Changes from report parliamentary committee draft to plenary report

Added3a. Member States shall regularly assess the functioning of their out-of-court dispute settlement mechanisms, in particular with regard to the participation and compliance of energy service providers, intermediaries and distribution system operators.

AddedArticle 25 Protection of vulnerable customers and customers affected by or at risk of energy poverty and suppliers of last resort

AddedMember States shall ▌protect final customers, and shall, in particular, ensure that there are adequate safeguards to protect vulnerable customers and customers affected by or at risk of energy poverty. In this context, the term vulnerable customers is defined pursuant to Article 28 of Directive (EU) 2019/944.

AddedMember States shall refer to the definition of energy poverty in Directive (EU) .../... for the purpose of adopting a comparable definition of customers affected by or at risk of energy poverty. For the purpose of implementing the concept of energy poverty, Member States shall take into account the indicators and guidance set out in the Commission Recommendation on Energy Poverty and at least the following, namely the proportion of people whose:

Added(a) share of energy costs in proportion to their disposable income, after deducting housing costs, is more than double the national median share;

Added(b) share of disposable income spent on energy services is above the national median and the disposable income after energy and housing costs is equal to or below the "risk of poverty" threshold;

Added(c) absolute energy expenditure is lower than half of the national median energy expenditure.

AddedMeasures to address energy poverty and to protect vulnerable customers and customers affected by or at risk of energy poverty may include support to ensure the necessary energy supply, to deploy renewable energy and improve energy efficiency, including building renovations, to sustainably overcome vulnerability and energy poverty. Measures ▌ may also include, inter alia, ▌the prohibition of disconnection to such customers in critical times, and in any event during the winter.

AddedIn particular, Member States shall take appropriate measures to protect final customers in remote areas who are already connected to the natural gas system or hydrogen system. Member States shall appoint a supplier of last resort for household customers, and, where Member States deem it to be appropriate, small enterprises connected to the natural gas or hydrogen systems. Member States shall take appropriate measures where vulnerable customers or customers affected by or at risk of energy poverty are unable to pay the supplier of last resort. Member States shall ensure ▌consumer protection, in particular with respect to transparency regarding contractual terms and conditions, general information and dispute settlement mechanisms.

AddedFor final customers who are vulnerable or affected by or at risk of energy poverty, including those who are not connected to the natural gas or hydrogen systems, Member States shall, without delay, adopt measures to ensure their energy security, prioritising the most energy efficient and sustainable options.

AddedThe measures laid down in this Article shall not impede the effective opening of the market set out in Article 4 or market functioning. Member States shall notify the measures adopted to implement this Article to the Commission, where relevant, in accordance with Article 5. Such notifications may include measures taken within the general social security system.

AddedWithout prejudice to the reporting framework set out in Regulation (EU) 2018/1999, the Commission shall, by ... [two years after the date of entry into force of this Directive] and every two years thereafter, adopt and make publicly available a report mapping the level of energy poverty and risk of energy poverty in each Member State and per NUTS3 level.

AddedThe report shall include at least the following elements:

Added(a) an assessment of the situation and developments of energy prices in the Union and in the Member States and the impact on households affected by or at risk of energy poverty and on how energy prices impact their energy security, including an assessment of whether changes in retail energy prices are due to an ineffective implementation of this Directive and of the lack of adequate market conditions, including insufficient competition between suppliers or anti-competitive conducts;

Added(b) an assessment of the underlying conditions for the emergence of energy poverty, including an assessment of whether energy poverty is due to lack of infrastructure capacity, income situations or housing conditions;

Added(c) a detailed mapping of social instruments and measures implemented in Member States to address energy poverty including measures referred to in Article 25.

AddedThe Commission shall use, inter alia, the criteria set out in Article 25, in addition to the indicators and guidance illustrated in the Commission Recommendation on energy poverty, to identify and report on the number of households that are affected by or at risk of energy poverty.

AddedThird party access to infrastructure

AddedAccess to natural gas infrastructure

AddedMember States shall enable the access of renewable gas and low-carbon gas to the market and infrastructure regardless whether the renewable gas and low-carbon gas production facilities are connected to distribution or transmission networks, provided that such access is considered to be beneficial in line with the ten-year network development plan referred to in Article 52.

AddedArticle 27 Third-party access to natural gas distribution and transmission and LNG terminals

Added1. Member States shall ensure the implementation of a system of third party access to the transmission and distribution system, and LNG facilities based on published tariffs, applicable to all customers, including supply undertakings, and applied objectively and without discrimination between system users. Member States shall ensure that those tariffs, or the methodologies underlying their calculation, are approved prior to their entry into force in accordance with Article 72 by a regulatory authority referred to in Article 70 and that those tariffs — and the methodologies, where only methodologies are approved — are published prior to their entry into force. ▌

Added2. The provisions of this Directive shall not prevent the conclusion of long-term contracts for renewable gas and low-carbon gas in so far as they comply with Union competition rules and contribute to decarbonisation. No long-term contracts for supply of unabated fossil gas shall be concluded with a duration beyond the end of year 2049. The end-date may be revised in order to align with relevant changes in the Union’s energy and climate objectives, taking into account the security of supply and without prejudice to long-term contracts that have been concluded.

Added▌

Added1. Member States shall take the necessary measures to ensure that natural gas undertakings and eligible customers, wherever they are located, are able to obtain access to upstream pipeline networks, including facilities supplying technical services incidental to such access, in accordance with this Article, except for the parts of such networks and facilities which are used for local production operations at the site of a field where the gas is produced. The measures shall be notified to the Commission in accordance with the provisions of Article 88.

Added2. The access referred to in paragraph 1 shall be provided in a manner determined by the Member State in accordance with the relevant legal instruments. Member States shall apply the objectives of fair and open access, achieving a competitive market in natural gas and avoiding any abuse of a dominant position, taking into account security and regularity of supplies, capacity which is or can reasonably be made available, and environmental protection. The following needs may be taken into account:

Added(a) the need to refuse access where there is an incompatibility of technical specifications which cannot reasonably be overcome;

Added(b) the need to avoid difficulties which cannot reasonably be overcome and could prejudice the efficient, current and planned future production of hydrocarbons, including that from fields of marginal economic viability;

Added(c) the need to respect the duly substantiated reasonable needs of the owner or operator of the upstream pipeline network for the transport and processing of gas and the interests of all other users of the upstream pipeline network or relevant processing or handling facilities who may be affected; and

Added(d) the need to apply their laws and administrative procedures, in conformity with Union law, for the grant of authorisation for production or upstream development.

Added3. Member States shall ensure that they have in place dispute-settlement arrangements, including an authority independent of the parties with access to all relevant information, to enable disputes relating to access to upstream pipeline networks to be settled expeditiously, taking into account the criteria in paragraph 2 and the number of parties which may be involved in negotiating access to such networks.

Added4. In the event of cross-border disputes, the dispute-settlement arrangements for the Member State having jurisdiction over the upstream pipeline network which refuses access shall be applied. Where, in cross-border disputes, more than one Member State covers the network concerned, the Member States concerned shall consult each other with a view to ensuring that the provisions of this Directive are applied consistently. Where the upstream pipeline network originates from a third country and connects to at least one Member State, the Member States concerned shall consult each other and the Member State where the first entry point to the Member States' network is located shall consult the third country concerned where the upstream pipeline network originates, with a view to ensuring, as regards the network concerned, that this Directive is applied consistently in the territory of the Member States.

Added1. For the organisation of access to storage facilities and linepack when technically or economically necessary for providing efficient access to the system for the supply of customers, as well as for the organisation of access to ancillary services, Member States may choose either or both of the procedures referred to in paragraphs 3 and 4. Those procedures shall operate in accordance with objective, transparent and non-discriminatory criteria.

AddedWhen choosing the procedure for access to storage under this Article, Member States shall take into account the results of the common and national risk assessments carried out under Article 7 of Regulation (EU) 2017/1938.

AddedThe regulatory authorities shall define and publish criteria according to which the access regime applicable to storage facilities and linepack may be determined. They shall make public, or oblige storage and transmission system operators to make public, which storage facilities, or which parts of those storage facilities, and which linepack is offered under the different procedures referred to in paragraphs 3 and 4.

Added2. Paragraph 1 shall not apply to ancillary services and temporary storage that are related to LNG facilities and are necessary for the re-gasification process and subsequent delivery to the transmission system.

Added3. In the case of negotiated access, the regulatory authorities shall take the necessary measures for undertakings and eligible customers either inside or outside the territory covered by the interconnected system to be able to negotiate access to storage facilities and linepack, when technically and/or economically necessary for providing efficient access to the system, as well as for the organisation of access to other ancillary services. The parties shall be obliged to negotiate access to storage, linepack and other ancillary services in good faith.

AddedContracts for access to storage, linepack and other ancillary services shall be negotiated with the relevant storage system operator. The regulatory authorities shall require storage system operators and natural gas undertakings to publish their main commercial conditions for the use of storage, linepack and other ancillary services on an annual basis.

AddedWhen developing those conditions, storage operators shall consult system users.

Added4. In the case of regulated access, the regulatory authorities shall take the necessary measures to give natural gas undertakings and eligible customers either inside or outside the territory covered by the interconnected system a right to access to storage, linepack and other ancillary services, on the basis of published tariffs or other terms and obligations for use of that storage and linepack, when technically or economically necessary for providing efficient access to the system, as well as for the organisation of access to other ancillary services. The regulatory authorities shall consult system users when developing those tariffs or the methodologies for those tariffs. The right of access for eligible customers may be given by enabling them to enter into supply contracts with competing undertakings other than the owner or operator of the system or a related undertaking.

Added1. Member States shall take the necessary measures to enable:

Added(a) undertakings established within their territory to supply the eligible customers through a direct line; and

Added(b) any such customer within their territory to be supplied through a direct line by natural gas undertakings.

Added2. In circumstances where an authorisation for example, licence, permission, concession, consent or approval is required for the construction or operation of direct lines, the Member States or any competent authority they designate shall lay down the criteria for the grant of authorisations for the construction or operation of such lines in their territory. Those criteria shall be objective, transparent and non-discriminatory.

Added3. Member States may issue an authorisation to construct a direct line subject either to the refusal of system access on the basis of Article 34 or to the opening of a dispute-settlement procedure under Article 73.

AddedAccess to hydrogen infrastructure

Added1. Member States shall ensure the implementation of a system of regulated third party access to hydrogen networks based on published tariffs and applied objectively and without discrimination between any hydrogen network users. In the event that there is less capacity than potential users, network operators shall, in cooperation with both relevant regulatory authorities and potential users, give priority access to users who can demonstrate the highest potential of greenhouse gas abatement per tonne of consumed hydrogen and where no other, more energy and cost efficient, options are available. This paragraph shall not apply to cases in which access to the hydrogen network has already been granted.

Added2. Member States shall ensure that those tariffs, or the methodologies underlying their calculation, are approved prior to their entry into force in accordance with Article 72 by a regulatory authority referred to in Article 70 and that those tariffs — and the methodologies, where only methodologies are approved — are published prior to their entry into force.

Added3. Hydrogen network operators shall, where necessary for the purpose of carrying out their functions, including in relation to cross-border network transport of hydrogen, have access to the network of other hydrogen network operators.

Added4. Until 31 December 2030, a Member State may decide not to apply paragraph 1. In such case, the Member State shall ensure the implementation of a system of negotiated third party access to hydrogen networks in accordance with objective, transparent and non-discriminatory criteria. The regulatory authorities shall take the necessary measures for hydrogen network users to be able to negotiate access to hydrogen networks. The parties shall be obliged to negotiate access to hydrogen networks in good faith.

Added5. Where negotiated access is used, regulatory authorities shall provide guidance to hydrogen network users on how negotiated tariffs will be affected when regulated third party access is introduced.

Added1. Member States shall ensure the implementation of a system of third party access to hydrogen terminals based on negotiated access in an objective, transparent and non-discriminatory manner, whereby the regulatory authorities shall take the necessary measures for hydrogen terminal users to be able to negotiate access to such terminals. The parties shall be obliged to negotiate access in good faith.

Added2. Regulatory authorities shall monitor conditions for third party access to hydrogen terminals and their impact on hydrogen markets and, where necessary in order to safeguard competition, take measures to improve access in line with the criteria set out in paragraph 1.

AddedMember States shall ensure the implementation of a system of regulated third party access to hydrogen storage, and line pack when technically and/or economically necessary for providing efficient access to the system for the supply of customers, as well as for the organisation of access to ancillary services, based on published tariffs and applied objectively and without discrimination between any hydrogen system users. Member States shall ensure that those tariffs, or the methodologies underlying their calculation, are approved prior to their entry into force in accordance with Article 72 by the regulatory authority.

AddedRefusal of access, connection or disconnection

Added1. Natural gas and hydrogen undertakings may refuse access or connection to the natural gas or hydrogen system on the basis of lack of capacity or grade of purity. Duly substantiated reasons shall be given for any such a refusal.

Added2. Taking into account national and Union energy and climate objectives and existing requirements to reduce or switch from fossil gas consumption, Member States shall, without delay, take appropriate measures to ensure that the natural gas or hydrogen undertaking refusing access or connection to the natural gas system or hydrogen system on the basis of lack of capacity or a lack of connection makes the necessary enhancements as far as it is economic to do so or when a potential customer is willing to pay for them.

Added2a. Natural gas undertakings shall ensure the disconnection of final customers in accordance with Article 11a, taking into account existing requirements to reduce or switch from fossil gas consumption and the relevant local heating and cooling plans prepared pursuant to Article 52a.

Added3. Access to the system for renewable gas and low-carbon gas may only be refused subject to the provisions of Article 18 and 33 of [recast Gas Regulation as proposed in COM(2021) xxx].

AddedRules applicable to transmission, storage and LNG system operators of natural gas