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Common rules for the internal electricity market

12-07-2019

On 30 November 2016, the European Commission presented a legislative proposal for a recast directive on the internal market for electricity, as part of a comprehensive legislative package entitled 'Clean Energy for all Europeans'. The proposed directive would oblige Member States to ensure a more competitive, customer-centred, flexible and non-discriminatory EU electricity market with market-based supply prices. It would strengthen existing customer rights, introduce new ones and provide a framework ...

On 30 November 2016, the European Commission presented a legislative proposal for a recast directive on the internal market for electricity, as part of a comprehensive legislative package entitled 'Clean Energy for all Europeans'. The proposed directive would oblige Member States to ensure a more competitive, customer-centred, flexible and non-discriminatory EU electricity market with market-based supply prices. It would strengthen existing customer rights, introduce new ones and provide a framework for energy communities. Member States would have to monitor and address energy poverty. The proposal clarifies the tasks of distribution system operators and emphasises the obligation of neighbouring national regulators to cooperate on issues of cross-border relevance. The Council adopted its general approach in December 2017. In the European Parliament, the Committee on Industry, Research and Energy (ITRE) adopted its report in February 2018. A provisional trilogue agreement was reached in December 2018. The European Parliament adopted the text in the March II 2019 plenary session and the Council on 22 May 2019. The Directive entered into force on 4 July 2019 and must be transposed into national legislation by 31 December 2020. Fourth edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure. Please note this document has been designed for on-line viewing.

Internal market for electricity

12-07-2019

On 30 November 2016, the European Commission presented a legislative proposal for a regulation on the internal market for electricity, as part of a comprehensive legislative package on the energy union. The proposed regulation is aimed at making the electricity market fit for more flexibility, decarbonisation and innovation, by providing for undistorted market signals. It sets out rules for electricity trading within different time frames, and clarifies the responsibilities of market actors. It defines ...

On 30 November 2016, the European Commission presented a legislative proposal for a regulation on the internal market for electricity, as part of a comprehensive legislative package on the energy union. The proposed regulation is aimed at making the electricity market fit for more flexibility, decarbonisation and innovation, by providing for undistorted market signals. It sets out rules for electricity trading within different time frames, and clarifies the responsibilities of market actors. It defines principles for assessing capacity needs at regional and European level and proposes design principles for market-based capacity mechanisms with cross-border participation. It introduces regional operational centres for handling-system operation and a European entity for distribution system operators. The Council adopted its general approach in December 2017. In the European Parliament, the Committee on Industry, Research and Energy (ITRE) adopted its report in February 2018. A provisional trilogue agreement was reached on 19 December 2018. The European Parliament adopted the text in the March II 2019 plenary session and the Council on 22 May 2019. The Regulation entered into force on 4 July 2019. Fourth edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure. Please note this document has been designed for on-line viewing.

Risk-preparedness in the electricity sector

12-07-2019

On 30 November 2016, the European Commission adopted a proposal for a regulation on risk-preparedness in the electricity sector. This proposal addresses shortcomings in the existing legislation, notably a lack of regional coordination, and differing national rules and procedures. It would replace the existing legislation, and establish common rules on crisis prevention and crisis management in the electricity sector. Regional interdependencies would be taken into account in the preparation of national ...

On 30 November 2016, the European Commission adopted a proposal for a regulation on risk-preparedness in the electricity sector. This proposal addresses shortcomings in the existing legislation, notably a lack of regional coordination, and differing national rules and procedures. It would replace the existing legislation, and establish common rules on crisis prevention and crisis management in the electricity sector. Regional interdependencies would be taken into account in the preparation of national riskpreparedness plans and in managing crisis situations. Transparency would be enhanced by requiring an ex-post evaluation of crisis situations. In the European Parliament, the proposal was referred to the Committee on Industry, Research and Energy (ITRE), which adopted its report in February 2018. A trilogue agreement was reached in November 2018. The European Parliament adopted the text in the March II 2019 plenary session and the Council on 22 May 2019. The Regulation was published in the Official Journal on 14 June 2019 and entered into force on 4 July 2019. Fourth edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure. Please note this document has been designed for on-line viewing.

General arrangements for excise duty

05-03-2018

To ensure proper functioning of the internal market, Directive 2008/118/EC and related pieces of EU law seek harmonisation of the general conditions for charging excise duty on alcohol, tobacco and energy products. Disparities in the application of these rules can result in tax-induced movements of goods, loss of revenue and fraud. The REFIT initiative on general arrangements for excise duty, announced in the Commission's work programme for 2018, intends to further harmonise and simplify provisions ...

To ensure proper functioning of the internal market, Directive 2008/118/EC and related pieces of EU law seek harmonisation of the general conditions for charging excise duty on alcohol, tobacco and energy products. Disparities in the application of these rules can result in tax-induced movements of goods, loss of revenue and fraud. The REFIT initiative on general arrangements for excise duty, announced in the Commission's work programme for 2018, intends to further harmonise and simplify provisions for the export, import and transit of excise goods, inter alia through automation of movement control procedures.

Research for TRAN Committee - Battery-powered electric vehicles: market development and lifecycle emissions

15-02-2018

As 2018 gets under way, there are probably more than three million electric cars in circulation in the world. There are also more than six hundred million electric bikes, scooters and motorcycles. Plus a few hundred thousand electric buses and other types of quadricycles having an electric motor. The first part of this paper traces the fast evolving market of electric road vehicles. The second part shows that the production of hundreds of millions of battery packs requires a lot of energy and plenty ...

As 2018 gets under way, there are probably more than three million electric cars in circulation in the world. There are also more than six hundred million electric bikes, scooters and motorcycles. Plus a few hundred thousand electric buses and other types of quadricycles having an electric motor. The first part of this paper traces the fast evolving market of electric road vehicles. The second part shows that the production of hundreds of millions of battery packs requires a lot of energy and plenty of scarce resources, which affects the real impact of electric vehicles on the climate and the environment and make it necessary to consider the recovery and recycling of used batteries.

Autor externo

Linda Ager-Wick ELLINGSEN, Christine Roxanne HUNG

Mercado interno da energia

01-02-2018

A fim de harmonizar e liberalizar o mercado interno da energia da UE foram adotadas, desde 1996, medidas que abordam o acesso ao mercado, a transparência e a regulamentação, a proteção dos consumidores, o apoio à interligação e os níveis adequados de fornecimento. Estas medidas têm por objetivo criar um mercado da eletricidade da UE mais competitivo, centrado nos clientes e não discriminatório, com preços de abastecimento baseados no mercado. Ao fazê-lo, reforçam e ampliam os direitos dos clientes ...

A fim de harmonizar e liberalizar o mercado interno da energia da UE foram adotadas, desde 1996, medidas que abordam o acesso ao mercado, a transparência e a regulamentação, a proteção dos consumidores, o apoio à interligação e os níveis adequados de fornecimento. Estas medidas têm por objetivo criar um mercado da eletricidade da UE mais competitivo, centrado nos clientes e não discriminatório, com preços de abastecimento baseados no mercado. Ao fazê-lo, reforçam e ampliam os direitos dos clientes particulares e das comunidades de energia, lutam contra a pobreza energética, clarificam os papéis e as responsabilidades dos participantes no mercado e dos reguladores do mesmo, e abordam a segurança do abastecimento de eletricidade, gás e petróleo, bem como o desenvolvimento de redes transeuropeias de transporte de gás e eletricidade.

The Potential of Electricity Demand Response

15-09-2017

This report summarises the presentations and discussions made during a workshop on ‘The Potential of Electricity Demand Response’ organised on 30 May 2017 by Policy Department A for the Committee on Industry, Research and Energy (ITRE). The aim of the workshop was to highlight the role and potential of electricity demand response in achieving the EU energy and climate policy targets, to illustrate the current experiences and progress towards deployment of demand response across the EU and to identify ...

This report summarises the presentations and discussions made during a workshop on ‘The Potential of Electricity Demand Response’ organised on 30 May 2017 by Policy Department A for the Committee on Industry, Research and Energy (ITRE). The aim of the workshop was to highlight the role and potential of electricity demand response in achieving the EU energy and climate policy targets, to illustrate the current experiences and progress towards deployment of demand response across the EU and to identify and evaluate possible legislative and regulatory initiatives to optimally deploy the potential. The presentations and proceedings of this workshop should support the ITRE members in their evaluation of the related legislative proposals in the “Clean Energy for All Europeans package”.

Autor externo

Luc VAN NUFFEL, Jessica YEARWOOD

(Re-)Designing the internal market for electricity

11-04-2017

The IA appears to present a good and comprehensive analysis to identify the problems in the status quo, define the objectives of EU action, delineate policy options that can fulfil those objectives, assess the impacts of those options, and choose the best options to address the identified problems. This process seems to be based on sound data and research. In the explanation of the objectives, however, the distinction between what the IA refers to as the sub-objectives and the operational objectives ...

The IA appears to present a good and comprehensive analysis to identify the problems in the status quo, define the objectives of EU action, delineate policy options that can fulfil those objectives, assess the impacts of those options, and choose the best options to address the identified problems. This process seems to be based on sound data and research. In the explanation of the objectives, however, the distinction between what the IA refers to as the sub-objectives and the operational objectives does not appear to be very clear, raising doubts as to whether the sequential process required in the better regulation guidelines has been followed. Finally, the IA’s length and complexity somewhat limit its accessibility, although the sixteen page abstract added in response to the Regulatory Scrutiny Board’s recommendation goes some way towards addressing this issue.

Overview of the internal energy market design legislation

23-01-2017

The new proposals build on previous legislation and continue to gradually implement an internal energy market. In particular, they look to incorporate recent changes, such as the rapid increase in renewables and technological advances relating to the digitalisation of services. They also attempt to clarify previous legislation such as in the case of storage for Transmission System Operators (TSOs) for example. As with the recent proposals on security of gas supply, the Commission looks to incorporate ...

The new proposals build on previous legislation and continue to gradually implement an internal energy market. In particular, they look to incorporate recent changes, such as the rapid increase in renewables and technological advances relating to the digitalisation of services. They also attempt to clarify previous legislation such as in the case of storage for Transmission System Operators (TSOs) for example. As with the recent proposals on security of gas supply, the Commission looks to incorporate a regional approach as the default option for assessing needs and mitigating risks. The Commission's evaluation, as well as the review of the implementation process, have shown that, while progress has been made, challenges to create a properly functioning internal market remain. The challenges identified by the evaluation, such as price controls, insufficient cross-border trade, uncoordinated national interventions and issues around regulatory independence, are addressed by the current proposals. However, it is also clear from the evaluation that progress towards a well-functioning and competitive energy market has not been consistent across the EU. Where progress has been made, the effects have been positive, although the evaluation does not look at examples of best practice to assess the best way forward. The EU- wide oversight of national regulators and TSOs is seen as positive, but question marks remain in terms of whether the suggested changes will be sufficient. Several reviews on the topic have noted that the Agency for the Cooperation of Energy Regulators (ACER) lack sufficient powers to be effective and it is unclear whether the current proposals will properly address this issue. The public consultations also pointed to the dual role of the European Network for Transmission System Operators for electricity (ENTSO-E), as both a lobby organisation and a representative of public interest,  as potentially problematic. The creation of a European Distribution System Operator (DSO) could possibly duplicate this issue. The evaluation does not include any assessment around infrastructure legislation or the EU's role in this area; however, it notes that the incentives for private investments have been insufficient so far. It is hoped that the proposed moves to a more flexible and price-driven market should improve investment conditions. As reforms in this area have been ongoing since the 1990s, it will be particularly important to continue to monitor progress and to what extent the new proposals increase competition and a well-functioning, price-led market. In terms of the Parliament's demands, many of its requests are reflected in the proposals, such as calls for more regional cooperation, for example. They do not, however, include a review of the gas market or interconnectivity objectives differentiated by regions; nor do they look to address to any great extent the issue of external import. In the case of the ACER, Parliament had asked for a substantial increase in resources. While the proposals strengthen the agency's position, the Commission decided not to propose making the ACER into a pan-European regulator, with the increase in budget and staff that such a move would have entailed.

European statistics on natural gas and electricity prices

23-01-2017

Member States would have to collect statistics on the prices charged to industrial consumers and households for natural gas and electricity. Price data would be reported every six months for different consumption volumes, and cover energy prices, network charges, taxes and levies, and their sub-components. The proposed regulation would replace Directive 2008/92/EC that requires Member States to collect such statistics for industrial consumers. Data on gas and electricity prices for households are ...

Member States would have to collect statistics on the prices charged to industrial consumers and households for natural gas and electricity. Price data would be reported every six months for different consumption volumes, and cover energy prices, network charges, taxes and levies, and their sub-components. The proposed regulation would replace Directive 2008/92/EC that requires Member States to collect such statistics for industrial consumers. Data on gas and electricity prices for households are currently collected on a voluntary basis. Statistical data on gas and electricity prices are needed for monitoring the internal market for energy, and the impacts of various policies in the field of energy, such as support for renewable energy sources. The Commission has committed to preparing reports about energy costs and prices every two years, starting in 2016. The regulation came into force in December 2016 after completion of the legislative procedure in the European Parliament and the Council. This briefing updates an earlier edition, of June 2016: PE 583.850.

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