Changes from plenary report to adopted text

RemovedFollowing a transparent procedure, Member States shall designate, or shall require undertakings which own or are responsible for distribution systems or hydrogen distribution networks to designate, for a period of time to be determined by Member States, having regard to considerations of efficiency, the Union’s climate and energy targets and economic balance, one or more distribution system operators or hydrogen distribution network operators and shall ensure that those operators act in accordance with Articles 40, 42 and 43.

Removed1. Each distribution system operator shall be responsible for ensuring the long-term ability of the system to meet reasonable demands for the distribution of gas in accordance with Articles 51 and 52b, including for biogas and biomethane assets, and for operating, maintaining, developing and decommissioning under economic conditions a secure, reliable and efficient system in its area, with due regard for the environment, the obligations laid down in ▌ Regulation (EU) .../…+ and energy efficiency.

Removed2. When so decided by regulatory authorities, distribution system operators may be responsible for ensuring efficient gas quality management in their facilities in line with applicable gas quality standards, where necessary for system management due to the injection of renewable gas and low-carbon gas.

Removed3. In any event, the distribution system operator shall not discriminate between system users or classes of system users, particularly in favour of its related undertakings.

Removed4. Each distribution system operator shall provide any other distribution, transmission, LNG, and/or storage system operator with sufficient information to ensure that the transport and storage of natural gas takes place in a manner compatible with the secure and efficient operation of the interconnected system.

Removed5. Each distribution system operator shall provide system users with the information they need for efficient access to, including use of, the system.

Removed6. Where a distribution system operator is responsible for balancing the distribution system, rules adopted by it for that purpose shall be objective, transparent and non-discriminatory, including rules for the charging of system users for energy imbalance. Terms and conditions, including rules and tariffs, for the provision of such services by distribution system operators shall be established pursuant to a methodology compatible with Article 72(7) in a non-discriminatory and cost-reflective way and shall be published.

Removed7. Distribution system operators shall cooperate with transmission system operators to ensure the effective participation of market participants connected to their grid in retail, wholesale and balancing market in the entry-exit system to which the distribution system belongs to.

Removed8. The distribution system operators shall establish and publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable gas and low-carbon gas. Those procedures shall be subject to approval by the regulatory authorities.

Removed9. The distribution system operators shall not be entitled to refuse economically reasonable and technically feasible connection requests of a new or existing but not yet connected production facility installation for renewable gas and low-carbon gas in accordance with the Union energy and climate objectives and the capacities identified in the distribution network plans referred to in Article 52b. Production facilities for renewable gas shall have priority to connect over production facilities for low carbon gas.

RemovedArticle 41 Decision-making powers regarding the connection of new production facilities for renewable gas and low-carbon gas to the distribution system

RemovedRegulatory authorities shall oblige the distribution system operator to publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable gas and low-carbon gas. Those procedures shall be subject to approval by the regulatory authorities.

RemovedFor the purpose of the swift implementation of network connection of renewable gas production, Member States shall ensure that:

Removed(a) the distribution system operator complies with reasonable time limits to assess the requests for the injection of renewable gas, make an offer and implement the connection, under the monitoring of the regulatory authorities carried out in accordance with Article 72(1), point (t);

Removed(b) permitting procedures for the implementation of the connection are not hampered by a lack of administrative capacity and that do not create a hurdle to the achievement of the national renewable energy target.

RemovedArticle 42 Unbundling of distribution system operators and hydrogen distribution network operators

Removed1. Where the distribution system operator or the hydrogen distribution network operator is part of a vertically integrated undertaking, it shall be independent at least in terms of its legal form, organisation and decision making from other activities not relating to distribution. Those rules shall not create an obligation to separate the ownership of assets of the distribution system or the hydrogen distribution network from the vertically integrated undertaking.

Removed2. In addition to the requirements under paragraph 1, where the distribution system operator or the hydrogen distribution network operator is part of a vertically integrated undertaking, it shall be independent in terms of its organisation and decision-making from the other activities not related to distribution. In order to achieve this, the following minimum criteria shall apply:

Removed(a) the persons responsible for the management of the distribution system operator or the hydrogen distribution network operator shall not participate in company structures of the integrated natural gas undertaking or the vertically integrated undertaking responsible, directly or indirectly, for the day-to-day operation of the production, transmission, transportation and supply of gas;

Removed(b) appropriate measures shall be taken to ensure that the professional interests of persons responsible for the management of the distribution system operator or the hydrogen distribution network operator are taken into account in a manner that ensures that they are capable of acting independently;

Removed(c) the distribution system operator or the hydrogen distribution network operator shall have effective decision-making rights, independent from the integrated natural gas undertaking or the vertically integrated undertaking, with respect to assets necessary to operate, maintain or develop the network; in order to fulfil those tasks, the distribution system operator or the hydrogen distribution network operator shall have at its disposal the necessary resources including human, technical, financial and physical resources; this shall not prevent the existence of appropriate coordination mechanisms to ensure that the economic and management supervision rights of the parent company in respect of return on assets, regulated indirectly in accordance with Article 72(7) in a subsidiary are protected; in particular, this shall enable the parent company to approve the annual financial plan, or any equivalent instrument, of the distribution system operator or the hydrogen distribution network operator and to set global limits on the levels of indebtedness of its subsidiary; it shall not permit the parent company to give instructions regarding day-to-day operations, nor with respect to individual decisions concerning the construction or upgrading of distribution lines, that do not exceed the terms of the approved financial plan, or any equivalent instrument;

Removed(d) the distribution system operator or the hydrogen distribution network operator shall establish a compliance programme, which sets out measures taken to ensure that discriminatory conduct is excluded, and ensure that observance of it is adequately monitored; the compliance programme shall set out the specific obligations of employees to meet that objective; an annual report, setting out the measures taken, shall be submitted by the person or body responsible for monitoring the compliance programme, the compliance officer of the distribution system operator or the hydrogen distribution network operator, to the regulatory authority referred to in Article 70(1) and shall be published; the compliance officer of the distribution system operator or the hydrogen distribution network operator shall be fully independent and shall have access to all the necessary information of the distribution system operator or hydrogen distribution network operator and any affiliated undertaking to fulfil his task.

Removed3. Where the distribution system operator or the hydrogen distribution network operator is part of a vertically integrated undertaking, the Member States shall ensure that the activities of the distribution system operator or the hydrogen distribution network operator are monitored by regulatory authorities or other competent bodies so that it cannot take advantage of its vertical integration to distort competition. In particular, vertically integrated distribution system operators or the hydrogen distribution network operators shall not, in their communication and branding, create confusion in respect of the separate identity of the supply branch of the vertically integrated undertaking.

Removed3a. The distribution system operator and the hydrogen distribution network operator shall comply with Articles 64 and 69.

Removed4. Member States may decide not to apply paragraphs 1, 2 and 3 to integrated natural gas undertakings serving less than 100 000 connected customers.

Removed1. Without prejudice to Article 68 or any other legal duty to disclose information, each distribution system operator shall preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its business, and shall prevent information about its own activities which may be commercially advantageous from being disclosed in a discriminatory manner.

Removed2. Distribution system operators shall not, in the context of sales or purchases of natural gas by related undertakings, abuse commercially sensitive information obtained from third parties in the context of providing or negotiating access to the system.

Removed1. Member States may provide for regulatory authorities or other competent authorities to classify a system which distributes natural gas within a geographically confined industrial, commercial or shared services site and does not, without prejudice to paragraph 4, supply household customers, as a closed distribution system if:

Removed(a) for specific technical or safety reasons, the operations or the production process of the users of that system are integrated; or

Removed(b) that system distributes natural gas primarily to the owner or operator of the system or to their related undertakings.

Removed2. Member States may provide for regulatory authorities to exempt the operator of a closed natural gas distribution system from the requirement under Article 27(1) that tariffs, or the methodologies underlying their calculation, are approved prior to their entry into force in accordance with Article 72.

Removed3. Where an exemption is granted under paragraph 2, the applicable tariffs, or the methodologies underlying their calculation, shall be reviewed and approved in accordance with Article 72 upon request by a user of the closed natural gas distribution system.

Removed4. Incidental use by a small number of households with employment or similar associations with the owner of the distribution system and located within the area served by a closed distribution system shall not preclude an exemption under paragraph 2 being granted.

Removed5. Closed distribution systems shall be considered as distribution systems for the purposes of this Directive.

RemovedArticle 44(1) shall not prevent the operation of a combined transmission system, hydrogen network, LNG system, hydrogen terminal, natural gas and hydrogen storage and distribution system operator provided that the operator complies with Articles 64 and 69 as well as Article 54(1), ▌Articles 55 and 56, ▌Chapter IX, or Article 62.

RemovedRules applicable to the dedicated hydrogen networks

Removed1. Each operator of hydrogen networks, storage or terminal shall be responsible for:

Removed(a) operating, maintaining, developing, including repurposing, under economic conditions a secure and reliable infrastructure for hydrogen transport or storage with due regard to the environment, in close cooperation with connected and neighbouring hydrogen network operators and on the basis of the ten-year network development plan referred to in Article 51;

Removed(b) ensuring the long-term ability of the hydrogen system to meet identified reasonable demands for the transport and storage of hydrogen in accordance with the ten-year network development plan referred to in Article 51;

Removed(c) ensuring adequate means to meets its obligations;

Removed(d) providing to the operator of other networks or systems with which its system is interconnected sufficient information, including on hydrogen quality, to ensure the secure and efficient operation, coordinated development and interoperability of the interconnected system;

Removed(e) not discriminating between system users or classes of infrastructure users, specifically in favour of its related undertakings; and

Removed(f) providing system users with the information they need for efficient access to the infrastructure;

Removed(g) taking all necessary measures available to prevent and minimise hydrogen emissions in their operations and carrying out, at regular intervals, a hydrogen leak detection and repair survey of all relevant components under the operator responsibility;

Removed(h) submitting a hydrogen leak detection report and, where necessary, a repair or replacement programme to the competent authorities; data on hydrogen leaks and repairs shall be made publicly available;

Removed(ha) coordinating the activities with other hydrogen network operators in order to optimise co-location of production and use of hydrogen.

Removed2. Each hydrogen network operator shall build sufficient cross-border capacity to integrate European hydrogen infrastructure accommodating, where it is economically reasonable and technically feasible, all demands along the capacity identified in the ten-year network development plan referred to in Article 51 and the Union-wide network development plan referred to in Article 23 of [recast Gas Regulation as proposed in COM(2021) xxx] and taking into account security of hydrogen supply. This paragraph shall not apply to hydrogen distribution network operators unless they operate cross-border infrastructure.

Removed3. Hydrogen network operators shall be responsible for ensuring efficient hydrogen quality management in their networks in line with applicable hydrogen quality standards, to meet the quality requirements of different end-use applications and subject to the approval of the regulatory authority.

Removed3a. Hydrogen network operators shall be required to ensure stable hydrogen quality for end-users, in particular in hard-to-decarbonise sectors, by applying applicable hydrogen quality standards.

Removed1. Member States may decide to grant a derogation from the requirements of Articles 31, 42, 62 ▌ and 64 of this Directive, and Articles 6 and 47 of [recast Gas Regulation as proposed in COM(2021) xxx] to hydrogen networks that belonged to a vertically integrated undertaking on [date of entry into force]. The derogation shall be limited in scope to the network capacity in operation on [date of entry into force].

Removed2. The derogation shall be limited in time and shall expire:

Removed(a) where the vertically integrated undertaking submits a request to the regulatory authority to end the derogation and such request is approved by the regulatory authority;

Removed(b) where the hydrogen network benefitting from the derogation is connected to another hydrogen network;

Removed(c) where the hydrogen network benefitting from the derogation or its capacity is expanded;

Removed(d) at the latest on 31 December 2030.

Removed1. Member States may provide for regulatory authorities to grant a derogation from Article 42 or 62 for hydrogen networks which transport hydrogen from one entry point to a limited number of exit points within a geographically confined, industrial or commercial area.

RemovedBefore granting a derogation pursuant to the first subparagraph, the regulatory authorities shall take into account the connection to the hydrogen network of end-users in hard-to decarbonise sectors with the highest greenhouse gas abatement potential where no other more energy or cost efficient alternatives are available.

Removed2. The derogations under paragraph 1 shall apply at least until 31 December 2030. As from 1 January 2031, the derogation shall expire when one of the conditions below is fulfilled:

Removed(a) where a competing renewable hydrogen producer wants to get access to the network;

Removed(b) where the exempted hydrogen network becomes connected to another hydrogen network.