REPORT on the proposal for a regulation of the European Parliament and of the Council on the internal market for electricity (recast)

27.2.2018 - (COM(2016)0861 – C8-0492/2016 – 2016/0379(COD)) - ***I

Committee on Industry, Research and Energy
Rapporteur: Krišjānis Kariņš
(Recast – Rule 104 of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on the internal market for electricity (recast)

(COM(2016)0861 – C8-0492/2016 – 2016/0379(COD))

(Ordinary legislative procedure – recast)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0861),

–  having regard to Article 294(2) and Article 194(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0492/2016),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality by the Czech Chamber of Deputies, the German Bundestag, the German Bundesrat, the Spanish Parliament, the French Senate, the Hungarian Parliament, the Austrian Federal Council, the Polish Sejm, the Polish Senate, the Romanian Chamber of Deputies and the Romanian Senate, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts[1],

–  having regard to the opinion of the European Economic and Social Committee of 31 May 2017[2]

–  having regard to the opinion of the Committee of the Regions of 13 July 2017[3]

–  having regard to Rules 104 and 59 of its Rules of Procedure,

–  having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on the Environment, Public Health and Food Safety (A8-0042/2018),

A.  whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the Commission proposal does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance;

1.  Adopts its position at first reading hereinafter set out, taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment    1 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5)  In the past, electricity customers were purely passive, often buying electricity at regulated prices which had no direct relation to the market. In the future, customers need to be enabled to fully participate in the market on equal footing with other market participants. To integrate growing shares of renewable energy, the future electricity system should make use of all available sources of flexibility, particularly demand response and storage. To achieve effective decarbonisation at lowest cost, it also needs to encourage energy efficiency.	(5)  In the past, electricity customers were purely passive, often buying electricity at regulated prices which had no direct relation to the market. In the future, customers need to be enabled to fully participate in the market on equal footing with other market participants and be empowered to manage their energy consumption. To integrate growing shares of renewable energy, the future electricity system should make use of all available sources of flexibility, particularly demand side solutions and storage, and of digitalisation through the integration of innovative technologies with the electricity system. To achieve effective decarbonisation at lowest cost, it also needs to encourage energy efficiency. The achievement of the internal energy market through the effective integration of renewable energy can drive investments in the long term and can contribute to delivering the objectives of the Energy Union and the 2030 climate and energy framework.
Amendment    2 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10)  Short-term markets will improve liquidity and competition by enabling more resources to participate fully in the market, especially those that are more flexible. Effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market. It is therefore critical to ensure that, as far as possible, administrative and implicit price caps are removed to allow scarcity prices to increase up to the value of lost load. When fully embedded in the market structure, short-term markets and scarcity pricing will contribute to the removal of other measures, such as capacity mechanisms, to ensure security of supply. At the same time, scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers, in particular households and SMEs.	(10)  Short-term markets will improve liquidity and competition by enabling more resources to participate fully in the market, especially those that are more flexible. Effective scarcity pricing will encourage market participants to react to market signals and to be available when the market most needs it and ensures that they can recover their costs in the wholesale market. It is therefore critical to ensure that administrative and implicit price caps are removed to allow scarcity pricing. When fully embedded in the market structure, short-term markets and scarcity pricing will contribute to the removal of other market distortive measures, such as capacity mechanisms, to ensure security of supply. At the same time, scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers, in particular households, SMEs and industrial consumers.
Amendment    3 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12)  The precondition for effective competition in the internal market in electricity is non-discriminatory and transparent charges for network use including interconnecting lines in the transmission system. The available capacity of those lines should be set at the maximum levels consistent with the safety standards of secure network operation.	(12)  The precondition for effective competition in the internal market in electricity is non-discriminatory, transparent and adequate charges for network use including interconnecting lines in the transmission system. The available capacity of those lines should be set at the maximum levels consistent with the safety standards of secure network operation.
Amendment    4 Proposal for a regulation Recital 26
Text proposed by the Commission	Amendment
(26)  A robust medium to long-term Union level resource adequacy assessment should be carried out by the ENTSO for Electricity to provide an objective basis for the assessment of adequacy concerns. The resource adequacy concern that capacity mechanisms address should be based on the EU assessment.	(26)  A robust methodology for the long-term Union level resource adequacy assessment should be carried out by the ENTSO for Electricity to provide an objective basis for the assessment of adequacy concerns at the Union, regional and Member State level and the biding zone levels. The resource adequacy concern that capacity mechanisms address should be based on the EU assessment. Capacity mechanisms should be allowed to be introduced only if the Union level resource adequacy assessment, conducted by the ENTSO-E, has identified adequacy concerns or if a positive decision concerning the implementation plan has been received from the Commission.
Amendment    5 Proposal for a regulation Recital 27
Text proposed by the Commission	Amendment
(27)  The medium to long-term resource adequacy assessment (from 10 year-ahead to year-ahead) set out in this regulation has a different purpose than the seasonal outlooks (six months ahead) as set out in Article 9 [Regulation on risk preparedness as proposed by COM(2016) 862]. Medium- to long-term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation. In addition, Regional Operational Centres also carry out regional adequacy assessments as defined in European legislation on electricity transmission system operation. These are very short-term adequacy assessments (from weak-ahead to day-ahead) used in the context of system operation.	(27)  The methodology for the long-term resource adequacy assessment (from 10 year-ahead to year-ahead) set out in this regulation has a different purpose than the seasonal outlooks (six months ahead) as set out in Article 9 [Regulation on risk preparedness as proposed by COM(2016) 862]. Medium- to long-term assessments are mainly used to identify adequacy concerns whereas seasonal outlooks are used to alert to short-term risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation. In addition, Regional Coordination Centres also carry out regional adequacy assessments as defined in European legislation on electricity transmission system operation. These are very short-term adequacy assessments (from weak-ahead to day-ahead) used in the context of system operation.
Amendment    6 Proposal for a regulation Recital 28 a (new)
Text proposed by the Commission	Amendment
	(28a)  Member States should introduce capacity mechanisms only as a last resort, where adequacy concerns cannot be addressed through the removal of existing market distortions. Before introducing a capacity mechanism which operates within the electricity market and therefore is market-distortive, Member States should evaluate whether strategic reserves would be sufficient to address their adequacy concerns. Strategic reserves are less distortive since they operate only outside the market and only in rare cases when markets can no longer clear. Strategic reserves can avoid financial consequences to market operators that cannot fulfil their balancing responsibilities and that would consequently bear significant cost.
Amendment    7 Proposal for a regulation Recital 31
Text proposed by the Commission	Amendment
(31)  Detailed rules for facilitating effective cross-border participation in capacity mechanisms other than reserve schemes should be laid down. Transmission system operators across the borders should facilitate interested generators wanting to participate in capacity mechanisms in other Member States. Therefore, they should calculate capacities up to which cross-border participation would be possible, enable participation and check availabilities. National regulatory authorities should enforce the cross-border rules in the Member States.	(31)  Detailed rules for facilitating effective cross-border participation in capacity mechanisms other than strategic reserves should be laid down in this Regulation. Transmission system operators across the borders should facilitate the participation of interested generators in capacity mechanisms in other Member States. Therefore, they should calculate capacities up to which cross-border participation would be possible, enable participation and check availabilities. National regulatory authorities should enforce the cross-border rules in the Member States.
Amendment    8 Proposal for a regulation Recital 35
Text proposed by the Commission	Amendment
Regional operational centres should carry out functions where their regionalisation brings added value compared to functions performed at national level. The functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional system operation, market operation and risk preparedness functions. The functions carried out by regional operational centres should exclude real time operation of the electricity system.	(35)  Regional coordination centres should carry out functions where their regionalisation brings added value compared to functions performed at national level. The functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional functions with regional importance. The functions carried out by regional coordination centres should exclude real time operation of the electricity system.
Amendment    9 Proposal for a regulation Recital 35 a (new)
Text proposed by the Commission	Amendment
	(35 a)  In performing their functions, regional coordination centres shall contribute to the achievement of the 2030 and 2050 objectives set out in the climate and energy policy framework.
Amendment    10 Proposal for a regulation Article 1 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a)  setting the basis for an efficient achievement of the objectives of the European Energy Union and in particular the climate and energy framework for 203030 by enabling market signals to be delivered for increased flexibility, decarbonisation and innovation;	(a)  setting the basis for an efficient achievement of the objectives of the European Energy Union and in particular the climate and energy framework for 203030 by enabling market signals to be delivered for increased flexibility, efficiency, decarbonisation, innovation and a higher share of renewable energy sources.
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30 COM/2014/015 final.	30 COM/2014/015 final.
Amendment    11 Proposal for a regulation Article 1 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b)  setting fundamental principles for well-functioning, integrated electricity markets, which allow non-discriminatory market access for all resource providers and electricity customers, empower consumers, enable demand response and energy efficiency, facilitate aggregation of distributed demand and supply, and contribute to the decarbonisation of the economy by enabling market integration and market-based remuneration of electricity generated from renewable sources;	(b)  setting fundamental principles for well-functioning cross-border, integrated and liquid electricity markets, which allow non-discriminatory market access for all resource providers and electricity customers, empower consumers, enable competitiveness on the global market, demand response, energy storage and energy efficiency, facilitate aggregation of distributed demand and supply, and contribute to the decarbonisation of the economy by enabling market and sectoral integration and market-based remuneration of electricity generated from renewable sources;
Amendment    12 Proposal for a regulation Article 1 – paragraph 1 – point d
Text proposed by the Commission	Amendment
(d)  facilitating the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in electricity. It provides for mechanisms to harmonise the rules for cross-border exchanges in electricity.	(d)  facilitating the emergence of a well-functioning, liquid and transparent whole sale market contributing to a high level of security of supply in electricity. It provides for mechanisms to harmonise the rules for cross-border exchanges in electricity.
Amendment    13 Proposal for a regulation Article 2 – paragraph 2 – point c
Text proposed by the Commission	Amendment
(c)  ‘congestion’ means a situation in which all requests from market participants to trade between two bidding zones cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows ;	(c)  ‘congestion’ means a situation in which all requests from market participants to trade cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows ;
Justification
According to the understanding of original definition, the congestion could only exist between two bidding zones which would not reflect real conditions of transmission system and must be considered as well (typical example would be case of DE with internal congestions inside one bidding zone).Definition should be also aligned with definitions used in the network codes and guidelines.
Amendment    14 Proposal for a regulation Article 2 – paragraph 2 – point e
Text proposed by the Commission	Amendment
(e)  'structural congestion' means congestion in the transmission system that is predictable, is geographically stable over time, and is frequently reoccurring under normal power system conditions;	(e)  'structural congestion' means congestion in the transmission system that is predictable, geographically stable over time, and frequently reoccurring under normal power system conditions;
Amendment    15 Proposal for a regulation Article 2 – paragraph 2 – point u
Text proposed by the Commission	Amendment
(u)  'capacity mechanism' means an administrative measure to ensure the achievement of the desired level of security of supply by remunerating resources for their availability not including measures relating to ancillary services;	(u)  capacity mechanism' means temporary administrative measures taken by Member States to fill the expected resource adequacy gap for electricity supply to match electricity demand by offering additional payments to capacity providers that operate in the electricity market, in addition to income obtained by selling electricity on the market in return for the availability of existing capacity or investment in new capacity to guarantee the necessary level of security of supply;
Amendment    16 Proposal for a regulation Article 2 – paragraph 2 – point v
Text proposed by the Commission	Amendment
(v)  'strategic reserve' means a capacity mechanism in which resources are only dispatched in case day-ahead and intraday markets have failed to clear, transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply, and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load;	(v)  'strategic reserve' means a capacity mechanism in which resources are held outside the electricity market and are only dispatched in case day-ahead and intraday markets have failed to clear, transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply, and imbalances in the market during periods where the reserves were dispatched are settled at least at technical price limits or at the value of lost load;
Amendment    17 Proposal for a regulation Article 3 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1.  Member States, national regulatory authorities, transmission system operators, distribution system operators, and market operators shall ensure that electricity markets are operated in accordance with the following principles:	1.  Member States, national regulatory authorities, transmission system operators, distribution system operators, market operators and third parties to whom responsibilities have been delegated or assigned, shall ensure that electricity markets are operated in accordance with the following principles:
Amendment    18 Proposal for a regulation Article 3 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b)  actions which prevent price formation on the basis of demand and supply or constitute a disincentive to the development of more flexible generation, low carbon generation, or more flexible demand shall be avoided;	(b)  actions which prevent price formation on the basis of demand and supply shall be avoided;
Amendment    19 Proposal for a regulation Article 3 – paragraph 1 – point b a (new)
Text proposed by the Commission	Amendment
	(ba)  the development of more flexible generation, sustainable low carbon generation, and more flexible demand shall be promoted;
Amendment    20 Proposal for a regulation Article 3 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c)  customers shall be enabled to benefit from market opportunities and increased competition on retail markets;	(c)  customers shall be enabled to benefit from market opportunities and increased competition on retail markets and be empowered to act as participant in the energy market and the energy transition;
Amendment    21 Proposal for a regulation Article 3 – paragraph 1 – point e
Text proposed by the Commission	Amendment
(e)  market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources and providing incentives for energy efficiency;	(e)  market rules shall support the decarbonisation of the electricity system and thus the economy by enabling the integration of electricity from renewable energy sources including energy storage and providing incentives for energy efficiency;
Amendment    22 Proposal for a regulation Article 3 – paragraph 1 – point f
Text proposed by the Commission	Amendment
(f)  market rules shall deliver appropriate investment incentives for generation, storage, energy efficiency and demand response to meet market needs and thus ensure security of supply;	(f)  market rules shall encourage free price formation to deliver appropriate investment incentives for generation, in particular long-term investments for a decarbonised and sustainable electricity system storage, energy efficiency, demand response and facilitate fair competition and thus ensure security of supply;
Amendment    23 Proposal for a regulation Article 3 – paragraph 1 – point g
Text proposed by the Commission	Amendment
(g)  barriers to cross-border electricity flows and cross-border transactions on electricity markets and related services markets shall be avoided;	(g)  barriers to cross-border electricity flows and cross-border transactions on electricity markets and related services markets shall be removed;
Amendment    24 Proposal for a regulation Article 3 – paragraph 1 – point h
Text proposed by the Commission	Amendment
(h)  market rules shall provide for regional cooperation where effective;	(h)  market rules shall provide for strong regional cooperation where effective;
Amendment    25 Proposal for a regulation Article 3 – paragraph 1 – point j a (new)
Text proposed by the Commission	Amendment
	(ja)  electricity generation operators shall bear full financial and legal responsibility deriving from their assets;
Amendment    26 Proposal for a regulation Article 3 – paragraph 1 – point k
Text proposed by the Commission	Amendment
(k)  market rules shall allow for progress in research and development to be realized and used to the benefit of society;	(k)  market rules shall allow for progress in research and development into sustainable, secure and low-carbon energy sources, technologies or systems to be realized and used to the benefit of society;
Amendment    27 Proposal for a regulation Article 3 – paragraph 1 – point l
Text proposed by the Commission	Amendment
(l)  market rules shall enable the efficient dispatch of generation assets and demand response;	(l)  market rules shall enable the efficient dispatch of generation assets, storage and demand response;
Amendment    28 Proposal for a regulation Article 3 – paragraph 1 – point m
Text proposed by the Commission	Amendment
(m)  market rules shall allow for entry and exit of electricity generation and electricity supply undertakings based on their assessment of the economic and financial viability of their operations;	(m)  market rules shall allow for entry and exit of electricity generation, energy storage and electricity supply undertakings based on their assessment of the economic and financial viability of their operations; effective competition and price formation;
Amendment    29 Proposal for a regulation Article 3 – paragraph 1 – point n
Text proposed by the Commission	Amendment
(n)  long-term hedging opportunities, which allow market participants to hedge against price volatility risks on a market basis, and eliminate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with EU treaty rules on competition.	(n)  long-term hedging opportunities, which allow market participants to hedge against price volatility risks on a market basis, and mitigate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with EU treaty rules on competition while current products offered on exchanges should be further expanded and promoted at Union level; Regulatory changes shall take into account effects on both short-term and long-term forward and futures markets and products.
Amendment    30 Proposal for a regulation Article 3 a (new)
Text proposed by the Commission	Amendment
	Article 3a
	Just transition
	The Commission shall support Member States that put in place a national strategy for the progressive reduction of installed coal and other solid fossil fuel generation and mining capacity through all available means, including targeted financial support to enable a “just transition” in regions affected by structural change. The Commission shall assist Member States to address the social, skills and industrial impacts of the clean energy transition.
	The Commission shall work in close partnership with the actors of coal and carbon-intensive regions, provide guidance, in particular for the access to and use of available funds and programmes, and shall encourage the exchange of good practices, including discussions on industrial roadmaps and re-skilling needs.
Amendment    31 Proposal for a regulation Article 4 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a.  When a Member State chooses to provide a derogation in accordance with Article 4(2), it shall ensure that the financial responsibilities for imbalances are fulfilled by another party.
Amendment    32 Proposal for a regulation Article 5 – paragraph 1
Text proposed by the Commission	Amendment
1.  All market participants shall have access to the balancing market, be it individually or through aggregation. Balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies.	1.  All market participants, including those providing electricity generated from variable renewable sources and demand side response and storage services shall have full access to the balancing market, be it individually or through aggregation. Balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies.
Amendment    33 Proposal for a regulation Article 5 – paragraph 2
Text proposed by the Commission	Amendment
2.  Balancing markets shall be organised in such a way as to ensure effective non-discrimination between market participants taking account of the different technical capability of generation from variable renewable sources and demand side response and storage.	2.  Balancing markets shall be organised in such a way as to ensure effective non-discrimination between market participants. All generation, including from variable renewable sources, demand side response and storage shall be enabled to participate on equal footing in balancing markets, taking account of the different technical capability.
Amendment    34 Proposal for a regulation Article 5 – paragraph 3
Text proposed by the Commission	Amendment
3.  Balancing energy shall be procured separately from balancing capacity. Procurement processes shall be transparent while at the same time respecting confidentiality.	3.  Balancing energy shall be procured separately from balancing capacity. The price of balancing energy shall not be pre-determined in a contract of balancing except where an exemption is applied in accordance with Article 16(6) of the Commission Regulation (EU) 2017/21951a. Procurement processes shall be transparent while at the same time respecting confidentiality.
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	1a Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (OJ L 312, 28.11.2017 p. 6).
Amendment    35 Proposal for a regulation Article 5 – paragraph 5
Text proposed by the Commission	Amendment
5.  Marginal pricing shall be used for the settlement of balancing energy. Market participants shall be allowed to bid as close to real time as possible, and at least after the intraday cross-zonal gate closure time determined in accordance with Article 59 of Commission Regulation (EU) 2015/122234	5.  The settlement of balancing energy shall be based on marginal pricing. On balancing markets, market participants shall be allowed to bid as close to real time as possible, and balancing energy gate closure times shall not be before intraday cross-zonal gate closure time determined in accordance with Article 59 of Commission Regulation (EU) 2015/122234
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34 Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).	34 Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).
Amendment    36 Proposal for a regulation Article 5 – paragraph 7
Text proposed by the Commission	Amendment
7.  The sizing of reserve capacity shall be performed at regional level in accordance with point 7 of Annex I. Regional operational centres shall support transmission system operators in determining the amount of balancing capacity that needs to be procured in accordance with point 8 of Annex I.	7.  The sizing of reserve capacity shall be performed at regional level in accordance with point 7 of Annex I. Regional coordination centres shall support transmission system operators in determining the amount of balancing capacity that needs to be procured in accordance with point 8 of Annex I.
Amendment    37 Proposal for a regulation Article 5 – paragraph 8
Text proposed by the Commission	Amendment
8.  The procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of Annex I. The procurement shall be based on a primary market and organised in such a way as to be non-discriminatory between market participants in the prequalification process individually or through aggregation.	8.  The procurement of balancing capacity shall be performed by the transmission system operators. The procurement shall be based on a primary market and organised in such a way as to be non-discriminatory between market participants in the prequalification process, whether market participants participate individually or through aggregation subject to technical constraints inherent in managing networks. The reservation of cross-zonal capacity for the exchange of balancing capacity shall be limited to 5% of the available capacity for the exchange of energy of the previous relevant calendar year between the respective bidding zones.
Amendment    38 Proposal for a regulation Article 5 – paragraph 9
Text proposed by the Commission	Amendment
9.  The procurement of upward balancing capacity and downward balancing capacity shall be carried out separately. The contracting shall be performed for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum of one day.	9.  The procurement of upward balancing capacity and downward balancing capacity shall be carried out separately. Procurement of balancing capacity shall be performed for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum duration of one day.
Amendment    39 Proposal for a regulation Article 5 – paragraph 10
Text proposed by the Commission	Amendment
10.  Transmission system operators shall publish close to real-time information on the current balancing state of their control areas, the imbalance price and the balancing energy price.	10.  Transmission system operators or third parties to whom these responsibilities have been delegated by the relevant transmission system operator, Member State or regulatory authority shall publish close to real-time information on the current balancing state of their control areas, the estimated imbalance price and the estimated balancing energy price.
Amendment    40 Proposal for a regulation Article 5 – paragraph 10 a (new)
Text proposed by the Commission	Amendment
	10a.  Member States shall report on the functioning and transparency of, and access to, in particular by small providers, the balancing markets, in particular for the purpose of Article 4, through the reporting procedure on the internal energy market laid down in Article 21 of Regulation .../... [Governance of the Energy Union].
Amendment    41 Proposal for a regulation Article 6 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a)  be organised in such a way as to be non-discriminatory;	(a)  be non-discriminatory;
Amendment    42 Proposal for a regulation Article 6 – paragraph 3
Text proposed by the Commission	Amendment
3.  Market operators shall be free to develop products and trading opportunities that suit market participants' demand and needs and ensure that all market participants are able to access the market individually or through aggregation. They shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies.	3.  Market operators shall be free to develop products and trading opportunities that suit market participants' demand and needs and ensure that all market participants are able to access the market individually or through aggregation. They shall respect the need to accommodate increasing shares of variable generation and energy storage as well as increased demand responsiveness and the advent of new technologies
Amendment    43 Proposal for a regulation Article 7 – paragraph 1
Text proposed by the Commission	Amendment
1.  Market operators shall allow market participants to trade energy as close to real time as possible and at least up to the intraday cross-zonal gate closure time determined in accordance with Article 59 of Regulation (EU) 2015/1222.	1.  Market operators shall allow market participants to trade energy as close to real time as possible and at least up to 15 minutes before real time across all bidding zones.
Amendment    44 Proposal for a regulation Article 7 – paragraph 2
Text proposed by the Commission	Amendment
2.  Market operators shall provide market participants with the opportunity to trade in energy in time intervals at least as short as the imbalance settlement period in both day-ahead and intraday markets.	2.  Market operators shall provide market participants with the opportunity to trade in energy in national and cross-border markets in time intervals at least as short as the imbalance settlement period in both day-ahead and intraday markets.
Amendment    45 Proposal for a regulation Article 7 – paragraph 3
Text proposed by the Commission	Amendment
3.  Market operators shall provide products for trading in day-ahead and intraday markets which are sufficiently small in size, with minimum bid sizes of 1 Megawatt or less, to allow for the effective participation of demand-side response, energy storage and small-scale renewables.	3.  Market operators shall provide products for trading in day-ahead and intraday markets which are sufficiently small in size, with minimum bid sizes of 500 Kilowatt, to allow for the effective participation of demand-side response, energy storage and small-scale renewables including directly by customers.
Amendment    46 Proposal for a regulation Article 7 – paragraph 4
Text proposed by the Commission	Amendment
4.  By 1 January 2025, the imbalance settlement period shall be 15 minutes in all control areas.	4.  By 1 January 2021, the imbalance settlement period shall be 15 minutes in all control areas.
Amendment    47 Proposal for a regulation Article 8 – paragraph 3
Text proposed by the Commission	Amendment
3.  Subject to compliance with treaty rules on competition, market operators shall be free to develop forward hedging products including for the long-term to provide market participants, in particular owners of generation facilities using renewable energy sources, with appropriate possibilities to hedge financial risks from price fluctuations. Member States shall not restrict such hedging activity to trades within a Member State or bidding zone.	3.  Subject to compliance with treaty rules on competition, market operators shall be free to develop forward hedging products including for the long-term to provide market participants, in particular owners of generation facilities using renewable energy sources, with appropriate possibilities to hedge financial risks from price fluctuations. Member States shall support the liquidity of such products, in particular of exchange-based products that have already been developed, and shall allow them to be traded across bidding zones.
Amendment    48 Proposal for a regulation Article 9 – paragraph 1
Text proposed by the Commission	Amendment
1.  There shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with Article 10. There shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 € or less and, in the event that it is or anticipated to be reached, set at a lower value for the following day. This provision shall apply, inter alia, to bidding and clearing in all timeframes and include balancing energy and imbalance prices.	1.  There shall be no maximum and no minimum limit of the wholesale electricity price. This provision shall apply, inter alia, to bidding and clearing in all timeframes and include balancing energy and imbalance prices.
Amendment    49 Proposal for a regulation Article 9 – paragraph 2
Text proposed by the Commission	Amendment
2.  By way of derogation from paragraph 1, until [OP: two years after entry into force] market operators may apply limits on maximum clearing prices for day-ahead and intraday timeframes in accordance with Articles 41 and 54 of Regulation (EU) 2015/1222. In the event that limits are, or are anticipated to be, reached, they shall be raised for the following day.	2.  By way of derogation from paragraph 1, market operators may apply technical limits on maximum and minimum bidding limits for day-ahead and intraday timeframes in accordance with Articles 41 and 54 of Regulation (EU) 2015/1222 and for the balancing timeframe in accordance with Regulation (EU) 2017/2195. In the event that those technical limits are, or are anticipated to be, reached, they shall be automatically adjusted. The technical price limits shall be sufficiently high so as not to unnecessarily restrict trade, and shall be harmonised for the common market area. They shall be returned to initial values after the scarcity situation is over.
Amendment    50 Proposal for a regulation Article 10 – paragraph 1
Text proposed by the Commission	Amendment
1.  By [OP: one year after entry into force] Member States shall establish a single estimate of the Value of Lost Load (VoLL) for their territory, expressed in €/MWh. That estimate shall be reported to the Commission and made publically available. Member States may establish different VoLL per bidding zone if they have several bidding zones in their territory. In establishing VoLL, Member States shall apply the methodology developed pursuant to Article 19(5).	1.  By [OP: one year after entry into force] Member States shall establish a single estimate of the Value of Lost Load (VoLL) for their territory, expressed in€/MWh. That estimate shall be reported to the Commission and made publically available. In the case of cross-border bidding zones, Member States shall establish a common estimate of the VoLL. Member States may establish different VoLL per bidding zone if they have several bidding zones in their territory. In establishing VoLL, Member States shall apply the methodology developed pursuant to Article 19(5).
Amendment    51 Proposal for a regulation Article 11 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a)  generating installations using renewable energy sources or high-efficiency cogeneration with an installed electricity capacity of less than 500 kW; or	(a)  generating installations using renewable energy sources or high-efficiency cogeneration with an installed electricity capacity of less than 500 kW;
Amendment    52 Proposal for a regulation Article 11 – paragraph 2 – point b
Text proposed by the Commission	Amendment
(b)  demonstration projects for innovative technologies.	(b)  generating installations which are demonstration projects for innovative technologies;
	Member States may apply higher limits to local energy communities as established in the Directive (EU) ... [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2].
Amendment    53 Proposal for a regulation Article 11 – paragraph 3
Text proposed by the Commission	Amendment
3.   Where the total capacity of generating installations subject to priority dispatch under paragraph 2 is higher than 15 % of the total installed generating capacity in a Member State, point (a) of paragraph 2 shall apply only to additional generating installations using renewable energy sources or high-efficiency cogeneration with an installed electricity capacity of less than 250 kW.	3.   A Member State which does not at the time of entry into force of this Regulation grant priority dispatch to any generating installations may request to be exempted from the provisions of paragraph 2 if it can demonstrate to the Commission that all of the following conditions are met:
	(a) no priority dispatch exists for installations other than those listed in paragraph 2 is in place;
	(b) its liquid intraday, wholesale and balancing markets are fully accessible to all market players in accordance with the provisions of this Regulation;
	(c) its curtailment rules and congestion management are transparent to all market parties and comply with the provisions of this Regulation;
	(d) its renewable energy target for 2030 is sufficient for the collective achievement of the Union’s binding overall target for share of energy from renewable sources pursuant to Article 3(2) of [Directive 2009/28/EC as proposed by COM(2016) 767]and the Member State is expected to meet its target
	The Commission shall approve or reject a request for exemption within six months of receipt of the request. Any exemption granted shall avoid retroactive changes for installations already benefiting from priority dispatch, notwithstanding any agreement between a Member State and an installation on a voluntary basis.
From 1 January 2026, point (a) of paragraph 2 shall apply only to generating installations using renewable energy sources or high-efficiency cogeneration with an installed electricity capacity of less than 250 kW or, if the threshold under the first sentence of this paragraph has been reached, of less than 125 kW.	From 1 January 2026, point (a) of paragraph 2 shall apply only to generating installations using renewable energy sources or high-efficiency cogeneration with an installed electricity capacity of less than 250 kW.
Amendment    54 Proposal for a regulation Article 11 – paragraph 4
Text proposed by the Commission	Amendment
4.  Generating installations using renewable energy sources or high-efficiency cogeneration which have been commissioned prior to [OP: entry into force] and have, when commissioned, been subject to priority dispatch under Article 15(5) of Directive 2012/27/EU of the European Parliament and of the Council or Article 16(2) of Directive 2009/28/EC of the European Parliament and of the Council35 shall remain subject to priority dispatch. Priority dispatch shall no longer be applicable from the date where the generating installation is subject to significant modifications, which shall be the case at least where a new connection agreement is required or the generation capacity is increased.	4.  Without prejudice to paragraph 3 of this Article, generating installations using renewable energy sources or high-efficiency cogeneration which have been commissioned prior to [OP: entry into force] and have, when commissioned, been subject to priority dispatch under Article 15 (5) of Directive 2012/27/EU of the European Parliament and of the Council or Article 16 (2) Directive 2009/28/EC of the European Parliament and of the Council39 shall remain subject to priority dispatch. Priority dispatch shall no longer be applicable from the date where the generating installation is subject to significant modifications, which shall be the case at least where a new connection agreement is required or the generation capacity is increased.
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35 Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).	35 Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).
Amendment    55 Proposal for a regulation Article 12 – paragraph 2
Text proposed by the Commission	Amendment
2.  The resources curtailed or redispatched shall be selected amongst generation or demand facilities submitting offers for curtailment or redispatching using market-based mechanisms and be financially compensated. Non-market-based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market-based alternative is available, where all available market-based resources have been used, or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition. The provision of market-based resources shall be open to all generation technologies, storage and demand response, including operators located in other Member States unless technically not feasible.	2.  The resources curtailed or redispatched shall be selected amongst generation, energy storage, and/or demand response facilities submitting offers for curtailment or redispatching using market-based mechanisms and be financially compensated. Non-market-based curtailment or redispatching of generation or redispatching of energy storage and/or demand response shall only be used for operational security reasons and where no market-based alternative is available or where all available market-based resources have been used, or where the number of generation, energy storage or demand facilities available in the area where suitable generation, energy storage or demand facilities for the provision of the service are located is too low to ensure effective competition. The provision of market-based resources shall be open to all generation technologies, storage and demand response, including operators located in other Member States unless technically not feasible.
Amendment    56 Proposal for a regulation Article 12 – paragraph 3
Text proposed by the Commission	Amendment
3.  The responsible system operators shall report at least once per year to the competent regulatory authority on curtailment or downward redispatching of generating installations using renewable energy sources or high-efficiency cogeneration and on measures taken to reduce the need for such curtailment or downward redispatching in the future. Curtailment or redispatching of generating installations using renewable energy sources or high-efficiency cogeneration shall be subject to compensation pursuant to paragraph 6.	3.  The responsible system operators shall report at least once per year to the competent regulatory authority, which shall be transmitted to the Agency, on:
	(a) the level of development and effectiveness of market-based curtailment or redispatching mechanisms for generation and demand facilities;
	(b) the reasons, volumes in MWh and type of generation source subject to curtailment or downward redispatching;
	(c) the measures taken to reduce the need for the curtailment or downward redispatching of generating installations using renewable energy sources or high-efficiency cogeneration in the future including investments in digitalisation of the grid infrastructure and in services that increase flexibility;
	(d) requests and contractual arrangements made with generating units for them to operate at a certain level of electricity infeed, the necessity of which the system operators shall justify,, specifying to what extent those services could not be provided by other units.
	The competent regulatory authority shall publish the data referred to in paragraphs (a) to (d) together with recommendations for improvement where necessary.
	Curtailment or redispatching of generating installations using renewable energy sources or high-efficiency cogeneration shall be subject to compensation pursuant to paragraph 6.
Amendment    57 Proposal for a regulation Article 12 – paragraph 4 – point a
Text proposed by the Commission	Amendment
(a)  guarantee the capability of transmission and distribution networks to transmit electricity produced from renewable energy sources or high-efficiency cogeneration with minimum possible curtailment or redispatching. That shall not prevent network planning from taking into account limited curtailment or redispatching where this is shown to be more economically efficient and does not exceed 5 % of installed capacities using renewable energy sources or high-efficiency cogeneration in their area;	(a)  guarantee the capability of transmission and distribution networks to transmit electricity produced from renewable energy sources, energy storage, demand-response or high-efficiency cogeneration with minimum possible curtailment or redispatching. That shall not prevent network planning from taking into account limited curtailment or redispatching where they can demonstrate in a transparent way that this is more economically efficient and does not exceed 5 % of installed capacities using renewable energy sources, energy storage, demand-response or high-efficiency cogeneration in their area;
Amendment    58 Proposal for a regulation Article 12 – paragraph 4 – point b (new)
Text proposed by the Commission	Amendment
	(ba)  ensure that their networks are sufficiently flexible such that they are in a position to manage them.
Amendment    59 Proposal for a regulation Article 12 – paragraph 5 – point a
Text proposed by the Commission	Amendment
(a)  generating installations using renewable energy sources shall only be subject to downward redispatching or curtailment if no other alternative exists or if other solutions would result in disproportionate costs or risks to network security;	(a)  generating installations using renewable energy sources shall only be subject to downward redispatching or curtailment if no other alternative exists or if other solutions would result in significantly disproportionate costs or significant risks to network security;
Amendment    60 Proposal for a regulation Article 12 – paragraph 5 – point b
Text proposed by the Commission	Amendment
(b)  generating installations using high-efficiency cogeneration shall only be subject to downward redispatching or curtailment if, other than curtailment or downward redispatching of generating installations using renewable energy sources, no other alternative exists or if other solutions would result in disproportionate costs or risks to network security;	(b)  electricity generated in a high-efficiency cogeneration process shall only be subject to downward redispatching or curtailment if, other than curtailment or downward redispatching of generating installations using renewable energy sources, no other alternative exists or if other solutions would result in disproportionate costs or risks to network security;
Amendment    61 Proposal for a regulation Article 12 – paragraph 6 – introductory part
Text proposed by the Commission	Amendment
6.  Where non-market based curtailment or redispatching is used, it shall be subject to financial compensation by the system operator requesting the curtailment or redispatching to the owner of the curtailed or redispatched generation or demand facility. Financial compensation shall at least be equal to the highest of the following elements:	6.  Where non-market based curtailment or redispatching is used, it shall be subject to financial compensation by the system operator requesting the curtailment or redispatching to the owner of the curtailed or redispatched generation, energy storage or demand facility. Financial compensation shall at least be equal to the highest of the following elements:
Amendment    62 Proposal for a regulation Article 12 – paragraph 6 – point b
Text proposed by the Commission	Amendment
(b)  90 % of the net revenues from the sale of electricity on the day-ahead market that the generating or demand facility would have generated without the curtailment or redispatching request. Where financial support is granted to generating or demand facilities based on the electricity volume generated or consumed, lost financial support shall be deemed part of the net revenues.	(b)  net revenues from the sale of electricity on the day-ahead market that the generating or demand facility would have generated without the redispatching request, including lost financial support where financial support is granted to generating or demand facilities based on the electricity volume generated or consumed..
Amendment    63 Proposal for a regulation Article 13 – paragraph 1
Text proposed by the Commission	Amendment
1.  Bidding zone borders shall be based on long-term, structural congestions in the transmission network and bidding zones shall not contain such congestions. The configuration of bidding zones in the Union shall be designed in such a way as to maximise economic efficiency and cross-border trading opportunities while maintaining security of supply.	1.  The configuration of bidding zones in the Union shall be designed in such a way as to ensure liquidity of day-ahead and intraday markets, and thus to maximise economic efficiency and cross-border trading opportunities while maintaining security of supply. Bidding zone borders shall be based on long-term, structural congestions in the transmission network and bidding zones shall not contain such congestions unless they have no impact on neighbouring bidding zones, or their impact is mitigated by remedial actions.
Amendment    64 Proposal for a regulation Article 13 – paragraph 2
Text proposed by the Commission	Amendment
2.  Each bidding zone should be equal to an imbalance price area.	2.  Each bidding zone should be equal to an imbalance price area, except where an imbalance price area may constitute a part of a bidding zone.
Amendment    65 Proposal for a regulation Article 13 – paragraph 3
Text proposed by the Commission	Amendment
3.  In order to ensure an optimal bidding zone definition in closely interconnected areas, a bidding zone review shall be carried out. That review shall include analysis of the configuration of bidding zones in a coordinated manner with the involvement of affected stakeholders from all affected Member States, following the process in accordance with Articles 32 to 34 of Regulation (EU) 2015/1222. The Agency shall approve and may request amendments to the methodology and assumptions that will be used in the bidding zone review process as well as the alternative bidding zone configurations considered.	3.  In order to ensure an optimal bidding zone definition in closely interconnected areas, a bidding zone review shall be carried out. That review shall include analysis of the configuration of bidding zones in a coordinated manner with the involvement of affected stakeholders from all affected Member States, following the process in accordance with Articles 32 to 34 of Regulation (EU) 2015/1222. Current bidding zones shall be assessed based on their ability to create a reliable market environment, ensure sufficient flexible generation and load capacity, which is crucial for avoiding grid bottlenecks, balancing electricity demand and supply securing the long-term security of investments and the grid. The Agency shall approve and may request amendments to the methodology and assumptions that will be used in the bidding zone review process as well as the alternative bidding zone configurations considered. The methodology shall take due account of infrastructure development projects that are expected to be realised within the next 5 years.
Amendment    66 Proposal for a regulation Article 13 – paragraph 4
Text proposed by the Commission	Amendment
4.  The transmission system operators participating in the bidding zone review shall submit a proposal to the Commission regarding whether to amend or maintain the bidding zone configuration. Based on that proposal, the Commission shall adopt a decision whether to amend or maintain the bidding zone configuration, [no later than 6 months after entry into force of this Regulation, specific date to be inserted by OP] or by six months after the conclusion of the bidding zone configuration launched in accordance with points (a), (b) or (c) of Article 32(1) of Regulation (EU) 2015/1222, whichever comes later.	4.  The transmission system operators participating in the bidding zone review shall submit a proposal to the relevant Member States whether to amend or maintain the bidding zone configuration. The relevant Member States shall be those participating in the review pursuant to Article 32(2) of Regulation (EU) 2015/1222 and those in the same Capacity Calculation Region(s) pursuant to Regulation (EU) 2015/1222. Based on the proposal, the relevant Member States shall come to a unanimous decision within six months on whether to amend or maintain the bidding zone configuration. Other Member States, Energy Community Contracting Parties or other third countries sharing the same synchronous area with any Member State may submit comments. The decision shall be reasoned, in accordance with relevant Union law and shall take account of any observations of other Member States, Energy Community Contracting Parties and other third countries sharing the same synchronous area with any Member State, as well as of commitments on addressing existing congestion made by the relevant Member States. The relevant Member States shall notify the Commission and the Agency of their decision and any cross-border agreements entered into by the Member States, the regulatory authorities or the transmission system operators for the purpose of achieving consensus. Agreements entered into by the relevant Member States shall not deviate from coordinated capacity calculation processes as set out in Article 14 of this Regulation nor from the relevant provisions of Regulation (EU) 2015/1222.
Amendment    67 Proposal for a regulation Article 13 – paragraph 4 a(new)
Text proposed by the Commission	Amendment
	4 a.  Where the relevant Member States fail to come to a unanimous decision within the deadline referred to in paragraph 4, or where the Member States become aware of the fact that commitments on which a previous unanimous decision was based were not complied with, they shall immediately notify the Commission.
	The Commission shall initiate a conciliation procedure and shall act as a mediator between the relevant Member States. In the conciliation procedure, the relevant Member States shall, within six months of such initiation, adopt a unanimous decision on whether to amend or maintain the bidding zone configuration.
	Where the relevant Member States in the conciliation fail to adopt a unanimous decision within six months, the Member State with the internal structural congestion shall have the choice to either amend its bidding zone or establish a roadmap with concrete measures on how to overcome the congestions in its national territory in due time. That Member State shall immediately notify its choice to the Commission.
	For those Member States that choose to amend their bidding zones, the Commission shall adopt a decision within six months of that notification, after a thorough evaluation of all the issues at stake, together with an assessment of all available solutions.
Amendment    68 Proposal for a regulation Article 13 – paragraph 5
Text proposed by the Commission	Amendment
5.  The decision referred to in paragraph 4 shall be based on the result of the bidding zone review and the transmission system operators' proposal concerning its maintenance or amendment. The decision shall be justified, in particular as regards possible deviations from the result of the bidding zone review.	5.  Where the relevant Member State chooses to establish a detailed road map with concrete milestones on how the congestion issues will be resolved, that Member State shall, within six months of the Commission decision, present that roadmap to the Commission and other relevant Member States. During the implementation of the roadmap the relevant Member State shall regularly report to the Commission on the progress made.
	Irrespective of the concrete progress of the roadmap, the Member State that is implementing a roadmap shall ensure that the cross-border trade capacities are increased every year up to the benchmark level of at least 75% calculated in accordance with Article 14 paragraph 7, which is to be achieved by the end of 2025. The yearly increase shall be achieved by means of a linear trajectory.
	The starting of this trajectory shall be either the capacity allocated at this border in the year before adoption of the roadmap or the average of the three last years before the adoption of the roadmap, whatever is higher.
	Member States shall be considered to be in compliance with Article 14 paragraph 7 if the capacity made available for cross-zonal trade is at least equal to the values of the linear trajectory.
Amendment    69 Proposal for a regulation Article 13 – paragraph 5 a (new)
Text proposed by the Commission	Amendment
	5a.  The relevant transmission system operators and national regulatory authorities shall assess yearly whether the available cross-border capacity has reached the linear trajectory or, as of the end of 2025, the minimum level outlined in Article 14(7).
Amendment    70 Proposal for a regulation Article 13 – paragraph 5 b (new)
Text proposed by the Commission	Amendment
	5b.  For those Member States for which the assessment referred to in paragraph 5a demonstrates that a transmission system operator has not been compliant with the linear trajectory, or as of the end of 2025, with the level outlined in Article 14 (7), the Commission may recommend additional measures and as a measure of last resort, adopt a decision whether to amend or maintain the bidding zone configuration in and between those Member States.
Amendment    71 Proposal for a regulation Article 13 – paragraph 6
Text proposed by the Commission	Amendment
6.  Where further bidding zone reviews are launched under Article 32(1)(a), (b) or (c) of Regulation (EU) 2015/1222, the Commission may adopt a decision within six months of the conclusion of that bidding zone review.	deleted
Amendment    72 Proposal for a regulation Article 13 – paragraph 7
Text proposed by the Commission	Amendment
7.  The Commission shall consult relevant stakeholders on its decisions under this Article before they are adopted.	7.  Member States and the Commission shall consult relevant stakeholders before adopting a decision under this Article.
Amendment    73 Proposal for a regulation Article 13 – paragraph 8
Text proposed by the Commission	Amendment
8.  The Commission decision shall specify the date of implementation of a change. That implementation date shall balance the need for expediency with practical considerations, including forward trade of electricity. The Commission may define appropriate transitional arrangements as part of its decision.	8.  The decision adopted under this Article shall specify the date of implementation of a change. That implementation date shall balance the need for expediency with practical considerations, including forward trade of electricity. Appropriate transitional arrangements may be defined as part of the decision.
Amendment    74 Proposal for a regulation Article 13 – paragraph 8 a (new)
Text proposed by the Commission	Amendment
	8a.  Where further bidding zone reviews are launched under point (a), (b) or (c) of Article 32(1) of Regulation (EU) 2015/1222, paragraphs 4 to 8 of this Article shall apply.
Amendment    75 Proposal for a regulation Article 14 – paragraph 3
Text proposed by the Commission	Amendment
3.  The maximum capacity of the interconnections and/or the transmission networks affecting cross-border flows shall be made available to market participants, complying with safety standards of secure network operation. Counter-trading and redispatch, including cross-border redispatch, shall be used to maximise available capacities unless it is demonstrated that it is not beneficial to economic efficiency at Union level.	3.  The maximum capacity of the interconnections and/or the transmission networks affecting cross-border flows shall be made available to market participants, complying with safety standards of secure network operation. Counter-trading and redispatch, including cross-border redispatch, shall be used to maximise available capacities unless it is demonstrated that it is not beneficial to economic efficiency at Union level.
	When allocating cost of remedial actions between transmission system operators, regulators shall analyse to what extent unscheduled flows leaving and re-entering a bidding zone contribute to the congestion observed between two bidding zones and allocate the counter-trading and redispatch costs in proportion to their contribution to the congestion.
Amendment    76 Proposal for a regulation Article 14 – paragraph 7
Text proposed by the Commission	Amendment
7.  Transmission system operators shall not limit the volume of interconnection capacity to be made available to other market participants in order to solve congestion inside their own control area or as a means of managing flows on a border between two control areas observed even without any transaction, that is to say flows over control areas caused by origin and destination within one control area.	7.  Transmission system operators shall not limit the volume of interconnection capacity to be made available to other market participants in order to solve congestion inside their own control area or as a means of managing flows on a border between two control areas observed even without any transaction, that is to say flows over control areas caused by origin and destination within one control area.
	Without prejudice to the forth subparagraph of Article 13(5), this paragraph shall be considered to be complied with if the following minimum levels of available capacity for cross-zonal trade, which is calculated pursuant to the capacity allocation and congestion management guideline adopted on the basis of Article 18 of Regulation (EU) 714/2009 taking account of contingencies, are reached:
	(i)   for borders using a coordinated net transfer capacity approach, if at least 75 % of the net transfer capacity pursuant to capacity allocation and congestion management guideline are made available for cross-border trade;
	(ii)   for borders using a flow-based approach, if on cross-zonal and internal critical network elements considered in the flow-based calculation at least 75 % of the thermal capacity after reduction of the amount required to secure the N-1 principle pursuant to the capacity allocation and congestion management guideline is used as an input for capacity allocation.
Amendment    77 Proposal for a regulation Article 16 – title
Text proposed by the Commission	Amendment
Charges for access to networks	Charges for access to networks, use of networks and reinforcement
Amendment    78 Proposal for a regulation Article 16 – paragraph 1
Text proposed by the Commission	Amendment
1.  Charges applied by network operators for access to networks , including charges for connection to the networks, charges for use of networks, and, where applicable, charges for related network reinforcements, shall be transparent, take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non-discriminatory manner. In particular, they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level, either positively or negatively. They shall not discriminate against energy storage and shall not create disincentives for participation in demand response. Without prejudice to paragraph 3, those charges shall not be distance-related.	1.  Charges applied by network operators for access to networks , including charges for connection to the networks, charges for use of networks, and, where applicable, charges for related network reinforcements, shall be fair, cost-reflective, transparent, take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non-discriminatory manner. Grid tariffs shall not include unrelated costs supporting other policy objectives, such as taxes or levies, as this would distort production, consumption and investment decisions. In particular, they shall neutrally support overall system efficiency in the long run through price signals to consumers and producers and they shall as far as possible be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level, either positively or negatively. They shall not discriminate against energy storage and aggregation and shall not create disincentives for self-generation, self-consumption and for participation in demand response. Without prejudice to paragraph 3, those charges shall not be distance-related.
Amendment    79 Proposal for a regulation Article 16 – paragraph 2
Text proposed by the Commission	Amendment
2.  Tariffs shall grant appropriate incentives to transmission and distribution system operators, over both the short and long term, to increase efficiencies, including energy efficiency, foster market integration and security of supply, and support investments and the related research activities.	2.  Tariffs shall grant appropriate incentives to transmission and distribution system operators, over both the short and long term, to increase efficiencies, including energy efficiency, foster market integration and security of supply, and global competitiveness, and support efficient investments, in particular in digitalisation, flexibility services and interconnections, and the related research activities. Tariffs shall not create disincentives for energy storage, demand response or self-generation production.
Amendment    80 Proposal for a regulation Article 16 – paragraph 7
Text proposed by the Commission	Amendment
7.  Distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers, and may be differentiated based on system users' consumption or generation profiles. Where Member States have implemented the deployment of smart metering systems, regulatory authorities may introduce time differentiated network tariffs, reflecting the use of the network, in a transparent and foreseeable way for the consumer.	7.  Transmission and distribution tariffs shall be cost-reflective by taking into account the investment cost, added value of distributed generation, flexibility, digitalisation, demand response, storage and use of the transmission and distribution network by system users including active customers, may contain grid connection capacity elements and may be differentiated based on system users' consumption or generation profiles. Where Member States have implemented the deployment of smart metering systems, competent regulatory authorities shall introduce time differentiated network tariffs, reflecting the use of the network, in a transparent and foreseeable and cost efficient way for the consumer. Member States shall ensure that tariffs are not discriminatory.
Amendment    81 Proposal for a regulation Article 16 – paragraph 8
Text proposed by the Commission	Amendment
8.  Regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems. For that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies, including energy efficiency, in their networks.	8.  Regulatory authorities shall provide incentives to distribution system operators for the most efficient operation and development of their networks and integrate innovative solutions in the distribution systems, including through the procurement of services. For that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies, including energy efficiency, flexibility and the digitalisation of the distribution networks including the deployment of smart grids and intelligent metering systems, in their networks.
Amendment    82 Proposal for a regulation Article 16 – paragraph 9 – introductory part
Text proposed by the Commission	Amendment
9.  By [OP: please add specific date – three months after entry into force] the Agency shall provide a recommendation addressed to regulatory authorities on the progressive convergence of transmission and distribution tariff methodologies. That recommendation shall address at least:	9.  By [OP: please add specific date – three months after entry into force] the Agency shall evaluate the feasibility on the convergence of transmission and distribution tariff methodologies. The feasibility study shall address at least:
Amendment    83 Proposal for a regulation Article 16 – paragraph 9 – point g
Text proposed by the Commission	Amendment
(g)  groups of network users subject to tariffs, including tariff exemptions.	(g)  groups of network users subject to tariffs according to characteristics and forms of consumption, including tariff exemptions
Amendment    84 Proposal for a regulation Article 16 – paragraph 9 a (new)
Text proposed by the Commission	Amendment
	9a.  Regulatory authorities shall adopt a set of indicators for measuring the performance of transmission and distribution system operators, which should at least include all of the following:
	(a) volume of curtailed energy in MWh, disaggregated per type of generation source;
	(b) percentage of the length of lines operated under dynamic line ratings;
	(c) percentage of substations remotely monitored and controlled in real-time;
	(d) percentage of the length of lines operated under dynamic line ratings;
	(e) losses in high, medium and low-voltage grids;
	(f) the frequency and duration of power interruptions on the grid.
	By [two years after the entry into force of this Regulation], and every two years thereafter, regulatory authorities shall publish a report on the performance of transmission and distribution system operators, together with recommendations for improvement where necessary.
Amendment    85 Proposal for a regulation Article 17 – paragraph 2
Text proposed by the Commission	Amendment
2.  Any revenues resulting from the allocation of interconnection capacity shall be used for the following purposes:	2.  Any revenues resulting from the allocation of interconnection capacity shall be used for the following purposes:
(a)  guaranteeing the actual availability of the allocated capacity;	(a)  guaranteeing the actual availability of the allocated capacity; or
(b)  maintaining or increasing interconnection capacities through network investments, in particular in new interconnectors.	(b)  maintaining or increasing interconnection capacities through optimisation of the usage of existing interconnectors by coordinated remedial and countertrading actions or network investments, up to the target value for transfer capacity at cross-border boundaries.
If the revenues cannot be efficiently used for the purposes set out in points (a) or (b) of the first subparagraph, they shall be placed on a separate internal account line for future use on these purposes.	Where the objectives set out in points (a) and (b) of the first subparagraph are fulfilled, the residual revenues may be used as income to be taken into account by the national regulatory authorities when approving the methodology for calculating network tariffs and/or fixing network tariffs.
Amendment    86 Proposal for a regulation Article 17 – paragraph 3
Text proposed by the Commission	Amendment
3.  The use of revenues in accordance with points (a) and (b) of paragraph 2 shall be subject to a methodology proposed by the Agency and approved by the Commission. The Agency's proposal shall be submitted to the Commission by [OP: 12 months after entry into force] and be approved within six months.	3.  The use of revenues in accordance with paragraph 2 shall be subject to a methodology proposed by the Agency and approved by the Commission. The Agency's proposal shall be submitted to the Commission by [OP: 12 months after entry into force] and be approved within six months.
The Agency may, at its own initiative or upon a request from the Commission update the methodology and the Commission shall approve the updated methodology not later than six months from its submission.	The Agency may, at its own initiative or upon a request from the Commission update the methodology and the Commission shall approve the updated methodology not later than six months from its submission.
Before submission to the Commission, the Agency shall consult on the methodology pursuant to Article 15 [recast of Regulation (EC) No 713/2009 as proposed by COM(2016) 863/2].	Before submission to the Commission, the Agency shall consult on the methodology pursuant to Article 15 [recast of Regulation (EC) No 713/2009 as proposed by COM(2016) 863/2].
The methodology shall detail as a minimum the conditions under which the revenues can be used for points (a) and (b) of paragraph 2 and the conditions under which, and for how long, they may be placed on a separate internal account line for future use on those purposes.	The methodology shall detail as a minimum the conditions under which the revenues can be used for paragraph 2 and the conditions under which, and for how long, they may be placed on a separate internal account line for future use on those purposes.
Amendment    87 Proposal for a regulation Article 17 – paragraph 4
Text proposed by the Commission	Amendment
4.  Transmission system operators shall clearly establish beforehand how any congestion income will be used, and report on the actual use of that income. On an annual basis, and by 31 July each year, the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12-month period ending on 30 June of the same year and how that revenue was used, including the specific projects the income has been used for or the amount placed on a separate account line, together with verification that that use complies with this Regulation and the methodology developed pursuant to paragraph 3.	4.  Transmission system operators shall clearly establish beforehand how any congestion income will be used, and report on the actual use of that income. On an annual basis, and by 31 July each year, the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12-month period ending on 30 June of the same year and how that revenue was used, including the specific projects the income has been used for the amount placed on a separate account line, or the amount that has been used when calculating network tariffs, together with verification that that use complies with this Regulation. Where some of the congestion revenues are used when calculating network tariffs, the report may set out the fulfilment by the transmission system operator of the commitment and balance sheet criteria pursuant to paragraph 2.
Amendment    88 Proposal for a regulation Chapter 4 – title
Text proposed by the Commission	Amendment
Resource adequacy	Resource adequacy and capacity mechanisms
Amendment    89 Proposal for a regulation Article 18 – paragraph 1
Text proposed by the Commission	Amendment
1.  Member States shall monitor resource adequacy within their territory based on the European resource adequacy assessment pursuant to Article 19.	1.  Member States shall monitor resource adequacy within their territory based on the European resource adequacy assessment pursuant to Article 19 and shall publish a report on the results of the monitoring.
Amendment    90 Proposal for a regulation Article 18 – paragraph 2
Text proposed by the Commission	Amendment
2.  Where the European resource adequacy assessment identifies a resource adequacy concern Member States shall identify any regulatory distortions that caused or contributed to the emergence of the concern.	2.  Where the European resource adequacy assessment identifies a resource adequacy concern Member States shall identify any regulatory distortions and/or market failures that caused or contributed to the emergence of the concern.
Amendment    91 Proposal for a regulation Article 18 – paragraph 3
Text proposed by the Commission	Amendment
3.  Member States shall publish a timeline for adopting measures to eliminate any identified regulatory distortions. When addressing resource adequacy concerns Member States shall in particular consider removing regulatory distortions, enabling scarcity pricing, developing interconnection, energy storage, demand side measures and energy efficiency.	3.  A Member State with identified adequacy concerns shall publish an implementation plan with a timeline for adopting measures to eliminate any identified regulatory distortions and/or market failures. When addressing resource adequacy concerns, the Member States shall build on the principles set out in Article 3 and in particular:
	(a) remove regulatory distortions;
	(b) remove price caps;
	(c) introduce an administrative shortage pricing for balancing energy;
	(d) increase interconnection and internal grid capacity;
	(e) enable self-generation, energy storage, demand side measures and energy efficiency by removing regulatory obstacles;
	(f) ensure cost-efficient and market-based procurement of balancing and ancillary services;
	(g) remove regulated prices in accordance with Article 5 of Directive (EU) ... [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2] .
Amendment    92 Proposal for a regulation Article 18 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3 a.  The Member States shall submit the implementation plan to the Commission for review.
Amendment    93 Proposal for a regulation Article 18 – paragraph 3 b (new)
Text proposed by the Commission	Amendment
	3 b.  The Commission may decide, within two months of receipt of the implementation plan, whether the measures are sufficient to eliminate the regulatory distortions and/or market failures and may require the Member State to amend the implementation plan accordingly.
Amendment    94 Proposal for a regulation Article 18 – paragraph 3 c (new)
Text proposed by the Commission	Amendment
	3 c.  The Member State shall monitor the application of the implementation plan and shall publish the results in an annual report.
Amendment    95 Proposal for a regulation Article 18 – paragraph 3 d (new)
Text proposed by the Commission	Amendment
	3 d.  The Member State shall submit a report relating to their monitoring of the application of the implementation plan to the Agency for an opinion.
Amendment    96 Proposal for a regulation Article 18 – paragraph 3 e (new)
Text proposed by the Commission	Amendment
	3 e.  The Agency shall submit its opinion under paragraph 3d to the Commission. The Commission shall decide whether the reforms have been sufficiently implemented.
Amendment    97 Proposal for a regulation Article 18 a (new)
Text proposed by the Commission	Amendment
	Article 18 a
	General principles for capacity mechanisms
	1.  To address residual concerns that cannot be eliminated by the measures pursuant to Article 18(3), Member States may, as a last resort and subject this Article and to Union State aid rules, introduce capacity mechanisms
	2.  Before introducing capacity mechanisms under paragraph, as referred to in paragraph 1, Member States shall conduct a comprehensive study of their possible effects on the neighbouring Member States by consulting, at least, its electrically connected neighbouring Member States and the stakeholders of those Member States.
	3.  Member States shall assess whether a capacity mechanism in the form of strategic reserve can address the adequacy concerns. Where this is not the case, Member States may implement a different type of capacity mechanism. The parameters determining the amount of capacity procured in the capacity mechanism shall be approved by the national regulatory authority.
	4.  Member States shall not introduce capacity mechanisms where one or both of the following applies: (a) the European resource adequacy assessment has not identified a resource adequacy concern; (b) the detailed implementation plan as referred to in Article 18(3) has not received a positive decision by the Commission as referred to in Article 18(3b).
	5.  Where a Member State already applies a capacity mechanism, it shall review that mechanism and shall provide that no new contracts are concluded under that mechanism where one or both of the following applies:
	(a) the European resource adequacy assessment has not identified a resource adequacy concern;
	(b) the detailed implementation plan as referred to in Article 18(3) has not received a positive decision by the Commission as referred to in Article 18(3b).
	6.  Capacity mechanisms shall be temporary. They shall be approved by the Commission for no longer than five years. They shall be phased out or the amount of the committed capacities shall be reduced based on the implementation plan pursuant to Article 18(3). Member States shall continue the application of the implementation plan after the introduction of the capacity mechanism.
	7.  Generation capacity which has started commercial production after [OP: date of entry into force of this Regulation] shall be eligible to participate in a capacity mechanism only if its emissions are below 550 gr CO2/kWh. With the exception of strategic reserves generation capacity emitting 550 gr CO2/kWh or more shall not be committed in capacity mechanisms after [OP: 5 years after the entry into force of this Regulation].
Amendment    98 Proposal for a regulation Article 19 – paragraph 1
Text proposed by the Commission	Amendment
1.  The European resource adequacy assessment shall cover the overall adequacy of the electricity system to supply current and projected demands for electricity for a ten-year period from the date of that assessment, in a yearly resolution.	1.  The European resource adequacy assessment shall determine resource adequacy concerns by assessing the overall adequacy of the electricity system to supply current and projected demands for electricity in the Union, within the relevant Member States in the region, for each Member State and down to each bidding zone where relevant, for a ten-year period from the date of that assessment, in a yearly resolution.
Amendment    99 Proposal for a regulation Article 19 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a.  The European resource assessment shall be conducted by the ENTSO for Electricity.
Amendment    100 Proposal for a regulation Article 19 – paragraph 3
Text proposed by the Commission	Amendment
3.  Transmission system operators shall provide the ENTSO for Electricity with the data it needs to carry out, every year, the European resource adequacy assessment. The ENTSO for Electricity shall carry out the assessment every year.	3.  Transmission system operators shall provide the ENTSO for Electricity with the necessary data. The transmission system operators shall have the right to request relevant data not containing commercially sensitive information, and not already collected by the relevant DSO, from generators and other market participants.
Amendment    101 Proposal for a regulation Article 19 – paragraph 4 – introductory part
Text proposed by the Commission	Amendment
4.  The European resource adequacy assessment shall be based on a methodology which shall ensure that the assessment:	4.  The European resource adequacy assessment shall be based on a transparent methodology which shall ensure that the assessment:
Amendment    102 Proposal for a regulation Article 19 – paragraph 4 – point b
Text proposed by the Commission	Amendment
(b)  is based on appropriate scenarios of projected demand and supply including an economic assessment of the likelihood of retirement, new-build of generation assets and measures to reach energy efficiency targets and appropriate sensitivities on wholesale prices and carbon price developments;	(b)  is based on appropriate scenarios of projected demand and supply including an economic assessment of the likelihood of retirement, mothballing, new-build of generation assets and measures to reach energy efficiency and electricity interconnection targets and appropriate sensitivities on wholesale prices and carbon price developments;
Amendment    103 Proposal for a regulation Article 19 – paragraph 4 – point b a (new)
Text proposed by the Commission	Amendment
	(ba)  contains a worst case scenario which reflects the exceptionality and different likeliness of the rare events a strategic reserve is designed to address; the generation adequacy gap in such a worst case scenario shall only justify a strategic reserve with a size of not more than 5% of the peak load of the respective Member State;
Amendment    104 Proposal for a regulation Article 19 – paragraph 4 – point c
Text proposed by the Commission	Amendment
(c)  appropriately takes account of the contribution of all resources including existing and future generation, energy storage, demand response, and import and export possibilities and their contribution to flexible system operation;	(c)  appropriately takes account of the contribution of all resources including existing and future generation, energy storage, sectoral integration, demand response, and import and export possibilities and their contribution to flexible system operation;
Amendment    105 Proposal for a regulation Article 19 – paragraph 4 – point i a (new)
Text proposed by the Commission	Amendment
	(ia)  respects real network development.
Amendment    106 Proposal for a regulation Article 19 – paragraph 5 – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	The methodology shall be based on a transparent, objective and verifiable criteria.
Amendment    107 Proposal for a regulation Article 19 – paragraph 6
Text proposed by the Commission	Amendment
6.  The proposals under paragraphs 2 and 5 and the results of the European resource adequacy assessment under paragraph 3 shall be subject to prior consultation and approval by the Agency under the procedure set out in Article 22.	6.  The proposals under paragraphs 2 and 5 of this Article, the scenarios and assumptions on which they are based, and the results of the European resource adequacy assessment under paragraph 1a of this Article shall be subject to prior consultation and approval by the Agency under the procedure set out in Article 22.
Amendment    108 Proposal for a regulation Article 20 – paragraph 1
Text proposed by the Commission	Amendment
1.  When applying capacity mechanisms Member States shall have a reliability standard in place indicating their desired level of security of supply in a transparent manner.	1.  When applying capacity mechanisms Member States shall have a reliability standard in place. A reliability standard shall indicate the necessary level of security of supply of the Member State in a transparent manner. In the case of cross-border bidding zones, such reliability standards shall be established jointly by the relevant authorities.
Amendment    109 Proposal for a regulation Article 20 – paragraph 4
Text proposed by the Commission	Amendment
4.  The parameters determining the amount of capacity procured in the capacity mechanism shall be approved by the national regulatory authority.	deleted
Amendment    110 Proposal for a regulation Article 21 – paragraph 5
Text proposed by the Commission	Amendment
5.  Capacity providers shall be able to participate in more than one mechanism for the same delivery period. They shall be subject to non-availability payments in case of non-availability, and subject to two or more non-availability payments where there is concurrent scarcity in two or more bidding zones where the capacity provider is contracted.	5.  Capacity providers shall be able to participate in more than one mechanism for the same delivery period. They shall be subject to non-availability payments in case of non-availability, and subject to two or more non-availability payments where there is concurrent scarcity in two or more bidding zones where the capacity provider is contracted. Capacity providers shall be able to participate with no more than their available maximum capacity.
Amendment    111 Proposal for a regulation Article 21 – paragraph 6
Text proposed by the Commission	Amendment
6.  Regional operational centres established pursuant to Article 32 shall annually calculate the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located. A calculation is required for each bidding zone border.	6.  Regional coordination centres established pursuant to Article 32 shall annually calculate the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located. A calculation is required for each bidding zone border.
Amendment    112 Proposal for a regulation Article 23 – paragraph 1
Text proposed by the Commission	Amendment
1.  To address residual concerns that cannot be eliminated by the measures pursuant to Article 18(3), Member States may introduce capacity mechanisms, subject to the provisions of this Article and to the Union State aid rules.	1.  Any capacity mechanism shall:
	(a) not create undue market distortions and not limit cross-border trade;
	(b) not go beyond what is necessary to address the adequacy concern;
	(c) select capacity providers by means of a transparent, non-discriminatory and market-based process;
	(d) be technology neutral;
	(e) provide incentives for capacity providers to be available in times of expected system stress;
	(f) ensure that the remuneration is determined through a market-based process;
	(g) set out the required technical conditions for the participation of capacity providers in advance of the selection process;
	(h) be open to participation of all resources, including storage and demand side management that are capable of providing the required technical performance;
	(i) apply appropriate penalties to capacity providers when not available in the event of system stress;
	(j) ensure that capacity contracts for existing installations are rewarded for a maximum length of 1 year.
Amendment    113 Proposal for a regulation Article 23 – paragraph 2
Text proposed by the Commission	Amendment
2.  Where a Member State wishes to implement a capacity mechanism, it shall consult on the proposed mechanism at least with its electrically connected neighbouring Member States.	2.  Capacity mechanisms in the form of strategic reserves shall:
	(a) be held outside the market;
	(b) be dispatched only where day-ahead and intraday markets have failed to clear and transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply;
	(c) ensure that during periods where strategic reserves were dispatched, imbalances are settled at the technical price limit applied by the market operators pursuant to Article 9 or at the value of lost load, whichever the higher.
	(d) be limited to maximum emissions of 200kg/CO2/kW for the electricity production per year The electricity generated, or the load reduction achieved by resources in the strategic reserve shall not be sold through wholesale electricity markets.
Amendment    114 Proposal for a regulation Article 23 – paragraph 3
Text proposed by the Commission	Amendment
3.  Capacity mechanisms shall not create unnecessary market distortions and not limit cross-border trade. The amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern.	3.  In addition to the requirements laid down in paragraph 1, capacity mechanisms other than strategic reserves shall:
	(a) be constructed so as to ensure that the price paid for availability automatically tends to zero when the level of capacity supplied is expected to be adequate to meet the level of capacity demanded;
	(b) remunerate the participating resources merely for their availability and ensure that the remuneration does not affect decisions of the capacity provider whether or not to generate;
	(c) ensure that capacity obligations are transferable between eligible capacity providers.
Amendment    115 Proposal for a regulation Article 23 – paragraph 4
Text proposed by the Commission	Amendment
4.  Generation capacity for which a final investment decision has been made after [OP: entry into force] shall only be eligible to participate in a capacity mechanism if its emissions are below 550 gr CO2/kWh. Generation capacity emitting 550 gr CO2/kWh or more shall not be committed in capacity mechanisms 5 years after the entry into force of this Regulation.	deleted
Amendment    116 Proposal for a regulation Article 23 – paragraph 5
Text proposed by the Commission	Amendment
5.  Where the European resource adequacy assessment has not identified a resource adequacy concern, Member States shall not apply capacity mechanisms.	deleted
Amendment    117 Proposal for a regulation Article 24 – paragraph 1
Text proposed by the Commission	Amendment
Member States applying capacity mechanisms on [OP: entry into force of this Regulation] shall adapt their mechanisms to comply with Articles 18, 21 and 23 of this Regulation.	Member States applying capacity mechanisms on [OP: entry into force of this Regulation] shall adapt their mechanisms to comply with Articles 18, 18a, 21 and 23 of this Regulation.
Amendment    118 Proposal for a regulation Article 27 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c)  prepare and adopt proposals related to the European resource adequacy assessment pursuant to Article 19(2), (3) and (5) and for the technical specifications for cross-border participation in capacity mechanisms pursuant to Article 21(10);	(c)  prepare and adopt proposals related to the European resource adequacy assessment pursuant to Article 19(1a) and for the technical specifications for cross-border participation in capacity mechanisms pursuant to Article 21(10);
Amendment    119 Proposal for a regulation Article 27 – paragraph 1 – point h a (new)
Text proposed by the Commission	Amendment
	(h a)  standardise, in cooperation with the EU DSO entity, relevant data formats and protocols to facilitate cross-border exchange of data;
Amendment    120 Proposal for a regulation Article 27 – paragraph 1 – point j a (new)
Text proposed by the Commission	Amendment
	(j a)  promote digitalisation of transmission systems to ensure, inter alia, efficient real time data acquisition and use and smart substations;
Amendment    121 Proposal for a regulation Article 27 – paragraph 1 – point j b (new)
Text proposed by the Commission	Amendment
	(j b)  promote data management, cyber security and data protection in cooperation with relevant authorities and regulated entities;
Amendment    122 Proposal for a regulation Article 27 – paragraph 1 – point j c (new)
Text proposed by the Commission	Amendment
	(j c)  develop demand response in cooperation with DSOs.
Amendment    123 Proposal for a regulation Article 27 – paragraph 2
Text proposed by the Commission	Amendment
2.  The ENTSO for Electricity shall report to the Agency on shortcomings identified regarding the establishment and performance of regional operational centres.	2.  The ENTSO for Electricity shall report to the Agency on shortcomings identified regarding the establishment and performance of regional coordination centres.
Amendment    124 Proposal for a regulation Article 28 – paragraph 1
Text proposed by the Commission	Amendment
1.  While preparing the proposals pursuant to the tasks referred to in Article 27(1), the ENTSO for Electricity shall conduct an extensive consultation process, at an early stage and in an open and transparent manner, involving all relevant stakeholders, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 26 . That consultation shall also involve national regulatory authorities and other national authorities, supply and generation undertakings, system users including customers, distribution system operators, including relevant industry associations, technical bodies and stakeholder platforms. It shall aim at identifying the views and proposals of all relevant parties during the decision-making process.	1.  While preparing the proposals pursuant to the tasks referred to in Article 27(1), the ENTSO for Electricity shall conduct an extensive consultation process, at an early stage and structured in a way to enable accommodating stakeholder comments before final adoption and in an open and transparent manner, involving all relevant stakeholders, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 26 . That consultation shall also involve national regulatory authorities and other national authorities, supply and generation undertakings, system users including customers and their representatives, distribution system operators, including relevant industry associations, technical bodies and stakeholder platforms. It shall aim at identifying the views and proposals of all relevant parties during the decision-making process.
Justification
This Amendment is necessary to enable fulfilling the obligations of paragraph 3 of this Article.
Amendment    125 Proposal for a regulation Article 31 – paragraph 3
Text proposed by the Commission	Amendment
3.  For the purposes of achieving the goals set in paragraphs 1 and 2 of this Article, the geographical area covered by each regional cooperation structure may be defined by the Commission, taking into account existing regional cooperation structures. Each Member State shall be allowed to promote cooperation in more than one geographical area. The Commission is empowered to adopt delegated acts in accordance with Article 63 concerning the geographical area covered by each regional cooperation structure. For that purpose, the Commission shall consult the Agency and the ENTSO for Electricity.	3.  For the purposes of achieving the goals set in paragraphs 1 and 2 of this Article, the geographical area covered by each regional cooperation structure may be defined by the Commission, taking into account existing regional cooperation structures. Each Member State shall be allowed to promote cooperation in more than one geographical area. The Commission is empowered to adopt delegated acts in accordance with Article 63 concerning the geographical area covered by each regional cooperation structure. For that purpose, the Commission shall consult the regulatory authorities, the Agency and the ENTSO for Electricity.
Amendment    126 Proposal for a regulation Article 32 – paragraph 1
Text proposed by the Commission	Amendment
1.  By [OP: twelve months after entry into force], all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter. Regional operational centres shall be established in the territory of one of the Member States of the region where it will operate.	1.  By [OP: twelve months after entry into force], regional coordination centres shall in addition to other tasks that are laid out in Article 34 of this Regulation, replace and cover the functions of regional security coordinators established in accordance with the Regulation...[the Commission Regulation establishing a guideline on Electricity Transmission System Operation] pursuant to the criteria set out in this chapter.
	If a region is not covered by an existing or a planned regional security coordinator, the transmission system operators of that region shall establish a regional coordination centre.
	All transmission system operators shall adhere to a single regional coordination centre.
	All transmission system operators of a system operation region shall submit to the regulatory authorities of the system operation region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter.
	The regulatory authorities of the system operation region shall review and approve the proposal in compliance with the procedures established pursuant to Article 8 of Regulation (EU) ... [recast of Regulation (EC) No 713/2009 as proposed by COM(2016) 863]
	The proposals referred to the forth subparagraph shall include the following information:
	(a) Member State where the regional coordination centre are to be located;
	(b) the organisational, financial and operational arrangements necessary to ensure the efficient, secure and reliable operation of the interconnected transmission system;
	(c) an implementation plan for the entry into operation of the regional coordination centres;
	(d) the statutes and rules of procedure of regional coordination centres;
	(e) a description of cooperative processes in accordance with Article 35;
	(f) a description of the arrangements concerning the liability of regional coordination centres in accordance with Article 44.
Amendment    127 Proposal for a regulation Article 32 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1 a.  Regional coordination centres shall enter into operation by [OP: twelve months after entry into force of this Regulation].
Amendment    128 Proposal for a regulation Article 32 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2 a.  In performing its functions under Union law, the regional coordination centres shall act independently from individual national interests and from the interests of transmission system operators.
Amendment    129 Proposal for a regulation Article 32 – paragraph 3
Text proposed by the Commission	Amendment
3.  Regional operational centres shall complement the role of transmission system operators by performing functions of regional relevance. They shall establish operational arrangements in order to ensure the efficient, secure and reliable operation of the interconnected transmission system.	3.  Regional coordination centres shall complement the role of transmission system operators by performing functions of regional relevance. The transmission system operators shall be responsible for managing electricity flows and ensuring a secure, reliable and efficient electricity system in accordance with Article 40 of the Directive (EU) [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2].
Amendment    130 Proposal for a regulation Article 33 – title
Text proposed by the Commission	Amendment
Geographical scope of regional operational centres	Geographical scope of regional coordination centres
Amendment    131 Proposal for a regulation Article 33 – paragraph 1
Text proposed by the Commission	Amendment
1.  By [OP: six months after entry into force of this Regulation] the ENTSO for Electricity shall submit to the Agency a proposal defining system operation regions covered by regional operational centres, taking into account existing regional security coordinators, on the basis of the following criteria:	1.  By [OP: six months after entry into force of this Regulation] the ENTSO for Electricity shall submit to the Agency a proposal defining system operation regions covered by regional coordination centres, taking into account existing regional security coordinators, on the basis of the following criteria:
Amendment    132 Proposal for a regulation Article 34 – title
Text proposed by the Commission	Amendment
Tasks of regional operational centres	Tasks of regional coordination centres
Amendment    133 Proposal for a regulation Article 34 – paragraph 1
Text proposed by the Commission	Amendment
1.  Each regional operational centre shall perform all the following functions in the system operation region where it is established and regional operational centres shall perform at least the following functions, set out in more detail in Annex I:	1.  Each regional coordination centre shall perform all the following functions in the system operation region where it is established and regional coordination centres shall perform at least the following functions, set out in more detail in Annex I:
(a)  coordinated capacity calculation;	(a)  coordinated capacity calculation in accordance with the methodologies developed pursuant to Articles 21, 26, 29 and 30 of Regulation (EU) 2015/1222;
(b)  coordinated security analysis;	(b)  coordinated security analysis in accordance with the methodologies developed pursuant to Articles 75 and 76 of Commission Regulation (EU) 2017/14851a;
(c)  creation of common system	(c)  creation of common system models in accordance with the methodologies and procedures developed pursuant to Articles 67, 70 and 79 of Commission Regulation (EU) 2017/1485;
(d)  consistency assessment of transmission system operators' defense plans and restoration plans;	(d)  consistency assessment of transmission system operators' defense plans and restoration plans in accordance with the procedure set out in Article 6 of Commission Regulation (EU) 2017/2196b;
(e)  coordination and optimization of regional restoration;	(e)  coordination and optimization of regional restoration;
(f)  post-operation and post-disturbances analysis and reporting;	(f)  post-operation and post-disturbances analysis and reporting;
(g)  regional sizing of reserve capacity;	(g)  regional sizing of reserve capacity;
(h)  facilitate the regional procurement of balancing capacity;	(h)  calculation of the regional balancing capacity;
(i)  regional week ahead to intraday system adequacy forecasts and preparation of risk reducing actions;	(i)  regional week ahead to intraday system adequacy forecasts and preparation of risk reducing actions in accordance with the methodology set out in Article 8 of Regulation (EU) ... [Regulation on risk preparedness as proposed by COM(2016) 862] and the procedures set out in Article 81 of Commission Regulation (EU) 2017/1485[The Commission Regulation establishing a Guideline on electricity transmission system operation];
(j)  outage planning coordination;	(j)  outage planning coordination in accordance with the procedures set out in Article 80 of Commission Regulation (EU) 2017/1485 ;
(k)  optimisation of compensation mechanisms between transmission system operators;	(k)  optimisation of compensation mechanisms between transmission system operators;
(l)  training and certification;	(l)  training and certification;
(m)  identification of regional crisis scenarios according to Article 6(1) of [Regulation on risk preparedness as proposed by COM(2016) 862] if this task is delegated by ENTSO for Electricity;
(n)  preparation and carrying out of yearly crisis simulations in cooperation with competent authorities according to Art 12(3) of [Regulation on risk preparedness as proposed by COM(2016) 862];	(n)  preparation and carrying out of yearly crisis simulations in cooperation with competent authorities according to Art 12(3) of [Regulation on risk preparedness as proposed by COM(2016) 862];
(o)  tasks related to the identification of regional crisis scenarios if and to the extent they are delegated to the regional operational centres pursuant to Article 6(1) of [Regulation on risk preparedness as proposed by COM(2016) 862];	(o)  tasks related to the identification of regional crisis scenarios if and to the extent they are delegated to the regional coordination centres pursuant to Article 6(1) of [Regulation on risk preparedness as proposed by COM(2016) 862];
(p)  tasks related to the seasonal adequacy outlooks if and to the extent they are delegated to the regional operational centres pursuant to Article 9(2) of [Regulation on risk preparedness as proposed by COM(2016) 862];	(p)  tasks related to the seasonal adequacy outlooks if and to the extent they are delegated to the regional coordination centres pursuant to Article 9(2) of [Regulation on risk preparedness as proposed by COM(2016) 862];
(q)  calculate the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms pursuant to Article 21 (6).	(q)  calculate the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms pursuant to Article 21 (6);
	(q a)  tasks related to support transmission system operators in the identification of needs for new capacity, for upgrade of existing capacity or their alternatives, to be submitted to the regional groups established pursuant to Regulation (EU) 347/2013 and included in the ten-year network development plan referred to in Article 51 of the Directive (EU) ... [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2].
	_______________
	1a Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (OJ L 220, 25.8.2017, p. 1).
	1b Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration (OJ L 312, 28.11.2017, p. 54)
Amendment    134 Proposal for a regulation Article 34 – paragraph 2
Text proposed by the Commission	Amendment
2.  The Commission may add other functions to the regional operational centres, not involving decision making power, pursuant to Chapter VII of this Regulation.	2.  The Commission may add other functions to the regional coordination centres, not involving decision making power, pursuant to Chapter VII of this Regulation.
Amendment    135 Proposal for a regulation Article 34 – paragraph 3
Text proposed by the Commission	Amendment
3.  Transmission system operators shall provide their regional operational centre with the information necessary to carry out its functions.	3.  Transmission system operators shall provide their regional coordination centre with the information necessary to carry out its functions.
Amendment    136 Proposal for a regulation Article 34 – paragraph 4
Text proposed by the Commission	Amendment
4.  Regional operational centres shall provide transmission system operators of the system operation region with all the information necessary to implement the decisions and recommendations proposed by the regional operational centres.	4.  Regional coordination centres shall provide transmission system operators of the system operation region with all the information necessary to ensure system stability and security of supply.
	For the functions set out in this Article and not already covered by the relevant guidelines, the ENTSO for Electricity shall develop a proposal in accordance with the procedure set out in Article 22. Regional coordination centres shall execute those functions on the basis of a proposal that has been approved by the Agency.
Amendment    137 Proposal for a regulation Article 35
Text proposed by the Commission	Amendment
Article 35	Article 35
Cooperation within regional operational centres	Cooperation within and among regional coordination centres
1.  The day-to-day operation of regional operational centres shall be managed through cooperative decision-making. The cooperative-decision making process shall be based on:	The day-to-day operation of regional coordination centres shall be managed through cooperative decision making amongst the transmission system operators of the region, including arrangements for coordination between regional coordination centres where relevant. The cooperative process shall be based on:
(a)  working arrangements to address planning and operational aspects related to the functions, in accordance with Article 36;	(a)  working arrangements to address planning and operational aspects related to the functions, in accordance with Article 36;
(b)  a procedure for consulting the transmission system operators of the system operation region in the exercise of its operational duties and tasks, in accordance with Article 37;	(b)  a procedure for consulting, in an efficient and inclusive manner, the transmission system operators and relevant stakeholders of the system operation region in accordance with Article 37;
(c)  a procedure for the adoption of decisions and recommendations in accordance with Article 38;	(c)  a procedure for the adoption and revision of decisions and recommendations in accordance with Article 38 that ensures equitable treatment between members of the regional operational centre;
(d)  a procedure for the revision of decisions and recommendations adopted by regional operational centres in accordance with Article 39.
Amendment    138 Proposal for a regulation Article 36 – paragraph 1
Text proposed by the Commission	Amendment
1.  Regional operational centres shall develop working arrangements to address planning and operational aspects related to the functions to be performed, taking into account, in particular, the specificities and requirements of those functions as specified in Annex I.	1.  Regional coordination centres shall develop working arrangements that are efficient, inclusive, transparent and facilitate consensus, to address planning and operational aspects related to the functions to be performed, taking into account, in particular, the specificities and requirements of those functions as specified in Annex I.
Amendment    139 Proposal for a regulation Article 36 – paragraph 2
Text proposed by the Commission	Amendment
2.  Regional operational centres shall ensure that the working arrangements contain rules for the notification of parties concerned.	2.  Regional coordination centres shall ensure that the working arrangements contain rules for the notification of parties concerned.
Amendment    140 Proposal for a regulation Article 37 – paragraph 1
Text proposed by the Commission	Amendment
Regional operational centres shall develop a procedure to organise, in the exercise of their daily operational duties and tasks, the appropriate and regular consultation of transmission system operators and of relevant stakeholders. In order to ensure that regulatory issues can be addressed, regulatory authorities shall be involved when required.	Regional coordination centres shall develop a procedure to organise, in the exercise of their daily duties and tasks, the appropriate and regular consultation of transmission system operators and of relevant stakeholders. In order to ensure that regulatory issues can be addressed, regulatory authorities shall be involved when required.
Amendment    141 Proposal for a regulation Article 37 a (new)
Text proposed by the Commission	Amendment
	Article 37a
	Transparency
	1.  Regional coordination centres shall organise a process for stakeholder involvement and organise regular meetings with stakeholders to discuss matters relating to the efficient, secure and reliable operation of the interconnected system as well as to identify shortcomings and propose improvements;
	2.  ENTSO for Electricity and regional operational centres shall operate in full transparency towards stakeholders and the general public. All relevant documentation shall be published on the website of the respective regional coordination centre. This paragraph shall apply to the proposals, justifications and decisions adopted pursuant to Articles 32 and 33, Article 35(a) and Article 38 of this Regulation.
Amendment    142 Proposal for a regulation Article 38 – title
Text proposed by the Commission	Amendment
Adoption of decisions and recommendations	Adoption and revisions of decisions and recommendations
Amendment    143 Proposal for a regulation Article 38 – paragraph 1
Text proposed by the Commission	Amendment
1.  Regional operational centres shall develop a procedure for the adoption of decisions and recommendations.	1.  The transmission system operators of each regional coordination centre shall develop procedures for the adoption and revision of decisions and recommendations that ensures geographically balanced representation and equitable treatment of members of the regional coordination centre.
Amendment    144 Proposal for a regulation Article 38 – paragraph 2
Text proposed by the Commission	Amendment
2.  Regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points (a), (b), (g) and (q) of Article 34(1). Transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected.	2.  Regional coordination centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in (a) and (b) of Article 34(1). Transmission system operators shall implement the binding decisions issued by the regional coordination centres except in cases where the implementation of the decision would result in a violation of operational security limits defined by each transmission system operator pursuant to Article 25 of Commission Regulation (EU) 2017/1485.
Amendment    145 Proposal for a regulation Article 38 – paragraph 3
Text proposed by the Commission	Amendment
3.  Regional operational centres shall adopt recommendations addressed to the transmission system operators for the functions referred to in points (c) to (f) and (h) to (p) of Article 34(1).	3.  Regional coordination centres shall adopt recommendations addressed to the transmission system operators for the functions listed in Article 34(1) which are not referred to in paragraph 2 of this Article.
Amendment    146 Proposal for a regulation Article 38 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3 a.  Where a transmission system operator decides to deviate from the decision or recommendation issued by the regional coordination centre, it shall submit a detailed explanation to the regional coordination centre and to other transmission system operators of the system operation region without delay.
Amendment    147 Proposal for a regulation Article 38 – paragraph 3 b (new)
Text proposed by the Commission	Amendment
	3 b.  The revision shall be triggered at the request of one or more of the transmission system operators of the system operation region. Following the revision of the decision or recommendation, regional operational centres shall confirm or modify the measure.
Amendment    148 Proposal for a regulation Article 38 – paragraph 3 c (new)
Text proposed by the Commission	Amendment
	3 c.  Where the measure subject to revision is a binding decision in accordance with Article 38(2) of this Regulation, the request for revision shall not suspend the decision except in cases where the implementation of the decision would result in a violation of operational security limits defined by each transmission system operator pursuant to Article 25 of the System Operation guidelines.
Amendment    149 Proposal for a regulation Article 38 – paragraph 4
Text proposed by the Commission	Amendment
4.  The regulatory authorities of a system operation region may jointly decide to grant binding decision-making powers to the regional operational centre for one or more of the functions provided for in points (c) to (f) and (h) to (l) of Article 34(1).	4.  The regulatory authorities of a system operation region may jointly decide to grant binding decision-making powers to the regional coordination centre for one or more of the functions listed in Article 34(1) and which are not referred to in paragraph 2 of this Article.
Amendment    150 Proposal for a regulation Article 39
Text proposed by the Commission	Amendment
Article 39	deleted
Revision of decisions and recommendations
1.  Regional operational centres shall develop a procedure for the revision of decisions and recommendations.
2.  The procedure shall be triggered at the request of one or more of the transmission system operators of the system operation region. Following the revision of the decision or recommendation, regional operational centres shall confirm or modify the measure.
3.  Where the measure subject to revision is a binding decision in accordance with Article 38(2), the request for revision shall not suspend the decision except in cases when the safety of the system will be negatively affected.
4.  Where the measure subject to revision is a recommendation in accordance with Article 38(3) and following its revision a transmission system operator decides to deviate from the recommendation, the transmission system operator shall submit a detailed justification to the regional operational centre and to the other transmission system operators of the system operation region.
Amendment    151 Proposal for a regulation Article 40 – title
Text proposed by the Commission	Amendment
Management board of regional operational centres	Management board of regional coordination centres
Amendment    152 Proposal for a regulation Article 40 – paragraph 1
Text proposed by the Commission	Amendment
1.  In order to adopt measures related to their governance and to monitor their performance, the regional operational centres shall establish a management board.	1.  In order to adopt measures related to their governance and to monitor their performance, the regional coordination centres shall establish a management board.
Amendment    153 Proposal for a regulation Article 40 – paragraph 2
Text proposed by the Commission	Amendment
2.  The management board shall be composed of members representing the transmission system operators and of observers representing the regulatory authorities of the system operation region. The representatives of the regulatory authorities shall have no voting rights.	2.  The management board shall be composed of members representing all the transmission system operators of the system operation region. The composition of the management board shall be geographically balanced.
Amendment    154 Proposal for a regulation Article 40 – paragraph 3
Text proposed by the Commission	Amendment
3.  The management board shall be responsible for:	3.  The management board shall be responsible for:
(a)  drafting and endorsing the statutes and rules of procedure of the regional operational centre;	(a)  drafting and endorsing the statutes and rules of procedure of the regional coordination centre;
(b)  deciding upon and implementing the organisational structure;	(b)  implementing the organisational structure;
(c)  preparing and endorsing the annual budget;	(c)  preparing and endorsing the annual budget;
(d)  developing and endorsing the cooperative decision-making processes in accordance with Article 35.	(d)  developing and endorsing the cooperative decision-making processes in accordance with Article 35.
Amendment    155 Proposal for a regulation Article 40 – paragraph 4
Text proposed by the Commission	Amendment
4.  The competences of the management board shall exclude those that are related to the day-to-day activities of regional operational centres and the performance of its functions.	4.  The competences of the management board shall not include decisions related to the execution of the functions of regional coordination centres.
Amendment    156 Proposal for a regulation Article 41 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1.  Regional operational centres shall set up and manage their organisation according to a structure that supports the safety of their functions. Their organisational structure shall specify:	1.  The transmission system operators of a system operation region shall set up the organisational structure of regional coordination centres. Their organisational structure shall specify:
Amendment    157 Proposal for a regulation Article 41 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a)  the authority, duties and responsibilities of the management personnel;	(a)  the authority, duties and responsibilities of the personnel;
Amendment    158 Proposal for a regulation Article 41 – paragraph 2
Text proposed by the Commission	Amendment
2.  Regional operational centres may set up regional desks to address local specificities or back-up operational centres for the efficient and reliable exercise of their functions.	2.  Regional coordination centres may set up regional desks to address local specificities or back-up coordination centres for the efficient and reliable exercise of their functions where proven to be strictly necessary.
Amendment    159 Proposal for a regulation Article 42 – paragraph 1
Text proposed by the Commission	Amendment
Regional operational centres shall be equipped with all the human, technical, physical and financial resources necessary for fulfilling their obligations under this Regulation and carrying out their functions.	Regional coordination centres shall be equipped with all the human, technical, physical and financial resources necessary for fulfilling their obligations under this Regulation and carrying out their functions independently and impartially. The human, technical, physical and financial resources for regional coordination centres shall not go beyond what is strictly necessary for the fulfilment of its tasks while geographically balanced representation and equitable treatment of members of regional coordination centre shall be ensured.
Amendment    160 Proposal for a regulation Article 43 – paragraph 1
Text proposed by the Commission	Amendment
1.  Regional operational centres shall establish a process for the continuous monitoring of at least:	1.  Regional coordination centres shall establish a process for the continuous monitoring of at least:
(a)  their operational performance;	(a)  their operational performance;
(b)  the decisions and recommendations issued and the outcome achieved;	(b)  the decisions and recommendations issued in particular on those where the transmission system operators have deviated and the outcome achieved;
(c)  the effectiveness and efficiency of each of the functions for which they are responsible.	(c)  the effectiveness and efficiency of each of the functions for which they are responsible.
Amendment    161 Proposal for a regulation Article 43 – paragraph 2
Text proposed by the Commission	Amendment
2.  Regional operational centres shall submit to the Agency and to the regulatory authorities of the system operation region the data resulting from their continuous monitoring at least annually.	deleted
Amendment    162 Proposal for a regulation Article 43 – paragraph 3
Text proposed by the Commission	Amendment
3.  Regional operational centres shall establish their costs in a transparent manner and report them to the Agency and to the regulatory authorities of the system operation region.	3.  Regional coordination centres shall establish their costs in a transparent manner and report them to the Agency and to the regulatory authorities of the system operation region.
Amendment    163 Proposal for a regulation Article 43 – paragraph 4
Text proposed by the Commission	Amendment
4.  Regional operational centres shall submit an annual report concerning their performance to ENTSO for Electricity, the Agency, the regulatory authorities of the system operation region and the Electricity Coordination Group established pursuant to Article 1 of Commission Decision 2012/C 353/0237 .	4.  Regional coordination centres shall submit an annual report containing relevant monitoring data pursuant to paragraph 1 of this Article and information on their performance to ENTSO for Electricity, the Agency, the regulatory authorities of the system operation region and the Electricity Coordination Group established pursuant to Article 1 of Commission Decision 2012/C 353/02.
__________________	__________________
37 Commission Decision of 15 November 2012 setting up the Electricity Coordination Group (OJ C 353, 17.11.2012, p.2).	37 Commission Decision of 15 November 2012 setting up the Electricity Coordination Group (OJ C 353, 17.11.2012, p.2).
Amendment    164 Proposal for a regulation Article 43 – paragraph 5
Text proposed by the Commission	Amendment
5.  Regional operational centres shall report shortcomings identified in the monitoring process under paragraph 1 to ENTSO for electricity, the regulatory authorities of the system operation region, the Agency and the competent authorities of Member States responsible for the prevention and management of crisis situations.	5.  Regional coordination centres shall report shortcomings identified in the monitoring process under paragraph 1 to ENTSO for electricity, the regulatory authorities of the system operation region, the Agency and the competent authorities of Member States responsible for the prevention and management of crisis situations.
Amendment    165 Proposal for a regulation Article 43 – paragraph 5 a (new)
Text proposed by the Commission	Amendment
	5 a.  Without prejudice to the principle of confidentiality and the need to preserve security and commercially sensitive information regional coordination centres shall make public the reports referred to in paragraphs 4 and 5.
Amendment    166 Proposal for a regulation Article 44 – paragraph 1
Text proposed by the Commission	Amendment
Regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks, in particular, where they adopt decisions binding on transmission system operators. The method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available.	The proposal for the establishment of regional coordination centres in accordance with Article 32, shall include arrangements to cover liability related to the execution of the tasks of the regional coordination centre. The method employed to provide the cover shall take into account the legal status of the regional coordination centre and the level of commercial insurance cover available.
Amendment    167 Proposal for a regulation Article 47 – paragraph 4
Text proposed by the Commission	Amendment
4.  Transmission system operators shall publish relevant data on aggregated forecast and actual demand, on availability and actual use of generation and load assets, on availability and use of the networks and interconnections, and on balancing power and reserve capacity. For availability and actual use of small generation and load units, aggregated estimate data may be used.	4.  Transmission system operators shall publish relevant data on aggregated forecast and actual demand, on availability and actual use of generation and load assets, on availability and use of the networks and interconnections, on balancing power and reserve capacity and on the availability of flexibility. For availability and actual use of small generation and load units, aggregated estimate data may be used.
Justification
This amendment is intrinsically linked to other amendments tabled to provisions which have been modified by the Commission
Amendment    168 Proposal for a regulation Article 49 – paragraph 1
Text proposed by the Commission	Amendment
Distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of Article 35 [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2], shall cooperate at Union level through a European Entity for Distribution system operators ("EU DSO entity"), in order to promote the completion and functioning of the internal market in electricity, and to promote optimal management and a coordinated operation of distribution and transmission systems. Distribution system operators who wish to participate in the EU DSO entity shall become registered members of the entity.	Distribution system operators shall cooperate at Union level through a European Entity for Distribution system operators ("EU DSO entity"), in order to promote the completion and functioning of the internal market in electricity, and to promote optimal management and a coordinated operation of distribution and transmission systems. Distribution system operators who wish to participate in the EU DSO entity shall have the right to become registered members of the entity.
	Registered members may participate in the EU DSO entity directly or be represented by the national association designated by the Member State or by an Union level association.
	In performing its functions under Union law, the EU DSO entity shall act independently from individual national interests or the national interests of distribution system operators.
Amendment    169 Proposal for a regulation Article 50 – paragraph 1
Text proposed by the Commission	Amendment
1.  By [OP: twelve months after entry into force], the distribution system operators, with the administrative support of the Agency, shall submit to the Commission and to the Agency the draft statutes, a list of registered members, the draft rules of procedure, including the rules of procedures on the consultation with ENTSO for Electricity and other stakeholders and the financing rules, of the EU DSO entity to be established.	1.  By [OP: twelve months after entry into force], the distribution system operators, with the administrative support of the Agency, shall submit to the Commission and to the Agency the draft statutes, a list of participating distribution system operators and entities designated to represent distribution system operators, the draft rules of procedure, including the rules of procedures on the consultation with ENTSO for Electricity and other stakeholders, the decision-making procedure and the financing rules, of the EU DSO entity to be established.
	The draft rules of procedure of the EU DSO entity shall ensure balanced representation of all participating DSOs regardless of their size, including in the decision-making procedure.
Amendment    170 Proposal for a regulation Article 50 – paragraph 2
Text proposed by the Commission	Amendment
2.  Within two months of receipt, the Agency, after formally consulting the organisations representing all stakeholders, in particular distribution system users, shall provide an opinion to the Commission on the draft statutes, the list of members and the draft rules of procedure.	2.  Within two months of receipt, the Agency, after formally consulting the organisations representing all stakeholders, in particular distribution system users and consumer protection organisations, shall provide an opinion to the Commission on the draft statutes, the list of members and the draft rules of procedure, taking into account in particular the rules related to the independence of the EU DSO, to the prevention of conflicts of interests, and to the necessity to ensure geographically balanced representation and equitable treatment of its Members.
Amendment    171 Proposal for a regulation Article 50 – paragraph 3
Text proposed by the Commission	Amendment
3.  The Commission shall deliver an opinion on the draft statutes, the list of members and the draft rules of procedure taking into account the opinion of the Agency provided for in paragraph 2, within three months of receipt of the opinion of the Agency.	3.  The Commission shall deliver an opinion on the draft statutes, the list of members and the draft rules of procedure, including the rules of procedures on the consultation with ENTSO for Electricity and other stakeholders, the decision-making procedure and the financing rules, taking into account the opinion of the Agency provided for in paragraph 2, within three months of receipt of the opinion of the Agency.
Amendment    172 Proposal for a regulation Article 50 – paragraph 6
Text proposed by the Commission	Amendment
6.  The costs related to the activities of the EU DSO entity shall be borne by distribution system operators who are registered members and shall be taken into account in the calculation of tariffs. Regulatory authorities shall approve those costs only if they are reasonable and proportionate.	6.  The costs related to the activities of the EU DSO entity shall be borne by distribution system operators who are registered members and shall be considered as eligible cost and taken into account by the regulatory authority in the calculation of tariffs. Regulatory authorities shall approve those costs only if they are reasonable and proportionate.
Amendment    173 Proposal for a regulation Article 50 a (new)
Text proposed by the Commission	Amendment
	Article 50a
	Principal rules and procedures for the EU DSO entity for electricity
	1.  The statutes of the EU DSO entity adopted in accordance with Article 50 shall safeguard the following principles:
	(a)  participation in the works of the EU DSO entity is limited to registered members with the possibility of delegation within the membership;
	(b)  strategic decisions regarding the activities of the EU DSO entity as well as policy guidelines for the Board of Directors are adopted by the General Assembly;
	(c)  decisions of the General Assembly are adopted according with the following rules: - when 65% of the votes attributed to the members of the General Assembly are reached, - whereby each member disposes of a number of votes proportional to the respective number of customers and - the final outcome is supported by at least 55% of the members of the General Assembly.
	(d)  decisions of the General Assembly are blocked according with the following rules:-when 35% of the votes attributed to the members of the General Assembly are reached, - whereby each member disposes of a number of votes proportional to the respective number of customers; and - the final outcome is supported by at least 25% of the members of the General Assembly
	(e)  the Board of Directors is elected by the General Assembly for a mandate of maximum 4 years;
	(f)  the Board of Directors nominates the President and the three Vice-Presidents among its members;
	(g)  DSO-TSO cooperation pursuant to Articles 52 and 53 is led by the Board of Directors;
	(h)  decisions of the Board of Directors are adopted by simple majority of 15 votes;
	(i)  based on proposal by the Board of Directors, the Secretary General is appointed by the General Assembly among its members for a four years mandate, renewable once;
	(j)  based on proposal by the Board of Directors, Expert Groups are appointed by the General Assembly whereby each group shall not exceed 30 members with the possibility of 1/3 coming from outside the membership. In addition, 'one country' expert group shall be established and consist of exactly one DSO representative from each Member State.
	2.  Procedures adopted by the EU DSO entity shall safeguard the fair and proportionate treatment of its members and reflect the diverse geographical and economic structure of its membership. In particular, the procedures shall foresee that:
	(a)  the Board of Directors is composed by the President of the Board and 27 members' representatives, of which: - [ ] 9 are representatives of members with more than 1 million grid users; - [ ] 9 are representatives of members with more than 100,000 and less than 1 million grid users; and - [ ] 9 are representatives of members with less than 100,000 grid users; (ab) representatives of existing DSO associations may participate as observers to the meetings of the Board of Directors;
	(b)   the Board of Directors may not consist of more than 3 representatives of members based in the same Member State or the same industrial group;
	(c)   each Vice-President of the Board has to be nominated among representatives of members in each category described in paragraph (a) above;
	(e)  representatives of members based in one Member State or the same industrial group may not constitute the majority of the Expert Group participants;
	(f)   the Board of Directors shall establish a Strategic Advisory group that provides its opinion to the Board of Directors and the Expert Groups and consists of representatives of the European DSO associations and representatives of those Member States which are not represented in the Board of Directors.
Amendment    174 Proposal for a regulation Article 51 – paragraph 1
Text proposed by the Commission	Amendment
1.  The tasks of the EU DSO entity shall be the following:	1.  The tasks of the EU DSO entity shall be the following:
(a)  coordinated operation and planning of transmission and distribution networks;	(a)  promote coordinated operation and planning of transmission and distribution networks;
(b)  integration of renewable energy resources, distributed generation and other resources embedded in the distribution network such as energy storage;	(b)  improve and maximise the integration of renewable energy resources, distributed generation and facilitate other resources embedded in the distribution network such as energy storage and sectoral integration;
(c)  development of demand response;	(c)  facilitate the development of demand response;
(d)  digitalisation of distribution networks including deployment of smart grids and intelligent metering systems;	(d)  improve the digitalisation of distribution networks including deployment of smart grids and smart metering systems;
(e)  data management, cyber security and data protection;	(e)  guarantee non-discriminatory and neutral access to data regardless of the data management model, and promote standardization, cross-border data exchange, in particular with ENTSO for Electricity where relevant to facilitate data exchange, cyber security and data protection;
(f)  participation in the elaboration of network codes pursuant to Article 55.	(f)  participate in the elaboration of network codes pursuant to Article 55.
Amendment    175 Proposal for a regulation Article 51 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a)  cooperate with ENTSO for electricity on the monitoring of implementation of the network codes and guidelines which are relevant to the operation and planning of distribution grids and the coordinated operation of the transmission and distribution networks and which are adopted pursuant to this Regulation;	(a)  cooperate effectively with ENTSO for electricity, the Agency and national regulators to facilitate the monitoring by the Agency and where relevant the national regulatory authorities of implementation of the network codes and guidelines which are relevant to the operation and planning of distribution grids and the coordinated operation of the transmission and distribution networks and which are adopted pursuant to this Regulation;
Amendment    176 Proposal for a regulation Article 52 – paragraph 1
Text proposed by the Commission	Amendment
1.  While preparing possible network codes pursuant to Article 55, the EU DSO entity shall conduct an extensive consultation process, at an early stage and in an open and transparent manner, involving all relevant stakeholders, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 50. That consultation shall also involve national regulatory authorities and other national authorities, supply and generation undertakings, system users including customers, distribution system operators, including relevant industry associations, technical bodies and stakeholder platforms. It shall aim at identifying the views and proposals of all relevant parties during the decision-making process.	1.  While participating in the elaboration of new network codes pursuant to Article 55, the EU DSO entity shall conduct an extensive consultation process, at an early stage and in an open and transparent manner, involving all relevant stakeholders, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 50. That consultation shall also involve national regulatory authorities and other national authorities, supply and generation undertakings, system users including customers, distribution system operators, including relevant industry associations, technical bodies and stakeholder platforms. It shall aim at identifying the views and proposals of all relevant parties during the decision-making process.
Amendment    177 Proposal for a regulation Article 53 – paragraph -1 (new)
Text proposed by the Commission	Amendment
	-1.  The ENTSO for Electricity and the EU DSO entity shall develop a formal mechanism to facilitate cooperation between distribution system operators and transmission system operators.
Amendment    178 Proposal for a regulation Article 53 – paragraph 1
Text proposed by the Commission	Amendment
1.  Distribution system operators shall cooperate with transmission system operators in planning and operating their networks. In particular, transmission and distribution system operators shall exchange all necessary information and data regarding, the performance of generation assets and demand side response, the daily operation of their networks and the long-term planning of network investments, with the view to ensure the cost-efficient, secure and reliable development and operation of their networks.	1.  Distribution system operators and transmission system operators shall cooperate in planning and operating their networks. In particular, transmission and distribution system operators shall exchange all necessary information and data regarding, the performance of generation assets and demand side response, the daily operation of their networks and the long-term planning of network investments, with the view to ensure the cost-efficient development and operation and the secure and reliable operation of their networks.
Amendment    179 Proposal for a regulation Article 55 – paragraph 1 – point k
Text proposed by the Commission	Amendment
(k)  rules regarding harmonised transmission and distribution tariff structures and connection charges including locational signals and inter-transmission system operator compensation rules;	deleted
Amendment    180 Proposal for a regulation Article 55 – paragraph 1 – point p
Text proposed by the Commission	Amendment
(p)  rules concerning regional operational centres.	deleted
Amendment    181 Proposal for a regulation Article 55 – paragraph 2
Text proposed by the Commission	Amendment
2.  The Commission shall, after consulting the Agency, the ENTSO for Electricity and the other relevant stakeholders, establish a priority list every three years, identifying the areas set out in paragraph 1 to be included in the development of network codes. If the subject-matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system, the Commission may require the EU DSO entity for electricity instead of the ENTSO for Electricity to convene a drafting committee and submit a proposal for a network code to the agency.	2.  The Commission shall, after consulting the Agency, the ENTSO for Electricity, the EU DSO entity for electricity and the other relevant stakeholders, establish a priority list every three years, identifying the areas set out in paragraph 1 to be included in the development of network codes. If the subject-matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system, the Commission may require the EU DSO entity for electricity instead of the ENTSO for Electricity to convene a drafting committee and submit a proposal for a network code to the agency.
Amendment    182 Proposal for a regulation Article 56 – paragraph 2
Text proposed by the Commission	Amendment
2.  Draft amendments to any network code adopted under Article 55 may be proposed to the Agency by persons who are likely to have an interest in that network code, including the ENTSO for Electricity, the EU DSO entity, transmission system operators, system users and consumers. The Agency may also propose amendments on its own initiative.	2.  Draft amendments to any network code adopted under Article 55 may be proposed to the Agency by persons who are likely to have an interest in that network code, including the ENTSO for Electricity, the EU DSO entity, transmission and distribution system operators, system users and consumers. The Agency may also propose amendments on its own initiative.
Amendment    183 Proposal for a regulation Article 56 a (new)
Text proposed by the Commission	Amendment
	Article 56 a
	By 31 December 2022 the Commission shall assess the existing implementing acts containing network codes and guidelines in order to evaluate which of their elements could be usefully enshrined in legislative acts of the Union concerning the internal electricity market. The Commission shall submit a detailed report of its assessment to the European Parliament and to the Council. That report shall be accompanied, where appropriate, by legislative proposals following up on the Commission's assessment.
Amendment    184 Proposal for a regulation Article 57 – paragraph 7
Text proposed by the Commission	Amendment
7.  When adopting or amending guidelines, the Commission shall consult the Agency, the ENTSO for Electricity and other stakeholders where relevant.	7.  When adopting or amending guidelines, the Commission shall consult the Agency, the ENTSO for Electricity, the EU DSO entity and other stakeholders where relevant.
Amendment    185 Proposal for a regulation Article 64 a (new)
Text proposed by the Commission	Amendment
	Article 64 a
	Review
	By 1 June 2025, the Commission shall review and submit a report on the implementation of this Regulation, together with a legislative proposal if appropriate, to the European Parliament and to the Council.
Amendment    186 Proposal for a regulation Annex I
Text proposed by the Commission	Amendment
Annex I	Annex I
FUNCTIONS OF REGIONAL OPERATIONAL CENTRES	FUNCTIONS OF REGIONAL COORDINATION CENTRES
1.  Coordinated capacity calculation	1.  Coordinated capacity calculation
1.1.  Regional operational centres shall perform coordinated calculation of cross zonal capacities.	1.1.  Regional coordination centres shall perform coordinated calculation of cross zonal capacities.
1.2.  Coordinated capacity calculation shall be performed in due time for each market timeframe and as frequently as needed during the intraday timeframe.	1.2.  Coordinated capacity calculation shall be performed in due time for each market timeframe and as frequently as needed during the intraday timeframe.
1.3.  Coordinated capacity calculation shall be performed based on a common system model in accordance with point 2 and on a coordinated capacity calculation methodology developed by the transmission system operators of the relevant system operation region.	1.3.  Coordinated capacity calculation shall be performed based on a common system model in accordance with point 2 and on a coordinated capacity calculation methodology developed by the transmission system operators of the relevant system operation region.
1.4.  Coordinated capacity calculation shall ensure efficient congestion management in accordance with the principles of congestion management defined in this Regulation.	1.4.  Coordinated capacity calculation shall ensure efficient congestion management in accordance with the principles of congestion management defined in this Regulation.
2.  Coordinated security analysis	2.  Coordinated security analysis
2.1.  Regional operational centres shall perform coordinated security analysis aiming at ensuring secure system operation.	2.1.  Regional coordination centres shall perform coordinated security analysis aiming at ensuring secure system operation.
2.2.  Security analysis shall be performed for all operational planning timeframes using the common system models.	2.2.  Security analysis shall be performed for all operational planning timeframes using the common system models.
2.3.  Regional operational centres shall share the results of the coordinated security analysis with at least the transmission system operators of the system operation region.	2.3.  Regional coordination centres shall share the results of the coordinated security analysis with at least the transmission system operators of the system operation region.
2.4.  When as a result of the coordinated security analysis a regional operational centre detects a possible constraint, it shall design remedial actions maximizing economic efficiency.	2.4.  When as a result of the coordinated security analysis a regional coordination centre detects a possible constraint, it shall design remedial actions maximizing economic efficiency.
	2.4 a.  Coordinated security analysis shall be performed based on a common system model in accordance with point 2 and on a methodology to design coordinated remedial actions developed by the transmission system operators of the relevant system operation region.
3.  Creation of common system models	3.  Creation of common system models
3.1.  Regional operational centres shall set up efficient processes for the creation of a common system model for each operational planning timeframe.	3.1.  Regional coordination centres shall set up efficient processes for the creation of a common system model for each operational planning timeframe.
3.2.  Transmission system operators shall appoint one regional operational centre to build the common system model for all regions.	3.2.  Transmission system operators shall appoint one regional coordination centre to build the common system model for all regions.
3.3.  Common system models shall include relevant data for efficient operational planning and capacity calculation in all operational planning timeframes.	3.3.  Common system models shall include relevant data for efficient operational planning and capacity calculation in all operational planning timeframes.
3.4.  Common system models shall be made available to all regional operational centres, transmission system operators, ENTSO for Electricity and the Agency, upon its request.	3.4.  Common system models shall be made available to all regional coordination centres, transmission system operators, ENTSO for Electricity and the Agency, upon its request.
4.  Consistency assessment of transmission system operators' defense plans and restoration plans	4.  Consistency assessment of transmission system operators' defense plans and restoration plans
4.1.  All transmission system operators shall agree on a threshold above which the impact of actions of one or more transmission system operators in the emergency, blackout or restoration states is considered significant for other transmission system operators synchronously or non- synchronously interconnected.	4.1.  All transmission system operators shall agree on a threshold above which the impact of actions of one or more transmission system operators in the emergency, blackout or restoration states is considered significant for other transmission system operators synchronously or non- synchronously interconnected.
4.2.  Using the threshold defined pursuant to point 4.1, each regional operational centre shall provide support to the transmission system operators of the system operation region regarding the assessment of the consistency of its transmission system operators’ system defence plans and the restoration plans.	4.2.  Using the threshold defined pursuant to point 4.1, each regional coordination centre shall provide support to the transmission system operators of the system operation region regarding the assessment of the consistency of its transmission system operators’ system defence plans and the restoration plans.
4.3.  In providing support to the transmission system operators, the regional operational centre shall:	4.3.  In providing support to the transmission system operators, the regional coordination centre shall:
(a)  identify potential incompatibilities;	(a)  identify potential incompatibilities;
(b)  propose mitigation actions.	(b)  propose mitigation actions.
4.4.  Transmission system operators shall take into account the proposed mitigation actions.	4.4.  Transmission system operators shall take into account the proposed mitigation actions.
5.  Coordination and optimization of regional restoration	5.  Coordination and optimization of regional restoration
5.1.  Regional operational centres shall be equipped with the close to real time supervisory control and data acquisition systems with the observability defined by applying the threshold defined in accordance with point
5.2.  Each relevant regional operational centre shall provide assistance to the appointed frequency leaders and the resynchronisation leaders aiming at improving the efficiency and effectiveness of system restoration. Transmission system operators shall be entitled to request assistance from regional operational centres if their system is in a blackout or restoration state.	5.2.  Each relevant regional coordination centre shall provide assistance to the appointed frequency leaders and the resynchronisation leaders aiming at improving the efficiency and effectiveness of system restoration. Transmission system operators shall be entitled to request assistance from regional coordination centres if their system is in a blackout or restoration state.
6.  Post-operation and post-disturbances analysis and reporting	6.  Post-operation and post-disturbances analysis and reporting
6.1.  Regional operational centres shall investigate and prepare a report on any incident above the threshold defined in accordance with point 4.1. The regulatory authorities of the system operation region and the Agency may be involved in the investigation upon their request. The report shall contain recommendations aiming at preventing similar incidents in future.	6.1.  Regional coordination centres shall investigate and prepare a report on any incident above the threshold defined in accordance with point 4.1. The regulatory authorities of the system operation region and the Agency may be involved in the investigation upon their request. The report shall contain recommendations aiming at preventing similar incidents in future.
6.2.  The report shall be made available to all transmission system operators, regulatory authorities, the Commission and the Agency. The Agency may issue recommendations aiming at preventing similar incidents in future.	6.2.  The report shall be made available to all transmission system operators, regulatory authorities, the Commission and the Agency. The Agency may issue recommendations aiming at preventing similar incidents in future.
7.  Regional sizing of reserve capacity	7.  Regional sizing of reserve capacity
7.1.  Regional operational centres shall determine the reserve capacity requirements for the system operation region. The determination of reserve capacity requirements shall:	7.1.  Regional coordination centres shall determine the reserve capacity requirements for the system operation region. The determination of reserve capacity requirements shall:
(a)  pursue the general objective to maintain operational security in the most cost effective manner;	(a)  pursue the general objective to maintain operational security in the most cost effective manner;
(b)  be performed at the day-ahead and/or intraday timeframe;	(b)  be performed at the day-ahead and/or intraday timeframe;
(c)  determine the overall amount of required reserve capacity for the system operation region;	(c)  determine the overall amount of required reserve capacity for the system operation region;
(d)  define minimum reserve capacity requirements for each type of reserve capacity;	(d)  define minimum reserve capacity requirements for each type of reserve capacity;
(e)  take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement;	(e)  take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement;
(f)  set out the necessary requirements for the geographical distribution of required reserve capacity, if any.	(f)  set out the necessary requirements for the geographical distribution of required reserve capacity, if any.
8.  Facilitation of the regional procurement of balancing capacity	8.  Facilitation of the regional procurement of balancing capacity
8.1.  Regional operational centres shall support the transmission system operators of the system operation region in determining the amount of balancing capacity that needs to be procured. The determination of the amount of balancing capacity shall:	8.1.  Regional coordination centres shall support the transmission system operators of the system operation region in determining the amount of balancing capacity that needs to be procured. The determination of the amount of balancing capacity shall:
(a)  be performed at the day-ahead and/or intraday timeframe;	(a)  be performed at the day-ahead and/or intraday timeframe;
(b)  take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement;	(b)  take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement;
(c)  take into account the volumes of required reserve capacity that are expected to be provided by balancing energy bids, which are not submitted based on a contract for balancing capacity.	(c)  take into account the volumes of required reserve capacity that are expected to be provided by balancing energy bids, which are not submitted based on a contract for balancing capacity;
	(ca)  take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement.
8.2.  Regional operational centres shall support the transmission system operators of the system operation region in procuring the required amount of balancing capacity determined in accordance with point 8.1. The procurement of balancing capacity shall
(a)  be performed at the day-ahead and/or intraday timeframe;
(b)  take into account possible substitutions between different types of reserve capacity with the aim to minimise the costs of procurement.
9.  Regional system adequacy forecasts and preparation of risk reducing actions	9.  Regional system adequacy forecasts and preparation of risk reducing actions
9.1.  Regional operational centres shall perform week ahead to intraday regional adequacy assessments.	9.1.  Regional coordination centres shall perform week ahead to intraday regional adequacy assessments.
9.2.  Regional operational centres shall base the adequacy assessments on the information provided by the transmission system operators of system operation region with the aim of detecting situations where a lack of adequacy is expected in any of the control areas or at regional level. Regional operational centres shall take into account possible cross-zonal exchanges and operational security limits in all operational planning timeframes.	9.2.  Regional coordination centres shall base the adequacy assessments on the information provided by the transmission system operators of system operation region with the aim of detecting situations where a lack of adequacy is expected in any of the control areas or at regional level. Regional coordination centres shall take into account possible cross-zonal exchanges and operational security limits in all operational planning timeframes.
9.3.   When performing a regional generation adequacy assessment, each regional operational centre shall coordinate with other regional operational centres to:	9.3.   When performing a regional generation adequacy assessment, each regional coordination centre shall coordinate with other regional coordination centres to:
(a)  verify the underlying assumptions and forecasts;	(a)  verify the underlying assumptions and forecasts;
(b)  detect possible cross-regional lack of adequacy situations.	(b)  detect possible cross-regional lack of adequacy situations.
9.4.  Each regional operational centre shall deliver the results of the regional generation adequacy assessments together with the actions it proposes to reduce risks of lack of adequacy to the transmission system operators of the system operation region and to other regional operational centres.	9.4.  Each regional coordination centre shall deliver the results of the regional generation adequacy assessments together with the actions it proposes to reduce risks of lack of adequacy to the transmission system operators of the system operation region and to other regional coordination centres.
10.  Regional outage coordination	10.  Regional outage coordination
10.1.  Each regional operational centre shall perform outage coordination in order to monitor the availability status of the relevant assets and coordinate their availability plans to ensure the operational security of the transmission system, while maximizing the capacity of the interconnectors and/or the transmission	10.1.  Each regional coordination centre shall perform outage coordination in order to monitor the availability status of the relevant assets and coordinate their availability plans to ensure the operational security of the transmission system, while maximizing the capacity of the interconnectors and/or the transmission systems affecting cross-zonal flows.
10.2.  Each regional operational centre shall maintain a single list of relevant grid elements, power generating modules and demand facilities of the system operation region and make it available on the ENTSO for Electricity operational planning data environment.	10.2.  Each regional coordination centre shall maintain a single list of relevant grid elements, power generating modules and demand facilities of the system operation region and make it available on the ENTSO for Electricity operational planning data environment.
10.3.  Each regional operational centre shall carry out the following activities related to outage coordination in the system operation region:	10.3.  Each regional coordination centre shall carry out the following activities related to outage coordination in the system operation region:
(a)  assess outage planning compatibility using all transmission system operators’ year-ahead availability plans;	(a)  assess outage planning compatibility using all transmission system operators’ year-ahead availability plans;
(b)  provide the transmission system operators of the system operation region with a list of detected planning incompatibilities and the solutions it proposes to solve the incompatibilities.	(b)  provide the transmission system operators of the system operation region with a list of detected planning incompatibilities and the solutions it proposes to solve the incompatibilities.
11.  Optimization of inter-transmission system operators compensation mechanisms	11.  Optimization of inter-transmission system operators compensation mechanisms
11.1.   Regional operational centres shall support the transmission system operators of the system operation region in administering the financial flows related to inter- transmission system operators settlements involving more than two transmission system operators, such as redispatching costs, congestion income, unintentional deviations or reserve procurement costs.	11.1.  Regional coordination centres shall support the transmission system operators of the system operation region in administering the financial flows related to inter- transmission system operators settlements involving more than two transmission system operators, such as redispatching costs, congestion income, unintentional deviations or reserve procurement costs.
12.  Training and certification	12.  Training and certification
12.1.  Regional operational centres shall prepare and execute training and certification programs focusing on regional system operation for the personnel working in the planning and control rooms of the transmission system operators of system operation region.	12.1.  Regional coordination centres shall prepare and execute training and certification programs focusing on regional system operation for the personnel working in the planning and control rooms of the transmission system operators of system operation region.
12.2.  The training programs shall cover all the relevant components of system operation, including scenarios of regional crisis.	12.2.  The training programs shall cover all the relevant components of system operation, including scenarios of regional crisis.
13.  Identification of regional crisis situations and preparation of risk mitigation scenarios reviewing the risk preparedness plans as established in Member States	13.  Identification of regional crisis situations and preparation of risk mitigation scenarios reviewing the risk preparedness plans as established in Member States
13.1.  If ENTSO for Electricity delegates this function, regional operational centres shall identify regional crisis scenarios in accordance with the criteria set out in Article 6(1) of [Risk Preparedness Regulation as proposed by COM(2016) 862]	13.1.  If ENTSO for Electricity delegates this function, regional coordination centres shall identify regional crisis scenarios in accordance with the criteria set out in Article 6(1) of [Risk Preparedness Regulation as proposed by COM(2016) 862]
13.2.   Regional operational centres shall prepare and carry out yearly crisis simulation in cooperation with competent authorities according to Article 12(3) of [Risk Preparedness Regulation as proposed by COM(2016) 862].	13.2.  Regional coordination centres shall prepare and carry out yearly crisis simulation in cooperation with competent authorities according to Article 12(3) of [Risk Preparedness Regulation as proposed by COM(2016) 862].
	13a.  Identification of needs for new capacity, for upgrade of existing capacity or their alternatives.
	13a.1.  Regional coordination centres shall support transmission system operators in the identification of needs for new capacity, for an upgrading of existing capacity or for their alternatives, to be submitted to the regional groups established pursuant to Regulation (EU) No 347/2013 and to be included in the ten-year network development plan referred to in Article 51 of [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2]

• [1]  OJ C 77, 28.3.2002, p. 1.
• [2]  OJ C 288, 31.8.2017, p. 91.
• [3]  OJ C 342, 12.10.2017, p. 79.

EXPLANATORY STATEMENT

I. Introduction

For years electricity systems in Europe were dominated by national monopolies, which controlled the entire system from production through distribution and delivery to the consumer. Although such a “top-down” system provided electricity, it did not allow for any competition, which is not beneficial for consumers. Since 1996, electricity markets have been gradually opened to foster competition and bring down prices. The last substantive EU legislative changes came with the Third Energy Package back in 2009.

Since that time, a revolution has occurred in the generation of electricity. Electricity production has evolved from a “spoke and wheel” centralized system to a much more decentralized one, due to advances in renewable and other technologies. Once again legislation needs to be adjusted to adopt to this new reality.

Renewables (often coming from the wind or the sun) have introduced a large degree of intermittency to the system, which has had to adapt to become more flexible while still guaranteeing security of supply to consumers. Our climate goals have fostered various subsidy and support schemes, which combined with incomplete cross-border cooperation between EU Member States have resulted in an overcapacity of generation on EU level. In many Member States, regulated prices combined with the disjoint support schemes are sending the wrong signals for investments.

To address these challenges and to foster decarbonisation, your rapporteur has taken a “market first” approach, which means creating a truly level playing field for all market participants. This entails moving away from market-distorting subsidies, whether they are for fossil fuels, nuclear, or renewable energy sources. Fair rules mean fair competition in the market. A fair electricity market will deliver both our climate goals as well as the lowest and most competitive prices for consumers, at the same time ensuring security of supply without over-investment.

II. The report

II.1. Market first

A fundamental principle of any market is free movement of prices. Therefore removal of price caps is an essential element and should take place as soon as possible.

Capacity mechanisms are subsidies, which make little to no sense when there is overcapacity in the EU. The rapporteur believes that they should be applied only as a last resort. First, the European adequacy assessment would have to establish that the adequacy concern exists. Then the Member State would have to address the existing obstacles causing the adequacy concern through concrete commitments, subject to review by the Commission. Where the adequacy concern can only be addressed over a longer period of time, a capacity mechanism would be allowed, subject to certain conditions and EU State aid rules. Such mechanisms, where feasible, would have to be cross-border.

A level playing field for all is the key element in ensuring that prices are based on competition. The current support to some producers in the form of priority dispatch and derogation from balancing responsibility distorts competition. The rapporteur believes that for the market to deliver, everyone has to be financially responsible for the imbalances they cause in the system. Such an approach provides the right incentive to keep the system in balance and ensures the appropriate level of security of supply, reducing the need for capacity mechanisms.

II.2. Bidding zones

Larger bidding zones provide more liquidity, but less incentives for grid investments. The rapporteur shares the view that bidding zones should be stable over time and as large as possible, taking into account systemic congestion. He is suggesting a carrot and a stick approach. First, after the bidding zone review, relevant Member States should agree unanimously on the bidding zone structure and concrete commitments where necessary. When an agreement cannot be reached, the Commission should step in to resolve the disagreement.

II.3. Regional cooperation

In the electricity market, what happens in one Member State influences others in the region and beyond. To ensure system security and avoid blackouts, more regional cooperation of the transmission system operators is key. The rapporteur sees the great benefit which the already operational regional security coordinators provide in ensuring system security. As electricity markets become ever more interlinked, enhancing this cooperation by assigning more tasks and functions at the regional level is the next logical step. However, the ultimate responsibility for the security of the system has to remain with the transmission system operators.

II.4. Consumer

Technology now allows new actors to become active on the electricity market. Therefore, the market design has to allow and facilitate inclusion of everyone that can and is willing to participate, whether it is through self-generation, storage, or demand response. Removing market barriers means more market players and more choice for the consumer. The rapporteur is also suggesting changes in the proposal to ensure that the consumer can make well-informed decisions and switch suppliers in a short period of time.

ANNEX: LETTER FROM THE COMMITTEE ON LEGAL AFFAIRS

D(2017)31012

Jerzy Buzek

Chair, Committee on Industry, Research and Energy

PHS 08B046

Brussels

Subject:  Proposal for a regulation of the European Parliament and of the Council on the internal market for electricity (recast)

  (COM(2016)0861 – C8 0492/2016 – 2016/0379(COD))

Dear Chair,

The Committee on Legal Affairs has examined the proposal referred to above, pursuant to Rule 104 on Recasting, as introduced into the Parliament's Rules of Procedure.

Paragraph 3 of that Rule reads as follows:

“If the committee responsible for legal affairs considers that the proposal does not entail any substantive changes other than those identified as such in the proposal, it shall inform the committee responsible.

In such a case, over and above the conditions laid down in Rules 169 and 170, amendments shall be admissible within the committee responsible for the subject-matter only if they concern those parts of the proposal which contain changes.

However, amendments to parts of the proposal which remain unchanged may, by way of exception and on a case-by-case basis, be accepted by the Chair of the committee responsible for the subject matter if he or she considers that this is necessary for pressing reasons relating to the internal logic of the text or because the amendments are inextricably linked to other admissible amendments. Such reasons must be stated in a written justification to the amendments.”

Following the opinion of the Consultative Working Party of the legal services of the Parliament, the Council and the Commission, which has examined the recast proposal, and in keeping with the recommendations of the rapporteur, the Committee on Legal Affairs considers that the proposal in question does not include any substantive changes other than those identified as such in the proposal and by the Consultative Working Party and that, as regards the codification of the unchanged provisions of the earlier acts with those changes, the proposal contains a straightforward codification of the existing texts, without any change in their substance.

In conclusion, at its meeting of 13 July 2017, the Committee on Legal Affairs, by 21 votes in favour and 2 abstentions , recommends that the Committee on Industry, research and Energy, as the committee responsible, can proceed to examine the above proposal in accordance with Rule 104.

Yours sincerely,

Pavel Svoboda

Encl.: Report signed by the President of the Consultative Working Party.

ANNEX: OPINION OF THE CONSULTATIVE WORKING PARTY OF THE LEGAL SERVICES OF THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COMMISSION

	GROUPE CONSULTATIF DES SERVICES JURIDIQUES

    Brussels, 20 June 2017

OPINION

FOR THE ATTENTION OF  THE EUROPEAN PARLIAMENT

          THE COUNCIL

          THE COMMISSION

Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast)

COM(2016) 861 final/2 of 23.2.2017 - 2016/0379 (COD)

Having regard to the Inter-institutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts, and in particular to point 9 thereof, the Consultative Working Party consisting of the respective legal services of the European Parliament, the Council and the Commission met on 3 May 2017 for the purpose of examining, among others, the aforementioned proposal submitted by the Commission.

At that meeting[1], an examination of the proposal for a Regulation of the European Parliament and of the Council recasting Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 resulted in the Consultative Working Party’s establishing, by common accord, that the following should have been marked with the grey-shaded type generally used for identifying substantive changes:

- in Article 27(1)(b), the adding of the words 'and publish';

- in Article 27(1)(j), the adding of the words 'pursuant to Article 9(2) [Regulation on risk preparedness as proposed by COM(2016) 862]';

- in Article 29(1), first subparagraph, and in Article 31(1), the replacement of the current reference to 'Article 8(1), (2) and (3)' with a reference to 'Article 27(1), (2) and (3)';

- in Article 29(1), second subparagraph, the replacement of the current reference to 'Article 8(2)' with a reference to 'Article 55(14)';

- in Article 29(1), third subparagraph, the replacement of the current reference to 'Article 6(11)' with a reference to 'Article 54(1)';

- in Article 30, the reference to Article 54;

- in Article 56(4), the words 'in accordance with Article 63';

- in Article 56(5), the replacement of the current reference to 'Article 23(2)' with a reference to 'Article 63';

- in Article 57(6), the deletion of the words 'and the Agency opinion.

In consequence, examination of the proposal has enabled the Consultative Working Party to conclude, without dissent, that the proposal does not comprise any substantive amendments other than those identified as such. The Working Party also concluded, as regards the codification of the unchanged provisions of the earlier act with those substantive amendments, that the proposal contains a straightforward codification of the existing legal text, without any change in its substance.

F. DREXLER      H. LEGAL      L. ROMERO REQUENA

Jurisconsult      Jurisconsult      Director General

• [1]   The Consultative Working Party worked on the basis of the English language version of the proposal, being the master-copy language version of the text under discussion.

MINORITY OPINION

Minority opinion (Rule 52a of the Rules of Procedure) on the report on the proposal for a regulation of the European Parliament and of the Council on the internal market for electricity (recast)

Angelika Niebler

As a result of today’s vote in the Committee on Industry on the report on the regulation on the internal electricity market, it has been decided that at least 75% of cross-border power lines must be opened up for European electricity trading by the end of 2025 and that in future the Commission will have the final say in the reconfiguration of the electricity distribution zones.

Efforts to meet this rigid target of 75% by 2025 would lead to significant internal grid congestion in Germany and, in turn, a huge increase in redispatch costs. Setting these very specific targets rules out the flexible opening-up of power lines on the basis of technical feasibility and economic viability, with the result that it will not be possible to take account of actual circumstances on the ground, such as the progress made in expanding the grid in Germany.

Should Germany not be able to achieve these targets, the Commission can reconfigure the electricity distribution zones. The resulting threat of the single electricity distribution zone formed by Germany being split up would have a dramatic impact on electricity prices and create a clear north-south divide.

I am in favour of the internal electricity market. I regard the rigid requirements for cross-border power lines as laid down in the report on the regulation on the internal electricity market as irresponsible, however. That is why I voted against the proposal to issue Parliament with a mandate to enter the trilogue negotiations.

OPINION of the Committee on the Environment, Public Health and Food Safety (07.12.2017)

for the Committee on Industry, Research and Energy

on the proposal for a regulation of the European Parliament and of the Council on the internal market for electricity (recast)
(COM(2016)0861 – C8-0492/2016 – 2016/0379(COD))

Rapporteur: Ivo Belet

SHORT JUSTIFICATION

Overall, the Rapporteur welcomes the European Commission's priorities for the clean energy package: energy efficiency first, EU's global leadership in renewables and a fair deal for energy consumers.

The proposal for a regulation is aimed at establishing an integrated energy market that provides several benefits including the integration and development of large volumes of electricity produced from renewable sources in a cost efficient manner and further energy saving thanks to a more transparent pricing.

General rules

EU legislation must find the right balance between market-based approaches and effective regulation. Market corrections could be needed to overcome market failures and to achieve objectives of general social and economic interest. The right balance is needed in order to deliver the energy transition at the lowest societal cost.

Priority dispatch

If we want to maintain the EU’s global leadership in renewables, it might be premature, as long as wholesale markets still show distortions, to foresee the end of priority grid access and priority dispatch for renewable power plants. Rules regarding the removal of priority dispatch and curtailment need to be carefully assessed.

Network charges and congestion income

Redesign of network tariffs should be handled with care. When trying to better reflect the real use of the grid, solidarity issues must not be side-lined.

The proposed review limits the use of congestion revenues to costs related to the actual availability of capacity and costs for interconnection capacities. Especially when interconnection targets are reached, it should remain an option that congestion income flows back to the grid users to ensure public acceptance.

Resource adequacy

The Rapporteur welcomes the formalisation of a coordinated European resource adequacy methodology as a necessary step in order to ensure comparable assessments.

Nevertheless, further attention is needed to achieve the right balance between the European level at the one hand and the regional and national level at the other hand. Therefore, the coordinated European resource adequacy assessment should be complemented by assessments focussing at national or regional level (including more granularity, more sensitivities, local situations, etc...).

In order to ensure security of supply at the lowest cost for consumers, reasons to introduce capacity mechanisms should be properly scrutinised. Costs of capacity mechanisms and their impact on consumers’ bills should be carefully assessed. Capacity mechanisms should be established on the basis of transparent criteria that include flexibility and should not run counter to the EU’s climate and energy targets. Capacity mechanisms should only be a temporary measure of last resort, limited in time and accompanied by a clear exit strategy.

Transmission system operation

To successfully integrate the different national energy markets, the Rapporteur considers that efficient coordination of the European power system is needed. Regional coordination between TSOs is a key building block in the achievement of the Energy Union. Recently this has become mandatory through different EU Regulations (network codes and guidelines). Further transfer of tasks and widening of the regional base for cooperation within regional cooperation centres, is certainly needed, but it is questionable whether this can be successfully realised top down. The legislative framework should promote elaborating the European dimension of transmission operation bottom-up.

AMENDMENTS

The Committee on the Environment, Public Health and Food Safety calls on the Committee on Industry, Research and Energy, as the committee responsible, to take into account the following amendments:

Amendment    1 Proposal for a regulation Recital 2
Text proposed by the Commission	Amendment
(2)  The Energy Union aims at providing consumers – household and business – secure, sustainable, competitive and affordable energy. Historically, the electricity system was dominated by vertically integrated, often publicly owned, monopolies with large centralised nuclear or fossil fuel power plants. The internal market in electricity, which has been progressively implemented since 1999, aims to deliver a real choice for all consumers in the Union, both citizens and businesses, new business opportunities and more cross-border trade, so as to achieve efficiency gains, competitive prices and higher standards of service, and to contribute to security of supply and sustainability. The internal market in electricity has increased competition, in particular at the wholesale level, and cross-border trade. It remains the foundation of an efficient energy market.	(2)  The Energy Union aims at providing consumers – household and business – secure, sustainable, competitive and affordable energy. Historically, the electricity system was dominated by vertically integrated, often publicly owned, monopolies with large centralised nuclear or fossil fuel power plants. The internal market in electricity, which has been progressively implemented since 1999, aims to deliver a real choice for all consumers in the Union, both citizens and businesses, open up new business opportunities for undertakings, encourage cooperative ‘citizens’ energy’ models with regional value added and boost cross-border trade, so as to achieve efficiency gains, competitive prices and higher standards of service, and to contribute to security of supply and sustainability. The internal market in electricity has increased competition, in particular at the wholesale level, and cross-border trade. It remains the foundation of an efficient energy market.
Justification
The amendment is in line with the aims of the Commission’s proposal for recast.
Amendment    2 Proposal for a regulation Recital 3 a (new)
Text proposed by the Commission	Amendment
	(3a)  The 'energy efficiency first' principle plays an important role in designing the electricity market. By fostering a level playing field for demand side solutions, including demand response and energy efficiency improvements, it makes sure that the market can be effective in delivering the objectives of the Energy Union and the climate and energy framework 2030.
Amendment    3 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5)  In the past, electricity customers were purely passive, often buying electricity at regulated prices which had no direct relation to the market. In the future, customers need to be enabled to fully participate in the market on equal footing with other market participants. To integrate growing shares of renewable energy, the future electricity system should make use of all available sources of flexibility, particularly demand response and storage. To achieve effective decarbonisation at lowest cost, it also needs to encourage energy efficiency.	(5)  In the past, electricity customers were purely passive, often buying electricity at regulated prices which had no direct relation to the market. In the future, customers need to be enabled to fully participate in the market on equal footing with other market participants. To integrate growing shares of renewable energy, the future electricity system should make use of all available sources of flexibility, particularly demand response and storage. To achieve effective decarbonisation at lowest cost, it also needs to encourage energy efficiency and thus reduce the energy demand and drive investments on the long term.
Amendment    4 Proposal for a regulation Recital 6
Text proposed by the Commission	Amendment
(6)  More market integration and the change towards a more volatile electricity production requires increased efforts to coordinate national energy policies with neighbours and to use the opportunities of cross-border electricity trade.	(6)  More market integration and the change towards a more distributed and volatile electricity production requires increased efforts to coordinate national energy policies with neighbours and to use the opportunities of cross-border electricity trade.
Amendment    5 Proposal for a regulation Recital 8
Text proposed by the Commission	Amendment
(8)  Core market principles should set out that electricity prices are to be determined through demand and supply. Those prices should signal when electricity is needed, providing market-based incentives for investments into flexibility sources such as flexible generation, interconnection, demand response or storage.	(8)  Core market principles should set out that electricity prices are to be determined through demand and supply. While respecting the principles of solidarity and fair distribution of costs, those prices should signal when electricity is needed, providing market-based incentives for investments into flexibility sources such as flexible generation, interconnection, demand response or storage.
Amendment    6 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9)  The decarbonisation of the electricity sector, with renewable energy becoming a major part of the market, is a core objective of the Energy Union. As the Union moves towards the decarbonisation of the electricity sector and increasing penetration of renewable energy sources, it is crucial that the market removes existing barriers to cross-border trade and encourages investments into supporting infrastructure, for example, more flexible generation, interconnection, demand response and storage. To support this shift to variable and distributed generation, and to ensure that energy market principles are the basis for the Union's electricity markets of the future, a renewed focus on short-term markets and scarcity pricing is essential.	(9)  The decarbonisation of the electricity sector, with renewable energy becoming a major part of the market, is a core objective of the Energy Union. As the Union moves towards the decarbonisation of the electricity sector and increasing penetration of renewable energy sources, it is crucial that the market removes existing barriers to cross-border trade and encourages investments into supporting infrastructure, for example, more flexible generation, interconnection, demand response and storage. To support the roll-out of energy storage solutions, Member States should take steps to remove out dated taxation provisions that lead to double-taxation. To support this shift to variable and distributed generation, and to ensure that energy market principles are the basis for the Union's electricity markets of the future, a renewed focus on short-term markets and scarcity pricing is essential.
Justification
The efficient rollout of energy storage has been hampered by tax code provisions that lead to double-taxation. Member States should therefore take steps to remove these barriers.
Amendment    7 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10)  Short-term markets will improve liquidity and competition by enabling more resources to participate fully in the market, especially those that are more flexible. Effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market. It is therefore critical to ensure that, as far as possible, administrative and implicit price caps are removed to allow scarcity prices to increase up to the value of lost load. When fully embedded in the market structure, short-term markets and scarcity pricing will contribute to the removal of other measures, such as capacity mechanisms, to ensure security of supply. At the same time, scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers, in particular households and SMEs.	(10)  Short-term markets will improve liquidity and competition by enabling more resources to participate fully in the market, especially those that are more flexible. Effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market. It is therefore critical to ensure that, as far as possible, administrative and implicit price caps are removed to allow scarcity prices to increase up to the value of lost load. When fully embedded in the market structure, short-term markets and scarcity pricing will contribute to the removal of other measures, such as capacity mechanisms, to ensure security of supply. At the same time, scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable stable and affordable prices for final customers, in particular households and SMEs.
Amendment    8 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12)  The precondition for effective competition in the internal market in electricity is non-discriminatory and transparent charges for network use including interconnecting lines in the transmission system. The available capacity of those lines should be set at the maximum levels consistent with the safety standards of secure network operation.	(12)  The precondition for effective competition in the internal market in electricity is non-discriminatory, transparent and adequate charges for network use including interconnecting lines in the transmission system. The available capacity of those lines should be set at the maximum levels consistent with the safety standards of secure network operation.
Justification
The amendment is in line with the aims of the Commission’s proposal for recast.
Amendment    9 Proposal for a regulation Recital 14
Text proposed by the Commission	Amendment
(14)  To efficiently steer necessary investments, prices also need to provide signals where electricity is most needed. In a zonal electricity system, correct locational signals require a coherent, objective and reliable determination of bidding zones via a transparent process. In order to ensure efficient operation and planning of the Union electricity network and to provide effective price signals for new generation capacity, demand response or transmission infrastructure, bidding zones should reflect structural congestion. In particular, cross-zonal capacity should not be reduced in order to resolve internal congestion.	(14)  To efficiently steer necessary investments, prices also need to provide signals where electricity is most needed. In a zonal electricity system, correct locational signals require a coherent, objective and reliable determination of bidding zones via a transparent process. In order to ensure efficient operation and planning of the Union electricity network and to provide effective price signals for new generation capacity, demand response, energy storage or transmission infrastructure, bidding zones should reflect structural congestion. In particular, cross-zonal capacity should not be reduced in order to resolve internal congestion.
Justification
Ensures that energy storage is recognised as a new energy asset class in EU law.
Amendment    10 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15)  Efficient decarbonisation of the electricity system via market integration requires systematically abolishing barriers to cross-border trade to overcome market fragmentation and to allow Union energy customers to fully benefit from the advantages of integrated electricity markets and competition.	(15)  Efficient decarbonisation of the electricity system by 2050 via market integration requires systematically abolishing barriers to cross-border trade to overcome market fragmentation and to allow Union energy customers to fully benefit from the advantages of integrated electricity markets and competition. It also needs to provide for a fair transition for coal mining regions and for those parts of the electricity market that are still largely based on electricity production from coal, as their decommission necessary in the framework of the transition to a flexible and sustainable energy system enabling the Union to meet the Paris Agreement will have to address the numerous economical and social challenges.
Justification
Decarbonisation needs to be inclusive, just and agreed by all stakeholders and consider societal, economic and environmental impacts, as well as sustainable labour alternatives, especially when the phase-out is linked to the closure of mining activities. A preparatory action on the establishment of a coal platform dialogue to discuss aspects of governance, just transition and decommissioning is about to start and EU Electricity Market rules should be in line with those activities.
Amendment    11 Proposal for a regulation Recital 15 a (new)
Text proposed by the Commission	Amendment
	(15a)  Priority dispatch for generating installations using variable renewable energy sources should be recognised for its role in supporting the Union to meet its targets for the use of energy from renewable sources and reduction of greenhouse gas emissions.
Amendment    12 Proposal for a regulation Recital 26
Text proposed by the Commission	Amendment
(26)  A robust medium to long-term Union level resource adequacy assessment should be carried out by the ENTSO for Electricity to provide an objective basis for the assessment of adequacy concerns. The resource adequacy concern that capacity mechanisms address should be based on the EU assessment.	(26)  A robust medium to long-term Union level resource adequacy assessment should be carried out by the ENTSO for Electricity to provide an objective basis for the assessment of adequacy concerns. That assessment should be complemented by more granular assessments at the level of bidding zones, Member States and regions. The resource adequacy concern that capacity mechanisms address should be based on those assessments.
Amendment    13 Proposal for a regulation Recital 27
Text proposed by the Commission	Amendment
(27)  The medium to long-term resource adequacy assessment (from 10 year-ahead to year-ahead) set out in this regulation has a different purpose than the seasonal outlooks (six months ahead) as set out in Article 9 [Regulation on risk preparedness as proposed by COM(2016) 862]. Medium- to long-term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation. In addition, Regional Operational Centres also carry out regional adequacy assessments as defined in European legislation on electricity transmission system operation. These are very short-term adequacy assessments (from weak-ahead to day-ahead) used in the context of system operation.	(27)  The medium to long-term resource adequacy assessment (from 10 year-ahead to year-ahead) set out in this regulation has a different purpose than the seasonal outlooks (six months ahead) as set out in Article 9 [Regulation on risk preparedness as proposed by COM(2016) 862]. Medium- to long-term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation. In addition, regional coordination centres also carry out regional adequacy assessments as defined in European legislation on electricity transmission system operation. These are very short-term adequacy assessments (from weak-ahead to day-ahead) used in the context of system operation.
	(This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment    14 Proposal for a regulation Recital 28
Text proposed by the Commission	Amendment
(28)  Prior to introducing capacity mechanisms, Member States should assess regulatory distortions contributing to the related resource adequacy concern. They should be required to adopt measures to eliminate the identified distortions including a timeline for their implementation. Capacity mechanisms should only be introduced for the residual concerns that cannot be addressed through removing such distortions.	(28)  Prior to introducing capacity mechanisms, Member States should assess regulatory distortions contributing to the related resource adequacy concern. They should be required to adopt measures to eliminate the identified distortions including a timeline for their implementation. Capacity mechanisms should only be introduced for the residual concerns, such as security of energy supplies, that cannot be addressed through removing such distortions.
Amendment    15 Proposal for a regulation Recital 31
Text proposed by the Commission	Amendment
(31)  Detailed rules for facilitating effective cross-border participation in capacity mechanisms other than reserve schemes should be laid down. Transmission system operators across the borders should facilitate interested generators wanting to participate in capacity mechanisms in other Member States. Therefore, they should calculate capacities up to which cross-border participation would be possible, enable participation and check availabilities. National regulatory authorities should enforce the cross-border rules in the Member States.	(31)  Detailed rules for facilitating effective cross-border participation in capacity mechanisms other than strategic reserves should be laid down. Transmission system operators across the borders should facilitate interested generators wanting to participate in capacity mechanisms in other Member States. Therefore, they should calculate capacities up to which cross-border participation would be possible, enable participation and check availabilities. National regulatory authorities should enforce the cross-border rules in the Member States.
Amendment    16 Proposal for a regulation Recital 32
Text proposed by the Commission	Amendment
(32)  In view of differences in national energy systems and technical limitations of existing electricity networks, the best approach to achieving progress in market integration will often be at a regional level. Regional cooperation of transmission system operators should thus be strengthened. In order to ensure efficient cooperation, a new regulatory framework should foresee stronger regional governance and regulatory oversight, including by strengthening the decision-making power of the Agency for cross-border issues. Closer cooperation of Member States could be needed also in crisis situations, to increase security of supply and limit market distortions.	(32)  In view of differences in national energy systems and technical limitations of existing electricity networks, the best and the most cost-effective approach to achieving progress in market integration will often be at a regional level. Regional cooperation of transmission system operators should thus be strengthened. In order to ensure efficient cooperation, a new regulatory framework should foresee stronger regional governance and regulatory oversight, including by strengthening the decision-making power of the Agency for cross-border issues. Closer cooperation of Member States could be needed also in crisis situations, to increase security of supply and limit market distortions.
Amendment    17 Proposal for a regulation Recital 35
Text proposed by the Commission	Amendment
(35)  Regional operational centres should carry out functions where their regionalisation brings added value compared to functions performed at national level. The functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional system operation, market operation and risk preparedness functions. The functions carried out by regional operational centres should exclude real time operation of the electricity system.	(35)  Regional coordination centres should carry out functions where their regionalisation brings added value compared to functions performed at national level. The functions of regional coordination centres should cover the functions carried out by regional security coordinators as well as additional functions of regional importance. The functions carried out by regional coordination centres should exclude real time operation of the electricity system.
Amendment    18 Proposal for a regulation Recital 36
Text proposed by the Commission	Amendment
(36)  Regional operational centres should primarily act in the interest of system and market operation of the region over the interests of any single entity. Hence, regional operational centres should be entrusted with decision-making powers to act and to direct actions to be taken by transmission system operators of the system operation region for certain functions and with an enhanced advisory role for the remaining functions.	(36)  Regional coordination centres should primarily act in the interest of system and market operation of the region over the interests of any single entity. Hence, regional coordination centres should have an enhanced advisory role by means of their ability to issue recommendations.
Amendment    19 Proposal for a regulation Recital 38
Text proposed by the Commission	Amendment
(38)  In order to raise efficiencies in the electricity distribution networks in the Union and ensure close cooperation with transmission system operators and ENTSO for electricity, a European entity of distribution system operators in the Union ("EU DSO entity") should be established. The tasks of the EU DSO entity should be well-defined and its working method should ensure efficiency, transparency and representativeness amongst the Union distribution system operators. The EU DSO Entity should closely cooperate with ENTSO for Electricity on the preparation and implementation of the network codes where applicable and should work on providing guidance on the integration inter alia of distributed generation and storage in distribution networks or other areas which relate to the management of distribution networks.	(38)  In order to raise efficiencies in the electricity distribution networks in the Union and ensure close cooperation with transmission system operators and ENTSO for electricity, a European entity of distribution system operators in the Union ("EU DSO entity") should be established. The tasks of the EU DSO entity should be well-defined and its working method should ensure independence, neutrality, efficiency, transparency and representativeness amongst the Union distribution system operators, respecting regional specificities of distribution networks. The EU DSO Entity should closely cooperate with ENTSO for Electricity on the preparation and implementation of the network codes where applicable and should work on providing guidance on the integration inter alia of distributed generation and storage in distribution networks or other areas which relate to the management of distribution networks.
Justification
Distribution networks across Europe vary to a great extent: from voltage level, topology, natural profile of given area to consumption patterns of users. These specificities have to be taken into account in an operation of EU DSO entity.
Amendment    20 Proposal for a regulation Article 1 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a)  setting the basis for an efficient achievement of the objectives of the European Energy Union and in particular the climate and energy framework for 203030 by enabling market signals to be delivered for increased flexibility, decarbonisation and innovation;	(a)  setting the basis for an efficient achievement of the objectives of the European Energy Union and in particular the climate and energy framework for 203030 by enabling market signals to be delivered for increased flexibility, energy efficiency and innovation, also taking account of the role of interconnectors and the growing share of renewables for the transition to a sustainable energy system;
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30 COM/2014/015 final.	30 COM/2014/015 final.
Amendment    21 Proposal for a regulation Article 1 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b)  setting fundamental principles for well-functioning, integrated electricity markets, which allow non-discriminatory market access for all resource providers and electricity customers, empower consumers, enable demand response and energy efficiency, facilitate aggregation of distributed demand and supply, and contribute to the decarbonisation of the economy by enabling market integration and market-based remuneration of electricity generated from renewable sources;	(b)  setting fundamental principles for well-functioning, integrated electricity markets, which allow non-discriminatory market access for all resource providers and electricity customers, empower consumers, enable demand response, energy storage and energy efficiency, facilitate aggregation of distributed demand and supply, promote sufficient levels of electricity interconnections and contribute to the decarbonisation of the economy by enabling market integration and market-based remuneration of electricity generated from renewable sources;
Amendment    22 Proposal for a regulation Article 2 – paragraph 2 – point c
Text proposed by the Commission	Amendment
(c)  ‘congestion’ means a situation in which all requests from market participants to trade between two bidding zones cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows ;	(c)  ‘congestion’ means a situation in which all requests from market participants to trade cannot be accommodated because they would significantly affect the physical flows on network elements which cannot accommodate those flows;
Justification
Original definition would stipulate that congestions may occur only between two bidding zones and not within bidding zone. Amendment is also necessary to align with definition of bidding zone.
Amendment    23 Proposal for a regulation Article 2 – paragraph 2 – point u
Text proposed by the Commission	Amendment
(u)  'capacity mechanism' means an administrative measure to ensure the achievement of the desired level of security of supply by remunerating resources for their availability not including measures relating to ancillary services;	(u)  'capacity mechanism' means an administrative measure to ensure the achievement of the necessary level of security of supply by remunerating resources for their availability not including measures relating to ancillary services, adopted in accordance with this Regulation, with the State aid rules and with the principles of necessity, proportionality and non-discrimination;
Amendment    24 Proposal for a regulation Article 2 – paragraph 2 – point v
Text proposed by the Commission	Amendment
(v)  'strategic reserve' means a capacity mechanism in which resources are only dispatched in case day-ahead and intraday markets have failed to clear, transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply, and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load;	(v)  'strategic reserve' means a capacity mechanism in which resources are held outside the market and are only dispatched in case day-ahead markets have failed to clear, transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply, and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load;
Amendment    25 Proposal for a regulation Article 3 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a)  prices shall be formed based on demand and supply;	(a)  prices shall in general reflect demand and supply;
Amendment    26 Proposal for a regulation Article 3 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b)  actions which prevent price formation on the basis of demand and supply or constitute a disincentive to the development of more flexible generation, low carbon generation, or more flexible demand shall be avoided;	(b)  actions which prevent price formation on the basis of demand and supply shall be avoided unless they aim to establish solidarity and fair distribution of costs and take energy poor consumers sufficiently into account;
Amendment    27 Proposal for a regulation Article 3 – paragraph 1 – point b a (new)
Text proposed by the Commission	Amendment
	(ba)  the development of more flexible generation, low carbon generation and more flexible demand shall be promoted;
Amendment    28 Proposal for a regulation Article 3 – paragraph 1 – point c a (new)
Text proposed by the Commission	Amendment
	(ca)   market players shall be required to assess the risk of detriment that new products and services present to household customers and to tailor their offers accordingly;
Amendment    29 Proposal for a regulation Article 3 – paragraph 1 – point c b (new)
Text proposed by the Commission	Amendment
	(cb)   national regulatory authorities shall monitor the market developments and modify protections as required;
Amendment    30 Proposal for a regulation Article 3 – paragraph 1 – point d
Text proposed by the Commission	Amendment
(d)  market participation of consumers and small businesses shall be enabled by aggregation of generation from multiple generation facilities or load from multiple demand facilities to provide joint offers on the electricity market and be jointly operated in the electricity system, subject to compliance with EU treaty rules on competition;	(d)  market participation of consumers and small businesses shall be enabled individually, collectively, through participation in a local energy community, and encouraged by aggregation of generation from multiple generation facilities or load from multiple demand facilities to provide joint offers on the electricity market and be jointly operated in the electricity system, subject to compliance with EU treaty rules on competition;
Justification
General principles for the EU’s electricity market should provide a basis for acknowledging and encouraging all forms of active participation by consumers, not just through aggregation.
Amendment    31 Proposal for a regulation Article 3 – paragraph 1 – point e
Text proposed by the Commission	Amendment
(e)  market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources and providing incentives for energy efficiency;	(e)  market rules shall support the decarbonisation of the economy by providing incentives for the integration of electricity from renewable energy sources and for energy efficiency;
Amendment    32 Proposal for a regulation Article 3 – paragraph 1 – point f
Text proposed by the Commission	Amendment
(f)  market rules shall deliver appropriate investment incentives for generation, storage, energy efficiency and demand response to meet market needs and thus ensure security of supply;	(f)  market rules shall aim to deliver appropriate investment incentives for generation, in particular long-term investments in low-carbon generation, storage, energy efficiency and demand response to meet market needs and thus ensure security of supply;
Amendment    33 Proposal for a regulation Article 3 – paragraph 1 – point g
Text proposed by the Commission	Amendment
(g)  barriers to cross-border electricity flows and cross-border transactions on electricity markets and related services markets shall be avoided;	(g)  barriers to cross-border electricity flows and cross-border transactions on electricity markets and related services markets shall be removed;
Amendment    34 Proposal for a regulation Article 3 – paragraph 1 – point i
Text proposed by the Commission	Amendment
(i)  all generation, storage and demand resources shall participate on equal footing in the market;	(i)  all generation, storage and demand resources shall participate on equal footing in the market in a way that accounts for the benefits and costs each provide to the environment and the system, their sustainability, and their contributions to the decarbonisation objectives set in the 2015 Paris Agreement and Directive (EU) .../... [Renewable Energy Directive];
Amendment    35 Proposal for a regulation Article 3 – paragraph 1 – point m
Text proposed by the Commission	Amendment
(m)  market rules shall allow for entry and exit of electricity generation and electricity supply undertakings based on their assessment of the economic and financial viability of their operations;	(m)  market rules shall allow for entry and exit of electricity generation, energy storage, and electricity supply undertakings based on their assessment of the economic and financial viability of their operations;
Justification
As storage is defined as a separate activity in the electricity system, storage undertakings need to be able to make market entry or exit decisions on the same basis as other market players.
Amendment    36 Proposal for a regulation Article 3 a (new)
Text proposed by the Commission	Amendment
	Article 3a
	Fair transition
	The Commission shall support Member States that put in place a national strategy for the progressive reduction of installed coal-fired generating and mining capacity through all available means, including targeted financial support to enable a “fair transition” in regions affected by structural change. The Commission shall assist Member States in addressing the social, skills and industrial impact of the clean energy transition. The Commission shall work in close partnership with actors in coal and carbon-intensive regions, provide guidance, in particular with regard to access to and use of available funds and programmes, and encourage exchange of good practices, including discussions on industrial roadmaps and re-skilling needs, through targeted platforms including through the fair transition initiative for workers and communities established in Regulation (EU) .../... [Governance Regulation].
Amendment    37 Proposal for a regulation Article 4 – paragraph 1
Text proposed by the Commission	Amendment
1.  All market participants shall aim for system balance and shall be financially responsible for imbalances they cause in the system. They shall either be balance responsible parties or delegate their responsibility to a balance responsible party of their choice.	1.  All market participants shall aim for system balance and shall be financially responsible for imbalances they cause in the system on condition that all market participants have access to balance and intra-day markets in accordance with Articles 5 and 6. They shall either be balance responsible parties or delegate their responsibility to a balance responsible party of their choice.
Amendment    38 Proposal for a regulation Article 4 – paragraph 2 – introductory part
Text proposed by the Commission	Amendment
2.  Member States may provide for derogation from balance responsibility in respect of:	2.  Member States may, after consulting distribution system operators, provide for a derogation from the financial consequences of balance responsibility in respect of
Amendment    39 Proposal for a regulation Article 4 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a)  demonstration projects;	deleted
Amendment    40 Proposal for a regulation Article 4 – paragraph 2 – point c
Text proposed by the Commission	Amendment
(c)  installations benefitting from support approved by the Commission under Union State aid rules pursuant to Articles 107, 108 to 109 TFEU, and commissioned prior to [OP: entry into force]. Member States may, subject to Union state aid rules, incentivize market participants which are fully or partly exempted from balancing responsibility to accept full balancing responsibility against appropriate compensation.	(c)  installations benefitting from support approved by the Commission under Union State aid rules pursuant to Articles 107, 108 and 109 TFEU, and commissioned before [OP: entry into force]. Member States may, subject to Union state aid rules, provide incentives to market participants which have a full or partial exempting relating to the financial consequences of balance responsibility to accept full balance responsibility against appropriate compensation.
Amendment    41 Proposal for a regulation Article 5 – paragraph 1
Text proposed by the Commission	Amendment
1.  All market participants shall have access to the balancing market, be it individually or through aggregation. Balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies.	1.  All market participants shall have full access to the balancing market, be it individually or through aggregation. Balancing market rules and products shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies.
Amendment    42 Proposal for a regulation Article 5 – paragraph 2
Text proposed by the Commission	Amendment
2.  Balancing markets shall be organised in such a way as to ensure effective non-discrimination between market participants taking account of the different technical capability of generation from variable renewable sources and demand side response and storage.	2.  Balancing markets shall be organised in such a way as to ensure effective non-discrimination between market participants. Balancing markets shall be designed to allow for maximum participation of renewables sources, including in particular small decentralised and distributed generation. Balancing market rules shall ensure that energy communities have a proportionate and simple access to the market.
Amendment    43 Proposal for a regulation Article 5 – paragraph 7
Text proposed by the Commission	Amendment
7.  The sizing of reserve capacity shall be performed at regional level in accordance with point 7 of Annex I. Regional operational centres shall support transmission system operators in determining the amount of balancing capacity that needs to be procured in accordance with point 8 of Annex I.	7.  The sizing of reserve capacity shall be performed at regional level in accordance with point 7 of Annex I. Regional coordination centres shall support transmission system operators in determining the amount of balancing capacity that needs to be procured in accordance with point 8 of Annex I.
Amendment    44 Proposal for a regulation Article 5 – paragraph 8
Text proposed by the Commission	Amendment
8.  The procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of Annex I. The procurement shall be based on a primary market and organised in such a way as to be non-discriminatory between market participants in the prequalification process individually or through aggregation.	8.  The procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of Annex I. The procurement shall be based on a primary market and be non-discriminatory between market participants in the prequalification process including in particular where participation takes place individually or through aggregation.
Amendment    45 Proposal for a regulation Article 5 – paragraph 9
Text proposed by the Commission	Amendment
9.  The procurement of upward balancing capacity and downward balancing capacity shall be carried out separately. The contracting shall be performed for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum of one day.	9.  The procurement of upward balancing capacity and downward balancing capacity shall be carried out separately. The contracting shall be performed for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum of one day. In accordance with Article 34(6) and Article 36(10) of the balancing guidelines, each transmission system operator may submit a proposal to the competent regulatory authority requesting the exemption to the procurement rules according to this paragraph.
	Those requests for exemption shall include:
	(a)  specification of the time period during which the exemption would apply;
	(b)  specification of the volume of balancing capacity for which the exemption would apply;
	(c)  analysis of the impact of such an exemption on the participation of balancing resources; and
	(d)  justification for the exemption demonstrating that such an exemption would lead to higher economic efficiency.
Amendment    46 Proposal for a regulation Article 6 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a)  be organised in such a way as to be non-discriminatory;	(a)  be non-discriminatory;
Justification
The principle of non-discrimination in day-ahead and intraday markets should have legal effect without any additional action from Member States.
Amendment    47 Proposal for a regulation Article 7 – paragraph 3
Text proposed by the Commission	Amendment
3.  Market operators shall provide products for trading in day-ahead and intraday markets which are sufficiently small in size, with minimum bid sizes of 1 Megawatt or less, to allow for the effective participation of demand-side response, energy storage and small-scale renewables.	3.  Market operators shall provide products for trading in day-ahead and intraday markets which are sufficiently small in size, with minimum bid sizes of 1 Megawatt or less, to allow for the effective participation of demand-side response, energy storage and small-scale renewables, including for energy communities through proportionate and simple access.
Amendment    48 Proposal for a regulation Article 9 – paragraph 1
Text proposed by the Commission	Amendment
1.  There shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with Article 10. There shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 € or less and, in the event that it is or anticipated to be reached, set at a lower value for the following day. This provision shall apply, inter alia, to bidding and clearing in all timeframes and include balancing energy and imbalance prices.	1.  There shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with Article 10. In strongly interconnected markets, those maximum limits shall be set at the same level among all bidding zones and markets to avoid market distortions. There shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 € or less and, in the event that it is or anticipated to be reached, set at a lower value for the following day. This provision shall apply, inter alia, to bidding and clearing in all timeframes and include balancing energy and imbalance prices.
Justification
In strongly interconnected markets a uniform technical price limit should be ensured. Without such uniform limits, inefficiencies could occur at times of scarcity as market participants would be artificially constrained in cross-border competition for energy by differences in the ability to price bids.
Amendment    49 Proposal for a regulation Article 11 – paragraph 2
Text proposed by the Commission	Amendment
2.  When dispatching electricity generating installations, transmission system operators shall give priority to generating installations using renewable energy sources or high-efficiency cogeneration from small generating installations or generating installations using emerging technologies to the following extent:	2.  When dispatching electricity generating installations, transmission and distribution system operators shall give priority to generating and storage installations using renewable energy sources or high-efficiency cogeneration from small generating installations or generating installations using emerging technologies to the following extent:
(a)  generating installations using renewable energy sources or high-efficiency cogeneration with an installed electricity capacity of less than 500 kW; or	(a)  generating installations using renewable energy sources or high-efficiency cogeneration with an installed electricity capacity of less than 500 kW; or
(b)  demonstration projects for innovative technologies.	(b)  demonstration projects for innovative technologies.
Amendment    50 Proposal for a regulation Article 11 – paragraph 4
Text proposed by the Commission	Amendment
4.  Generating installations using renewable energy sources or high-efficiency cogeneration which have been commissioned prior to [OP: entry into force] and have, when commissioned, been subject to priority dispatch under Article 15(5) of Directive 2012/27/EU of the European Parliament and of the Council or Article 16(2) of Directive 2009/28/EC of the European Parliament and of the Council 1 shall remain subject to priority dispatch. Priority dispatch shall no longer be applicable from the date where the generating installation is subject to significant modifications, which shall be the case at least where a new connection agreement is required or the generation capacity is increased.	4.  In order to maintain a stable regulatory framework for investors, generating or storage installations using renewable energy sources or high-efficiency cogeneration which have been commissioned prior to [OP: entry into force] and have, when commissioned, been subject to priority dispatch under Article 15(5) of Directive 2012/27/EU of the European Parliament and of the Council or Article 16(2) of Directive 2009/28/EC of the European Parliament and of the Council 1 shall remain subject to priority dispatch. Priority dispatch shall no longer be applicable from the date where the generating or storage installation is subject to significant modifications, which shall be the case at least where a new connection agreement is required or the generation or storage capacity is increased.
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1.  Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).	1.  Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).
Amendment    51 Proposal for a regulation Article 11 – paragraph 4 – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	Member States may, subject to Union State aid rules, provide market participants with incentives, which are subject to priority access to opt out of priority dispatch against appropriate compensation.
Amendment    52 Proposal for a regulation Article 11 – paragraph 4 a (new)
Text proposed by the Commission	Amendment
	4a.  Member States shall comply with the provisions of this article through the reporting process on the internal energy market as provided in Article [21] of Regulation (EU) .../... [Governance Regulation].
	Prior to the removal of priority dispatch as per paragraphs 2 and 3, Member States shall, in particular, ensure that all markets are fully opened, including all ancillary services, to the participation of renewable energy sources, that dispatching rules are fully transparent and market-based, a transparent methodology related to the curtailment rules has been established and that the removal of priority dispatch for generating installations using renewable energy sources would not undermine their contribution to:
	(a)  the EU target for 2030, as provided in the Directive on the promotion of the use of energy from renewable sources;
	(b)  the reduction of the overall greenhouse gas emissions of the Union by at least 40% below 1990 levels by 2030, as provided in the intended nationally determined reduction commitment of the Union and its Member States submitted to the Secretariat of the United Nations Framework Convention on Climate Change.
Amendment    53 Proposal for a regulation Article 12 – paragraph 2
Text proposed by the Commission	Amendment
2.  The resources curtailed or redispatched shall be selected amongst generation or demand facilities submitting offers for curtailment or redispatching using market-based mechanisms and be financially compensated. Non-market-based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market-based alternative is available, where all available market-based resources have been used, or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition. The provision of market-based resources shall be open to all generation technologies, storage and demand response, including operators located in other Member States unless technically not feasible.	2.  The resources curtailed or redispatched shall be selected amongst generation, storage or demand facilities submitting offers for curtailment or redispatching using market-based mechanisms and be fully financially compensated. Participation in market-based mechanisms shall be voluntary for all market participants, including in particular small decentralised and distributed generation. Non-market-based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market-based alternative is available where all available market-based resources have been used, or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition. The provision of market-based resources shall be open to all generation technologies, storage and demand response, including operators located in other Member States unless technically not feasible.
Amendment    54 Proposal for a regulation Article 12 – paragraph 3
Text proposed by the Commission	Amendment
3.  The responsible system operators shall report at least once per year to the competent regulatory authority on curtailment or downward redispatching of generating installations using renewable energy sources or high-efficiency cogeneration and on measures taken to reduce the need for such curtailment or downward redispatching in the future. Curtailment or redispatching of generating installations using renewable energy sources or high-efficiency cogeneration shall be subject to compensation pursuant to paragraph 6.	3.  The responsible system operators shall report at least once per year to the competent regulatory authority and ACER
	-  on the level of development and effectiveness of market-based curtailment or redispatching of generating, energy storage or demand-response installations;
	-  on the reasons, volumes and types of technologies subject to curtailment or downward redispatching of generating installations using renewable energy sources or high-efficiency cogeneration;
	-  on measures taken to reduce the need of curtailment or downwards dispatching; and
	-  on requests and contractual arrangements made with generating units for them to operate at a certain level of electricity infeed; system operators shall justify the necessity of such arrangements, and in what extent these services could not be provided by other resources; setting out whether this was in line with the least cost delivery of Union-wide targets.
	Regulators shall assess market interest at annually.
	Curtailment or redispatching of generating or storage installations using renewable energy sources or high-efficiency cogeneration shall be subject to compensation pursuant to paragraph 6.
Amendment    55 Proposal for a regulation Article 12 – paragraph 4 – point a
Text proposed by the Commission	Amendment
(a)  guarantee the capability of transmission and distribution networks to transmit electricity produced from renewable energy sources or high-efficiency cogeneration with minimum possible curtailment or redispatching. That shall not prevent network planning from taking into account limited curtailment or redispatching where this is shown to be more economically efficient and does not exceed 5 % of installed capacities using renewable energy sources or high-efficiency cogeneration in their area;	(a)  guarantee the capability of transmission and distribution networks to transmit electricity produced or stored from renewable energy sources or high-efficiency cogeneration with minimum possible curtailment or redispatching. That shall not prevent network planning from taking into account limited curtailment or redispatching where this is shown to be more economically efficient and does not exceed 5 % of installed or stored capacities using renewable energy sources, demand response or high-efficiency cogeneration at the connection point, provided that an appropriate consultation of stakeholders is carried out before its approval;
Amendment    56 Proposal for a regulation Article 12 – paragraph 4 – point b
Text proposed by the Commission	Amendment
(b)  take appropriate grid and market-related operational measures in order to minimise the curtailment or downward redispatching of electricity produced from renewable energy sources or high-efficiency cogeneration.	(b)  ensure that their networks are sufficiently flexible such that they are in a position to manage their networks as set out in Article [51] of Directive .../... [Electricity Directive].
Amendment    57 Proposal for a regulation Article 12 – paragraph 4 – point b a (new)
Text proposed by the Commission	Amendment
	(ba)  take appropriate grid and market-related operational measures in order to efficiently accommodate all electricity produced from renewable energy sources or high-efficiency cogeneration and minimise their curtailment or downward redispatching.
Amendment    58 Proposal for a regulation Article 12 – paragraph 5 – point b
Text proposed by the Commission	Amendment
(b)  generating installations using high-efficiency cogeneration shall only be subject to downward redispatching or curtailment if, other than curtailment or downward redispatching of generating installations using renewable energy sources, no other alternative exists or if other solutions would result in disproportionate costs or risks to network security;	(b)  generating installations using high-efficiency cogeneration and, in particular, where:
	(i)  the primary purpose of those generating installations is to produce heat for production processes of the industrial site concerned;
	(ii)  heat and power-generating is inextricably interlinked, in a way that any change of heat generation results inadvertently in a change of active power generating and vice versa;
	shall be subject to downward redispatching or curtailment only if, other than curtailment or downward redispatching of generating installations using renewable energy sources, no other alternative exists or if other solutions would result in disproportionate costs or risks to network security;
Amendment    59 Proposal for a regulation Article 12 – paragraph 5 – point c
Text proposed by the Commission	Amendment
(c)  self-generated electricity from generating installations using renewable energy sources or high-efficiency cogeneration which is not fed into the transmission or distribution network shall not be curtailed unless no other solution would resolve network security issues;	(c)  self-generated electricity from generating installations using renewable energy sources or high-efficiency cogeneration which is primarily intended for self-consumption shall not be curtailed unless no alternative exists or if other solutions would result in disproportionate risks to network security;
Amendment    60 Proposal for a regulation Article 12 – paragraph 5 – point d
Text proposed by the Commission	Amendment
(d)  downward redispatching or curtailment under letters a to c shall be duly and transparently justified. The justification shall be included in the report under paragraph 3.	(d)  downward redispatching or curtailment under points a to c above shall be duly and transparently justified. The justification shall be included in the report under paragraph 3.
Amendment    61 Proposal for a regulation Article 12 – paragraph 6
Text proposed by the Commission	Amendment
6.  Where non-market based curtailment or redispatching is used, it shall be subject to financial compensation by the system operator requesting the curtailment or redispatching to the owner of the curtailed or redispatched generation or demand facility. Financial compensation shall at least be equal to the highest of the following elements:	6.  Where non-market based curtailment or redispatching is used, it shall be subject to financial compensation by the system operator requesting the curtailment or redispatching to the owner of the curtailed or redispatched generation, energy storage or demand facility. Financial compensation shall at least be equal to the highest of the following elements:
(a)  additional operating cost caused by the curtailment or redispatching, such as additional fuel costs in case of upward redispatching, or backup heat provision in case of downward redispatching or curtailment of generating installations using high efficiency cogeneration;	(a)  additional operating cost caused by the curtailment or redispatching, such as additional fuel costs in case of upward redispatching, or backup heat provision in case of downward redispatching or curtailment of generating installations using high efficiency cogeneration;
(b)  90 % of the net revenues from the sale of electricity on the day-ahead market that the generating or demand facility would have generated without the curtailment or redispatching request. Where financial support is granted to generating or demand facilities based on the electricity volume generated or consumed, lost financial support shall be deemed part of the net revenues.	(b)  100 % of the net revenues from the sale of electricity on the day-ahead market that the generating, energy storage or demand facility would have generated without the curtailment or redispatching request. Where financial support is granted to generating or demand facilities based on the electricity volume generated or consumed, lost financial support shall be deemed part of the net revenues. The full compensation shall be settled within a reasonable timeframe after the curtailment has occurred.
Amendment    62 Proposal for a regulation Article 12 – paragraph 6 a (new)
Text proposed by the Commission	Amendment
	6a.  Member States shall ensure that the information reported under paragraph 3 is reflected through the national reporting process on the internal energy market, as provided for in Article [21] of Regulation .../... [Governance Regulation].
Justification
Reporting procedures should be streamline under the Governance regulation to reduce administrative burden.
Amendment    63 Proposal for a regulation Article 12 – paragraph 6 b (new)
Text proposed by the Commission	Amendment
	6b.  Where applicable, transmission system operators of different Member States shall agree on a fair repartition of the costs of cross-border redispatching and counter-trading.
Justification
The provisions of this Article shall also include arrangements for cross-border redispatching and counter-trading across national borders and this logically follow from earlier paragraphs of this Article.
Amendment    64 Proposal for a regulation Article 14 – paragraph 1
Text proposed by the Commission	Amendment
1.  Network congestion problems shall be addressed with non-discriminatory market-based solutions which give efficient economic signals to the market participants and transmission system operators involved. Network congestion problems shall be solved with non-transaction based methods, i.e. methods that do not involve a selection between the contracts of individual market participants. When taking operational measures to ensure that its transmission system remains in the normal state, the transmission system operator shall take into account the effect of those measures on neighbouring control areas and coordinate such measures with other affected transmission system operators as provided for in Regulation (EU) 1222/2015.	1.  Network congestion problems shall be addressed with non-discriminatory market-based solutions including energy efficiency and demand-side management solutions which give efficient economic signals to the market participants and transmission system operators involved. Network congestion problems shall be solved with non-transaction based methods, i.e. methods that do not involve a selection between the contracts of individual market participants. When taking operational measures to ensure that its transmission system remains in the normal state, the transmission system operator shall take into account the effect of those measures on neighbouring control areas and coordinate such measures with other affected transmission system operators as provided for in Regulation (EU) No 1222/2015.
Justification
In line with the provisions on energy efficiency and demand response of Articles 3 (1 e,f), 16 (2,8), 18 (3), 19 (4b), 25 (2) and 55 (1,l), the logic of the regulation has to be also applied to congestion management.
Amendment    65 Proposal for a regulation Article 14 – paragraph 3
Text proposed by the Commission	Amendment
3.  The maximum capacity of the interconnections and/or the transmission networks affecting cross-border flows shall be made available to market participants, complying with safety standards of secure network operation. Counter-trading and redispatch, including cross-border redispatch, shall be used to maximise available capacities unless it is demonstrated that it is not beneficial to economic efficiency at Union level.	3.  The maximum capacity of the interconnections and/or the transmission networks affecting cross-border flows shall be made available to market participants, complying with safety standards of secure network operation. Counter-trading and redispatch, including cross-border redispatch, shall be used to guarantee the firmness of the exchange scheduled in case of reductions of the available net transfer capacity due to system security reasons.
Amendment    66 Proposal for a regulation Article 16 – paragraph 1
Text proposed by the Commission	Amendment
1.  Charges applied by network operators for access to networks, including charges for connection to the networks, charges for use of networks, and, where applicable, charges for related network reinforcements, shall be transparent, take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non-discriminatory manner. In particular, they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level, either positively or negatively. They shall not discriminate against energy storage and shall not create disincentives for participation in demand response	1.  Charges applied by network operators for access to networks, including charges for connection to the networks, charges for use of networks, and, where applicable, charges for related network reinforcements, shall be transparent, take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non-discriminatory manner. In particular, they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level, either positively or negatively. They shall not discriminate against energy storage, specifically not double charging energy storage, and aggregation and shall not create disincentives for self-generation, self-consumption, nor for participation in demand response. Without prejudice to paragraph 3, those charges shall not be distance-related.
Amendment    67 Proposal for a regulation Article 16 – paragraph 2
Text proposed by the Commission	Amendment
2.  Tariffs shall grant appropriate incentives to transmission and distribution system operators, over both the short and long term, to increase efficiencies, including energy efficiency, foster market integration and security of supply, and support investments and the related research activities.	2.  Tariffs shall grant appropriate incentives to transmission and distribution system operators, over both the short and long term, to increase efficiencies, including energy efficiency foster market integration, including for renewable sources and energy storage facilities, and security of supply, and support investments and the related research activities
Amendment    68 Proposal for a regulation Article 16 – paragraph 7
Text proposed by the Commission	Amendment
7.  Distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers, and may be differentiated based on system users' consumption or generation profiles. Where Member States have implemented the deployment of smart metering systems, regulatory authorities may introduce time differentiated network tariffs, reflecting the use of the network, in a transparent and foreseeable way for the consumer.	7.  Distribution tariffs shall reflect the cost and benefits of access to and use of the distribution network by system users including active customers, and may be differentiated based on system users' consumption, storage or generation profiles. Where Member States have implemented the deployment of smart metering systems, regulatory authorities may introduce time differentiated network tariffs, reflecting the use of the network, in a transparent and foreseeable way for the consumer
Amendment    69 Proposal for a regulation Article 16 – paragraph 8
Text proposed by the Commission	Amendment
8.  Regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems. For that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies, including energy efficiency, in their networks.	8.  Regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems. For that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies, including energy efficiency, and flexibility in their networks and promote the integration of energy from renewable sources and energy storage.
Amendment    70 Proposal for a regulation Article 16 – paragraph 9 – point d a (new)
Text proposed by the Commission	Amendment
	(da)  the removal of incentives which are detrimental to energy efficiency and demand-side management;
Amendment    71 Proposal for a regulation Article 16 – paragraph 9 – point f a (new)
Text proposed by the Commission	Amendment
	(fa)  methods to calculate the benefits of self-consumption, decentralised generation, storage and demand response, as well as their complementarity;
Amendment    72 Proposal for a regulation Article 17 – paragraph 2
Text proposed by the Commission	Amendment
2.  Any revenues resulting from the allocation of interconnection capacity shall be used for the following purposes:	2.  Revenues resulting from the allocation of interconnection capacity shall be used for the following purposes:
Justification
The changes in the first part of letter (b) are needed in order to reflect the rest of the text. It is not possible to dissociate the different parts of this article.
Amendment    73 Proposal for a regulation Article 17 – paragraph 2 – point b
Text proposed by the Commission	Amendment
(b)  maintaining or increasing interconnection capacities through network investments, in particular in new interconnectors.	(b)  maintaining or increasing interconnection capacities through network investments, in particular in new interconnectors and internal lines which are listed in the Ten Years Network Development Plan of ENTSOE as being relevant to reduce interconnector congestion, as well as cross-border remedial actions such as redispatching and counter-trading.
If the revenues cannot be efficiently used for the purposes set out in points (a) and/or (b) of the first subparagraph, they shall be placed on a separate internal account line for future use on these purposes.	If the revenues cannot be efficiently used for the purposes set out in points (a) or (b) of the first subparagraph, as a residual option, they may be used, subject to approval by the regulatory authorities of the Member States concerned, up to a maximum amount to be decided by those regulatory authorities, as income to be taken into account by the regulatory authorities when approving the methodology for calculating network tariffs and/or fixing network tariffs. Regulatory authorities may only approve this option in cases where the transmission system operator takes a commitment decision to undertake all interconnector projects that have a positive net benefit and has a balance sheet that is sufficient to finance these investments. The rest of revenues shall be placed on a separate internal account line until such time as it can be spent on the purposes set out in points (a) and/or (b) of the first subparagraph. The regulatory authority shall inform the Agency of the approval referred to in the second subparagraph.
Justification
The changes in the first part of letter (b) are needed in order to reflect the rest of the text. It is not possible to dissociate the different parts of this article.
Amendment    74 Proposal for a regulation Article 17 – paragraph 3
Text proposed by the Commission	Amendment
3.  The use of revenues in accordance with points (a) and (b) of paragraph 2 shall be subject to a methodology proposed by the Agency and approved by the Commission. The Agency's proposal shall be submitted to the Commission by [OP: 12 months after entry into force] and be approved within six months.	deleted
The Agency may, at its own initiative or upon a request from the Commission update the methodology and the Commission shall approve the updated methodology not later than six months from its submission.
Before submission to the Commission, the Agency shall consult on the methodology pursuant to Article 15 [recast of Regulation (EC) No 713/2009 as proposed by COM(2016) 863/2].
The methodology shall detail as a minimum the conditions under which the revenues can be used for points (a) and (b) of paragraph 2 and the conditions under which, and for how long, they may be placed on a separate internal account line for future use on those purposes.
Amendment    75 Proposal for a regulation Article 17 – paragraph 4
Text proposed by the Commission	Amendment
4.  Transmission system operators shall clearly establish beforehand how any congestion income will be used, and report on the actual use of that income. On an annual basis, and by 31 July each year, the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12-month period ending on 30 June of the same year and how that revenue was used, including the specific projects the income has been used for or the amount placed on a separate account line, together with verification that that use complies with this Regulation and the methodology developed pursuant to paragraph 3.	deleted
Amendment    76 Proposal for a regulation Article 18 – paragraph 1
Text proposed by the Commission	Amendment
1.  Member States shall monitor resource adequacy within their territory based on the European resource adequacy assessment pursuant to Article 19.	1.  Member States shall monitor and report on resource adequacy within their territory based on the European resource adequacy assessment pursuant to Article 19 and on a national and regional assessment where appropriate.
Amendment    77 Proposal for a regulation Article 18 – paragraph 2
Text proposed by the Commission	Amendment
2.  Where the European resource adequacy assessment identifies a resource adequacy concern Member States shall identify any regulatory distortions that caused or contributed to the emergence of the concern.	2.  Where the European resource adequacy assessment identifies a resource adequacy concern Member States shall identify any regulatory distortions and market failures that caused or contributed to the emergence of the concern.
Amendment    78 Proposal for a regulation Article 18 – paragraph 3
Text proposed by the Commission	Amendment
3.  Member States shall publish a timeline for adopting measures to eliminate any identified regulatory distortions. When addressing resource adequacy concerns Member States shall in particular consider removing regulatory distortions, enabling scarcity pricing, developing interconnection, energy storage, demand side measures and energy efficiency.	3.  Member States shall publish a timeline and an implementation plan for adopting measures to eliminate any identified regulatory distortions and actions to address market failures. When addressing resource adequacy concerns Member States shall in particular consider removing regulatory distortions, enabling scarcity pricing, developing interconnection, energy storage, demand side measures and energy efficiency.
Amendment    79 Proposal for a regulation Article 18 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a.  Member States shall set indicators to report on the effectiveness of the measures adopted pursuant to paragraph 3, and shall accordingly review any capacity mechanism put in place pursuant to Article 23.
Amendment    80 Proposal for a regulation Article 19 – paragraph 4
Text proposed by the Commission	Amendment
4.  The European resource adequacy assessment shall be based on a methodology which shall ensure that the assessment:	4.  The European resource adequacy assessment shall be based on a methodology which shall ensure that the assessment:
(a)  is carried out on bidding zone level covering at least all Member States;	(a)  is carried out on bidding zone level covering at least all Member States;
(b)  is based on appropriate scenarios of projected demand and supply including an economic assessment of the likelihood of retirement, new-build of generation assets and measures to reach energy efficiency targets and appropriate sensitivities on wholesale prices and carbon price developments;	(b)  is based on appropriate scenarios of projected demand and supply including an economic assessment of the likelihood of retirement, moth-balling, new-build of generation assets and measures to reach energy efficiency and electricity interconnection targets and appropriate sensitivities on wholesale prices and carbon price developments;
(c)  appropriately takes account of the contribution of all resources including existing and future generation, energy storage, demand response, and import and export possibilities and their contribution to flexible system operation;	(c)  appropriately takes account of the contribution of all resources including existing and future generation, energy storage, demand response, and import and export possibilities and their contribution to flexible system operation;
(d)  anticipates the likely impact of the measures referred in Article 18(3);	(d)  anticipates the likely impact of the measures referred in Article 18(3);
(e)  includes scenarios without existing or planned capacity mechanisms;	(e)  includes scenarios without existing or planned capacity mechanisms;
(f)   is based on a market model using, where applicable, the flow-based approach;	(f)  is based on a market model using, where applicable, the flow-based approach;
(g)  applies probabilistic calculations;	(g)  applies probabilistic calculations;
(h)  applies at least the following indicators:	(h)  applies at least the following indicators:
–  "expected energy not served", and	–  "expected energy not served", and
–  "loss of load expectation";	–  "loss of load expectation";
(i)  identifies the sources of possible resource adequacy concerns, in particular whether it is a network or a resource constraint, or both.	(i)  identifies the sources of possible resource adequacy concerns, in particular whether it is a network or a resource constraint, or both.
Amendment    81 Proposal for a regulation Article 19 – paragraph 6
Text proposed by the Commission	Amendment
6.  The proposals under paragraphs 2 and 5 and the results of the European resource adequacy assessment under paragraph 3 shall be subject to prior consultation and approval by the Agency under the procedure set out in Article 22.	6.  The proposals under paragraphs 2 and 5, the scenarios and assumptions on which they are based, and the results of the European resource adequacy assessment under paragraph 3 shall be subject to prior consultation of all affected stakeholders and approval by the Agency under the procedure set out in Article 22.
Amendment    82 Proposal for a regulation Article 20 – paragraph 1
Text proposed by the Commission	Amendment
1.  When applying capacity mechanisms Member States shall have a reliability standard in place indicating their desired level of security of supply in a transparent manner.	1.  When applying capacity mechanisms Member States shall have a reliability standard in place, that shall indicate the necessary level of security of supply, based on a transparent, objective, verifiable and thorough cost-benefit analysis.
Amendment    83 Proposal for a regulation Article 20 – paragraph 2
Text proposed by the Commission	Amendment
2.  The reliability standard shall be set by the national regulatory authority based on the methodology pursuant to Article 19(5).	2.  The reliability standard shall be set by the national regulatory authority based on the methodology pursuant to Article 19(5), taking into account the principles of necessity and proportionality and the need to avoid the negative impacts of environmentally harmful subsidies and unnecessary market distortions, including overcapacity.
Amendment    84 Proposal for a regulation Article 21 – paragraph 6
Text proposed by the Commission	Amendment
6.  Regional operational centres established pursuant to Article 32 shall annually calculate the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located. A calculation is required for each bidding zone border.	6.  Where capacity mechanisms are applied, transmission system operators shall assist relevant regulatory authorities in calculating the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located. A calculation is required for each bidding zone border.
Amendment    85 Proposal for a regulation Article 23 – paragraph 1
Text proposed by the Commission	Amendment
1.  To address residual concerns that cannot be eliminated by the measures pursuant to Article 18(3), Member States may introduce capacity mechanisms, subject to the provisions of this Article and to the Union State aid rules.	1.  To address residual concerns that cannot be eliminated by the measures pursuant to Article 18(3), Member States shall prepare a plan providing for appropriate measures to address the said concerns, to be implemented within a maximum period of five years.
Amendment    86 Proposal for a regulation Article 23 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a.  The plan under paragraph 1 shall aim to ensure resource adequacy without additional recourse to capacity mechanisms, via one or more of the following:
	(a)  additional renewable energy generation capacity;
	(b)  energy efficiency;
	(c)  demand-side response;
	(d)  storage;
	(e)  interconnection.
Amendment    87 Proposal for a regulation Article 23 – paragraph 1 b (new)
Text proposed by the Commission	Amendment
	1b.  Pending the implementation of the plan under paragraph 1, Member States may introduce capacity mechanisms, if deemed necessary on the basis of an impact assessment and subject to the provisions of this Article and to the Union State aid rules.
Amendment    88 Proposal for a regulation Article 23 – paragraph 2
Text proposed by the Commission	Amendment
2.  Where a Member State wishes to implement a capacity mechanism, it shall consult on the proposed mechanism at least with its electrically connected neighbouring Member States.	2.  Where a Member State wishes to implement a capacity mechanism, it shall consult on the proposed mechanism with all interested parties, including with its electrically connected neighbouring Member States.
Amendment    89 Proposal for a regulation Article 23 – paragraph 3
Text proposed by the Commission	Amendment
3.  Capacity mechanisms shall not create unnecessary market distortions and not limit cross-border trade. The amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern.	3.  Capacity mechanisms shall not create unnecessary market distortions, particularly by discriminating against renewable energy sources, discouraging recourse to flexible consumption and energy efficiency, or raising costs for consumers. They shall not limit cross-border trade. The duration of, and the amount of capacity committed in, the mechanism shall not go beyond what is necessary to address the concern.
Amendment    90 Proposal for a regulation Article 23 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a.  Generation capacity providers shall be selected on the basis of transparent criteria, including flexibility criteria. Such criteria shall aim at maximising the ramping ability, and minimising the necessary level of stable output of power plants benefitting from capacity mechanisms.
Amendment    91 Proposal for a regulation Article 23 – paragraph 4
Text proposed by the Commission	Amendment
4.  Generation capacity for which a final investment decision has been made after [OP: entry into force] shall only be eligible to participate in a capacity mechanism if its emissions are below 550 gr CO2/kWh. Generation capacity emitting 550 gr CO2/kWh or more shall not be committed in capacity mechanisms 5 years after the entry into force of this Regulation.	4.  Generation capacity for which a final investment decision has been made after [OP: entry into force] shall only be eligible to participate in a capacity mechanism if its emissions are below 550gr CO2/kWh. Generation capacity emitting 550 gr CO2/kWh or more shall not be committed in capacity mechanisms 2 years after the entry into force of this Regulation, or five years for those plants that are part of strategic reserves.
Amendment    92 Proposal for a regulation Article 23 – paragraph 4 a (new)
Text proposed by the Commission	Amendment
	4a.  The CO2 emission factor of an electricity generation installation shall be based on the net efficiency at nominal capacity under ISO conditions.
Amendment    93 Proposal for a regulation Article 23 – paragraph 5
Text proposed by the Commission	Amendment
5.  Where the European resource adequacy assessment has not identified a resource adequacy concern, Member States shall not apply capacity mechanisms.	5.  Where a Member State wishes to implement capacity mechanism, it must explain its consistency with the European resource adequacy assessment, especially regarding the justification, scope, start and termination, and multi-year implementation.
Amendment    94 Proposal for a regulation Article 23 – paragraph 5 a (new)
Text proposed by the Commission	Amendment
	5a.  When designing capacity mechanisms, Member States shall include an exit clause, a provision allowing for efficient phase-out of capacity mechanism in case the resource adequacy assessment proves that the adequacy concern is not present anymore.
Amendment    95 Proposal for a regulation Article 23 a (new)
Text proposed by the Commission	Amendment
	Article 23a
	Electricity Market Design Advisory Board
	By ...[12 months after the entry into force of this Regulation] an Electricity Market Design Advisory Board shall be established. The Advisory Board shall be consisting of high-level experts of the Member States and a relevant and balanced group of experts from the energy sector, including utilities, investors, technology providers, network operators, climate protection groups, consumer representatives and representatives of local energy communities.
	The Advisory Board shall provide the Commission with expertise and insight, and thus advise and assist the Commission in the preparation of future policy initiatives related to the European energy market design. It shall do so by formulating opinions, recommendations or reports, where appropriate.
	Within 24 months after the establishment of the Advisory Board, the Commission shall draw its conclusions from the discussion by means of a Communication laying out the strategic priorities for a European electricity market capable of driving the investments needed for a sustainable, secure and affordable energy transition.
Justification
The EU is moving towards an energy system which produces energy at low marginal cost, but which requires high upfront investments. The current electricity market remunerating energy only at the marginal costs does not reflect this shift. Market based remuneration remains a challenge. Shifting the fundamentals about how the EU produces and uses energy to build a low-carbon future requires a thorough reflection about the energy market design.
Amendment    96 Proposal for a regulation Article 24 – paragraph 1
Text proposed by the Commission	Amendment
Member States applying capacity mechanisms on [OP: entry into force of this Regulation] shall adapt their mechanisms to comply with Articles 18, 21 and 23 of this Regulation.	Member States applying capacity mechanisms on [OP: entry into force of this Regulation] shall adapt their mechanisms to comply with Articles 18, 21 and 23 of this Regulation by ... [two years after the date of entry into force of this Regulation].
Justification
In line with the goal of creating internal (wholesale) electricity market in Europe, for which uniform national market design is needed.
Amendment    97 Proposal for a regulation Article 24 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	Member States and regions that decide - independently from or as a consequence of harmonised rules of capacity mechanisms - to actively phase-out coal fired electricity generation, shall be provided with a long-term enabling framework for a just transition towards a sustainable and flexible electricity system. The managed and planned retirement of coal-fired capacity would help to improve the functioning of the electricity system in addition to reaching Union climate and environmental objectives, for example on CO2 emissions and clean air.
Justification
Decarbonisation needs to be inclusive, just and agreed by all stakeholders and consider societal, economic and environmental impacts, as well as sustainable labour alternatives, especially when the phase-out is linked to the closure of mining activities. A preparatory action on the establishment of a coal platform dialogue to discuss aspects of governance, just transition and decommissioning is about to start and EU Electricity Market rules should be in line with those activities.
Amendment    98 Proposal for a regulation Article 25 – paragraph 2
Text proposed by the Commission	Amendment
2.  In performing its functions under EU law, the ENTSO for Electricity shall act for the European good and independent from individual national interests or the national interests of transmission system operators, and shall contribute to the efficient and sustainable achievement of the objectives set out in the policy framework for climate and energy covering the period from 2020 to 2030, in particular by contributing to the efficient integration of electricity generated from renewable energy sources and to increases in energy efficiency.	2.  In performing its functions under EU law, the ENTSO for Electricity shall act for the European good and independent from individual national interests or the national interests of transmission system operators, and shall contribute to the efficient and sustainable achievement of the objectives set out in the policy framework for climate and energy covering the period from 2020 to 2030, in particular by contributing to the efficient integration of electricity generated from renewable energy sources in combination with energy storage and demand response and to increases in energy efficiency.
Amendment    99 Proposal for a regulation Article 32 – paragraph 1
Text proposed by the Commission	Amendment
1.  By [OP: twelve months after entry into force], all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter. Regional operational centres shall be established in the territory of one of the Member States of the region where it will operate.	1.  By [OP: twelve months after entry into force], all transmission system operators of a system operation region shall submit to the regulatory authorities of the region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter.
	That proposal shall include the following information:
	(a)  the Member State where the regional coordination centre is to be located;
	(b)  the organisational, financial and operational arrangements necessary to ensure the efficient, secure and reliable operation of the interconnected transmission system;
	(c)  an implementation plan for the entry into operation of the regional coordination centres;
	(d)  the statutes and rules of procedure of regional coordination centres;
	(e)  a description of cooperative processes in accordance with Article 35;
	(f)  a description of the arrangements concerning the liability of regional coordination centres in accordance with Article 44.
Amendment    100 Proposal for a regulation Article 32 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a.  The effective operation of the transmission system shall be the responsibility of each transmission system operator in accordance with Article 44.
Amendment    101 Proposal for a regulation Article 34 – paragraph 1 – point e
Text proposed by the Commission	Amendment
(e)  coordination and optimisation of regional restoration;	deleted
Amendment    102 Proposal for a regulation Article 34 – paragraph 1 – point f
Text proposed by the Commission	Amendment
(f)  post-operation and post-disturbances analysis and reporting;	deleted
Amendment    103 Proposal for a regulation Article 34 – paragraph 1 – point g
Text proposed by the Commission	Amendment
(g)  regional sizing of reserve capacity;	deleted
Justification
Aligned with amendment on Article 5, paragraph 7. Procurement and sizing of reserve capacity is closely related to system specificities, season, and thus to security of supply. As national TSOs are held responsible for security of supply, they should also preserve right to procure the amount of balancing capacity/reserves, which they find sufficient.
Amendment    104 Proposal for a regulation Article 34 – paragraph 1 – point h
Text proposed by the Commission	Amendment
(h)  facilitate the regional procurement of balancing capacity;	deleted
Justification
Aligned with amendment on Article 5 paragraph 8. Procurement and sizing of reserve capacity is closely related to system specificities, season, and thus to security of supply. As national TSOs are held responsible for security of supply, they should also preserve right to procure the balancing capacity/reserves.
Amendment    105 Proposal for a regulation Article 34 – paragraph 1 – point i
Text proposed by the Commission	Amendment
(i)  regional week ahead to intraday system adequacy forecasts and preparation of risk reducing actions;	(i)  regional week ahead to intraday system adequacy forecasts;
Amendment    106 Proposal for a regulation Article 34 – paragraph 1 – point k
Text proposed by the Commission	Amendment
(k)  optimisation of compensation mechanisms between transmission system operators;	deleted
Amendment    107 Proposal for a regulation Article 34 – paragraph 1 – point l
Text proposed by the Commission	Amendment
(l)  training and certification;	deleted
Amendment    108 Proposal for a regulation Article 34 – paragraph 1 – point m
Text proposed by the Commission	Amendment
(m)  identification of regional crisis scenarios according to Article 6(1) of [Regulation on risk preparedness as proposed by COM(2016) 862] if this task is delegated by ENTSO for Electricity;	deleted
Amendment    109 Proposal for a regulation Article 34 – paragraph 1 – point n
Text proposed by the Commission	Amendment
(n)  preparation and carrying out of yearly crisis simulations in cooperation with competent authorities pursuant to Article 12(3) of [Regulation on risk preparedness as proposed by COM(2016) 862];	deleted
Amendment    110 Proposal for a regulation Article 34 – paragraph 1 – point o
Text proposed by the Commission	Amendment
(o)  tasks related to the identification of regional crisis scenarios if and to the extent they are delegated to the regional operational centres pursuant to Article 6(1) of [Regulation on risk preparedness as proposed by COM(2016) 862];	deleted
Amendment    111 Proposal for a regulation Article 34 – paragraph 1 – point p
Text proposed by the Commission	Amendment
(p)  tasks related to the seasonal adequacy outlooks if and to the extent they are delegated to the regional operational centres pursuant to Article 9(2) of [Regulation on risk preparedness as proposed by COM(2016) 862];	deleted
Amendment    112 Proposal for a regulation Article 34 – paragraph 1 – point q
Text proposed by the Commission	Amendment
(q)  calculate the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms pursuant to Article 21(6).	deleted
Amendment    113 Proposal for a regulation Article 34 – paragraph 2
Text proposed by the Commission	Amendment
2.  The Commission may add other functions to the regional operational centres, not involving decision making power, pursuant to Chapter VII of this Regulation.	2.  Each regional coordination centre shall aim to develop the following functions:
	(a)  coordination and optimisation of regional restoration;
	(b)  post-operation and post-disturbance analysis and reporting;
	(c)  facilitation of the regional dimension of capacity reserves;
	(d)  facilitation of the regional procurement of balancing capacity;
	(e)  optimisation of compensation mechanisms between transmission system operators;
	(f)  training and certification;
	(g)  identification of regional crisis scenarios according to Article [6(1)] of Regulation (EU) .../... [Regulation on risk preparedness, COM(2016) 862] if this task is delegated by ENTSO for electricity;
	(h)  tasks related to the identification of regional crisis scenarios if and to the extent they are delegated to the regional coordination centres pursuant to Article [6(1)] of Regulation (EU) .../... [Regulation on risk preparedness, COM(2016) 862];
	(i)  tasks related to the seasonal adequacy outlooks if and to the extent they are delegated to the regional operational centres pursuant to Article [9(2)] of Regulation (EU) .../... [Regulation on risk preparedness, COM(2016) 862];
Amendment    114 Proposal for a regulation Article 34 – paragraph 4
Text proposed by the Commission	Amendment
4.  Regional operational centres shall provide transmission system operators of the system operation region with all the information necessary to implement the decisions and recommendations proposed by the regional operational centres.	4.  Regional coordination centres shall provide transmission system operators of the system operation region with all the information necessary to fulfil their tasks.
Amendment    115 Proposal for a regulation Article 35 – title
Text proposed by the Commission	Amendment
Cooperation within regional operational centres	Cooperation within and between security-coordinated regions operational centres
Amendment    116 Proposal for a regulation Article 35 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1.  The day-to-day operation of regional operational centres shall be managed through cooperative decision-making. The cooperative-decision making process shall be based on:	1.  The day-to-day coordination within and between security-coordinated regions operation shall be managed through cooperative decision-making process based on:
Amendment    117 Proposal for a regulation Article 35 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c)  a procedure for the adoption of decisions and recommendations in accordance with Article 38;	(c)  a procedure for the adoption of transmission system operators decisions taking into account the proposals from regional security coordinators;
Amendment    118 Proposal for a regulation Article 35 – paragraph 1 – point d
Text proposed by the Commission	Amendment
(d)  a procedure for the revision of decisions and recommendations adopted by regional operational centres in accordance with Article 39.	(d)  a procedure for the revision of recommendations issued by regional security coordinators in accordance with Article 39.
Amendment    119 Proposal for a regulation Article 37 a (new)
Text proposed by the Commission	Amendment
	Article 37a
	Transparency
	1.  Regional operational centres shall organise a process for stakeholder involvement and organise regular meetings with stakeholders to discuss matters relating to the efficient, secure and reliable operation of the interconnected system as well as to identify shortcomings and propose improvements;
	2.  ENTSO for electricity and regional operational centres shall operate in full transparency towards stakeholders and the general public. All relevant documentation shall be published on the website of the respective regional operation centre. This paragraph shall apply to the proposals, justifications and decisions adopted pursuant to Articles 32 and 33, Article 35(a) and Article 38 of this Regulation.
Justification
ROCs will be subject to extensive discussions in the lead committee. However, from an ENVI perspective provisions on transparency and participation are key. This Article is hence a logical continuation of the previous provisions on ROCs.
Amendment    120 Proposal for a regulation Article 38 – title
Text proposed by the Commission	Amendment
Adoption of decisions and recommendations	Adoption of recommendations
Amendment    121 Proposal for a regulation Article 38 – paragraph 1
Text proposed by the Commission	Amendment
1.  Regional operational centres shall develop a procedure for the adoption of decisions and recommendations.	1.  The transmission system operators of a system operation region shall develop a procedure for the adoption and revision of recommendations put forward by regional coordination centres in accordance with the criteria set out in paragraphs 2 and 3.
Amendment    122 Proposal for a regulation Article 38 – paragraph 2
Text proposed by the Commission	Amendment
2.  Regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points (a), (b), (g) and (q) of Article 34(1). Transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected.	2.  Regional coordination centres shall have the competence to adopt decisions addressed to the transmission system operators in respect of the functions referred to in points (a), (b), (g) and (q) of Article 34(1).
Amendment    123 Proposal for a regulation Article 38 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a.  Where a transmission system operator decides to deviate from the recommendation issued by the regional coordination centre, it shall submit a detailed reasons to the regional coordination centre and to the other transmission system operators of the system operation region.
Amendment    124 Proposal for a regulation Article 38 – paragraph 3
Text proposed by the Commission	Amendment
3.  Regional operational centres shall adopt recommendations addressed to the transmission system operators for the functions referred to in points (c) to (f) and (h) to (p) of Article 34(1).	3.  As regards the recommendations for the functions referred to in points (a) and (b) of Article 34(1), transmission system operators shall deviate only in cases where the safety of the system would be negatively affected.
Amendment    125 Proposal for a regulation Article 39 – paragraph 1
Text proposed by the Commission	Amendment
1.  Regional operational centres shall develop a procedure for the revision of decisions and recommendations.	1.  Regional coordination centres and transmission system operators shall jointly develop a procedure for the revision of recommendations.
Amendment    126 Proposal for a regulation Article 40 – title
Text proposed by the Commission	Amendment
Management board of regional operational centres	Management board of regional security coordinators
Amendment    127 Proposal for a regulation Article 40 – paragraph 1
Text proposed by the Commission	Amendment
1.  In order to adopt measures related to their governance and to monitor their performance, the regional operational centres shall establish a management board.	1.  In order to adopt measures related to their governance and to monitor their performance, the regional security coordinators shall establish a management board.
Amendment    128 Proposal for a regulation Article 40 – paragraph 3 – point a
Text proposed by the Commission	Amendment
(a)  drafting and endorsing the statutes and rules of procedure of the regional operational centre;	(a)  drafting and endorsing the statutes and rules of procedure of the regional security coordinators;
Amendment    129 Proposal for a regulation Article 41 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1.  Regional operational centres shall set up and manage their organisation according to a structure that supports the safety of their functions. Their organisational structure shall specify:	1.  The transmission system operators of a system operation region shall set up the organisational structure of regional coordination centres. Their organisational structure shall specify:
Amendment    130 Proposal for a regulation Article 41 – paragraph 2
Text proposed by the Commission	Amendment
2.  Regional operational centres may set up regional desks to address local specificities or back-up operational centres for the efficient and reliable exercise of their functions.	2.  Regional security coordinators may set up regional desks to address local specificities or back-up regional security coordinators for the efficient and reliable exercise of their functions.
Amendment    131 Proposal for a regulation Article 42 – paragraph 1
Text proposed by the Commission	Amendment
Regional operational centres shall be equipped with all the human, technical, physical and financial resources necessary for fulfilling their obligations under this Regulation and carrying out their functions.	Regional security coordinators shall be equipped with all the human, technical, physical and financial resources necessary for fulfilling their obligations under this Regulation and carrying out their functions independently and impartially.
Amendment    132 Proposal for a regulation Article 43 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1.  Regional operational centres shall establish a process for the continuous monitoring of at least:	1.  Regional security coordinators shall establish a process for the continuous monitoring of at least:
Amendment    133 Proposal for a regulation Article 43 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b)  the decisions and recommendations issued and the outcome achieved;	(b)  the decisions by transmission system operators where they have deviated from the recommendations issued by the regional cooperation centres;
Amendment    134 Proposal for a regulation Article 43 – paragraph 2
Text proposed by the Commission	Amendment
2.  Regional operational centres shall submit to the Agency and to the regulatory authorities of the system operation region the data resulting from their continuous monitoring at least annually.	2.  Regional operational centres shall submit to the Agency and to the regulatory authorities of the system operation region the data resulting from their continuous monitoring at least annually. The regional coordination centres shall publish an annual report explaining how their recommendations have been implemented. That report should provide details of cases where operators have departed from the recommendations and of the justifications they have provided.
Amendment    135 Proposal for a regulation Article 43 – paragraph 3
Text proposed by the Commission	Amendment
3.  Regional operational centres shall establish their costs in a transparent manner and report them to the Agency and to the regulatory authorities of the system operation region.	3.  Regional security coordinators shall establish their costs in a transparent manner and report them to the Agency and to the regulatory authorities of the security-coordinated region.
Amendment    136 Proposal for a regulation Article 43 – paragraph 4
Text proposed by the Commission	Amendment
4.  Regional operational centres shall submit an annual report concerning their performance to ENTSO for Electricity, the Agency, the regulatory authorities of the system operation region and the Electricity Coordination Group established pursuant to Article 1 of Commission Decision 2012/C 353/0237.	4.  Regional security coordinators shall submit an annual report concerning their performance to ENTSO for Electricity, the Agency, the regulatory authorities of the security-coordinated region and the Electricity Coordination Group established pursuant to Article 1 of Commission Decision 2012/C 353/0237.
_________________	_________________
37. Commission Decision of 15 November 2012 setting up the Electricity Coordination Group (OJ C 353, 17.11.2012, p.2).	37. Commission Decision of 15 November 2012 setting up the Electricity Coordination Group (OJ C 353, 17.11.2012, p.2).
Amendment    137 Proposal for a regulation Article 43 – paragraph 5
Text proposed by the Commission	Amendment
5.  Regional operational centres shall report shortcomings identified in the monitoring process under paragraph 1 to ENTSO for electricity, the regulatory authorities of the system operation region, the Agency and the competent authorities of Member States responsible for the prevention and management of crisis situations.	5.  Regional security coordinators shall report shortcomings identified in the monitoring process under paragraph 1 to ENTSO for electricity, the regulatory authorities of the security-coordinated region, the Agency and the competent authorities of Member States responsible for the prevention and management of crisis situations.
Amendment    138 Proposal for a regulation Article 44 – paragraph 1
Text proposed by the Commission	Amendment
Regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks, in particular, where they adopt decisions binding on transmission system operators. The method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available.	The transmission system operators of the system operation region shall include arrangements to cover liability related to the execution of its tasks in the proposal for the establishment of regional coordination centres in accordance with Article 32. The method employed to provide the cover shall take into account the legal status of the regional coordination centre and the level of commercial insurance cover available.
Amendment    139 Proposal for a regulation Article 49 – paragraph 1
Text proposed by the Commission	Amendment
Distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of Article 35 [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2], shall cooperate at Union level through a European Entity for Distribution system operators ("EU DSO entity"), in order to promote the completion and functioning of the internal market in electricity, and to promote optimal management and a coordinated operation of distribution and transmission systems. Distribution system operators who wish to participate in the EU DSO entity shall become registered members of the entity.	All distribution system operators shall cooperate at Union level through a European Entity for Distribution system operators ("EU DSO entity"), in order to promote the completion and functioning of the internal market in electricity and gas to support the development of a sustainable, decentralised and more integrated energy system, and to promote optimal management and a coordinated operation of distribution and transmission systems. Distribution system operators and associations that represent them at Union level who wish to participate in the EU DSO entity shall become registered members of the entity. Statuses shall ensure that decision-making process takes into account regional differences of distribution network.
Justification
Distribution networks across Europe vary to a great extent: from voltage level, topology, natural profile of given area to consumption patterns of users. These specificities has to be taken into account in an operation of EU DSO entity.
Amendment    140 Proposal for a regulation Article 49 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	In performing its functions under Union law, the EU DSO entity shall act in the interests of the Union and independently from individual national interests and from the national interests of distribution system operators, and shall contribute to the efficient and sustainable achievement of the objectives set out in the policy framework for climate and energy covering the period from 2020 to 2030, in particular by removing obstacles to the integration of electricity generated from renewable energy sources and to increases in energy efficiency.
Justification
Given the tasks ascribed to the new EU DSO entity (in particular the tasks related to the development of network codes and best practices), the entity should have an obligation to act in the interest of Europe, to act independently, and to contribute to the achievement of EU energy and climate objectives. Such an obligation has been proposed to be imposed on ENTSO for Electricity (ENTSO-E) in Article 25(2) of this Regulation and should be replicated for the new EU DSO in order to ensure consistency.
Amendment    141 Proposal for a regulation Article 50 – title
Text proposed by the Commission	Amendment
Establishment of the EU DSO entity for electricity	Establishment of the EU DSO entity
Amendment    142 Proposal for a regulation Article 50 – paragraph 1
Text proposed by the Commission	Amendment
1.  By [OP: twelve months after entry into force], the distribution system operators, with the administrative support of the Agency, shall submit to the Commission and to the Agency the draft statutes, a list of registered members, the draft rules of procedure, including the rules of procedures on the consultation with ENTSO for Electricity and other stakeholders and the financing rules, of the EU DSO entity to be established.	1.  By [OP: twelve months after entry into force], the distribution system operators, with the administrative support of the Agency, shall submit to the Commission and to the Agency the draft outline of a governance structure that guarantees a fair and balanced representation of interests between members and Member States. This shall include the draft criteria defined in paragraph 2, a list of registered members, the draft rules of procedure, including the rules of procedures on the consultation with ENTSO for Electricity and other stakeholders and the financing rules, of the EU DSO entity to be established.
Amendment    143 Proposal for a regulation Article 50 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a.  By [OP: six months after entry into force], the Agency shall define criteria for the elaboration of the draft statutes, the list of registered members, and the draft rules of procedure referred to in paragraph 1 with a view to maintaining independence of the EU DSO entity from its members and to ensuring a balanced representation as well as equitable treatment of all member distribution system operators. The Agency shall formally consult organisations representing all stakeholders on the criteria.
Amendment    144 Proposal for a regulation Article 51 – paragraph 1
Text proposed by the Commission	Amendment
1.  The tasks of the EU DSO entity shall be the following:	1.  The main task of the EU DSO entity shall be the participation in the elaboration of network codes pursuant to Article 56.
	Other tasks may include the exchange of views and best practices on:
Amendment    145 Proposal for a regulation Article 51 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c)  development of demand response;	(c)  development of demand response and energy storage;
Amendment    146 Proposal for a regulation Article 51 – paragraph 1 – point e
Text proposed by the Commission	Amendment
(e)  data management, cyber security and data protection;	(e)  cyber security and data protection, and impartiality in data management.
Amendment    147 Proposal for a regulation Article 51 – paragraph 1 – point f
Text proposed by the Commission	Amendment
(f)  participation in the elaboration of network codes pursuant to Article 56.	deleted
Amendment    148 Proposal for a regulation Article 51 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a)  cooperate with ENTSO for electricity on the monitoring of implementation of the network codes and guidelines which are relevant to the operation and planning of distribution grids and the coordinated operation of the transmission and distribution networks and which are adopted pursuant to this Regulation;	(a)  cooperate with ENTSO for electricity to examine problems and formulate recommendations related to the monitoring of implementation of the network codes and guidelines which are relevant to the operation and planning of distribution grids and the coordinated operation of the transmission and distribution networks and which are adopted pursuant to this Regulation;
Amendment    149 Proposal for a regulation Article 51 – paragraph 2 – point e
Text proposed by the Commission	Amendment
(e)  operate in full compliance with competition rules.	deleted
Amendment    150 Proposal for a regulation Article 51 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a.  The EU DSO entity shall operate in full compliance with Union and national competition rules.
Amendment    151 Proposal for a regulation Article 52 – paragraph 1
Text proposed by the Commission	Amendment
1.  While preparing possible network codes pursuant to Article 55, the EU DSO entity shall conduct an extensive consultation process, at an early stage and in an open and transparent manner, involving all relevant stakeholders, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 50. That consultation shall also involve national regulatory authorities and other national authorities, supply and generation undertakings, system users including customers, distribution system operators, including relevant industry associations, technical bodies and stakeholder platforms. It shall aim at identifying the views and proposals of all relevant parties during the decision-making process.	1.  While preparing possible network codes pursuant to Article 55, the EU DSO entity shall conduct an extensive consultation process, at an early stage and in an open and transparent manner, involving all relevant stakeholders, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 50. That consultation shall also involve national regulatory authorities and other national authorities, supply and generation undertakings, system users including customers, technical bodies and stakeholder platforms. It shall aim at identifying the views and proposals of all relevant parties during the decision-making process.
Justification
As all DSO's should be directly involved in the EU DSO entity, they should not be mentioned here as third party stakeholders.
Amendment    152 Proposal for a regulation Article 52 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a.  The Agency shall monitor the execution of the tasks attributed to the EU DSO entity in accordance with Article 51 and ensure its compliance with the obligations under this Regulation and other relevant Union legislation, notably as regards the independence of the EU DSO entity and the requirement to ensure a balanced representation of all distribution system operators across the Union. The Agency shall include the results of monitoring in its annual report pursuant to Article [16] of Regulation (EU) .../... [Recast of Regulation (EC) No 713/2009, COM(2016) 863].
Justification
ACER should be formally empowered to exercise more robust oversight over the EU DSO entity. In particular, there should be a formal requirement on ACER to ensure the EU DSO entity complies with the criteria contained in its governing statute, in particular that the EU DSO entity complies with criteria for maintaining independence and adequate representation of individual member DSOs. Such changes to the remit of ACER should be cross-referenced in the Recast Regulation713/2009 as proposed by COM(2016) 863.
Amendment    153 Proposal for a regulation Article 52 – paragraph 1 b (new)
Text proposed by the Commission	Amendment
	1b.  The EU DSO entity shall submit the draft annual work programme provided for in Article 51 to the Agency for its opinion. Within two months from the day of receipt, the Agency shall provide a duly reasoned opinion as well as recommendations to the EU DSO entity and to the Commission where it considers that the draft annual work programme submitted by the EU DSO entity does not contribute to non-discrimination, effective competition, the efficient functioning of the market or an optimal management and a coordinated operation of distribution and transmission systems.
Justification
ACER should be empowered to provide recommendations to the EU DSO entity where it finds that the draft annual programme of the EU DSO entity does not comply with EU rules or are inconsistent with EU level objectives. Such changes to the remit of ACER should be cross-referenced in the Recast Regulation 713/2009 as proposed by COM(2016) 863.
Amendment    154 Proposal for a regulation Article 52 – paragraph 3
Text proposed by the Commission	Amendment
3.  The EU DSO entity shall take into consideration the views provided during the consultations. Before adopting proposals for network codes referred to in Article 55 the EU DSO entity shall indicate how the observations received during the consultation have been taken into consideration. It shall provide reasons where observations have not been taken into account.	3.  The drafting committee shall take into consideration the views provided during the consultations. Before adopting proposals for network codes referred to in Article 55 the EU DSO entity shall indicate how the observations received during the consultation have been taken into consideration. It shall provide reasons where observations have not been taken into account.
Amendment    155 Proposal for a regulation Article 54 – paragraph 1
Text proposed by the Commission	Amendment
1.  The Commission may, subject to the empowerments in Articles 55 and 57, adopt delegated acts. Such delegated acts can either be adopted as network codes on the basis of text proposals developed by the ENTSO for Electricity, or, where so decided in the priority list pursuant to Article 55 paragraph 2, by the EU DSO entity and the Agency pursuant to the procedure in Article 55 or as guidelines pursuant to the procedure in Article 57.	1.  The Commission may, subject to the empowerments in Articles 55 and 57, adopt delegated acts. Such delegated acts can either be adopted as network codes on the basis of text proposals developed by the ENTSO for Electricity, or, where so decided in the priority list pursuant to Article 55 paragraph 2, by the Agency pursuant to the procedure in Article 55 or as guidelines pursuant to the procedure in Article 57.
Justification
It is not appropriate for the DSO entity to be in a privileged position to draft network codes (particularly when their subject matter relates to the operation of the distribution system),which will govern the DSOs’ own conduct, as well as the conduct of other market participants such as generators, suppliers, consumers, and aggregators. The EUDSO entity would be in a position to influence the drafting of rules and best practices that will significantly impact the deployment of renewables and demand response, which not all DSOs are supporting. This could increase the risk of network codes that impose additional barriers to demand response and self-consumption. This risk is exacerbated by the fact that EU unbundling rules for DSOs are not very stringent, which would allow large DSOs connected to parent utilities to exert undue influence via the DSO entity.
Amendment    156 Proposal for a regulation Article 55 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1.  The Commission is empowered to adopt delegated acts in accordance with Article 63 concerning the establishment of network codes in the following areas:	1.  The Commission is empowered to adopt delegated acts in accordance with Article 63 concerning the establishment of network codes in the following areas, taking into account, if appropriate, regional specificities:
Justification
Network codes shall continue to take regional specificities into account.
Amendment    157 Proposal for a regulation Article 55 – paragraph 1 – point k
Text proposed by the Commission	Amendment
(k)  rules regarding harmonised transmission and distribution tariff structures and connection charges including locational signals and inter-transmission system operator compensation rules;	(k)  rules regarding harmonised transmission tariff structures and connection charges including locational signals and inter-transmission system operator compensation rules;
Justification
Distribution system operation is very locally specific given the different topology of the grid and consumption patterns. Therefore, it is not advised to harmonise its structure via network codes or guidelines. Set of high-level principles as stated in Article 16: Charges for access to networks is sufficient for the purpose of transparency and fair tariff-setting.
Amendment    158 Proposal for a regulation Article 55 – paragraph 9
Text proposed by the Commission	Amendment
9.  The ENTSO for Electricity, or where so decided in the priority list pursuant to paragraph 2, the EU DSO entity, shall convene a drafting committee to support it in the network code development process. The drafting committee shall consist of representatives of the ENTSO for Electricity, the Agency, the EU DSO entity, where appropriate of nominated electricity market operators and a limited number of the main affected stakeholders. The ENTSO for Electricity or where so decided in the priority list pursuant to paragraph 2 the EU DSO entity, shall elaborate proposals for network codes in the areas referred to in paragraph 1 upon a request addressed to it by the Commission in accordance with paragraph 8.	9.  The ENTSO for Electricity, or where so decided in the priority list pursuant to paragraph 2, the EU DSO entity, shall convene a drafting committee to support it in the network code development process. The drafting committee shall consist of representatives of the ENTSO for Electricity, the Agency, the EU DSO entity, where appropriate of nominated electricity market operators and representatives of a limited number of the main affected stakeholders, such as the consumers. The ENTSO for Electricity or where so decided in the priority list pursuant to paragraph 2 the EU DSO entity, shall elaborate proposals for network codes in the areas referred to in paragraph 1 upon a request addressed to it by the Commission in accordance with paragraph 8.
Justification
It is important to ensure that consumers´ perspectives are adequately represented in the development of network codes.
Amendment    159 Proposal for a regulation Article 55 – paragraph 10
Text proposed by the Commission	Amendment
10.  The Agency shall revise the network code and ensure that the network code is in line with the relevant framework guideline and contributes to market integration, non-discrimination, effective competition, and the efficient functioning of the market and, submit the revised network code to the Commission within six months of the day of the receipt of the proposal. In the proposal submitted to the Commission, the Agency shall take into account the views provided by all involved parties during the drafting of the proposal led by the ENTSO for Electricity or the EU DSO entity and shall formally consult the relevant stakeholders on the version to be submitted to the Commission.	10.  The Agency shall revise the network code and ensure that the network code is in line with the relevant framework guideline and contributes to market integration, non-discrimination, effective competition, and the efficient functioning of the market and, submit the revised network code to the Commission within six months of the day of the receipt of the proposal. In the proposal submitted to the Commission, the Agency shall take into account the views provided by all involved parties, in particular the consumers´ ones, during the drafting of the proposal led by the ENTSO for Electricity or the EU DSO entity and shall formally consult the relevant stakeholders on the version to be submitted to the Commission.
Amendment    160 Proposal for a regulation Article 57 – paragraph 1
Text proposed by the Commission	Amendment
1.  The Commission may adopt binding guidelines in the areas listed below.	1.  The Commission may adopt guidelines in the areas listed below.
Amendment    161 Proposal for a regulation Article 57 – paragraph 4 – subparagraph 1
Text proposed by the Commission	Amendment
Guidelines may also determine appropriate rules relating to charges applied to producers, energy storage and customers (load) under national distribution and transmission tariff systems and connection regimes, including the reflection of the inter-transmission system operator compensation mechanism in national network charges and the provision of appropriate and efficient locational signals, in accordance with the principles set out in Article 16.	Guidelines may also determine appropriate rules relating to charges applied to producers, energy storage and customers (load) under national transmission tariff systems and connection regimes, including the reflection of the inter-transmission system operator compensation mechanism in national network charges and the provision of appropriate and efficient locational signals, in accordance with the principles set out in Article 16.
Justification
Aligned with amendment on Article 55, paragraph 1, point k. Distribution networks across Europe vary to a great extent: from voltage level, topology, natural profile of given area to consumption patterns of users. Structure of distribution tariff therefore needs to be unique; national regulatory authorities are best equipped to do this.
Amendment    162 Proposal for a regulation Annex I – part 5 – point 5.1
Text proposed by the Commission	Amendment
5.1.  Regional operational centres shall be equipped with the close to real time supervisory control and data acquisition systems with the observability defined by applying the threshold defined in accordance with point 4.1.	deleted

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	Internal market for electricity (recast)
References	COM(2016)0861 – C8-0492/2016 – 2016/0379(COD)
Committee responsible        Date announced in plenary	ITRE 1.3.2017
Opinion by        Date announced in plenary	ENVI 6.7.2017
Rapporteur        Date appointed	Ivo Belet 6.7.2017
Date adopted	21.11.2017
Result of final vote	+: –: 0:	52 9 0
Members present for the final vote	Margrete Auken, Pilar Ayuso, Zoltán Balczó, Catherine Bearder, Ivo Belet, Simona Bonafè, Lynn Boylan, Soledad Cabezón Ruiz, Nessa Childers, Alberto Cirio, Birgit Collin-Langen, Miriam Dalli, Seb Dance, Angélique Delahaye, Mark Demesmaeker, Bas Eickhout, Karl-Heinz Florenz, Francesc Gambús, Elisabetta Gardini, Gerben-Jan Gerbrandy, Arne Gericke, Jens Gieseke, Julie Girling, Françoise Grossetête, Andrzej Grzyb, Anneli Jäätteenmäki, Jean-François Jalkh, Benedek Jávor, Josu Juaristi Abaunz, Kateřina Konečná, Urszula Krupa, Giovanni La Via, Jo Leinen, Peter Liese, Norbert Lins, Valentinas Mazuronis, Joëlle Mélin, Susanne Melior, Rory Palmer, Gilles Pargneaux, Piernicola Pedicini, Bolesław G. Piecha, Pavel Poc, Frédérique Ries, Daciana Octavia Sârbu, Annie Schreijer-Pierik, Davor Škrlec, Renate Sommer, Ivica Tolić, Adina-Ioana Vălean, Damiano Zoffoli
Substitutes present for the final vote	Jørn Dohrmann, Herbert Dorfmann, Eleonora Evi, Martin Häusling, Esther Herranz García, Rupert Matthews, Christel Schaldemose, Bart Staes, Dubravka Šuica
Substitutes under Rule 200(2) present for the final vote	Maria Noichl

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

52	+
ALDE	Catherine Bearder, Gerben-Jan Gerbrandy, Anneli Jäätteenmäki, Valentinas Mazuronis, Frédérique Ries
ECR	Mark Demesmaeker
EFDD	Eleonora Evi, Piernicola Pedicini
GUE/NGL	Lynn Boylan, Josu Juaristi Abaunz, Kateřina Konečná
PPE	Pilar Ayuso, Ivo Belet, Alberto Cirio, Birgit Collin-Langen, Angélique Delahaye, Herbert Dorfmann, Karl-Heinz Florenz, Francesc Gambús, Elisabetta Gardini, Jens Gieseke, Françoise Grossetête, Andrzej Grzyb, Esther Herranz García, Giovanni La Via, Peter Liese, Norbert Lins, Annie Schreijer-Pierik, Renate Sommer, Dubravka Šuica, Ivica Tolić, Adina-Ioana Vălean
S&D	Simona Bonafè, Soledad Cabezón Ruiz, Nessa Childers, Miriam Dalli, Seb Dance, Jo Leinen, Susanne Melior, Maria Noichl, Rory Palmer, Gilles Pargneaux, Pavel Poc, Christel Schaldemose, Daciana Octavia Sârbu, Damiano Zoffoli
Verts/ALE	Margrete Auken, Bas Eickhout, Martin Häusling, Benedek Jávor, Davor Škrlec, Bart Staes

9	-
ECR	Jørn Dohrmann, Arne Gericke, Julie Girling, Urszula Krupa, Rupert Matthews, Bolesław G. Piecha
ENF	Jean-François Jalkh, Joëlle Mélin
NI	Zoltán Balczó

0	0

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

PROCEDURE – COMMITTEE RESPONSIBLE

Title	Internal market for electricity (recast)
References	COM(2016)0861 – C8-0492/2016 – 2016/0379(COD)
Date submitted to Parliament	30.11.2016
Committee responsible        Date announced in plenary	ITRE 1.3.2017
Committees asked for opinions        Date announced in plenary	ECON 1.3.2017	ENVI 6.7.2017	IMCO 1.3.2017
Not delivering opinions        Date of decision	ECON 31.1.2017	IMCO 25.1.2017
Rapporteurs        Date appointed	Krišjānis Kariņš 25.1.2017
Discussed in committee	25.4.2017	11.7.2017	12.10.2017
Date adopted	21.2.2018
Result of final vote	+: –: 0:	44 11 9
Members present for the final vote	Zigmantas Balčytis, Bendt Bendtsen, Xabier Benito Ziluaga, José Blanco López, Jonathan Bullock, Cristian-Silviu Buşoi, Reinhard Bütikofer, Jerzy Buzek, Angelo Ciocca, Edward Czesak, Jakop Dalunde, Pilar del Castillo Vera, Christian Ehler, Fredrick Federley, Ashley Fox, Adam Gierek, Theresa Griffin, András Gyürk, Hans-Olaf Henkel, Eva Kaili, Kaja Kallas, Barbara Kappel, Krišjānis Kariņš, Jeppe Kofod, Peter Kouroumbashev, Zdzisław Krasnodębski, Miapetra Kumpula-Natri, Christelle Lechevalier, Janusz Lewandowski, Paloma López Bermejo, Edouard Martin, Nadine Morano, Dan Nica, Angelika Niebler, Morten Helveg Petersen, Miroslav Poche, Paul Rübig, Massimiliano Salini, Algirdas Saudargas, Sven Schulze, Neoklis Sylikiotis, Dario Tamburrano, Patrizia Toia, Evžen Tošenovský, Claude Turmes, Vladimir Urutchev, Kathleen Van Brempt, Henna Virkkunen, Martina Werner, Lieve Wierinck, Hermann Winkler, Anna Záborská, Flavio Zanonato, Carlos Zorrinho
Substitutes present for the final vote	Cornelia Ernst, Gerben-Jan Gerbrandy, Françoise Grossetête, Janusz Korwin-Mikke, Werner Langen, Florent Marcellesi, Dominique Riquet, Davor Škrlec
Substitutes under Rule 200(2) present for the final vote	Jan Keller, Stanisław Ożóg
Date tabled	27.2.2018

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

44	+
ALDE	Fredrick Federley, Gerben-Jan Gerbrandy, Kaja Kallas, Morten Helveg Petersen, Dominique Riquet, Lieve Wierinck
EFDD	Dario Tamburrano
ENF	Barbara Kappel
PPE	Bendt Bendtsen, Cristian-Silviu Buşoi, Pilar del Castillo Vera, Christian Ehler, Françoise Grossetête, András Gyürk, Krišjānis Kariņš, Werner Langen, Nadine Morano, Paul Rübig, Massimiliano Salini, Algirdas Saudargas, Sven Schulze, Vladimir Urutchev, Henna Virkkunen, Anna Záborská
S&D	Zigmantas Balčytis, José Blanco López, Theresa Griffin, Eva Kaili, Jan Keller, Jeppe Kofod, Peter Kouroumbashev, Miapetra Kumpula-Natri, Dan Nica, Miroslav Poche, Patrizia Toia, Kathleen Van Brempt, Martina Werner, Flavio Zanonato, Carlos Zorrinho
VERTS/ALE	Reinhard Bütikofer, Jakop Dalunde, Florent Marcellesi, Davor Škrlec, Claude Turmes

11	-
ECR	Edward Czesak, Hans-Olaf Henkel, Zdzisław Krasnodębski, Stanisław Ożóg
EFDD	Jonathan Bullock
ENF	Angelo Ciocca, Christelle Lechevalier
NI	Janusz Korwin-Mikke
PPE	Angelika Niebler
S&D	Adam Gierek, Edouard Martin

9	0
ECR	Ashley Fox, Evžen Tošenovský
GUE/NGL	Xabier Benito Ziluaga, Cornelia Ernst, Paloma López Bermejo, Neoklis Sylikiotis
PPE	Jerzy Buzek, Janusz Lewandowski, Hermann Winkler

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention