and insofar as the benefits for all suppliers, customers and their balance responsible parties do not exceed the direct costs they incurred. The calculations method shall be subject to approval by the regulatory authority or other national competent authority;