The European Parliament has adopted reports on the EU executive’s proposals for regulations on access to the gas transmission networks as well as on the conditions for access to the network for cross-border exchanges in electricity. The measures proposed by the Commission generally aim to tackle discriminatory access conditions, lack of available network capacity, lack of transparency on network data and low investment levels. The Commission argues that by not facilitating access to their own networks, vertically integrated companies have systematically hindered the growth of new companies in both gas and electricity markets. Aside from voting for increased powers for the Agency for the Cooperation of Energy Regulators, MEPs adopted a number of changes to both regulations.

In the report by Alejo Vidal-Quadras (EPP-ED, Spain) on access to the electricity network, MEPs approved, on 18 June, the obligatory establishment of a new TSO association: the European Network of Transmission System Operators for Electricity (ENTSO-E). Going further than the Commission, ENTSO is not only made responsible for the publishing of a Community-wide ten-year network investment plan every two years, but must also have this plan approved by the agency. In addition to the investment plan identifying investment gaps, notably in cross-border capacities, MEPs specifically add, to ENTSO-E’s ten year plan, investments in interconnection and other infrastructure as well as a review of procedural and administrative barriers to increased cross-border capacity. Also to be approved by the agency, according to MEPs, are ENTSO-E’s draft network codes, generation adequacy outlook, grid safety measures, guidelines on coordination of technical cooperation between Community and third-country TSOs, and its annual work programme based on the priorities set by the agency.

Another notable amendment by MEPs is that the Commission regularly draw up a road map including all “feasible” electricity transmission networks and possible regional connections. Replacing the ENTSO-E, the agency should, note MEPs, consult in an “open and transparent” manner all appropriate market participants. Additionally, MEPs stipulate that member states give national regulatory authorities the competence to effectively ensure compliance with the regulation. This includes the legal competence to issue compliance orders and impose effective penalties. The Commission, too, should, after consultation with the agency, draw up an annual “priority list” of issues of primary importance in developing the internal market in electricity. Using this list of issues, the Commission shall mandate the agency to develop, within the period of six months, draft guidelines establishing basic, clear and objective principles for the harmonisation of rules under the regulation.

Similarly, the second piece of legislation, under rapporteur Atanas Paparizov (PES, Bulgaria) on access conditions for natural gas transmission networks, seeks to improve the functioning of the gas wholesale market as well as harmonise network access rules for cross-border exchange in gas. As with electricity in the Vidal-Quadras report, MEPs adopted, on 9 July, calls for more powers to be given to the Agency for the Cooperation of Energy Regulators in regulating the gas market. The European Network of Transmission System Operators for Gas (ENTSO-G) will thus have similar obligations, in the field of gas, as its counterpart in electricity. These include a ten-year investment plan, measures to improve grid operation and safety, and an annual work programme based on priorities drawn up by the agency.

The reports are available at www.europolitics.info > Search > 230946

Key elements

New obligatory TSO organisations for both gas and electricity

Greater powers for the agency in monitoring access to networks

Obligations for TSO organisations to present ten-year investment plans, measures to improve network operation and safety as well as annual work programmes. The implementation of network codes is to be monitored by the agency.