Adoption of network codes and guidelines
1. The Commission may, subject to the empowerments laid down in Articles 71 to 74, adopt delegated or implementing acts. Such acts may either be adopted as network codes on the basis of text proposals developed by the ENTSO for Gas or the ENNOH, or, where so provided for in the priority list established pursuant to Article 71(3), by the EU DSO entity, where relevant in cooperation with the ENTSO for Gas, the ENNOH and ACER, pursuant to the procedure laid down in Articles 71, 72 and 73, or as guidelines pursuant to the procedure laid down in Article 74.
2. The network codes and guidelines shall:
(a)
provide the minimum degree of harmonisation required to achieve the objectives of this Regulation;
(b)
take into account regional specificities, where appropriate;
(c)
not go beyond what is necessary for the purposes of point (a); and
(d)
apply to all interconnection points within the Union and entry points from and exit points to third countries from 5 August 2026.
3. Until 5 February 2026, regulatory authorities may submit a request to the Commission for a derogation from the application of the network codes and guidelines referred to in paragraph 1 at entry points from and exit points to third countries pursuant to paragraph 2, point (d). The request for a derogation shall be submitted simultaneously to the Commission and to ACER. Within three months of the date of receipt of the request for a derogation ACER shall provide a reasoned opinion to the Commission.
The Commission shall adopt a decision on the request for a derogation, taking into account ACER’s reasoned opinion and after assessing whether the regulatory authority has:
(a)
demonstrated that a network code or guideline, or specific element of those acts, cannot be effectively implemented at entry points from and exit points to third countries; in the case of interconnection points with third countries which have the obligation to adapt to the Union energy acquis, including this Regulation, pursuant to an agreement concluded between the Union and those third countries, but where application or implementation has not been completed, the request for a derogation shall specify which provisions of this Regulation have not been effectively applied or implemented in the third country concerned or which technical rules or lack of technical rules in the third country impede the application of the specific provisions of the relevant network code or guideline;
(b)
explained which measures were taken to alleviate the obstacles to the application of the specific provisions of the relevant network code or guideline;
(c)
demonstrated that the derogation is not detrimental to the proper functioning of the internal market for natural gas, or to the security of supply of the Union or of a Member State.
The derogation shall be limited to the specific provisions that cannot be effectively implemented and shall be granted for a limited period of time.
Establishment of network codes for natural gas
1. The Commission is empowered to adopt delegated acts in accordance with Article 80 to supplement this Regulation by establishing network codes in the following areas:
(a)
network security and reliability rules including rules for operational network security as well as reliability rules ensuring the quality of service of the network;
(b)
network connection rules including rules on the connection of renewable gas and low-carbon gas production facilities, and procedures for connection requests;
(c)
operational procedures in an emergency including system defence plans, restoration plans, market interactions, information exchange and communication tools and facilities;
(d)
rules for trading related to technical and operational provision of network access services and system balancing;
(e)
energy efficiency of natural gas networks and components as well as energy efficiency with regard to network planning and investments enabling the most energy efficient solution from a system perspective;
(f)
cybersecurity aspects of cross-border natural gas flows, including rules on common minimum requirements, planning, monitoring, reporting and crisis management.
2. The Commission may adopt implementing acts establishing network codes in the following areas:
(a)
interoperability rules for the natural gas system, implementing Article 21 of this Regulation and Articles 10, 39 and 44 of Directive (EU) 2024/1788, including addressing interconnection agreements, rules on flow control and measurement principles for the quantity of natural gas and gas quality, allocation and matching rules, common sets of units, data exchange, gas quality, including rules on managing cross-border restrictions due to gas quality differences or due to differences in odorisation practices or due to differences in the volume of hydrogen blended in the natural gas system, cost-benefit analyses for removing cross-border flow restrictions, Wobbe Index classification, mitigating measures, minimum acceptance levels for gas quality parameters relevant for ensuring the unhindered cross-border flow of biomethane, for example oxygen content, short- and long-term gas quality monitoring, information provision and cooperation among relevant market participants, reporting on gas quality, transparency, communication procedures including in the case of exceptional circumstances;
(b)
capacity-allocation and congestion-management rules implementing Articles 8 to 11 of this Regulation and Article 31 of Directive (EU) 2024/1788, including rules on cooperation on maintenance procedures and capacity calculation affecting capacity allocation, the standardisation of capacity products and units including bundling, the allocation methodology including auction algorithms, sequence and procedure for existing, incremental, firm and interruptible capacity, capacity booking platforms, oversubscription and buy back schemes, short and long-term use-it-or-lose-it schemes or any other congestion-management scheme that prevents the hoarding of capacity;
(c)
balancing rules including network-related rules on nomination procedures, rules for imbalance charges, settlement processes associated with the daily imbalance charge and rules for operational balancing between transmission system operators’ systems implementing Articles 8 to 11 of this Regulation and Article 39(5) of Directive (EU) 2024/1788;
(d)
rules on harmonised transmission tariff structures implementing Articles 17 and 18 of this Regulation and Article 78(7) of Directive (EU) 2024/1788, including rules on the application of a reference price methodology, the associated consultation and publication requirements including for the allowed or target revenue as well as the calculation of reserve prices for standard capacity products, discounts for LNG terminal and storage, procedures for the implementation of providing a discount for renewable gas and low-carbon gas, including common principles for inter-transmission-system-operator compensation mechanisms pursuant to Article 17(4) and Article 18 of this Regulation, where appropriate;
(e)
rules for determining the value of transferred assets and the dedicated charge.
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).
3. The Commission shall, after consulting ACER, the ENTSO for Gas, the ENNOH, the EU DSO entity and other relevant stakeholders, establish, every three years, a priority list, identifying the areas set out in paragraphs 1 and 2 to be included in the development of network codes.
If the subject matter of the network code is directly related to the operation of the distribution system and not primarily relevant to the transmission system, the Commission may require the EU DSO entity, in cooperation with the ENTSO for Gas, to convene a drafting committee and submit a proposal for a network code to ACER.
4. The Commission shall request ACER to submit to it, within a reasonable period not exceeding six months of receipt of the Commission’s request, non-binding framework guidelines setting out clear and objective principles for the development of network codes relating to the areas identified in the priority list. The request of the Commission may include conditions which the framework guidelines shall address. Those framework guidelines shall contribute to market integration, non-discrimination, effective competition, and the proper functioning of the market. Upon the reasoned request of ACER, the Commission may extend the period for submitting the framework guidelines.
5. ACER shall consult the ENTSO for Gas, the ENNOH, the EU DSO entity, and other relevant stakeholders with regard to the framework guidelines, for a period of no less than two months, in an open and transparent manner.
6. ACER shall submit framework guidelines to the Commission where requested to do so under paragraph 4.
7. If the Commission considers that the framework guidelines do not contribute to market integration, non-discrimination, effective competition and the proper functioning of the market, it may request ACER to review the framework guidelines within a reasonable period and resubmit it to the Commission.
8. If ACER fails to submit or resubmit framework guidelines within the period set by the Commission under paragraph 4 or 7, the Commission shall develop the framework guidelines concerned.
9. The Commission shall request the ENTSO for Gas or, where provided for in the priority list referred to in paragraph 3, the EU DSO entity in cooperation with the ENTSO for Gas, to submit to ACER, within a reasonable period not exceeding 12 months of receipt of the Commission’s request, a proposal for a network code in accordance with the relevant framework guidelines.
10. The ENTSO for Gas, or where provided for in the priority list referred to in paragraph 3 the EU DSO entity, in cooperation with the ENTSO for Gas, shall convene a drafting committee to assist it in the network code development process. The drafting committee shall consist of representatives of ACER, the ENTSO for Gas, the ENNOH, where appropriate the EU DSO entity, and a limited number of the main affected stakeholders. The ENTSO for Gas or where provided for in the priority list referred to paragraph 3 the EU DSO entity, in cooperation with the ENTSO for Gas, shall develop proposals for network codes in the areas referred to in paragraphs 1 and 2 where so requested by the Commission pursuant to paragraph 9.
11. ACER shall revise the proposal for a network code to ensure that it complies with the relevant framework guidelines and contributes to market integration, non-discrimination, effective competition and the proper functioning of the market, and shall submit the revised network code to the Commission within six months of receipt of the proposal. In the proposal submitted to the Commission, ACER shall take into account the views provided by all involved parties during the drafting of the proposal for a network code led by the ENTSO for Gas or the EU DSO entity and shall consult the relevant stakeholders on the revised version of the proposal for a network code to be submitted to the Commission.
12. Where the ENTSO for Gas or the EU DSO entity have failed to develop a network code within the period set by the Commission pursuant to paragraph 9, the Commission may request ACER to prepare a draft network code on the basis of the relevant framework guidelines. ACER may launch a further consultation for the purpose of preparing a draft network code pursuant to this paragraph. ACER shall submit a draft network code prepared pursuant to this paragraph to the Commission and may recommend that it be adopted.
13. Where the ENTSO for Gas or the EU DSO entity have failed to develop a network code, or ACER has failed to develop a draft network code as referred to in paragraph 12, the Commission may adopt, on its own initiative, or upon the proposal of ACER under paragraph 11, one or more network codes in the areas listed in paragraphs 1 and 2.
14. Where the Commission proposes to adopt a network code on its own initiative as referred to in paragraph 13, the Commission shall consult ACER, the ENTSO for Gas and all relevant stakeholders with regard to the draft network code for a period of no less than two months.
15. This Article shall be without prejudice to the Commission’s right to adopt and amend the guidelines as laid down in Article 74. It shall be without prejudice to the possibility for the ENTSO for Gas to develop non-binding guidance in the areas set out in paragraphs 1 and 2 of this Article where such guidance does not relate to areas covered by a request addressed to the ENTSO for Gas by the Commission. The ENTSO for Gas shall submit any such guidance to ACER for an opinion and shall duly take that opinion into account.
Establishment of network codes for hydrogen
1. The Commission is empowered to adopt delegated acts in accordance with Article 80 to supplement this Regulation by establishing network codes in the following areas:
(a)
energy efficiency regarding hydrogen networks and components as well as energy efficiency with regard to network planning and investments enabling the most energy efficient solution from a system perspective;
(b)
interoperability rules for the hydrogen network, including addressing interconnection agreements, units, data exchange, transparency, communication, information provision and cooperation among relevant market participants as well as hydrogen quality, including common specifications at interconnection points and standardisation, odorisation, cost benefit analyses for removing cross-border flow restrictions due to hydrogen quality differences and reporting on hydrogen quality;
(c)
rules for the system of financial compensation for cross-border hydrogen infrastructure referred to in Article 59 of Directive (EU) 2024/1788;
(d)
capacity-allocation and congestion-management rules, including rules on cooperation on maintenance procedures and capacity calculation affecting capacity allocation, the standardisation of capacity products and units including bundling, the allocation methodology including auction algorithms, sequence and procedure for existing, incremental, firm and interruptible capacity, capacity booking platforms, oversubscription and buy back schemes, short and long-term use-it-or-lose-it schemes or any other congestion-management scheme that prevents the hoarding of capacity;
(e)
rules regarding harmonised tariff structures for hydrogen network access, including for tariffs at interconnection points as referred to in Article 7(8), rules on the application of a reference price methodology, the associated consultation and publication requirements including for the allowed or target revenue, as well as the calculation of reserve prices for standard capacity products and allowed revenue;
(f)
rules for determining the value of transferred assets and the dedicated charge;
(g)
rules for determining the inter-temporal cost allocation;
(h)
balancing rules including network-related rules on nomination procedure, rules for imbalance charges and rules for operational balancing between hydrogen network operators’ networks, imbalance charges, settlement processes associated with the daily imbalance charge and operational balancing between hydrogen network operators’ networks;
(i)
cybersecurity aspects of cross-border hydrogen flows, including rules on common minimum requirements, planning, monitoring, reporting and crisis management.
2. The Commission may adopt implementing acts establishing network codes in the area of transparency rules implementing Article 66, including further details on the content, frequency and form of information provision by hydrogen network operators and implementing point 4 of Annex I, including details on the format and content of the information necessary for network users for effective access to the network, information to be published at relevant points, and details on time schedules.
The implementing acts referred to in the first subparagraph of this paragraph shall be adopted in accordance with the advisory procedure referred to in Article 81(2).
3. The Commission shall, after consulting ACER, the ENNOH and, where relevant, the ENTSO for Gas or the EU DSO entity, as well as other relevant stakeholders, establish, every three years, a priority list, identifying the areas set out in paragraphs 1 and 2 of this Article to be included in the development of network codes. The Commission shall establish the first priority list for the development of hydrogen network codes within one year of the establishment of the ENNOH as provided for in Article 57.
4. The Commission shall request ACER to submit to it, within a reasonable period not exceeding six months of receipt of the Commission’s request, non-binding framework guidelines setting out clear and objective principles for the development of network codes relating to the areas identified in the priority list. The request of the Commission may include conditions which the framework guidelines shall address. Those framework guidelines shall contribute to market integration, non-discrimination, effective competition, and the proper functioning of the market. Upon the reasoned request of ACER, the Commission may extend the period for submitting the framework guidelines.
5. ACER shall consult the ENNOH and, where relevant, the ENTSO for Gas, as well as other relevant stakeholders with regard to the framework guidelines, for a period of no less than two months, in an open and transparent manner.
6. ACER shall submit framework guidelines to the Commission where requested to do so under paragraph 4.
7. If the Commission considers that the framework guidelines do not contribute to market integration, non-discrimination, effective competition and the proper functioning of the market, it may request ACER to review the framework guidelines within a reasonable period and resubmit it to the Commission.
8. If ACER fails to submit or resubmit framework guidelines within the period set by the Commission under paragraph 4 or 7, the Commission shall develop the framework guidelines concerned.
9. The Commission shall request the ENNOH to submit to ACER, within a reasonable period not exceeding 12 months of receipt of the Commission’s request, a proposal for a network code in accordance with the relevant framework guidelines.
10. The ENNOH shall convene a drafting committee to assist it in the network code development process. The drafting committee shall consist of representatives of ACER, the ENTSO for Gas, the ENTSO for Electricity and, where appropriate, the EU DSO entity, and a limited number of the main affected stakeholders. The ENNOH shall develop proposals for network codes in the areas referred to in paragraphs 1 and 2 where so requested by the Commission pursuant to paragraph 9.
11. ACER shall revise the proposal for a network code to ensure that it complies with the relevant framework guidelines and contributes to market integration, non-discrimination, effective competition and the proper functioning of the market and shall submit the revised network code to the Commission within six months of receipt of the proposal. In the proposal submitted to the Commission, ACER shall take into account the views provided by all involved parties during the drafting of the proposal for a network code led by the ENNOH and shall consult the relevant stakeholders on the revised version of the proposal for a network code to be submitted to the Commission.
12. Where the ENNOH has failed to develop a network code within the period set by the Commission pursuant to paragraph 9, the Commission may request ACER to prepare a draft network code on the basis of the relevant framework guidelines. ACER may launch a further consultation for the purpose of preparing a draft network code pursuant to this paragraph. ACER shall submit a draft network code prepared pursuant to this paragraph to the Commission and may recommend that it be adopted.
13. Where the ENNOH has failed to develop a network code, or ACER has failed to develop a draft network code as referred to in paragraph 12, the Commission may adopt, on its own initiative, or upon the proposal of ACER pursuant to paragraph 11, one or more network codes in the areas listed in paragraphs 1 and 2.
14. Where the Commission proposes to adopt a network code on its own initiative as referred to in paragraph 13, it shall consult ACER, the ENNOH, the ENTSO for Gas and all relevant stakeholders with regard to the draft network code for a period of no less than two months.
15. This Article shall be without prejudice to the Commission’s right to adopt and amend the guidelines as laid down in Article 74. It shall be without prejudice to the possibility for the ENNOH to develop non-binding guidance in the areas set out in paragraphs 1 and 2 of this Article where such guidance does not relate to areas covered by a request addressed to the ENNOH by the Commission. The ENNOH shall submit any such guidance to ACER for an opinion and shall duly take that opinion into account.
Amendments to network codes
1. The Commission is empowered to amend the network codes within the areas listed in Article 71(1) and (2) and in Article 72(1) and (2) in accordance with the relevant procedure set out in those Articles.
2. Persons who are likely to have an interest in any network code adopted pursuant to Articles 70, 71, 72 and this Article, including the ENTSO for Gas, the ENNOH, the EU DSO entity, regulatory authorities, transmission system operators, distribution system operators, system users and consumers, may propose draft amendments to that network code to ACER. ACER may also propose amendments on its own initiative.
3. ACER may make reasoned proposals to the Commission for amendments, explaining how such proposals are consistent with the objectives of the network codes set out in Article 70 of this Regulation. Where it considers a proposal for an amendment to be admissible and where it proposes amendments on its own initiative, ACER shall consult all relevant stakeholders in accordance with Article 14 of Regulation (EU) 2019/942.
Guidelines
1. The Commission is empowered to adopt binding guidelines in the areas listed in this Article.
2. The Commission is empowered to adopt guidelines in the areas where such acts could also be developed under the network code procedure pursuant to Articles 71 and 72. Those guidelines shall be adopted in the form of delegated or implementing acts, depending on the relevant empowerment provided for in this Regulation.
3. The Commission is empowered to adopt delegated acts in accordance with Article 80 to supplement this Regulation by establishing guidelines in the following areas:
(a)
details of third-party access services, including the character, duration and other requirements of those services, in accordance with Articles 6, 7 and 8;
(b)
details of the principles underlying capacity-allocation mechanisms and on the application of congestion-management procedures in the event of contractual congestion, in accordance with Articles 10 and 11;
(c)
details of the provision of information, definition of the technical information necessary for network users to obtain effective access to the system and the definition of all relevant points for transparency requirements, including the information to be published at all relevant points and the time schedule for the publication of that information, in accordance with Articles 33 and 34;
(d)
details of tariff methodology related to cross-border trade of natural gas, in accordance with Articles 17 and 18.
4. The Commission is empowered to adopt delegated acts in accordance with Article 80 in order to amend the guidelines laid down in Annex I, with a view to specifying:
(a)
the details of the information to be published on the methodology used to set the regulated revenue of the transmission system operator, in accordance with Articles 33 and 34;
(b)
the details of the principles of capacity-allocation mechanisms and congestion-management procedures implementing Articles 10 and 11;
(c)
the details of the technical information necessary for network users to obtain effective access to the natural gas system implementing Article 33(1);
(d)
the details of the definition of all relevant points, the information to be published and the schedule for transparency requirements implementing Article 33;
(e)
the details of the format and content of technical information on network access to be published by hydrogen network operators implementing Article 66.
5. When amending guidelines, the Commission shall consult:
(a)
ACER, the ENTSO for Gas and the EU DSO entity and, where relevant, other stakeholders for guidelines that concern natural gas;
(b)
ACER, the ENNOH and the EU DSO entity and, where relevant, other stakeholders for guidelines that concern hydrogen.
Right of Member States to provide for more detailed measures
This Regulation shall be without prejudice to the rights of Member States to maintain or introduce measures that contain more detailed provisions than those set out in this Regulation, in the guidelines referred to in Article 74 or in the network codes referred to in Articles 70 to 73, provided that those measures comply with Union law.
Provision of information and confidentiality
1. Member States and regulatory authorities shall, upon request, provide the Commission with the information necessary for the purposes of enforcing this Regulation, including the guidelines and the network codes adopted pursuant to this Regulation.
2. The Commission shall set a reasonable time limit within which the information is to be provided, taking into account the complexity and urgency of the information required.
3. If the Member State or the regulatory authority concerned does not provide the information within the time limit set by the Commission, the Commission may request all the information necessary for the purpose of enforcing this Regulation directly from the undertakings concerned.
When sending a request for information to an undertaking, the Commission shall, at the same time, forward a copy of the request to the Member State or the regulatory authority concerned of the Member State in whose territory the seat of the undertaking is situated.
4. In its request for information, the Commission shall state the legal basis of the request, the time limit within which the information is to be provided, the purpose of the request, and the penalties provided for in Article 77(2) for supplying incorrect, incomplete or misleading information.
5. The owners of the undertakings or their representatives and, in the case of legal persons, the natural persons authorised to represent the undertaking by law or by their instrument of incorporation, shall supply the information requested. Where lawyers are authorised to supply the information on behalf of their client, the client shall remain fully responsible in the event that the information supplied is incomplete, incorrect or misleading.
6. Where an undertaking does not provide the information requested within the time limit set by the Commission or supplies incomplete information, the Commission may by decision require the information to be provided. That decision shall specify what information is required and set a reasonable time limit within which it is to be supplied. It shall indicate the penalties provided for in Article 77(2). It shall also indicate the right to have the decision reviewed by the Court of Justice of the European Union.
The Commission shall, at the same time, send a copy of its decision to the Member State where the person is resident or the seat of the undertaking is situated or the regulatory authority of that Member State.
7. The information referred to in paragraphs 1 and 2 shall be used only for the purposes of enforcing this Regulation.
The Commission shall not disclose information acquired pursuant to this Regulation where that information is covered by the obligation of professional secrecy.
Penalties
1. Member States shall lay down the rules on penalties applicable to infringements of this Regulation, the network codes and guidelines adopted pursuant to Articles 70 to 74 and the guidelines laid down in Annex I and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. Member States shall, without delay, notify the Commission of those rules and of those measures and shall notify it, without delay, of any subsequent amendment affecting them.
2. The Commission may, by decision, impose on undertakings fines not exceeding 1 % of the total turnover in the preceding business year where, intentionally or negligently, those undertakings supply incorrect, incomplete or misleading information in response to a request for information made pursuant to Article 76(4) or fail to supply information within the time-limit set in a decision adopted pursuant to Article 76(6), first subparagraph. When setting the amount of a fine, the Commission shall take into account the gravity of the undertaking’s failure to comply with the network codes and guidelines adopted pursuant to Articles 70 to 74 and the guidelines laid down in Annex I.
3. The penalties provided for pursuant to paragraph 1 and any decisions taken pursuant to paragraph 2 shall not be of a criminal law nature.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
