Procedure : 2016/0030(COD)
Document stages in plenary
Document selected : A8-0310/2016

Texts tabled :

A8-0310/2016

Debates :

PV 12/09/2017 - 4
CRE 12/09/2017 - 4

Votes :

PV 12/09/2017 - 7.12

Texts adopted :

P8_TA(2017)0327

REPORT     ***I
PDF 1277kWORD 230k
20 October 2016
PE 580.796v02-00 A8-0310/2016

on the proposal for a regulation of the European Parliament and of the Council concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010

(COM(2016)0052 – C8-0035/2016 – 2016/0030(COD))

Committee on Industry, Research and Energy

Rapporteur: Jerzy Buzek

ERRATA/ADDENDA
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 OPINION of the Committee on Foreign Affairs
 OPINION of the Committee on Regional Development
 PROCEDURE – COMMITTEE RESPONSIBLE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010

(COM(2016)0052 – C8-0035/2016 – 2016/0030(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0052),

–  having regard to Article 294(2) and Article 194 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0035/2016),

–  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 Austrian Federal Council and the Bulgarian Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the report of the Committee on Industry, Research and Energy and the opinions of the Committee on Foreign Affairs and the Committee on Regional Development (A8-0310/2016),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

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

Amendment    1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1)  Natural gas (gas) remains an essential component of the energy supply of the Union. A large proportion of such gas is imported into the Union from third countries.

(1)  Natural gas (gas) is an essential component of the energy supply of the Union. Security of gas supply is therefore a key element of the Union's overall energy security, with relevance to the Union's competitiveness and growth. Even though more than 50 % of gas consumption in the European Economic Area is currently covered by domestic production, a growing proportion of gas is imported from third countries. Enhancing the Union's energy security and making its gas market more resilient thus requires creating a stable, market-based regulatory framework for developing gas production from domestic sources. Furthermore, increasing energy efficiency as well as the use of renewable energy sources reduces the Union's reliance on gas imports, thereby also addressing dependence on dominant external suppliers.

Amendment    2

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission

Amendment

 

(1 a)  Gas demand in the Union has declined by 14 % since 2000 and by 23 % since 2010, partly due to the economic crisis, but also due to the implementation of energy efficiency policies. Following the "efficiency-first" principle, energy efficiency measures should continue to play a fundamental role in the transition towards a more sustainable, competitive and secure energy system, since it is the most effective way to cut emissions, bring savings to consumers and reduce the Union's import dependence. In this context it is of particular importance to improve energy efficiency in buildings, as gas accounts for around half of the principal energy consumption for heating and cooling in the Union.

Amendment    3

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2)  A major disruption of the gas supply can affect all Member States, the Union as a whole and Contracting Parties to the Treaty establishing the Energy Community, signed in Athens on 25 October 2005. It can also severely damage the Union economy and can have a major social impact, particularly on vulnerable groups of customers.

(2)  The high level of interdependence of Member States and European third countries is also a feature of the field of energy. A major disruption of gas supply in one country can affect multiple other Member States, the Union or Contracting Parties to the Treaty establishing the Energy Community (Energy Community Contracting Parties). It can weaken overall security, potentially severely damage the economy and have a major social impact, particularly on vulnerable groups of customers, especially in countries which are overly dependent on a single dominant supplier.

Amendment    4

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3)  This Regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the Union, in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply. These objectives should be achieved through the most cost-effective measures and in such a way that energy markets are not distorted.

(3)  This Regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the Union, in particular to protected customers in the event of difficult climatic conditions or disruptions of gas supply. This should be achieved through cost-effective measures, in a way that energy markets are not distorted, in accordance with Article 194 of the Treaty on the Functioning of the European Union (TFEU) and with the goals of the Energy Union Strategy set out in the Commission Communication of 28 May 2014.

Amendment    5

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

(4)  Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply has already had a significant positive impact on the Union situation as regards the security of the gas supply, both in terms of preparation and mitigation. Member States are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures, and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply. However, the implementation report of Regulation (EU) No 994/2010 of October 2014 highlighted areas in which improvements to that Regulation could further bolster the Union supply security.

(4)  Existing Union law, in particular the relevant elements of the Third Energy Package and Regulation (EU) No 994/2010 of the European Parliament and of the Council1a, has already had a significant positive impact on the security of gas supply in the Union, both in terms of preparation and mitigation. Member States are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures, and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply. The implementation report of Regulation (EU) No 994/2010 of October 2014 highlighted areas in which improvements to that Regulation could further bolster the security of the Union's gas supply.

 

_______________

 

1a Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply and repealing Council Directive 2004/67/EC Text with EEA relevance (OJ L 295, 12.11.2010., p. 1).

Amendment    6

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5)  The Commission's Communication on the short-term resilience of the European gas system from October 201413 analysed the effects of a partial or complete disruption of gas supplies from Russia and concluded that purely national approaches are not very effective in the event of severe disruption, given their scope, which is by definition limited. This stress test showed how a more cooperative approach among Member States could significantly reduce the impact of very severe disruption scenarios in the most vulnerable Member States.

(5)  The Commission's Communication of 16 October 201413 on the short-term resilience of the European gas system analysed the effects of a partial or complete disruption of gas supplies from Russia and concluded that many of the national approaches are unilateral in nature, insufficiently coordinated or cooperative, and thus not very effective in the event of severe disruption. This stress test showed that a more cooperative approach among Member States could significantly reduce the impact of very severe disruption scenarios in the most vulnerable Member States.

__________________

__________________

13 COM(2014) 654 final

13 COM(2014)0654

Amendment    7

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)  The Commission Communication 'Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy'14 from February 2015, highlights the fact that the Energy Union rests on solidarity and trust, which are necessary features of energy security. This regulation should aim to boost solidarity and trust between the Member States and should put in place the measures needed to achieve these aims, thus paving the way for implementing the Energy Union.

(6)  Energy security constitutes one of the objectives of the Energy Union strategy, as set out in the Commission Communication of 25 February 2015, entitled 'Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy'14. The Communication highlighted the fact that the Energy Union rests on solidarity, a principle enshrined in Article 194 TFEU, and trust, which are necessary features of energy security. This Regulation is intended to boost solidarity and trust between the Member States and put in place the measures needed to achieve these aims, thus contributing to achieving one of the objectives of the Energy Union.

__________________

__________________

14 Communication from the Commission to the European Parliament and the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank, COM(2015) 80 final.

14 COM(2015)080.

Amendment    8

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7)  An internal gas market that operates smoothly is the best guarantee of security of energy supply across the Union and to reduce the exposure of individual Member States to the harmful effects of supply disruptions. Where a Member State's security of supply is threatened, there is a risk that measures developed unilaterally by that Member State may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other Member States. To allow the internal gas market to function even in the face of a shortage of supply, provision must be made for solidarity and coordination in the response to supply crises, as regards both preventive action and the reaction to actual disruptions of supply.

(7)  A well-interconnected and well-functioning internal gas market, free from "energy islands", that operates smoothly, together with an energy system strongly oriented towards continuous improvement of efficiency and demand reduction, is a good means by which to ensure the security of gas supply across the Union while reducing the exposure of individual Member States to harmful effects of supply disruptions. Where a Member State's security of gas supply is threatened, there is a risk that measures developed unilaterally by that Member State may damage the gas supply to customers in other Member States, negatively affecting the proper functioning of the internal gas market and causing costly stranded assets. To allow the internal gas market to function even in the face of a shortage of supply, provision must be made for solidarity and coordination at regional and Union level as regards both preventive action and reaction to actual disruptions of supply. Measures taken in that context should respect, to the highest degree possible, market economy principles.

Amendment    9

Proposal for a regulation

Recital 7 a (new)

Text proposed by the Commission

Amendment

 

(7 a)  The Union should further diversify energy sources, suppliers and supply routes, as a precondition for energy security. It should achieve this by diversified projects that are fully in line with Union law and principles as well as with the Union's long-term policy objectives and priorities. Projects not meeting those criteria should not be supported by Union funding.

Amendment    10

Proposal for a regulation

Recital 7 b (new)

Text proposed by the Commission

Amendment

 

(7 b)  A truly interconnected internal energy market with multiple entry points and reverse flows can only be created by fully interconnecting its gas grids, by building up liquefied natural gas (LNG) hubs in the Union’s Southern and Eastern regions, by completing the North-South and Southern Gas corridors and by further developing domestic production. Therefore an accelerated development of interconnectors and projects aiming to diversify supply sources as already shortlisted in the Energy Security Strategy is necessary.

Amendment    11

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8)  So far, the potential for more efficient and less costly measures through regional cooperation has not been fully exploited. This has to do not only with better coordination of national mitigation actions in emergency situations, but also of national preventive measures, such as national storage or policies related to liquefied natural gas (LNG), which can be strategically important in certain regions.

(8)  So far, the potential of regional cooperation to introduce more efficient and less costly measures has not been fully exploited. This applies to better coordination of national mitigation actions in emergency situations as well as to national preventive measures, such as national storage or policies related to LNG, which can be strategically important in certain regions.

Amendment    12

Proposal for a regulation

Recital 8 a (new)

Text proposed by the Commission

Amendment

 

(8 a)  Regional approaches both among Member States and with the Energy Community Contracting Parties will speed up market integration, including through the creation of regional hubs to enhance market liquidity. Such cooperation mechanisms could streamline political and energy market co-operation and facilitate joint decisions on essential gas infrastructure investment in the regions; knowledge and information could be developed jointly on issues such as energy storage facilities, and tendering processes for LNG and interconnectors.

Amendment    13

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)  In a spirit of solidarity, regional cooperation, involving both public authorities and natural gas undertakings, should be the guiding principle of this Regulation, to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost-effective measures for Union consumers.

(9)  In a spirit of solidarity, regional cooperation which involves both public authorities and natural gas undertakings is the guiding principle of this Regulation, with the aim of identifying the relevant risks in each region and optimising the benefits of coordinated measures to mitigate them, while ensuring that the measures are in line with market economy principles, cost-effective for customers, and conducive to affordable energy prices for citizens. Regional cooperation should gradually be complemented with a stronger Union perspective, allowing recourse to all available supplies and tools in the entire internal gas market. Union-level assessment of the Emergency Supply Corridors should complement and facilitate the regional approach as laid down in Annex I.

Amendment    14

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission

Amendment

 

(9 a)  In a spirit of system integration, cooperation between electricity and gas authorities and undertakings should be another guiding principle of this Regulation, to identify the relevant synergies between gas and electricity system development and operation, and optimise the benefits of coordinated approaches to implementing the most cost-effective measures for Union consumers.

Amendment    15

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)  Certain customers, including households and customers providing essential social services, are particularly vulnerable and may need social protection. A definition of such protected customers should not conflict with the Union solidarity mechanisms.

(10)  Certain customers, including households and customers that provide essential social services, are particularly vulnerable to supply disruptions and need special protection. A definition of such protected customers should be harmonised across the Union.

Amendment    16

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11)  Responsibility for security of gas supply should be shared by natural gas undertakings, Member States, acting through their competent authorities; and the Commission, within their respective remits. Such shared responsibility requires very close cooperation between these parties. However, customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply, as they can respond to a crisis by taking demand-side measures such as interruptible contracts and fuel switching, which have an immediate impact on the supply/demand balance.

(11)  Responsibility for the security of gas supply should be shared by natural gas undertakings, Member States, acting through their competent authorities; and the Commission, within their respective remits. Such shared responsibility requires very close cooperation between these parties. However, customers using gas for electricity generation or industrial purposes may also have an important role to play in the security of gas supply, as they can respond to a crisis by taking demand-side measures such as interruptible contracts and fuel switching, which have an immediate impact on the supply-demand balance. The security of gas supply to such customers may also be considered to be essential in some cases. It should be possible to grant them a certain level of protection by ensuring that during an emergency they are among the last consumers to forego supply before protected customers. Member States should be able to provide for this possibility when identifying the supply restrictions orders to be applied in the case of an emergency.

Amendment    17

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12)  As stipulated by Directive 2009/73/EC of the European Parliament and of the Council15, the competent authorities should cooperate closely with other relevant national authorities, in particular national regulatory authorities, when carrying out the tasks specified in this Regulation.

(12)  As provided for in Directive 2009/73/EC of the European Parliament and of the Council15, the competent authorities should cooperate closely with other relevant national authorities, in particular national regulatory authorities, when carrying out the tasks specified in this Regulation.

__________________

__________________

15 Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (OJ L 211, 14.8.2009, p.94).

15 Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (OJ L 211, 14.8.2009, p.94).

Amendment    18

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14)  Regulation (EU) No 994/2010 requires transmission system operators to enable permanent bi-directional capacity on all cross-border interconnections unless an exemption has been granted from this obligation. It aims to ensure that the possible benefits of permanent bi-directional capacity are always taken into account when a new interconnector is planned. However, bi-directional capacity can be used to supply gas both to the neighbouring Member State and to others along the gas supply corridor. The benefits for security of supply of enabling permanent bi-directional capacity thus need to be seen in a broader perspective, in a spirit of solidarity and enhanced cooperation. A cost-benefit analysis that takes account of the whole transportation corridor should therefore be conducted when considering whether to implement bi-directional capacity. The competent authorities should accordingly be required to re-examine the exemptions granted under Regulation (EU) 994/2010 on the basis of the results of the regional risk assessments.

(14)  Regulation (EU) No 994/2010 requires transmission system operators to enable permanent bi-directional capacity on all cross-border interconnections unless an exemption has been granted from this obligation. It aims to ensure that the possible benefits of permanent bi-directional capacity are always taken into account when a new interconnector is planned. However, bi-directional capacity can be used to supply gas both to the neighbouring Member State and to others along the gas supply corridor. The benefits to the security of gas supply of enabling permanent bi-directional capacity need to be seen from a broader perspective, in a spirit of solidarity and enhanced cooperation. A comprehensive cost-benefit analysis that takes account of the whole transportation corridor should be conducted when considering whether to implement bi-directional capacity. The competent authorities should be required to re-examine the exemptions granted under Regulation (EU) No 994/2010 on the basis of the results of regional risk assessments. The overall objective should be to have a growing bi-directional capacity and keep one-directional capacity future cross-border projects to the minimum.

Amendment    19

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16)  The Regulation lays down security of supply standards that are sufficiently harmonised and cover at least the situation that occurred in January 2009 when gas supply from Russia was disrupted. These standards take account of the difference between Member States, public service obligations and customer protection measures, as referred to in Article 3 of Directive 2009/73/EC. Security of supply standards should be stable, so as to provide the necessary legal certainty, should be clearly defined, and should not impose unreasonable and disproportionate burdens on natural gas undertakings. They should also guarantee equal access for the Union natural gas undertakings to national customers.

(16)  This Regulation lays down security of gas supply standards that are sufficiently harmonised and cover at least the situation that occurred in January 2009 when gas supply from Russia was disrupted. Those standards take account of the difference between Member States, public service obligations and customer protection measures, as referred to in Article 3 of Directive 2009/73/EC. Security of supply standards should be stable, so as to provide the necessary legal certainty, should be clearly defined, and should not impose unreasonable and disproportionate burdens on natural gas undertakings. They should also guarantee equal access for the Union natural gas undertakings to national customers.

Amendment    20

Proposal for a regulation

Recital 16 a (new)

Text proposed by the Commission

Amendment

 

(16 a)  In order to take account of the differences between Member States, Member States should, without prejudice to their rights and obligations with regard to solidarity in the event of the declaration of an emergency crisis level, have the possibility to apply the security of supply standards laid down in this Regulation to certain small and medium-sized enterprises and to district heating installations to the extent that they deliver heating to those enterprises.

Amendment    21

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17)  A regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated, bringing significant benefits in terms of the effectiveness of measures and optimisation of resources. This applies particularly to measures designed to guarantee a continued supply, under very demanding conditions, to protected customers, and to measures to mitigate the impact of an emergency. Assessing correlated risks at regional level, which is both more comprehensive and more precise, will ensure that Member States are better prepared for any crises. Moreover, in an emergency, a coordinated and pre-agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill-over effects that purely national measures could have in neighbouring Member States.

(17)  A regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated, bringing significant benefits in terms of the effectiveness of measures and optimisation of resources. This applies particularly to measures designed to guarantee a continued supply, under very demanding conditions, to protected customers, and to measures to mitigate the impact of an emergency. Assessing correlated risks at regional level, taking both gas and electricity systems into account, which is both more comprehensive and more precise, will ensure that Member States are better prepared for any crises. Moreover, in an emergency, a coordinated and pre-agreed approach to the security of supply ensures a consistent response and reduces the risk of negative spill-over effects that purely national measures could have in neighbouring Member States. The regional approach should not prevent inter-regional cooperation outside the regions established in Annex I, and should not free individual Member States from the responsibility of complying with their national security of supply standards and of diversifying supply as a matter of priority where dependence on single supply points occurs.

Amendment    22

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18)  The regions are to be defined, as far as possible, on the basis of existing regional cooperation structures set up by the Member States and the Commission, in particular the regional groups set up under Regulation (EU) 347/2013 on guidelines for trans-European energy infrastructure17 (the TEN-E Regulation). However, since this Regulation and the TEN-E Regulation have different aims, the respective regional groups may differ in size and design.

(18)  The regions should be established, as far as possible, on the basis of existing regional cooperation structures established by the Member States and the Commission, in particular the regional groups set up under Regulation (EU) No 347/2013 of the European Parliament and of the Council17. However, since this Regulation and Regulation (EU) No 347/2013 have different aims, the respective regional groups may differ in size and design.

__________________

__________________

17 Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulation (EC) No 713/2009, (EC) 714/2009 and (EC) No 715/2009 (OJ EU L 115 of 25.4.2013, p. 39).

17 Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulation (EC) No 713/2009, (EC) 714/2009 and (EC) No 715/2009 (OJ EU L 115 of 25.4.2013, p. 39).

Amendment    23

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19)  For the purpose of this Regulation, the following criteria should therefore be taken into account when defining the regional groups: supply patterns, existing and planned interconnections and interconnection capacity between Member States, market development and maturity, existing regional cooperation structures, and the number of Member States in a region, which should be limited to ensure that the group remains of a manageable size.

(19)  For the purpose of this Regulation, the following criteria should therefore be taken into account when establishing the regional groups: supply patterns, existing and planned interconnections and interconnection capacity between Member States, existing interconnections across third countries, market development and maturity, existing regional cooperation structures, the level of diversification of gas routes and sources of gas supply, and the number of Member States in a region, which should be limited to ensure that the group remains of a manageable size.

Amendment    24

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20)  In order to make the regional cooperation feasible, Member States should establish a cooperation mechanism within each region. Such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level. Member States are free to agree on a cooperation mechanism best suited for a given region. The Commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies. In absence of an agreement on the cooperation mechanism, the Commission may propose a suitable cooperation mechanism for a given region.

(20)  In order to make regional cooperation feasible, Member States should establish a cooperation mechanism within each region. Such mechanism or mechanisms should be developed in sufficient time to allow for conducting the risk assessment and drawing up effective plans at regional level. Member States are free to agree on a cooperation mechanism best suited for a given region. The Commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies. In the absence of an agreement on the cooperation mechanism, the Commission will propose a suitable cooperation mechanism for a particular region.

Amendment    25

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21)  When conducting a comprehensive risk assessment to be prepared at regional level, competent authorities should assess natural, technological, commercial, financial, social, political and market-related risks, and any other relevant ones, including, where appropriate, the disruption of the supplies from the single largest supplier. All risks should be addressed by effective, proportionate and non-discriminatory measures to be developed in the preventive action plan and the emergency plan. The results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of Decision No 1313/2013/EU18.

(21)  When conducting a comprehensive risk assessment to be prepared at regional level, competent authorities should assess natural, technological, infrastructural, commercial, financial, social, political, geopolitical, environmental, market-related, and any other relevant risks, including, where appropriate, disruption of supplies from dominant suppliers. All risks should be addressed by effective, proportionate and non-discriminatory measures to be developed in preventive action plan and emergency plan and include demand-side and supply-side measures. The results of the risk assessments should also contribute to the all risk assessments provided for in Article 6 of Decision No 1313/2013/EU of the European Parliament and of the Council18.

__________________

__________________

18 Decision No 1313/2013/EU of the European Parliament and of the Council of 17 December 2013 on a Union Civil Protection Mechanism (OJ L 347, 20.12.2013, p. 24).

18 Decision No 1313/2013/EU of the European Parliament and of the Council of 17 December 2013 on a Union Civil Protection Mechanism (OJ L 347, 20.12.2013, p. 24).

Amendment    26

Proposal for a regulation

Recital 22

Text proposed by the Commission

Amendment

(22)  To provide input to the risk assessments, the European Network of Transmission System Operators for Gas ('ENTSO for gas'), in consultation with the Gas Coordination Group and with the European Network of Transmission System Operators for Electricity (ENTSO-E), should carry out Union-wide simulations similar to the stress test conducted in 2014.

(22)  To provide input to the risk assessments, the European Network of Transmission System Operators for Gas ('ENTSO for Gas'), after consulting the Gas Coordination Group and the European Network of Transmission System Operators for Electricity, should carry out Union-wide simulations similar to the stress test conducted in 2014. Such simulations should be updated at least every two years. As a means of strengthening regional cooperation by providing information about gas flows as well as providing technical and operational expertise, the Regional Coordination System for Gas (RCSG), established by the ENTSO for Gas and composed of standing expert groups, should be involved in carrying out simulations.

Amendment    27

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

(23)  To ensure maximum preparedness, so as to avoid a supply disruption and mitigate its effects should it nevertheless occur, the competent authorities of a given region must draw up preventive action plans and emergency, after consulting stakeholders. Regional plans should take account of the specific characteristics of each Member State. They should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities. National measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan. They should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation. The plans should be technical and operational in nature, their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects. The plans should take the security of electricity systems into account and be consistent with the Energy Union's strategic planning and reporting tools.

(23)  To ensure maximum preparedness, so as to avoid a supply disruption and mitigate the effects of such a disruption should it nevertheless occur, the competent authorities of a given region should draw up preventive action plans and emergency plans, after consulting the stakeholders. Regional plans should take account of the specific characteristics of each Member State. They should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities and, where appropriate, electricity undertakings. National measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan. They should be designed so as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation. The plans should be technical and operational in nature, their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects. The plans should take the security of electricity systems into account and be consistent with the Energy Union's objectives and strategic planning and reporting tools.

Amendment    28

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24)  The roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the internal gas market functioning properly, particularly in the event of supply disruptions and crises. Such roles and responsibilities should be established in such a way as to ensure that a three-level approach is respected which would involve first the relevant natural gas undertakings and industry, then Member States at national or regional level, and then the Union. This Regulation should enable natural gas undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions. However, it should also provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption.

(24)  The roles and responsibilities of all natural gas undertakings and competent authorities, and, where appropriate, electricity undertakings, should therefore be defined precisely in order to keep the internal gas market functioning properly, particularly in the event of supply disruptions and crises. Such roles and responsibilities should be established in such a way as to ensure that a three-level approach is respected which would involve first the relevant natural gas undertakings, electricity undertakings and industry, then Member States at national or regional level, and then the Union. To that end, effective information-sharing across all levels should provide early warning with regard to disruption and the means of mitigation. This Regulation is intended to enable natural gas undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions. However, it is also intended to provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption.

Amendment    29

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25)  In the event of a supply crisis, market players should be given sufficient opportunity to respond to the situation with market-based measures. Where market measures have been exhausted and they are still insufficient, Member States and their competent authorities should take measures to remove or mitigate the effects of the supply crisis.

(25)  In the event of a supply crisis, market players should be granted adequate opportunity to respond to the situation with market-based measures. Where market measures have been exhausted and they are still insufficient, Member States and their competent authorities should take measures to remove or mitigate the effects of the supply crisis. Energy efficiency measures should be prioritised in order to reduce the demand for gas and electricity and to provide a long-term and sustainable improvement of Member States' resilience to a supply crisis.

Amendment    30

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26)  Whenever Member States plan to introduce non-market-based measures, such measures should be accompanied by a description of their economic impact. This ensures customers have the information they need about the costs of such measures and ensures that the measures are transparent, especially as regards their share in the gas price.

(26)  Whenever Member States plan to introduce, as a last resort, non-market-based measures, such measures should be accompanied by a description of their economic impact and a mechanism of compensation for operators. This ensures that customers have the information they need about the costs of such measures and ensures that the measures are transparent, especially as regards their share in the gas price.

Amendment    31

Proposal for a regulation

Recital 27

Text proposed by the Commission

Amendment

(27)  In March 2015, the European Council called for options for voluntary demand aggregation mechanisms to be assessed in full compliance with World Trade Organisation ('WTO') law and Union competition rules. This would enable Member States and natural gas undertakings to explore the potential benefits of collective purchasing of natural gas as a way of addressing supply shortage situations in line with those rules.

(27)  In March 2015 the European Council called for the assessment of options for voluntary demand aggregation mechanism in full compliance with World Trade Organisation ('WTO') and Union competition rules. In that context, Member States and natural gas undertakings could explore potential benefits linked to collective purchasing of gas in order to address supply shortage situations in line with the WTO and Union competition rules.

Amendment    32

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28)  Demand-side measures, such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order, may have a valuable role to play in ensuring energy security, if they can be applied quickly and significantly reduce demand in response to a supply disruption. More should be done to promote efficient energy use, particularly where demand-side measures are needed. The environmental impact of any demand and supply-side measures proposed must be taken into account, with preference being given, as far as possible, to measures that have least impact on the environment. At the same time, security of supply and competitiveness aspects must be taken into account.

(28)  Demand-side measures, such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient manner, as well as a market-based system for industrial consumers, such as the voluntary reduction of demand offered by industrial consumers against fair and timely financial compensation, may have a valuable role to play in ensuring energy security, if they can be applied quickly and significantly reduce demand in response to a supply disruption. More should be done to promote efficient energy use, particularly where demand-side measures are needed. The environmental impact of any demand and supply-side measures proposed must be taken into account, with preference being given, as far as possible, to measures that have least impact on the environment. At the same time, the security of gas supply should remain a priority for measures undertaken in the case of disruption to supply, while competitiveness aspects should also be properly taken into account.

Amendment    33

Proposal for a regulation

Recital 29

Text proposed by the Commission

Amendment

(29)  When drawing up and implementing the preventive action plan and the emergency plan, the competent authorities should, at all times, take account of the safe operation of the gas system at regional and national levels. They must address and set out in those plans the technical constraints affecting the operation of the network, including any technical and safety reasons for reducing flows in the event of an emergency.

(29)  When drawing up and implementing the preventive action plan and the emergency plan, the competent authorities should, at all times, take account of the safe operation of the gas system at national and regional levels. They should address and set out in those plans the technical constraints affecting the operation of the network, including any technical and safety reasons for reducing flows in the event of an emergency.

Amendment    34

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

(30)  Low calorific gas is supplied in certain regions in the Union. Given its characteristics, it cannot be used in appliances designed for high calorific gas. It is, however, possible to use high calorific gas in appliances designed for low calorific gas, provided that it has been converted into low calorific gas, for instance by adding nitrogen. The specific characteristics of low calorific gas should be considered at national and regional levels and should be taken into account in the risk assessment and the preventive action and emergency plans.

(30)  Low calorific gas is supplied in certain regions in the Union. Its characteristics prevent it from being used in appliances designed for high calorific gas. It is, however, possible to convert high calorific gas for use in appliances designed for low calorific gas, for instance by adding nitrogen. The specific characteristics of low calorific gas should be considered at national and regional levels and should be taken into account in the risk assessment and the preventive action and emergency plans.

Amendment    35

Proposal for a regulation

Recital 31

Text proposed by the Commission

Amendment

(31)  It is necessary to ensure the predictability of the action to take in the event of an emergency, allowing all market participants sufficient opportunity to react and also prepare for such circumstances. As a rule, the competent authorities should therefore abide by their emergency plan. In duly justified exceptional circumstances, they should be allowed to take action which deviates from those plans. It is also important to make the way in which emergencies are announced more transparent and predictable. Information on the system balancing position (the overall status of the transmission network), the framework for which is set out in Commission Regulation (EU) No 312/201419, may play an important role in this regard. That information should be available to competent authorities and the national regulatory authorities, if the latter are not the competent authority on a real time basis.

(31)  It is necessary to ensure the predictability of actions to be taken in the event of an emergency, granting all market participants sufficient opportunity to prepare for such situations and react to them. As a rule, the competent authorities should therefore comply with their emergency plan. In exceptional circumstances and on reasonable grounds, they should be allowed to take action which deviates from those plans. The manner in which emergencies are announced should be more transparent and predictable. Information on the system balancing position (the overall status of the transmission network), the framework for which is laid down in Commission Regulation (EU) No 312/201419, may play an important role in this regard. That information should be available on a real-time basis to the competent authorities and to the national regulatory authorities, if they are not the competent authorities.

__________________

__________________

19 Commission Regulation (EU) No 312/2014 of 26 March 2014 establishing a Network Code on Gas Balancing of Transmission Networks (OJ L 91, 27.3.2014, p.15).

19 Commission Regulation (EU) No 312/2014 of 26 March 2014 establishing a Network Code on Gas Balancing of Transmission Networks (OJ L 91, 27.3.2014, p.15).

Amendment    36

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32)  The preventive action plans and emergency plans should be updated regularly and published. They should be subject to peer review. The peer review process allows for early identification of inconsistencies and measures that could endanger other Member States' security of supply, thereby ensuring that plans from different regions are consistent with one another. It also enables Member States to share best practice.

(32)  The preventive action plans and emergency plans should be updated on a regular basis and published. They should be subject to peer review. Such peer review should be monitored by the Commission. The peer review process is intended to allow for early identification of inconsistencies and measures that could endanger the security of gas supply of other Member States, thereby ensuring consistency of the plans across different regions. It also enables Member States to share best practice. The plans should be consistent with all Energy Union objectives.

Amendment    37

Proposal for a regulation

Recital 33

Text proposed by the Commission

Amendment

(33)  To ensure that the emergency plans are always up-to-date and effective, Member States should carry out tests between the updates of the plans by simulating high and medium-impact scenarios and responses in real time. The competent authorities should present the test results at the Gas Coordination Group.

(33)  To ensure that the emergency plans are always up-to-date and effective, the competent authorities should carry out tests between the updates of the plans by simulating high and medium-impact scenarios and responses in real time. The competent authorities should present the test results at the Gas Coordination Group.

Amendment    38

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34)  Mandatory comprehensive templates including all the risks to be covered by the risk assessment and all the components of the preventive action plans and emergency plans are needed to facilitate the risk assessment and preparation of the plans, their peer review and their assessment by the Commission.

(34)  Mandatory comprehensive templates including all the risks to be covered by the risk assessment and all the components of the preventive action plans and the emergency plans are needed to facilitate the risk assessment and preparation of the plans, their peer review and their assessment by the Commission.

Amendment    39

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35)  To facilitate communication between Member States and the Commission, the risk assessments, the preventive action plans, the emergency plans and all other documents and information exchanges covered by this Regulation must be notified using a standard electronic notification system.

(35)  To facilitate communication between Member States and the Commission, the risk assessments, the preventive action plans, the emergency plans and all other documents and information exchanges provided for in this Regulation should be notified using a secure and standardised electronic notification system.

Amendment    40

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36)  As demonstrated by the October 2014 stress test, solidarity is needed to ensure security of supply across the Union and to keep overall costs to a minimum. If an emergency is declared in any Member State, a two-step approach should be applied to strengthen solidarity. Firstly, all Member States which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid. Secondly, if the first step fails to provide the necessary supply, further measures by neighbouring Member States, even if not in an emergency situation, should be triggered to ensure the supply to households, essential social services and district heating installations in the Member State experiencing the emergency. Member States should identify and describe the details of these solidarity measures in their emergency plans, ensuring fair and equitable compensation of the natural gas undertakings.

(36)  As demonstrated by the October 2014 stress test, solidarity is needed to ensure security of supply across the Union and to keep overall costs to a minimum. If an emergency is declared in any Member State, measures by neighbouring Member States, even if not in an emergency situation, should be taken to ensure the supply to protected customers in the Member State experiencing the emergency. Member States should identify and describe the details of these solidarity measures in their emergency plans, ensuring a fair and appropriate level of compensation for natural gas undertakings that fully reflects the market value of the costs related to the interruption of supplies.

Amendment    41

Proposal for a regulation

Recital 37

Text proposed by the Commission

Amendment

(37)  European solidarity should also, where needed, take the form of civil protection assistance provided by the Union and its Member States. Such assistance should be facilitated and coordinated by the Union Civil Protection Mechanism established by Decision No 1313/2013/EU of the European Parliament and of the Council20 aiming to strengthen the cooperation between the Union and the Member States and to facilitate coordination in the field of civil protection in order to improve the effectiveness of systems for preventing, preparing for, and responding to natural and man-made disasters.

(37)  European solidarity should also, where needed, take the form of civil protection assistance provided by the Union and its Member States. Such assistance should be facilitated and coordinated by the Union Civil Protection Mechanism established by Decision No 1313/2013/EU of the European Parliament and of the Council20 which aims to strengthen the cooperation between the Union and the Member States and to facilitate coordination in the field of civil protection in order to improve the effectiveness of systems for preventing, preparing for, and responding to natural and man-made disasters.

__________________

__________________

20 Decision No 1313/2013/EU of the European parliament and of the Council of 17 December 2013 on a Union Civil protection Mechanism (OJ L 347, 20.12.2013, p. 24).

20 Decision No 1313/2013/EU of the European parliament and of the Council of 17 December 2013 on a Union Civil protection Mechanism (OJ L 347, 20.12.2013, p. 24).

Amendment    42

Proposal for a regulation

Recital 38

Text proposed by the Commission

Amendment

(38)  To assess the security of supply situation of a given Member State or region or of the Union, access to the relevant information is essential. In particular, Member States and the Commission need regular access to information from natural gas undertakings regarding the main parameters of the gas supply as a fundamental input in the design of the security of supply policies. Under duly justified circumstances, irrespective of a declaration of emergency, access should also be possible to additional information needed to assess the overall gas supply situation. That additional information would typically be non-price-related gas delivery information, e.g. minimum and maximum gas volumes, delivery points or supply margins. It could, for example, be requested in the event of changes in the pattern of the gas supply to a given buyer or buyers in a Member State which would not be expected if the markets were functioning normally and which could affect the gas supply of the Union or parts of it.

(38)  To assess the security of gas supply situation of a Member State, a region or the Union, access to the relevant information is essential. In particular, Member States and the Commission need regular access to information from natural gas undertakings regarding the main parameters of the gas supply, including accurate measures of the available stored reserves, as a fundamental input in the design of security of gas supply policies. On reasonable grounds, irrespective of a declaration of emergency, access should also be possible to additional information needed to assess the overall gas supply situation. That additional information would typically be non-price-related gas delivery information, e.g. minimum and maximum gas volumes, delivery points or supply margins. It could, for example, be requested in the event of changes in the pattern of the gas supply to a given buyer or buyers in a Member State which would not be expected if the markets were functioning normally and which could affect the gas supply of the Union or parts of it. Information, which the gas undertaking considers to be confidential should be treated as such.

Amendment    43

Proposal for a regulation

Recital 39

Text proposed by the Commission

Amendment

(39)  In March 2015, the European Council concluded that gas supply contracts with suppliers from third countries should be made more transparent and compatible with the Union energy security provisions. In this context an efficient and targeted mechanism for Member States' access to key gas supply contracts should ensure a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur. Under that mechanism certain key gas supply contracts should be automatically notified, immediately after their conclusion, to the Member States. However, any obligation to notify a contract automatically needs to be proportionate. Applying this obligation to contracts between a supplier and a buyer covering 40% of the national market strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants. This does not mean that other gas supply contracts are not relevant to security of supply. Accordingly, Member States should have the right to request other contracts which might negatively affect security of supply of a Member State or region or of the Union as a whole. The Commission should have the same access to the gas supply contracts as Member States, given its role in assessing the consistency and effectiveness of the preventive action plans and emergency plans to address risks to security of supply at national, regional and EU level. The Commission may call on the Member States to amend the plans so as to take account of the information obtained from the contracts. The confidentiality of commercially sensitive information should be ensured. Improved Commission access to information on commercial contracts should not affect the Commission's ongoing efforts to monitor the gas market, and the Commission should intervene if violations of the Union law are identified. The provisions of this Regulation should be without prejudice to the right of the Commission to launch infringement proceedings in accordance with Article 258 of the Treaty on the Functioning of the European Union (TFEU) and to enforce competition rules, including state aid.

(39)  Completing the internal energy market will create a level playing field, ensuring that all energy supply contracts throughout the Union are based on market prices and competition rules. In March 2015, the European Council concluded that gas supply contracts with suppliers from third countries should be made more transparent and compatible with the Union energy security provisions. In this context an efficient and targeted mechanism for Member States' access to key gas supply contracts should ensure a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur. Under that mechanism certain key gas supply contracts should be automatically notified, immediately after their conclusion, to the Member States. However, any obligation to notify a contract automatically needs to be proportionate. Applying this obligation to contracts between a supplier or its affiliates and a buyer or its affiliates that jointly cover at least 40 % of imports from third countries to the Member State strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants. This does not automatically imply that other gas supply contracts are not relevant to security of supply. Accordingly, Member States should have the right to request other contracts which might negatively affect security of supply of a Member State or a region or the Union. The Commission should have the same access to the gas supply contracts as Member States, given its role in assessing the consistency and effectiveness of the preventive action plans and the emergency plans to address risks to security of supply at national, regional and Union level. The Commission should be able to request Member States to amend the plans so as to take account of the information obtained from the contracts. The confidentiality of commercially sensitive information should be ensured. Increased Commission access to information on commercial contracts should not affect the Commission's ongoing efforts to monitor the gas market, and the Commission should intervene if violations of the Union law are identified. The provisions of this Regulation should be without prejudice to the right of the Commission to launch infringement proceedings in accordance with Article 258 of the Treaty on the Functioning of the European Union (TFEU) and to enforce competition rules, including with regard to State aid.

Amendment    44

Proposal for a regulation

Recital 41

Text proposed by the Commission

Amendment

(41)  One of the Union goals is to strengthen the Energy Community that would ensure effective implementation of the Union energy acquis, energy market reforms and incentivising investments in the energy sector by closer integration of the Union and Energy Community energy markets. This entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the Energy Community Contracting Parties. Furthermore, the Commission Communication on the short term resilience of the European gas system from October 2014 refers to the need to apply internal energy market rules on the flow of energy between the Union Member States and the Energy Community Contracting Parties. In this regard, in order to ensure an efficient crisis management on borders between the Union Member States and the Contracting Parties, the necessary arrangements following the adoption of a Joint Act should be set so that specific cooperation with any individual Energy Community Contracting Party can take place once the required mutual provisions have been duly put into place.

(41)  One of the Union goals is to strengthen the Energy Community in order to ensure effective implementation of the Union energy acquis, energy market reforms and incentives to invest in the energy sector by closer integration of the Union and Energy Community energy markets. This also entails introducing common crisis management by proposing preventive action plans and emergency plans at the regional level including the Energy Community Contracting Parties. Furthermore, the Commission Communication of 16 October 2014 on the short term resilience of the European gas system refers to the need to apply internal energy market rules on the flow of energy between the Union Member States and Energy Community Contracting Parties. In this regard, in order to ensure efficient crisis management on borders between the Union Member States and the Energy Community Contracting Parties, necessary arrangements following the adoption of a Joint Act should be set so that specific cooperation with any individual Energy Community Contracting Party can take place once the required mutual provisions have been duly put into place.

Amendment    45

Proposal for a regulation

Recital 41 a (new)

Text proposed by the Commission

Amendment

 

(41 a)  The implementation of the solidarity measures with the Energy Community Contracting Parties should be based on a Union approach in order to avoid the Members States which neighbour the Energy Community Contracting Parties from carrying out exclusively the necessary emergency plans.

Amendment    46

Proposal for a regulation

Recital 42

Text proposed by the Commission

Amendment

(42)  Since gas supplies from third countries are central to the security of the Union gas supply, the Commission should coordinate action with regard to third countries, work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the Union. The Commission should be entitled to deploy a task force to monitor gas flows into the Union in crisis situations, in consultation with the third countries involved, and, where a crisis arises from difficulties in a third country, to act as mediator and facilitator.

(42)  Since gas supplies from third countries are central to the security of the Union gas supply, the Commission should coordinate action with regard to third countries, work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the Union. The Commission should permanently monitor gas flows into the Union. Where a crisis arises, the Commission should, after consulting the third countries involved, act as mediator and facilitator. The Union should also be able to act preventively, before the declaration of a crisis.

Amendment    47

Proposal for a regulation

Recital 43

Text proposed by the Commission

Amendment

(43)  Where there is reliable information on a situation outside the Union that threatens the security of supply of one or several Member States and that may trigger an early warning mechanism involving the Union and a third country, the Commission should inform the Gas Coordination Group without delay and the Union should take appropriate action to try to defuse the situation.

(43)  Where a situation occurs outside the Union that is likely to threaten the security of supply of one or several Member States and that may trigger an early warning mechanism involving the Union and a third country, the Commission should inform the Gas Coordination Group without delay and the Union should take appropriate action to defuse the situation.

Amendment    48

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44)  The Member States acting on their own cannot satisfactorily achieve the objective of this Regulation, namely to guarantee a secure gas supply within the Union. Given the scale or effects of the action, it is better achieved at Union level. The Union may therefore adopt measures, in accordance with the principle of subsidiarity set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality set out in that Article, this Regulation does not go beyond what is necessary to achieve that objective.

(44)  Since the objective of this Regulation, namely to guarantee a secure gas supply within the Union, cannot be sufficiently achieved by Member States acting on their own, but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary to achieve that objective.

Amendment    49

Proposal for a regulation

Recital 45

Text proposed by the Commission

Amendment

(45)  To allow for a swift Union response to changing circumstances as regards security of gas supply, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amendment of regions and templates for risk assessment and plans. It is particularly important that the Commission carry out appropriate consultations during its preparatory work, including at expert level. When preparing and drawing up delegated acts, it should ensure that relevant documents are simultaneously sent to the European Parliament and the Council, in good time and in the appropriate manner.

(45)  In order to allow for a swift Union response to changing circumstances with regard to security of gas supply, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amendment of templates for risk assessments, preventive action plans and emergency plans. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level and involving the competent authorities and the national regulatory authorities where they are not the competent authorities, and that those consultations be concluded in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment    50

Proposal for a regulation

Recital 46

Text proposed by the Commission

Amendment

(46)  Regulation (EU) No 994/2010 should be repealed. To avoid a gap, the preventive action plans and emergency plans drawn up under Regulation (EC) No 994/2010 should remain in force until the new preventive action plans and emergency plans draw up under this Regulation are adopted for the first time.

(46)  Regulation (EU) No 994/2010 should be repealed. To avoid a gap, the preventive action plans and the emergency plans drawn up pursuant to Article 4 of Regulation (EC) No 994/2010 should remain in force until the new preventive action plans and emergency plans drawn up pursuant to this Regulation are adopted for the first time.

Amendment    51

Proposal for a regulation

Article 1

Text proposed by the Commission

Amendment

This Regulation establishes provisions aimed at safeguarding the security of gas supply by ensuring the proper and continuous functioning of the internal market in natural gas ("gas"), by allowing for exceptional measures to be implemented when the market can no longer deliver the required gas supplies and by providing for a clear definition and attribution of responsibilities among natural gas undertakings, the Member States and the Union regarding both preventive action and the reaction to concrete disruptions of supply. This Regulation also provides transparent mechanisms, in a spirit of solidarity, for the coordination of planning for, and response to, an emergency at Member State, regional and Union levels.

This Regulation establishes provisions aimed at safeguarding, in the spirit of solidarity, the security of gas supply by ensuring the proper and continuous functioning of the internal market in natural gas ("gas"), based on credible gas demand trends, by allowing for exceptional measures to be implemented when the market can no longer deliver the required gas supplies to the protected customers and by providing for a clear definition and attribution of responsibilities among natural gas undertakings, the Member States and the Union regarding both preventive action and immediate reaction to concrete disruptions of supply, either at the source or in transit. This Regulation also provides for transparent mechanisms for the coordination of planning for, and response to, an emergency at Member State, regional and Union level.

Amendment    52

Proposal for a regulation

Article 1 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

This Regulation also encourages preventive measures reducing gas demand, including through measures enhancing energy efficiency and increasing the share of renewable energy, in order to decrease the Union's dependence on gas imports.

Amendment    53

Proposal for a regulation

Article 2 – paragraph 2 – point 1 – introductory part

Text proposed by the Commission

Amendment

(1)  'protected customer’ means a household customer connected to a gas distribution network and, in addition, where the Member State concerned so decides, may also mean one or more of the following:

(1)  'protected customer' means a household, an essential social service or, to the extent that it delivers heating to household customers and essential social services and is not able to switch to another fuel, a district heating installation, which is connected to a gas distribution network;

Amendment    54

Proposal for a regulation

Article 2 – paragraph 2 – point 1 – point a

Text proposed by the Commission

Amendment

(a)  a small or medium-sized enterprise, provided that it is connected to a gas distribution network, or an essential social service, provided that it is connected to a gas distribution or transmission network, and provided that such enterprises or services do not represent jointly more than 20 % of the total annual final gas consumption in that Member State;

deleted

Amendment    55

Proposal for a regulation

Article 2 – paragraph 2 – point 1 – point b

Text proposed by the Commission

Amendment

(b)  a district heating installation to the extent that it delivers heating to household customers or to the enterprises or services referred to in point (a) provided that such installation is not able to switch to other fuels and is connected to a gas distribution or transmission network;

deleted

Amendment    56

Proposal for a regulation

Article 2 – paragraph 2 – point 3 a (new)

Text proposed by the Commission

Amendment

 

(3 a)  "emergency supply corridors" means identified Union gas supply routes that help Member States to better mitigate the effects of potential supply or infrastructure disruption, thereby complementing and facilitating the regional approach as referred to in Annex I by providing information for the preventive action and emergency plans.

Amendment    57

Proposal for a regulation

Article 2 – paragraph 2 – point 3 b (new)

Text proposed by the Commission

Amendment

 

(3 b)  'competent authority' means a national governmental authority or a national regulatory authority designated in accordance with Article 3(2);

Amendment    58

Proposal for a regulation

Article 3 – paragraph 1

Text proposed by the Commission

Amendment

1.  Security of gas supply shall be a shared responsibility of natural gas undertakings, Member States, notably through their competent authorities, and the Commission, within their respective areas of activities and competence.

1.  Security of gas supply shall be a shared responsibility of natural gas undertakings, Member States, in particular through their competent authorities, and the Commission, within their respective areas of activities and competence.

Amendment    59

Proposal for a regulation

Article 3 – paragraph 3

Text proposed by the Commission

Amendment

3.  Each Member State shall notify to the Commission without delay the name of the competent authority and any changes thereto. Each Member State shall make the name of the competent authority public.

3.  Each Member State shall notify to the Commission without delay, and shall make public, the name of its competent authority and any changes thereto.

Amendment    60

Proposal for a regulation

Article 3 – paragraph 4

Text proposed by the Commission

Amendment

4.  When implementing the measures provided for in this Regulation, the competent authority shall establish the roles and responsibilities of the different actors involved in such a way as to ensure that a three-level approach is respected which involves first the relevant natural gas undertakings and industry, then Member States at national or regional level, and then the Union.

4.  When implementing the measures provided for in this Regulation, the competent authority shall establish the roles and responsibilities of the different actors involved in such a way as to ensure a three-level approach which involves first the relevant natural gas undertakings, electricity undertakings where appropriate, and industry, then Member States at national or regional level, and then the Union.

Amendment    61

Proposal for a regulation

Article 3 – paragraph 5

Text proposed by the Commission

Amendment

5.  The Commission shall, where appropriate, coordinate the action of the competent authorities at regional and Union levels, as set out in this Regulation, inter alia, through the Gas Coordination Group referred to in Article 14 or the crisis management group referred to in Article 11(4), in particular in the event of a regional or Union emergency as defined in Article 11(1).

5.  The Commission shall coordinate the action of the competent authorities at regional and Union levels, as set out in this Regulation, inter alia, through the Gas Coordination Group referred to in Article 14 or the crisis management group referred to in Article 11(4), in particular in the event of a regional or Union emergency pursuant to Article 11(1).

Amendment    62

Proposal for a regulation

Article 3 – paragraph 6

Text proposed by the Commission

Amendment

6.  The measures to ensure the security of supply contained in the preventive action plans and in the emergency plans shall be clearly defined, transparent, proportionate, non-discriminatory and verifiable, shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other Member States or of the Union as a whole.

6.  The measures to ensure the security of gas supply contained in the preventive action plans and in the emergency plans shall be clearly defined, to the extent possible market based, transparent, proportionate, non-discriminatory verifiable, sustainable and compatible with the Union's climate and energy objectives, shall also consider energy efficiency and renewable energy sources to be a solution to improve the Union's energy security, shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other Member States, regions or the Union and shall limit the risk of stranded assets.

Amendment    63

Proposal for a regulation

Article 3 – paragraph 7 – point b

Text proposed by the Commission

Amendment

(b)  existing and planned interconnections and interconnection capacity between Member States as well as the supply patterns;

(b)  existing and planned interconnections and interconnection capacity between Member States, existing interconnections across third countries, as well as the supply patterns;

Amendment    64

Proposal for a regulation

Article 3 – paragraph 7 – point c a (new)

Text proposed by the Commission

Amendment

 

(c a)  ability to satisfy gas demand of protected consumers during interruption from the single largest gas supplier;

Amendment    65

Proposal for a regulation

Article 3 – paragraph 7 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

 

The responsibility of individual Member States to comply with their national security of supply standards shall be without prejudice to the regional approach nor to the possibility of inter-regional cooperation outside the regions established in Annex I.

Amendment    66

Proposal for a regulation

Article 3 – paragraph 7 – subparagraph 3

Text proposed by the Commission

Amendment

The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to amend Annex I based on the criteria set out in the first subparagraph of this paragraph if the circumstances warrant a need for a change of a region.

deleted

Amendment    67

Proposal for a regulation

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

1.  Each Member State or, where a Member State so provides, the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure, the technical capacity of the remaining infrastructure, determined according to the N – 1 formula as provided in point 2 of Annex II, is able, without prejudice to paragraph 2 of this Article, to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years. This is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in Directive 2009/73/EC and Regulation (EC) No 715/2009.

1.  Each Member State or, where a Member State so provides, the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure, the technical capacity of the remaining infrastructure, determined according to the N – 1 formula as provided in point 2 of Annex II, is able, without prejudice to paragraph 2 of this Article, to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years. This should be done having regard to gas consumption trends, taking the long-term impacts of energy efficiency measures and the utilisation rates of existing capacities into account. This is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in Directive 2009/73/EC and Regulation (EC) No 715/2009.

Amendment    68

Proposal for a regulation

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

2.  The obligation to ensure that the remaining infrastructure has the technical capacity to satisfy total gas demand, as referred to in paragraph 1, shall also be considered to be fulfilled where the competent authority demonstrates in the preventive action plan that a supply disruption may be sufficiently compensated for, in a timely manner, by appropriate market-based demand-side measures. For that purpose, the formula provided in point 4 of Annex II shall be used.

2.  The obligation to ensure that the remaining infrastructure has the technical capacity to satisfy total gas demand, as referred to in paragraph 1, shall also be considered to be fulfilled where the competent authority demonstrates in the preventive action plan that a supply disruption may be sufficiently compensated for, in a timely manner, by appropriate demand-side measures. For that purpose, the formula provided in point 4 of Annex II shall be used.

Amendment    69

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

3.  Where appropriate, according to the risk assessment referred to in Article 6, the competent authorities of neighbouring Member States may agree to jointly fulfil the obligation set out in paragraph 1 of this Article. In such case the competent authorities shall provide in the preventive action plan the calculation of the N-1 formula together with an explanation how the agreed arrangements fulfil this obligation. Point 5 of Annex II shall apply.

3.  Where appropriate, in accordance with the risk assessment referred to in Article 6, the competent authorities of neighbouring Member States may agree to jointly fulfil the obligation set out in paragraph 1 of this Article. In such case the competent authorities shall provide in the preventive action plan the calculation of the N-1 formula together with an explanation how the agreed arrangements fulfil this obligation. Point 5 of Annex II shall apply.

Amendment    70

Proposal for a regulation

Article 4 – paragraph 4 – point b

Text proposed by the Commission

Amendment

(b)  where an exemption from that obligation has been granted.

(b)  where an exemption from that obligation has been granted, after detailed assessment and after consulting other Member States and with the Commission.

Amendment    71

Proposal for a regulation

Article 4 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

 

4 a.  Member States shall ensure that, as a first step, the market is always tested in a transparent, detailed and non-discriminatory manner, to assess whether the investment intended to fulfil the obligations set out in paragraph 4 is required.

Amendment    72

Proposal for a regulation

Article 4 – paragraph 5

Text proposed by the Commission

Amendment

5.  National regulatory authorities shall take into account the efficiently incurred costs of fulfilling the obligation set out in paragraph 1 and the costs of enabling permanent bi-directional capacity so as to grant appropriate incentives when fixing or approving, in a transparent and detailed manner, the tariffs or methodologies in accordance with Article 41(8) of Directive 2009/73/EC and Article 13 of Regulation (EC) No 715/2009.

5.  National regulatory authorities shall take into account the efficiently incurred costs of fulfilling the obligation set out in paragraph 1, including how energy efficiency measures to reduce gas demand could contribute to the most cost-effective approach to fulfilling the N-1 formula, and the costs of enabling permanent bi-directional capacity so as to grant appropriate incentives when fixing or approving, in a transparent and detailed manner, the tariffs or methodologies in accordance with Article 41(8) of Directive 2009/73/EC and Article 13 of Regulation (EC) No 715/2009.

Amendment    73

Proposal for a regulation

Article 4 – paragraph 6

Text proposed by the Commission

Amendment

6.  In so far as an investment for enabling or enhancing permanent bi-directional capacity is not required by the market and where that investment incurs costs in more than one Member State or in one Member State for the benefit of another Member State, the national regulatory authorities of all Member States concerned shall jointly decide on cost allocation before any investment decision is taken. The cost allocation shall in particular take into account the proportion of the benefits of the infrastructure investments for the increase of security of supply of the Member States concerned as well as investments already made in the infrastructure in question.

6.  In so far as an investment for enabling or enhancing permanent bi-directional capacity is not required by the market and where that investment incurs costs in more than one Member State or in one Member State for the benefit of another Member State, the national regulatory authorities of all Member States concerned shall jointly decide on cost allocation in accordance with Article 12 of Regulation(EU) No 347/2013 before any investment decision is taken and explore also the possibility and viability of Union funding. The cost allocation shall in particular take into account the proportion of the benefits of the infrastructure investments for the increase of the security of gas supply of the Member States concerned as well as investments already made in the infrastructure in question.

Amendment    74

Proposal for a regulation

Article 4 – paragraph 7

Text proposed by the Commission

Amendment

7.  The competent authority shall ensure that any new transmission infrastructure contributes to the security of supply through the development of a well-connected network, including, where appropriate, by means of a sufficient number of cross-border entry and exit points according to market demand and the risks identified. The competent authorities shall assess in the risk assessment whether internal bottlenecks exist and whether national entry capacity and infrastructures, in particular transmission networks, are capable of adapting the national and cross border gas flows to the scenario of the disruption of the single largest gas infrastructure at national level and the single largest gas infrastructure of common interest to the region identified in the risk assessment.

7.  The competent authority shall ensure that any new transmission infrastructure contributes to the security of supply through the development of a well-connected network, including, where appropriate, by means of a sufficient number of cross-border entry and exit points according to market demand and the risks identified. The competent authorities shall assess in the risk assessment whether, with an integrated perspective on gas and electricity systems, internal bottlenecks exist and whether national entry capacity and infrastructures, in particular transmission networks, are capable of adapting the national and cross border gas flows to the scenario of the disruption of the single largest gas infrastructure at national level and the single largest gas infrastructure of common interest to the region identified in the risk assessment.

Amendment    75

Proposal for a regulation

Article 4 – paragraph 7 a (new)

Text proposed by the Commission

Amendment

 

7 a.  The competent authority, using the same criteria, shall ensure that demand-side measures meet the same conditions and contribute on an equal and cost-effective basis to the security of supply.

Amendment    76

Proposal for a regulation

Article 4 – paragraph 7 b (new)

Text proposed by the Commission

Amendment

 

7 b.  Gas flow through bi-directional interconnection points to a Member State which has declared an emergency shall have priority over gas flow to other points of the system of the Member State from which the gas is supplied and which has not declared an emergency.

Amendment    77

Proposal for a regulation

Article 4 – paragraph 8 – introductory part

Text proposed by the Commission

Amendment

8.  Luxembourg, Slovenia and Sweden shall, by way of exception, not be bound by, but shall endeavour to meet, the obligation set out in paragraph 1 of this Article, while ensuring the gas supplies to protected customers in accordance with Article 5. That exception shall apply for as long as:

8.  By way of derogation from paragraph 1 of this Article, Luxembourg, Slovenia and Sweden shall not be bound by, but shall endeavour to meet, the obligation set out in paragraph 1 of this Article, while ensuring the gas supplies to protected customers in accordance with Article 5. That derogation shall apply for as long as:

Amendment    78

Proposal for a regulation

Article 4 – paragraph 8 – subparagraph 2

Text proposed by the Commission

Amendment

Luxembourg, Slovenia and Sweden shall ensure, in a transparent, detailed and non-discriminatory manner, regular market testing for investments in infrastructure and make public the results of those tests. They shall inform the Commission of any change in respect of the conditions set out in that subparagraph. The exception laid down in the first subparagraph shall cease to apply where at least one of those conditions is no longer fulfilled.

Luxembourg, Slovenia and Sweden shall ensure, in a transparent, detailed and non-discriminatory manner, regular market testing for investments in infrastructure and make public the results of those tests. They shall inform the Commission of any change in respect of the conditions set out in that subparagraph. The derogation provided for in the first subparagraph shall cease to apply where at least one of those conditions is no longer fulfilled.

Amendment    79

Proposal for a regulation

Article 5 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authority shall require the natural gas undertakings, that it identifies, to take measures to ensure the supply of gas to the protected customers of the Member State in each of the following cases:

1.  The national regulatory authority shall require the natural gas undertakings, that it identifies, to take measures, in close collaboration with electricity undertakings, to ensure that the supply of gas necessary for the security and health of the protected customers of the Member State is maintained in each of the following cases:

Amendment    80

Proposal for a regulation

Article 5 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

No later than 31 March 2017 Member States shall notify the Commission their definition of protected customers, the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that Member State. Where a Member State includes in its definition of protected customers the categories referred to in point (a) or (b) of Article 2 (1) it shall specify in the notification to the Commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas.

No later than 31 March 2017 Member States shall notify the Commission of the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that Member State, as well as the extent to which the gas supply to the protected customers of that Member State may influence cross-border flows to other Member States.

Amendment    81

Proposal for a regulation

Article 5 – paragraph 1 – subparagraph 3

Text proposed by the Commission

Amendment

The competent authority shall identify the natural gas undertakings referred to in the first subparagraph and specify them in the preventive action plan. Any new measures envisaged to ensure the supply standard shall comply with the procedure established in Article 8(4).

The competent authority shall identify the natural gas undertakings referred to in the first subparagraph of this paragraph and specify them in the preventive action plan. Any new measures envisaged to ensure the supply standard shall comply with the procedure established in Article 8(4).

Amendment    82

Proposal for a regulation

Article 5 – paragraph 1 – subparagraph 4

Text proposed by the Commission

Amendment

Member States may comply with the obligation laid down in the first subparagraph by replacing the gas with different source of energy to the extent that the same level of protection is achieved.

Member States may comply with the obligation laid down in the first subparagraph through the implementation of energy efficiency measures or by replacing the gas with a different source of energy, inter alia renewable energy sources, to the extent that the same level of protection is achieved.

Amendment    83

Proposal for a regulation

Article 5 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1 a.  Without prejudice to their rights and obligations under Article 12, Member States may decide to apply the provisions on the supply standard laid down in paragraph 1 to:

 

(a)   small or medium-sized enterprises, provided that they are connected to a gas distribution network, and provided that they do not represent, jointly, more than 20 % of the total annual final gas consumption in that Member State;

 

(b)   district heating installations, to the extent that they deliver heating to the enterprises referred to in point (a) and are not able to switch to other fuels and are connected to a gas distribution or transmission network.

 

Where a Member State decides to apply this Article to the categories of customers referred to in point (a) or (b) of the first subparagraph, it shall specify in its notification to the Commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final gas consumption.

 

Entities referred to in points (a) and (b) of the first subparagraph shall not be considered to be protected customers for the purpose of this Regulation.

Amendment    84

Proposal for a regulation

Article 5 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

A justification of the compliance of the measures referred to in the first subparagraph with the conditions set out in that paragraph shall be included in the preventive action plan. Additionally, any new measure referred to in the first subparagraph shall comply with the procedure established in Article 8(4).

Reasons for the compliance of the measures referred to in the first subparagraph of this paragraph with the conditions set out in that paragraph shall be included in the preventive action plan. Additionally, any new measure referred to in the first subparagraph shall comply with the procedure established in Article 8(4).

Amendment    85

Proposal for a regulation

Article 5 – paragraph 5

Text proposed by the Commission

Amendment

5.  Natural gas undertakings shall be allowed to meet their obligations under this Article at a regional or Union level, where appropriate. The competent authorities shall not require the standards laid down in this Article to be met based on infrastructure located only within its territory.

5.  Natural gas undertakings shall be allowed to meet their obligations under this Article at a regional or Union level, where appropriate. The competent authorities shall not require the standards laid down in this Article to be met based on infrastructure or demand-side measures located only within its territory.

Amendment    86

Proposal for a regulation

Article 5 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5 a.  When meeting the obligations under this Article, natural gas undertakings shall ensure that the delivery of gas is feasible.

Amendment    87

Proposal for a regulation

Article 5 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

 

6 a.  By ... [6 months after the date of entry into force of this Regulation] Member States shall establish measures to impose effective, proportionate and dissuasive fines on suppliers if they fail to comply with the supply standards laid down in paragraph 1.

Amendment    88

Proposal for a regulation

Article 6 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authorities of each region as listed in Annex I shall jointly make an assessment at regional level of all risks affecting the security of gas supply. The assessment shall take into account all relevant risks such as natural disasters, technological, commercial, social, political and other risks. The risk assessment shall be carried out by:

1.  The competent authorities of each region as listed in Annex I shall, in cooperation with any national regulatory authorities, jointly and afterconsulting the relevant stakeholders make an assessment at regional level of all risks affecting the security of gas supply ("risk assessment"). The assessment shall take into account all relevant risks such as: natural disasters, technological, geopolitical, environmental, commercial, social, political and other risks. The risk assessment shall be carried out by:

Amendment    89

Proposal for a regulation

Article 6 – paragraph 1 – point -a (new)

Text proposed by the Commission

Amendment

 

(-a)  taking into account and drawing appropriate conclusions from the results of the Union-wide simulation of supply and infrastructure scenarios carried out by ENTSO for Gas, after discussion in the Gas Coordination Group, as referred to in Article 10a.

Amendment    90

Proposal for a regulation

Article 6 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  taking into account all relevant national and regional circumstances, in particular market size, network configuration, actual flows, including outflows from the Member States concerned, the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system, the presence of production and storage and the role of gas in the energy mixes, in particular with respect to district heating and electricity generation and for the operation of industries, and safety and gas quality considerations;

(b)  taking into account all relevant national, regional and inter-regional circumstances, in particular market size, network configuration, demand and consumption trends, the utilisation rate of existing infrastructure, actual flows, including outflows from the Member States concerned, all cross-border interconnections, the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system, the presence of production and storage, including the penetration of biogas into the gas grid, and the role of gas in the energy mixes, in particular with respect to heating and cooling demand in the national or regional building stock and the district heating serving it, and electricity generation and for the operation of industries, and safety and gas quality considerations;

Amendment    91

Proposal for a regulation

Article 6 – paragraph 1 – point c – introductory part

Text proposed by the Commission

Amendment

(c)  running various scenarios of exceptionally high gas demand and supply disruption, taking into account the history, probability, season, frequency and duration of their occurrence and assessing their likely consequences, such as:

(c)  running various scenarios of demand reduction resulting from energy efficiency measures and exceptionally high gas demand and supply disruption, taking into account the history, probability, season, frequency and duration of their occurrence and assessing their likely consequences, such as:

Amendment    92

Proposal for a regulation

Article 6 – paragraph 1 – point c – point ii

Text proposed by the Commission

Amendment

(ii)  disruption of supplies from third country suppliers, as well as, where appropriate, geopolitical risks;

(ii)  disruption of gas supplies, inter alia from third country suppliers, as well as, where appropriate, geopolitical risks that may directly or indirectly affect the Member State by increased dependence or by one supplier achieving a dominant position on the Union gas market;

Amendment    93

Proposal for a regulation

Article 6 – paragraph 1 – point c – point ii a (new)

Text proposed by the Commission

Amendment

 

(ii a)  ability to satisfy the demand of protected customers in the region during supply disruption from the single largest supplier from a third country;

Amendment    94

Proposal for a regulation

Article 6 – paragraph 1 – point d a (new)

Text proposed by the Commission

Amendment

 

(d a)  taking into account risks relating to the control of infrastructure relevant to security of gas supply by natural gas undertakings in a third country, which may involve, inter alia, risks of under-investment, undermining diversification, misuse of existing infrastructure or an infringement of Union law;

Amendment    95

Proposal for a regulation

Article 6 – paragraph 1 – point e a (new)

Text proposed by the Commission

Amendment

 

(e a)  taking into account any relevant regional specificities.

Amendment    96

Proposal for a regulation

Article 6 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1 a.  The Commission may share experience gained in conducting a risk assessment in one region with other regions, where appropriate, and thereby contribute to ensuring also a cross-regional focus.

Amendment    97

Proposal for a regulation

Article 6 – paragraph 2 – subparagraph 1

Text proposed by the Commission

Amendment

2.  The competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this Article. Competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment. The Commission may have a facilitating role overall in the preparation of the risk assessment, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission may propose a cooperation mechanism for that region.

2.  On the basis of the regional cooperation of Member States pursuant to Article 3(7), the competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this Article. Competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment. The Commission shall have a facilitating role overall in the preparation of the risk assessment, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission shall propose a cooperation mechanism for that region.

Amendment    98

Proposal for a regulation

Article 6 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

Within the agreed cooperation mechanism each competent authority shall share and update one year before the deadline for the notification of the risk assessment all necessary national data necessary for the preparation of the risk assessment, notably for running the various scenarios referred to in point (c) of paragraph 1.

Within the agreed cooperation mechanism each competent authority shall share and update one year before the deadline for the notification of the risk assessment all necessary national data necessary for the preparation of the risk assessment, in particular for running the various scenarios referred to in point (c) of paragraph 1.

Amendment    99

Proposal for a regulation

Article 6 – paragraph 3

Text proposed by the Commission

Amendment

3.  The risk assessment shall be prepared in accordance with the template in Annex IV. The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to amend those templates.

3.  The risk assessment shall be prepared in accordance with the template in Annex IV. The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to amend those templates, taking into account the Member States’ implementation timeframes.

Amendment    100

Proposal for a regulation

Article 6 – paragraph 5

Text proposed by the Commission

Amendment

5.  The risk assessment once agreed by all Member States in the region shall be notified to the Commission for the first time no later than on 1 September 2018. The risk assessment shall be updated every four years unless circumstances warrant more frequent updates. The risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in Article 4 and of country-specific difficulties encountered in the implementation of new alternative solutions. It shall also build on the experience acquired through the simulation of the emergency plans contained in Article 9 (2).

5.  The risk assessment once agreed by all Member States in the region shall be notified to the Commission for the first time no later than on 1 September 2018. The risk assessment shall be updated every four years unless circumstances warrant more frequent updates. The risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in Article 4 and of country-specific difficulties encountered in the implementation of new alternative solutions including inter-regional interconnections. It shall also build on the experience acquired through the simulation of the emergency plans contained in Article 9 (2).

Amendment    101

Proposal for a regulation

Article 6 – paragraph 6

Text proposed by the Commission

Amendment

6.  By 1 November 2017 ENTSO for Gas shall carry out a Union wide simulation of supply and infrastructure disruption scenarios. The scenarios shall be defined by ENTSO for Gas in consultation with the Gas Coordination Group. The competent authorities shall provide ENTSO for Gas with the necessary data for the simulations such as peak demand values, production capacity and demand side measures. The competent authorities shall take into account the results of the simulations for the preparation of the risk assessments, preventive action plans and emergency plans. The Union-wide simulation of supply and infrastructure disruption scenarios shall be updated every four years unless circumstances warrant more frequent updates.

6.  The competent authorities shall take into account the results of the Union-wide simulations carried out by ENTSO for Gas in accordance with Article 10a(1) for the preparation of the risk assessments, preventive action plans and emergency plans. ENTSO for Gas shall lay out the methodology to be used for the simulation in a transparent manner and discuss it with the Gas Coordination Group. ENTSO for Gas shall furthermore distribute information gained by the early warning mechanism on a regular basis among the Gas Coordination Group. ENTSO for Gas shall also take into account the results of the Union-wide simulations for identifying the necessary investments to be made in the internal energy market at regional at inter-regional level.

Amendment    102

Proposal for a regulation

Article 6 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

 

6 a.  On the basis of all regional risk assessments, the Commission, in cooperation with the Gas Coordination Group, shall carry out an overall assessment for the Union as a whole and shall report the findings to the European Parliament and to the Council .

Amendment    103

Proposal for a regulation

Article 7 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authorities of the Member States of each region as listed in Annex I, after consulting the natural gas undertakings, the relevant organisations representing the interests of household and industrial gas customers, including electricity producers, and the national regulatory authorities, where they are not the competent authorities, shall establish jointly:

1.  The competent authorities of the Member States of each region, in cooperation with any national regulatory authorities, after consulting the natural gas undertakings, transmission system operators for electricity, the relevant organisations representing the interests of household and industrial gas customers, including electricity producers, the relevant organisations managing the Member States' energy demand and energy dependence and the national environmental agencies, shall establish jointly:

Amendment    104

Proposal for a regulation

Article 7 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a)  a preventive action plan containing the measures to be adopted to remove or mitigate the risks identified in the region, including risks of purely national dimension, in accordance with the risk assessment undertaken pursuant to Article 6 and in accordance with Article 8; and

(a)  a preventive action plan containing the measures including energy efficiency and demand-side measures, to be adopted to remove or mitigate the risks identified in the region, including risks of purely national dimension, in accordance with the risk assessment undertaken pursuant to Article 6 and in accordance with Article 8; and

Amendment    105

Proposal for a regulation

Article 7 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  an emergency plan containing the measures to be taken to remove or mitigate the impact of a gas supply disruption in the region, including events of purely national dimension, in accordance with Article 9.

(b)  an emergency plan containing the measures, including demand-side measures, such as closer coordination with the electricity sector, to be taken to remove or mitigate the impact of a gas supply disruption in the region, including events of purely national dimension, in accordance with Article 9.

Amendment    106

Proposal for a regulation

Article 7 – paragraph 1 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

 

The preventive action plans and the emergency plans shall take into account the results of the Union wide simulations carried out by ENTSO for Gas, including those for the Emergency Supply Corridors.

Amendment    107

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 3

Text proposed by the Commission

Amendment

Competent authorities shall regularly report to the Gas Coordination Group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans. In particular competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans. The Commission may have a facilitating role overall in the preparation of the plans, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission may propose a cooperation mechanism for that region. They shall ensure the regular monitoring of the implementation of such plans.

Competent authorities shall regularly report to the Gas Coordination Group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans. In particular competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans. The Commission shall have a facilitating role overall in the preparation of the plans, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission shall develop a cooperation mechanism for that region. They shall ensure the regular monitoring of the implementation of such plans.

Amendment    108

Proposal for a regulation

Article 7 – paragraph 3

Text proposed by the Commission

Amendment

3.  The preventive action plan and the emergency plan shall be developed in accordance with the templates contained in Annex V. The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to amend those templates.

3.  The preventive action plan and the emergency plan shall be developed in accordance with the templates contained in Annex V. The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to amend those templates, taking into account Member State implementation timeframes.

Amendment    109

Proposal for a regulation

Article 7 – paragraph 5 – subparagraph 2 – introductory part

Text proposed by the Commission

Amendment

The Commission shall issue an opinion to the competent authorities of the region with the recommendation to review the relevant preventive action plan or emergency plan if the plan is considered to contain one of the following elements:

The Commission shall issue an opinion to the competent authorities of the region with the recommendation to review the relevant preventive action plan or emergency plan if it considers that the plan:

Amendment    110

Proposal for a regulation

Article 7 – paragraph 5 – subparagraph 2 – point e a (new)

Text proposed by the Commission

Amendment

 

(e a)  is not in line with the Energy Union goals.

Amendment    111

Proposal for a regulation

Article 7 – paragraph 6 – subparagraph 1

Text proposed by the Commission

Amendment

6.   Within three months of notification of the Commission’s opinion referred to in paragraph 4, the competent authorities concerned shall notify the amended plan to the Commission, or shall inform the Commission of the reasons for which they do not agree with the recommendations.

6.   Within three months of notification of the Commission's opinion referred to in paragraph 5, the competent authorities concerned shall notify the amended plan to the Commission, or shall inform the Commission of the reasons for which they do not agree with the recommendations.

Amendment    112

Proposal for a regulation

Article 8 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The preventive action plan shall contain:

1.  The preventive action plan shall contain all of the following:

Amendment    113

Proposal for a regulation

Article 8 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  the definition of protected customers in each Member State of the region and the information described in the second subparagraph of Article 5(1);

(b)  the information described in the second subparagraph of Article 5(1);

Amendment    114

Proposal for a regulation

Article 8 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c)  the measures, volumes and capacities needed to fulfil the infrastructure and supply standards in each Member State of the region, as laid down in Articles 4 and 5, including where applicable, the extent to which demand-side measures can sufficiently compensate, in a timely manner, for a supply disruption as referred to in Article 4(2), the identification of the single largest gas infrastructure of common interest in the case of application of Article 4(3), the necessary gas volumes per category of protected customers and per scenario as referred to in Article 5(1) and any increased supply standard under Article 5(2), including a justification of the compliance with the conditions set in Article 5(2) and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with Article 12;

(c)  the measures, volumes and capacities needed to fulfil the infrastructure and supply standards in each Member State of the region, as laid down in Articles 4 and 5, including the assessment of the potential for gas demand reduction and economy-wide energy efficiency measures, where applicable, the extent to which demand-side measures can sufficiently compensate, in a timely manner, for a supply disruption as referred to in Article 4(2), the identification of the single largest gas infrastructure of common interest in the case of application of Article 4(3), the identification of the single largest gas supplier, the necessary gas volumes per category of protected customers and per scenario as referred to in Article 5(1) and any increased supply standard under Article 5(2), including reasons for the compliance with the conditions set in Article 5(2) and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with Article 12;

Amendment    115

Proposal for a regulation

Article 8 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d)  obligations imposed on natural gas undertakings and other relevant bodies likely to have an impact on security of gas supply, such as obligations for the safe operation of the gas system;

(d)  obligations imposed on natural gas undertakings, electricity undertakings where appropriate, and other relevant bodies likely to have an impact on security of gas supply, such as obligations for the safe operation of the gas system;

Amendment    116

Proposal for a regulation

Article 8 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e)  the other preventive measures designed to address the risks identified in the risk assessment, such as those relating to the need to enhance interconnections between neighbouring Member States and the possibility to diversify gas routes and sources of supply, if appropriate, to address the risks identified in order to maintain gas supply to all customers as far as possible;

(e)  the other preventive measures designed to address the risks identified in the risk assessment, including the risks identified in the Union-wide simulation of supply and infrastructure disruptions as referred to in Article 10a. Such measures may be related to the need to enhance interconnections between neighbouring Member States, to further improve energy efficiency, to reduce gas demand and the possibility to diversify gas routes and sources of supply, to initiate or increase supply from alternative suppliers, inter alia, by way of voluntary demand aggregation, and to pool gas reserves, inter alia, via common virtual gas reserves composed of different flexibility options available in different Member States, or to the utilization of storage facilities or LNG terminals at regional level, as appropriate, to address the risks identified in order to maintain gas supply to all customers for as long as possible;

Amendment    117

Proposal for a regulation

Article 8 – paragraph 1 – point j

Text proposed by the Commission

Amendment

(j)  information on existing and future interconnections, including those providing access to the gas network of the Union, cross-border flows, cross-border access to storage and LNG facilities and the bi-directional capacity, in particular in the event of an emergency;

(j)  information on existing and future interconnections, including those providing access to the gas network of the Union, cross-border flows, cross-border access to storage and LNG facilities and the bi-directional capacity, in particular in the event of an emergency, as well as calculations and impact assessments to compare the possibility to reduce the need for these supply-side infrastructural investments through demand-side measures in a cost-effective manner;

Amendment    118

Proposal for a regulation

Article 8 – paragraph 1 – point k a (new)

Text proposed by the Commission

Amendment

 

(k a)  information on opportunities offered by decentralised, sustainable and affordable solutions and alternative sources of energy to ensure security of supply, such as renewable energy sources, including biogas, as well as energy efficiency measures.

Amendment    119

Proposal for a regulation

Article 8 – paragraph 2

Text proposed by the Commission

Amendment

2.  The preventive action plan, in particular the actions to meet the infrastructure standard as laid down in Article 4, shall take into account the Union-wide 10-year network development plan to be elaborated by the ENTSO for Gas pursuant to Article 8(10) of Regulation (EC) No 715/2009.

2.  The preventive action plan, in particular the actions to meet the infrastructure standard as laid down in Article 4, shall take into account the Union-wide 10-year network development plan to be elaborated by the ENTSO for Gas pursuant to Article 8(10) of Regulation (EC) No 715/2009 and, in addition, may take advantage of the technical and operational expertise provided by the RCSG of the ENTSO for Gas and emergency supply corridors.

Amendment    120

Proposal for a regulation

Article 8 – paragraph 4 – introductory part

Text proposed by the Commission

Amendment

4.  The Member States shall carry out an impact assessment on all preventive non-market based measures to be adopted after the entry into force of this Regulation, including the measures to comply with the supply standard set out in Article 5(1) and the measures for the increased supply standard set out in Article 5(2). Such impact assessment shall cover at least the following:

4.  The competent authorities, or, where Member States so provide, their national regulatory authorities, shall carry out an impact assessment on all preventive non-market based measures to be adopted or maintained after the entry into force of this Regulation, including the measures to comply with the supply standard set out in Article 5(1) and the measures for the increased supply standard set out in Article 5(2). That impact assessment shall cover at least the following:

Amendment    121

Proposal for a regulation

Article 8 – paragraph 4 – point a

Text proposed by the Commission

Amendment

(a)  impact of the proposed measure on the development of the national gas market and competition at national level;

(a)  the impact of the proposed measure on the development of the national gas market and competition at national level;

Amendment    122

Proposal for a regulation

Article 8 – paragraph 4 – point b

Text proposed by the Commission

Amendment

(b)  impact of the proposed measures on the internal gas market;

(b)  the impact of the proposed measures on the internal gas market;

Amendment    123

Proposal for a regulation

Article 9 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  define the role and responsibilities of natural gas undertakings and of industrial gas customers including relevant electricity producers, taking account of the different extent to which they are affected in the event of gas supply disruptions, and their interaction with the competent authorities and where appropriate with the national regulatory authorities at each of the crisis levels defined in Article 10(1);

(b)  define the role and responsibilities of natural gas undertakings, transmission system operators for electricity if relevant and of industrial gas customers including relevant electricity producers, taking account of the different extent to which they are affected in the event of gas supply disruptions, and their interaction with the competent authorities and where appropriate with the national regulatory authorities at each of the crisis levels defined in Article 10(1);

Amendment    124

Proposal for a regulation

Article 9 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e)  identify, if appropriate, the measures and actions to be taken to mitigate the potential impact of a gas supply disruption on district heating and the supply of electricity generated from gas;

(e)  identify, if appropriate, the measures and actions to be taken to mitigate the potential impact of a gas supply disruption on district heating and the supply of electricity generated from gas, in particular through an integrated view of energy systems operations across electricity and gas if relevant;

Amendment    125

Proposal for a regulation

Article 9 – paragraph 1 – point g

Text proposed by the Commission

Amendment

(g)  designate a crisis manager or team and define its role;

(g)  designate a crisis manager or team and define its role, including cooperation with the RCSG of the ENTSO for Gas in handling the technical and operational tasks identified as appropriate for the specific situation;

Amendment    126

Proposal for a regulation

Article 9 – paragraph 1 – point h

Text proposed by the Commission

Amendment

(h)  identify the contribution of market-based measures for coping with the situation at alert level and mitigating the situation at emergency level;

(h)  identify the contribution of market-based measures, including voluntary demand aggregation, for coping with the situation at alert level and mitigating the situation at emergency level;

Amendment    127

Proposal for a regulation

Article 9 – paragraph 1 – point i a (new)

Text proposed by the Commission

Amendment

 

(i a)  describe supply restriction orders that would apply at an emergency level;

Amendment    128

Proposal for a regulation

Article 9 – paragraph 1 – point i b (new)

Text proposed by the Commission

Amendment

 

(i b)  describe possible measures arising from the Emergency Supply Corridor assessment referred to in Article 10a;

Amendment    129

Proposal for a regulation

Article 9 – paragraph 1 – point i c (new)

Text proposed by the Commission

Amendment

 

(i c)  describe the mechanism in place for the exchange of information concerning gas supply in the case of an emergency, based on the Emergency Supply Corridor assessment, including, if appropriate, the use of existing mechanisms such as the RCSG developed by ENTSO for Gas.

Amendment    130

Proposal for a regulation

Article 9 – paragraph 1 – point k

Text proposed by the Commission

Amendment

(k)  detail the reporting obligations imposed on natural gas undertakings at alert and emergency levels;

(k)  detail the reporting obligations imposed on natural gas undertakings and, where appropriate, electricity undertakings at alert and emergency levels;

Amendment    131

Proposal for a regulation

Article 10 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

 

4 a.  Emergency measures shall provide for the supply of the available natural gas to final consumers according to the degree of urgency, substitutability by other energy forms and economic impact, while having regard to safeguarding gas supply to protected customers, and shall take due account of the supply situation in the electricity sector.

Amendment    132

Proposal for a regulation

Article 10 – paragraph 4 b (new)

Text proposed by the Commission

Amendment

 

4 b.  During an emergency and on reasonable grounds, a Member State may decide to prioritise the gas supply to certain critical gas-fired power plants over the supply to certain categories of protected customers. That measure shall be based on the risk assessment provided for in Article 6 and shall apply only where the lack of gas supply to such critical gas-fired power plants would significantly deteriorate or impede supply of the remaining gas to protected customers as a result of severe damages in the functioning of the electricity system. Such critical gas-fired power plants shall be identified by the transmission system operators of the electricity system in coordination with the transmission system operators of the gas system.

Amendment    133

Proposal for a regulation

Article 10 a (new)

Text proposed by the Commission

Amendment

 

Article 10 a

 

Emergency Supply Corridors

 

By 30 April 2017, ENTSO for Gas shall propose supply and infrastructure disruption scenarios to be discussed and established after consulting the Gas Coordination Group. That proposal shall at least include the disruption scenarios simulated in the latest Union-wide ten-year network development plan for each of the main import corridors and in each of the cases listed in Article 5(1).

 

 

 

By 1 November 2017, ENTSO for Gas shall carry out a Union-wide simulation of supply and infrastructure disruption scenarios, as established after consulting the Gas Coordination Group. The competent authorities shall provide ENTSO for Gas with the necessary data for the simulations such as peak demand values, production capacity and demand side measures.

 

As part of the Union-wide simulation, ENTSO for Gas shall identify and asses the Emergency Supply Corridors, which complement and facilitate the regional approach as referred to in Annex I, along which gas can flow between regions in order to prevent fragmentation of the internal gas market. The results of that assessment shall be discussed in the Gas Coordination Group.

 

The Union-wide simulation and the Emergency Supply Corridors shall be updated every four years, unless circumstances warrant more frequent updates.

 

In the event of a declared emergency the Member States on the Emergency Supply Corridors shall ensure that all essential information is provided as regards the gas supply, in particular, available gas quantities, possible modalities and sources for gas channelling to the Member States having declared the emergency. Member States positioned on the Emergency Supply Corridor shall ensure that no measures prevent the supply of gas to the Member States that have declared the emergency.

Amendment    134

Proposal for a regulation

Article 11 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

3.  In a regional or Union emergency, the Commission shall coordinate the action of the competent authorities, taking full account of relevant information from, and the results of, the consultation of the Gas Coordination Group. In particular, the Commission shall:

3.  In a regional or Union emergency, the Commission shall coordinate the action of the competent authorities, taking full account of relevant information from, and the results of, the consultation of the Gas Coordination Group and, if appropriate, involve the RCSG of the ENTSO for Gas. In particular, the Commission shall:

Amendment    135

Proposal for a regulation

Article 11 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

 

6 a.  Upon receipt of a notification from a competent authority of the declaration of an early warning in a Member State, or on its own initiative, the Commission shall use appropriate external policy tools to prevent the deterioration of the situation in gas supply.

Amendment    136

Proposal for a regulation

Article 12 – paragraph 1

Text proposed by the Commission

Amendment

1.  Where a Member State has declared the emergency crisis level in accordance with Article 10(1) any increased supply standard or additional obligation imposed on natural gas undertakings in other Member States under Article 5(2) shall be temporarily reduced to the level established in Article 5(1).

1.  Where a Member State has declared an emergency in accordance with Article 10(1) and has proved that all the measures described in the emergency plan of its region have been used and that all the technical and commercial terms laid down in the emergency plan have been met, any increased supply standard or additional obligation imposed on natural gas undertakings in other Member States under Article 5(1a) and (2) shall be temporarily reduced to the level established in the first subparagraph of Article 5(1).

Amendment    137

Proposal for a regulation

Article 12 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1 a.  A Member State, in which an emergency has been declared and which, despite having implemented the measures provided for in the emergency plan, is not able to supply gas to protected customers, may call for solidarity measures to apply.

Amendment    138

Proposal for a regulation

Article 12 – paragraph 2 – subparagraph 1

Text proposed by the Commission

Amendment

2.  As long as the supply to households, essential social services and district heating installations in the Member State having declared the emergency is not satisfied, despite the application of the measure in paragraph 1, the gas supply to customers other than households, essential social services and district heating installations in any other Member State, directly connected to the Member State which declared the emergency, shall not continue to the extent necessary to supply the households, essential social services and district heating installations in the Member States having declared the emergency.

2.  As long as gas supply to protected customers in the Member State that has called for the application of solidarity measures is not satisfied, the gas supply to customers other than protected customers in any other Member State, connected directly or indirectly via a third country to that Member State, shall not continue to the extent necessary to supply the protected customers in the Member State having called for the application of solidarity measures.

Amendment    139

Proposal for a regulation

Article 12 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

The first subparagraph shall apply to essential social services and district heating installations to the extent they are covered by the definition of protected customers in the respective Member State.

deleted

Amendment    140

Proposal for a regulation

Article 12 – paragraph 3

Text proposed by the Commission

Amendment

3.  The competent authorities shall adopt the necessary measures, so that gas not supplied to customers other than households, essential social services and district heating installations in their territory in the situation described in paragraph 2 can be supplied to the Member State in the emergency situation described in the same paragraph for the supply to households, essential social services and district heating installations in that Member State.

3.  The competent authorities shall adopt the necessary measures, so that gas not supplied to customers other than protected customers in their territory in the situation described in paragraph 2 can be supplied to the Member State in the emergency situation described in the same paragraph.

Amendment    141

Proposal for a regulation

Article 12 – paragraph 4

Text proposed by the Commission

Amendment

4.  The technical, legal and financial arrangements for the application of paragraph 3 shall be agreed among the Member States which are directly connected to each other and described in the emergency plans of their respective regions. Such arrangements may cover, among others, gas prices to be applied, use of interconnectors, including bi-directional capacity, gas volumes and the coverage of compensation costs. Market-based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3. In case the technical, legal and financial arrangements necessary to apply paragraph 3 are amended, the relevant emergency plan shall be updated accordingly.

4.  The technical, legal and financial arrangements for the application of paragraph 3 shall be agreed among the Member States which are directly connected to each other and described in the emergency plans of their respective regions. Such arrangements shall cover, among others, gas prices to be applied, use of interconnectors, including guaranteed bi-directional capacity, gas volumes and the coverage of compensation costs. The Agency for Cooperation of Energy Regulators (ACER) may act as a facilitator in calculating the compensation costs, which shall be market based. The solidarity mechanism shall be a mechanism of a last resort, with appropriate compensation minimising the consequences to involved market parties. Market-based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3. The gas prices and compensation costs and mechanisms referred to in this paragraph shall reflect market conditions and shall be reviewed regularly, including during emergency situations. If the technical, legal and financial arrangements necessary to apply paragraph 3 are amended, the relevant emergency plan shall be updated accordingly. The Commission shall prepare guidelines for templates for the solidarity measures, including model clauses, and shall publish them by ... [date of entry into force of the solidarity mechanism].

Amendment    142

Proposal for a regulation

Article 12 – paragraph 5

Text proposed by the Commission

Amendment

5.  Paragraph 2 shall apply as of 1 March 2019.

5.  Paragraph 2 shall apply as of 1 October 2018.

Amendment    143

Proposal for a regulation

Article 12 – paragraph 6

Text proposed by the Commission

Amendment

6.  If the Member States do not agree on the necessary technical, legal and financial arrangements, the Commission may propose a framework for such measures in its opinion and decision on the plans.

6.  If the Member States do not agree on the necessary technical, legal, financial and commercial arrangements, the Commission shall develop a framework for such measures in accordance with paragraph 4.

Amendment    144

Proposal for a regulation

Article 13 – title

Text proposed by the Commission

Amendment

Information exchange

Compilation of information

Amendment    145

Proposal for a regulation

Article 13 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b)  information on the measures planned to be undertaken and already implemented by the competent authority to mitigate the emergency, and information on their effectiveness;

(b)  information on the measures planned to be undertaken and already implemented by the competent authority to mitigate the emergency, including demand-side measures, and information on their effectiveness;

Amendment    146

Proposal for a regulation

Article 13 – paragraph 4

Text proposed by the Commission

Amendment

4.  In duly justified circumstances irrespective of a declaration of emergency, the competent authority may require gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the Member State or other Member States, including contractual information. The Commission may request from the competent authorities the information provided by natural gas undertakings.

4.  Irrespective of a declaration of emergency, the competent authority may require natural gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the Member State or other Member States, including contractual information. The Commission may request from the competent authorities the information provided by natural gas undertakings. The Commission and the competent authorities shall refrain from unnecessary administrative burden, especially from duplication of information disclosure obligations.

Amendment    147

Proposal for a regulation

Article 13 – paragraph 5

Text proposed by the Commission

Amendment

5.  Where the Commission considers that the gas supply in a region or the Union as whole is affected or is likely to be affected it may require the competent authorities to collect and submit to the Commission information necessary to assess the situation of the gas supply in the Union. The Commission may share its assessment with the Gas Coordination Group.

5.  Where the Commission considers that the gas supply in a region or the Union as whole is affected or is likely to be affected it may require the competent authorities to collect and submit to the Commission information necessary to assess the situation of the gas supply in the Union. The Commission shall share its assessment with the Gas Coordination Group.

Amendment    148

Proposal for a regulation

Article 13 – paragraph 6 – point a – introductory part

Text proposed by the Commission

Amendment

(a)  to the competent authorities concerned the following details of gas supply contracts with a duration of more than 1 year:

(a)  to the competent authorities concerned, and to any national regulatory authorities, the following details of gas supply contracts with a duration of more than 1 year:

Amendment    149

Proposal for a regulation

Article 13 – paragraph 6 – point a – point v a (new)

Text proposed by the Commission

Amendment

 

(va)  price;

Amendment    150

Proposal for a regulation

Article 13 – paragraph 6 – point a – point vi

Text proposed by the Commission

Amendment

(vi)  conditions for the suspension of gas deliveries.

(vi)  conditions for the renegotiation and suspension of gas deliveries.

Amendment    151

Proposal for a regulation

Article 13 – paragraph 6 – point b

Text proposed by the Commission

Amendment

(b)  to the competent authority and to the Commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [OP: Please insert the date of entry in force of this Regulation] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the Member State concerned. The notification obligation shall not apply to the modifications related only to the gas price. The notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract.

(b)  to the competent authority and to the Commission immediately after their conclusion or modification the gas supply contracts with the same supplier from a third country or from its affiliates, with a duration of more than 1 year concluded or modified after 20 March 2015 that individually or cumulatively with contracts of other natural gas undertakings on the same market with the same supplier or its affiliates provide more than 40% of total annual gas imports from third countries to the Member State concerned. The notification obligation shall also apply to the gas price. The notification obligation shall also apply to all existing and new commercial agreements relevant for the execution of the gas supply contract. To that end, the national regulatory authorities shall monitor the market supply structure and inform the relevant natural gas undertakings once the 40 % threshold is exceeded.

Amendment    152

Proposal for a regulation

Article 13 – paragraph 6 – subparagraph 2

Text proposed by the Commission

Amendment

The competent authority shall notify the data listed in point (a) of the first subparagraph to the Commission by the end of September each year.

The competent authority shall notify the data listed in point (a) of this paragraph to the Commission by the end of September each year. The Commission shall aggregate the data notified by grouping Member States with similar third-country supplier patterns, in order to create contractual benchmarks to be used by relevant natural gas undertakings.

Amendment    153

Proposal for a regulation

Article 13 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

 

6 a.  Contracts with suppliers from the EEA countries are excluded from the notification obligation provided for in paragraph 6.

Amendment    154

Proposal for a regulation

Article 13 – paragraph 6 b (new)

Text proposed by the Commission

Amendment

 

6 b.  The Commission shall use the data collected to calculate the average gas price paid by natural gas undertakings in each region as defined in Annex I and in the Union as a whole. The results obtained shall be made public every two years.

Amendment    155

Proposal for a regulation

Article 13 – paragraph 7

Text proposed by the Commission

Amendment

7.  In duly justified circumstances, where the competent authority or the Commission considers that a gas supply contract not covered by paragraph 6(b) of this Article might affect the security of supply of a Member State, region or of the Union as whole, the competent authority of the Member State where the natural gas undertaking who has concluded the contract operates or the Commission may request the natural gas undertaking to provide the contract for the assessment of its impact on security of supply. The request may cover also any other commercial agreements relevant for the execution of the gas supply contract.

7.  In duly justified circumstances, Where the competent authority or the Commission considers that a gas supply contract not covered by paragraph 6(b) of this Article might affect the security of gas supply of a Member State, region or of the Union as whole, the competent authority of the Member State where the natural gas undertaking that has concluded the contract operates or the Commission shall request the natural gas undertaking to provide the contract for the assessment of its impact on the security of gas supply. The request may cover also any other commercial agreements relevant for the execution of the gas supply contract or commercial agreements for the development and operation of infrastructure.

Amendment    156

Proposal for a regulation

Article 13 – paragraph 7 a (new)

Text proposed by the Commission

Amendment

 

7 a.  By ... [6 months after the date of entry into force of this Regulation], the competent authority shall establish measures to impose fines on natural gas undertakings if they fail to comply with paragraph 6 or 7. Such fines shall be effective, proportionate and dissuasive.

Amendment    157

Proposal for a regulation

Article 13 – paragraph 8 a (new)

Text proposed by the Commission

Amendment

 

8 a.  If the Commission finds the terms of a gas supply contract to infringe the provisions of this Regulation, it may consider launching further procedure, inter alia under Union competition law. The Commission shall inform the natural gas undertaking concerned and relevant competent authority of the incompatibility of the terms of the gas supply contract with provisions of this Regulation and request that terms of the contract be amended. The natural gas undertaking or the relevant competent authority shall, within three months of the receipt of the request, notify the amendment to the Commission or shall inform the Commission of the reasons why it does not agree with the request. The Commission shall, within three months of the receipt of the natural gas undertaking's reply, amend, withdraw or confirm its request. The Commission shall give detailed reasons for its decision. The competent authority shall, by ... [ six months after the date of entry into force of this Regulation], establish measures to impose fines on natural gas undertakings if they fail to comply with the request. Such fines shall be effective, proportionate and dissuasive in the light of the scope of non-compliance and potential benefits to the natural gas undertakings concerned which might be gained due to non-compliance.

Amendment    158

Proposal for a regulation

Article 13 – paragraph 9

Text proposed by the Commission

Amendment

9.  The competent authorities and the Commission shall preserve the confidentiality of commercially sensitive information.

9.  The competent authorities and the Commission shall guarantee the strict confidentiality of commercially sensitive information made available by applying the provisions of this Article.

Amendment    159

Proposal for a regulation

Article 14 – paragraph 1

Text proposed by the Commission

Amendment

1.  A Gas Coordination Group is established to facilitate the coordination of measures concerning security of gas supply. The Group shall be composed of representatives of the Member States, in particular of their competent authorities, as well as the Agency for the Cooperation of Energy Regulators (the "Agency"), the ENTSO for Gas and representative bodies of the industry concerned and those of relevant customers. The Commission shall, in consultation with the Member States, decide on the composition of the Group, ensuring it is fully representative. The Commission shall chair the Group. The Group shall adopt its rules of procedure.

1.  A Gas Coordination Group is established to facilitate the coordination of measures concerning security of gas supply. The Group shall be composed of representatives of the Member States, in particular of their competent authorities and any national regulatory authorities, as well as the Agency for the Cooperation of Energy Regulators (the "Agency"), the ENTSO for Gas and representative bodies of the industry concerned and those of relevant customers. The Commission shall, in consultation with the Member States, decide on the composition of the Group, ensuring it is fully representative. The Commission shall chair the Group. The Group shall adopt its rules of procedure.

Amendment    160

Proposal for a regulation

Article 14 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b)  all information relevant for security of gas supply at national, regional and Union levels;

(b)  all information relevant for security of gas supply at national, regional and Union levels, including information and data on implemented and planned demand-side policies and measures;

Amendment    161

Proposal for a regulation

Article 14 – paragraph 2 – point g

Text proposed by the Commission

Amendment

(g)  the coordination of measures to deal with an emergency within the Union, with third countries that are Contracting Parties to the Treaty establishing the Energy Community and with other third countries;

(g)  the coordination of measures to deal with an emergency within the Union, with the Energy Community Contracting Parties and with other third countries;

Amendment    162

Proposal for a regulation

Article 15 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The second sentence of Article 3(2), Article 3(6), Article 4(3), (4) and (6), Article 5(2), point (d) of Article 6(1), points (b) and (e) of Article 7(5), points (e), (g), (i), of Article 8(1), point (b) and (c) of Article 8(4), points (j) and (m) of Article 9(1), Article 9(4), Article 10(4), Article 11(5) and Article 12 shall create obligations for the Members States towards an Energy Community Contracting Party subject to the following procedure:

1.  The second sentence of Article 3(2), Article 3(6), Article 4(3), (4) and (6), Article 5(2), point (d) of Article 6(1), points (b) and (e) of Article 7(5), points (e), (g), (i), of Article 8(1), point (b) and (c) of Article 8(4), points (j) and (m) of Article 9(1), Article 9(4), Article 10(4), Article 11(5) and Article 12 shall create obligations for all Members States towards an Energy Community Contracting Party subject to the following procedure:

Amendment    163

Proposal for a regulation

Article 16 – subparagraph 2

Text proposed by the Commission

Amendment

The Commission, on the basis of the assessments referred to in Article 7(5) shall, when appropriate, draw conclusions as to possible means to enhance security of supply at Union level and report to the European Parliament and the Council on the implementation of this Regulation, including, where necessary, recommendations for improvement of this Regulation.

The Commission, on the basis of the assessments referred to in Article 7(5) shall, when appropriate, draw conclusions as to possible means to enhance security of gas supply at Union level and submit a report to the European Parliament and to the Council on the implementation of this Regulation, including, if necessary, a legislative proposal to amend this Regulation.

Amendment    164

Proposal for a regulation

Article 17 – title

Text proposed by the Commission

Amendment

Notifications

Submission of documents

Amendment    165

Proposal for a regulation

Article 17 – paragraph 1

Text proposed by the Commission

Amendment

The risk assessment, the preventive action plans, the emergency plans and all other documents shall be notified to the Commission electronically through the CIRCABC platform.

The risk assessment, the preventive action plans, the emergency plans and all other documents shall be submitted to the Commission electronically through the CIRCABC platform.

Amendment    166

Proposal for a regulation

Article 17 – paragraph 2

Text proposed by the Commission

Amendment

All correspondence in connection with a notification shall be transmitted electronically.

All correspondence in connection with the provisions of this Article shall be transmitted electronically.

Amendment    167

Proposal for a regulation

Annex II – point 3 – subparagraph 2

Text proposed by the Commission

Amendment

‘Calculated area’ means a geographical area for which the N – 1 formula is calculated, as determined by the competent authority.

‘Calculated area’ means a geographically determined area of relevant market for which the N – 1 formula is calculated, as determined by the competent authority.

Amendment    168

Proposal for a regulation

Annex III – point 1 – introductory part

Text proposed by the Commission

Amendment

1.  To enable or enhance bi-directional capacity on an interconnector or to obtain or prolong an exemption from that obligation, transmission system operators on both sides of the interconnector shall submit to their competent authorities (competent authorities concerned) after consulting with all transmission system operators along the gas supply corridor:

1.  To enable or enhance bi-directional capacity on an interconnector or to obtain or prolong an exemption from that obligation, transmission system operators on both sides of the interconnector shall submit to their competent authorities or their regulatory authorities where they are not the competent authority (together referred to in this Annex as the competent authorities concerned) after consulting all transmission system operators along the gas supply corridor:

Amendment    169

Proposal for a regulation

Annex IV – point 1 – point 1.1 – point e – introductory part

Text proposed by the Commission

Amendment

(e)  Describe the role of domestic production in the region:

(e)  Describe the role of domestic production in the region, including biogas:

Amendment    170

Proposal for a regulation

Annex IV – point 1 – point 1.1 – point f a (new)

Text proposed by the Commission

Amendment

 

(f a)  Scenarios of gas demand, also taking into account the effect of energy efficiency measures on annual final gas consumption

Amendment    171

Proposal for a regulation

Annex IV – point 1 – point 1.2 – point g a (new)

Text proposed by the Commission

Amendment

 

(g a)  Scenarios of gas demand, also taking into account the effect of energy efficiency measures on annual final gas consumption

Amendment    172

Proposal for a regulation

Annex V – point 1 – point 1.1 – point e – introductory part

Text proposed by the Commission

Amendment

(e)  Describe the role of domestic production in the region:

(e)  Describe the role of domestic production in the region, including biogas:

Amendment    173

Proposal for a regulation

Annex V – point 1 – point 1.1 – point f a (new)

Text proposed by the Commission

Amendment

 

(f a)  Describe the role of energy efficiency measures and their effect on annual final gas consumption

Amendment    174

Proposal for a regulation

Annex V – point 1 – point 1.2 – point g a (new)

Text proposed by the Commission

Amendment

 

(g a)  Describe the role of energy efficiency measures and their effect on annual final gas consumption

Amendment    175

Proposal for a regulation

Annex V – point 5 – point b

Text proposed by the Commission

Amendment

(b)  Describe other measures adopted for reasons other than the risk assessment but with a positive impact for the security of supply of the region/Member State

(b)  Describe other measures adopted for reasons other than those identified in the risk assessment but with a positive impact for the security of supply of the region/Member State

Amendment    176

Proposal for a regulation

Annex V – template 1 – point 9 – point b a (new)

Text proposed by the Commission

Amendment

 

(b a)  Describe the mechanisms used for the inclusion of the technical and operational expertise provided by the RCSG of the ENTSO for Gas

Amendment    177

Proposal for a regulation

Annex V – template 2 – point 6 – point b a (new)

Text proposed by the Commission

Amendment

 

(b a)  Describe the mechanisms in place for cooperating with the RCSG of the ENTSO for Gas.


EXPLANATORY STATEMENT

I. Introduction

With the coming into force of Regulation 994/2010 concerning measures to safeguard security of gas supply, repealing Council Directive 2004/67/EC, the EU has made the first step towards an enhanced coordination between natural gas undertakings, the Member States and the European Commission in responding to the transnational challenge of security of gas supply.

The 2010 Regulation built on the recognition that energy security is a shared competence and responsibility of national authorities and the EU, as stated in Art. 194 of The Treaty on the European Union. The Article foresees a common energy policy founded on the principle of solidarity and aimed at ensuring, inter alia, security of energy supply.

The 2010 Regulation corresponded with the Parliament’s longstanding position calling for complementing the regulatory framework and completing the necessary infrastructure of the Internal Energy Market with provisions which would facilitate, in a spirit of solidarity, joint mechanisms of prevention of and response to external supply disruptions. This was all the more important in the context of EU's increasing dependence on gas imports, as well as repeated gas supply disruptions from Russia, which severely affected supply to several EU Member States.

The 2006 and 2009 gas crises, as well as the one which followed in 2014, triggered uncertainty over gas supply. It placed energy security at the core of EU policy-making and made it one of the key objectives of the ‘Energy Union’ strategy, adopted by the European Commission on 25 February 2015.

The regulation of 2010 proved vital for improving energy security in Europe. At the same time, taking into account the findings of the stress tests carried out after subsequent supply crises, of the implementation report on the 2010 regulation and of the public consultation carried out by the Commission in 2015, the rapporteur acknowledges that country-level approach has proven to be insufficient in fully tackling the regional disparities and cross-border character of gas supply, necessitating strengthened solidarity-based mechanisms in response to supply disruptions. The rapporteur finds that eliminating further barriers between Member States, lowering prevention costs and maximising effectiveness of mitigation requires more cooperation, coordination and transparency, especially given the ongoing integration of EU gas markets and the corridor-based approach to gas supply and reverse flows in Europe.

The rapporteur welcomes the initiative of the Commission to revise the 2010 Regulation. It is one of the key legislative actions under the Energy Union framework, for which also the Parliament called in its resolution “Towards a European Energy Union” of 15 December 2015. He welcomes the Commission's general approach of strengthening existing mechanisms so as to further enhance the EU's energy security.

II. Main points identified by the rapporteur

II.1. Regional approach with Emergency Supply Corridors

The rapporteur is of the opinion that the transnational character of gas supply, evidenced by the fact that 90% of gas which flows through Europe passes through at least one national border, and the ensuing risk of international spill-over resulting from supply disruptions requires possibly broad cooperation with strengthened coordinating role of the Commission, as proposed in numerous policy initiatives in the past decade and as endorsed repeatedly by the Parliament. These initiatives include, among others, the European Energy Community which the rapporteur proposed together with Jacques Delors, former President of the Commission, and, finally, the Energy Union strategy.

While being very supportive of a Union-wide and possibly also pan-European approach, the rapporteur takes into account the findings of the impact assessment of the new Regulation. The Commission compared four possible scenarios ranging from baseline (no further action at EU level), through a non-legislative option (enhanced implementation and soft law measures), to legislative options which provide enhanced coordination of two possible degrees, and finally, full harmonisation at EU level. The analysis of the scenarios proved that enhanced coordination with some principles and standards set at EU level to be the best option.

The rapporteur believes that the regional approach to risk assessment, as well as development of prevention and mitigation plans offers an effective and efficient path to achieving a significantly higher level of energy security. He also strongly supports the harmonization of templates as well as the peer review mechanism which is to ensure that solutions agreed upon in the respective regions sum up to an effective and compatible Union-wide energy security framework.

At the same time, the regions should be seen as self-sufficient as regards gas supply in preventing or mitigating an emergency. Unstable energy supply in one country or region affects the entire EU along the supply corridors. While Member States should in any case not only cooperate within the regions, a stronger European perspective could usefully be integrated into the proposal, allowing to revert to all available supplies and tools in the larger EU Internal Gas Market. This could be achieved by providing in-depth analysis at EU-level on the relevant Emergency Supply Corridors, based on gas supply sources common for a group of Member States.

The rapporteur is of the view that for energy security of a Member State or a group of Member States, the Emergency Supply Corridors can provide essential information and possible measures to help Member States prepare the risk assessments and regional prevention and emergency plans, by providing available quantities, possible modalities and sources for the channelling gas to Member States in need. Building from ENTSOG's existing coordination mechanisms, the Emergency Supply Corridors should complement the regional approach, thus preventing fragmentation, and significantly reinforcing the European perspective as well as enhancing the efficiency of emergency prevention and response. Further, the rapporteur is convinced that a mandatory assessment of gas supply going beyond the regions would make the Union and the Member States much better prepared for a crisis and enable faster response in case it occurs.

II.2. Solidarity mechanism

The rapporteur welcomes the introduction of the solidarity clause as a legally-binding principle of last resort. He wishes to underline that it should not be regarded as an alternative to market-based preventive action available in the EU internal gas market, nor should it substitute any country's own efforts to improve its resilience to supply disruptions by diversifying its suppliers, routes of supply and sources of energy and increasing its energy efficiency.

II.3. Information exchange

The rapporteur strongly supports the argumentation that secure energy supply requires a level playing field in energy trade for businesses across the entire Union, including for energy companies, through transparent, free-market rules binding all undertakings and stakeholders along the supply, transmission and distribution chain.

He acknowledges the importance of proper information exchange for risk assessment and for the prevention and mitigation of crises. The rapporteur therefore endorses the proposal of the Commission, in which certain relevant contracts will have to be automatically notified to the Commission and the competent authority upon conclusion or modification, as well as the prerogative of the competent authority and the Commission to request, in duly justified cases, the natural gas undertaking to provide the contract for assessment of its impact on security of supply.

II.4. Protected customers

The rapporteur introduces a Union-wide harmonisation of definition of protected customers. This will help eliminate the differences across Member States which may affect the supply standard, in particular when the latter is met with non-market based measures, thus negatively impacting the internal market and security of supply of neighbouring Member States by reducing the liquidity of the gas markets, notably in cases of a tight supply-demand situation.

The rapporteur further proposes to allow Member States to give priority to certain gas-fired power plants essential for the integrity of the network. Under strict conditions such power plants should be prioritised over protected customers in order to prevent a blackout that would deprive all protected customers from electricity and possibly also gas supply (if gas appliances need electricity to function).

II.5. Inclusion of the Energy Community

The rapporteur fully supports the necessity of creating a common regulatory framework in the field of energy, and in particular security of supply, between the EU and the Contracting Parties of the Energy Community. He therefore welcomes the Commission’s approach in which it extends certain provisions of the Regulation (cross-border consistency of Risk Assessments, preventive action plans and emergency plans) to cover the Energy Community, once its Contracting Parties implement the relevant legal obligations.

II.6. Joint purchasing

The rapporteur has repeatedly endorsed joint purchasing as a means of enhancing the negotiating position of companies, countries or regions towards external suppliers, thus reducing energy prices for consumers and contributing to market- and solidarity-based security of supply. Also the Parliament in its resolution “Towards a European Energy Union” called for assessing the appropriateness and possible structure of a voluntary gas joint purchasing scheme. The rapporteur remains convinced that voluntary joint purchasing, for which there already exist first bottom-up initiatives in the EU, should be reflected in EU law.

***

What is at stake is not only the security of supply of one particular energy source, but also

EU's overall security, economic competitiveness, growth and new jobs for our citizens. It is, moreover, important for our ambitious climate policy and the relations with our neighbouring countries. We need to keep all of the above in mind when negotiating the new Regulation. It can be our springboard for secure and sustainable growth as well as a common European success story to build on for decades.


OPINION of the Committee on Foreign Affairs (14.9.2016)

for the Committee on Industry, Research and Energy

on the proposal for a regulation of the European Parliament and of the Council concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010

(COM(2016)0052 – C8-0035/2016 – 2016/0030(COD))

Rapporteur: Jacek Saryusz-Wolski

SHORT JUSTIFICATION

The Commission has presented the Parliament and the Council a proposal aimed at safeguarding the security of gas supply. The proposed Regulation is welcome and its focus on the regional cooperation and security mechanisms is consistent with the necessity of stronger involvement on the EU level in order to prevent gas supply disruptions.

The regional cooperation must be reinforced in respect to the information flows on gas disruptions and the regulation exemptions for protected customers. The latter should be established on the regional level in order to improve the content and clarity of preventive action and emergency plans. However, should the regional cooperation encounter difficulty due to the lack of agreement among Member States, the Commission should retain the possibility to introduce technical and legal framework for the solidarity clause, necessary risk assessment plans or cooperation mechanisms.

The strategic goal of diversification of supply routes and sources should be reinforced, if necessary, by voluntary demand aggregation, consistent with European Council propositions. Such a mechanism may reduce the monopolistic leverage in less competitive markets, should the interested parties decide to cooperate.

The systemic inclusion of the Energy Community countries - should they meet the requirements stipulated in Article 15 - is welcome. However, the EU must also reinforce its engagement with third countries outside this framework and develop the external emergency response tools. The importance of thereof was made clear during the Commission's involvement in the negotiations of the "winter package" between Ukraine and Russia.

The information exchange mechanism should secure a level playing field for all contracts above certain absolute size relevant for the functioning of the single energy market in its entirety, not just in one country. It is not logical and justified to relate the size of the contracts to single countries' gas markets, while establishing an EU-wide single energy market. The country-related relative consumption threshold should have an auxiliary role, to secure inclusion of contracts for some uncompetitive smaller markets and energy islands. Agreements submitted under Article 13 should not only be analysed but may also require the Commission to take necessary steps in order to ensure compliance with the Regulation proposal.

AMENDMENTS

The Committee on Foreign Affairs 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 1

Text proposed by the Commission

Amendment

(1)  Natural gas (gas) remains an essential component of the energy supply of the Union. A large proportion of such gas is imported into the Union from third countries.

(1)  Natural gas (gas) remains an essential component of the energy supply of the Union. A large proportion of such gas is imported into the Union from third countries, and some Member States therefore depend largely or wholly on gas supplied by third-country monopolies.

Amendment    2

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2)  A major disruption of the gas supply can affect all Member States, the Union as a whole and Contracting Parties to the Treaty establishing the Energy Community, signed in Athens on 25 October 2005. It can also severely damage the Union economy and can have a major social impact, particularly on vulnerable groups of customers.

(2)  A major disruption of the gas supply even in one Member State can affect all Member States, the Union as a whole and Contracting Parties to the Treaty establishing the Energy Community, signed in Athens on 25 October 2005. It can also severely damage the Union economy and can have a major social impact, particularly on vulnerable groups of customers.

Amendment    3

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3)  This Regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the Union, in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply. These objectives should be achieved through the most cost-effective measures and in such a way that energy markets are not distorted.

(3)  This Regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the Union, in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply. These objectives should be achieved through the most cost-effective measures, through proportional and non-discriminatory mechanisms, and in such a way that energy markets are not distorted.

Amendment    4

Proposal for a regulation

Recital 3 a (new)

Text proposed by the Commission

Amendment

 

(3a)  This Regulation is to be implemented in challenging times, with global energy markets adversely affected by the Russian invasion of Ukraine and the annexation of Crimea in 2014, further tensions in the area of the Black Sea and the Caspian Sea, Isis control over petrol and gas supplies in the occupied territories, and tensions between Saudi Arabia and Iran.

Amendment    5

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

(4)  Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply has already had a significant positive impact on the Union situation as regards the security of the gas supply, both in terms of preparation and mitigation. Member States are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures, and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply. However, the implementation report of Regulation (EU) No 994/2010 of October 2014 highlighted areas in which improvements to that Regulation could further bolster the Union supply security.

(4)  Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply has already had a significant positive impact on the Union situation as regards the security of the gas supply, both in terms of preparation and mitigation. Some Member States are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures, and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply. However, the implementation report of Regulation (EU) No 994/2010 of October 2014 highlighted areas in which improvements to that Regulation could further bolster the Union supply security.

Amendment    6

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5)  The Commission’s Communication on the short-term resilience of the European gas system from October 201413 analysed the effects of a partial or complete disruption of gas supplies from Russia and concluded that purely national approaches are not very effective in the event of severe disruption, given their scope, which is by definition limited. This stress test showed how a more cooperative approach among Member States could significantly reduce the impact of very severe disruption scenarios in the most vulnerable Member States.

(5)  The Commission’s Communication on the short-term resilience of the European gas system from October 201413 analysed the effects of a partial or complete disruption of gas supplies from Russia and concluded that purely national approaches are not very effective in the event of severe disruption, given their scope, which is by definition limited, and inadequate coordination, especially at regional level. This stress test showed how a more cooperative approach among Member States could significantly reduce the impact of very severe disruption scenarios in the most vulnerable Member States.

__________________

__________________

13 COM(2014) 654 final.

13 COM(2014) 654 final.

Amendment    7

Proposal for a regulation

Recital 5 a (new)

Text proposed by the Commission

Amendment

 

(5a)  In order to safeguard the Union’s energy supply, it is necessary to diversify energy sources and build new energy interconnections between Member States. At the same time, it is essential to increase energy-security cooperation with the Union’s neighbouring countries, with strategic partners, and also among the Union institutions.

Amendment    8

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)  The Commission Communication ‘Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy’14 from February 2015, highlights the fact that the Energy Union rests on solidarity and trust, which are necessary features of energy security. This regulation should aim to boost solidarity and trust between the Member States and should put in place the measures needed to achieve these aims, thus paving the way for implementing the Energy Union.

(6)  The Commission Communication ‘Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy’14 from February 2015, highlights the fact that the Energy Union rests on solidarity and trust, which are necessary features of energy security. This regulation should aim to boost solidarity and trust between the Member States and should put in place the measures needed to achieve these aims, thus paving the way for implementing the Energy Union. The Union should therefore support only those diversification-oriented projects that are fully in line with Union law and principles as well as with the Union’s long-term policy objectives and priorities.

__________________

__________________

14 Communication from the Commission to the European Parliament and the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank, COM(2015) 80 final.

14 Communication from the Commission to the European Parliament and the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank, COM(2015) 80 final.

Amendment    9

Proposal for a regulation

Recital 6 a (new)

Text proposed by the Commission

Amendment

 

(6a)  In order to create a stable, flexible internal energy market, greater interaction should be ensured between the gas and electricity systems so that, should the gas supply be disrupted, electricity or other alternative energy sources could be used instead.

Amendment    10

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7)  An internal gas market that operates smoothly is the best guarantee of security of energy supply across the Union and to reduce the exposure of individual Member States to the harmful effects of supply disruptions. Where a Member State’s security of supply is threatened, there is a risk that measures developed unilaterally by that Member State may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other Member States. To allow the internal gas market to function even in the face of a shortage of supply, provision must be made for solidarity and coordination in the response to supply crises, as regards both preventive action and the reaction to actual disruptions of supply.

(7)  An internal gas market that operates smoothly is the best guarantee of security of energy supply across the Union and to reduce the exposure of individual Member States to the harmful effects of supply disruptions. Where a Member State’s security of supply is threatened, there is a risk that measures developed unilaterally by that Member State may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other Member States. To allow the internal gas market to function even in the face of a shortage of supply, provision must be made at Union level for solidarity and coordination in the response to supply crises, as regards both preventive action and the reaction to actual disruptions of supply.

Amendment    11

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)  In a spirit of solidarity, regional cooperation, involving both public authorities and natural gas undertakings, should be the guiding principle of this Regulation, to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost-effective measures for Union consumers.

(9)  In a spirit of respect for market economy principles, solidarity, regional cooperation, involving both public authorities and natural gas undertakings, should be the guiding principle of this Regulation, to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost-effective measures for Union consumers. Solidarity should take shape at three levels: regional, inter-regional and Union.

Amendment    12

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)  Certain customers, including households and customers providing essential social services, are particularly vulnerable and may need social protection. A definition of such protected customers should not conflict with the Union solidarity mechanisms.

(10)  Certain customers, including households and customers providing essential social services, are particularly vulnerable and may need social protection. A definition of such protected customers should not conflict with the Union solidarity mechanisms and should be harmonised at Union level.

Amendment    13

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17)  A regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated, bringing significant benefits in terms of the effectiveness of measures and optimisation of resources. This applies particularly to measures designed to guarantee a continued supply, under very demanding conditions, to protected customers, and to measures to mitigate the impact of an emergency. Assessing correlated risks at regional level, which is both more comprehensive and more precise, will ensure that Member States are better prepared for any crises. Moreover, in an emergency, a coordinated and pre-agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill-over effects that purely national measures could have in neighbouring Member States.

(17)  A regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated, bringing significant benefits in terms of the effectiveness of measures and optimisation of resources. This applies particularly to measures designed to guarantee a continued supply, under very demanding conditions, to protected customers, and to measures to mitigate the impact of an emergency. Assessing correlated risks at regional level, which is both more comprehensive and more precise, will ensure that Member States are better prepared for any crises. Moreover, in an emergency, a coordinated and pre-agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill-over effects that purely national measures could have in neighbouring Member States. The responsibility of the Member States for their national security of supply standards should not, however, be hampered by taking the regional approach.

Amendment    14

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19)  For the purpose of this Regulation, the following criteria should therefore be taken into account when defining the regional groups: supply patterns, existing and planned interconnections and interconnection capacity between Member States, market development and maturity, existing regional cooperation structures, and the number of Member States in a region, which should be limited to ensure that the group remains of a manageable size.

(19)  For the purpose of this Regulation, the following criteria should therefore be taken into account when defining the regional groups: supply patterns, existing and planned corridors, interconnections and interconnection capacity between Member States, market development and maturity, existing regional cooperation structures, and the number of Member States in a region, which should be limited to ensure that the group remains of a manageable size.

Amendment    15

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21)  When conducting a comprehensive risk assessment to be prepared at regional level, competent authorities should assess natural, technological, commercial, financial, social, political and market-related risks, and any other relevant ones, including, where appropriate, the disruption of the supplies from the single largest supplier. All risks should be addressed by effective, proportionate and non-discriminatory measures to be developed in the preventive action plan and the emergency plan. The results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of Decision No 1313/2013/EU18 .

(21)  When conducting a comprehensive risk assessment to be prepared at regional level, competent authorities should assess natural, technological, infrastructural, commercial, financial, social, geo-strategic, political and market-related risks, and any other relevant ones, including, where appropriate, the disruption of the supplies from the single largest supplier. All risks should be addressed by effective, proportionate and non-discriminatory measures to be developed in the preventive action plan and the emergency plan. The results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of Decision No 1313/2013/EU18 .

__________________

__________________

18 Decision No 1313/2013/EU of the European Parliament and of the Council of 17 December 2013 on a Union Civil Protection Mechanism (OJ L 347, 20.12.2013, p. 24).

18 Decision No 1313/2013/EU of the European Parliament and of the Council of 17 December 2013 on a Union Civil Protection Mechanism (OJ L 347, 20.12.2013, p. 24).

Amendment    16

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

(23)  To ensure maximum preparedness, so as to avoid a supply disruption and mitigate its effects should it nevertheless occur, the competent authorities of a given region must draw up preventive action plans and emergency, after consulting stakeholders. Regional plans should take account of the specific characteristics of each Member State. They should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities. National measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan. They should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation. The plans should be technical and operational in nature, their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects. The plans should take the security of electricity systems into account and be consistent with the Energy Union’s strategic planning and reporting tools.

(23)  To ensure maximum preparedness, so as to avoid a supply disruption and mitigate its effects should it nevertheless occur, the competent authorities of a given region must draw up preventive action plans and emergency, after consulting stakeholders. Regional plans should take account of the specific characteristics of each Member State. Alternative routes and energy suppliers need to be identified and developed especially for those Member States that depend on a single supplier. They should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities. National measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan. They should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation. The plans should be technical and operational in nature, their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects. The plans should take the security of electricity systems into account and be consistent with the Energy Union’s strategic planning and reporting tools.

Amendment    17

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36)  As demonstrated by the October 2014 stress test, solidarity is needed to ensure security of supply across the Union and to keep overall costs to a minimum. If an emergency is declared in any Member State, a two-step approach should be applied to strengthen solidarity. Firstly, all Member States which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid. Secondly, if the first step fails to provide the necessary supply, further measures by neighbouring Member States, even if not in an emergency situation, should be triggered to ensure the supply to households, essential social services and district heating installations in the Member State experiencing the emergency. Member States should identify and describe the details of these solidarity measures in their emergency plans, ensuring fair and equitable compensation of the natural gas undertakings.

(36)  As demonstrated by the October 2014 stress test, solidarity is needed to ensure security of supply across the Union and to keep overall costs to a minimum. If an emergency is declared in any Member State, a two-step approach should be applied to strengthen solidarity. Firstly, all Member States which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid. Secondly, if the first step fails to provide the necessary supply, further measures by neighbouring Member States, even if not in an emergency situation, should be triggered to ensure the supply to households, essential social services and district heating installations in the Member State experiencing the emergency. Member States should identify and describe the details of these solidarity measures in their emergency plans, ensuring fair and equitable compensation of the natural gas undertakings. The Commission should also ensure that dominant gas suppliers in a region do not abuse their position in breach of Union competition law, with particular reference to unfair prices charged in Member States.

Amendment    18

Proposal for a regulation

Recital 41

Text proposed by the Commission

Amendment

(41)  One of the Union goals is to strengthen the Energy Community that would ensure effective implementation of the Union energy acquis, energy market reforms and incentivising investments in the energy sector by closer integration of the Union and Energy Community energy markets. This entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the Energy Community Contracting Parties. Furthermore, the Commission Communication on the short term resilience of the European gas system from October 2014 refers to the need to apply internal energy market rules on the flow of energy between the Union Member States and the Energy Community Contracting Parties. In this regard, in order to ensure an efficient crisis management on borders between the Union Member States and the Contracting Parties, the necessary arrangements following the adoption of a Joint Act should be set so that specific cooperation with any individual Energy Community Contracting Party can take place once the required mutual provisions have been duly put into place.

(41)  One of the Union goals is to strengthen the Energy Community and to ensure effective implementation of the Union energy acquis, energy market reforms and incentivising investments in the energy sector by all Energy Community Member States in order to achieve closer integration of the Union and Energy Community energy markets. This entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the Energy Community Contracting Parties. Furthermore, the Commission Communication on the short term resilience of the European gas system from October 2014 refers to the need to fully apply internal energy market rules and agreements on the flow of energy between the Union Member States and the Energy Community Contracting Parties by all Energy Community Member States. In this regard, in order to ensure an efficient crisis management on borders between the Union Member States and the Contracting Parties, the necessary arrangements following the adoption of a Joint Act should be set so that specific cooperation with any individual Energy Community Contracting Party can take place once the required mutual provisions have been duly put into place.

Amendment    19

Proposal for a regulation

Recital 42

Text proposed by the Commission

Amendment

(42)  Since gas supplies from third countries are central to the security of the Union gas supply, the Commission should coordinate action with regard to third countries, work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the Union. The Commission should be entitled to deploy a task force to monitor gas flows into the Union in crisis situations, in consultation with the third countries involved, and, where a crisis arises from difficulties in a third country, to act as mediator and facilitator.

(42)  Since gas supplies from third countries are central to the security of the Union gas supply, the Commission should coordinate action with regard to third countries, work with supplying and transit countries on arrangements to handle crisis situations and ensure a stable gas flow to the Union. This can be achieved when energy and external policies are coordinated in a consistent manner. The Commission should be entitled to deploy a task force to monitor gas flows in particular in crisis situations, in consultation with the third countries involved, and, where a crisis arises from difficulties in a third country, to act as mediator and facilitator. The Commission should continue its active involvement in the renewal of trilateral talks with Gazprom and Ukraine on Russian gas supplies to Ukraine in order to ensure that gas supplies from Russia to Ukraine are no longer used as a weapon in the Russia-Ukraine conflict and that Ukraine continues to be a reliable gas partner and transit country.

Amendment    20

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44)  The Member States acting on their own cannot satisfactorily achieve the objective of this Regulation, namely to guarantee a secure gas supply within the Union. Given the scale or effects of the action, it is better achieved at Union level. The Union may therefore adopt measures, in accordance with the principle of subsidiarity set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality set out in that Article, this Regulation does not go beyond what is necessary to achieve that objective.

(44)  The Member States acting on their own cannot satisfactorily achieve the objective of this Regulation, namely to guarantee a secure gas supply within the Union. National risk assessments and strategies are not sufficient. Given the scale or effects of the action, it is better achieved at Union level. The Union may therefore adopt measures, in accordance with the principle of subsidiarity set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality set out in that Article, this Regulation does not go beyond what is necessary to achieve that objective.

Amendment    21

Proposal for a regulation

Recital 45

 

Text proposed by the Commission

Amendment

(45)  To allow for a swift Union response to changing circumstances as regards security of gas supply, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amendment of regions and templates for risk assessment and plans. It is particularly important that the Commission carry out appropriate consultations during its preparatory work, including at expert level. When preparing and drawing up delegated acts, it should ensure that relevant documents are simultaneously sent to the European Parliament and the Council, in good time and in the appropriate manner.

(45)  To allow for a swift Union response to changing circumstances as regards security of gas supply, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amendment of templates for risk assessment and plans. It is particularly important that the Commission carry out appropriate consultations during its preparatory work, including at expert level. When preparing and drawing up delegated acts, it should ensure that relevant documents are simultaneously sent to the European Parliament and the Council, in good time and in the appropriate manner.

Amendment    22

Proposal for a regulation

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

This Regulation establishes provisions aimed at safeguarding the security of gas supply by ensuring the proper and continuous functioning of the internal market in natural gas (“gas”), by allowing for exceptional measures to be implemented when the market can no longer deliver the required gas supplies and by providing for a clear definition and attribution of responsibilities among natural gas undertakings, the Member States and the Union regarding both preventive action and the reaction to concrete disruptions of supply. This Regulation also provides transparent mechanisms, in a spirit of solidarity, for the coordination of planning for, and response to, an emergency at Member State, regional and Union levels.

This Regulation establishes provisions aimed at safeguarding the security of gas supply by ensuring the proper and continuous functioning of the internal market in natural gas (“gas”), by allowing for exceptional measures to be implemented when the market can no longer deliver the required gas supplies and by providing for a clear definition and attribution of responsibilities among natural gas undertakings, the Member States and the Union regarding both preventive action and the reaction to concrete disruptions of supply. This Regulation also provides transparent mechanisms, in a spirit of solidarity, for the coordination of planning for, and response to, an emergency at Member State, regional and Union levels in order to strengthen the Energy Union and energy security.

Amendment    23

Proposal for a regulation

Article 2 – paragraph 2 – point 1 – introductory part

 

Text proposed by the Commission

Amendment

(1)  'protected customer’ means a household customer connected to a gas distribution network and, in addition, where the Member State concerned so decides, may also mean one or more of the following:

(1)  'protected customer’ means a household customer connected to a gas distribution network and, in addition, in the event that the competent authorities within each region so decide, may also mean one or more of the following:

Amendment    24

Proposal for a regulation

Article 2 – paragraph 2 – point 1 – point a

Text proposed by the Commission

Amendment

(a)  a small or medium-sized enterprise, provided that it is connected to a gas distribution network, or an essential social service, provided that it is connected to a gas distribution or transmission network, and provided that such enterprises or services do not represent jointly more than 20 % of the total annual final gas consumption in that Member State;

(a)  a small or medium-sized enterprise, provided that it is connected to a gas distribution network where there are strong grounds, or an essential social service, provided that it is connected to a gas distribution or transmission network, and provided that such enterprises or services do not represent jointly more than 20 % of the total annual final gas consumption in that Member State;

Amendment    25

Proposal for a regulation

Article 3 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a.  Security of gas supply shall also ensure affordable prices of energy for Union citizens, to combat energetic poverty.

Amendment    26

Proposal for a regulation

Article 3 – paragraph 3

Text proposed by the Commission

Amendment

3.  Each Member State shall notify to the Commission without delay the name of the competent authority and any changes thereto. Each Member State shall make the name of the competent authority public.

3.  Each Member State shall, without delay, notify to the Commission the name of the competent authority and any changes thereto. Each Member State shall make the name of the competent authority public.

Amendment    27

Proposal for a regulation

Article 3 – paragraph 7 – subparagraph 2

 

Text proposed by the Commission

Amendment

The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to amend Annex I based on the criteria set out in the first subparagraph of this paragraph if the circumstances warrant a need for a change of a region.

deleted

Amendment    28

Proposal for a regulation

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

1.  Each Member State or, where a Member State so provides, the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure, the technical capacity of the remaining infrastructure, determined according to the N – 1 formula as provided in point 2 of Annex II, is able, without prejudice to paragraph 2 of this Article, to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years. This is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in Directive 2009/73/EC and Regulation (EC) No 715/2009.

1.  Each Member State or the competent authority shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure, the technical capacity of the remaining infrastructure, determined according to the N – 1 formula as provided in point 2 of Annex II, is able, without prejudice to paragraph 2 of this Article, to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years. This is without prejudice to the responsibility of system operators to make the corresponding investments and to the obligations of transmission system operators as laid down in Directive 2009/73/EC and Regulation (EC) No 715/2009.

Amendment    29

Proposal for a regulation

Article 4 – paragraph 6

Text proposed by the Commission

Amendment

6.  In so far as an investment for enabling or enhancing permanent bi-directional capacity is not required by the market and where that investment incurs costs in more than one Member State or in one Member State for the benefit of another Member State, the national regulatory authorities of all Member States concerned shall jointly decide on cost allocation before any investment decision is taken. The cost allocation shall in particular take into account the proportion of the benefits of the infrastructure investments for the increase of security of supply of the Member States concerned as well as investments already made in the infrastructure in question.

6.  In so far as an investment for enabling or enhancing permanent bi-directional capacity is not required by the market and where that investment incurs costs in more than one Member State or in one Member State for the benefit of another Member State, the national regulatory authorities of all Member States concerned shall jointly decide on cost allocation before any investment decision is taken. The cost allocation shall in particular take into account the proportion of the benefits of the infrastructure investments for the increase of security of supply of the Member States concerned and geo-strategic and political challenges, which may amount to additional investiture costs to the Member States concerned, as well as investments already made in the infrastructure in question. Full use of available funds should be made to facilitate those investments.

Amendment    30

Proposal for a regulation

Article 5 – paragraph 1 – subparagraph 2

 

Text proposed by the Commission

Amendment

No later than 31 March 2017 Member States shall notify the Commission their definition of protected customers, the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that Member State. Where a Member State includes in its definition of protected customers the categories referred to in point (a) or (b) of Article 2 (1) it shall specify in the notification to the Commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas.

No later than 31 March 2017 the competent authorities within each region shall notify the Commission the definition of protected consumers in that region, the annual and daily gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in respective Member States as well as how it could influence cross-border flows in the region. Where a Member State includes in its definition of protected customers the categories referred to in point (a) or (b) of Article 2 (1) it shall specify in the notification to the Commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas.

Amendment    31

Proposal for a regulation

Article 6 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authorities of each region as listed in Annex I shall jointly make an assessment at regional level of all risks affecting the security of gas supply. The assessment shall take into account all relevant risks such as natural disasters, technological, commercial, social, political and other risks. The risk assessment shall be carried out by:

1.  The competent authorities of each region as listed in Annex I shall jointly and after consulting relevant stakeholders make a comprehensive assessment at regional level of all risks affecting the security of gas supply. The assessment shall take into account all relevant risks such as natural disasters, technological, commercial, social, political, economic and other risks. The risk assessment shall be carried out by:

Amendment    32

Proposal for a regulation

Article 6 – paragraph 1 – point b

 

Text proposed by the Commission

Amendment

(b)  taking into account all relevant national and regional circumstances, in particular market size, network configuration, actual flows, including outflows from the Member States concerned, the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system, the presence of production and storage and the role of gas in the energy mixes, in particular with respect to district heating and electricity generation and for the operation of industries, and safety and gas quality considerations;

(b)  taking into account all relevant national and regional circumstances, in particular preventive action plans and emergency plans developed under Regulation (EU) No 994/2010, updated as appropriate, market size, network configuration, actual flows, including outflows from the Member States concerned, the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system, the presence of production and storage and the role of gas in the energy mixes, in particular with respect to district heating and electricity generation and for the operation of industries, and safety and gas quality considerations;

Amendment    33

Proposal for a regulation

Article 6 – paragraph 2

 

Text proposed by the Commission

Amendment

2.  The competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this Article. Competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment. The Commission may have a facilitating role overall in the preparation of the risk assessment, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission may propose a cooperation mechanism for that region.

2.  The competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this Article. Competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment. The Commission shall have a facilitating role overall in the preparation of the risk assessment, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission shall propose a cooperation mechanism for that region.

Amendment    34

Proposal for a regulation

Article 6 – paragraph 5

 

Text proposed by the Commission

Amendment

5.  The risk assessment once agreed by all Member States in the region shall be notified to the Commission for the first time no later than on 1 September 2018. The risk assessment shall be updated every four years unless circumstances warrant more frequent updates. The risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in Article 4 and of country-specific difficulties encountered in the implementation of new alternative solutions. It shall also build on the experience acquired through the simulation of the emergency plans contained in Article 9 (2).

5.  The risk assessment once agreed by all Member States in the region shall be notified to the Commission for the first time no later than on 1 September 2018. The risk assessment shall be updated every four years unless circumstances warrant more frequent updates. The risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in Article 4 and of country-specific difficulties encountered in the implementation of new alternative solutions. It shall also build on the experience acquired through the simulation of the emergency plans contained in Article 9 (2). If the competent authorities within a region do not agree on the risk assessment, the Commission shall present a risk assessment for that region in cooperation with the competent authorities.

Amendment    35

Proposal for a regulation

Article 7 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authorities of the Member States of each region as listed in Annex I, after consulting the natural gas undertakings, the relevant organisations representing the interests of household and industrial gas customers, including electricity producers, and the national regulatory authorities, where they are not the competent authorities, shall establish jointly:

1.  The competent authorities of the Member States of each region as listed in Annex I, after consulting the natural gas undertakings, the relevant organisations representing the interests of household and industrial gas customers, including electricity producers, and the national regulatory authorities, where they are not the competent authorities and after taking into account the content and structure of national plans and mechanisms, shall establish jointly:

Amendment    36

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 3

 

Text proposed by the Commission

Amendment

Competent authorities shall regularly report to the Gas Coordination Group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans. In particular competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans. The Commission may have a facilitating role overall in the preparation of the plans, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission may propose a cooperation mechanism for that region. They shall ensure the regular monitoring of the implementation of such plans.

Competent authorities shall regularly report to the Gas Coordination Group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans. In particular competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans. The Commission shall have a facilitating role overall in the preparation of the plans, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission shall develop a cooperation mechanism for that region. They shall ensure the regular monitoring of the implementation of such plans.

Amendment    37

Proposal for a regulation

Article 8 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  the definition of protected customers in each Member State of the region and the information described in the second subparagraph of Article 5(1);

(b)  the definition of protected customers in each Member State of the region and the information described in the second subparagraph of Article 5(1); the definition of protected customers should be harmonised at Union level;

Amendment    38

Proposal for a regulation

Article 8 – paragraph 1 – point e

 

Text proposed by the Commission

Amendment

(e)  the other preventive measures designed to address the risks identified in the risk assessment, such as those relating to the need to enhance interconnections between neighbouring Member States and the possibility to diversify gas routes and sources of supply, if appropriate, to address the risks identified in order to maintain gas supply to all customers as far as possible;

(e)  the other preventive measures designed to address the risks identified in the risk assessment, such as those relating to the need to enhance interconnections between neighbouring Member States and the possibility to diversify gas routes and sources of supply, to initiate or increase deliveries from alternative suppliers through a voluntary demand aggregation mechanism, if appropriate, to address the risks identified in order to maintain gas supply to all customers as far as possible;

Amendment    39

Proposal for a regulation

Article 9 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b)  define the role and responsibilities of natural gas undertakings and of industrial gas customers including relevant electricity producers, taking account of the different extent to which they are affected in the event of gas supply disruptions, and their interaction with the competent authorities and where appropriate with the national regulatory authorities at each of the crisis levels defined in Article 10(1);

(b)  clearly define the role and responsibilities of natural gas undertakings and of industrial gas customers including relevant electricity producers, taking account of the different extent to which they are affected in the event of gas supply disruptions, and their interaction with the competent authorities and where appropriate with the national regulatory authorities at each of the crisis levels defined in Article 10(1);

Amendment    40

Proposal for a regulation

Article 9 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e)  identify, if appropriate, the measures and actions to be taken to mitigate the potential impact of a gas supply disruption on district heating and the supply of electricity generated from gas;

(e)  identify, if appropriate, the measures and actions to be taken to mitigate the potential impact of a gas supply disruption on district heating and the supply of electricity generated from gas, taking into account regional specificities;

Amendment    41

Proposal for a regulation

Article 9 – paragraph 1 – point h

 

Text proposed by the Commission

Amendment

(h)  identify the contribution of market-based measures for coping with the situation at alert level and mitigating the situation at emergency level;

(h)  identify the contribution of market-based measures such as voluntary demand aggregation or virtual gas reserve mechanisms for coping with the situation at alert level and mitigating the situation at emergency level;

Amendment    42

Proposal for a regulation

Article 10 – paragraph 5 a (new)

 

Text proposed by the Commission

Amendment

 

5 a.  Where there is concrete, serious and reliable information that an event may occur which is likely to result in a significant deterioration of the supply situation (early warning) in a third country, the Commission shall pursue external action in line with the set of priorities outlined by the Council Conclusions on Energy Diplomacy of 20 July 2015 in cooperation with the third countries by, inter alia, engaging in consultations, providing mediation services and deploying task forces, where necessary.

Amendment    43

Proposal for a regulation

Article 12 – paragraph 2 – subparagraph 2

 

Text proposed by the Commission

Amendment

The first subparagraph shall apply to essential social services and district heating installations to the extent they are covered by the definition of protected customers in the respective Member State.

The first subparagraph shall apply to essential social services and district heating installations to the extent they are covered by the definition of protected customers in the respective region.

Amendment    44

Proposal for a regulation

Article 12 – paragraph 2 a (new)

 

Text proposed by the Commission

Amendment

 

2 a.  If the Member States concerned are unable to agree on the circumstances warranting the resumption of supply to customers other than households, essential social services and district heating installations, the Commission shall, after consulting the Gas Coordination Group, and in accordance with Article 10(1), present the assessment of the supply standard in the Member States which declared the emergency crisis level.

Amendment    45

Proposal for a regulation

Article 12 – paragraph 4

Text proposed by the Commission

Amendment

4.  The technical, legal and financial arrangements for the application of paragraph 3 shall be agreed among the Member States which are directly connected to each other and described in the emergency plans of their respective regions. Such arrangements may cover, among others, gas prices to be applied, use of interconnectors, including bi-directional capacity, gas volumes and the coverage of compensation costs. Market-based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3. In case the technical, legal and financial arrangements necessary to apply paragraph 3 are amended, the relevant emergency plan shall be updated accordingly.

4.  The technical, legal and financial arrangements for the application of paragraph 3 shall be agreed at the regional and inter-regional levels and described in the emergency plans. Such arrangements may cover, among others, gas prices to be applied, use of interconnectors, including bi-directional capacity, gas volumes and the shared responsibility for compensation costs. Market-based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3. Those gas prices and compensation costs and mechanisms shall be reviewed regularly. In case the technical, legal and financial arrangements necessary to apply paragraph 3 are amended, the relevant emergency plan shall be updated accordingly. By 31 March 2019, the Commission shall prepare guidelines and a list of best practices aimed at facilitating those arrangements.

Amendment    46

Proposal for a regulation

Article 12 – paragraph 6

 

Text proposed by the Commission

Amendment

6.  If the Member States do not agree on the necessary technical, legal and financial arrangements, the Commission may propose a framework for such measures in its opinion and decision on the plans.

6.  If the Member States do not agree on the necessary technical, legal and financial arrangements, the Commission shall propose a framework for such measures in its opinion and decision on the plans with a view to strengthening the solidarity clause.

Amendment    47

Proposal for a regulation

Article 13 – paragraph 5

 

Text proposed by the Commission

Amendment

5.  Where the Commission considers that the gas supply in a region or the Union as whole is affected or is likely to be affected it may require the competent authorities to collect and submit to the Commission information necessary to assess the situation of the gas supply in the Union. The Commission may share its assessment with the Gas Coordination Group.

5.  Where the Commission considers that the gas supply in a region or the Union as whole is affected or is likely to be affected it shall require the competent authorities to collect and submit to the Commission information necessary to assess the situation of the gas supply in the Union. The Commission shall share its assessment with the Gas Coordination Group.

Amendment    48

Proposal for a regulation

Article 13 – paragraph 6 – point a – point vi

 

Text proposed by the Commission

Amendment

(vi)  conditions for the suspension of gas deliveries.

(vi)  conditions for modification and suspension of gas deliveries.

Amendment    49

Proposal for a regulation

Article 13 – paragraph 6 – point b

 

Text proposed by the Commission

Amendment

(b)  to the competent authority and to the Commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [OP: Please insert the date of entry in force of this Regulation] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the Member State concerned. The notification obligation shall not apply to the modifications related only to the gas price. The notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract.

(b)  to the competent authority and to the Commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [OP: Please insert the date of entry in force of this Regulation] that individually or cumulatively with other contracts with the same supplier or its affiliates exceed the threshold of 8 billion cubic metres or provide more than 40% of yearly natural gas consumption in the Member State concerned. The notification obligation shall not apply to the modifications related only to the gas price. The notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract.

Amendment    50

Proposal for a regulation

Article 13 – paragraph 9 a (new)

 

Text proposed by the Commission

Amendment

 

9 a.  If the Commission finds provisions in the contracts submitted under Article 13 to infringe this Regulation, it shall inform the national gas undertaking and respective competent authority about the incompatible provisions of the contracts concerned. The national gas undertaking shall take such information into consideration and, within three months of the date of receipt of the information from the Commission, shall provide the Commission with an explanation as to compliance with this Regulation. The Commission may consider further steps to ensure compliance with the Regulation, including making a request to amend the incompatible provisions and, if deemed necessary, initiate proceedings under the competition law.

Amendment    51

Proposal for a regulation

Article 13 – paragraph 9 b (new)

 

Text proposed by the Commission

Amendment

 

9 b.  The Commission shall take into account the information received under Article 13 in the preparation of a list of good practices as well as abusive clauses for reference of competent authorities and national undertakings.

Amendment    52

Proposal for a regulation

Article 14 – paragraph 1

Text proposed by the Commission

Amendment

1.  A Gas Coordination Group is established to facilitate the coordination of measures concerning security of gas supply. The Group shall be composed of representatives of the Member States, in particular of their competent authorities, as well as the Agency for the Cooperation of Energy Regulators (the “Agency”), the ENTSO for Gas and representative bodies of the industry concerned and those of relevant customers. The Commission shall, in consultation with the Member States, decide on the composition of the Group, ensuring it is fully representative. The Commission shall chair the Group. The Group shall adopt its rules of procedure.

1.  A Gas Coordination Group is established to improve the coordination of measures concerning security of gas supply. The Group shall be composed of representatives of the Member States, in particular of their competent authorities, as well as the Agency for the Cooperation of Energy Regulators (the “Agency”), the ENTSO for Gas and representative bodies of the industry concerned and those of relevant customers. The Commission shall, in consultation with the Member States, decide on the composition of the Group, ensuring it is fully representative. The Commission shall chair the Group. The Group shall adopt its rules of procedure.

Amendment    53

Proposal for a regulation

Article 15 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The second sentence of Article 3(2), Article 3(6), Article 4(3), (4) and (6), Article 5(2), point (d) of Article 6(1), points (b) and (e) of Article 7(5), points (e), (g), (i), of Article 8(1), point (b) and (c) of Article 8(4), points (j) and (m) of Article 9(1), Article 9(4), Article 10(4), Article 11(5) and Article 12 shall create obligations for the Members States towards an Energy Community Contracting Party subject to the following procedure:

1.  The second sentence of Article 3(2), Article 3(6), Article 4(3), (4) and (6), Article 5(2), point (d) of Article 6(1), points (b) and (e) of Article 7(5), points (e), (g), (i), of Article 8(1), point (b) and (c) of Article 8(4), points (j) and (m) of Article 9(1), Article 9(4), Article 10(4), Article 11(5) and Article 12 shall create reciprocal obligations between the Members States and the Energy Community Contracting Party subject to the following procedure:

Amendment    54

Proposal for a regulation

Article 16 – paragraph 2

Text proposed by the Commission

Amendment

The Commission, on the basis of the assessments referred to in Article 7(5) shall, when appropriate, draw conclusions as to possible means to enhance security of supply at Union level and report to the European Parliament and the Council on the implementation of this Regulation, including, where necessary, recommendations for improvement of this Regulation.

The Commission, on the basis of the assessments referred to in Article 7(5) shall draw conclusions as to possible means to enhance security of supply at Union level and report to the European Parliament and the Council on the implementation of this Regulation, including recommendations for improvement of this Regulation.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Measures to safeguard the security of gas supply

References

COM(2016)0052 – C8-0035/2016 – 2016/0030(COD)

Committee responsible

       Date announced in plenary

ITRE

7.3.2016

 

 

 

Opinion by

       Date announced in plenary

AFET

7.3.2016

Rapporteur

       Date appointed

Jacek Saryusz-Wolski

15.3.2016

Discussed in committee

14.6.2016

30.8.2016

 

 

Date adopted

12.9.2016

 

 

 

Result of final vote

+:

–:

0:

41

6

0

Members present for the final vote

Lars Adaktusson, Michèle Alliot-Marie, Nikos Androulakis, Francisco Assis, Petras Auštrevičius, Elmar Brok, Klaus Buchner, James Carver, Fabio Massimo Castaldo, Lorenzo Cesa, Javier Couso Permuy, Andi Cristea, Arnaud Danjean, Georgios Epitideios, Knut Fleckenstein, Eugen Freund, Iveta Grigule, Sandra Kalniete, Manolis Kefalogiannis, Tunne Kelam, Afzal Khan, Eduard Kukan, Ilhan Kyuchyuk, Arne Lietz, Barbara Lochbihler, Andrejs Mamikins, Ramona Nicole Mănescu, David McAllister, Javier Nart, Demetris Papadakis, Alojz Peterle, Tonino Picula, Kati Piri, Cristian Dan Preda, Sofia Sakorafa, Jacek Saryusz-Wolski, Jaromír Štětina, Charles Tannock, Miguel Urbán Crespo, Ivo Vajgl, Hilde Vautmans

Substitutes present for the final vote

Reinhard Bütikofer, Othmar Karas, Javi López, Jean-Luc Schaffhauser, Traian Ungureanu

Substitutes under Rule 200(2) present for the final vote

Heidi Hautala


OPINION of the Committee on Regional Development (14.9.2016)

for the Committee on Industry, Research and Energy

on the proposal for a regulation of the European Parliament and of the Council concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010

(COM(2016)0052 – C8-0035/2016 – 2016/0030(COD))

Rapporteur: Tomasz Piotr Poręba

SHORT JUSTIFICATION

Since the adoption of Regulation 994/2010 the EU has made progress in integrating the internal gas market, paving the way for new solutions to be introduced for securing supply within the common market. However, experience has shown that the impact of cyclical gas crises affecting Europe goes beyond individual Member States and has repercussions for the whole of the EU right along the supply chain. Despite this, the level of cooperation between Member States has often proved insufficient.

Current rules only provide a minimum level of protection for national gas markets, safeguarding Member States against events of a technical nature or resulting from demand-side shocks, but do not in any way address the main regional problem, i.e. political risk.

In addition, the political tensions which Russia has caused in relations with Ukraine have necessitated a change in the way the security of gas supply in the EU is viewed. The resulting ongoing uncertainty over gas supplies is forcing us to take measures to assess the current level of security of EU gas supply and the possibilities for improving it.

I therefore welcome the new approach to the issue of ensuring security of supply and the proposals to introduce new, enhanced mechanisms for cooperation between Member States. Particularly worth noting are the proposals regarding the application of the solidarity principle and the strengthening of risk assessments and national and regional planning.

I am convinced that establishing regional groups within the EU will help to strengthen cooperation and solidarity between Member States and improve the security of gas supply to the EU, as well as enhancing the effectiveness of the Regulation itself.

The bottom-up, non-compulsory approach to regional cooperation applied thus far has proved ineffective in practice. There are still serious limitations in cooperation between Member States relating to the lack of possibilities for cooperation at transnational level. Proposing transparent criteria for defining regions and specific cooperation mechanisms will certainly diversify supply sources and routes, which is key in the event of an emergency.

A regional approach is also important in view of the need for the impact of potential crisis situations in the various EU countries to be evenly distributed. A major disruption in gas supplies from the east has a significant impact throughout the EU but the burden of the crisis is unevenly distributed.

Strengthening regional coordination, however, supported by uniform standards relating to supply and infrastructure laid down at EU level, will, in the event of a gas shortage, give the Member States real tools with which to manage the impact of a crisis caused by disruptions in the supply system or exceptionally high demand.

Improving the regions’ resilience to supply disruptions stemming from political action will strengthen the resilience of the EU as a whole to disruptions in the supply of natural gas, while extending regional cooperation and using crisis response mechanisms based on jointly prepared risk assessments will give the Member States the tools with which to prepare for any gas shortage.

I would also highlight the inclusion of the solidarity principle through the introduction of a mechanism guaranteeing priority supply to households, heating installations and essential social services (e.g. hospitals and schools) in Member States facing a gas supply crisis, even at the cost of reducing gas consumption in another country’s market.

I believe we will be able to come up with mechanisms guaranteeing the ability to deliver the required amount of natural gas to Member States which have declared an emergency.

AMENDMENTS

The Committee on Regional Development 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 1

Text proposed by the Commission

Amendment

(1)  Natural gas (gas) remains an essential component of the energy supply of the Union. A large proportion of such gas is imported into the Union from third countries.

(1)  Natural gas (gas) is an essential component of the energy supply of the Union in the transitional phase towards an ever increasing share of energy generated by renewable sources. A large proportion of such gas is imported into the Union from third countries. Therefore, the gas supply security has to be addressed at Union level as a joint solution that will bring more effective safeguards without undermining the internal energy market and without having adverse effects on other countries. The present political climate related to certain third countries, however, provides no guarantee for the reliability and continuity of supplies nor for the energy security of the Union and its Member States, therefore diversification from third countries and interconnections between Member States need to be enhanced.

Amendment    2

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2)  A major disruption of the gas supply can affect all Member States, the Union as a whole and Contracting Parties to the Treaty establishing the Energy Community, signed in Athens on 25 October 2005. It can also severely damage the Union economy and can have a major social impact, particularly on vulnerable groups of customers.

(2)  A major disruption of the gas supply can affect all Member States, the Union as a whole and Contracting Parties to the Treaty establishing the Energy Community, signed in Athens on 25 October 2005. It can also severely damage the Union economy and security and can have a major social impact, particularly on vulnerable groups of customers, such as installations with a continuous operating flow in particular in countries dependent on a single dominant supplier. It is therefore fundamental to diversify energy sources, suppliers and routes to prevent such situations in the first place, and to minimize the effects of unavoidable disruptions.

Amendment    3

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3)  This Regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the Union, in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply. These objectives should be achieved through the most cost-effective measures and in such a way that energy markets are not distorted.

(3)  This Regulation aims to ensure that all the necessary non-discriminatory measures are taken to safeguard an uninterrupted supply of gas throughout the Union, in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply. These objectives should be achieved through the most cost-effective intra- and interregional measures and in such a way that energy markets are not distorted and the minimum damage level in the case of installations with a continuous operating flow is not affected. Account should also be taken in the broader context of the security of gas supply, which should also be achieved through better diversification of supplies from third countries, new energy interconnections between Member States and the use of alternative energy sources. At the same time, it is essential to increase energy-security cooperation with the Union’s neighbouring countries, with strategic partners. It would complement Union action including funding aimed at increasing energy efficiency.

Amendment    4

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

(4)  Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply has already had a significant positive impact on the Union situation as regards the security of the gas supply, both in terms of preparation and mitigation. Member States are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures, and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply. However, the implementation report of Regulation (EU) No 994/2010 of October 2014 highlighted areas in which improvements to that Regulation could further bolster the Union supply security.

(4)  Existing Union law, in particular the relevant elements of the Third Energy Package and Regulation (EU) No 994/2010 of the European Parliament and of the Council has already had a significant positive impact on the Union situation as regards the security of the gas supply, both in terms of preparation and mitigation. Member States are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures, and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply. However, the implementation report of Regulation (EU) No 994/2010 of October 2014 highlighted areas in which improvements to that Regulation could further bolster the Union supply security.

Amendment    5

Proposal for a regulation

Recital 5 a (new)

Text proposed by the Commission

Amendment

 

(5a)  In order to safeguard the Union’s energy supply, it is necessary to diversify energy sources and build new energy interconnections between the Member States. At the same time, it is essential to increase energy-security cooperation with the Union’s neighbouring countries, with strategic partners and also among the Union institutions.

Amendment    6

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6)  The Commission Communication ‘Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy’14 from February 2015, highlights the fact that the Energy Union rests on solidarity and trust, which are necessary features of energy security. This regulation should aim to boost solidarity and trust between the Member States and should put in place the measures needed to achieve these aims, thus paving the way for implementing the Energy Union.

(6)  The Commission Communication ‘Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy’14 from February 2015 highlights the fact that the Energy Union rests on solidarity and trust, which are necessary features of energy security. This Regulation should aim to boost cooperation, solidarity, trust and interconnections between the Member States and should put in place the measures needed to achieve these aims, thus paving the way for rapidly establishing and implementing the Energy Union.

__________________

__________________

14 Communication from the Commission to the European Parliament and the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank, COM(2015) 80 final.

14 Communication from the Commission to the European Parliament and the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank, COM(2015) 80 final.

Amendment    7

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7)  An internal gas market that operates smoothly is the best guarantee of security of energy supply across the Union and to reduce the exposure of individual Member States to the harmful effects of supply disruptions. Where a Member State’s security of supply is threatened, there is a risk that measures developed unilaterally by that Member State may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other Member States. To allow the internal gas market to function even in the face of a shortage of supply, provision must be made for solidarity and coordination in the response to supply crises, as regards both preventive action and the reaction to actual disruptions of supply.

(7)  An internal gas market supervised by public regulatory authorities that operates smoothly is the best guarantee of security of energy supply across the Union and to reduce the exposure of individual Member States to the harmful effects of supply disruptions. Where a Member State's security of supply is threatened, there is a risk that measures developed unilaterally by one Member State may jeopardise the proper functioning of the internal gas market and spark a domino effect to customers in other Member States. To allow Members States to cope with a shortage of supply and the internal gas market to function even in the face of such shortage of supply, provision must be made for solidarity and coordination at regional and Union level in the response to supply crises as regards both preventive action and the reaction to actual disruptions of supply leading to integration of regions’ energy markets. In this regard the Union should further diversify energy sources, suppliers and supply routes, as a precondition of energy security and shall support, including through funding, those diversification-oriented projects that are fully in line with Union law and principles as well as with the Union’s long-term policy objectives and priorities, such as infrastructural projects.

Amendment    8

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8)  So far, the potential for more efficient and less costly measures through regional cooperation has not been fully exploited. This has to do not only with better coordination of national mitigation actions in emergency situations, but also of national preventive measures, such as national storage or policies related to liquefied natural gas (LNG), which can be strategically important in certain regions.

(8)  So far, the potential for more efficient and less costly measures through regional cooperation has not been fully exploited, and a concept of regional cooperation is needed, with the possibility of setting cooperation formats on the basis of consultations with the Member States, taking account of the energy dynamic. Better coordination of national mitigation actions in emergency situations is recommended, as well as of national preventive measures, such as national storage or policies related to liquefied natural gas (LNG), which can be strategically important in certain regions and an efficient use of existing infrastructure.

Amendment    9

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9)  In a spirit of solidarity, regional cooperation, involving both public authorities and natural gas undertakings, should be the guiding principle of this Regulation, to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost-effective measures for Union consumers.

(9)  In a spirit of solidarity, regional cooperation, involving both public authorities and natural gas undertakings should be the guiding principle of this Regulation, to identify the relevant risks in each region and optimise the benefits of coordinated measures at local, regional and cross-border level, in order to mitigate them and consolidate the security of the gas supply and to implement the most cost-effective measures for Union consumers. Regional cooperation should further increase the role of the Union in supporting cross-border cooperation efforts and should be complemented with a stronger Union perspective, allowing recourse to all available supplies and tools in the entire internal gas market. This could be facilitated by providing in-depth analysis at Union level on the relevant Emergency Supply Corridors, based on gas supply sources common for a group of Member States. In the framework of the regional cooperation the existing and the new infrastructure projects can be developed so that cross-border interconnections enhance security of gas supply. A further possibility to take into account when defining the regional groups should be the inclusion of future Member States involved in an enlargement process.

Amendment    10

Proposal for a regulation

Recital 10

Text proposed by the Commission

Amendment

(10)  Certain customers, including households and customers providing essential social services, are particularly vulnerable and may need social protection. A definition of such protected customers should not conflict with the Union solidarity mechanisms.

(10)  Certain customers, including households and customers providing essential social services, are particularly vulnerable and should be protected including from rapidly rising gas prices that are the result of a supply crisis. A definition of such protected customers should, to the extent possible, be further harmonised without undermining the Union Solidarity mechanisms

Amendment    11

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11)  Responsibility for security of gas supply should be shared by natural gas undertakings, Member States, acting through their competent authorities; and the Commission, within their respective remits. Such shared responsibility requires very close cooperation between these parties. However, customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply, as they can respond to a crisis by taking demand-side measures such as interruptible contracts and fuel switching, which have an immediate impact on the supply/demand balance.

(11)  Responsibility for security of gas supply should be shared by natural gas undertakings, Member States, acting through their competent national, regional and local authorities; and the Commission, within their respective remits. Such shared responsibility requires very close cooperation between these parties. However, customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply, as they can respond to a crisis by taking demand-side measures such as interruptible contracts and fuel switching, which have an immediate impact on the supply/demand balance.

Amendment    12

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11)  Responsibility for security of gas supply should be shared by natural gas undertakings, Member States, acting through their competent authorities; and the Commission, within their respective remits. Such shared responsibility requires very close cooperation between these parties. However, customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply, as they can respond to a crisis by taking demand-side measures such as interruptible contracts and fuel switching, which have an immediate impact on the supply/demand balance.

(11)  Responsibility for security of gas supply should be shared by natural gas undertakings, Member States, acting through their competent authorities; and the Commission, within their respective remits. Such shared responsibility requires very close cooperation between these parties. However, customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply, as they can respond to a crisis by taking demand-side measures such as energy efficiency, interruptible contracts and fuel switching, which have an immediate impact on the supply/demand balance.

Amendment    13

Proposal for a regulation

Recital 18 a (new)

Text proposed by the Commission

Amendment

 

(18a)  This Regulation should be taken into account both when operational plans are to be adopted for the use of ESI funding and in the financing criteria for EFSI projects.

Amendment    14

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19)  For the purpose of this Regulation, the following criteria should therefore be taken into account when defining the regional groups: supply patterns, existing and planned interconnections and interconnection capacity between Member States, market development and maturity, existing regional cooperation structures, and the number of Member States in a region, which should be limited to ensure that the group remains of a manageable size.

(19)  For the purpose of this Regulation, the following criteria should therefore be taken into account when defining the regional groups: supply patterns, existing and planned interconnections and interconnection capacity between Member States, market development and maturity, level of diversification of gas suppliers and routes, existing regional cooperation structures, and the number of Member States in a region, which should be limited to ensure that the group remains of a manageable size.

Amendment    15

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20)  In order to make the regional cooperation feasible, Member States should establish a cooperation mechanism within each region. Such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level. Member States are free to agree on a cooperation mechanism best suited for a given region. The Commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies. In absence of an agreement on the cooperation mechanism, the Commission may propose a suitable cooperation mechanism for a given region.

(20)  In order to make the regional cooperation feasible, Member States should establish clear administrative mechanisms, at intra- and interregional level, that would apply in emergency situations and on the basis of which the competent authorities could act. Such mechanism or mechanisms should be developed sufficiently in time and ensure a high degree of transparency to allow for conducting the risk assessment and drawing up meaningful plans at regional level and avoiding unfair costs for consumers. Member States are free to agree on a cooperation mechanism best suited for a given region and this mechanism may be reconfigured in line with the energy dynamic. The Commission should have a standard-setting and facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies. In absence of an agreement on the cooperation mechanism, the Commission should propose a suitable cooperation mechanism for a given region.

Amendment    16

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

(23)  To ensure maximum preparedness, so as to avoid a supply disruption and mitigate its effects should it nevertheless occur, the competent authorities of a given region must draw up preventive action plans and emergency, after consulting stakeholders. Regional plans should take account of the specific characteristics of each Member State. They should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities. National measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan. They should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation. The plans should be technical and operational in nature, their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects. The plans should take the security of electricity systems into account and be consistent with the Energy Union’s strategic planning and reporting tools.

(23)  To ensure maximum preparedness, so as to avoid a supply disruption and mitigate its effects should it nevertheless occur, the competent authorities of a given region must draw up preventive action plans and emergency, after consulting stakeholders. Regional plans should take account of the specific characteristics of each Member State. They should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities. National measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan. They should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation. The plans should be technical and operational in nature, their function being to help prevent the occurrence or escalation of an emergency, to mitigate its effects and to avoid the emergence of unfair costs for consumers. The plans should take the security of electricity systems into account and be consistent with the Energy Union’s strategic planning and reporting tools.

Amendment    17

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25)  In the event of a supply crisis, market players should be given sufficient opportunity to respond to the situation with market-based measures. Where market measures have been exhausted and they are still insufficient, Member States and their competent authorities should take measures to remove or mitigate the effects of the supply crisis.

(25)  In the event of a supply crisis, market players should be given sufficient opportunity to respond to the situation with market-based measures. Where market measures have not been timely, or have been exhausted and they are still insufficient, Member States and their competent authorities should take measures to remove or mitigate the effects of the supply crisis.

Amendment    18

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28)  Demand-side measures, such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order, may have a valuable role to play in ensuring energy security, if they can be applied quickly and significantly reduce demand in response to a supply disruption. More should be done to promote efficient energy use, particularly where demand-side measures are needed. The environmental impact of any demand and supply-side measures proposed must be taken into account, with preference being given, as far as possible, to measures that have least impact on the environment. At the same time, security of supply and competitiveness aspects must be taken into account.

(28)  Demand-side measures, such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order, may have a valuable role to play in ensuring energy security, if they can be applied quickly and significantly reduce demand in response to a supply disruption. More should be done to promote efficient energy use, particularly where demand-side measures are needed. Priority should be given to investments aimed at exploiting the sustainable energy potential at local level. The environmental impact of any demand and supply-side measures proposed must be taken into account, with preference being given, as far as possible, to measures that have least impact on the environment. At the same time, security of supply and competitiveness aspects must be taken into account.

Amendment    19

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32)  The preventive action plans and emergency plans should be updated regularly and published. They should be subject to peer review. The peer review process allows for early identification of inconsistencies and measures that could endanger other Member States’ security of supply, thereby ensuring that plans from different regions are consistent with one another. It also enables Member States to share best practice.

(32)  The regional preventive action plans and emergency plans, correlated with those at national level, must be updated regularly and published. They should be subject to peer review. The peer review process allows for early identification of inconsistencies and measures that could endanger other Member States’ security of supply, thereby ensuring that plans from different regions are consistent with one another. It also enables Member States to share best practice.

Amendment    20

Proposal for a regulation

Recital 36

Text proposed by the Commission

Amendment

(36)  As demonstrated by the October 2014 stress test, solidarity is needed to ensure security of supply across the Union and to keep overall costs to a minimum. If an emergency is declared in any Member State, a two-step approach should be applied to strengthen solidarity. Firstly, all Member States which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid. Secondly, if the first step fails to provide the necessary supply, further measures by neighbouring Member States, even if not in an emergency situation, should be triggered to ensure the supply to households, essential social services and district heating installations in the Member State experiencing the emergency. Member States should identify and describe the details of these solidarity measures in their emergency plans, ensuring fair and equitable compensation of the natural gas undertakings.

(36)  As demonstrated by the October 2014 stress test, solidarity based on regional cooperation is needed to ensure security of supply across the Union and to keep overall costs to a minimum. This solidarity should be defined on three levels of action – bilateral or regional, interregional and Union – and it should not be left to an individual regional group alone if a consistent and uniform approach at the Union level is needed. If an emergency is declared in any Member State, a two-step approach should be applied to strengthen solidarity. Firstly, all Member States which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid. Secondly, if the first step fails to provide the necessary supply, further measures by neighbouring Member States, even if not in an emergency situation, should be triggered to ensure the supply to households, essential social services and district heating installations in the Member State experiencing the emergency. Member States should identify and describe the details of these solidarity measures in their emergency plans, ensuring fair and equitable compensation of the natural gas undertakings.

Amendment    21

Proposal for a regulation

Recital 41

Text proposed by the Commission

Amendment

(41)  One of the Union goals is to strengthen the Energy Community that would ensure effective implementation of the Union energy acquis, energy market reforms and incentivising investments in the energy sector by closer integration of the Union and Energy Community energy markets. This entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the Energy Community Contracting Parties. Furthermore, the Commission Communication on the short term resilience of the European gas system from October 2014 refers to the need to apply internal energy market rules on the flow of energy between the Union Member States and the Energy Community Contracting Parties. In this regard, in order to ensure an efficient crisis management on borders between the Union Member States and the Contracting Parties, the necessary arrangements following the adoption of a Joint Act should be set so that specific cooperation with any individual Energy Community Contracting Party can take place once the required mutual provisions have been duly put into place.

(41)  One of the Union goals is to strengthen the Energy Community that would ensure effective implementation of the Union energy acquis, energy market reforms and incentivising investments in the energy sector by closer integration of the Union and Energy Community energy markets. This entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the Energy Community Contracting Parties. To that end, forecasts should be drawn up of consumption at regional level and the available reserves, which would make it possible to strengthen the ability to respond in the event of a crisis. Furthermore, the Commission Communication on the short term resilience of the European gas system from October 2014 refers to the need to apply internal energy market rules on the flow of energy between the Union Member States and the Energy Community Contracting Parties. In this regard, in order to ensure an efficient crisis management on borders between the Union Member States and the Contracting Parties, the necessary arrangements following the adoption of a Joint Act should be set so that specific cooperation with any individual Energy Community Contracting Party can take place once the required mutual provisions have been duly put into place.

Amendment    22

Proposal for a regulation

Recital 43

Text proposed by the Commission

Amendment

(43)  Where there is reliable information on a situation outside the Union that threatens the security of supply of one or several Member States and that may trigger an early warning mechanism involving the Union and a third country, the Commission should inform the Gas Coordination Group without delay and the Union should take appropriate action to try to defuse the situation.

(43)  Where there is reliable information on a situation outside the Union that threatens the security of supply of one or several Member States and that may trigger an early warning mechanism involving the Union and a third country, the Commission should inform the Gas Coordination Group without delay and the Union should take appropriate action to try to defuse the situation. Where the situation allows and adequate infrastructure exists, the Commission and the Member States could grant temporary aid to third countries in crisis.

Amendment    23

Proposal for a regulation

Article 2 – paragraph 2 – point 1 – introductory part

Text proposed by the Commission

Amendment

(1)  ‘protected customer’ means a household customer connected to a gas distribution network and, in addition, where the Member State concerned so decides, may also mean one or more of the following:

(1)  ‘protected customer’ means a household customer connected to a gas distribution network and, in addition, in the event that the competent authorities within each region so decide, may also mean one or more of the following:

Amendment    24

Proposal for a regulation

Article 2 – paragraph 2 – point 1 – point a

Text proposed by the Commission

Amendment

(a)  a small or medium-sized enterprise, provided that it is connected to a gas distribution network, or an essential social service, provided that it is connected to a gas distribution or transmission network, and provided that such enterprises or services do not represent jointly more than 20 % of the total annual final gas consumption in that Member State;

deleted

Amendment    25

Proposal for a regulation

Article 2 – paragraph 2 – point 2

Text proposed by the Commission

Amendment

(2)  ‘essential social service’ means a healthcare, emergency or security service;

(2)  'essential social service' means a healthcare, education, childcare emergency or security and defence service;

Amendment    26

Proposal for a regulation

Article 2 – paragraph 2 – point 3 a (new)

Text proposed by the Commission

Amendment

 

(3a)  'small and medium sized enterprise' means an entity connected to the transmission or distribution network with an available or planned capacity not exceeding 5 MWh/h;

Amendment    27

Proposal for a regulation

Article 2 – paragraph 2 – point 3 b (new)

Text proposed by the Commission

Amendment

 

(3b)  'competent authority' means a national governmental authority or a national regulatory authority as its competent authority that ensures the implementation of the measures provided for in this Regulation;

Amendment    28

Proposal for a regulation

Article 2 – paragraph 2 – point 3 c (new)

Text proposed by the Commission

Amendment

 

(3c)  'imports from third countries' means imports of gas from third countries that are not party to the Agreement on the European Economic Area.

Amendment    29

Proposal for a regulation

Article 3 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a.  The Commission shall actively support the diversification of supplies from third countries, in terms of both energy resources, gas suppliers and gas routes. For this purpose the Commission shall create conditions for improving energy infrastructure interconnections between Member States and for completion of the gas transmission routes defined by the priority corridors of Regulation (EU) No 347/20131a (TEN-E Regulation) “Emergency Supply Corridors” is a concept which is complimentary to and reinforces the regional approach as referred to in Annex I to that Regulation, and which means Union gas supply routes identified to help Member States to better mitigate the effects of potential supply and/or infrastructure disruption

 

_________________

 

1a Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115, 25.4.2013, p. 39).

Amendment    30

Proposal for a regulation

Article 3 – paragraph 5

Text proposed by the Commission

Amendment

5.  The Commission shall, where appropriate, coordinate the action of the competent authorities at regional and Union levels, as set out in this Regulation, inter alia, through the Gas Coordination Group referred to in Article 14 or the crisis management group referred to in Article 11(4), in particular in the event of a regional or Union emergency as defined in Article 11(1).

5.  The Commission shall coordinate the action of the competent authorities at regional and Union levels, as set out in this Regulation, inter alia, through the Gas Coordination Group referred to in Article 14 or the crisis management group referred to in Article 11(4), in particular in the event of a regional or Union emergency as defined in Article 11(1).

Amendment    31

Proposal for a regulation

Article 3 – paragraph 6

Text proposed by the Commission

Amendment

6.  The measures to ensure the security of supply contained in the preventive action plans and in the emergency plans shall be clearly defined, transparent, proportionate, non-discriminatory and verifiable, shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other Member States or of the Union as a whole.

6.  The preventive regional action plans and emergency plans shall be based on national plans for security of gas supply. The measures to ensure the security of supply contained in the regional preventive action plans correlated with those at national level and in the emergency plans shall be clearly defined, transparent, proportionate, non-discriminatory, verifiable, sustainable and consistent with the Union’s climate and energy objectives shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other Member States, regions or of the Union as a whole.

Amendment    32

Proposal for a regulation

Article 3 – paragraph 7 – point c a (new)

Text proposed by the Commission

Amendment

 

(ca)  ability to cover gas demand of protected consumers during interruption from single largest gas supplier;

Amendment    33

Proposal for a regulation

Article 3 – paragraph 7 – subparagraph 3

Text proposed by the Commission

Amendment

The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to amend Annex I based on the criteria set out in the first subparagraph of this paragraph if the circumstances warrant a need for a change of a region.

The composition of regions may be reassessed after the completion of a regional risk assessment, preventive action plan and emergency plan, but not earlier than in 2022. Any change in the composition of regions should be made by means of revision of this Regulation.

Amendment    34

Proposal for a regulation

Article 4 – paragraph 7

Text proposed by the Commission

Amendment

7.  The competent authority shall ensure that any new transmission infrastructure contributes to the security of supply through the development of a well-connected network, including, where appropriate, by means of a sufficient number of cross-border entry and exit points according to market demand and the risks identified. The competent authorities shall assess in the risk assessment whether internal bottlenecks exist and whether national entry capacity and infrastructures, in particular transmission networks, are capable of adapting the national and cross border gas flows to the scenario of the disruption of the single largest gas infrastructure at national level and the single largest gas infrastructure of common interest to the region identified in the risk assessment.

7  The competent authority shall ensure that any new transmission infrastructure contributes to the security of supply through the development of a well-connected network, including, where appropriate, by means of a sufficient number of cross-border entry and exit points according to market demand and the risks identified. The competent authorities shall assess in the risk assessment whether internal bottlenecks exist and whether national entry capacity and infrastructures, in particular transmission networks, are capable of adapting the national and cross border gas flows to the scenario of the disruption of the single largest gas infrastructure at national level and the single largest gas infrastructure of common interest to the region identified in the risk assessment. During a national, regional or Union-wide emergency situation the gas flow through bi-directional permanent capacity constructed to enhance security of supply in a Member State, shall have priority over other points in the system. The competent authorities shall study the possibility of using the opportunities offered by the CEF ‘Energy’ and ESI funds in general to develop energy infrastructure in the regions and adequate interconnections for those regions.

Amendment    35

Proposal for a regulation

Article 5 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authority shall require the natural gas undertakings, that it identifies, to take measures to ensure the supply of gas to the protected customers of the Member State in each of the following cases:

1.  The competent authority shall require the natural gas undertakings, supplying natural gas to protected consumers of the Member State, to take measures to ensure the supply of gas to the protected customers of the Member State in each of the following cases:

Amendment    36

Proposal for a regulation

Article 5 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

No later than 31 March 2017 Member States shall notify the Commission their definition of protected customers, the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that Member State. Where a Member State includes in its definition of protected customers the categories referred to in point (a) or (b) of Article 2 (1) it shall specify in the notification to the Commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas.

No later than 31 March 2017 the competent authorities within each region shall notify the Commission the definition of protected consumers in that region, the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in respective Member States as well as how it could influence cross-border flows in the region. Where a Member State includes in its definition of protected customers the categories referred to in point (a) or (b) of Article 2 (1) it shall specify in the notification to the Commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas.

Amendment    37

Proposal for a regulation

Article 6 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authorities of each region as listed in Annex I shall jointly make an assessment at regional level of all risks affecting the security of gas supply. The assessment shall take into account all relevant risks such as natural disasters, technological, commercial, social, political and other risks. The risk assessment shall be carried out by:

1.  The competent authorities of each region as listed in Annex I shall, on the basis of an assessment of the risks for individual Member States in each region, jointly make an assessment at regional level of all risks affecting the security of gas supply, including the risk assessment of each Member State of the region. The assessment shall take into account all relevant risks such as natural disasters, technological, commercial, social, political and other risks. The risk assessment shall be carried out in particular by:

Amendment    38

Proposal for a regulation

Article 6 – paragraph 1 – point c – point ii a (new)

Text proposed by the Commission

Amendment

 

(iia)   lack of ability to cover the estimated or calculated demand of protected customers in the region during supply disruption from the single largest supplier;

Amendment    39

Proposal for a regulation

Article 6 – paragraph 2 – subparagraph 1

Text proposed by the Commission

Amendment

The competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this Article. Competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment. The Commission may have a facilitating role overall in the preparation of the risk assessment, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission may propose a cooperation mechanism for that region.

The competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this Article. Competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment. The Commission shall have a facilitating role overall in the preparation of the risk assessment, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission shall develop a cooperation mechanism for that region.

Amendment    40

Proposal for a regulation

Article 6 – paragraph 4

Text proposed by the Commission

Amendment

4.  Natural gas undertakings, industrial gas customers, the relevant organisations representing the interests of household and industrial gas customers as well as Member States and the national regulatory authority, where it is not the competent authority, shall cooperate with the competent authorities and provide it upon request with all necessary information for the risk assessment.

4.  Natural gas undertakings, industrial gas customers, the relevant organisations representing the interests of household, protected and industrial gas customers as well as Member States and the national regulatory authority, where it is not the competent authority, shall cooperate with the competent authorities and provide it upon request with all necessary information for the risk assessment.

Amendment    41

Proposal for a regulation

Article 6 – paragraph 5

Text proposed by the Commission

Amendment

5.  The risk assessment once agreed by all Member States in the region shall be notified to the Commission for the first time no later than on 1 September 2018. The risk assessment shall be updated every four years unless circumstances warrant more frequent updates. The risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in Article 4 and of country-specific difficulties encountered in the implementation of new alternative solutions. It shall also build on the experience acquired through the simulation of the emergency plans contained in Article 9 (2).

5.  The risk assessment once agreed by all Member States in the region shall be notified to the Commission for the first time no later than on 1 September 2018. The risk assessment shall be updated every four years unless circumstances warrant more frequent updates. The risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in Article 4 and of country-specific difficulties encountered in the implementation of new alternative solutions. It shall also build on the experience acquired through the simulation of the emergency plans contained in Article 9 (2).If the competent authorities within a region do not agree on the risk assessment, the Commission shall present a risk assessment for that region in cooperation with the competent authorities.

Amendment    42

Proposal for a regulation

Article 7 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The competent authorities of the Member States of each region as listed in Annex I, after consulting the natural gas undertakings, the relevant organisations representing the interests of household and industrial gas customers, including electricity producers, and the national regulatory authorities, where they are not the competent authorities, shall establish jointly:

1.  The competent authorities of the Member States of each region as listed in Annex I, after consulting the natural gas undertakings, the relevant organisations representing the interests of household, protected and industrial gas customers, including electricity producers, and the national regulatory authorities, where they are not the competent authorities, shall establish jointly a coherent framework at Union level:

Amendment    43

Proposal for a regulation

Article 7 – paragraph 1 – point b a (new)

Text proposed by the Commission

Amendment

 

(ba)  arrangements for sharing costs between Member States where a customer in one Member State is adversely affected by a disruption in gas consumption and is forced to move to other fuels (from gas to oil in the case of power plants), owing to protected supplies to customers in the other Member State.

Amendment    44

Proposal for a regulation

Article 7 – paragraph 1 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

 

By aggregating the regional preventive and emergency plans, the Commission in consultation with competent authorities, ACER and Entso-g, shall prepare a preventive action plan and an emergency plan at Union level.

Amendment    45

Proposal for a regulation

Article 7 – paragraph 1 – subparagraph 1 b (new)

Text proposed by the Commission

Amendment

 

The purpose of the preventive action plan and the emergency plan is to help map risks and potentials in the Union to mitigate the risks, differentiate measures between respective regions, as well as assess specific needs of each region in comparison to other regions.

Amendment    46

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 1

Text proposed by the Commission

Amendment

The competent authorities within each region shall agree on a cooperation mechanism sufficiently in time to establish the plans and allow for their notification and for the notification of the updated plans.

The competent authorities within each region shall agree on a cooperation mechanism, bearing in mind the principle of Union territorial cooperation, sufficiently in time to establish the plans and allow for their notification and for the notification of the updated plans.

Amendment    47

Proposal for a regulation

Article 7 – paragraph 2 – subparagraph 3

Text proposed by the Commission

Amendment

Competent authorities shall regularly report to the Gas Coordination Group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans. In particular competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans. The Commission may have a facilitating role overall in the preparation of the plans, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission may propose a cooperation mechanism for that region. They shall ensure the regular monitoring of the implementation of such plans.

Competent authorities shall regularly report to the Gas Coordination Group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans. In particular competent authorities shall report to the Gas Coordination Group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans. The Commission shall have a facilitating role overall in the preparation of the plans, in particular for the establishment of the cooperation mechanism. If competent authorities within a region do not agree on a cooperation mechanism, the Commission shall develop a cooperation mechanism for that region. They shall ensure the regular monitoring of the implementation of such plans.

Amendment    48

Proposal for a regulation

Article 7 – paragraph 4 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

 

At the request of a competent authority, specific parts of the preventive action plan and the emergency plan may be excluded from publication. In that case, the competent authority concerned shall provide the Commission with a comprehensive summary of the plans to make them publicly available. The comprehensive summary shall contain at least all main elements of the plans in accordance with Annex V, in order to provide market players with sufficient information to comply with the requirements of this Regulation. The complete versions of the plans shall be available to competent authorities of other regions, the Commission and the Agency for Cooperation of Energy Regulators (ACER)

Amendment    49

Proposal for a regulation

Article 8 – paragraph 6

Text proposed by the Commission

Amendment

6.  The preventive action plan shall be updated every four years after 1 March 2019, unless circumstances warrant more frequent updates or at the Commission’s request. The updated plan shall reflect the updated risk assessment and the results of the tests carried out in accordance with Article 9 (2). Article 7(3) to (7) shall apply to the updated plan.

6.  The preventive action plan shall be updated at least every four years after 1 March 2019, unless circumstances warrant more frequent updates or at the Commission's request. The updated plan shall reflect the updated risk assessment and the results of the tests carried out in accordance with Article 9 (2). Article 7(3) to (7) shall apply to the updated plan.

Amendment    50

Proposal for a regulation

Article 9 – paragraph 1 – point h

Text proposed by the Commission

Amendment

(h)  identify the contribution of market-based measures for coping with the situation at alert level and mitigating the situation at emergency level;

(h)  identify the contribution of market-based measures, such as launching voluntary collective purchasing or activating common virtual gas reserves, for coping with the situation at alert level and mitigating the situation at emergency level;

Amendment    51

Proposal for a regulation

Article 9 – paragraph 1 – point j a (new)

Text proposed by the Commission

Amendment

 

(ja)  set out the procedures to be applied in the event of a failure of the gas supply in several Member States at the same time, and the procedures in the event of a reduction in the stockpiles in a Member State caused by their use as compensation under the solidarity principle;

Amendment    52

Proposal for a regulation

Article 10 – paragraph 2

Text proposed by the Commission

Amendment

2.  When the competent authority declares any of the crisis levels referred to in paragraph 1, it shall immediately inform the Commission and provide it with all the necessary information, in particular with information on the action it intends to take. In the event of an emergency which may result in a call for assistance from the Union and its Member States, the competent authority of the Member State concerned shall without delay notify the Commission’s Emergency Response Coordination Centre.

2.  When the competent authority declares any of the crisis levels referred to in paragraph 1, it shall immediately inform the Commission and the competent authorities in the region and provide them with all the necessary information, in particular with information on the action it intends to take. In the event of an emergency which may result in a call for assistance from the Union and its Member States, the competent authority of the Member State concerned shall without delay notify the Commission’s Emergency Response Coordination Centre.

Amendment    53

Proposal for a regulation

Article 10 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5a.  Where there is concrete, serious and reliable information that an event may occur which is likely to result in a significant deterioration of the supply situation (early warning) in a third country, the Commission shall pursue external action in line with the set of priorities outlined by the Council Conclusions on Energy Diplomacy of 20 July 2015 in cooperation with the third countries by, inter alia, engaging in consultations, providing mediation services and deploying task forces, where necessary.

Amendment    54

Proposal for a regulation

Article 10 a (new)

Text proposed by the Commission

Amendment

 

Article 10 a

 

Emergency Supply Corridors

 

1.   As of 1 November 2017, ENTSO for Gas shall perform the tasks set out in this Article.

 

2.  It shall carry out a Union-wide simulation of supply and infrastructure disruption scenarios. The scenarios shall be defined by ENTSO for Gas in consultation with the Gas Coordination Group. The competent authorities shall provide ENTSO for Gas with the necessary data for the simulations such as daily peak demand values, domestic production capacity and demand side measures.

 

It shall identify and asses Emergency Supply Corridors, complementary to the regional approach as referred to in Annex I, along which gas can flow between regions in order to prevent fragmentation of the internal gas market. The results of that assessment and the proposal of the Emergency Supply Corridors shall be discussed in the Gas Coordination Group.

 

That Union-wide simulation and those Emergency Supply Corridors shall be updated every three years, unless circumstances warrant more frequent updates.

 

3.  In the event of an emergency declared by one or more competent authorities, the Member States on the Emergency Supply Corridors shall ensure that all essential information is provided as regards the gas supply, in particular, available gas quantities, possible modalities and sources for gas channelling to the Member States having declared the emergency. Member States on the Emergency Supply Corridor shall ensure that no measures prevent the supply of gas to the Member States that have declared the emergency.

 

4.  The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to establish the Emergency Supply Corridors.

Amendment    55

Proposal for a regulation

Article 11 – paragraph 1

Text proposed by the Commission

Amendment

1.  At the request of a competent authority that has declared an emergency and following the verification in accordance with Article 10(5), the Commission may declare a regional or Union emergency. At the request of at least two competent authorities that have declared an emergency and following the verification in accordance with Article 10(5), and where the reasons for these emergencies are linked, the Commission shall declare, as appropriate, a regional or Union emergency. In all cases, the Commission, using the means of communication most appropriate to the situation, shall gather the views of, and take due account of all the relevant information provided by the other competent authorities. When it assesses that the underlying basis for the regional or Union emergency no longer justifies a declaration of emergency, the Commission shall declare an end to the regional or Union emergency. In all cases, the Commission shall give its reasons and inform the Council of its decision.

1.  At the request of a competent authority that has declared an emergency and following the verification in accordance with Article 10(5), the Commission may declare an emergency for a specifically affected region or the Union. At the request of at least two competent authorities that have declared an emergency and following the verification in accordance with Article 10(5), and where the reasons for these emergencies are linked, the Commission shall declare, as appropriate, a regional or Union emergency. In all cases, the Commission, using the means of communication most appropriate to the situation, shall gather the views of, and take due account of all the relevant information provided by the other competent authorities. When it assesses that the underlying basis for the regional or Union emergency no longer justifies a declaration of emergency, the Commission shall declare an end to the regional or Union emergency. In all cases, the Commission shall give its reasons and inform the Council of its decision.

Amendment    56

Proposal for a regulation

Article 12 – paragraph -1 (new)

Text proposed by the Commission

Amendment

 

-1.  In the context of the future Energy Union, security of energy supply is paramount. Member States shall coordinate and cooperate with their neighbours when developing their energy policies. The Commission shall, to that end, examine how the current architecture of national-based preventive and emergency response measures could be streamlined at both regional and Union level.

Amendment    57

Proposal for a regulation

Article 12 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

The first subparagraph shall apply to essential social services and district heating installations to the extent they are covered by the definition of protected customers in the respective Member State.

The first subparagraph shall apply to essential social services and district heating installations to the extent they are covered by the definition of protected customers in the respective region.

Amendment    58

Proposal for a regulation

Article 12 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a.  If the Member States concerned are unable to agree on the circumstances warranting the resumption of supply to customers other than households, essential social services and district heating installations, the Commission shall, after consulting the Gas Coordination Group, and in accordance with Article 10(1), present the assessment of the supply standard in the Member States which declared the emergency crisis level.

Amendment    59

Proposal for a regulation

Article 12 – paragraph 4

Text proposed by the Commission

Amendment

4.  The technical, legal and financial arrangements for the application of paragraph 3 shall be agreed among the Member States which are directly connected to each other and described in the emergency plans of their respective regions. Such arrangements may cover, among others, gas prices to be applied, use of interconnectors, including bi-directional capacity, gas volumes and the coverage of compensation costs. Market-based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3. In case the technical, legal and financial arrangements necessary to apply paragraph 3 are amended, the relevant emergency plan shall be updated accordingly.

4.  The technical, legal and financial arrangements for the application of paragraph 3 shall be agreed among the Member States which are directly connected to each other and described in the emergency plans of their respective regions. For each of the regional groupings, the Commission shall prepare a minimum framework for the proposed mechanisms, which will cover, among others, gas prices to be applied, use of interconnectors, including guaranteed availability of bi-directional capacity, gas volumes and the coverage of compensation costs. Market-based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3. In case the technical, legal and financial arrangements necessary to apply paragraph 3 are amended, the relevant emergency plan shall be updated accordingly. The Commission shall prepare a solidarity arrangements template, including model clauses, and publish it.

Amendment    60

Proposal for a regulation

Article 12 – paragraph 5

Text proposed by the Commission

Amendment

5.  Paragraph 2 shall apply as of 1 March 2019.

5.  Paragraph 2 shall apply as of 1 October 2018.

Amendment    61

Proposal for a regulation

Article 12 – paragraph 6

Text proposed by the Commission

Amendment

6.  If the Member States do not agree on the necessary technical, legal and financial arrangements, the Commission may propose a framework for such measures in its opinion and decision on the plans.

6.  If the Member States do not agree on the necessary technical, legal and financial arrangements, the Commission shall develop a framework for such measures in its opinion and decision on the plans.

Amendment    62

Proposal for a regulation

Article 13 – paragraph 6 – point a – point vi

Text proposed by the Commission

Amendment

(vi)  conditions for the suspension of gas deliveries.

(vi)  conditions for the renegotiation and suspension of gas deliveries.

Amendment    63

Proposal for a regulation

Article 13 – paragraph 6 – point b

Text proposed by the Commission

Amendment

(b)  to the competent authority and to the Commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [OP: Please insert the date of entry in force of this Regulation] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the Member State concerned. The notification obligation shall not apply to the modifications related only to the gas price. The notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract.

(b)  to the competent authority and to the Commission immediately after their conclusion or modification the gas supply contracts with the same supplier from a third country or from its affiliates, with a duration of more than 1 year concluded or modified after [OJ: Please insert the date of entry in force of this Regulation] that individually or cumulatively with contracts of other natural gas undertakings on the same market with the same supplier or its affiliates exceed the threshold of 8 billion cubic meters or provide more than 40% of total annual gas imports from third countries to the Member State concerned. The notification obligation shall not apply to the gas price. The notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract. To that end, the national regulatory authorities shall monitor on a yearly basis the market supply structure and inform the relevant natural gas undertakings once the 40% threshold is exceeded. This information shall be communicated no later than the 1st June each year for the year proceeding the year for which the threshold was calculated.

Amendment    64

Proposal for a regulation

Article 13 – paragraph 8 a (new)

Text proposed by the Commission

Amendment

 

8a.  In the case of identification of any provisions contradictory to the Union law while assessing the gas supply contracts provided in accordance with point (b) of paragraph 6 and with paragraph 7, the Commission shall inform the entity and respective Competent Authority and request changes therein by eliminating the provisions contrary to the Union law. The entity or the Competent Authority may invite the Commission to participate in the talks aimed at eliminating the incompatibilities with the Union law.

Amendment    65

Proposal for a regulation

Article 13 – paragraph 9 a (new)

Text proposed by the Commission

Amendment

 

9a.  The Commission shall take into account the information received under this Article in the preparation of a list of good practices as well as abusive clauses for reference of competent authorities and national undertakings.

Amendment    66

Proposal for a regulation

Article 14 – paragraph 1

Text proposed by the Commission

Amendment

1.  A Gas Coordination Group is established to facilitate the coordination of measures concerning security of gas supply. The Group shall be composed of representatives of the Member States, in particular of their competent authorities, as well as the Agency for the Cooperation of Energy Regulators (the “Agency”), the ENTSO for Gas and representative bodies of the industry concerned and those of relevant customers. The Commission shall, in consultation with the Member States, decide on the composition of the Group, ensuring it is fully representative. The Commission shall chair the Group. The Group shall adopt its rules of procedure.

1.  A Gas Coordination Group is established to facilitate the coordination of measures concerning security of gas supply. The Group shall be composed of representatives of the Member States, in particular of their competent authorities, local and regional authorities, as well as the Agency for the Cooperation of Energy Regulators (the “Agency”), the ENTSO for Gas and representative bodies of the industry concerned and those of relevant customers. The Commission shall, in consultation with the Member States, decide on the composition of the Group, ensuring it is fully representative. The Commission shall chair the Group. The Group shall adopt its rules of procedure.

Amendment    67

Proposal for a regulation

Article 15 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1.  The second sentence of Article 3(2), Article 3(6), Article 4(3), (4) and (6), Article 5(2), point (d) of Article 6(1), points (b) and (e) of Article 7(5), points (e), (g), (i), of Article 8(1), point (b) and (c) of Article 8(4), points (j) and (m) of Article 9(1), Article 9(4), Article 10(4), Article 11(5) and Article 12 shall create obligations for the Members States towards an Energy Community Contracting Party subject to the following procedure:

1.  The second sentence of Article 3(2), Article 3(6), Article 4(3), (4) and (6), Article 5(2), point (d) of Article 6(1), points (b) and (e) of Article 7(5), points (e), (g), (i), of Article 8(1), point (b) and (c) of Article 8(4), points (j), (ja) and (m) of Article 9(1), Article 9(4), Article 10(4), Article 11(5) and Article 12 shall create obligations for the Members States towards an Energy Community Contracting Party subject to the following procedure:

Amendment    68

Proposal for a regulation

Article 15 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a.  In the event of the application of the solidarity principle referred to in Article 12, the Energy Community Contracting Parties shall provide the authorities of neighbouring Member States with sufficient information in accordance with Article 13.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Measures to safeguard the security of gas supply

References

COM(2016)0052 – C8-0035/2016 – 2016/0030(COD)

Committee responsible

       Date announced in plenary

ITRE

7.3.2016

 

 

 

Opinion by

       Date announced in plenary

REGI

7.3.2016

Rapporteur

       Date appointed

Tomasz Piotr Poręba

17.3.2016

Discussed in committee

16.6.2016

 

 

 

Date adopted

8.9.2016

 

 

 

Result of final vote

+:

–:

0:

17

9

6

Members present for the final vote

Pascal Arimont, Franc Bogovič, Victor Boştinaru, Steeve Briois, Andrea Cozzolino, Rosa D’Amato, Michela Giuffrida, Krzysztof Hetman, Ivan Jakovčić, Marc Joulaud, Constanze Krehl, Louis-Joseph Manscour, Martina Michels, Iskra Mihaylova, Jens Nilsson, Andrey Novakov, Stanislav Polčák, Fernando Ruas, Monika Smolková, Maria Spyraki, Ramón Luis Valcárcel Siso, Matthijs van Miltenburg, Lambert van Nistelrooij, Derek Vaughan, Kerstin Westphal, Joachim Zeller

Substitutes present for the final vote

Jan Olbrycht, Dimitrios Papadimoulis

Substitutes under Rule 200(2) present for the final vote

Czesław Hoc, Karol Karski, Julia Reda, Tatjana Ždanoka


PROCEDURE – COMMITTEE RESPONSIBLE

Title

Measures to safeguard the security of gas supply

References

COM(2016)0052 – C8-0035/2016 – 2016/0030(COD)

Date submitted to Parliament

10.2.2016

 

 

 

Committee responsible

       Date announced in plenary

ITRE

7.3.2016

 

 

 

Committees asked for opinions

       Date announced in plenary

AFET

7.3.2016

ECON

7.3.2016

ENVI

7.3.2016

IMCO

7.3.2016

 

TRAN

7.3.2016

REGI

7.3.2016

 

 

Not delivering opinions

       Date of decision

ECON

12.5.2016

ENVI

21.3.2016

IMCO

15.3.2016

TRAN

14.3.2016

Rapporteurs

       Date appointed

Jerzy Buzek

23.2.2016

 

 

 

Discussed in committee

20.4.2016

14.6.2016

12.7.2016

 

Date adopted

13.10.2016

 

 

 

Result of final vote

+:

–:

0:

55

5

2

Members present for the final vote

Nikolay Barekov, Bendt Bendtsen, Xabier Benito Ziluaga, José Blanco López, David Borrelli, Jerzy Buzek, Angelo Ciocca, Jakop Dalunde, Pilar del Castillo Vera, Fredrick Federley, Ashley Fox, Adam Gierek, Theresa Griffin, Roger Helmer, Hans-Olaf Henkel, Eva Kaili, Kaja Kallas, Barbara Kappel, Krišjānis Kariņš, Seán Kelly, Jaromír Kohlíček, Zdzisław Krasnodębski, Miapetra Kumpula-Natri, Janusz Lewandowski, Ernest Maragall, Edouard Martin, Angelika Mlinar, Nadine Morano, Dan Nica, Morten Helveg Petersen, Miroslav Poche, Carolina Punset, Herbert Reul, Paul Rübig, Algirdas Saudargas, Neoklis Sylikiotis, Antonio Tajani, Dario Tamburrano, Patrizia Toia, Evžen Tošenovský, Claude Turmes, Vladimir Urutchev, Henna Virkkunen, Martina Werner, Lieve Wierinck, Anna Záborská, Flavio Zanonato, Carlos Zorrinho

Substitutes present for the final vote

Pilar Ayuso, Michał Boni, Rosa D’Amato, Esther de Lange, Cornelia Ernst, Francesc Gambús, Jens Geier, Olle Ludvigsson, Vladimír Maňka, Marian-Jean Marinescu, Clare Moody, Maria Spyraki

Substitutes under Rule 200(2) present for the final vote

Michael Cramer, Maria Grapini

Date tabled

20.10.2016

Last updated: 5 September 2017Legal notice