BETA

105 Amendments of Herbert REUL related to 2007/0196(COD)

Dominique VLASTO, Herbert REUL, Angelika NIEBLER, Paul RÜBIG, Nicole FONTAINE, Catherine TRAUTMANN, Ján HUDACKÝ

Proposal for a directive – amending act
Recital 4

(4) The Communication of the Commission of 10 January 2007 entitled "An Energy Policy for Europe" highlighted the importance of completing the internal market in natural gas and of creating a level playing field for all gas companies established in the Community. The Internal Energy Market Communication ~~and the final Report on the Competition Sectoral Enquiry~~ showed that the present rules and measures do not provide the necessary framework for achieving the objective of a well functioning internal market. On the other hand, the final Report on the Competition Sectoral Enquiry and the impact assessment produced to support the third legislative package on the internal energy market provided no convincing evidence that made it possible to establish the best or only way to improve the way that market works.

2008/04/07
Committee: ITRE

Dominique VLASTO, Herbert REUL, Angelika NIEBLER, Paul RÜBIG, Nicole FONTAINE, Catherine TRAUTMANN, Ján HUDACKÝ

Proposal for a directive – amending act
Recital 5

(5) Without effective separation of networks from activities of production and supply, there is an inherent risk of discrimination not only in the operation of the network but also in the incentives for ~~vertically integrated~~ companies to invest adequately in their networks. The main motivation for investing is the remuneration received by the operator. Should the national regulatory authority set a low level of remuneration, this would lead to a decrease in investment. On the other hand, should it set a fair and proportionate level of remuneration, ensuring that revenue covers costs and pays off such investment, it would automatically generate an increase in investment, regardless of whether the network operator belongs to an integrated group. Therefore, the primary major determining factor for investment resides in pricing regulation and in the role and powers of the national regulatory authorities, which should be reinforced in order to complete the internal market to the benefit of the consumer.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 6 a (new)

(6a) It was not possible for the impact assessment submitted to demonstrate conclusively that there was a causal connection in the energy sector between discrimination over access and ownership structure, between the volume of investment and ownership structure or between pricing and ownership structure. The empirical data available suggest, rather, that there is a causal connection between all these points and efficient regulation.

2008/04/07
Committee: ITRE

Dominique VLASTO, Herbert REUL, Angelika NIEBLER, Paul RÜBIG, Nicole FONTAINE, Catherine TRAUTMANN, Ján HUDACKÝ

Proposal for a directive – amending act
Recital 7

(7) ~~Only t~~The removal of the inherent incentive for vertically integrated companies to discriminate against competitors as regards network access and investment can ensure effective unbundling. Ownership unbundling, which implies the network owner being appointed as the network operator and being independent from any supply and production interests, is ~~clearly the most effective and stabl~~one way to solve the inherent conflict of interest ~~and to ensure security of supply. For this reason, t~~. The European Parliament, in its Rresolution on Pprospects for the internal gas and electricity market, adopted on 10 July 2007 referred to ownership unbundling at transmission level as the most effective tool to promote investments in infrastructures in a non-discriminatory way, fair access to the grid for new entrants and transparency in the market. Member States should therefore be required to ensure that the same person or persons are not entitled to exercise control, including through minority blocking rights on decisions of strategic importance such as investments, over a production or supply undertaking and, at the same time, hold any interest in or exercise any right over a transmission system operator or transmission system. Conversely, , considered moreover that the application of further unbundling measures for the gas sector is not straightforward, and therefore urged the development of specific solutions to enable this sector to achieve the completion of the internal gas market, taking into account~~rol over a transmission system operator should preclude the possibility of holding any interest in or exercising any right over a supply undertaking~~ the differences between the upstream and downstream markets.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 7 a (new)

(7a) Any system to be implemented should be effective in removing any conflict of interests between generators and transmission system operators, and should not create an onerous and cumbersome regulatory regime for national regulatory authorities that would be difficult and expensive to implement.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 7 b (new)

(7b) In its resolution of 10 July 2007 on the 'prospects for the internal gas and electricity market', the European Parliament recognised 'that the application of further unbundling measures for the gas sector is not straightforward' and that there was therefore a need for 'the development of specific solutions (…) taking into account the differences between the upstream and downstream markets'. Similarly, the European Council, meeting in Brussels on 8 and 9 March 2007, called upon the Commission to take account of the differences between electricity and gas. The differences arise in particular from the fact that gas mainly, and increasingly, has to be imported from countries outside Europe, whereas electricity is produced in Europe itself.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 8

(8) Since ownership unbundling requires, in some instances, the restructuring of undertakings, Member States should be granted additional time to apply the relevant provisions. ~~In view of the vertical links between the electricity and gas sectors, the unbundling provisions should apply, moreover, across the two sectors.~~

2008/04/07
Committee: ITRE

Dominique VLASTO, Herbert REUL, Angelika NIEBLER, Paul RÜBIG, Nicole FONTAINE, Catherine TRAUTMANN, Ján HUDACKÝ

Proposal for a directive – amending act
Recital 8 a (new)

(8a) Member States that so wish may apply the provisions of this Directive relating to the effective and efficient separation of transmission systems and transmission system operators. This is effective because it helps ensure the independence of transmission system operators. It is efficient because it provides a more appropriate regulatory framework to guarantee fair competition, sufficient investment, access for new entrants and the integration of natural gas markets. It is based on a pillar of organisational measures and measures relating to the governance of transmission system operators and on a pillar of measures relating to investment, connecting new production capacities to the network and market integration through regional cooperation. It is in line with the requirements laid down by the European Council at its meeting in Brussels on 8 and 9 March 2007.

2008/04/07
Committee: ITRE

Dominique VLASTO, Herbert REUL, Angelika NIEBLER, Paul RÜBIG, Nicole FONTAINE, Catherine TRAUTMANN, Ján HUDACKÝ

Proposal for a directive – amending act
Recital 10

(10) The setting up of system operators independent from supply and production interests should enable vertically integrated companies to maintain their ownership of network assets whilst ensuring an effective separation of interests, provided that the independent system operator performs all the functions of a network operator or efficient and effective unbundling is implemented and detailed regulation and extensive regulatory control mechanisms are put in place.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 11

(11) Where the undertaking owning a transmission system is part of a vertically integrated undertaking, Member States should therefore be given a choice between ownership unbundling and, as a derogation, setting up system operators which are independent from supply and production interests. The full effectiveness of the independent system operator solution needs to be assured by way of specific additional rules. To preserve fully the interests of the shareholders of vertically integrated companies, Member States should have the choice of implementing ownership unbundling either by direct divestiture or by splitting the shares of the integrated company into shares of the network company and shares of the remaining supply and production business, provided that the requirements resulting from ownership unbundling are complied withvarious options.

2008/04/07
Committee: ITRE

Dominique VLASTO, Herbert REUL, Angelika NIEBLER, Paul RÜBIG, Nicole FONTAINE, Catherine TRAUTMANN, Ján HUDACKÝ

Proposal for a directive – amending act
Recital 11

(11) Where the undertaking owning a transmission system is part of a vertically integrated undertaking, Member States should therefore be given a choice between ownership unbundling ~~and, as a derogation,~~, effective and efficient unbundling of transmission systems and of transmission system operators, and setting up system operators which are independent from supply and generation interests. The full effectiveness of the independent system operator solution needs to be assured by way of specific additional rules. To preserve fully the interests of the shareholders of vertically integrated companies, Member States should have the choice of implementing ownership unbundling either by direct divestiture or by splitting the shares of the integrated company into shares of the network company and shares of the remaining supply and generation business, provided that the requirements resulting from ownership unbundling are complied with.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 11 a (new)

(11a) In order to develop competition on the internal market for gas, non- household customers should be able to choose their suppliers as well as to contract for their gas requirements with several suppliers. Consumers should be protected against exclusivity clauses in contracts whose effect is to exclude competing and/or complementary offers.

2008/04/07
Committee: ITRE

Paul RÜBIG, Angelika NIEBLER, Herbert REUL, Hannes SWOBODA

Proposal for a directive – amending act
Recital 12

(12) The implementation of effective unbundling should respect the principle of non-discrimination between the public and private sectors. To this effect, the same person should not be able to exercise any influence, solely or jointly, over the composition, voting or decision of the bodies of both transmission system operators and supply undertakings. Provided that the Member State in question can demonstrate that this requirement is respected, two distinct public bodies could control on the one hand generation and supply activities and on the other transmission activities.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 13

(13) Full separation of network and supply activities should apply throughout the Community, so that any network operator in the Community or its affiliated companies should be prevented from having any supply or production activities in any Member State. This should apply equally to EU and non-EU companies. To ensure that network and supply activities throughout the Community are kept separate, regulatory authorities should be empowered to refuse certification to transmission system operators that do not comply with the unbundling rules. To ensure a consistent application across the Community and the respect of the international obligations of the Community, the ~~Commission~~Agency for the Cooperation of Energy Regulators ("Agency") should have the right to review the decisions on certification taken by the regulatory authorities.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 14

(14) The safeguarding of energy supply is an essential element of public security and is therefore inherently connected to the efficient functioning of the EU gas market. Use of the network is essential for gas to reach EU citizens. Functioning gas markets and in particular the networks and other assets associated with gas supply are essential for public security, for the competitiveness of the economy and for the well-being of the citizens of the Community. It is only long afterwards that misrouting in this field becomes apparent. Without prejudice to the international obligations of the Community, the Community considers that the gas transmission system sector is of high importance to the Community and therefore additional safeguards are necessary regarding the influence of third countries in order to avoid any threats to Community public order and public security and the welfare of the citizens of the Community. Such measures are also necessary for ensuring compliance with the rules on effective unbundling.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 16 a (new)

(16a) Any harmonisation of the powers of national regulatory authorities should include incentives that can be offered and sanctions that can be levelled against energy companies. The Agency for the Cooperation of Energy Regulators ("Agency") should be given the appropriate powers to take the lead in ensuring there is parity in the incentives and sanctions across all Member States, and provide guidelines on such measures.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 21

(21) The internal gas market is suffering from a lack of liquidity and transparency hindering the efficient allocation of resources, risk hedging and new entry. Trust in the market, its liquidity and the number of market participants need to increase, and therefore regulatory oversight over undertakings active in the supply of gas need to be increased. Such requirements should be without prejudice to, and compatible with, the existing Community legislation on financial markets. Energy Regulators and Financial Market Regulators need to cooperate in order to enable each other to have an overview of the markets concerned.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 22

(22) Prior to adoption by the Commission of guidelines defining further the record keeping requirements, the Agency for the Cooperation of Energy Regulators and the Committee of European Securities Regulators (CESR) should cooperate to investigate and advise the Commission on the content of the guidelines. The Agency and the Committee should also cooperate to further investigate and advise on the question whether transactions in gas supply contracts and gas derivatives should be subject to pre and/or post-trade transparency requirements and if so what the content of those requirements should be.deleted

2008/04/07
Committee: ITRE

Dominique VLASTO, Herbert REUL, Angelika NIEBLER, Paul RÜBIG, Nicole FONTAINE, Catherine TRAUTMANN, Ján HUDACKÝ

Proposal for a directive – amending act
Recital 25

(25) In view of the creation of an internal market for electricity, Member States should foster the integration of their national markets and the cooperation of network operators at European and regional level. Regional integration initiatives are an essential intermediate step in achieving European integration of energy markets, which remains the final objective. The regional level contributes towards accelerating the integration process by making it possible for the actors concerned, particularly the Member States, the national regulatory authorities and the transmission system operators, to cooperate on specific issues.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Recital 25 a (new)

(25a) The development of a European grid should be the goal of this Directive and to this end regulatory issues on cross- border interconnections and regional markets should be the responsibility of the Agency.

2008/04/07
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 1 – point (b a) (new)

Directive 2003/55/EC
Article 2 – point 36 a (new)

(ba) the following point shall be added: "36a. 'industrial site' means a privately owned geographical area with a natural gas grid which is primarily destined to supply industrial consumers on this site."

2008/04/07
Committee: ITRE

Recital 21

(21) Further measures should be taken in order to ensure transparent and non- discriminatory tariffs for access to transportation. Those tariffs should be applicable to all users on a non- discriminatory basis. Where a storage facility, linepack or ancillary service operates in a sufficiently competitive flexibility market, access could be allowed on the basis of transparent and non- discriminatory market-based mechanisms.

2009/03/11
Committee: ITRE

Angelika NIEBLER, Werner LANGEN, Herbert REUL

Recital 23

(23) Non-discriminatory access to the distribution network determines downstream access to customers at retail level. The scope for discrimination as regards third party access and investment, however, is less significant at distribution level than at transmission level where congestion and the influence of production interests are generally greater than at distribution level. Moreover, legal and functional unbundling of distribution system operators was required, pursuant to Directive 2003/55/EC, only from 1 July 2007 and its effects on the internal market in natural gas still need to be evaluated. The rules on legal and functional unbundling currently in place can lead to effective unbundling provided they are more clearly defined, properly implemented and closely monitored. To create a level playing field at retail level, the activities of distribution system operators should therefore be monitored so that they are prevented from taking advantage of their vertical integration as regards their competitive position on the market, in particular in relation to household and small non-household customers. Attention should be paid to the limited staff and financial resources of small distribution system operators when taking regulatory action.

2009/03/11
Committee: ITRE

Angelika NIEBLER, Werner LANGEN, Herbert REUL

Recital 24

(24) Efficient small distribution system operators play a significant role in widening the range of suppliers and bringing the supply of European electricity closer to the citizen. Independent decentralised structures thus enhance competition and the quality of supply. To avoid imposing any future disproportionate financial and administrative burden on ~~small distribution system operators, Member States should be able~~these structures, Member States should be able to allow them some regulatory leeway and, where necessary, to exempt such companies from the legal distribution unbundling requirements.

2009/03/11
Committee: ITRE

Recital 29

(29) Energy regulators should have the power to issue binding decisions ion ~~relation to natural gas undertakings and to~~system operators and to propose to a competent court or impose effective, approp~~ortion~~riate and dissuasive ~~penalties on natural gas undertaking~~sanctions on system operators which fail to comply with their obligations or to propose that a competent court impose such penalties on them. Regulatory authorities should also be granted the power to decide, irrespective of the application of competition rules, on appropriate measures promoting effective competition necessary for the proper functioning of the internal market in natural gas. The establishment of gas-release programmes is one of the possible measures that can be used to promote effective competition and ensure the proper functioning of the market. Energy regulators should also be granted the powers to contribute to ensuring high standards of public service in compliance with market opening, to the protection of vulnerable customers, and to the full effectiveness of consumer protection measures. Those provisions should be without prejudice to both the Commission’s powers concerning the application of competition rules including the examination of mergers with a Community dimension, and the rules on the internal market such as the free movement of capital. The regulators should also be granted the power to decide on appropriate measures for access to the systems with the aim of promoting effective competition necessary for the proper functioning of the market.

2009/03/11
Committee: ITRE

Angelika NIEBLER, Werner LANGEN, Herbert REUL

Article 2 – point 36 a (new)

(36a) ‘industrial site’ means a privately owned geographical area with a natural gas network managed by one company with a connection to the transmission or distribution network: (a) which predominantly supplies the industrial activities of the network operator or of connected undertakings, or (b) which supplies a limited number of industrial consumers or customers linked with the industrial activities on the industrial site.

2009/03/11
Committee: ITRE

Article 9 – paragraph 8 – subparagraph 2 - introductory part

In such case, the Member State concerned shall from [date of transposition of this Directive plus one year, i.e. 30 months after the date of entry into force of this Directive] either:

2009/03/11
Committee: ITRE

Article 15 – paragraph 1

1. A transmission system owner, where an independent system operator has been appointed~~, and a storage system operator which are part of vertically integrated undertakings~~ shall be independent at least in terms of their legal form, organisation and decision making from other activities not relating to transmission, distribution and storage. ~~This Article shall apply only to storage facilities that are technically and/or economically necessary for providing efficient access to the system for the supply of customers pursuant to Article 32.~~

2009/03/11
Committee: ITRE

Article 17 – paragraph 1 – point c – introductory part

(c) leasing of personnel and rendering of services, to and from any other parts of the vertically integrated undertaking shall be prohibited if they lead to a conflict of interest between the system operation and production or trade. A transmission system operator may, however, render services to the vertically integrated undertaking as long as:

2009/03/11
Committee: ITRE

Article 17 – paragraph 1 – point d

(d) ~~without prejudice to the decisions of the Supervisory Body under Article 20,~~ appropriate financial resources for future investment projects and/or for the replacement of existing assets shall be ~~made~~kept available ~~to the transmission system operator in due time~~notably by the vertically integrated undertaking following an appropriate request from the transmission system operator if based on the procedure described in Article 22(6a) and within the framework of the annual and longer term financial plans referred to in Article 20.

2009/03/11
Committee: ITRE

Article 17 – paragraph 2 – point e

(e) the operation~~, maintenance~~ and development of a secure, efficient and economic transmission system;

2009/03/11
Committee: ITRE

Article 17 – paragraph 2 – point h

(h) all corporate services, including legal services, accountancy and IT services limited to services with discriminatory potential in accordance with Article 17(1)(c).

2009/03/11
Committee: ITRE

Article 17 – paragraph 5

5. The transmission system operator shall not share IT systems or equipment, physical premises and security access systems with any part of the vertically integrated undertaking, nor use the same consultants or external contractors for IT systems or equipment, and security access systems.deleted

2009/03/11
Committee: ITRE

Article 18 – paragraph 1 – point b

(b) the power to raise money on the capital market in particular through borrowing and capital increase. In so doing, operators shall be guided by the financial plan and upper debt limits.

2009/03/11
Committee: ITRE

Article 19 – paragraph 3 – subparagraph 1

3. No professional position or responsibility, interest or business relationship, directly or indirectly, with the vertically integrated undertaking or any relevant part of it or its relevant controlling shareholders other than the transmission system operator shall be exercised for a period of three years before the appointment of the persons responsible for the management and/or members of the administrative bodies of the transmission system operator who are subject to this subparagraph.

2009/03/11
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 2

Directive 2003/55/EC
Article 3 – paragraph 7

(2) In Article 3, the following paragraph 7 is added: "7. The Commission may adopt guidelines for the implementation of this Article. This measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30 (3)."deleted

2008/04/07
Committee: ITRE

Article 19 – paragraph 4

4. The persons responsible for the management and/or members of the administrative bodies, and employees of the transmission system operator shall have no other professional position or responsibility~~, interest~~ or business relationship, directly or indirectly, with any other part of the vertically integrated undertaking or with its relevant controlling shareholders if they lead to a conflict of interest between the system operation and production or trade.

2009/03/11
Committee: ITRE

Article 19 – paragraph 7

7. After termination of their term of office in the transmission system operator, the persons responsible for its management and/or members of its administrative bodies shall have no professional position or responsibility, ~~interest~~ or business relationship with any part of the vertically integrated undertaking other than the transmission system operator, or with its controlling shareholders for a period of not less than four years, if they lead to a conflict of interest between the system operation and production or trade.

2009/03/11
Committee: ITRE

Article 20 – paragraph 1

1. The transmission system operator shall have a Supervisory Body which shall be in charge of taking decisions which may have a significant impact on the value of the assets of the shareholders within the transmission system operator, in particular decisions regarding the approval of the annual and longer-term financial plans, the level of maximum indebtedness of the transmission system operator and the amount of dividends distributed to shareholders. The decisions falling under the remit of the Supervisory Body shall exclude those that are related to the day to day activities of the transmission system operator and management of the network, and in relation to activities necessary for the preparation of the 10-year network development plan developed pursuant to Article 22.

2009/03/11
Committee: ITRE

Article 20 – paragraph 3

3. ~~The first subparagraph of Article 19(2), the first subparagraph of Article 19(3) and Article 19(4) to (7) shall apply to a~~At least half of the members of the Supervisory Body ~~min~~plus one~~. Point (a) of the second subparagraph of Article 19(2) shall apply to all the members of the Supervisory Body~~ shall be representative of the vertically integrated undertaking.

2009/03/11
Committee: ITRE

Article 22 – paragraph 5

5. The regulatory authority shall examine whether the 10-year network development plan in the limits of financial reasonability covers all investment needs identified during the consultation process, and whether it is consistent with the non- binding Community -wide 10 -year network development plan referred to in Article 8(3)~~(b)~~ of Regulation (EC) No …/…repealing Regulation (EC) No 1775/2005. If any doubt arises as to the consistency with the non -binding Community -wide 10 -year network development plan, the regulatory authority shall consult the Agency. The regulatory authority may require the transmission system operator to amend its plan. ________________________________________ * OJ: Please insert the number of the Regulation which is contained in 14548/08 and the transmission system operator.

2009/03/11
Committee: ITRE

Article 22 – paragraph 6 a (new)

6a. Investment decisions of the transmission system operator shall be launched, in the framework of the annual and longer term financial plans referred to in Article 20, after a prior assessment on proven capacity needs of the market and the availability of each interested stakeholder to support economically and financially the necessary investments. This goal can be achieved through an open season procedure.

2009/03/11
Committee: ITRE

Article 22 – paragraph 7 - introductory part

7. In circumstances where the transmission system operator, other than for overriding reasons beyond its control, does not execute an investment, which, under the 10 -year network development plan, was to be executed in the following three years, Members States shall ensure that, in the framework of the annual and longer term financial plans referred to in Article 20, the regulatory authority is required to take at least one of the following measures to ensure that the investment in question is made if such investment is still relevant on the basis of the most recent 10 -year network development plan:

2009/03/11
Committee: ITRE

Article 22 – paragraph 7 – subparagraph 1 – point c

(c) to ~~oblige~~call on the transmission system operator to accept a capital increase to finance the necessary investments and allow independent investors to participate in the capital.

2009/03/11
Committee: ITRE

Angelika NIEBLER, Werner LANGEN, Herbert REUL

Article 26 a (new)

Article 26a 1. Member States may exempt industrial sites from Articles 4 and 7, Article 8(1) and (2), Articles 9 and 11, Article 12(5), Articles 13, 17 and 18, Article 23(1) and/or Article 24 of this Directive. 2. Third-party access shall not be affected by the exemptions referred to in paragraph 1. Customers on industrial sites shall be able freely to choose their energy supplier, having resort to the national regulator in the event of a disagreement with the network operator.

2009/03/11
Committee: ITRE

Article 35 – paragraph 2

2. Paragraph 1 shall apply also to significant increases of capacity in existing infrastructures and to modifications of such infrastructures which make available additional gas quantities from existing sources or enable the development of new sources of gas supply.

2009/03/11
Committee: ITRE

Article 35 – paragraph 8 – subparagraph 5

The Commission’s ~~approval of an~~ exemption decision shall lose its effect ~~two years from its adoption in the event that construction of the infrastructure has not yet started, and five years from its adoption in the event that the infrastructure has not become operational~~if the infrastructure has not become operational five years after all national and regional decisions and authorisations have been issued, unless the delay is due to circumstances beyond control of the person to whom the exemption has been granted.

2009/03/11
Committee: ITRE

Article 35 – paragraph 9

9. The ~~Commission may adopt guidelines for the application of the conditions laid down in paragraph 1 of this Article and to set out the proc~~conditions of an exemption approval granted under this Article shall not be changedu re ~~to be followed for the application of paragraphs 3, 5, 7 and 8 of this Article. Those measures, designed to amend non essential el~~trospectively without the agreements of ~~this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 50(3)~~all parties concerned.

2009/03/11
Committee: ITRE

Angelika NIEBLER, Werner LANGEN, Herbert REUL

Article 38 – paragraph 5 a (new)

5a. Paragraphs 4 and 5 shall be without prejudice to the constitutional requirements of the Member State’s administrative organisation.

2009/03/11
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 3

Directive 2003/55/EC
Article 5a – paragraph 4

4. The Commission may adopt guidelines for regional solidarity cooperation. This measure, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30 (3).deleted

2008/04/10
Committee: ITRE

Article 40 – paragraph 1 – point k

(k) monitoring and reviewing the access conditions to storage, linepack and other ancillary services as provided for in Article 32. In the event that the access regime to storage is defined according to Article 32(3), thatis task shall exclude the reviewing of the access conditions to storage, linepack and other ancillary services, including tariffs;

2009/03/11
Committee: ITRE

Article 40 – paragraph 1 – point o

~~(o) monitoring the correct application of the criteria that determine whether a storage facility falls under Article 32(3) or (4); an~~deleted

2009/03/11
Committee: ITRE

Article 40 – paragraph 4 – introductory part

4. Member States shall ensure that regulatory authorities and/or competition authorities are granted the powers enabling them to carry out the duties referred to in paragraphs 1, 3 and 6 in an efficient and expeditious manner. For this purpose, the regulatory and/or competition authorityies shall have at least the following powers:

2009/03/11
Committee: ITRE

Article 40 – paragraph 4 – point b

(b) to carry out investigations into the functioning of the gas markets, and to decide upon and impose ~~any necessary and~~ proportionate measures necessary to carry out their duties as stated in paragraphs 1 and 3 in order to promote effective competition and ensure the proper functioning of the market. Where appropriate, the regulatory authority shall also have the power to cooperate with the national competition authority or the Commission in conducting an investigation relating to competition law;

2009/03/11
Committee: ITRE

Herbert REUL, Nikolaos VAKALIS, Vladimir URUTCHEV, Nicole FONTAINE, Angelika NIEBLER, Ján HUDACKÝ, Dominique VLASTO, Werner LANGEN, Paul RÜBIG

Proposal for a directive – amending act
Article 1 – point 3

Directive 2003/55/EC
Article 5b

1. Member States shall cooperate among themselves for the purpose of integrating their national markets at least at the regional level. In particular, Member States shall promote the cooperation of network operators at a regional level, and foster the consistency of their legal and regulatory framework. ~~The geographical~~2. When the cooperation between several Member States at a regional level encounters significant difficulties, following the joint request of these Member States, the Commission may designate, in agreaement with all Member States covncerned by, a regional coo~~perations shall be in line with the definition of geographical areas by the Commission in accordance with Article 2h(3) of Regulation (EC) No 1775/2005.~~ rdinator. 3. The regional coordinator shall promote at regional level the cooperation of national regulatory authorities and other competent public authorities, network operators, gas exchanges, grid users and market parties. In particular, the regional coordinator shall : (a) promote new efficient investments in interconnections. To this end, the regional coordinator shall assist transmission system operators in drawing up their regional interconnection plan and shall contribute to the coordination of their investments decisions and, where appropriate, of their open season procedure; (b) promote the efficient and safe use of the networks. To this end, the regional coordinator shall contribute to the coordination between transmission system operators, national regulatory authorities and other competent national public authorities in drawing up their common allocation and common safeguard mechanisms; (c) submit an annual report to the Commission and Member States concerned on the progress achieved in the region and on any difficulty or obstacle that may hinder such progress.

2008/04/10
Committee: ITRE

Article 40 – paragraph 8

8. Regulatory authorities shall have the authority to require transmission, ~~storage,~~ LNG and distribution system operators, if necessary, to modify the terms and conditions, including tariffs and methodologies referred to in this Article, to ensure that they are proportionate and applied in a non discriminatory manner. ~~In the event that the access regime to storage is defined according to Article 32(3), this task shall exclude the modification of tariffs.~~

2009/03/11
Committee: ITRE

Angelika NIEBLER, Werner LANGEN, Herbert REUL

Article 40 – paragraph 8

8. Regulatory authorities shall have the authority to require transmission, ~~storage,~~ LNG and distribution system operators, if necessary, to modify the terms and conditions, including tariffs and methodologies referred to in this Article, to ensure that they are proportionate and applied in a non-discriminatory manner. In the event that the access regime to storage is defined according to Article 32(3), this task shall exclude the modification of tariffs.

2009/03/11
Committee: ITRE

Article 51 – paragraph 3

3. The Commission shall~~, by …*,~~ no later than [five years after entry into force of this Directive] submit, as part of the general review, to the European Parliament and the Council, a detailed specific report outlining the extent to which the unbundling requirements under Chapter IV have been successful in ensuring full and effective independence of transmission system operators, using effective and efficient unbundling as a benchmark. __________________________________ * OJ: Please insert the date two years after the date referred to in the first subparagraph of Article 53(1), i. e. 42 months after the entry into force of this Directive.

2009/03/11
Committee: ITRE

Nikolaos VAKALIS, Vladimir URUTCHEV, Nicole FONTAINE, Angelika NIEBLER, Ján HUDACKÝ, Dominique VLASTO, Werner LANGEN, Herbert REUL, Paul RÜBIG

Proposal for a directive – amending act
Article 1 – point 4

Directive 2003/55/EC
Article 7 – paragraph –1 (new)

"–1. In order to ensure the independence of transmission system operators, Member States shall ensure that, as from [date of transposition plus one year], vertically integrated undertakings must comply with the provisions of Article 7(1)(a) to (d) or Article 9 or Article 9b."

2008/04/10
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 5

Directive 2003/55/EC
Article 7a

Article 7a Control over transmission system owners and transmission system operators 1. Without prejudice to the international obligations of the Community, transmission systems or transmission system operators shall not be controlled by a person or persons from third countries. 2. An agreement concluded with one or several third countries to which the Community is a party may allow for a derogation from paragraph 1.deleted

2008/04/10
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 5

Directive 2003/55/EC
Article 7b – paragraph 13

13. The Commission shall adopt guidelines setting out the details of the procedure to be followed for the application of paragraphs 6 to 9. This measure designed to amend non-essential elements of this Directive by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30(3).deleted

2008/04/10
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 6

Directive 2003/55/EC
Article 8 – paragraph 1 – point (a)

a) ) operate, maintain and develop under economic conditions secure, reliable and efficient transmission, storage and/or LNG facilities, with due regard to the environment~~, and promote energy efficiency and research and innovation notably with respect to ensuring penetration of renewables and dissemination of low carbon technology~~.

2008/04/10
Committee: ITRE

Nikolaos VAKALIS, Vladimir URUTCHEV, Nicole FONTAINE, Angelika NIEBLER, Ján HUDACKÝ, Dominique VLASTO, Werner LANGEN, Herbert REUL, Paul RÜBIG

Proposal for a directive – amending act
Article 1 – point 6 c (new)

Directive 2003/55/EC
Article 8 – paragraphs 4 a to 4 h (new)

(6c) In Article 8, the following paragraphs shall be added: "4a. Transmission system operators shall draw up a 10-year network development plan at least every two years. They shall take efficient measures to guarantee system adequacy and security of supply. 4b. The 10-year network development plan shall in particular: a) indicate to market participants the main transmission infrastructures that ought to be built over the next ten years; b) contain all the investments already decided upon and identify new investments for which an implementation decision has to be taken in the next three years. 4c. In order to draw up this 10-year network development plan, each transmission system operator shall make a hypothesis about the evolution of generation, consumption and exchanges with other countries, and shall take into account regional and European-wide existing network investment plans. Transmission system operator shall submit in due time the draft of this plan to the competent national body. 4d. The competent national body shall consult the draft with all relevant network users in an open and transparent way, and may publish the result of such consultation, in particular possible investment need. 4e. The competent national body shall examine whether the draft 10-year network development plan covers all investment needs identified during the consultation. The competent national body may require the transmission system operator to amend this plan. 4f. The competent national body within the meaning of paragraphs 4c, 4d and 4e, may be the national regulatory authority, any other competent national public authority or a network development trustee established by transmission system operators. In the latter case, transmission system operators shall submit the drafts of their statutes, a list of their members and their rules of procedure to the competent national public authority for its approval. 4g. If the transmission system operator fails to implement a specific investment listed in the 10-year network development plan within the subsequent three years, Members States shall ensure that the national regulatory authority or any other competent national public authority has the necessary powers to take one of the following measures: a) to request, by all legal means, the transmission system operator to fulfil its investment obligations using its financial capacities, or, b) to invite independent investors to tender for the necessary investment in a transmission system and at the same time may oblige the transmission system operator: – to agree to financing by any third party, – to agree to building by any third party or to build the respective new assets and – to operate the respective new asset. The relevant financial arrangements shall be subject to the approval of the national regulatory authority or any other competent national authority. In both cases, tariff regulation shall allow for revenues that cover the costs of such investments. 4h. The competent national public authority shall monitor and evaluate the implementation of the investment plan.

2008/04/10
Committee: ITRE

Herbert REUL, Nikolaos VAKALIS, Vladimir URUTCHEV, Nicole FONTAINE, Angelika NIEBLER, Ján HUDACKÝ, Dominique VLASTO, Werner LANGEN, Paul RÜBIG

Proposal for a directive – amending act
Article 1 – point 6 d (new)

Directive 2003/55/EC
Article 8 a (new)

(6d) The following Article shall be inserted: "Article 8a Effective and efficient unbundling of transmission systems I. Assets, equipment, staff and identity 1. Transmission system operators shall be equipped with all human, physical and financial resources of the vertically integrated undertaking necessary for the regular business of gas transmission, in particular: (i) transmission system operators shall own assets necessary for the regular business of gas transmission; (ii) transmission system operators shall employ the staff necessary for the regular business of gas transmission; (iii) the sharing of the staff and the provision of services between branches of a vertically integrated undertaking performing functions of generation or supply shall be limited to cases where there is no possibility of discrimination and shall be subject to approval by national regulatory authorities in order to exclude competition concerns and conflicts of interest; (iv) appropriate financial resources for future investment projects shall be made available in due time. 2. The activities deemed necessary for the regular business of gas transmission mentioned in paragraph 1 shall include at least the following: – representation of the transmission system operator and contacts with third parties and national regulatory authorities, – granting and managing third party access to the network, – collection of access charges, congestion rents and payments under the inter transmission system operator compensation mechanism, in compliance with Article 3 of Regulation (EC) No 1228/2003, – operation, maintenance and development of the transmission system, – investment planning ensuring the long- term ability of the system to meet reasonable demand and guaranteeing security of supply, – legal services, – accountancy and IT services. 3. Transmission system operators shall have the legal form of a joint-stock company. 4. The transmission system operator shall have its own corporate identity, significantly different from the vertically integrated undertaking, with separate branding, communication and premises. 5. Transmission system operators' accounts shall be audited by an auditor other than the person auditing the vertically integrated undertaking and all its affiliated companies. II. Independence of the transmission system operator's management, chief executive officer / executive board 6. Decisions on the appointment and on any early termination of the employment of the chief executive officer or members of the executive board of the transmission system operator and decisions on the conclusion or early termination of the employment contracts with these persons shall be notified to the national regulatory authority or any other competent national public authority. These decisions and agreements may become binding only if, within a period of 3 weeks following the notification, the regulatory authority or any other competent national public authority has not used its right of veto. A veto may be used if an appointment and the conclusion of the relevant agreement poses serious doubts as to the professional independence of the nominated chief executive officer or a member of the executive board; in the case of early terminations of employment and of respective agreements with these persons, the right of veto may be used only if serious doubts exist regarding the basis and justification of such termination. 7. Right of appeal to the national regulatory authority or another competent national public authority or to a court shall be guaranteed to the management of the transmission system operator in the event of early terminations of their employment. 8. After termination of employment in the transmission system operator, the chief executive officers / members of the executive board shall not participate in any branch of the vertically integrated undertaking performing functions of generation or supply for a period of not less than 3 years. 9. The chief executive officer / members of the executive board shall not hold any interest in or receive any compensation from any undertaking of the vertically integrated company other than the transmission system operator. Remuneration of the chief executive officer / members of the executive board shall in no part depend on activities of the vertically integrated undertaking other than those of the transmission system operator. 10. The chief executive officer or the members of the executive board of the transmission system operator may not be responsible, directly or indirectly, for the day-to-day operation of any other branch of the vertically integrated undertaking. 11. Without prejudice to the provisions above, the transmission system operator shall have effective decision-making rights, independent from the integrated gas undertaking, with respect to assets necessary to operate, maintain or develop the network. This should not prevent the existence of appropriate coordination mechanisms to ensure that the economic and management supervision rights of the parent company in respect of return on assets, regulated indirectly in accordance with Article 24c, in a subsidiary are protected. In particular, this shall enable the parent company to approve the annual financial plan, or any equivalent instrument, of the transmission system operator and to set global limits on the levels of indebtedness of its subsidiary. It shall not permit the parent company to give instructions regarding day-to-day operations, nor with respect to individual decisions concerning the construction or upgrading of transmission lines, that do not exceed the terms of the approved financial plan, or any equivalent instrument. III. Supervisory board / Board of directors 12. Chairmen of the supervisory board/board of directors of the transmission system operator shall not participate in any branch of the vertically integrated undertaking performing functions of generation or supply. 13. The supervisory boards / boards of directors of transmission system operators shall also include independent members, appointed for a term of at least 5 years. Appointment of the members of the supervisory board / board of directors shall be notified to the national regulatory authority/ or any other competent national public authority and become binding under the conditions described in paragraph 6. 14. For the purpose of paragraph 13, a member of the supervisory board / board of directors of a transmission system operator shall be deemed independent if he/she does not participate in any business with, or is no other relationship with the vertically integrated undertaking, its controlling shareholders or the management of either, that would create a conflict of interest, in particular: (a) has not been an employee of any branch of the vertically integrated undertaking performing functions of generation and supply in five years prior to the appointment as a member of the supervisory board / board of directors; (b) does not hold any interest in, and does not receive any compensation from, the vertically integrated undertaking or any of its affiliates except the transmission system operator; (c) does not have any relevant business relationship with any branch of the vertically integrated company performing functions of energy supply during his/her appointment as a member of the supervisory board / board of directors; (d) is not a member of the executive board of a company in which the vertically integrated undertaking appoints members of the supervisory board / board of directors. IV. Compliance officer 15. Member States shall ensure that transmission system operators establish and implement a compliance programme which sets out measures to be taken to ensure that discriminatory conduct is excluded. The programme shall also set out the specific obligations of employees of the transmission system operators to meet this objective. The programme shall be subject to the approval of the national regulatory authority or any other competent national public authority. Compliance of the program shall be independently monitored by the compliance officer. The national regulatory authority shall have the power to impose sanctions in case of inappropriate implementation of the compliance program by the transmission system operator. 16. The chief executive officer / executive board of the transmission system operator shall appoint a person or a body in a function of a compliance officer who shall be responsible for: (i) monitoring the implementation of the compliance programme; (ii) preparing an annual report, setting out the measures to be taken in order to implement the compliance programme and submitting it to the national regulatory authority; (iii) issuing recommendations regarding the compliance programme and its implementation. 17. The independence of the compliance officer shall be guaranteed in particular by the terms of the relevant employment contract. 18. The compliance officer shall have the opportunity to regularly address the supervisory board/board of directors of the transmission system operator, of the vertically integrated undertaking and the national regulatory authorities. 19. The compliance officer shall attend all meetings of the supervisory board / board of directors of the transmission system operator that address the following areas: (i) conditions for access and connection to the system, including the collection of access charges, congestion rents, and payments under the inter transmission system operator compensation mechanism in compliance with Article 3 of Regulation (EC) No 1228/2003; (ii) projects undertaken in order to operate, maintain and develop the transmission grid system, including interconnection and connection investments; (iii) energy purchases in order to cover energy losses. 20. During these meetings, the compliance officer shall prevent information about generators or suppliers activities which may be commercially advantageous from being disclosed in a discriminatory manner to the supervisory board/board of directors. 21. The compliance officer shall have access to all relevant books, records and offices of the transmission system operator and to all the necessary information for the fulfilment of the tasks. The compliance officer shall be nominated and removed by the chief executive officer / executive board only after prior approval by the national regulatory authority."

2008/04/10
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/55/EC
Article 9

"Article 9 Independent system operators 1. Where the transmission system belongs to a vertically integrated undertaking on entry into force of this Directive, Member States may grant derogations from Article 7(1), provided that an independent system operator is designated by the Member State upon a proposal from the transmission system owner and subject to approval of such designation by the Commission. Vertically integrated undertakings which own a transmission system may not in any event be prevented from taking steps to comply with Article 7(1). 2. The Member State may approve and designate an independent system operator only where: (a) the candidate operator has demonstrated that it complies with the requirements of Article 7(1)(b) to (d); (b) the candidate operator has demonstrated that it has at its disposal the required financial, technical and human resources to carry out its tasks under Article 8; (c) the candidate operator has committed to complying with a ten year network development plan proposed by the regulatory authority; (d) the transmission system owner has demonstrated its ability to comply with its obligations under paragraph 6. To this effect, it shall provide all the draft contractual arrangements with the candidate undertaking and any other relevant entity; (e) the candidate operator has demonstrated its ability to comply with its obligations under Regulation (EC) No 1775/05 of the European Parliament and of the Council of 28 September 2005 on conditions for access to the natural gas transmission network* including the cooperation of transmission system operators at European and regional level. 3. Undertakings which have been certified by the regulatory authority as having complied with the requirements of Articles 7a and 9(2) shall be approved and designated as independent system operators by Member States. The certification procedure in Article 7b shall be applicable. 4. Where the Commission has taken a decision in accordance with the procedure in Article 7b and finds that the regulatory authority has not complied with its decision within two months, it shall, within a period of six months, designate, on a proposal from the Agency and after having heard the views of the transmission system owner and the transmission system operator, an independent system operator for a period of 5 years. At any time, the transmission system owner may propose to the regulatory authority the designation of a new independent system operator pursuant to the procedure in Article 9(1). 5. Each independent system operator shall be responsible for granting and managing third party access, including the collection of access charges and congestion rents, for operating, maintaining and developing the transmission system, as well as for ensuring the long term ability of the system to meet reasonable demand through investment planning. When developing the network the independent system operator is responsible for planning (including authorisation procedure), construction and commissioning of the new infrastructure. For this purpose, it shall act as a transmission system operator in accordance with this Chapter. Transmission system owners may not be responsible for granting and managing third party access, nor for investment planning. 6. Where an independent system operator has been designated, the transmission system owner shall: (a) provide all the relevant cooperation and support to the independent system operator for the fulfilment of its tasks, including in particular all relevant information; (b) finance the investments decided by the independent system operator and approved by the regulatory authority, or give its agreement to financing by any interested party including the independent system operator. The relevant financing arrangements shall be subject to approval by the regulatory authority Prior to this approval, the Regulatory Authority shall consult the asset owner together with other interested parties; (c) provide for the coverage of liability relating to the network assets that it owns and are managed by the independent system operator, excluding the liability relating to the tasks of the independent system operator; (d) provide guarantees to facilitate financing any network expansions with the exception of those investments where, pursuant to paragraph b, it has given its agreement to financing by any interested party including the independent system operator. 7. In close cooperation with the regulatory authority, the relevant national competition authority shall be granted all relevant powers to effectively monitor compliance of the transmission system owner with its obligations under paragraph 6."deleted

2008/04/10
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 8

Directive 2003/55/EC
Article 9a

Unbundling of transmission system owner 1. Transmission system owners, where an independent system operator has been appointed, and storage system operators which are part of vertically integrated undertakings shall be independent at least in terms of their legal form, organisation and decision making from other activities not relating to transmission and storage. This Article shall only apply to storage facilities that are technically and/or economically necessary for providing efficient access to the system for the supply of customers pursuant to Article 19. 2. In order to ensure the independence of the transmission system owner and storage system operator referred to in paragraph 1, the following minimum criteria shall apply: a) those persons responsible for the management of the transmission system owner and storage system operator may not participate in company structures of the integrated natural gas undertaking responsible, directly or indirectly, for the day-to-day operation of the production, distribution and supply of natural gas. b) appropriate measures must be taken to ensure that the professional interests of persons responsible for the management of the transmission system owner and storage system operator are taken into account in a manner that ensures that they are capable of acting independently. c) the storage system operator shall have effective decision-making rights, independent from the integrated gas undertaking, with respect to assets necessary to operate, maintain or develop the storage facilities. This shall not preclude the existence of appropriate coordination mechanisms to ensure that the economic and management supervision rights of the parent company in respect of return on assets regulated indirectly in accordance with Article 24c(4) in a subsidiary are protected. In particular, this shall enable the parent company to approve the annual financial plan, or any equivalent instrument, of the storage system operator and to set global limits on the levels of indebtedness of its subsidiary. It shall not permit the parent company to give instructions regarding day-to-day operations, nor with respect to individual decisions concerning the construction or upgrading of storage facilities, that do not exceed the terms of the approved financial plan, or any equivalent instrument. d) the transmission system owner and storage system operator shall establish a compliance programme, which sets out measures taken to ensure that discriminatory conduct is excluded, and ensure that observance of it is adequately monitored. The programme shall set out the specific obligations of employees to meet this objective. An annual report, setting out the measures taken, shall be submitted by the person or body responsible for monitoring the compliance programme to the regulatory authority and shall be published. 3.The Commission may adopt guidelines to ensure full and effective compliance of the transmission system owner and of the storage operator with paragraph 2 of this Article. This measure designed to amend non-essential elements of this Directive by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30(3) .Article 9a deleted and storage system operator

2008/04/10
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 10 – point (c)

Directive 2003/55/EC
Article 13 – paragraph 3

3. Where the distribution system operator is part of a vertically integrated undertaking, Member States shall ensure that the activities of the distribution system operator isare monitored so that it cannot take advantage of its vertical integration to distort competition. In particular, vertically integrated distribution system operators shall not, in their communication a~~nd branding~~ctivities, create confusion in respect of the separate identity of the supply branch of the vertically integrated undertaking.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 10 – point (c)

Directive 2003/55/EC
Article 13 – paragraph 4

4. The Commission may adopt guidelines to ensure full and effective compliance of the distribution system operator with paragraph 2 as regards the full independence of the distribution system operator, the absence of discriminatory behaviour, and that supply activities of the vertically integrated undertaking cannot take unfair advantage of its vertical integration. This measure designed to amend non-essential elements of this Directive by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30(3).deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 10 – point (c a) (new)

Directive 2003/55/EC
Article 13 – paragraph 4 a (new)

ca) The following paragraph 4a is added: ‘4a. Member States shall have the right to decide whether to apply paragraphs 1 to 4 to integrated natural gas undertakings serving less than 100 000 connected customers or isolated networks.’

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 12

Directive 2003/55/EC
Article 19 – paragraph 1 – subparagraph 2

Member States shall define and publish criteria according to which it may be determined whether access to storage facilities and linepack is technically and/or economically necessary in order to provide efficient access to the system for the supply of customers. Member States 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.deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 2

2. Paragraph 1 shall apply also to all significant increases of capacity in existing infrastructures and to modifications of such infrastructures which enable the development of ~~new sources of gas supply~~increased and additional quantities.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 3 – subparagraph 1

3. The regulatory authority referred to in Chapter VIa may, on a case by case basis, decide on the exemptions referred to in paragraphs 1 and 2. Where the infrastructure in question is located in the territory of more than one Member State, the Agency shall exercise the tasks conferred on the regulatory authority by the present Article. The Agency’s decision shall be subject to prior consultation of the relevant regulatory authorities and of the applicant.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 3 – subparagraph 2

An exemption may cover all or merely certain specific parts of, the capacity of the new infrastructure, or of the existing infrastructure with significantly increased capacity.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 3 – subparagraph 4

Before granting an exemption the regulatory authority shall decide upon the rules and mechanisms for management and allocation of capacity, which may, if necessary, be amended during the period in which the infrastructure is exempted from the above-mentioned provisions, in order to make adjustments to economic and market-relevant needs. The rules shall require that all potential users of the infrastructure are invited to indicate their interest in contracting capacity before capacity allocation in the new infrastructure, including for own use, takes place. The regulatory authority shall require congestion management rules to include the obligation to offer unused capacity on the market, and shall require users of the facility to be entitled to trade their contracted capacities on the secondary market. In its assessment of the criteria referred to in paragraph 1(a), (b) and (e) of this Article, the regulatory authority shall take into account the results of that capacity allocation procedure, where third parties have indicated a firm commitment.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 5

5. Within two months after receiving a notification, the Commission may take a decision requiring the regulatory authority to amend or withdraw the decision to grant an exemption. That period shall begin on the day following the receipt of the notification. The two month period may be extended by two additional months where additional information is sought by the Commission. That period shall begin on the day following the receipt of the complete additional information. The two month period can also be extended with the consent of both the Commission and the regulatory authority. Where the requested information is not provided within the period set out in the request, the notification shall be deemed to be withdrawn unless, before the expiry of that period, either the period has been extended with the consent of both the Commission and the regulatory authority, or the regulatory authority, in a duly reasoned statement, has informed the Commission that it considers the notification to be complete. The regulatory authority shall comply with the Commission decision to amend or withdraw the exemption decision within a period of four weeks and shall inform the Commission accordingly. The Commission shall preserve the confidentiality of commercially sensitive informationWhere the infrastructure in question is on the territory of more than one Member State, examination of the Agency's decision by the Commission shall not be necessary. The Commission's approval of an exemption decision shall lose its effect after two years from its adoption if construction of the infrastructure has not yet started, and after five years if the infrastructure has not become operational.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 5 – subparagraph 4

The Commission's approval of an exemption decision shall lose its effect ~~after two years from its adoption if construction of the infrastructure has not yet started, and after five years if the infrastructure has not become operational .~~ if construction of the infrastructure has not yet started two years after all necessary decisions and authorisations from the national or regional authorities have been issued. It shall also lose its effect if the infrastructure has not become operational five years after all national and regional authorities decisions and authorisations have been issued. Where the building of a large infrastructure is delayed due to unforeseeable circumstances, the investor shall notify the relevant regulatory authority and may apply an appropriate extension of the above-mentioned time limits.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 5 – subparagraph 4

The Commission's ~~approval of an~~ exemption decision shall lose its effect ~~after two years from its adoption if construction of the infrastructure has not yet started, and after five years~~ if the infrastructure has not become operational five years after all national and regional decisions and authorisations have been issued. Where the building of a large infrastructure is delayed due to unforeseeable circumstances, the investor shall notify the ~~infrastructure has not become operational~~national regulatory authority concerned and may apply for an appropriate prolongation of the above mentioned period.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 13

Directive 2003/55/EC
Article 22 – paragraph 6

6. The Commission may adopt guidelines for the application of the conditions mentioned in paragraph 1 and to set out the procedure to be followed for the application of paragraphs 4 and 5. This measure designed to amend non-essential elements of this Directive by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30 (3).deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24b

In carrying out the regulatory tasks specified in this Directive, the regulatory authority shall take all reasonable measures to achieve the following objectives: a) the promotion, in close cooperation with the Agency, regulatory authorities of other Member States and the Commission, of a competitive, secure and environmentally sustainable internal gas market within the Community, and effective market opening for all consumers and suppliers in the Community;order to achieve the objectives of ensuring effective and undistorted competition in the supply of gas and of securing the long-term, efficient and reliable operation of natural gas networks, such networks shall be regulated. Except where other national authorities, in particular competition authorities, are responsible for the tasks specified in this Directive, the regulatory authority shall take all reasonable measures to achieve the following objectives: b) the development of competitive and properly functioning regional markets within the Community in view of the achievement of the objective mentioned in point (a)~~; c) the suppression of re~~ by means of appropriate cross- border striuct~~ions to natural gas trade between Member States, including~~ures for network access and network use; c) the development of appropriate cross border transmission capacities to meet demand, enhance integration of national markets and to enable unrestrained natural gas flow across the Community; d) ensuring the development of secure, reliable and efficient systems, promoting energy efficiency, system adequacy and research and innovation to meet demandwith a view to suppressing restrictions to natural gas trade between the Member States and guaranteeing a level of interconnection capacities within the region, and twhe ~~development of innovative renewable and low carbon technologies, in both short and long term~~re appropriate within neighbouring regions, consistent with developing effective competition; e) ensuring that network operators are granted adequate incentives, in both the short and the long term, to increase efficiencies in network performance and foster market integration; f) ensuring the ~~efficient functioning of their national market, and to promote effective competition in cooperation with competition authoritie~~prompt integration of network users.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 - introductory part

1. The regulatory authority shall have the following duties without prejudice to the competences of other national authorities:

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (a)

ensuring compliance of transmission and distribution system operators, and where relevant system owners, as well as of any natural gas undertakings, with their obligations under this Directive and other relevant Community legislation, including as regards cross border issuesdoes not affect EN version

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (b)

(b) cooperating on cross-border issues with the regulatory authority or authorities of those Member States and the Agency;

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (g)

(g) monitoring network security and reliability, ~~and reviewing~~setting or approving standards and requirements for quality of service and supply and reviewing performances for quality of service and supply network security and reliability rules;

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (h)

h) monitoring the level of transparency, ensuring compliance of n~~atural gas undertaking~~etwork operators with transparency obligations.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (i)

i) monitoring the level of market opening and competition at wholesale and retail levels, including on natural gas exchanges, household prices, switching rates, disconnection rates and household complaints in an agreed format, as well as any distortion or restriction of competition in cooperation with competition authorities, including providing any relevant information, bringing any relevant cases to the attention of the relevant competition authorities.deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (i a) (new)

"(ia) monitoring the occurrence of restrictive contractual practices, including exclusivity provisions, which may prevent or restrain the choice of non-household customers from contracting simultaneously with more than one supplier; where appropriate, the national regulatory authorities shall inform the national competition authorities of such practices;"

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (i b) (new)

"(ib) recognising contractual freedom with regards to long-term contracts and the possibility to conclude asset-based contracts providing that such contracts are compatible with existing Community legislation;"

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 1 – point (l)

(l) without prejudice to the competence of other national ~~regulatory~~ authorities, ensuring high standards of public service for natural gas, the protection of vulnerable customers, and that consumer protection measures set out in Annex A are effective.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 3 – introductory part

3. Member States shall ensure that regulatory authorities are granted the ~~power~~competences enabling them to c~~arry out the dutie~~omply with the tasks referred to in paragraph 1 and 2 in an efficient and expeditious manner. For this purpose, the regulatory authority shall have at least the following ~~power~~competences:

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 3 – point (a)

(a) to issue binding decisions on ~~gas undertaking~~network operators;

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 3 – point (b)

(b) to carry out in cooperation with the national competition authority investigations of the functioning of gas markets, and to decide, in the absence of violations of competition rules, of any appropriate measures necessary and proportionate to promote effective competition and ensure the proper studies on the functioning of ~~the~~gas market~~, including gas release program~~s;

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 3 – point (b)

(b) to carry out in cooperation with the national competition authority investigations of the functioning of gas markets, and to decide, in the ~~absence~~event of violations of ~~competi~~regulation rules,, of any appropriate measures necessary and proportionate to promote effective ~~competition and ensure the proper functioning of the market, including gas release programs~~grid operation;

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 6

6. Regulatory authorities shall have the authority to require transmission, ~~storage,~~ LNG and distribution system operators, if necessary, to modify the terms and conditions, including tariffs referred to in this Article, to ensure that they are proportionate and applied in a non- discriminatory manner.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 9

9. Member States shall create appropriate and efficient mechanisms for ~~regulation,~~ control and transparency so as to avoid any abuse of a dominant position, in particular to the detriment of consumers, and any predatory behaviour. These mechanisms shall take account of the provisions of the Treaty, and in particular Article 82 thereof.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 12

12. Decisions taken by regulatory authorities shall be duly reasoned and motivated.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24c – paragraph 14

14. The Commission may adopt guidelines on the implementation by the regulatory authorities of the powers described in this Article. This measure designed to amend non-essential elements of this Directive by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30(3).deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24d – paragraph 2

2. Regulatory authorities shall cooperate at least on a regional level to foster the creation of operational arrangements in order to ensure an optimal management of the network, ~~develop joint gas exchanges and th~~the effective allocation of cross-border capacity, and to ensure a ~~minimum~~ level of interconnection capacity within the region ~~to allow for~~consistent with promoting effective competition ~~to develop~~.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24d – paragraph 2

2. Regulatory authorities shall cooperate at least on a regional level to foster the creation of operational arrangements in order to ensure an optimal management of the network, develop joint gas exchanges and the allocation of crossborder capacity, and to ensure a ~~minimum~~n adequate level of interconnection capacity within the region to allow for effective competition to develop.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24d – paragraph 4

4. The Commission may adopt guidelines on the extent of the duties of the regulatory authorities to cooperate with each other and with the Agency, and on the situations in which the Agency becomes competent to decide upon the regulatory regime for infrastructures connecting at least two Member States. These measures, designed to amend non- essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30(3).deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24e

1. Any regulatory authority and the Commission may request the opinion of the Agency on the compliance of a decision taken by a regulatory authority with guidelines referred to in this Directive or in Regulation (EC) No 1775/2005. 2. The Agency shall provide its opinion to the regulatory authority which has requested it or to the Commission, respectively, and to the regulatory authority which has taken the decision in question within four months. 3. Where the regulatory authority which has taken the decision does not comply with the Agency’s opinion within four months from the date of receipt, the Agency shall inform the Commission. 4. Any regulatory authority may inform the Commission where it considers that a decision taken by a regulatory authority does not comply with guidelines referred to in this Directive or in Regulation (EC) No 1775/2005 within two months from the date of that decision. 5. Where the Commission, within two months after having been informed by the Agency in accordance with paragraph 3 or by a regulatory authority in accordance with paragraph 4, or on its own initiative within three months from the date of the decision finds that the decision of a regulatory authority raises serious doubts as to its compatibility with guidelines referred to in this Directive or in Regulation (EC) No 1775/2005, the Commission may decide to initiate proceedings. In such a case, it shall invite the regulatory authority and the parties to the proceedings before the regulatory authority to submit comments. 6. Where the Commission has decided to initiate proceedings, it shall, within not more than four months of the date of such decision, issue a final decision: (a) not to raise objections against the decision of the regulatory authority; or (b) requiring the regulatory authority concerned to amend or withdraw its decision if it considers that guidelines have not been complied with. 7. Where the Commission has not taken a decision to initiate proceedings or a final decision within the time-limits set in paragraphs 5 and 6 respectively, it shall be deemed not to have raised objections against the decision of the regulatory authority. 8. The regulatory authority shall comply with the Commission decision to amend or withdraw their decision within a period of two months and shall inform the Commission accordingly. 9. The Commission shall adopt guidelines setting out the details of the procedure to be followed for the application of this Article. This measure designed to amend non-essential elements of this Directive by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30(3).

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24f – paragraph 1

1. Member States shall ~~require~~demand that supply undertakings to keep at the disposal of ~~the national regulatory authority, the~~ national competition authority and the Commission, for at least five years, the ~~relevant~~necessary data relating to all transactions in gas supply contracts and gas derivatives with wholesale customers and transmission system operators as well as storage and LNG operators.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24f – paragraph 2

2. The data ~~shall~~may include details on the characteristics of the relevant transactions such as duration, delivery and settlement rules, the quantity, the dates and times of execution and the transaction prices and means of identifying the wholesale customer concerned, as well as specified details of all unsettled gas supply contracts and gas derivatives.

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24f – paragraph 3

3. The regulatory authority may decide to make available to market participants elements of this information provided that commercially sensitive information on individual market players or individual transactions is not released. This paragraph shall not apply to information about financial instruments which fall within the scope of Directive 2004/39/EC.deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24f – paragraph 4

4. To ensure the uniform application of this Article, the Commission may adopt guidelines which define the methods and arrangements for record keeping as well as the form and content of the data that shall be kept. These measures, designed to amend non-essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 30(3).deleted

2008/03/31
Committee: ITRE

Proposal for a directive – amending act
Article 1 – point 14

Directive 2003/55/EC
Article 24f – paragraph 5

5. With respect to transactions in gas derivatives of supply undertakings with wholesale customers and transmission system operators as well as storage and LNG operators, this Article shall only apply once the Commission has adopted the guidelines referred to in paragraph 4.deleted

2008/03/31
Committee: ITRE