Regulation (EU) 2024/1789 of the European Parliament and of the Council of 13 June 2024 on the internal markets for renewable gas, natural gas and hydrogen, amending Regulations (EU) No 1227/2011, (EU) 2017/1938, (EU) 2019/942 and (EU) 2022/869 and Decision (EU) 2017/684 and repealing Regulation (EC) No 715/2009 (recast) (Text with EEA relevance)

• CELEX: Regulation (EU) 2024/1789
• Articles: 92

Article 1 Subject matter and scope

This Regulation:

(a)

establishes non-discriminatory rules for access conditions to natural gas and hydrogen systems taking into account the special characteristics of national and regional markets, with a view to ensuring the proper functioning of the internal markets for natural gas and hydrogen and to contributing to the flexibility of the energy system; and

(b)

facilitates the emergence and operation of properly functioning and transparent markets for natural gas and hydrogen with a high level of security of supply and provides mechanisms by which to harmonise the network access rules for cross-border exchanges in natural gas and hydrogen.

The objectives referred to in the first paragraph shall include:

(a)

the setting of harmonised principles for tariffs, or the methodologies for underlying the calculation of tariffs, for access to the natural gas network excluding natural gas storage facilities,

(b)

the establishment of third-party access services and harmonised principles for capacity-allocation and congestion-management,

(c)

the establishment of transparency requirements, balancing rules and imbalance charges, and the facilitation of capacity trading.

This Regulation, with the exception of Article 34(5) thereof, shall apply only to the natural gas storage facilities and hydrogen storage facilities referred to in Article 33(3) or (4) or Article 37 of Directive (EU) 2024/1788.

The Member States may establish an entity or body set up in accordance with Directive (EU) 2024/1788, for the purpose of carrying out one or more functions typically attributed to the transmission system operator or hydrogen transmission network operator, which shall be subject to the requirements of this Regulation. That entity or body shall be subject to certification in accordance with Article 14 of this Regulation and shall be subject to designation pursuant to Article 71 of Directive (EU) 2024/1788.

Article 2 Definitions

1.   For the purpose of this Regulation, the following definitions apply:

(1)

‘regulatory asset base’ means the network assets of a transmission system operator, distribution system operator, hydrogen transmission network operator and hydrogen distribution network operator used for the provision of regulated network services that are taken into account when calculating network-related service revenue;

(2)

‘transmission’ means transmission as defined in Article 2, point (17), of Directive (EU) 2024/1788;

(3)

‘transport contract’ means a contract which the transmission system operator or hydrogen network operator has concluded with a network user with a view to carrying out transport services for natural gas or hydrogen;

(4)

‘capacity’ means the maximum flow, expressed in normal cubic meters per time unit or in energy unit per time unit, to which the network user is entitled in accordance with the provisions of the transport contract;

(5)

‘unused capacity’ means firm capacity which a network user has acquired under a transport contract but which that user has not nominated by the deadline specified in the contract;

(6)

‘congestion management’ means management of the capacity portfolio of the transmission system operator with a view to optimal and maximum use of the technical capacity and the timely detection of future congestion and saturation points;

(7)

‘secondary market’ means the market of the capacity traded otherwise than on the primary market;

(8)

‘nomination’ means the reporting by the network user to the transmission system operator of the actual flow that the network user wishes to inject into or withdraw from the system, prior to such an injection or withdrawal;

(9)

‘re-nomination’ means the reporting of a corrected nomination, subsequent to a nomination;

(10)

‘system integrity’ means any situation in which the pressure and the quality of the natural gas natural gas or hydrogen remain within the minimum and maximum limits, so that the transport of natural gas or hydrogen is guaranteed from a technical standpoint;

(11)

‘balancing period’ means the period within which the off-take of an amount of natural gas or hydrogen, expressed in units of energy, is to be offset by every network user by means of the injection of the same amount of natural gas or hydrogen in accordance with the network code;

(12)

‘network user’ means network user as defined in Article 2, point (60), of Directive (EU) 2024/1788;

(13)

‘interruptible services’ means services offered by the transmission system operator or, where applicable, the distribution system operator, or the hydrogen network operator in relation to interruptible capacity;

(14)

‘interruptible capacity’ means natural gas or hydrogen transmission capacity that may be interrupted by the transmission system operator or, where applicable, the distribution system operator, or the hydrogen network operator, in accordance with the conditions stipulated in the transport contract;

(15)

‘long-term services’ means services offered by the transmission system operator or, where applicable, the distribution system operator, or the hydrogen network operator with a duration of one year or more;

(16)

‘short-term services’ means services offered by the transmission system operator or, where applicable, the distribution system operator, or the or hydrogen network operator with a duration of less than one year;

(17)

‘firm capacity’ means natural gas and hydrogen transmission and distribution capacity contractually guaranteed as uninterruptible by the transmission system operator or, where applicable, the distribution system operator, or the hydrogen network operator;

(18)

‘firm services’ mean services offered by the transmission system operator or, where applicable, the distribution system operator, or the hydrogen network operator in relation to firm capacity;

(19)

‘technical capacity’ means the maximum firm capacity that can be offered to the network users, taking account of system integrity and the operational requirements of the transmission system operator or, where applicable, the distribution system operator, or the hydrogen network operator;

(20)

‘contracted capacity’ means capacity that has been allocated to a network user by means of a transport contract;

(21)

‘available capacity’ means the part of the technical capacity that is not allocated and that is still available to the system at a particular moment;

(22)

‘contractual congestion’ means a situation where the level of firm capacity demand exceeds the technical capacity;

(23)

‘primary market’ means the market of the capacity traded directly by the transmission system operator or, where applicable, the distribution system operator, or the hydrogen transmission network operator;

(24)

‘physical congestion’ means a situation where the level of demand for actual deliveries exceeds the technical capacity at a particular moment;

(25)

‘LNG facility capacity’ means capacity at an LNG terminal for the liquefaction of natural gas or the importation, offloading, ancillary services, temporary storage and re-gasification of LNG;

(26)

‘space’ means the volume of natural gas or hydrogen which a user of a storage facility is entitled to use for the storage of natural gas or hydrogen;

(27)

‘deliverability’ means the rate at which the storage facility user is entitled to withdraw natural gas or hydrogen from the natural gas storage facility or hydrogen storage facility;

(28)

‘injectability’ means the rate at which the storage facility user is entitled to inject natural gas or hydrogen into the natural gas storage facility or hydrogen storage facility;

(29)

‘storage capacity’ means any combination of space, injectability and deliverability;

(30)

‘entry-exit system’ means entry-exit system as defined in Article 2, point (57), of Directive (EU) 2024/1788;

(31)

‘balancing zone’ means balancing zone as defined in Article 2, point (58), of Directive (EU) 2024/1788;

(32)

‘virtual trading point’ means virtual trading point as defined in Article 2, point (59), of Directive (EU) 2024/1788;

(33)

‘entry point’ means entry point as defined in Article 2, point (61), of Directive (EU) 2024/1788;

(34)

‘exit point’ means exit point as defined in Article 2, point (62), of Directive (EU) 2024/1788;

(35)

‘conditional capacity’ means firm capacity that entails transparent and predefined conditions for either providing access from and to the virtual trading point or limited allocability;

(36)

‘allocability’ means the discretionary combination of any entry capacity with any exit capacity or vice versa;

(37)

‘allowed revenue’ means the sum of transmission service revenue and non-transmission service revenue for the provision of services by the transmission system operator for a specific time period within a given regulatory period which such transmission system operator is entitled to obtain under a non-price cap regime and which is set in accordance with Article 78(7), point (a), of Directive (EU) 2024/1788;

(38)

‘target revenue’ means the sum of expected transmission service revenue calculated in accordance with the principles set out in Article 17(1) and expected non-transmission service revenue for the provision of services by the transmission system operator for a specific time period within a given regulatory period under a price cap regime;

(39)

‘new infrastructure’ means an infrastructure not completed by 4 August 2003;

(40)

‘natural gas’ means natural gas as defined in Article 2, point (1), of Directive (EU) 2024/1788;

(41)

‘renewable gas’ means renewable gas as defined in Article 2, point (2), of Directive (EU) 2024/1788;

(42)

‘natural gas system’ means natural gas system as defined in Article 2, point (3), of Directive (EU) 2024/1788;

(43)

‘hydrogen system’ means hydrogen system as defined in Article 2, point (4), of Directive (EU) 2024/1788;

(44)

‘hydrogen storage facility’ means a hydrogen storage facility as defined in Article 2, point (5), of Directive (EU) 2024/1788;

(45)

‘hydrogen storage operator’ means a hydrogen storage operator as defined in Article 2, point (6), of Directive (EU) 2024/1788;

(46)

‘hydrogen terminal’ means hydrogen terminal as defined in Article 2, point (8), of Gas Directive (EU) 2024/1788;

(47)

‘hydrogen terminal operator’ means hydrogen terminal operator as defined in Article 2, point (9), of Directive (EU) 2024/1788;

(48)

‘hydrogen quality’ means hydrogen quality as defined in Article 2, point (10), of Directive (EU) 2024/1788;

(49)

‘low-carbon hydrogen’ means low-carbon hydrogen as defined in Article 2, point (11), of Directive (EU) 2024/1788;

(50)

‘low-carbon gas’ means low-carbon gas as defined in Article 2, point (12), of Directive (EU) 2024/1788;

(51)

‘transmission system operator’ means transmission system operator as defined in Article 2, point (18), of Directive (EU) 2024/1788;

(52)

‘upstream pipeline network’ means upstream pipeline network as defined in Article 2, point (16), of Directive (EU) 2024/1788;

(53)

‘distribution’ means distribution as defined in Article 2, point (19), of Directive (EU) 2024/1788;

(54)

‘distribution system operator’ means distribution system operator as defined in Article 2, point (20), of Directive (EU) 2024/1788;

(55)

‘hydrogen network’ means hydrogen network as defined in Article 2, point (21), of Directive (EU) 2024/1788;

(56)

‘hydrogen transport’ means hydrogen transport as defined in Article 2, point (22), of Directive (EU) 2024/1788;

(57)

‘hydrogen transmission network’ means hydrogen transmission network as defined in Article 2, point (23), of Directive (EU) 2024/1788;

(58)

‘hydrogen distribution network’ means hydrogen distribution network as defined in Article 2, point (24), of Directive (EU) 2024/1788;

(59)

‘hydrogen network operator’ means hydrogen network operator as defined in Article 2, point (25), of Directive (EU) 2024/1788;

(60)

‘hydrogen transmission network operator’ means hydrogen transmission network operator as defined in Article 2, point (26), of Directive (EU) 2024/1788;

(61)

‘hydrogen distribution network operator’ means hydrogen distribution network operator as defined in Article 2, point (27), of Directive (EU) 2024/1788;

(62)

‘supply’ means supply as defined in Article 2, point (28), of Directive (EU) 2024/1788;

(63)

‘natural gas storage facility’ means natural gas storage facility as defined in Article 2, point (31), of Directive (EU) 2024/1788;

(64)

‘natural gas storage system operator’ means natural gas storage system operator as defined in Article 2, point (32), of Directive (EU) 2024/1788;

(65)

‘LNG facility’ means LNG facility as defined in Article 2, point (33), of Directive (EU) 2024/1788;

(66)

‘LNG system operator’ means LNG system operator as defined in Article 2, point (34), of Directive (EU) 2024/1788;

(67)

‘system’ means system as defined in Article 2, point (35), of Directive (EU) 2024/1788;

(68)

‘ancillary services’ means ancillary services as defined in Article 2, point (36), of Directive (EU) 2024/1788;

(69)

‘interconnector’ means interconnector as defined in Article 2, point (39), of Gas Directive (EU) 2024/1788;

(70)

‘hydrogen interconnector’ means hydrogen interconnector as defined in Article 2, point (40), of Directive (EU) 2024/1788;

(71)

‘system user’ means system user as defined in Article 2, point (46), of Directive (EU) 2024/1788;

(72)

‘customer’ means customer as defined in Article 2, point (47), of Directive (EU) 2024/1788;

(73)

‘final customer’ means final customer as defined in Article 2, point (50), of Directive (EU) 2024/1788;

(74)

‘wholesale customer’ means wholesale customer as defined in Article 2, point (51), of Directive (EU) 2024/1788;

(75)

‘control’ means control as defined in Article 2, point (55), of Directive (EU) 2024/1788;

(76)

‘long-term contract’ means long-term contract as defined in Article 2, point (56), of Directive (EU) 2024/1788;

(77)

‘interconnection point’ means interconnection point as defined in Article 2, point (63), of Directive (EU) 2024/1788;

(78)

‘virtual interconnection point’ means virtual interconnection point as defined in Article 2, point (64), of Directive (EU) 2024/1788;

(79)

‘market participant’ means market participant as defined in Article 2, point (65), of Directive (EU) 2024/1788;

(80)

‘interoperability’ means interoperability as defined in Article 2, point (71), of Directive (EU) 2024/1788;

(81)

‘energy efficiency first’ means energy efficiency first as defined in Article 2, point (18), of Regulation (EU) 2018/1999 of the European Parliament and of the Council  ( 37 ) ;

(82)

‘repurposing’ means repurposing as defined in Article 2, point (18), of Regulation (EU) 2022/869;

(83)

‘vertically integrated undertaking’ means vertically integrated undertaking as defined in Article 2, point (43), of Directive (EU) 2024/1788.

2.   The definitions in paragraph 1, points (4) to (24), in relation to transmission apply by analogy in relation to storage and LNG facilities.

Article 3 General principles

Member States, regulatory authorities designated pursuant to Article 76 of Directive (EU) 2024/1788 (the ‘regulatory authorities’), operators of natural gas systems or hydrogen systems and delegated operators such as market area managers or booking platform operators shall ensure that markets for natural gas and hydrogen are operated in accordance with the following principles:

(a)

prices for natural gas and hydrogen shall be formed on the basis of demand and supply;

(b)

transmission system operators and distribution system operators, and hydrogen transmission network operators and hydrogen distribution network operators shall cooperate with each other to provide network users with the freedom to book entry and exit capacity independently; natural gas and, from 2033, hydrogen shall be transported by means of the entry-exit system, rather than contractual paths;

(c)

tariffs charged at the entry and exit points in the natural gas system and in the hydrogen system shall be structured in such a way as to contribute to market integration, enhancing security of supply and promoting the interconnection between natural gas networks and between hydrogen networks;

(d)

undertakings that are active in the same entry-exit system shall exchange natural gas and, from 2033, hydrogen at the virtual trading point; producers of renewable gas and low-carbon gas shall have equal access to the virtual trading point, irrespective of whether they are connected to the distribution system or transmission system; natural gas and, from 2033, hydrogen may be exchanged physically at entry points from or exit points to third countries;

(e)

network users shall be responsible for balancing their balancing portfolios in order to minimise the need for transmission system operators and hydrogen transmission network operators to undertake balancing actions;

(f)

balancing actions shall be performed on the basis of standardised products in accordance with the network code on balancing established pursuant to this Regulation and conducted on a trading platform or by means of balancing services in accordance with that network code;

(g)

market rules shall avoid actions which prevent price formation on the basis of demand and supply for natural gas and hydrogen;

(h)

market rules shall ensure a consumer-centred and energy efficient approach in the markets for natural gas and hydrogen;

(i)

market rules shall foster the emergence and functioning of liquid trading for natural gas and hydrogen, fostering price formation and price transparency;

(j)

market rules shall enable the decarbonisation of the natural gas systems and hydrogen systems, including by enabling the integration into the markets of natural gas and hydrogen from renewable energy sources and by providing incentives for energy savings and efficiency, demand reduction, demand flexibility and energy system integration and facilitating the achievement of the Union’s climate and energy targets;

(k)

market rules shall deliver appropriate investment incentives, in particular for long-term investments in a decarbonised and sustainable natural gas system and hydrogen system, for energy storage, energy efficiency, demand reduction and demand response to meet market needs and system integration needs, and shall facilitate fair competition and security of supply, while implementing the energy efficiency first principle in avoiding investment incentives that lead to stranded assets;

(l)

rules on network planning shall, where appropriate, target the use of hydrogen for hard-to-decarbonise sectors, taking into account greenhouse gas abatement potential, encourage measures to reduce fossil gas demand, and contribute to the prudent and rational use of natural resources and the achievement of the Union’s climate and energy targets;

(m)

barriers to cross-border natural gas and hydrogen flows, if existing, between entry-exit systems shall be removed;

(n)

market rules shall facilitate regional cooperation and integration.

Article 4 Upscaling of renewable gas and low-carbon gas in coal and carbon-intensive regions

The Commission shall support and encourage the penetration of renewable gas and low-carbon gas, in particular hydrogen and biomethane, into the Union energy system, in particular in coal and carbon-intensive regions, with the aim of increasing the share of renewable gas in particular in industrial processes, district heating and energy storage and thereby accelerate the phase out of solid fossil fuels in industrial and district heating sectors. The Commission shall also support the conversion of fossil fuels to renewable and low-carbon hydrogen and biomethane, as well as the creation of a hydrogen-ready workforce.

Article 5 Separation of regulatory asset bases

1.   Where a transmission system operator, a distribution system operator or a hydrogen network operator provides regulated services for natural gas, hydrogen or electricity, it shall comply with the requirement for unbundling of accounts as laid down in Article 75 of Directive (EU) 2024/1788 and Article 56 of Directive (EU) 2019/944 of the European Parliament and of the Council  ( 38 ) and it shall have a separate regulatory asset base for natural gas, hydrogen or electricity assets. That separate regulatory asset base shall ensure that:

(a)

service revenue obtained from the provision of specific regulated services can be used only to recover the capital and operational expenditure related to the assets included in the regulatory asset base on which the regulated services were provided;

(b)

when assets are transferred to a different regulatory asset base, their value is established, subject to an audit and approval by the regulatory authority and is such that cross-subsidies do not occur.

2.   A Member State shall not allow financial transfers between regulated services that are separate within the meaning of paragraph 1.

3.   Member States may allow hydrogen network operators to spread the recovery through network access tariffs of hydrogen network costs over time in order to ensure that future users duly contribute to initial hydrogen network development costs. Such an inter-temporal cost allocation and its underlying methodology shall be subject to approval by the regulatory authority. Member States may put in place measures, such as a State guarantee, to cover the financial risk of hydrogen network operators associated with the initial cost recovery gap arising from the application of inter-temporal cost allocation provided that such measures comply with Article 107 TFEU.

4.   By way of derogation from paragraph 2, a Member State may allow financial transfers between regulated services that are separate within the meaning of paragraph 1, provided that the regulatory authority has established that the financing of networks through network access tariffs paid by its network users only is not viable. The regulatory authority shall consider in its assessment, inter alia, the value of projected financial transfers, the resulting cross-subsidisation between users of the respective networks and the cost-efficiency of those financial transfers.

The following conditions shall apply to a financial transfer within the meaning of this paragraph:

(a)

all revenue needed for the financial transfer is collected as a dedicated charge;

(b)

the dedicated charge is collected only from exit points to final customers located within the same Member States as the beneficiary of the financial transfer;

(c)

the dedicated charge and financial transfer or the methodologies underlying their calculation are approved prior to their entry into force by the regulatory authority;

(d)

the approved dedicated charge and financial transfer and the methodologies, where methodologies are approved, are published no later than thirty days before their date of implementation;

(e)

the Commission and ACER have been notified by the Member State that it has allowed financial transfers.

5.   The regulatory authority may approve a financial transfer and dedicated charge referred to in paragraph 4, provided that:

(a)

network access tariffs are charged to users of the regulatory asset base that benefits from a financial transfer;

(b)

the sum of financial transfers and service revenue collected through network access tariffs is not larger than the allowed or target revenue;

(c)

a financial transfer is approved for a limited period in time, and that period is no longer than one third of the remaining depreciation period of the infrastructure concerned.

6.   By 5 August 2025, ACER shall issue recommendations to transmission system operators, distribution system operators, hydrogen network operators and regulatory authorities on the methodologies for setting the inter-temporal cost allocation.

ACER shall update the recommendations referred to in the first subparagraph at least every two years.

ACER may issue recommendations to transmission system operators, distribution system operators, hydrogen network operators and regulatory authorities on the methodologies for:

(a)

the determination of the value of the assets that are transferred to another regulatory asset base and the destination of any profits and losses that may occur as a result;

(b)

the calculation of the size and maximum duration of the financial transfer and dedicated charge;

(c)

the criteria to allocate contributions to the dedicated charge among final customers connected to the regulatory asset base.

Article 6 Third-party access services concerning transmission system operators

1.   Transmission system operators shall:

(a)

offer capacity and services on a non-discriminatory basis to all network users;

(b)

provide both firm and interruptible capacity; the price of interruptible capacity shall reflect the probability of interruption;

(c)

offer to network users both long and short-term capacity.

As regards the first subparagraph, point (a), where a transmission system operator offers the same service to different customers, it shall do so under equivalent contractual terms and conditions, either using harmonised transport contracts or a common network code approved by the regulatory authority in accordance with the procedure laid down in Article 78 or 79 of Directive (EU) 2024/1788.

2.   By 5 August 2025, the Commission shall:

(a)

carry out an evaluation of the impact on the natural gas system of a tariff regime whereby no tariffs will be charged for access to transmission systems at interconnection points between Member States, or at interconnection points with third countries whose systems connect two or more Member States; and

(b)

submit a report to the European Parliament and to the Council.

That report may, where appropriate, be accompanied by legislative proposals to address the obstacles identified in the evaluation.

3.   Transport contracts signed with non-standard start dates or with a shorter duration than a standard annual transport contract shall not result in arbitrarily higher or lower tariffs that do not reflect the market value of the service, in accordance with the principles laid down in Article 17(1).

4.   Where two or more interconnection points connect the same two adjacent entry-exit systems, the adjacent transmission system operators concerned shall offer the available capacities at the interconnection points at one virtual interconnection point. Any contracted capacity at the interconnection points, regardless of the date of its conclusion, shall be transferred to the virtual interconnection point.

A virtual interconnection point shall be established provided that the following conditions are met:

(a)

the total technical capacity at the virtual interconnection points is equal to or higher than the sum of the technical capacities at each of the interconnection points contributing to the virtual interconnection points;

(b)

the virtual interconnection point facilitates the economic and efficient use of the system including the rules laid down in Articles 10 and 11.

5.   Where appropriate, third-party access services may be granted subject to appropriate guarantees from network users with respect to the creditworthiness of such users. Such guarantees shall not constitute undue market-entry barriers and shall be non-discriminatory, transparent and proportionate.

6.   Transmission system operators shall, if necessary for the purpose of carrying out their functions including in relation to cross-border transmission, have access to the network of other transmission system operators.

7.   Paragraphs 1 to 6 shall be without prejudice to the possibility for Member States to take proportionate measures to temporarily restrict natural gas supplies from the Russian Federation and Belarus, for a fixed term, which may be renewed if justified, by limiting up-front bidding for capacity by any single network user at entry points from the Russian Federation or Belarus, where that is necessary to protect their essential security interests and those of the Union, provided that such measures:

(a)

do not unduly disrupt the proper functioning of the internal market for natural gas and cross-border flows of natural gas between Member States, and do not undermine the security of supply of the Union or of a Member State;

(b)

respect the principle of energy solidarity;

(c)

are taken in accordance with the rights and obligations of the Union and of the Member States with respect to third countries.

Taking into account the need to ensure the security of supply of the Union, measures taken by Member States pursuant to the first subparagraph may aim to diversify natural gas supplies with a view to phasing out dependence on Russian natural gas, where it can be demonstrated that such measures are necessary to protect their essential security interests and those of the Union.

Before deciding on a measure as referred to in the first subparagraph, the Member State concerned shall consult the Commission and, in so far as they are likely to be affected by the measure concerned, other Member States, the Energy Community Contracting Parties, third countries that are Contracting Parties to the Agreement on the European Economic Area, and the United Kingdom of Great Britain and Northern Ireland. The Member State concerned shall take the utmost account of the situation in those Member States and third countries and any concerns raised in that respect by those Member States, third countries or the Commission.

Article 7 Third-party access services concerning hydrogen network operators

1.   Hydrogen network operators shall offer their services on a non-discriminatory basis to all network users, subject to equivalent contractual terms and conditions for the same service. Hydrogen network operators shall publish contractual terms and tariffs charged for network access and, if applicable, balancing charges, on their website.

2.   The maximum capacity of a hydrogen network shall be made available to market participants, taking into account system integrity and efficient and safe network operation.

3.   The maximum duration for capacity contracts shall be 20 years for infrastructure completed before 1 January 2028 and 15 years for infrastructure completed on or after that date. Regulatory authorities shall have the right to impose shorter maximum durations if necessary to ensure hydrogen market functioning, to safeguard competition and to ensure future cross-border integration. When adopting a decision on the imposition of a shorter maximum duration, the regulatory authorities shall take into account, inter alia, commitment from network users to secure network financing, negative implications on planning and refinancing possibilities.

4.   Hydrogen transmission network operators shall implement and publish non-discriminatory and transparent congestion-management procedures, which also facilitate cross-border exchanges in hydrogen on a non-discriminatory basis.

5.   Hydrogen network operators shall regularly assess market demand for new investments, taking into account security of supply and the efficiency of the final hydrogen use.

6.   From 1 January 2033, hydrogen networks shall be organised as entry-exit systems.

7.   Member States may decide not to apply paragraph 6 of this Article to hydrogen networks that benefit from a derogation pursuant to Article 52 Directive (EU) 2024/1788 and are not connected to another hydrogen network.

8.   From 1 January 2033, or where a Member State decides to apply regulated third-party access to hydrogen networks in accordance with Article 35 of Directive (EU) 2024/1788 before 1 January 2033, Article 17 of this Regulation shall apply to tariffs for access to hydrogen networks and the obligations on transmission system operators set out in Article 17(1), (2), (4) and (5) of this Regulation shall apply to hydrogen network operators. Articles 18 and 19 of this Regulation shall not apply to hydrogen networks. Those Articles shall apply only to natural gas networks.

Regulatory authorities shall consult regulatory authorities of directly connected Member States and relevant stakeholders before taking a decision on the methodology for setting hydrogen network access tariffs for the entry and exit points at cross-border interconnection points between those directly connected Member States, including for any virtual interconnection points. Regulatory authorities shall also submit the envisaged tariff methodology to ACER. By way of derogation from Article 17, the regulatory authorities may decide to charge no hydrogen network access tariffs or, when capacity is allocated via auctions, to set the reserve prices to zero.

When deciding on the methodology for setting hydrogen network access tariffs at an interconnection point between Member States, the regulatory authorities concerned shall apply the tariff principles referred to in Article 17(1), (2), (4) and (5) and shall take into account the outcome of the consultations referred to in the second subparagraph of this paragraph, in particular of the consultations of the regulatory authorities of directly connected Member States, and the impact of the chosen network access tariffs on cross-border trade and market functioning in the directly connected Member States.

The regulatory authorities of directly connected Member States may request ACER to provide a factual opinion on the methodology for setting the hydrogen network access tariffs or reserve prices for the entry and exit points at cross-border interconnection points between those Member States, in accordance with Article 6(5) of Regulation (EU) 2019/942. ACER shall inform the Commission accordingly, where relevant, in accordance with Article 6(6) of Regulation (EU) 2019/942. When providing a factual opinion, ACER shall carry out its assessment with due regard to the tariff principles referred to in Article 17(1) and (2) of this Regulation.

Further details required to implement this paragraph, in particular the procedure for cross-border consultation or requesting an opinion of ACER, shall be set in a network code established pursuant to Article 72(1).

9.   From 1 January 2033, hydrogen transmission network operators shall comply with the requirements on transmission system operators pursuant to Articles 5, 10 and 13 when offering their services, and shall publish tariffs for each network point on an online platform operated by the European Network of Network Operators for Hydrogen (ENNOH). Until a network code on capacity allocation for hydrogen transmission networks has been adopted pursuant to Article 72(1), point (d) and has entered into force, such publication may occur via links to the publication of tariffs on websites of hydrogen transmission network operators.

Article 8 Third-party access services concerning natural gas storage facilities, hydrogen terminals, LNG facilities and hydrogen storage facilities

1.   LNG system operators, hydrogen terminal operators, hydrogen storage operators and natural gas storage system operators shall:

(a)

offer services on a non-discriminatory basis to all network users that accommodate market demand; in particular, where an LNG system operator, hydrogen terminal operator, hydrogen storage operator or natural gas storage system operator offers the same service to different customers, it shall do so under equivalent contractual terms and conditions;

(b)

offer services that are compatible with the use of the interconnected natural gas and hydrogen transport systems and facilitate access through cooperation with the transmission system operator or hydrogen network operator; and

(c)

make relevant information public, in particular data on the use and availability of services, in a time-frame compatible with reasonable commercial needs of users of LNG facilities, natural gas storage facilities, hydrogen terminals or hydrogen storage facilities, subject to the monitoring of such publication by the regulatory authority.

2.   Each natural gas storage system operator and hydrogen storage operator shall:

(a)

provide both firm and interruptible third-party access services; the price of interruptible capacity shall reflect the probability of interruption;

(b)

offer to storage facility users both long and short-term services;

(c)

offer to storage facility users both bundled and unbundled services of storage capacity.

3.   Each LNG system operator shall offer to LNG facility users both bundled and unbundled services within the LNG facility depending on the needs expressed by LNG facility users.

4.   LNG and natural gas storage facility contracts and hydrogen storage facility and hydrogen terminal contracts shall not result in arbitrarily higher tariffs where they are signed:

(a)

outside a gas year with non-standard start dates; or

(b)

with a shorter duration than a standard contract on an annual basis.

5.   Where appropriate, third-party access services may be granted subject to appropriate guarantees from network users with respect to the creditworthiness of such users. Such guarantees shall not constitute undue market-entry barriers and shall be non-discriminatory, transparent and proportionate.

6.   Contractual limits on the required minimum size of LNG facility or hydrogen terminal capacity and natural gas or hydrogen storage capacity shall be justified on the basis of technical constraints and shall allow smaller storage users to obtain access to storage services.

7.   Paragraphs 1 to 6 shall be without prejudice to the possibility for Member States to take proportionate measures to temporarily restrict LNG supplies from the Russian Federation and Belarus, for a fixed term, which may be renewed if justified, by limiting up-front bidding by any single network user or provision for LNG facility capacity to any single network user for deliveries from the Russian Federation or Belarus, where that is necessary to protect their essential security interests and those of the Union, provided that such measures:

(a)

do not unduly disrupt the proper functioning of the internal market for natural gas, and cross-border flows of natural gas between Member States, and do not undermine the security of supply of the Union or of a Member State;

(b)

respect the principle of energy solidarity;

(c)

are taken in accordance with the rights and obligations of the Union and of the Member States with respect to third countries.

Taking into account the need to ensure the security of supply of the Union, measures taken by Member States pursuant to the first subparagraph may aim to diversify LNG supplies with a view to phasing out dependence on Russian natural gas, where it can be demonstrated that such measures are necessary to protect their essential security interests and those of the Union.

Before deciding on a measure as referred to in the first subparagraph, the Member State concerned shall consult the Commission and, in so far as they are likely to be affected by the measure concerned, other Member States, the Energy Community Contracting Parties, third countries that are Contracting Parties to the Agreement on the European Economic Area, and the United Kingdom of Great Britain and Northern Ireland. The Member State concerned shall take the utmost account of the situation in those Member States and third countries, and any concerns raised in that respect by those Member States, third countries or the Commission.

Article 9 Market-demand assessment for renewable gas and low-carbon gas by LNG system operators and natural gas storage system operators

LNG system operators and natural gas storage system operators shall, at least every two years, assess market demand for new investments allowing the use of renewable gas and low-carbon gas, including hydrogen compounds, such as liquid ammonia and liquid organic hydrogen carriers, in the facilities. Those operators shall inform relevant regulatory authorities on the outcome of the market demand assessment. When planning new investments, LNG system operators and natural gas storage system operators shall assess market demand in view of facilitating the usage of renewable gas and low-carbon gas in their facilities and take into account security of supply. LNG system operators and natural gas storage system operators shall make publicly available any plans regarding new investments allowing the usage of renewable gas and low-carbon gas in their facilities.

Article 10 Principles of capacity-allocation mechanisms and congestion-management procedures concerning transmission system operators

1.   The maximum capacity at all relevant points referred to in Article 33(3) shall be made available to market participants, taking into account system integrity and efficient network operation.

2.   The transmission system operator shall implement and publish non-discriminatory and transparent capacity-allocation mechanisms, which shall:

(a)

provide appropriate economic signals for the efficient and maximum use of technical capacity, facilitate investments in new infrastructure and in alternative demand-side solutions not requiring new infrastructure investments and facilitate cross-border exchanges in natural gas;

(b)

be compatible with the market mechanisms including spot markets and trading hubs, while being flexible and capable of adapting to evolving market circumstances; and

(c)

be compatible with the network access systems of the Member States.

3.   The transmission system operator shall implement and publish non-discriminatory and transparent congestion-management procedures which facilitate cross-border exchanges in natural gas on a non-discriminatory basis and which shall be based on the following principles:

(a)

in the event of contractual congestion, the transmission system operator shall offer unused capacity on the primary market at least on a day-ahead and interruptible basis; and

(b)

network users may re-sell or sublet their unused contracted capacity on the secondary market.

As regards the first subparagraph, point (a), a Member State may require notification or information of the transmission system operator by network users.

4.   Transmission system operators shall regularly assess market demand for new investments taking into account the joint scenario as developed for the ten-year network development plan pursuant to Article 55 of Directive (EU) 2024/1788 as well as security of supply.

Article 11 Principles of capacity-allocation mechanisms and congestion-management procedures concerning natural gas storage facilities, hydrogen terminals, hydrogen storage facilities and LNG facilities

1.   The maximum capacity of a natural gas storage facility, LNG facility, hydrogen storage facility or hydrogen terminal shall be made available to market participants, taking into account system integrity and operation.

2.   LNG system operators, hydrogen storage operators, hydrogen terminal operators and natural gas storage system operators shall implement and publish non-discriminatory and transparent capacity-allocation mechanisms which shall:

(a)

provide appropriate economic signals for the efficient and maximum use of capacity and facilitate investments in new infrastructure;

(b)

be compatible with the market mechanisms including spot markets and trading hubs, while being flexible and capable of adapting to evolving market circumstances; and

(c)

be compatible with the connected network access systems.

3.   Contracts for LNG terminals, hydrogen terminals, hydrogen storage facilities and natural gas storage facilities shall include measures to prevent capacity-hoarding, by taking into account the following principles which are to apply in the case of contractual congestion:

(a)

the system operator shall offer unused capacity on the primary market without delay, and, for natural gas storage facilities, they shall offer such capacity at least on a day-ahead and interruptible basis;

(b)

users may resell their contracted capacity on the secondary market;

(c)

by 5 February 2026, LNG system operators, hydrogen terminal operators, hydrogen storage operators and natural gas storage system operators, individually or jointly with other such operators, shall ensure that a transparent and non-discriminatory booking platform for users of LNG facilities, hydrogen terminals, hydrogen storage facilities and natural gas storage facilities is available to allow such users to resell their contracted capacity on the secondary market pursuant to point (b).

Article 12 Trading of capacity rights

Each transmission system operator, natural gas storage system operator, LNG system operator, hydrogen transmission network operator, hydrogen terminal operator and hydrogen storage operator shall take reasonable steps to allow capacity rights to be freely tradable and to facilitate such trade in a transparent and non-discriminatory manner. Every such operator shall develop harmonised contracts and procedures for transport, LNG facilities, hydrogen terminals, natural gas storage facilities and hydrogen storage facilities on the primary market to facilitate secondary trade of capacity and shall recognise the transfer of primary capacity rights where notified by system users.

The harmonised contracts and procedures shall be notified to the regulatory authorities.

Article 13 Balancing rules and imbalance charges

1.   Balancing rules shall be designed in a fair, non-discriminatory and transparent manner and shall be based on objective criteria. Balancing rules shall reflect genuine system needs taking into account the resources available to the transmission system operator. Balancing rules shall be market-based.

2.   In order to enable network users to take timely corrective action, the transmission system operator shall provide sufficient, timely and reliable on-line based information on the balancing status of network users.

The information provided shall reflect the level of information available to the transmission system operator and the settlement period for which imbalance charges are calculated.

No charge shall be levied for the provision of information pursuant to this paragraph.

3.   Imbalance charges shall be cost-reflective to the extent possible, whilst providing appropriate incentives on network users to balance their input and off-take of natural gas. They shall avoid cross-subsidisation between network users and shall not hamper the entry of new entrants on the market.

Any calculation methodology for imbalance charges as well as the final values shall be made public by the regulatory authorities or the transmission system operator, as appropriate.

4.   Member States shall ensure that transmission system operators endeavour to harmonise balancing regimes and streamline structures and levels of balancing charges in order to facilitate natural gas trade carried out at the virtual trading point.

Article 14 Certification of transmission system operators and hydrogen transmission network operators

1.   The Commission shall examine any notification of a decision on the certification of a transmission system operator or a hydrogen transmission network operator as laid down in Article 71(6) of Directive (EU) 2024/1788 as soon as it is received. Within 50 working days of the date of receipt of such a notification, the Commission shall issue its opinion to the relevant regulatory authority with regard to its compatibility with Article 71(2) or Article 72 as well as with Article 60 of Directive (EU) 2024/1788 for transmission system operators or Article 68 of that Directive for hydrogen transmission network operators, as applicable.

When preparing its opinion referred to in the first subparagraph, the Commission may request ACER to provide its opinion on the regulatory authority’s decision. In such a case, the 50-working day period referred to in the first subparagraph shall be extended by a further 50 working days.

In the absence of a Commission opinion within the periods referred to in the first and second subparagraphs, the Commission shall be considered not to have any objections against the regulatory authority’s decision.

2.   Within a period of 50 working days of receipt of a Commission opinion pursuant to paragraph 1, the regulatory authority shall adopt its final decision regarding the certification of the transmission system operator or hydrogen transmission network operator, taking the utmost account of that opinion. The regulatory authority’s decision and the Commission’s opinion shall be published together.

3.   At any time during the procedure regulatory authorities or the Commission may request from a transmission system operator, a hydrogen transmission network operator or an undertaking performing any of the functions of production or supply any information relevant to the fulfilment of their tasks under this Article.

4.   Regulatory authorities and the Commission shall preserve the confidentiality of commercially sensitive information.

5.   The Commission is empowered to adopt delegated acts in accordance with Article 80 to supplement this Regulation by providing guidelines setting out the details of the procedure to be followed for the application of paragraphs 1 and 2 of this Article.

6.   Where the Commission has received notification of the certification of a transmission system operator under Article 60(9) of Directive (EU) 2024/1788, the Commission shall take a decision relating to certification. The regulatory authority shall comply with the Commission decision.

Article 15 Certification of natural gas storage system operators

1.   Member States shall ensure that each natural gas storage system operator, including any natural gas storage system operator controlled by a transmission system operator, is certified in accordance with the procedure laid down in this Article, either by the regulatory authority or by a competent authority designated by the Member State concerned pursuant to Article 3(2) of Regulation (EU) 2017/1938 (in either case referred to as the ‘certifying authority’).

This Article also applies to natural gas storage system operators controlled by transmission system operators which are certified pursuant to Directive 2009/73/EC or (EU) 2024/1788.

2.   By 1 February 2023 or within 150 working days of the date of receipt of a notification pursuant to paragraph 9, the certifying authority shall issue a draft certification decision in respect of natural gas storage system operators that operate underground natural gas storage facilities with a capacity of over 3,5 TWh where, regardless of the number of natural gas storage system operators, total natural gas storage facilities were filled on 31 March 2021 and on 31 March 2022 at a level which, on average, was less than 30 % of their maximum capacity.

With respect to natural gas storage system operators as referred to in the first subparagraph, the certifying authority shall make its best efforts to issue a draft certification decision by 1 November 2022.

With respect to natural gas storage system operators other than those referred to in the first subparagraph, the certifying authority shall issue a draft certification decision by 2 January 2024 or within 18 months of the date of receipt of a notification pursuant to paragraph 8 or 9.

3.   When considering the risk to the security of energy supply in the Union, the certifying authority shall take into account any security of natural gas supply risk at Union, national or regional level as well as any mitigation of such risk, resulting, inter alia, from:

(a)

ownership, supply or other commercial relationships that could negatively affect the incentives and the ability of the natural gas storage system operator to fill the underground natural gas storage facility;

(b)

the rights and obligations of the Union with respect to a third country arising under international law, including any agreement concluded with one or more third countries to which the Union is a party and which addresses the issue of the security of energy supply;

(c)

the rights and obligations of the Member States concerned with respect to a third country arising under agreements concluded by the Member States concerned with one or more third countries, in so far as those agreements comply with Union law; or

(d)

any other specific facts and circumstances of the case.

4.   If the certifying authority concludes that a person who directly or indirectly controls, or exercises any right over, the natural gas storage system operator could endanger the security of energy supply or the essential security interests of the Union or of any Member State, the certifying authority shall refuse the certification. Alternatively, the certifying authority may issue a certification decision subject to conditions to ensure the sufficient mitigation of the risks which could negatively influence the filling of the underground natural gas storage facilities, provided that the practicability of the conditions can be fully ensured by effective implementation and monitoring. Such conditions may include, in particular, a requirement that the natural gas storage system owner or natural gas storage system operator transfer management of the natural gas storage system.

5.   Where the certifying authority concludes that the natural gas supply risks cannot be mitigated by conditions pursuant to paragraph 4, including by requiring the natural gas storage system owner or natural gas storage system operator to transfer management of the natural gas storage system, and therefore refuses the certification, it shall:

(a)

require the natural gas storage system owner or natural gas storage system operator or any person that it considers could endanger the security of energy supply or the essential security interests of the Union or of any Member State to dispose of the shareholding or rights they have over the natural gas storage system ownership or natural gas storage system operator ownership, and set a time limit for such disposal;

(b)

order, where appropriate, interim measures, to ensure that such a person is not able to exercise any control or right over that natural gas storage system owner or natural gas storage system operator until the disposal of the shareholding or rights; and

(c)

provide for appropriate compensatory measures in accordance with national law.

6.   The certifying authority shall notify the Commission of its draft certification decision without delay, together with all relevant information.

The Commission shall issue an opinion on the draft certification decision to the certifying authority within 25 working days of such notification. The certifying authority shall take the utmost account of the Commission’s opinion.

7.   The certifying authority shall issue the certification decision within 25 working days of receipt of the Commission’s opinion.

8.   Before a newly built underground natural gas storage facility is put into operation, the natural gas storage system operator shall be certified in accordance with paragraphs 1 to 7. The natural gas storage system operator shall notify the certifying authority of its intention to put the natural gas storage facility into operation.

9.   Natural gas storage system operators shall notify the relevant certifying authority of any planned transaction which would require a reassessment of their compliance with the certification requirements set out in paragraphs 1 to 4.

10.   Certifying authorities shall continuously monitor natural gas storage system operators as regards compliance with the certification requirements set out in paragraphs 1 to 4. They shall reopen a certification procedure to reassess compliance in any of the following circumstances:

(a)

upon receipt of a notification by the natural gas storage system operator pursuant to paragraph 8 or 9;

(b)

on their own initiative where they have knowledge that a planned change to rights or to influence over a natural gas storage system operator could lead to non-compliance with the requirements of paragraphs 1, 2 and 3;

(c)

upon the reasoned request of the Commission.

11.   Member States shall take all necessary measures to ensure the continuous operation of the underground natural gas storage facilities on their respective territories. Those underground natural gas storage facilities may cease operations only where technical and safety requirements are not met or where the certifying authority concludes, after conducting an assessment and having taken into account the opinion of the European Network of Transmission System Operators for Gas (the ‘ENTSO for Gas’), that such a cessation would not weaken the security of natural gas supply at Union or national level.

Appropriate compensatory measures shall be taken, where appropriate, if cessation of operations is not allowed.

12.   The Commission may issue guidance relating to the application of this Article.

13.   This Article shall not apply to parts of LNG facilities that are used for storage.

Article 16 Cooperation of transmission system operators

1.   Transmission system operators shall cooperate with other transmission system and infrastructure operators in coordinating the maintenance of their respective networks in order to minimise any disruption of transmission services to network users and transmission system operators in other areas.

2.   Transmission system operators shall cooperate with each other as well as with other infrastructure operators in order to maximise technical capacity within the entry-exit system and minimise energy consumption to operate the natural gas system to the extent possible.

Article 17 Tariffs for access to networks

1.   Tariffs, or the methodologies used to calculate them, applied by the transmission system operators and approved by the regulatory authorities pursuant to Article 78(7) of Directive (EU) 2024/1788, as well as tariffs published pursuant to Article 31(1) of that Directive, shall be transparent, take into account the need for system integrity and its improvement and reflect the actual costs incurred, insofar as such costs correspond to those of an efficient and structurally comparable network operator and are transparent, whilst including an appropriate return on investments. Tariffs, or the methodologies used to calculate them, shall be applied in a non-discriminatory manner.

Tariffs may also be determined through market-based arrangements, such as auctions, provided that such arrangements and the revenue arising therefrom are approved by the regulatory authority.

Tariffs, or the methodologies used to calculate them, shall facilitate efficient natural gas trade and competition, while at the same time avoiding cross-subsidies between network users and providing incentives for investment and maintaining or creating interoperability for transmission networks.

Tariffs for network users shall be non-discriminatory and shall be set separately for every entry point into or exit point out of the transmission system. Cost-allocation mechanisms and rate setting methodology regarding entry points and exit points shall be approved by the regulatory authorities. Regulatory authorities shall ensure that network tariffs shall not be calculated on the basis of contract paths.

2.   Tariffs for network access shall neither restrict market liquidity nor distort trade across borders of different transmission systems. Where, notwithstanding Article 78(7) of Directive (EU) 2024/1788, differences in tariff structures would hamper trade across transmission systems, transmission system operators shall, in close cooperation with the relevant national authorities, actively pursue convergence of tariff structures and charging principles.

3.   Until 31 December 2025, the regulatory authority may apply a discount of up to 100 % to capacity-based transmission and distribution tariffs at entry points from, and exit points to, underground natural gas storage facilities and at entry points from LNG facilities, unless and to the extent that such a storage facility which is connected to more than one transmission or distribution network is used to compete with an interconnection point.

From 1 January 2026, the regulatory authority may apply a discount of up to 100 % to capacity-based transmission and distribution tariffs at entry points from, and exit points to, underground natural gas storage facilities and at entry points from LNG facilities for the purpose of increasing security of supply. The regulatory authority shall re-examine that tariff discount and its contribution to the security of supply during every regulatory period, in the framework of the periodic consultation carried out pursuant to the network code adopted pursuant to Article 71(2), first subparagraph, point (d).

4.   Regulatory authorities may merge adjacent entry-exit systems with a view to enabling full or partial regional integration where tariffs may be abolished at the interconnection points between the entry-exit systems concerned. Following the public consultations conducted by the regulatory authorities or by the transmission system operators, the regulatory authorities may approve a common tariff and an effective compensation mechanism between transmission system operators for the redistribution of costs arising from the abolition of interconnection points.

5.   Member States with more than one interconnected entry-exit system, or more than one network operator within one entry-exit system, may implement a uniform network tariff with the aim of creating a level playing field for network users, provided that a network plan has been approved and a compensation mechanism between the network operators is implemented.

Article 18 Tariff discounts for renewable gas and low-carbon gas

1.   When setting tariffs, a discount for renewable gas and low-carbon gas shall be applied to:

(a)

entry points from renewable gas and low-carbon gas production facilities;

(b)

capacity-based transmission tariffs at entry points from and exit points to natural gas storage facilities, unless such a storage facility is connected to more than one transmission or distribution network and is used to compete with an interconnection point.

The discount pursuant to the first subparagraph, point (a), shall be set at 100 % with regard to the relevant capacity-based tariffs for the purpose of scaling-up the injection of renewable gas and a discount of 75 % to low-carbon gas.

The discount pursuant to the first subparagraph, point (b), shall be set at 100 % in the Member States where the renewable gas or low-carbon gas was first injected into the system.

2.   Details on the discounts granted in accordance with paragraph 1 of this Article may be laid down in the network code on tariff structures as referred to in Article 71(2), first subparagraph, point (d).

3.   By 5 August 2029 and every five years thereafter, the Commission shall re-examine the level of the discounts laid down in paragraphs 1 and 4. The Commission shall issue a report providing an overview of the implementation of the discounts and assess whether the level of those discounts is still adequate in view of the latest market developments. The Commission shall be empowered to adopt delegated acts in accordance with Article 80 to amend this Regulation by changing the level of the discounts laid down in paragraphs 1 and 4 of this Article.

4.   From 5 August 2025, network users shall obtain a discount of 100 % on the capacity-based tariff from the transmission system operator at interconnection points between Member States, for renewable gas and 75 % for low-carbon gas, after providing the transmission system operator concerned with a proof of sustainability, on the basis of a valid sustainability certificate obtained for renewable gas pursuant to Articles 29 and 30 of Directive (EU) 2018/2001 and registered in the Union database referred to in Article 31a of that Directive, and for low-carbon gas on the basis of a valid certificate obtained pursuant to Article 9 of Directive (EU) 2024/1788.

With regard to the discounts referred to in the first subparagraph:

(a)

transmission system operators shall be required to provide the discount only for the shortest possible route in terms of border crossings between the location of where the specific proof of sustainability declaration, on the basis of a certificate referred to in the first subparagraph, was first recorded in the Union database and where it has been cancelled as considered consumed, provided that any potential auction premium is not covered by the discount;

(b)

transmission system operators shall provide the relevant regulatory authority with information on actual and expected volumes of renewable gas and low-carbon gas and the effect of applying the tariff discount on their revenue and regulatory authorities shall monitor and assess the impact of the discount on tariff stability;

(c)

once the revenue of a transmission system operator from those specific tariffs is reduced by 10 % as a result of applying the discount, the affected and all neighbouring transmission system operators shall negotiate an inter-transmission-system-operator compensation mechanism;

(d)

further details required to implement the discount for renewable gas and low-carbon gas, such as the calculation of the eligible capacity for which the discount applies and the required processes, shall be set in a network code established pursuant to Article 71.

The transmission system operators concerned shall agree on an inter-transmission-system-operator compensation mechanism within three years of their revenue from specific tariffs being reduced by 10 % as referred to in the second subparagraph, point (c), of this paragraph. Where, within that period, no agreement is reached, the relevant regulatory authorities shall decide jointly on an appropriate inter-transmission-system-operator compensation mechanism within two further years. In the absence of an agreement among the regulatory authorities, Article 6 of Regulation (EU) 2019/942 shall apply. Where the regulatory authorities are not able to reach an agreement within two years, or upon their joint request, ACER shall adopt an individual decision, in accordance with Article 6(10) of Regulation (EU) 2019/942.

5.   By way of derogation from paragraphs 1 and 4 of this Article, regulatory authorities may decide not to apply discounts or to lay down discounts lower than those laid down in paragraphs 1 and 4 of this Article, provided that such a derogation is in line with the general tariff principles as set out in Article 17 and in particular the principle of cost-reflectiveness, where one of the following criteria is met:

(a)

the derogation is necessary for the efficient operation of the transmission system, to ensure a stable financial framework for existing investments or to avoid undue cross-subsidies, distortion to cross-border trade or an ineffective inter-transmission-system-operator compensation mechanism;

(b)

the application of discounts laid down in paragraphs 1 and 4 is not necessary due to the degree of advancement of the roll-out of renewable gas and low-carbon gas in the Member State concerned or the existence of alternative support mechanisms for scaling-up the use of renewable gas or low-carbon gas.

Article 19 Revenue of transmission system operators

1.   From 5 August 2025, the relevant regulatory authority shall ensure the transparency of the methodologies, parameters and values used to determine allowed or target revenue of transmission system operators. The regulatory authority shall publish the information referred to in Annex I, or shall require the publication by the relevant transmission system operator subject to the protection of data considered by the relevant regulatory authority to be commercially sensitive. That information shall be made available in a freely accessible, downloadable and read-only format and, to the extent possible, in one or more commonly understood languages.

2.   The costs of the transmission system operator shall be subject to an efficiency comparison between transmission system operators. ACER shall carry out that efficiency comparison. By 5 August 2027 and every four years thereafter, ACER shall publish a study comparing the efficiency of transmission system operators’ costs, subject to the protection of data considered by ACER to be commercially sensitive. The relevant regulatory authorities and the transmission system operators shall provide ACER with all the data necessary for that comparison. When periodically setting the allowed or target revenue of transmission system operators, the relevant regulatory authorities shall take into account such comparison and national circumstances.

3.   The relevant regulatory authorities shall assess the long-term evolution of transmission tariffs on the basis of the expected changes to their allowed or target revenue and in natural gas demand within the relevant regulatory period, and, where available until 2050. To conduct that assessment, the regulatory authority shall include the information about the strategy described in the integrated national energy and climate plan of the Member State concerned and the scenarios underpinning the ten-year network development plan as developed in accordance with Article 55 of Directive (EU) 2024/1788.

Article 20 Firm capacity for renewable gas and low-carbon gas to the transmission system

1.   Transmission system operators shall ensure firm capacity for the access of production facilities of renewable gas and low-carbon gas connected to their grid. To that end, transmission system operators shall, in cooperation with the distribution system operators, develop procedures and arrangements, including investments, to ensure reverse flow from the distribution network to the transmission network. Major investments shall be reflected in the ten-year network development plan pursuant to Article 55(2), point (a), of Directive (EU) 2024/1788.

2.   Paragraph 1 shall be without prejudice to the possibility for transmission system operators to develop alternatives to reverse-flow investments, such as smart grid solutions or connection to other network operators including the direct connection of production facilities of renewable gas and low-carbon gas to the transmission network. Firm capacity access may be limited to offering capacities subject to operational limitations, in order to ensure infrastructure safety and economic efficiency. The regulatory authority shall be responsible for reviewing and approving the transmission system operators’ conditions for conditional capacity and shall ensure that any limitations in firm capacity or operational limitations are introduced by transmission system operators on the basis of transparent and non-discriminatory procedures and do not create undue barriers to market entry. Where the production facility bears the costs related to ensuring firm capacity, no limitation shall apply.

Article 21 Cross-border coordination with regard to gas quality in the natural gas system

1.   Transmission system operators shall cooperate to avoid restrictions to cross-border flows due to gas quality differences at interconnection points between Member States. When so cooperating, transmission system operators shall take into account the characteristics of installations of final natural gas customers.

This Article shall not apply to hydrogen blends where the hydrogen content blended into the natural gas system exceeds 2 % by volume.

2.   Member States shall ensure that diverging technical specifications, including gas quality parameters such as oxygen content and hydrogen blending in the natural gas system, are not used to restrict cross-border natural gas flows. In addition, Member States shall ensure that hydrogen blends in the natural gas system are aligned with the technical specifications acceptable to customers.

3.   Where a restriction to cross-border flows due to gas quality differences cannot be avoided by the transmission system operators concerned in their standard operations, they shall inform the regulatory authorities concerned without delay. The information shall include a description and the reasons justifying any measures already taken by the transmission system operators.

4.   The regulatory authorities concerned shall jointly agree, within six months of receipt of the information referred to in paragraph 3, whether to recognise the restriction.

5.   As regards restrictions to cross-border flows caused by differences in hydrogen blending in the natural gas system and that are recognised pursuant to paragraph 4, transmission system operators shall accept natural gas flows with a hydrogen content at interconnection points between Member States in the natural gas system subject to paragraphs 6 to 13, and after completion of the procedure laid down therein.

6.   Where the regulatory authorities concerned recognise the restriction pursuant to paragraph 4, they shall request the transmission system operators concerned to perform, within 12 months of the recognition of the restriction as referred to in that paragraph, the following actions in sequence:

(a)

to cooperate and develop technically feasible options, without changing the gas quality specifications, which may include flow commitments and natural gas treatment, in order to remove the recognised restriction taking into account information provided by final customers directly connected to the natural gas system of the transmission system operator concerned or any other stakeholder that could be affected by that procedure;

(b)

jointly to carry out a cost-benefit analysis on the technically feasible options to define economically efficient solutions which shall specify the breakdown of costs and benefits among the categories of affected parties;

(c)

to produce an estimate of the implementation time for each potential option;

(d)

to conduct a public consultation, in particular of final customers affected that are connected to the natural gas system, on identified feasible solutions and take into consideration the results of that consultation;

(e)

to submit a joint proposal, on the basis of the cost-benefit analysis and results of the public consultation, for a solution removing the recognised restriction, including the timeframe for its implementation, to their regulatory authorities concerned for approval and to the other competent national authorities of each Member State concerned for information.

7.   Where the transmission system operators concerned do not reach an agreement to submit a joint proposal pursuant to paragraph 6, point (e), each transmission system operator shall inform its regulatory authority without delay.

8.   The regulatory authorities concerned shall take a joint coordinated decision to remove the recognised restriction, taking into account the cost-benefit analysis carried out by the transmission system operators concerned and the results of the public consultation conducted pursuant to paragraph 6, point (d), of this Article within six months of receipt of the information referred to in paragraph 7 of this Article in accordance with Article 6(10) of Regulation (EU) 2019/942.

9.   By way of derogation from paragraph 8 of this Article, for restrictions to cross-border flows caused by differences in hydrogen blending in the natural gas system, the regulatory authorities concerned may jointly declare that no further action is to be pursued to remove such restrictions. The joint coordinated decision shall be taken within six months of receipt of the information referred to in paragraph 7 of this Article in accordance with Article 6(10) of Regulation (EU) 2019/942 and shall take into account the cost-benefit analysis and the results of the public consultation conducted pursuant to paragraph 6, point (d), of this Article. The regulatory authorities concerned shall review a decision to maintain the recognised restriction pursuant to this paragraph every four years.

10.   The joint coordinated decision of the regulatory authorities concerned referred to in paragraph 8 shall include a decision on the allocation of the investment costs to be borne by each transmission system operator for implementing the agreed solution, as well as their inclusion in the allowed or target revenue of transmission system operators, taking into account the economic, social and environmental costs and benefits of the solution in the Member States concerned and its consequences for tariffs.

11.   ACER may issue recommendations to the regulatory authorities on the details of such cost allocation decisions as referred to in paragraph 10.

12.   Where the regulatory authorities concerned cannot reach an agreement as referred to in paragraph 4 of this Article, ACER shall decide on the restriction in accordance with Article 6(10) of Regulation (EU) 2019/942. Where ACER recognises the restriction, it shall request the transmission system operators concerned to perform, within 12 months, the actions referred to in paragraph 6 of this Article in sequence.

13.   Where the regulatory authorities concerned cannot take a joint coordinated decision as referred to in paragraphs 8 and 10 of this Article, ACER shall decide on the solution to remove the recognised restriction and on the allocation of the investment costs to be borne by each transmission system operator for implementing the agreed solution or stating that no further action is to be pursued pursuant to paragraph 9 of this Article, in accordance with Article 6(10) of Regulation (EU) 2019/942. A decision to maintain the recognised restriction pursuant to this paragraph shall be reviewed every four years by ACER.

14.   Further details required to implement this Article, including details on the cost-benefit analysis, shall be laid down in a network code established pursuant to Article 71(2).

Article 22 Presumption of conformity of practices with harmonised standards for natural gas

Practices which are in conformity with harmonised standards, or parts thereof, the references of which have been published in the Official Journal of the European Union shall be presumed to be in conformity with the requirements laid down in implementing acts adopted pursuant to Article 71(2), first subparagraph, point (a).

Article 23 Common specifications for biomethane

1.   The Commission may adopt implementing acts establishing common specifications for facilitating the cost-effective integration of large volumes of biomethane in the existing natural gas system, including at cross-border interconnection points, or may establish those specifications in a network code pursuant to Article 71(2), first subparagraph, point (a), where:

(a)

those requirements are not covered by harmonised standards, or parts thereof, the references of which have been published in the Official Journal of the European Union;

(b)

the Commission has requested, pursuant to Article 10(1) of Regulation (EU) No 1025/2012, one or more European standardisation organisation to draft a harmonised standard for those requirements and at least one of the following conditions has been fulfilled:

(i)

the request of the Commission has not been accepted by any of the European standardisation organisations;

(ii)

the Commission observes undue delays in the adoption of the requested harmonised standards;

(iii)

a European standardisation organisation has delivered a standard that does not entirely correspond with the request of the Commission; or

(c)

the Commission has decided in accordance with the procedure referred to in Article 11(5) of Regulation (EU) No 1025/2012 to maintain with restriction or to withdraw the references to the harmonised standards, or parts thereof, by which those requirements are covered.

The implementing acts referred to in the first subparagraph of this paragraph shall be adopted in accordance with the examination procedure referred to in Article 81(3).

2.   In the early preparation of the draft implementing act establishing the common specifications referred to in paragraph 1, the Commission shall gather the views of relevant bodies or expert groups established under relevant sectorial Union law, and shall duly consult all relevant stakeholders. On the basis of that consultation, the Commission shall prepare the draft implementing act.

3.   Practices which are in conformity with common specifications, or parts thereof, shall be presumed to be in conformity with the requirements laid down in the implementing acts adopted pursuant to Article 71(2), first subparagraph, point (a), to the extent that those requirements are covered by such common specifications or parts thereof.

4.   Where a harmonised standard is adopted by a European standardisation organisation and proposed to the Commission for the purpose of publishing its reference in the Official Journal of the European Union, the Commission shall assess the harmonised standard in accordance with Regulation (EU) No 1025/2012. When the reference of a harmonised standard is published in the Official Journal of the European Union, the Commission shall repeal implementing acts referred to in paragraph 1 of this Article, or parts thereof which cover the same requirements referred to in paragraph 1 of this Article.

5.   In setting the common specifications pursuant to this Article, the Commission shall take the utmost account of the safety requirements necessary for the safe operation of the natural gas system, in particular of the safe operation of the natural gas storage facilities across the Union.

Article 24 European network of transmission system operators for gas

All transmission system operators shall cooperate at Union level through the ENTSO for Gas, in order to promote the completion and proper functioning of the internal market for natural gas and cross-border trade and to ensure the optimal management, coordinated operation and sound technical evolution of the natural gas transmission network.

Article 25 Organisation of the ENTSO for Gas

1.   The ENTSO for Gas shall, on their own initiative or upon a reasoned request of the Commission or ACER, publish and submit to the Commission and to ACER any draft amendment to the statutes, list of members or rules of procedure, including the rules of procedure on the consultation of other stakeholders, of the ENTSO for Gas.

2.   Within four months of receipt of the documents referred to in paragraph 1, ACER shall, after formally consulting the organisations representing all stakeholders, in particular the system users including customers, provide an opinion to the Commission on the draft amendment to the statutes, list of members and rules of procedure of the ENTSO for Gas.

3.   The Commission shall issue an opinion on the draft amendment to the statutes, list of members and rules of procedure of the ENTSO for Gas, taking into account ACER’s opinion referred to in paragraph 2, within three months of the date of receipt of that opinion.

4.   Within three months of receipt of the Commission’s favourable opinion, the ENTSO for Gas shall adopt and publish the revised statutes, list of members and rules of procedure of the ENTSO for Gas.

Article 26 Tasks of the ENTSO for Gas

1.   The ENTSO for Gas shall elaborate network codes in the areas referred to in Article 71(1) and (2) upon a request addressed to it by the Commission in accordance with Article 71(9).

The network code referred to in Article 71(2), first subparagraph, point (d), shall be developed jointly with the ENNOH.

2.   The ENTSO for Gas may elaborate network codes in the areas set out in Article 71(1) and (2) with a view to achieving the objectives set out in Article 24, where those network codes do not relate to areas covered by a request addressed to it by the Commission. Those network codes shall be submitted to ACER for an opinion. That opinion shall be duly taken into account by the ENTSO for Gas.

3.   The ENTSO for Gas shall adopt:

(a)

common network operation tools to ensure the coordination of network operation in normal and emergency conditions, including a common incidents classification scale, and research plans;

(b)

a non-binding Union-wide ten-year network development plan for natural gas referred to in Article 32 (the ‘Union-wide network development plan for natural gas’), including a European supply adequacy outlook, every two years;

(c)

recommendations relating to the coordination of technical cooperation between Union and third-country transmission system operators;

(d)

recommendations to transmission system operators on their technical cooperation with distribution system operators and hydrogen network operators;

(e)

an annual work programme;

(f)

an annual report;

(g)

annual summer and winter supply outlooks;

(h)

a gas quality monitoring report by 1 January 2025 and every two years thereafter, including developments of gas quality parameters, developments of the level and volume of hydrogen blended into the natural gas system, forecasts for the expected development of gas quality parameters and of the volume of hydrogen blended into the natural gas system, the impact of blending hydrogen on cross-border flows as well as information on cases related to differences in gas quality specifications or in specifications of blending levels and how such cases were settled, with a view to meeting the quality requirements of different end-use applications;

(i)

an annual report including the quantity of renewable gas and low-carbon gas injected into the natural gas network.

The gas quality monitoring report referred to in the first subparagraph, point (h) shall also cover the development for the areas listed in that point, as far as relevant for the distribution network, on the basis of information provided by the European entity for distribution system operators (the ‘EU DSO entity’) established pursuant to Article 52(1) of Regulation (EU) 2019/943 of the European Parliament and of the Council  ( 39 ) .

4.   The European supply adequacy outlook referred to in paragraph 3, point (b), shall cover the overall adequacy of the natural gas system to supply current and planned demands for natural gas for the next five-year period as well as for the period between five and 10 years from the date of that outlook. The European supply adequacy outlook shall build on national supply outlooks prepared by each individual transmission system operator. The European supply adequacy outlook shall specifically provide for monitoring of progress on the annual production of sustainable biomethane.

Where both the European supply adequacy outlook and the final updated integrated national energy and climate plans show that the annual production is not sufficiently progressing or that the natural gas consumption is not sufficiently decreasing in view of the available potential, the Commission may issue recommendations to the Member States, if necessary to achieve the objectives of the Energy Union, pursuant to Article 34 of Regulation (EU) 2018/1999.

The Union-wide network development plan for natural gas shall include the modelling of the integrated network, including hydrogen networks, scenario development, a European supply adequacy outlook and an assessment of the resilience of the system. That plan shall promote the energy efficiency first principle and energy system integration.

5.   The annual work programme referred to in paragraph 3, point (e), shall contain a list and description of the network codes to be prepared, a plan on the coordination of the operation of the network, and a list of research and development activities, to be realised in the course of that year, and an indicative calendar.

6.   The network codes shall be developed for cross-border network issues and market integration issues and shall be without prejudice to the Member States’ right to establish national network codes which do not affect cross-border trade.

7.   The ENTSO for Gas shall monitor and analyse the implementation of the network codes and the guidelines adopted by the Commission in accordance with Article 71(13) or Article 74, and their effect on the harmonisation of applicable rules aimed at facilitating market integration. The ENTSO for Gas shall report its findings to ACER and shall include the results of the analysis in the annual report referred to in paragraph 3, point (f), of this Article.

8.   The ENTSO for Gas shall make available all information required by ACER to fulfil its tasks under Article 27(1).

9.   ACER shall review national ten-year network development plans to assess their consistency with the Union-wide network development plan for natural gas. If ACER identifies inconsistencies between a national ten-year network development plan and the Union-wide network development plan for natural gas, it shall recommend amending the national ten-year network development plan or the Union-wide network development plan for natural gas as appropriate. If such national ten-year network development plan is elaborated in accordance with Article 55 of Directive (EU) 2024/1788, ACER shall recommend that the relevant regulatory authority amend the national ten-year network development plan in accordance with Article 55(5) of that Directive and inform the Commission thereof.

10.   Upon request of the Commission, the ENTSO for Gas shall give its views to the Commission on the adoption of the guidelines as laid down in Article 74.

11.   The ENTSO for Gas shall cooperate with the European Network of Transmission System Operators for Electricity (the ‘ENTSO for Electricity’) and with the ENNOH.

Article 27 ACER’s monitoring of the ENTSO for Gas

1.   ACER shall monitor the execution of the tasks of the ENTSO for Gas referred to in Article 26(1), (2) and (3) and report its findings to the Commission.

ACER shall monitor the implementation by the ENTSO for Gas of network codes elaborated pursuant to Article 26(2) and network codes which have been developed in accordance with Article 71(1) to (12) but which have not been adopted by the Commission pursuant to Article 71(13). Where the ENTSO for Gas has failed to implement such network codes, ACER shall request the ENTSO for Gas to provide a duly reasoned explanation as to why it has failed to do so. ACER shall inform the Commission of that explanation and provide its opinion thereon.

ACER shall monitor and analyse the implementation of the network codes and the guidelines adopted by the Commission as laid down in Articles 70, 71, 73 and 74, and their effect on the harmonisation of applicable rules aimed at facilitating market and energy system integration as well as on non-discrimination, effective competition and the proper functioning of the market, and report to the Commission.

2.   The ENTSO for Gas shall submit the draft Union-wide network development plan for natural gas, the draft annual work programme, including the information regarding the consultation process, and the other documents referred to in Article 26(3), to ACER for its opinion.

Within two months of the date of receipt, ACER shall provide a duly reasoned opinion as well as recommendations to the ENTSO for Gas and to the Commission where it considers that the draft annual work programme or the draft Union-wide network development plan for natural gas submitted by the ENTSO for Gas does not contribute to non-discrimination, effective competition, the proper functioning of the market or a sufficient level of cross-border interconnection open to third-party access. The ENTSO for Gas shall duly take into account ACER’s opinion and recommendations.

Article 28 Regulatory authorities

When carrying out their duties and exercising their powers under this Regulation, the regulatory authorities shall ensure compliance with this Regulation, the network codes and the guidelines adopted pursuant to Articles 70 to 74.

Where appropriate, they shall cooperate with each other, with the Commission and ACER pursuant to Chapter V of Directive (EU) 2024/1788.

Article 29 Consultations by the ENTSO for Gas

1.   While preparing the network codes, the draft Union-wide network development plan for natural gas and the annual work programme referred to in Article 26(1), (2) and (3), the ENTSO for Gas shall conduct an extensive public consultation process, at an early stage and in an open and transparent manner, involving all relevant market participants, and, in particular, the organisations representing all stakeholders, in accordance with the rules of procedure referred to in Article 25(1). That consultation shall also involve regulatory authorities and other national authorities, supply and production undertakings, network users including customers, distribution system operators, including relevant industry associations, technical bodies and stakeholder platforms. The ENTSO for Gas shall publish drafts of the network codes, the Union-wide network development plan for natural gas and the annual work programme for comments by the stakeholders and provide sufficient time for them to participate in the consultation process effectively. The aim of that consultation is to identify the views and proposals of the relevant stakeholders during the decision-making process.

2.   All documents and minutes of meetings related to the consultations referred to in paragraph 1 shall be made public.

3.   Before adopting the annual work programme and the network codes referred to in Article 26(1), (2) and (3), the ENTSO for Gas shall indicate how the observations received during the consultation have been taken into consideration. It shall provide reasons where observations have not been taken into account.

Article 30 Costs of the ENTSO for Gas

The costs related to the activities of the ENTSO for Gas referred to in Articles 24, 25, 26, 70 and 71 of this Regulation, and in Article 11 of Regulation (EU) 2022/869, shall be borne by the transmission system operators and shall be taken into account in the calculation of tariffs. Regulatory authorities shall approve those costs provided that they are reasonable and appropriate.

Article 31 Regional cooperation of transmission system operators

1.   Transmission system operators shall establish regional cooperation within the ENTSO for Gas to contribute to the tasks referred to in Article 26(1), (2) and (3).

2.   Transmission system operators shall promote operational arrangements in order to ensure the optimum management of the network and shall promote the development of energy exchanges, the coordinated allocation of cross-border capacity through non-discriminatory market-based solutions, paying due attention to the specific merits of implicit auctions for short-term allocations and the integration of balancing mechanisms.

3.   For the purposes of achieving the objectives set out in paragraphs 1 and 2 of this Article, the Commission is empowered to adopt delegated acts in accordance with Article 80 to supplement this Regulation by establishing the definition of the geographical area covered by each regional cooperation structure, taking into account existing regional cooperation structures. Each Member State shall be allowed to promote cooperation in more than one geographical area.

For the purpose of drawing up the delegated acts referred to in the first subparagraph, the Commission shall consult ACER and the ENTSO for Gas.

Article 32 Union-wide network development plan for natural gas

The ENTSO for Gas shall adopt and publish the Union-wide network development plan for natural gas every two years. The Union-wide network development plan for natural gas shall include the modelling of the integrated network, scenario development, a European supply adequacy outlook and an assessment of the resilience of the system, including infrastructure to be decommissioned.

The Union-wide network development plan for natural gas shall, in particular:

(a)

build on national investment plans and Chapter IV of Regulation (EU) 2022/869;

(b)

regarding cross-border interconnections, also build on the reasonable needs of different network users and integrate long-term commitments from investors as referred to in Article 55(7) of Directive (EU) 2024/1788; and

(c)

identify investment gaps, in particular with respect to cross-border capacities.

With regard to the second paragraph, point (c), a review of barriers to the increase of cross-border capacity of the network arising from different approval procedures or practices may be annexed to the Union-wide network development plan for natural gas.

Article 33 Transparency requirements concerning transmission system operators

1.   The transmission system operator shall make public detailed information regarding the capacity and services it offers and the relevant conditions applied, together with the technical information necessary for network users to obtain effective network access.

2.   In order to ensure transparent, objective and non-discriminatory tariffs and facilitate efficient utilisation of the natural gas network, transmission system operators or relevant regulatory authorities shall publish reasonably and sufficiently detailed information on tariff derivation, methodology and structure.

3.   For the services provided, each transmission system operator shall make public information on technical, contracted and available capacities on a numerical basis for all relevant points including entry and exit points on a regular and rolling basis and in a user-friendly and standardised manner in accordance with the guidelines laid down in Annex I.

4.   The relevant points of a transmission system on which the information is to be made public shall be approved by the competent authorities after consultation with network users.

5.   The transmission system operator shall always disclose the information required by this Regulation in a meaningful, quantifiably clear, easily accessible and non-discriminatory manner.

6.   The transmission system operator shall make public ex ante and ex post supply and demand information, on the basis of nominations and allocations, forecasts and realised flows in and out of the system. The regulatory authority shall ensure that all such information is made public. The level of detail of the information that is made public shall reflect the information available to the transmission system operator.

The transmission system operator shall make public measures taken as well as costs incurred and revenue generated to balance the system.

The market participants concerned shall provide the transmission system operator with the data referred to in this Article.

7.   The transmission system operators shall make public detailed information regarding the quality of natural gas transported in their networks, which might affect network users, pursuant to Articles 16 and 17 of Regulation (EU) 2015/703.

Article 34 Transparency requirements concerning natural gas storage facilities, hydrogen storage facilities, LNG facilities and hydrogen terminals

1.   LNG system operators, natural gas storage system operators, hydrogen terminal operators and hydrogen storage operators shall make public detailed information regarding all services they offer and the relevant conditions applied, together with the technical information necessary for users of LNG facility, natural gas storage facility, hydrogen storage facility and hydrogen terminal to obtain effective access to the LNG facilities, natural gas storage facilities, hydrogen storage facilities and hydrogen terminals. Regulatory authorities may request those operators to make public any additional relevant information for system users.

2.   LNG system operators shall provide user-friendly instruments for calculating tariffs for the services available.

3.   For the services provided, LNG system operators, natural gas storage system operators, hydrogen terminal operators and hydrogen storage operators shall make public information on contracted and available LNG facility, natural gas storage facility, hydrogen storage facility and hydrogen terminal capacities on a numerical basis on a regular and rolling basis and in a user-friendly standardised manner.

4.   LNG system operators, natural gas storage system operators, hydrogen terminal operators and hydrogen storage operators shall disclose the information required by this Regulation in a meaningful, quantifiably clear, easily accessible and non-discriminatory manner.

5.   LNG system operators, natural gas storage system operators, hydrogen terminal operators and hydrogen storage operators shall make public the amount of natural gas or hydrogen in each LNG facility, natural gas storage facility, hydrogen storage facility and hydrogen terminal, or group of storage facilities if that corresponds to the way in which the access is offered to system users, inflows and outflows, and the available LNG facility, natural gas storage facility, hydrogen storage facility and hydrogen terminal capacities, including for those facilities exempted from third-party access. That information shall also be communicated to the transmission system operator or to the hydrogen network operator for hydrogen storage and terminals, which shall make it public on an aggregated level per system or subsystem defined by the relevant points. The information shall be updated at least daily.

Where a natural gas or hydrogen storage facility user is the only user of a natural gas storage facility or hydrogen storage facility, the natural gas or hydrogen storage system user may submit to the regulatory authority a reasoned request for confidential treatment of the data referred to in the first subparagraph. Where the regulatory authority comes to the conclusion that such a request is justified, taking into account, in particular, the need to balance the interest of legitimate protection of business secrets, the disclosure of which would negatively affect the overall commercial strategy of the storage user, with the objective of creating competitive internal markets for natural gas and hydrogen, it may allow the natural gas storage system operator or hydrogen storage operator not to make public the data referred to in the first subparagraph, for a duration of up to one year.

The second subparagraph shall apply without prejudice to the obligations referred to in the first subparagraph, unless the aggregated data are identical to the individual natural gas or hydrogen storage system data for which the regulatory authority has approved non-publication.

6.   In order to ensure transparent, objective and non-discriminatory tariffs and facilitate efficient utilisation of the infrastructures, the LNG system operators, natural gas storage system operators, hydrogen terminal operators and hydrogen storage operators or relevant regulatory authorities shall make public sufficiently detailed information on tariff derivation, the methodologies and the structure of tariffs for infrastructure under regulated third-party access. LNG facilities that have been granted an exemption, pursuant to Article 78 of this Regulation, Article 22 of Directive 2003/55/EC and Article 36 of Directive 2009/73/EC, and natural gas storage system operators under the negotiated third-party access regime shall make public tariffs for infrastructure in order to ensure a sufficient degree of transparency.

LNG system operators and natural gas storage system operators shall each publish in a transparent, continuous and user-friendly manner the information required pursuant to this Article on a single European platform that shall be maintained by those operators.

Article 35 Record keeping by system operators

Transmission system operators, natural gas storage system operators and LNG system operators shall keep at the disposal of the national authorities, including the regulatory authorities and the national competition authorities, and the Commission, all information referred to in Articles 33 and 34 and in point 3 of Annex I for a period of five years.

Article 36 Firm capacity for renewable gas and low-carbon gas to the distribution system

1.   Distribution system operators shall ensure firm capacity for the access of the production facilities of renewable gas and low-carbon gas connected to their grid. To that end, distribution system operators shall in cooperation among themselves and with the transmission system operators, develop procedures and arrangements, including investments, to ensure reverse flow from the distribution network to the transmission network. Major investments in the natural gas transmission network resulting from the need for additional capacities in the distribution network shall be reflected in the ten-year network development plan in accordance with Article 55(2), point (a), of Directive (EU) 2024/1788.

2.   Paragraph 1 shall be without prejudice to the possibility for distribution system operators to develop alternatives to reverse-flow investments, such as smart grid solutions or connection to other network operators. Firm capacity access may be limited to offering capacities subject to operational limitations, in order to ensure infrastructure safety and economic efficiency. The regulatory authority shall ensure that any limitations in firm capacity or operational limitations are introduced by distribution system operators on the basis of transparent and non-discriminatory procedures and do not create undue barriers to market entry. Where the production facility bears the costs related to ensuring firm capacity, no limitation shall apply.

Article 37 Cooperation between distribution system operators and transmission system operators

Distribution system operators shall cooperate with other distribution system operators and transmission system operators to coordinate the maintenance, system development, new connections, decommissioning and the operation of the system to ensure system integrity, with a view to maximising capacity and minimising the use of fuel gas.

Article 38 Transparency requirements concerning distribution system operators

Where distribution system operators are responsible for gas quality management in their networks, they shall make public detailed information regarding the quality of natural gas transported in their networks, which might affect network users, pursuant to Articles 16 and 17 of Regulation (EU) 2015/703.

Article 39 European entity for distribution system operators

Distribution system operators operating a natural gas system shall and hydrogen distribution network operators operating a hydrogen network may cooperate at Union level through the EU DSO entity, in order to promote the completion and proper functioning of the internal market for natural gas, cooperate in the development of the hydrogen market and promote optimal management and a coordinated operation of distribution and transmission systems.

Registered members may participate in the EU DSO entity directly or be represented by a national association designated by a Member State or by a Union-level association.

The costs related to the activities of the EU DSO entity shall be borne by the distribution system operators and hydrogen distribution network operators that are registered members and shall be taken into account in the calculation of tariffs. Regulatory authorities shall approve costs provided that they are reasonable and proportionate and provide reasons where they are not approved.

Article 40 Changes to the principal rules and procedures for the EU DSO entity

1.   The principal rules and procedures for the EU DSO entity pursuant to Article 54 of Regulation (EU) 2019/943 shall also apply to distribution system operators operating a natural gas system and hydrogen distribution network operators.

2.   The Strategic Advisory Group referred to in Article 54(2), point (f), of Regulation (EU) 2019/943 shall also consist of representatives of associations representing European distribution system operators operating a natural gas system or European hydrogen distribution network operators.

3.   By 5 August 2025, the EU DSO entity shall submit to the Commission and to ACER draft updated statutes, including a code of conduct, a list of registered members, draft updated rules of procedure, including rules of procedure on the consultation with the ENTSO for Electricity, the ENTSO for Gas and other stakeholders, and draft updated financing rules.

The draft updated rules of procedure of the EU DSO entity shall ensure fair and balanced representation of all participating distribution system operators, including those owning or operating natural gas systems, and of hydrogen distribution network operators.

4.   Within four months of receipt of the documents submitted pursuant to paragraph 3, ACER shall provide the Commission with its opinion, after consulting organisations representing all stakeholders, in particular distribution system users, including customers.

5.   Within three months of receipt of ACER’s opinion, the Commission shall issue an opinion on the documents submitted pursuant to paragraph 3, taking into account ACER’s opinion referred to in paragraph 4.

6.   Within three months of receipt of the Commission’s positive opinion, the distribution system operators shall adopt and publish the EU DSO’s updated statutes, rules of procedure and financing rules.

7.   The documents referred to in paragraph 3 shall be submitted to the Commission and to ACER where there are changes thereto or upon the reasoned request of either of them. The Commission and ACER may issue an opinion in accordance with the process laid down in paragraphs 3, 4 and 5.

Article 41 Additional tasks of the EU DSO entity

1.   The EU DSO entity shall exercise the tasks listed in Article 55(1), points (a) to (e), of Regulation (EU) 2019/943 and undertake the activities listed in Article 55(2), points (c), (d) and (e), of that Regulation also as regards distribution systems for natural gas or hydrogen distribution networks.

2.   In addition to the tasks listed in Article 55(1) of Regulation (EU) 2019/943, the EU DSO entity shall participate in the development of network codes which are relevant to the operation and planning of distribution grids and the coordinated operation of the transmission networks and distribution networks pursuant to this Regulation and contribute to mitigating fugitive methane emissions from the natural gas system.

When participating in the development of new network codes pursuant to Article 71 of this Regulation, the EU DSO entity shall comply with the consultation requirements as laid down in Article 56 of Regulation (EU) 2019/943.

3.   In addition to the activities listed in Article 55(2) of Regulation (EU) 2019/943, the EU DSO entity shall:

(a)

cooperate with the ENTSO for Gas and the ENNOH on the monitoring of the implementation of the network codes and guidelines adopted pursuant to this Regulation which are relevant to the operation and planning of distribution grids for natural gas and hydrogen and the coordinated operation of the transmission networks and distribution networks and the hydrogen transmission networks and distribution networks;

(b)

cooperate with the ENTSO for Gas and the ENNOH and adopt best practices on the coordinated operation and planning of transmission and distribution systems and hydrogen transmission and distribution networks including issues such as the exchange of data between operators and the coordination of distributed energy resources;

(c)

work on identifying best practices for the implementation of the results of the assessments pursuant to Article 23(1b) of Directive (EU) 2018/2001 and Article 25 of Directive (EU) 2023/1791 and for the cooperation between operators of electricity distribution systems, of natural gas distribution systems, of hydrogen distribution networks and of district heating and cooling systems including for the purpose of the assessment pursuant to Article 24(8) of Directive (EU) 2018/2001, including recommendations for the appropriate placement of electrolysers with a view to ensuring the use of waste heat in district heating network.

4.   The EU DSO entity shall provide input to the ENTSO for Gas for its reporting on gas quality, with regard to the distribution systems where distribution system operators are responsible for gas quality management, as referred to in Article 26(3).

5.   The EU DSO entity shall provide input to the ENNOH for the hydrogen quality monitoring report to be adopted pursuant to Article 59(1), point (j), of this Regulation with regard to the hydrogen distribution networks where hydrogen distribution network operators are responsible for hydrogen quality management pursuant to Article 50 of Directive (EU) 2024/1788.

Article 42 Mechanism for demand aggregation and the joint purchasing of natural gas

The Commission shall establish a mechanism for voluntary demand aggregation and the joint purchasing of natural gas pursuant to Articles 43 to 49.

Article 43 Contract with a service provider

1.   By way of derogation from Article 176 of Regulation (EU, Euratom) 2018/1046, the Commission may contract the necessary services of an entity or entities established in the Union through the relevant procurement procedures under Regulation (EU, Euratom) 2018/1046, in order to implement the objective laid down in Article 42 of this Regulation.

2.   Where the Commission selects a service provider, it shall do so on the basis of criteria that safeguard the integrity of the internal market, that ensure competition and security of supply, and that comply with Article 44. The Commission shall specify the requirements applicable to the service provider in the relevant tender specifications.

Article 44 Criteria for selecting the service provider

1.   The service provider shall be selected by the Commission among entities complying with the following eligibility criteria:

(a)

the service provider shall be established and have its operational seat in the territory of a Member State;

(b)

the service provider and its subcontractors shall not be:

(i)

subject to Union restrictive measures adopted pursuant to Article 29 TEU or Article 215 TFEU, consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze; or

(ii)

directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies subject to such Union restrictive measures.

2.   Without prejudice to other due diligence obligations, contractual obligations between the Commission and the service providers shall be put in place to ensure that the service provider when carrying out its tasks under Article 45 does not make any funds or economic resources available, directly or indirectly, to or for the benefit of natural or legal persons, entities or bodies:

(a)

subject to Union restrictive measures adopted pursuant to Article 29 TEU or Article 215 TFEU, consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze; or

(b)

directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies subject to such Union restrictive measures.

3.   The service provider shall not be part of a vertically integrated undertaking, except for an entity unbundled in accordance with Chapter IX of Directive (EU) 2024/1788.

Article 45 Tasks of the service provider

1.   The service provider shall organise the tasks of demand aggregation and the joint purchasing of natural gas. In particular, but not exclusively, the service provider may implement the following elements:

(a)

assessment and aggregation of demand of natural gas undertakings and undertakings consuming natural gas;

(b)

collection of offers from natural gas suppliers or producers in order to match such offers with the aggregated demand;

(c)

allocation of supply offers to participants in demand aggregation, taking into account a proportionate distribution between smaller and larger participants depending on the volumes of demand submitted;

(d)

provide any related ancillary services, including services to facilitate the conclusion of contracts for the purchase of natural gas.

Article 46 Participation in the mechanism for demand aggregation and the joint purchasing of natural gas

1.   Participation in the mechanism for demand aggregation and the joint purchasing of natural gas shall be open to natural gas undertakings and undertakings consuming natural gas established in the Union on a non-discriminatory basis. Such undertakings shall be precluded from participating as suppliers, producers and purchasers, if they are:

(a)

subject to Union restrictive measures adopted pursuant to Article 29 TEU or Article 215 TFEU, consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze; or

(b)

directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies subject to such Union restrictive measures.

2.   Contractual obligations shall be put in place to ensure that no funds or economic resources are made available, directly or indirectly, to or for the benefit of natural or legal persons, entities or bodies, which are:

(a)

subject to Union restrictive measures adopted pursuant to Article 29 TEU or Article 215 TFEU, consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze; or

(b)

directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies subject to such Union restrictive measures.

3.   Natural gas undertakings and undertakings consuming natural gas established in the Energy Community Contracting Parties may participate in the mechanism for demand aggregation and the joint purchasing of natural gas provided that the necessary measures or arrangements are in place to allow their participation in the mechanism for demand aggregation and the joint purchasing of natural gas pursuant to this Section.

4.   Natural gas undertakings and undertakings consuming natural gas participating in demand aggregation may, on a transparent basis, coordinate elements of the conditions of the purchase contract or use joint purchase contracts in order to achieve better conditions with their suppliers, provided that they comply with Union law, including Union competition law, in particular Articles 101 and 102 TFEU.

5.   Participants in the mechanism for demand aggregation and the joint purchasing of natural gas shall report to the Commission or the relevant service provider, as appropriate, the following elements of the concluded contracts:

(a)

volume;

(b)

counterparts;

(c)

duration.

6.   Participants in the mechanism for demand aggregation and the joint purchasing of natural gas may report to the Commission or the relevant service provider, as appropriate, if matching and tendering did not result in the conclusion of a supply contract.

7.   The recipient of the information reported under paragraphs 5 and 6 shall ensure that access to confidential information is strictly limited to the service provider and to Commission services for whom it is absolutely necessary to have the information available. Such information shall be handled with due confidentiality.

Article 47 Temporary limitation of participation in the mechanism for demand aggregation and the joint purchasing of natural gas

1.   In order to protect the essential security interests of the Union and of its Member States, and in the interest of safeguarding security of supply, natural gas supplies originating in, and LNG supplies from LNG facilities located in, the Russian Federation or Belarus shall not be offered through the mechanism for demand aggregation and the joint purchasing of natural gas until 31 December 2025.

2.   The exclusion referred to in paragraph 1 shall apply to all LNG supplies originating in any LNG facility located in the Russian Federation or Belarus and natural gas supplies entering the Member States or Energy Community Contracting Parties through the following entry points:

(a)

Greifswald;

(b)

Lubmin II;

(c)

Imatra;

(d)

Narva;

(e)

Värska;

(f)

Luhamaa;

(g)

Šakiai;

(h)

Kotlovka;

(i)

Kondratki;

(j)

Wysokoje;

(k)

Tieterowka;

(l)

Mozyr;

(m)

Kobryń;

(n)

Sudzha (RU)/(UA);

(o)

Belgorod (RU)/(UA);

(p)

Valuyki (RU)/(UA);

(q)

Serebryanka (RU)/(UA);

(r)

Pisarevka (RU)/(UA);

(s)

Sokhranovka (RU)/(UA);

(t)

Prokhorovka (RU)/(UA);

(u)

Platovo (RU)/(UA);

(v)

Strandzha 2 (BG)/Malkoclar (TR).

Article 48 Possibility to limit the participation in the mechanism for demand aggregation and the joint purchasing of natural gas

1.   From 1 January 2026, the Commission may decide, by means of an implementing act, to temporarily exclude natural gas originating in, or LNG supplies from LNG facilities located in, the Russian Federation or Belarus from the participation in the mechanism for demand aggregation and the joint purchasing of natural gas, where that is necessary to protect the essential security interests or the security of supply of the Union or of a Member State, provided that such measures:

(a)

do not unduly disrupt the proper functioning of the internal market for natural gas and cross-border flows of natural gas between Member States, and do not undermine the security of supply of the Union or of a Member State;

(b)

respect the principle of energy solidarity;

(c)

are taken in accordance with the rights and obligations of the Union or of the Member States with respect to third countries.

2.   Sufficiently in advance of the first tendering round in 2026, the Commission shall assess whether all the conditions laid down in paragraph 1 are met with the view to deciding on any measures referred to therein. Any such decision shall be valid for a period of up to one year and may be renewed if justified.

The Commission shall continuously assess whether the conditions laid down in paragraph 1 are met and shall keep the European Parliament and the Council duly informed about its assessments, including the assessment referred to in the first subparagraph of this paragraph.

3.   Taking into account the need to ensure the security of supply of the Union, the measures taken by the Commission pursuant to paragraph 1 may be aimed at diversifying natural gas or LNG supplies with a view to reducing dependence on Russian natural gas, where it can be demonstrated that such measures are necessary to protect the essential security interests of the Union and of the Member States.

4.   Decisions referred to in paragraph 1 shall contain a list of:

(a)

all entry points from the Russian Federation or Belarus or other third countries serving as transit countries which shall not be used to deliver natural gas supplies subject to demand aggregation and joint purchasing; and

(b)

all LNG facilities located in the Russian Federation or Belarus.

Natural gas suppliers or producers participating in the mechanism for demand aggregation and joint purchasing of natural gas shall provide assurance on the compliance with Article 47 and the decisions adopted pursuant to paragraph 1 of this Article.

5.   The Commission shall take appropriate measures to ensure the effective application of this Article and of Article 47 and may require from natural gas suppliers or producers participating in the mechanism for demand aggregation and the joint purchasing of natural gas all the necessary information to assist it in that task, including the submission to the purchasers of the relevant shipping documents when delivering the natural gas supplies, where technically feasible.

Article 49 Steering Board

1.   In order to facilitate coordination and information exchange in relation to the mechanism for demand aggregation and the joint purchasing of natural gas, the Commission shall be assisted by a Steering Board.

2.   The Steering Board shall be composed of representatives of Member States and one representative of the Commission. The participation of Member States shall be voluntary and depends in particular upon the agenda of the Steering Board’s meetings. The representatives of the Energy Community Contracting Parties may participate in the Steering Board upon invitation of the Commission on all matters of mutual concern. The Commission shall chair the Steering Board.

Article 50 Guarantees

Member States, in respect of participants established in their territories, or other relevant stakeholders may provide liquidity support, including guarantees, to participants in the mechanism for demand aggregation and the joint purchasing of natural gas, in accordance with State aid rules where applicable, in particular where the competent authority of the relevant Member State has declared one of the crisis levels referred to in Article 11(1) of Regulation (EU) 2017/1938.