Changes from plenary report to adopted text

Removed1. Member States shall ensure that all customers are free to purchase gas from the supplier of their choice and shall ensure that all customers are free to have more than one supply contract for natural gas or hydrogen at the same time, provided that the required connection and metering points are established and do not discriminate against non-gas heating or cooling solutions.

Removed2. Member States shall ensure that their national law promotes a highly energy efficient and renewables-based market, does not unduly hamper cross-border trade in gas, the functioning and emergence of liquid trading for gas, consumer participation, investments into, in particular, renewable gas and low-carbon gas, or energy storage between Member States, and shall ensure that prices for gas reflect actual demand and supply.

RemovedMember States shall ensure that liquid trading for gas is subject to transparency obligations, in particular with regard to commercial contracts, and adequate price building mechanisms.

Removed3. Member States shall ensure that no undue barriers exist within the internal market for gas as regards market entry and exit, trading and operation.

Removed4. Member States shall ensure that energy undertakings are subject to transparent, proportionate and non-discriminatory rules, fees and treatment, in particular with regard to connection to the network, access to wholesale markets, access to data, switching processes and billing regimes and, where applicable, licensing.

Removed5. Member States shall ensure that market participants from third countries, when operating within the internal market for gas, comply with applicable Union and national law.

Removed5a. Member States shall ensure a customer-centred and energy efficient approach in the hydrogen market. The use of renewable fuels and low-carbon fuels in the hydrogen network shall be prioritised for industrial customers in hard-to-decarbonise sectors with the highest greenhouse gas abatement potential, where more energy and cost efficient options are not available, including in hard to abate transport, such as maritime and aviation.

RemovedArticle 3a EU indicative greenhouse gas intensity reduction target of the 2030 gas supply

Removed1. By ... [6 months of the date of entry into force of this Directive] the Commission shall present a report that investigates the effect of current energy and climate legislation in delivering renewable gas and low- carbon gas especially to end-users in hard-to-decarbonise sectors with the highest greenhouse gas abatement potential where no other more energy and cost- efficient options are available, compatibly with the capacities as identified in the network development plans as set out in Article 51 and distribution network development plans as set out in Article 52b and assess whether further measures at Union level are needed to ensure that sufficient volumes of renewable gas and low- carbon gas come to the market to meet the demand by 2030, while contributing to the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

Removed2. Based on the report, the Commission shall, at the latest 6 months after its publication, where appropriate, put forward a legislative proposal to introduce measures, such as an indicative EU level target for the reduction of the greenhouse gas intensity of gas consumed in the Union by 2030. The use of dedicated hydrogen networks shall be considered. Without prejudice to the prioritisation of renewable gas, the target shall be considered addition to all relevant provisions in Directive [RED II and RED III] and Directive [EED], consistent with all relevant energy and climate legislation and take into account security of supplies and quality requirements for cross-border f gas. When calculating the target, the gradual phase-out of fossil gas and the assumed reduction of demand for gas in sectors other than hard-to-decarbonise sectors where no other more energy or cost efficient options are available shall be taken into account. The Commission accompany the proposal with a delegated act specifying the methodology for calculating and certifying the achievement of such target.

Removed3. The Commission shall also specify the way Member States collectively aim at ensuring that the EU indicative greenhouse gas intensity reduction target is met, also by differentiated sectoral approaches, and how it shall be integrated in their national energy and climate plan.

Removed1. Suppliers shall be free to determine the price at which they supply gas to customers. Member States shall take appropriate actions to ensure effective competition between supply undertakings and to avoid abuses of dominant positions as well as speculative and manipulative behaviour, to ensure fair prices for the final customers, as well as to ensure a level playing field between gas, electricity and thermal renewables.

Removed1a. If there is evidence of market abuse in the retail market, Member States shall ensure that the relevant national authority intervenes immediately, including with regard to limiting the margins and profits of the undertaking concerned.

Removed2. Member States shall ensure the protection of ▌vulnerable household customers and customers affected by or at risk of energy poverty pursuant to Articles 25 by social policy or by other means than public interventions in the price setting for the supply of gas.

Removed3. By way of derogation from paragraphs 1 and 2, Member States may apply public interventions in the price setting for the supply of natural gas to ▌ vulnerable household customers and customers affected by or at risk of energy poverty. Such public interventions shall be subject to the conditions set out in paragraphs 4, 4a and 5.

Removed4. Public interventions in the price setting for the supply of natural gas shall:

Removed(a) pursue a general economic interest and not go beyond what is necessary to achieve that general economic interest;

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

Removed(c) guarantee equal access for Union natural gas undertakings to customers;

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

Removed(e) not result in additional costs for market participants in a discriminatory way;

Removed(ea) not hamper the transition to an integrated, highly energy efficient and renewables-based energy system in accordance with the relevant Union targets, law and strategies.

Removed4a. When applying public interventions in price setting for the supply of natural gas in accordance with paragraph 3 or 6, Members States shall provide all of the following:

Removed(a) financial and administrative support to beneficiaries for the purpose of investing in energy efficiency and renewable energy technologies;

Removed(b) decent and affordable social housing;

Removed(c) housing which complies with minimum energy performance standards;

Removed(d) access to information and advice on energy efficiency and renewable energy technologies.

Removed5. Any Member State applying public interventions in the price setting for the supply of natural gas in accordance with paragraph 3 of this Article shall also comply with of Article 3(3), point (d) and with Article 24 of Regulation (EU) 2018/1999, regardless of whether the Member State concerned has a significant number of households affected by energy poverty. An adequate regulatory and financial support framework shall be put in place to effectively address customers affected by or at risk of energy poverty prior to the removal of public interventions in the price setting for the supply of natural gas.

Removed6. For the purpose of a transitional period to establish effective competition for natural gas supply contracts between suppliers, and to achieve fully effective market-based and affordable retail pricing of gas in accordance with paragraph 1 of this Article, Member States may apply public interventions in the price setting for the supply of natural gas to household customers and to microenterprises that do not benefit from public interventions pursuant to paragraph 3 of this Article, as well as, in exceptional circumstances, to other limited number of customer groups, such as protected customers as defined in Article 2, point (5), of Regulation (EU) 2017/1938, in order to avoid significant impact on the economy and society.

Removed7. Public interventions pursuant to paragraph 6 shall comply with the criteria set out in paragraphs 4 and 4a and shall:

Removed(a) be accompanied by a set of measures to achieve effective competition and a methodology for assessing progress with regard to those measures;

Removed(b) be set using a methodology that ensures non-discriminatory treatment of suppliers;

Removed(c) be set at a price that is above cost, at a level where effective price competition can occur;

Removed(d) be designed to minimise any negative impact on the wholesale natural gas market;

Removed(e) ensure that all beneficiaries of such public interventions have the possibility to choose competitive market offers and are directly informed at least every quarter of the availability of offers and savings in the competitive market, and shall ensure that they are provided with assistance to switch to a market-based offer;

Removed(f) ensure that, pursuant to Articles 18 and 19, all beneficiaries of such public interventions are entitled to, and are offered to, have smart meters installed at no extra upfront cost to the customer, are directly informed of the possibility of installing smart meters and are provided with necessary assistance;

Removed(g) not lead to direct cross-subsidisation between customers supplied at free market prices and those supplied at regulated supply prices.

Removed8. Member States shall notify the measures taken in accordance with paragraphs 3 and 6 to the Commission within one month after their adoption and may apply them immediately. The notification shall be accompanied by an explanation of why other instruments were not sufficient to achieve the objective pursued, of how the requirements set out in paragraphs 4, 4a, 5 and 7 are fulfilled and of the effects of the notified measures on competition. The notification shall describe the scope of the beneficiaries, in particular vulnerable household customers and customers affected by or at risk of energy poverty, as well as potential other beneficiaries, the duration of the measures and the number of household customers affected by the measures, and shall explain how the regulated prices have been determined.

Removed9. From 15 March 2025, and every two years thereafter, as part of the integrated national energy and climate progress reports, Member States shall submit reports to the Commission on the implementation of this Article, the necessity and proportionality of public interventions under this Article, and an assessment of the progress towards achieving effective competition between suppliers and the transition to market-based prices. Member States that apply regulated prices in accordance with paragraph 6 shall report on the compliance with the conditions set out in paragraph 7, including on compliance by suppliers that are required to apply such interventions, as well as on the impact of regulated prices on the finances of those suppliers.

Removed10. The Commission shall review and submit a report to the European Parliament and to the Council on the implementation of this Article for the purpose of achieving market-based retail pricing of natural gas, together with or followed by a legislative proposal, if appropriate. That legislative proposal may include an end date for regulated prices. That report shall, where appropriate, include an assessment of the impact of those measures on the progress in achieving the Union’s climate neutrality objective and the other energy and climate objectives laid down in applicable Union energy law. That report may be combined with the report on the implementation of Article 5 of Directive (EU) 2019/944. ▌

Removed1. Member States shall ensure, on the basis of their institutional organisation and with due regard to the principle of subsidiarity, that, without prejudice to paragraph 2, natural gas and hydrogen undertakings are operated in accordance with the principles of this Directive with a view to achieving a competitive, secure and environmentally sustainable gas market. Member States shall not discriminate between those undertakings as regards their rights or obligations and shall not discriminate between undertakings providing the same services on the basis of renewables or by means of electrification directly from renewables.

Removed2. Having full regard to the relevant provisions of the TFEU, in particular Article 106 thereof, Member States may impose on natural gas and hydrogen undertakings, in the general economic interest, public service obligations which may relate to security, including security of supply, regularity, ▌quality and price of supplies, and environmental protection, including energy efficiency, energy from renewable sources and climate protection and existing requirements to reduce or switch from fossil gas consumption. Such obligations shall be clearly defined, transparent, non-discriminatory, verifiable and shall guarantee equality of access for natural gas undertakings and hydrogen undertakings of the Union to national consumers. Public service obligations which concern public interventions in the price setting for the supply of gas shall comply with the requirements set out in Article 4. As regards the security of supply, energy efficiency/demand-side management and for the fulfilment of environmental goals and goals for energy from renewable sources, as referred to in this paragraph, Member States may introduce the implementation of long-term planning, taking into account the possibility of third parties seeking access to the system.

Removed3. Public service obligations related to the security of gas supply shall not go beyond what is necessary to ensure compliance of natural gas undertakings with the gas supply standards pursuant to Article 6 of Regulation (EU) 2017/1938 and shall be coherent with the results of the national risk assessments carried out pursuant to Article 7(3), as detailed in the Preventive Action Plans prepared pursuant to Article 9(1), points (c), (d) and (k) of that Regulation.

Removed4. Where financial compensation or other forms of compensation are granted by a Member State for the fulfilment of the obligations set out in this Article, it shall be done in a non-discriminatory and transparent way.

Removed5. Member States shall, upon implementation of this Directive, inform the Commission of all measures adopted to fulfil public service obligations, including consumer and environmental protection, and their possible effect on national and international competition, whether or not such measures require a derogation from the provisions of this Directive. They shall notify the Commission subsequently every two years of any changes to such measures, whether or not they require a derogation from this Directive.

Removed5a. Any measure adopted to fulfil public service obligations pursuant to this Article shall promote the energy efficiency first principle and further energy system integration, contribute to the prudent and rational use of natural resources and contribute to achieving the Union’s climate and energy targets and the integrated national energy and climate plan and long-term strategy adopted under Regulation (EU) 2018/1999.

Removed5b. Member States shall consult relevant stakeholders when imposing or adopting a measure to fulfil public service obligations pursuant to this Article. Without prejudice to other consultation or transparency provisions laid down in Union or national law, those consultations shall take place at an early stage and in an open, inclusive and transparent manner. The participation in consultations shall be voluntary and all relevant stakeholders shall be invited, including regulatory authorities, the transmission and distribution system operator, associations and undertakings involved in production, supply and consumption of electricity, gas and hydrogen markets, heating and cooling, independent aggregators, demand-response operators, organisations involved in energy efficiency solutions, energy consumer associations, civil society representatives, research organisations and universities, where appropriate.

RemovedThe consultations shall aim to identify the views and proposals of all relevant stakeholders during the decision-making process as well as informing relevant stakeholders about the objectives of the measure referred to in the first subparagraph, why it is necessary and how it contributes to achieving the Union’s climate and energy targets.

RemovedAll official documents related to the consultations and documents used for development of the measure shall be made public while preserving the confidentiality of commercially sensitive information and data protection.

RemovedTo ensure early and effective participation in the consultations of the stakeholders referred to in the first subparagraph, Member States shall publish a draft decision or measure in a timely, adequate manner prior to its adoption, to allow the stakeholders provide their comments.

Removed1. Member States as well as the regulatory authorities shall cooperate with each other for the purpose of integrating their national markets at one and more regional levels, towards the creation of regional markets, where Member States as well regulatory authorities so decided, and further towards the creation of a fully liberalised internal market. In particular, the regulatory authorities where Member States have so provided or Member States shall promote and facilitate the cooperation of natural gas transmission system operators and hydrogen network operators at a regional level, including on cross-border issues and on the decommissioning of assets, with the aim of ensuring cost-effective decarbonisation and creating a competitive internal market for gas, foster the consistency of their legal, regulatory and technical framework and facilitate integration of the isolated systems forming gas islands that persist in the Union. The geographical areas covered by such regional cooperation shall include cooperation in geographical areas defined in accordance with Article 28(3) of Recast Gas Regulation as proposed in COM(2021) 804 final. Such cooperation may cover other geographical areas. Where the Commission considers that the rules at Union level are relevant for the regional integration of markets for gas, it shall provide appropriate guidance taking into account the specificities of these markets and the impact on neighbouring markets.

Removed2. The Agency for the Cooperation of Energy Regulators (‘ACER’) shall cooperate with regulatory authorities and transmission system operators to ensure the compatibility of regulatory frameworks between and within the regions with the aim of creating a competitive internal market in gas that is compatible with the Union’s climate neutrality objective. Where ACER considers that binding rules on such cooperation are required, it shall make appropriate recommendations.

Removed3. Where vertically integrated transmission system operators participate in a joint undertaking established for implementing such cooperation, the joint undertaking shall establish and implement a compliance programme which sets out the measures to be taken to ensure that discriminatory and anticompetitive conduct is excluded. That compliance programme shall set out the specific obligations of employees to meet the objective of excluding discriminatory and anticompetitive conduct. It shall be subject to the approval of ACER. Compliance with the programme shall be independently monitored by the compliance officers of the vertically integrated transmission system operators.

Removed1. In circumstances where an authorisation (for example, a licence, permission, concession, consent or approval) is required for the construction, or operation of natural gas facilities, hydrogen production facilities and hydrogen system infrastructure, the Member States or any competent authority they designate shall grant authorisations to build and/or operate such facilities, infrastructure, pipelines and associated equipment on their territory, in accordance with paragraphs 2 to 11. Member States or any competent authority they designate may also grant authorisations on the same basis for the supply of gas and for wholesale customers.

Removed2. Where Member States have a system of authorisation, they shall lay down objective and non-discriminatory criteria, and transparent procedures as referred to in Articles 51(8a) and 52b(2) which shall be met when an undertaking applies for an authorisation to supply gas or to construct and/or operate natural gas facilities, hydrogen production facilities or hydrogen system infrastructure. The non-discriminatory criteria and procedures for the granting of authorisations shall be made publicly available. Member States shall ensure that authorisation procedures for such facilities, infrastructure, pipelines and associated equipment take into account the importance of the project for the internal market for gas where appropriate.

Removed2a. Member States shall ensure that any national rules concerning the authorisation procedure referred to in this Article are proportionate and necessary, contribute to the implementation of the energy efficiency first principle and contribute to achieving the Union’s climate and energy targets and the Member State’s integrated national energy and climate plan as well as to their long-term strategies adopted under Regulation (EU) 2018/1999.

Removed3. The authorisation procedures for the activities referred to in paragraph 1 shall not exceed two years, including all relevant procedures of competent authorities, without prejudice to the rules applicable under Directive (EU) 2018/2001 [amended RED]. Where duly justified on the grounds of extraordinary circumstances, that two-year period may be extended by up to one year.

Removed4. Member States shall assess which legislative and non-legislative measures are necessary to streamline authorisation procedures, including, without hampering, any procedural steps related to environmental impact assessment procedures and public consultations. Member States shall report to the European Commission on the results of such an assessment as part of their integrated national energy and climate plans as referred to in, and in accordance with, the procedure set out in Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999, and as part of their integrated national energy and climate progress reports pursuant to Article 17 of Regulation (EU) 2018/1999.

Removed5. The deadlines established in paragraph 3 shall apply without prejudice to obligations under applicable Union environmental and energy law, such as Directive (EU) 2018/2001 [amended RED], to judicial appeals, remedies and other proceedings before a court or tribunal, and to alternative dispute resolution mechanisms, including complaints procedures, non-judicial appeals and remedies, and may be extended for the duration of such procedures.

Removed6. Member States shall set up or designate one or more contact points. Those contact points shall, upon request by the applicant, and free of charge, guide through and facilitate the entire authorisation procedure for the activities referred to in paragraph 1 up to the delivery by the responsible authorities at the end of the procedure. The applicant shall not be required to contact more than one contact point for the entire process.