Changes from report parliamentary committee draft to plenary report

Added(49) ‘gas supply contract’ means a contract for the supply of gas, excluding a gas derivative;

Added(50) ‘gas derivative’ means a financial instrument specified in point 5, 6 or 7 of Section C of Annex I to Directive 2014/65/EU of the European Parliament and of the Commission where that financial instrument relates to gas;

Added(51) ‘control’ means any rights, contracts or any other means which, either separately or in combination and having regard to the considerations of fact or law involved, confer the possibility of exercising decisive influence on an undertaking, in particular by:

Added(a) ownership or the right to use all or part of the assets of an undertaking;

Added(b) rights or contracts which confer decisive influence on the composition, voting or decisions of the organs of an undertaking;

Added(52) ‘long-term contract’ means a supply contract exceeding one year;

Added(53) ‘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;

Added(54) ‘balancing zone’ means an entry-exit system to which a specific balancing regime is applicable, including distribution systems or parts of them;

Added(55) ‘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 ▌ capacity;

Added(56) ‘entry point’ means a point subject to booking procedures by network users which provides access to an entry-exit system and enables gas flows in the entry-exit system;

Added(57) ‘exit point’ means a point subject to booking procedures by network users which provides access to an entry-exit system and enables gas flows out of the entry exit system;

Added(58) ‘interconnection point’ means a physical or virtual point which connects adjacent entry-exit systems or connecting an entry-exit system with an interconnector, in so far as those points are subject to booking procedures by network users;

Added(59) ‘virtual interconnection point’ means two or more interconnection points which connect the same two adjacent entry-exit systems, integrated together for the purposes of providing a single capacity service;

Added(60) ‘market participant’ means a natural or legal person who buys, sells or produces gas or who is an operator of storage services including through the placing of orders to trade in one or more gas markets including balancing markets;

Added(61) ‘contract termination fee’ means a charge or penalty imposed on customers by suppliers or market participants ▌ for terminating a gas supply or service contract;

Added(62) ‘switching-related fee’ means a charge or penalty for changing suppliers or market participants, including contract termination fees, that is directly or indirectly imposed on customers by suppliers, market participants or system operators;

Added(63) ‘billing information’ means the information provided on a final customer's bill, excluding any request for payment;

Added(64) ‘conventional meter’ means an analogue or electronic meter with no capability to both transmit and receive data;

Added(65) ‘smart metering system’ means an electronic system that is capable of measuring gas fed into the grid or gas consumed from the grid, providing more information than a conventional meter, and that is capable of transmitting and receiving data for information, monitoring and control purposes, using a form of electronic communication;

Added(66) ‘interoperability’ means, in the context of smart metering, the ability of two or more energy or communication networks, systems, devices, applications or components to interwork to exchange and use information in order to perform required functions;

Added(67) ‘most recent available’ means, in the context of smart metering data, that it is provided within a period matching the shortest settlement period in the national market;

Added(68) ‘best available techniques’ means, in the context of data protection and security in a smart metering environment, the most effective, advanced and practically suitable techniques for providing, in principle, the basis for complying with the Union data protection and security rules;

Added(69) ‘energy poverty’ means a household’s inability linked to meet, due to their unaffordability its basic energy supply needs and lack of access to essential energy services to ensure basic levels of comfort and health and a decent standard of living, including adequate heating and cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies, as a result of an insufficient disposable income, high energy expenditures and poor energy efficiency of homes;

Added▌

Added(71) ‘active customer’ means a final ▌customer of natural gas, or a group of jointly acting final ▌customers of natural gas, who consumes or stores renewable gas which is produced within its premises located within confined boundaries or, where permitted by the Member State concerned, within other premises, or who sells self-produced renewable gas using the natural gas system, or who participates in energy efficiency schemes, provided that those activities do not constitute the final customer’s primary commercial or professional activity;

Added(71a) 'energy efficiency first’ means energy efficiency first as defined in Article 2, point (18), of Regulation (EU) 2018/1999;

Added(71b) 'dedicated hydrogen asset’ means dedicated hydrogen asset as defined Article 2, point (17), of Regulation (EU) 2022/869;

Added(71c) 'repurposing’ means repurposing as defined Article 2, point (18), of Regulation (EU) 2022/869.

AddedGeneral rules for the organisation of the market

Added1. 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.

Added2. 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.

AddedMember 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.

Added3. Member States shall ensure that no undue barriers exist within the internal market for gas as regards market entry and exit, trading and operation.

Added4. 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.

Added5. 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.

Added5a. 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.

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

Added1. 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.

Added2. 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.

Added3. 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.

Added1. 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.

Added1a. 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.

Added2. 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.

Added3. 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.

Added4. Public interventions in the price setting for the supply of natural gas shall:

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

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

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

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

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

Added(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.

Added4a. 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:

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

Added(b) decent and affordable social housing;

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

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

Added5. 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.

Added6. 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.

Added7. Public interventions pursuant to paragraph 6 shall comply with the criteria set out in paragraphs 4 and 4a and shall:

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