Governance of the Energy Union
Regulation (EU) 2018/1999 on the Governance of the Energy Union
It aims to ensure that the EU’s Energy Union Strategy is implemented in a coordinated and coherent manner across its 5 dimensions.
More broadly, it also aims to ensure that the Energy Union achieves its objectives, in particular the targets of the 2030 policy framework for climate and energy and of the Paris Agreement on climate change.
It repeals Regulation (EU) No 525/2013 on the monitoring and reporting mechanism for greenhouse gas emissions.
KEY POINTS
The Energy Union strategy has 5 dimensions:
energy security;
internal energy market;
energy efficiency;
decarbonisation;
research, innovation and competitiveness.
The regulation has a number of key features:
it requires EU countries to produce a national integrated energy and climate plan for the period 2021 to 2030 by 1 January 2019, and then every 10 years for the following 10-year periods;
it establishes a consultation process between the European Commission and EU countries, and regional cooperation between EU countries, before the plans are finalised, and then every 10 years for the following 10-year periods. For the period to 2030, the plans need to be updated by 30 June 2024;
it requires EU countries to prepare and report to the Commission long-term low-emission strategies with a 50-year perspective, in view of contributing to broader sustainable development goals and the long-term goal set by the Paris Agreement;
it requires EU countries to produce biennial progress reports on the implementation of the plans from 2021 onwards across the 5 dimensions of the Energy Union, to track progress;
it requires the Commission to monitor and assess EU countries’ progress towards the targets, objectives and contributions set in their national plans;
it sets out the requirements for national and EU inventory systems for greenhouse gas emissions, policies, measures and projections.
It has applied since 24 December 2018.
BACKGROUND
For more information, see:
DOCUMENTS
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, pp. 1-77)
Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, pp. 1-3)
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A policy framework for climate and energy in the period from 2020 to 2030 (COM(2014) 15 final/2, 28.1.2014)
Regulation (EU) No 525/2013 of the European Parliament and of the Council of 21 May 2013 on a mechanism for monitoring and reporting greenhouse gas emissions and for reporting other information at national and Union level relevant to climate change and repealing Decision No 280/2004/EC (OJ L 165, 18.6.2013, pp. 13-40)
Successive amendments to Regulation (EU) No 525/2013 have been incorporated into the original document. This consolidated version is of documentary value only.
Energy prices and costs in Europe
This communication is made up of a report on energy prices and costs in Europe and recommendations as to how to keep energy bills under control.
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Energy prices and costs in Europe (COM(2014) 21 final of 22 January 2014 – not published in the Official Journal).
The European Commission’s in-depth analysis of energy prices and costs in Europe is designed to help policymakers understand the context and the impact of recent price rises on consumers and the political implications.
Energy price rises are a major political concern. They create additional cost burdens on hard-pressed households and industry and affect Europe’s global competitiveness.
The aim of the report is to use it to help the EU develop an ambitious but credible climate and energy 2030 framework that is cost effective and does not undermine European competitiveness.
The Commission proposes a number of courses of action with a view to ensuring that Europe’s citizens and industry can deal effectively with the energy price challenge and that the EU can maintain its competitiveness, today, to 2030 and beyond.
The main proposals to keep energy bills in check include the following.
EU countries need to complete the EU’s internal energy market in order to ensure that investments can be made in an efficient and competitive way.
Household consumers and industry, particularly small and medium-sized businesses, should explore the opportunity to lower their prices by switching to cheaper energy suppliers.
More needs to be done to increase energy efficiency and help consumers lower their consumption; European households and industry can keep their bills down by further improving their energy efficiency; more attention to energy efficiency in product design, new technologies and consumer behaviour can also help save energy and money.
To take advantage of the internal market and the scope for cost reductions, EU countries need to further develop European energy infrastructure, diversify energy supplies and supply routes and ensure that, in their negotiations with major energy partners, they speak with a single European voice.
The EU and EU countries need to further assess and compare energy network costs and practices.
Agency for the cooperation of national energy regulators
Regulation (EU) 2019/942 establishing a European Union Agency for the Cooperation of Energy Regulators
It updates the role and functioning of the EU Agency for the Cooperation of Energy Regulators (ACER).
It also adapts the agency’s tasks to the new energy market design introduced in the clean energy for all Europeans package.
Role of ACER
To assist the regulatory authorities in carrying out, at EU level, the regulatory tasks performed in the EU countries.
If necessary, to coordinate action by regulatory authorities and to mediate and settle disagreements.
To contribute to the adoption of high-quality common regulatory and supervisory practices, and thus to a coherent, effective and efficient application of Union law in order to achieve the Union’s climate and energy objectives.
Status
In carrying out its tasks, ACER acts independently, objectively and in the interest of the EU.
It takes its decisions autonomously, independently of private or corporate interests.
Opinions, recommendations and decisions
The agency issues opinions and recommendations to:
transmission system operators, the European Network for Transition System Operators (ENTSO) for Electricity, the ENTSO for Gas, the EU Distribution Systems Operators entity, regional coordination centres and designated operators in the electricity market;
regulatory authorities;
the European Parliament, the Council or the European Commission.
The agency is competent to take decisions, notably:
on approving terms, conditions and methodologies applicable in all EU countries which are foreseen in network codes and guidelines;
on bidding zone reviews;
on arbitration between regulatory authorities on regulatory cross-border issues;
on exemptions from certain market rules;
on infrastructure matters;
on matters related to wholesale market integrity and transparency rules;
for the purpose of information requests.
Monitoring and reporting
In cooperation with the Commission, EU countries and the relevant national authorities, including the regulatory authorities, ACER monitors the wholesale and retail markets in electricity and natural gas, including:
retail prices of electricity and natural gas;
compliance with consumer rights;
impact of market developments on household customers;
access to the networks including access of electricity produced from renewable energy sources.
ACER will publish annual monitoring reports which identify any barriers to the completion of the internal markets for electricity and natural gas.
It has applied since 4 July 2019. Regulation (EU) 2019/942 revised and replaced Regulation (EC) No 713/2009 and its subsequent amendments.
DOCUMENTS
Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast) (OJ L 158, 14.6.2019, pp. 22-53)
Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on risk preparedness in the electricity sector and repealing Directive 2005/89/EC (OJ L 158, 14.6.2019, pp. 1-21)
Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (OJ L 158, 14.6.2019, pp. 54-124)
Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (OJ L 158, 14.6.2019, pp. 125-199)
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the governance of the energy union and climate action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, pp. 1-77)
Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, pp. 82-209)
Directive (EU) 2018/844 of the European Parliament and of the Council of 30 May 2018 amending Directive 2010/31/EU on the energy performance of buildings and Directive 2012/27/EU on energy efficiency (OJ L 156, 19.6.2018, pp. 75-91)
Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, pp. 1-56)
Successive amendments to Directive 2012/27/EU have been incorporated into the original text. This consolidated version is of documentary value only.
Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 18.6.2010, pp. 13-35)
Guideline on electricity transmission system operation
Regulation (EU) 2017/1485 — guideline on electricity transmission system operation
It defines a set of minimum requirements for EU-wide transmission system operation, cross-border cooperation between transmission system operators (TSOs)*, using the relevant characteristics of the connected distribution system operators (DSOs)* and significant grid users (SGUs)*.
These guidelines are necessary for the purpose of safeguarding operational security, power supply frequency and the efficiency of the interconnected system and resources.
KEY POINTS
As part of the EU’s Third Legislative Package in the field of energy, Regulation (EC) No 714/2009 sets out the rules governing access to the network for cross-border exchanges in electricity with a view to ensuring the proper functioning of the EU’s internal market in electricity. It creates the European Network of Transmission System Operators for electricity (ENTSOE) which, together with the Agency for the Cooperation of Energy Regulators, develops the European network codes and guidelines — i.e. the rules for the operation of the electricity and gas sectors, which are then adopted by the European Commission. These rules seek to ensure that Europe’s energy transmission systems meet the goals of security of supply, increased competitiveness and affordable energy.
In introducing a guideline on electricity transmission system operation, Commission Regulation (EU) 2017/1485 is a highly technical regulation and has five sections. This summary focuses on some of the content of the first section which lays down general aspects. It then provides an outline of the content of the technical sections.
Subject matter
The regulation lays down detailed guidelines on:
requirements and principles concerning operational security;
rules and responsibilities for the coordination and data exchange between TSOs, between TSOs and DSOs, and between TSOs or DSOs and SGUs, in operational planning and in close to real-time operation;
rules for training and certification of system operator employees;
rules on operational security analysis, including regional operational security coordination and appointment of regional security coordinators (RSCs);
requirements on outage coordination;
requirements for scheduling between the control areas for which the TSOs are responsible; and
rules aiming at the establishment of an EU-wide framework for load-frequency control and reserves.
Scope
The regulation applies to all transmission systems, distribution systems and interconnections in the EU and regional security coordinators except those located in islands of EU countries of which the systems are not operated synchronously (i.e. interconnected) with Continental Europe (‘CE’), Great Britain (‘GB’), Nordic, Ireland and Northern Ireland (‘IE/NI’) or Baltic synchronous area.
Definitions
The regulation contains 159 — mostly technical — definitions.
TECHNICAL SECTIONS
The areas covered by the technical sections of the regulation concern:
1. Operational security:
operational security requirements,
data exchange,
compliance,
training.
2. Operational planning:
data for operational security analysis in operational planning,
operational security analysis (including rules concerning the organisation of regional operational security coordination via the appointment of RSCs),
outage coordination,
adequacy,
ancillary services (a service necessary for the operation of a transmission or distribution system),
scheduling,
ENTSOE operational planning data environment.
3. Load-frequency control and reserves:
operational agreements,
frequency quality,
load-frequency control structure,
operation of load-frequency control,
frequency containment reserves,
frequency restoration reserves,
replacement reserves,
exchange and sharing of reserves,
time control process,
cooperation with DSOs,
transparency of information.
The final section of the regulation is mainly concerned with application dates.
The general rules introduced by the regulation apply from 14 September 2017. However, Articles 41 to 53 (on data exchange between TSOs, between TSOs and DSOs with the TSO’s control area, between TSOs, DSOs and distribution-connected power generating modules, and between TSOs and transmission-connected demand facilities) apply from 14 March 2019 and Article 54(4) (compliance tests and simulations carried out by SGUs) from 18 August 2019.
KEY TERMS
transmission system operator (TSO): an organisation which is responsible for the transport of energy at national or regional level using fixed infrastructure.
distribution system operator (DSO): an organisation responsible for providing and operating low, medium and high voltage networks for regional distribution of electricity as well as for supply of lower-level distribution systems and directly connected customers.
significant grid user (SGU): the existing and new power generating facility and demand facility deemed by the TSO as significant because of their impact on the transmission system in terms of the security of supply, including provision of ancillary services.
DOCUMENTS
Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (OJ L 220, 25.8.2017, pp. 1-120)
Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 (OJ L 211, 14.8.2009, pp. 15-35)
Successive amendments to Regulation (EC) No 714/2009 have been incorporated into the original document. This consolidated version is of documentary value only.