Changes from plenary report to adopted text

Removed(71b) The intra-day volatility management mechanism should ensure that excessive movements in prices within a trading day are prevented. The mechanism should be based on the observed market price at regular intervals. Given the wide diversity of instruments in energy derivatives markets and the peculiarities of the trading venues associated with such instruments, the intra-day volatility management mechanisms should be adapted to the specificities of those instruments and markets. Therefore, price limits should be set up by trading venues taking into account the specificities of each relevant energy-related commodity derivative, the liquidity profile of the market for such derivative and its volatility profile.

Removed(72) The European energy sector is undergoing an important change towards a highly efficient decarbonised economy based on renewable energy sources, while ensuring security of supply and competitiveness. While cybersecurity in the electricity sub-sector is already advancing with a network code on cross-border electricity flow, sector-specific mandatory rules for the gas sub-sector are needed to ensure security of the European energy system.

Removed(73) As demonstrated in the Union wide simulation of 2017 and 2021, regional cooperation and solidarity measures are essential to ensure the resilience of the Union in case of serious deterioration of the supply situation. Solidarity measures should ensure the supply of protected solidarity customers such as households across borders in all situations. Member States should adopt the necessary measures for the implementation of the provisions concerning the solidarity mechanism, including by the Member States concerned agreeing on technical, legal and financial arrangements. Member States should describe the details of those arrangements in their emergency plans. For Member States who have not agreed the necessary bilateral agreement, the default template of this Regulation should apply in order to ensure such effective solidarity.

Removed(74) Such measures may therefore give rise to an obligation for a Member State to pay compensation to those affected by its measures. To ensure that the compensation paid by the Member State requesting solidarity to the Member State providing solidarity is fair and reasonable, the national energy regulator authority for energy or the national competition authority should have, as independent authority, the power to audit the amount of compensation requested and paid and if necessary request a rectification.

Removed(74a) It is important for the Commission and the Member States to have a clear picture of intended and concluded gas supply contracts across the Union, in order to assess whether the objectives of security of supply and energy solidarity are met. Therefore, undertakings or authorities of Member States should inform the Commission and the Member States in which those undertakings are established of large planned gas purchases above 5 TWh/year. This should in particular apply to basic information regarding new or renewed contracts. The Commission should be allowed to issue recommendations to the natural gas undertakings or authorities of the relevant Member States, in particular where further coordination could improve the functioning of joint purchasing or where the launch of a tender for the purchase of gas or planned gas purchases may have a negative impact on security of supply, the internal market or energy solidarity. The issuing of a recommendation should not prevent natural gas undertakings or authorities of the relevant Member States from proceeding with the negotiations in the meantime.

Removed(74b) Where the Commission has reasonable grounds for considering that extraordinary circumstances have occurred in which security of supply of the Union or of a given region or of a Member State cannot be fully ensured without addressing missing links, in particular taking into account the Union's aim to end dependence on a single supplier, it is encouraged to mandate the ENTSOG to carry out a transparent and in-depth analysis of the identified risks to the security of supply and of possible solutions to address it. On the basis of ENTSOG’s analysis, the Commission, taking into account the need to promote Union energy security and solidarity, the rapid ending of dependence on a single supplier and the overcoming of related bottlenecks in the internal energy market may identify missing links with a view to resolving or mitigating the identified risks to the security of supply. The Commission may also identify means to support the development of such investment projects, including through an accelerated permitting procedure and financial assistance. It is important that any such investment project is future-proof and compatible with the Union objectives of climate neutrality laid down in Regulation (EU) 2021/1119 and does not lead to stranded assets.

Removed(75) Since the objective of this Regulation, namely the setting of fair rules for access conditions to natural gas transmission networks, storage and LNG facilities, cannot be sufficiently achieved by the Member States but can rather, by reason of the scale or effects of such an action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

RemovedHAVE ADOPTED THIS REGULATION:

RemovedSubject matter, scope and definitions

RemovedThis Regulation:

Removed(a) sets non-discriminatory rules for access conditions to natural gas and hydrogen systems taking into account the special characteristics of national and regional markets with a view to ensuring the proper functioning of the internal market in gas as well as to contribute to the long-term flexibility of the electricity system; ▌

Removed(aa) encourages preventive measures reducing fossil gas demand through the implementation of the energy efficiency first principle leading to energy savings, increased direct electrification as part of a fully integrated energy system, and increased use of renewable sources of energy, and contributes to the prudent and rational use of natural resources and the achievement of the Union’s climate and energy targets; and

Removed(b) facilitates the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in gas and provides mechanisms to harmonise the network access rules for cross-border exchanges in gas.

RemovedThe objectives referred to in the first subparagraph shall include the setting of harmonised principles for tariffs, or the methodologies underlying their calculation, for access to the natural gas network, but not to storage facilities, the establishment of third-party access services and harmonised principles for capacity-allocation and congestion-management, the determination of transparency requirements, balancing rules and imbalance charges, and the facilitation of capacity trading.

RemovedThis Regulation, with the exception of Article 31(5), shall apply only to natural gas and hydrogen storage facilities falling under Article 29(3) or (4) of recast Gas Directive as proposed in COM(2021)xxx.

RemovedThe Member States may establish an entity or body set up in compliance with Recast Gas Directive as presented in COM xxx for the purpose of carrying out one or more functions typically attributed to the transmission system operator or hydrogen network operator, which shall be subject to the requirements of this Regulation. That entity or body shall be subject to certification in accordance with Article 13 of this Regulation and shall be subject to designation in accordance with Article 65 of recast Gas Directive as proposed in COM(2021)xxx.

Removed1. For the purpose of this Regulation, the following definitions apply:

Removed(1) ‘regulatory asset base’ means all network assets of a network operator used for the provision of regulated network services that are taken into account when calculating network related services revenue;

Removed(2) ‘transmission’ means transmission as defined in Article 2, point (16) of [the recast Gas Directive, COD 2021/0425];

Removed(3) ‘transport contract’ means a contract which the transmission system operator or hydrogen network operator has concluded with a network user with a view to carrying out transport services for gas;

Removed(4) ‘capacity’ means the maximum flow, expressed in normal cubic meters per time unit or in energy unit per time unit, to which the network user is entitled in accordance with the provisions of the transport contract;

Removed(5) ‘unused capacity’ means firm capacity which a network user has acquired under a transport contract but which that user has not nominated by the deadline specified in the contract;

Removed(6) ‘congestion management’ means management of the capacity portfolio of the transmission system operator with a view to optimal and maximum use of the technical capacity and the timely detection of future congestion and saturation points;

Removed(7) ‘secondary market’ means the market of the capacity traded otherwise than on the primary market;

Removed(8) ‘nomination’ means the prior reporting by the network user to the transmission system operator of the actual flow that the network user wishes to inject into or withdraw from the system;

Removed▌

Removed(10) ‘system integrity’ means any situation in which the pressure and the quality of the natural gas or hydrogen remain within the minimum and maximum limits, so that the transport of natural gas or hydrogen is guaranteed from a technical standpoint;

Removed(11) ‘balancing period’ means the period within which the off-take of an amount of gas, expressed in units of energy, must be offset by every network user by means of the injection of the same amount of gas in accordance with the network code;

Removed(12) ‘network user’ means a customer or a potential customer of a transmission system operator or hydrogen network operator, and transmission system operators or hydrogen network operators themselves in so far as it is necessary for them to carry out their functions in relation to transport of natural gas and hydrogen;

Removed(13) ‘interruptible services’ means services offered by the transmission system operator or hydrogen network operator in relation to interruptible capacity;

Removed(14) ‘interruptible capacity’ means gas transmission capacity that may be interrupted by the transmission system operator or hydrogen network operator in accordance with the conditions stipulated in the transport contract;

Removed(15) ‘long-term services’ means services offered by the transmission system operator or hydrogen network operator with a duration of one year or more;

Removed(16) ‘short-term services’ means services offered by the transmission system operator or hydrogen network operator with a duration of less than one year;

Removed(17) ‘firm capacity’ means gas transmission capacity contractually guaranteed as uninterruptible by the transmission system operator or hydrogen network operator;

Removed(18) ‘firm services’ mean services offered by the transmission system operator or hydrogen network operator in relation to firm capacity;

Removed(19) ‘technical capacity’ means the maximum firm capacity that can be offered to the network users, taking account of system integrity and the operational requirements of the transmission system or hydrogen network;

Removed(20) ‘contracted capacity’ means capacity that r has been allocated to a network user by means of a transport contract;

Removed(21) ‘available capacity’ means the part of the technical capacity that is not allocated and is still available to the system at that moment;

Removed(22) ‘contractual congestion’ means a situation where the level of firm capacity demand exceeds the technical capacity;

Removed(23) ‘primary market’ means the market of the capacity traded directly by the transmission system operator or hydrogen network operator;

Removed▌

Removed(25) ‘LNG facility capacity’ means capacity at a liquefied natural gas (LNG) terminal for the liquefaction of natural gas or the importation, offloading, ancillary services, temporary storage and re-gasification of LNG;

Removed(26) ‘space’ means the volume of gas which a user of a storage facility is entitled to use for the storage of gas;

Removed(27) ‘deliverability’ means the rate at which the storage facility user is entitled to withdraw gas from the storage facility;

Removed(28) ‘injectability’ means the rate at which the storage facility user is entitled to inject gas into the storage facility;

Removed(29) ‘storage capacity’ means any combination of space, injectability and deliverability;

Removed(30) ‘entry-exit system’ means an access model for natural gas transmission or distribution systems where system users book capacity rights independently on entry and exit points;

Removed(31) ‘balancing zone’ means an entry-exit system to which a specific balancing regime is applicable;

Removed(32) ‘virtual trading point’ means a non-physical commercial point within an entry-exit system where gas is exchanged between a seller and a buyer without the need to book transmission or distribution capacity;

Removed(33) ‘entry point’ means a point subject to booking procedures by network users ▌ providing access to an entry-exit system, enabling gas flows in the entry-exit system;

Removed(34) ‘exit point’ means a point subject to booking procedures by network users providing access to an entry-exit system, enabling gas flows out of the entry exit system;

Removed(35) ‘conditional capacity’ means firm capacity that entails transparent and predefined conditions for either providing access from and to the virtual trading point or limited allocability;

Removed(36) ‘allocability’ means the discretionary combination of any entry capacity with any exit capacity or vice versa;

Removed(37) ‘allowed revenue’ means the sum of transmission services revenue and non-transmission services revenue for the provision of services by the transmission system operator for a specific time period within a given regulatory period which such transmission system operator is entitled to obtain under a non-price cap regime and which is set in accordance with Article 72(7), point a, of recast Gas Directive as proposed in COM(2021)xxx;

Removed(38) ‘new infrastructure’ means an infrastructure not completed by ... [entry into force of this Regulation];

Removed(38a) ‘natural gas’ means natural gas as defined in Article 2, point (1) of [the recast Gas Directive, COD 2021/0425];

Removed(38b) ‘renewable gas‘ means renewable gas as defined in Article 2, point (2) of [the recast Gas Directive, COD 2021/0425]

Removed(38c) ‘gas’ means gas as defined in Article 2, point (3) of [the recast Gas Directive, COD 2021/0425];

Removed(38d) ‘natural gas system’ means natural gas system as defined in Article 2, point (4) of [the recast Gas Directive, COD 2021/0425];

Removed(38e) ‘hydrogen system’ means hydrogen system as defined in Article 2, point (5) of [the recast Gas Directive, COD 2021/0425];