Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the internal market for electricity (recast) - Hoofdinhoud

Council of the European Union

Brussels, 23 November 2018 (OR. en)

5834/6/18

Interinstitutional File: REV 6

2016/0379(COD) i

ENER 37 ENV 57 CLIMA 19 COMPET 58 CONSOM 22 FISC 47 CODEC 128

NOTE

From: General Secretariat of the Council

To: Permanent Representatives Committee

No. Cion doc.: 15135/1/16 REV 1 + ADD 1 REV 1

• + 

  ADD 2 REV 1

Subject: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the internal market for electricity (recast)

• I. 

  INTRODUCTION

• 1. 

  On 30 November 2016, the Commission submitted a set of proposals as “Clean Energy for

  All Europeans” package, in order to provide a stable legislative framework, necessary for

  the energy transition. Two legislative files, based on article 194(2) of the Treaty, discuss the

  common rules for the internal market in electricity.

• 2. 

  In the European Parliament, these proposals were referred to the Industry, Research and

  Energy Committee (ITRE) which appointed on 25 January 2017 Mr. Krišjānis Kariņš as

  rapporteur. The ITRE Committee voted on its report on 21 February 2018.

II. STATE OF PLAY

• 3. 

  The TTE (Energy) Council adopted, on 18 December 2017, a general approach on the abovementioned

  proposal. The first informal trilogue, based on the Council general approach, took

  place on 27 June 2018, the second, third and fourth based on revised mandates was held on 11

  September 2018, 18 October and 13 November. The trilogues and technical meetings in

  between allowed the co-legislators to advance significantly and propose compromise

  suggestions. Moreover, a broad mandate was also given to the technical meetings to make

  progress on the entire Regulation.

• 4. 

  The entire proposal was discussed in technical meetings. Moreover, during September,

  October and November the Energy Working Party has pursued its examination of the

  Presidency's compromise proposals. Furthermore, in order to prepare the fifth informal

  trilogue, several technical meetings with the EP have taken place.

III. REVISED MANDATE

• 5. 

  In view of the fifth informal trilogue scheduled for 5 December 2018, the basis for the

  discussion will be the fourth-column table contained in Annex I to this note that sets out in the

  4th column textual proposals 'provisionally agreed' in second trilogue or 'provisionally agreed

  in TM' (technical meetings) which await to be provisionally confirmed at the fifth trilogue.

  The Presidency also indicates additional Council compromise proposals.

  In Annex II, consolidated version of Articles 13, 18a, 18b, 38 and 39 was included to

  facilitate the reading of the latest compromises on these articles. The content of Annex II is

  also included in the 4 column document.

• 6. 

  Paragraphs 'provisionally agreed' in trilogues or technical meetings (in TM) as well as

  Council compromise proposals are indicated in the fourth column.

• 7. 

  In the fourth column, all changes leading to and including Coreper of 16 November 2018 are

  bold for additions and [ ] for deletions. New proposals are bold and underlined (or bold

  italics and underlined) and deletions are strikethrough.

IV. CONCLUSION

  The Permanent Representatives Committee is invited to agree on a revised mandate for the

fourth informal trilogue on 5 December 2018, on the basis of the text included in Annex I and

Annex II.

___________________ ANNEX I

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the internal market for electricity

(recast)

• 1. 

  COMISSION PROPOSAL EP PLENARY TEXT COUNCIL GENERAL Compromise proposals

  APPROACH (doc. ) (COD 2016/0379 - doc.

  15135/1/16 REV 1 + ADD 1 REV 1)

• 2. 

  THE EUROPEAN THE EUROPEAN N.B. any compromise proposals for the PARLIAMENT AND THE PARLIAMENT AND THE recitals are provisional, and without

  COUNCIL OF THE COUNCIL OF THE prejudice to any alignment with the content EUROPEAN UNION, EUROPEAN UNION, of the Articles that may prove necessary. Having regard to the Treaty on Having regard to the Treaty on the Functioning of the the Functioning of the European European Union, and in Union, and in particular Article particular Article 194 (2) 194 (2) thereof, thereof, Having regard to the proposal Having regard to the proposal from the European Commission, from After transmission of the draft the European Commission, legislative act to the national After transmission of the draft parliaments, legislative act to the national Having regard to the opinion of parliaments, the European Economic and Having regard to the opinion of Social Committee, the European Economic and Having regard to the opinion of Social Committee, the Committee of the Regions, Having regard to the opinion of Acting in accordance with the the Committee of the Regions, ordinary legislative procedure, Acting in accordance with the Whereas: ordinary legislative procedure, Whereas:

ANNEX I TREE.2.B EN

• 3. 

  (1) Regulation (EC) No (1) Regulation (EC) No

  714/2009 of the European 714/2009 of the European Parliament and of the Council Parliament and of the Council 1 has been substantially amended has been substantially amended several times. Since further several times. Since further amendments are to be made, amendments are to be made, that that Regulation should be recast Regulation should be recast in in the interests of clarity. the interests of clarity.

• 4. 

  (2) The Energy Union aims (2) The Energy Union aims at at providing consumers – providing consumers –

  household and business – household and business – with secure, sustainable, safe, secure, sustainable, competitive and affordable competitive and affordable energy. Historically, the energy. Historically, the electricity system was electricity system was dominated by vertically dominated by vertically integrated, often publicly integrated, often publicly owned, owned, monopolies with large monopolies with large centralised nuclear or fossil fuel centralised nuclear or fossil fuel power plants. The internal power plants. The internal market in electricity, which has market in electricity, which has been progressively been progressively implemented implemented since 1999, aims since 1999, aims to deliver a real to deliver a real choice for all choice for all consumers in the consumers in the Union , both Union , both citizens and citizens and businesses, new businesses, new business business opportunities and more opportunities and more crosscross-border trade, so as to border trade, so as to achieve achieve efficiency gains, efficiency gains, competitive competitive prices and higher prices and higher standards of standards of service, and to service, and to contribute to contribute to security of supply security of supply and and sustainability. The internal sustainability. The internal

1 Regulation (EC) No 714/2009 i of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 i (OJ L 211, 14.8.2009, p. 15).

ANNEX I TREE.2.B EN

market in electricity has market in electricity has increased competition, in increased competition, in particular at the wholesale particular at the wholesale level, level, and cross-border trade. It and cross-border trade. It remains the foundation of an remains the foundation of an efficient energy market. efficient energy market.

• 5. 

  (3) Europe's energy system (3) Europe's energy system is is in the middle of its most in the middle of its most

  profound change in decades and profound change in decades and the electricity market is at the the electricity market is at the heart of that change. The heart of that change. [ ] This common goal to decarbonise change creates and facilitates the energy system creates new new opportunities and opportunities and challenges for challenges for market market participants. At the participants. At the same time, same time, technological technological developments developments allow for new allow for new forms of forms of consumer participation consumer participation and and cross-border cooperation. cross-border cooperation.

ANNEX I TREE.2.B EN

• 6. 

  (3a) This Regulation is establishing rules to ensure the functioning of the internal energy market while

  integrating a limited number of requirements related to the development of renewable forms of energy and environmental policy, in particular specific rules for certain renewable power generating facilities, concerning balancing responsibility, dispatch and redispatch as well as a threshold for CO2 emissions of new generation capacity where it is subject to a capacity mechanism.

6a. Council compromise proposal:

6a. Considering that renewable energy sources or high energy cogeneration from small power generation facilities may be granted priority dispatch either via a specific priority order in the dispatching methodology or via legal or regulatory requirements for market operators to provide this energy at all cost on the market.

• 7. 

  (4) State interventions, often (4) State interventions, often designed in an uncoordinated designed in an uncoordinated

  manner, have led to increasing manner, have led to increasing distortions of the wholesale distortions of the wholesale electricity market, with electricity market, with negative negative consequences for consequences for investments investments and cross-border and cross-border trade. trade.

ANNEX I TREE.2.B EN

• 8. 

  (5) In the past, electricity AM 1

  customers were purely passive, (5) In the past, electricity (5) In the past, electricity

  often buying electricity at customers were purely passive, customers were purely passive,

  regulated prices which had no often buying electricity at regulated often buying electricity at

  direct relation to the market. In prices which had no direct relation regulated prices which had no

  the future, customers need to be to the market. In the future, direct relation to the market. In enabled to fully participate in customers need to be enabled to the future, customers need to be the market on equal footing fully participate in the market on enabled to fully participate in the with other market participants. equal footing with other market market on equal footing with To integrate growing shares of participants and be empowered to other market participants. To renewable energy, the future manage their energy consumption. integrate growing shares of electricity system should make To integrate growing shares of renewable energy, the future use of all available sources of renewable energy, the future electricity system should make flexibility, particularly demand electricity system should make use use of all available sources of response and storage. To of all available sources of flexibility, particularly demand achieve effective flexibility, particularly demand side response and storage. [ ] It also decarbonisation at lowest cost, solutions and storage, and of needs to encourage energy it also needs to encourage digitalisation through the efficiency.

  energy efficiency. integration of innovative technologies with the electricity system. To achieve effective decarbonisation at lowest cost, it also needs to encourage energy efficiency. The achievement of the internal energy market through the effective integration of renewable energy can drive investments in the long term and can contribute to delivering the objectives of the Energy Union and the 2030 climate and energy framework.

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• 9. 

  (6) More market integration (6) More market integration and the change towards a more and the change towards a more volatile electricity production volatile electricity production requires increased efforts to requires increased efforts to

  coordinate national energy coordinate national energy policies with neighbours and to policies with neighbours and to use the opportunities of crossuse the opportunities of crossborder electricity trade. border electricity trade.

• 10. 

  (7) Regulatory frameworks (7) Regulatory frameworks have developed, allowing have developed, allowing

  electricity to be traded across electricity to be traded across the the Union. That development Union. That development has has been supported by the been supported by the adoption adoption of several network of several network codes and codes and guidelines for the guidelines for the integration of integration of the electricity the electricity markets. Those markets. Those network codes network codes and guidelines and guidelines contain contain provisions on market provisions on market rules, rules, system operation and system operation and network network connection. To ensure connection. To ensure full full transparency and increase transparency and increase legal legal certainty, the main certainty, the main principles of principles of market functioning market functioning and capacity and capacity allocation in the allocation in the balancing, balancing, intraday, day ahead intraday, day ahead and forward and forward market timeframes market timeframes should also should also be adopted pursuant be adopted pursuant to the to the ordinary legislative ordinary legislative procedure procedure and incorporated in a and incorporated in a single act. single act.

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• 11. 

  (7a) The Balancing Guideline establishes in its Article 13 a

  process where transmission system operators are able to delegate all or part of their tasks to a third party. The delegating transmission system operators should remain responsible for ensuring compliance with the obligations in this Regulation. Likewise, Member States should be able to assign tasks and obligations to a third party. Such assignment should be limited to tasks and obligations executed at national level (such as imbalance settlement). The limitations to the assignment should not lead to unnecessary changes to the existing national arrangements. However, transmission system operators should remain responsible for the tasks entrusted to them pursuant to Article 40 of the [recast Electricity Directive].

ANNEX I TREE.2.B EN

• 12. 

  (7b) The Balancing Guideline established in its Articles 18,

  30 and 32 that the pricing method for standard and specific products for balancing energy should create positive incentives for market participants in keeping and/or helping to restore the system balance of their imbalance price area, reduce system imbalances and costs for society. Such pricing approach should strive for an economically efficient use of demand response and other balancing resources subject to operational security limits. The pricing method used in the procurement of balancing capacity should strive for an economically efficient use of demand response and other balancing resources subject to operational security limits.

ANNEX I TREE.2.B EN

• 13. 

  (7c) The integration of balancing energy markets should facilitate the efficient functioning of the intraday market in order to provide the possibility for market

  participants to balance themselves as close as possible to real time as set with the balancing energy gate closure times defined in Article 24 of the Balancing Guideline. Only the imbalances remaining after the end of the intraday market should be balanced by transmission system operators with the balancing market. The Balancing Guideline foresees in its Article 53 the harmonisation of the imbalance settlement period to 15 minutes in Europe. Such harmonisation should support intraday trading and foster the development of a number of trading products with same delivery windows.

ANNEX I TREE.2.B EN

• 14. 

  (7d) In order to enable transmission system operators to procure and use balancing capacity in an efficient, economic and market-based manner, there is a need to foster market integration. In this regard, the Balancing Guidelines established in its Title IV three methodologies through which transmission system operators may allocate cross-zonal capacity for the exchange of balancing capacity and sharing of reserves, when supported on the basis of a cost-benefit analysis: the cooptimisation process, the market-based allocation process and the allocation based on an economic

  efficiency analysis. The cooptimisation allocation process should be performed on a dayahead basis whereas the market-based allocation process could be performed where the contracting is done not more than one week in advance of the provision of the balancing capacity and the allocation based on an economic efficiency analysis where the contracting is done more than one week in

ANNEX I TREE.2.B EN

advance of the provision of the balancing capacity on the conditions that the volumes allocated are limited and that an assessment is done every year. Once a methodology for the allocation process of crosszonal capacity is approved by the relevant regulatory authorities, early application of the methodology by two or more transmission system operators could take place to gain experience and allow for a smooth application by more transmission system operators in the future. The application of such a methodology, where existing, should nevertheless be harmonised by all transmission system operators in order to foster market integration.

ANNEX I TREE.2.B EN

• 15. 

  (7e) The Balancing Guideline establishes in its Title V that

  the general objective of imbalance settlement is to ensure that balance responsible parties support the system's balance in an efficient way and to incentivise market participants in keeping and/or helping to restore the system balance. To make balancing markets and the overall energy system fit for the integration of increasing shares of variable renewables, imbalance prices should reflect the real-time value of energy.

ANNEX I TREE.2.B EN

• 16. 

  (7f) The guideline on capacity allocation and congestion management sets out detailed guidelines on cross-zonal capacity allocation and congestion management in the day-ahead and intraday markets, including the requirements for the

  establishment of common methodologies for determining the volumes of capacity simultaneously available between bidding zones, criteria to assess efficiency and a review process for defining bidding zones. Articles 32 and 34 set out rules on review of bidding zone configuration, Articles 41 and 54 set out harmonised limits on maximum and minimum clearing prices for day-ahead and intraday timeframes, Article 59 sets out rules on intraday cross-zonal gate closure times, whereas Article 74 of the guideline sets out rules on redispatching and countertrading cost sharing methodologies.

ANNEX I TREE.2.B EN

• 17. 

  (7g) The guideline on forward capacity allocation sets out detailed rules on crosszonal capacity allocation in the forward markets, on the establishment of a common methodology to determine long-term cross-zonal capacity, on the establishment of a single allocation platform at European level offering long-term transmission rights, and on the possibility to return long-term transmission rights for subsequent forward capacity allocation or transfer long-term transmission rights between market participants. Article 30 of the guideline sets out rules on forward hedging products.

ANNEX I TREE.2.B EN

• 18. 

  (7h) The network code on requirements for generators 2 sets out the requirements for grid connection of powergenerating

  facilities, namely synchronous power-generating modules, power park modules and offshore power park modules, to the interconnected system. It, therefore, helps to ensure fair conditions of competition in the internal electricity market, to ensure system security and the integration of renewable electricity sources, and to facilitate Union-wide trade in electricity. Articles 66 and 67 of the network code set out rules for emerging technologies in electricity generation.

18a. Council compromise proposal:

(7i) When a review of an existing bidding zone configuration is launched by one single regulatory authority or TSO with the approval of its competent regulatory authority, for the bidding zones inside the TSO's control area, if the bidding zone configuration has negligible impact on neighboring TSOs' control areas, including interconnectors, and the review of bidding zone configuration is necessary

2 Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators.

ANNEX I TREE.2.B EN

to improve efficiency, or to maintain operational security, the TSO of the relevant control area and the competent regulatory authority should be, respectively, the only TSO and the only regulatory authority participating in the review. The relevant TSO and regulatory authority, respectively, should give the neighboring TSOs prior notice of the review and the results of the review should be published.

18b. (7j) When Regional Coordination Centres perform capacity calculation, they should maximise capacity considering non-costly remedial actions and respecting the

operational security limits of TSOs of the Capacity Calculation Region. Where the calculation does not result in capacity equal or above the threshold set out in this Regulation, Regional Coordination Centres should consider all available costly remedial actions to further increase capacity up to the threshold, including redispatching potential within and between the capacity calculation regions, while respecting the operational security limits of TSOs of the Capacity Calculation Region.

18c. (7k) When performing capacity calculation, regional coordination centres shall calculate cross-zonal capacities using data from transmission system operators which respects the operational security limits of their respective control areas. Transmission system operators may decide to deviate from coordinated

ANNEX I TREE.2.B EN

capacity calculation where its implementation would result in a violation of the operational security limits of network elements in its control area. These deviations should be carefully monitored and transparently reported to prevent abuse and ensure that the volume of interconnection capacity to be made available to market participants is not limited in order to solve congestion inside a bidding zone. Where an action plan is in place, the action plan should take account of deviations and address their cause.

• 19. 

  (8) Core market principles (8) Core market principles should set out that electricity should set out that electricity prices are to be determined prices are to be determined

  through demand and supply. through demand and supply. Those prices should signal Those prices should signal when when electricity is needed, electricity is needed, providing providing market-based market-based incentives for incentives for investments into investments into flexibility flexibility sources such as sources such as flexible flexible generation, generation, interconnection, interconnection, demand demand response or storage. response or storage.

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• 20. 

  (9) The decarbonisation of (9) While decarbonisation of the electricity sector, with the electricity sector, with

  renewable energy becoming a renewable energy becoming a major part of the market, is a major part of the market, is one core objective of the Energy of the goals of the Energy Union. As the Union moves Union [ ] it is crucial that the towards the decarbonisation of market removes existing barriers the electricity sector and to cross-border trade and increasing penetration of encourages investments into renewable energy sources, it is supporting infrastructure, for crucial that the market removes example, more flexible existing barriers to cross-border generation, interconnection, trade and encourages demand response and storage. investments into supporting To support this shift to variable infrastructure, for example, and distributed generation, and more flexible generation, to ensure that energy market interconnection, demand principles are the basis for the response and storage. To Union's electricity markets of support this shift to variable and the future, a renewed focus on distributed generation, and to short-term markets and scarcity ensure that energy market pricing is essential. principles are the basis for the Union's electricity markets of the future, a renewed focus on short-term markets and scarcity pricing is essential.

ANNEX I TREE.2.B EN

• 21. 

  (10) Short-term markets will AM 2

  improve liquidity and (10) Short-term markets will (10) Short-term markets will

  competition by enabling more improve liquidity and competition improve liquidity and

  resources to participate fully in by enabling more resources to competition by enabling more

  the market, especially those that participate fully in the market, resources to participate fully in

  are more flexible. Effective especially those that are more the market, especially those that scarcity pricing will encourage flexible. Effective scarcity pricing are more flexible. Effective market participants to be will encourage market participants scarcity pricing will encourage available when the market most to react to market signals and to market participants to be needs it and ensures that they be available when the market most available when the market most can recover their costs in the needs it and ensures that they can needs it and ensures that they wholesale market. It is therefore recover their costs in the wholesale can recover their costs in the critical to ensure that, as far as market. It is therefore critical to wholesale market. It is therefore possible, administrative and ensure that administrative and critical to ensure that, as far as implicit price caps are removed implicit price caps are removed to possible, administrative and to allow scarcity prices to allow scarcity pricing. When fully implicit price caps are removed increase up to the value of lost embedded in the market structure, to allow scarcity prices to load. When fully embedded in short-term markets and scarcity increase up to the value of lost the market structure, short-term pricing will contribute to the load. When fully embedded in markets and scarcity pricing removal of other market distortive the market structure, short-term will contribute to the removal measures, such as capacity markets and scarcity pricing will of other measures, such as mechanisms, to ensure security of contribute to the removal of capacity mechanisms, to ensure supply. At the same time, scarcity other measures, such as capacity security of supply. At the same pricing without price caps on the mechanisms, to ensure security time, scarcity pricing without wholesale market should not of supply. At the same time, price caps on the wholesale jeopardize the possibility for scarcity pricing without price market should not jeopardize reliable and stable prices for final caps on the wholesale market the possibility for reliable and customers, in particular should not jeopardize the stable prices for final households, SMEs and industrial possibility for reliable and stable customers, in particular consumers. prices for final customers, in households and SMEs. particular households and SMEs.

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• 22. 

  (11) Derogations to (11) Subject to Union State fundamental market principles aid rules pursuant to Articles such as balancing 107, 108 and 109 derogations to responsibility, market-based fundamental market principles dispatch, or curtailment and such as balancing responsibility, redispatch reduce flexibility market-based dispatch, or [ ] signals and act as barriers to the redispatch reduce flexibility

  development of solutions such signals and act as barriers to the as storage, demand response or development of solutions such aggregation. While derogations as storage, demand response or are still necessary to avoid aggregation. While derogations unnecessary administrative are still necessary to avoid burden for certain actors, in unnecessary administrative particular households and burden for certain actors, in SMEs, broad derogations particular households and SMEs, covering entire technologies are broad derogations covering not consistent with the entire technologies are not objective of achieving marketconsistent with the [ ] aim of based and efficient achieving market-based and decarbonisation and should thus efficient decarbonisation be replaced by more targeted process and should thus be measures. replaced by more targeted measures.

• 23. 

  (12) The precondition for AM 3 (12) The precondition for effective competition in the (12) The precondition for effective competition in the internal market in electricity is effective competition in the internal internal market in electricity is non-discriminatory and market in electricity is nonnon-discriminatory and

  transparent charges for network discriminatory, transparent and transparent charges for network use including interconnecting adequate charges for network use use including interconnecting lines in the transmission including interconnecting lines in lines in the transmission system. system. The available capacity the transmission system. The Uncoordinated curtailments of of those lines should be set at available capacity of those lines interconnector capacities the maximum levels consistent should be set at the maximum increasingly limit the exchange with the safety standards of levels consistent with the safety of electricity between Member

  secure network operation. standards of secure network

  operation. States and have become a

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serious obstacle to the development of a functioning internal market in electricity. The available capacity of [ ] interconnectors should therefore be set at the maximum level consistent with the safety standards of secure network operation including respecting (n-1) security. However, there are some limitations to setting the capacity level in a meshed grid. The level of unscheduled flows should not go beyond what could be expected in a bidding zone without structural congestions. Further, foreseeable problems for ensuring grid security might occur, for example in case of grid maintenance. Also case-by-case grid security issues might occur. Limitations beyond that level can only be accepted for a limited transitional phase which is necessary to adapt the current physical situation in the grids to use the maximum capacity of the interconnectors. The new target benchmark, and if applicable, the linear trajectory towards this level, should ensure that a minimum

ANNEX I TREE.2.B EN

share of the interconnector capacity is being available for trade or used in the capacity calculation respectively. Loop flows should only be taken into account for calculating capacity to the extent that they would exist without internal congestion. Whereas certain clearly circumscribed limitations in cross-zonal capacity may be justifiable, a clear minimum threshold needs to be put in place, preventing excessive use of derogation possibilities and giving a predictable capacity value for market participants. Where a flow-based approach is used, this threshold should determine the minimum share of the thermal capacity of an interconnector to be used as an input for coordinated capacity allocation under the capacity calculation and congestion management guideline.

• 24. 

  (13) It is important to avoid (13) It is important to avoid distortion of competition distortion of competition

  resulting from the differing resulting from the differing safety, operational and planning safety, operational and planning standards used by transmission standards used by transmission system operators in Member system operators in Member States. Moreover, there should States. Moreover, there should be transparency for market be transparency for market

ANNEX I TREE.2.B EN

participants concerning participants concerning available available transfer capacities and transfer capacities and the the security, planning and security, planning and operational standards that affect operational standards that affect the available transfer capacities. the available transfer capacities.

• 25. 

  (14) To efficiently steer (14) To efficiently steer necessary investments, prices necessary investments, prices also need to provide signals also need to provide signals where electricity is most where electricity is most needed. needed. In a zonal electricity In a zonal electricity system, system, correct locational correct locational signals require signals require a coherent, a coherent, objective and reliable objective and reliable determination of bidding zones determination of bidding zones via a transparent process. In via a transparent process. In order to ensure efficient order to ensure efficient operation and planning of the operation and planning of the Union electricity network and to Union electricity network and provide effective price signals to provide effective price for new generation capacity, signals for new generation demand response or

  capacity, demand response or transmission infrastructure, transmission infrastructure, bidding zones should reflect bidding zones should reflect structural congestion. In structural congestion. In particular, cross-zonal capacity particular, cross-zonal capacity should not be reduced in order to should not be reduced in order resolve internal congestion. to resolve internal congestion.

• 26. 

  (14a) To reflect the divergent principles of optimising

  bidding zones without jeopardizing liquid markets and grid investments two options should be foreseen to overcome congestions. Member States can choose

ANNEX I TREE.2.B EN

between a bidding zone split or measures such as grid reinforcement and grid optimisation. The starting point for such a decision should be the identification of long term structural congestions either by the transmission system operator of a Member State or by the bidding zone review. Member States should try to find a common solution first on how to best address congestions. In that course the Member States might adopt multinational or national action plans to overcome congestions. At the end of the implementation of this action plan, Member States should have a possibility to choose whether to opt for a split or whether to opt for covering remaining congestions with remedial actions for which they bear the costs. In the latter case they shall not be split against their will, as long as the level of minimum capacity benchmark is reached. The minimum level of capacity that should be used in capacity calculation should be a percentage of the capacity of a critical network element after respecting operational

ANNEX I TREE.2.B EN

security limits in contingency situation and taking account of the reliability margin. The capacity of the critical network elements should not take into account internal congestions or flows leaving and entering the same bidding zones without being scheduled. A Commission decision on the bidding zone configuration should be possible as a measure of last resort and only amend the bidding zone configuration in those Member States which have opted for a split or which have not reached the minimum level of the benchmark. For Member States adopting an action plan to overcome congestions with measures, a phase-in period for the opening of interconnectors should apply. To this end, Member State should agree on a linear trajectory the starting point of which is the capacity allocated at this border before the implementation of the action plan.

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• 27. 

  (15) Efficient decarbonisation (15) Efficient [ ] market of the electricity system via integration requires

  market integration requires systematically abolishing systematically abolishing barriers to cross-border trade to barriers to cross-border trade to overcome market fragmentation overcome market fragmentation and to allow Union energy and to allow Union energy customers to fully benefit from customers to fully benefit from the advantages of integrated the advantages of integrated electricity markets and electricity markets and competition. competition.

• 28. 

  (16) This Regulation should (16) This Regulation should lay down basic principles with lay down basic principles with regard to tarification and regard to tarification and

  capacity allocation, whilst capacity allocation, whilst providing for the adoption of providing for the adoption of guidelines detailing further guidelines detailing further relevant principles and relevant principles and methodologies, in order to methodologies, in order to allow allow rapid adaptation to rapid adaptation to changed changed circumstances. circumstances.

• 29. 

  (17) The management of (17) The management of congestion problems should congestion problems should provide correct economic provide correct economic signals signals to transmission system to transmission system operators operators and market and market participants and participants and should be should be based on market based on market mechanisms. mechanisms.

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• 30. 

  (18) In an open, competitive (18) In an open, competitive market, transmission system market, transmission system

  operators should be operators should be compensated for costs incurred compensated for costs incurred as a result of hosting crossas a result of hosting crossborder flows of electricity on border flows of electricity on their networks by the operators their networks by the operators of the transmission systems of the transmission systems from from which cross-border flows which cross-border flows originate and the systems where originate and the systems where those flows end. those flows end.

• 31. 

  (19) Payments and receipts (19) Payments and receipts resulting from compensation resulting from compensation between transmission system between transmission system operators should be taken into operators should be taken into account when setting national account when setting national network tariffs. network tariffs.

• 32. 

  (20) The actual amount (20) The actual amount payable for cross-border access payable for cross-border access to the system can vary to the system can vary

  considerably, depending on the considerably, depending on the transmission system operator transmission system operator involved and as a result of involved and as a result of differences in the structure of differences in the structure of the the tarification systems applied tarification systems applied in in Member States. A certain Member States. A certain degree degree of harmonisation is of harmonisation is therefore therefore necessary in order to necessary in order to avoid avoid distortions of trade. distortions of trade.

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• 33. 

  (21) There should be rules on (21) There should be rules on the use of revenues flowing the use of revenues flowing from from congestion-management congestion-management

  procedures, unless the specific procedures, unless the specific nature of the interconnector nature of the interconnector concerned justifies an concerned justifies an exemption exemption from those rules. from those rules.

• 34. 

  (22) To provide for a level (22) To provide for a level playing field between all playing field between all market market participants, network participants, network tariffs tariffs should be applied in a should be applied in a way way which does not which does not discriminate discriminate between between production connected at production connected at the the distribution-level with regard distribution-level with regard to to the production connected at the production connected at the the transmission level, either transmission level, either positively or negatively. They positively or negatively. They should not discriminate against should not discriminate against energy storage, and should not energy storage, and should not create disincentives for

  create disincentives for participation in demand response participation in demand or represent an obstacle to response or represent an improvements in energy obstacle to improvements in efficiency. energy efficiency.

ANNEX I TREE.2.B EN

• 35. 

  (23) In order to increase (23) In order to increase transparency and comparability transparency and comparability in tariff-setting where binding in tariff-setting where binding harmonization is not seen as harmonization is not seen as adequate, recommendations on adequate, [ ] best practice tariff methodologies should be report on tariff methodologies issued by the European Agency should be issued by the

  for the Cooperation of Energy European Agency for the Regulators established by Cooperation of Energy [recast of Regulation (EC) No Regulators established by [recast 713/2009 as proposed by of Regulation (EC) No 713/2009 i COM(2016) 863 i/2] ("the as proposed by COM(2016) Agency"). 863/2] ("the Agency").

• 36. 

  (24) To better ensure optimum (24) To better ensure optimum investment in the transinvestment in the trans-European European grid and address the grid and address the challenge

  challenge where viable where viable interconnection interconnection projects cannot projects cannot be built for lack be built for lack of prioritisation of prioritisation at national level, at national level, the use of the use of congestion rents congestion rents should be should be reconsidered and reconsidered and only allowed contribute [ ] to guarantee in order to guarantee availability and maintain or availability and maintain or increase interconnection increase interconnection capacities. capacities.

• 37. 

  (25) In order to ensure (25) In order to ensure optimal optimal management of the management of the electricity

  electricity transmission network transmission network and to and to allow trading and allow trading and supplying supplying electricity across electricity across borders in the borders in the Union , a Union, a European Network of European Network of Transmission System Operators Transmission System Operators for Electricity (the ENTSO for for Electricity (the ENTSO for Electricity), should be Electricity), should be established. The tasks of the established. The tasks of the ENTSO for Electricity should be ENTSO for Electricity should carried out in compliance with

ANNEX I TREE.2.B EN

be carried out in compliance Union's competition rules which with Union's competition rules remain applicable to the which remain applicable to the decisions of the ENTSO for decisions of the ENTSO for Electricity. The tasks of the Electricity. The tasks of the ENTSO for Electricity should be ENTSO for Electricity should well-defined and its working be well-defined and its working method should ensure method should ensure efficiency, transparency and the efficiency, transparency and the representative nature of the representative nature of the ENTSO for Electricity. The ENTSO for Electricity. The network codes prepared by the network codes prepared by the ENTSO for Electricity are not ENTSO for Electricity are not intended to replace the necessary intended to replace the national network codes for nonnecessary national network cross-border issues. Given that codes for non-cross-border more effective progress may be issues. Given that more achieved through an approach at effective progress may be regional level, transmission achieved through an approach system operators should set up at regional level, transmission regional structures within the system operators should set up overall cooperation structure, regional structures within the whilst ensuring that results at overall cooperation structure, regional level are compatible whilst ensuring that results at with network codes and nonregional level are compatible binding ten-year network with network codes and nondevelopment plans at Union binding ten-year network level. Member States should development plans at Union promote cooperation and level. Member States should monitor the effectiveness of the promote cooperation and network at regional level. monitor the effectiveness of the Cooperation at regional level network at regional level. should be compatible with Cooperation at regional level progress towards a competitive should be compatible with and efficient internal market in progress towards a competitive electricity. and efficient internal market in electricity.

ANNEX I TREE.2.B EN

• 38. 

  (26) A robust medium to AM 4

  long-term Union level resource (26) A robust methodology for (26) A robust medium to longadequacy

  assessment should be the long-term Union level resource term Union level resource

  carried out by the ENTSO for adequacy assessment should be adequacy assessment should be

  Electricity to provide an carried out by the ENTSO for carried out by the ENTSO for

  objective basis for the Electricity to provide an objective Electricity to provide an assessment of adequacy basis for the assessment of objective basis for the concerns. The resource adequacy concerns at the Union, assessment of adequacy adequacy concern that capacity regional and Member State level concerns. In order to provide

  mechanisms address should be and the biding zone levels. The this objective basis for all based on the EU assessment. resource adequacy concern that types of capacity mechanisms, capacity mechanisms address the resource adequacy should be based on the EU assessment shall reflect in its assessment. Capacity mechanisms scenarios and sensitivities the should be allowed to be introduced different types of capacity only if the Union level resource mechanisms. The resource adequacy assessment, conducted adequacy concern that capacity by the ENTSO-E, has identified mechanisms address should be adequacy concerns or if a positive based on [ ] a well coordinated decision concerning the national and European implementation plan has been resource adequacy assessment.

  received from the Commission. 39. (27) The medium to long-term AM 5 (27) The medium to long-term

  resource adequacy assessment (27) The methodology for the resource adequacy assessment (from 10 year-ahead to yearlong-term resource adequacy (from 10 year-ahead to yearahead) set out in this regulation assessment (from 10 year-ahead to ahead) set out in this regulation has a different purpose than the year-ahead) set out in this has a different purpose than the seasonal outlooks (six months regulation has a different purpose seasonal outlooks (six months ahead) as set out in Article 9 than the seasonal outlooks (six ahead) as set out in Article 9 [Regulation on risk months ahead) as set out in Article [Regulation on risk preparedness preparedness as proposed by 9 [Regulation on risk preparedness as proposed by COM(2016) COM(2016) 862 i]. Medium- to as proposed by COM(2016) 862 i]. 862]. Medium- to long-term long-term assessments are Medium- to long-term assessments assessments are mainly used to mainly used to assess the need are mainly used to identify assess the need for capacity for capacity mechanisms adequacy concerns whereas mechanisms whereas seasonal

ANNEX I TREE.2.B EN

whereas seasonal outlooks are seasonal outlooks are used to alert outlooks are used to alert to risks used to alert to risks that might to short-term risks that might occur that might occur in the following occur in the following six in the following six months that are six months that are likely to months that are likely to result likely to result in a significant result in a significant in a significant deterioration of deterioration of the electricity deterioration of the electricity the electricity supply situation. supply situation. In addition, supply situation. In addition, [ ] In addition, Regional Regional Coordination Centres Regional Security Operational Centres also carry also carry out regional adequacy Coordinators also carry out out regional adequacy assessments as defined in European regional adequacy assessments assessments as defined in legislation on electricity as defined in European European legislation on transmission system operation. legislation on electricity electricity transmission system These are very short-term adequacy transmission system operation. operation. These are very shortassessments (from weak-ahead to These are very short-term term adequacy assessments day-ahead) used in the context of adequacy assessments (from (from weak-ahead to daysystem operation. weak-ahead to day-ahead) used ahead) used in the context of in the context of system system operation. operation.

• 40. 

  (28) Prior to introducing (28) Prior to introducing capacity mechanisms, Member capacity mechanisms, Member States should assess regulatory States should assess regulatory distortions contributing to the distortions contributing to the related resource adequacy related resource adequacy concern. They should be concern. They should be

  required to adopt measures to required to adopt measures to eliminate the identified eliminate the identified distortions including a timeline distortions including a timeline for their implementation. for their implementation. Capacity mechanisms should Capacity mechanisms should only be introduced for the only be introduced for the [ ] residual concerns that cannot be concerns that cannot be addressed through removing addressed through removing such distortions. such distortions.

ANNEX I TREE.2.B EN

• 41. 

  AM 6

  (28a) Member States should introduce capacity mechanisms only as a last resort, where adequacy concerns cannot be addressed through the removal of existing market distortions. Before introducing a capacity mechanism which operates within the electricity market and therefore is market-distortive, Member States should evaluate whether strategic reserves would be sufficient to address their adequacy concerns. Strategic reserves are less distortive since they operate only outside the market and only in rare cases when markets can no longer clear. Strategic reserves can avoid financial consequences to market operators that cannot fulfil their balancing responsibilities and that would consequently bear significant cost.

• 42. 

  (29) Member States intending (29) Member States intending to introduce capacity to introduce capacity

  mechanisms should derive mechanisms should derive resource adequacy targets resource adequacy targets following a transparent and following a transparent and verifiable process. Member verifiable process. Member States should have the freedom States should have the freedom to set their own desired level of to set their own desired level of security of supply. security of supply.

ANNEX I TREE.2.B EN

• 43. 

  (30) Main principles of (30) Main principles of capacity mechanisms should be capacity mechanisms should be laid down, building on the laid down. Capacity mechanisms environmental and energy State already in place should be aid principles and the findings reviewed in light of these of DG Competition's Sector principles. In case the European Inquiry on capacity and the national resource mechanisms. Capacity adequacy assessment reveals the mechanisms already in place absence of any adequacy should be reviewed in light of concern, no new capacity these principles. In case the mechanism should be

  European resource adequacy established and no new capacity assessment reveals the absence commitments under mechanisms of any adequacy concern, no already in place should be made. new capacity mechanism The application of the State aid should be established and no control rules pursuant to Articles new capacity commitments 107 to 109 TFUE must be under mechanisms already in complied with at all times. place should be made. The application of the State aid control rules pursuant to Articles 107 to 109 TFUE must be complied with at all times.

• 44. 

  (31) Detailed rules for AM 7

  facilitating effective cross(31) Detailed rules for facilitating (31) Detailed rules for border participation in capacity effective cross-border participation facilitating effective crossmechanisms other than reserve in capacity mechanisms other than border participation in capacity schemes should be laid down. strategic reserves should be laid mechanisms other than reserve Transmission system operators down in this Regulation. schemes should be laid down. across the borders should Transmission system operators Transmission system operators facilitate interested generators across the borders should facilitate across the borders should wanting to participate in the participation of interested facilitate interested generators capacity mechanisms in other generators in capacity mechanisms wanting to participate in Member States. Therefore, they in other Member States. Therefore, capacity mechanisms in other should calculate capacities up they should calculate capacities up Member States. Therefore, they

  to which cross-border to which cross-border participation should calculate capacities up to which cross-border participation

ANNEX I TREE.2.B EN

participation would be possible, would be possible, enable would be possible, enable enable participation and check participation and check participation and check availabilities. National availabilities. National regulatory availabilities. [ ] Regulatory regulatory authorities should authorities should enforce the authorities should enforce the enforce the cross-border rules cross-border rules in the Member cross-border rules in the in the Member States. States. Member States.

• 45. 

  (32) In view of differences in

  national energy systems and (32) In view of differences in technical limitations of existing national energy systems and electricity networks, the best technical limitations of existing approach to achieving progress electricity networks, the best in market integration will often approach to achieving progress be at a regional level. Regional in market integration will often cooperation of transmission be at a regional level. Regional system operators should thus be cooperation of transmission strengthened. In order to ensure system operators should thus be efficient cooperation, a new strengthened. In order to ensure regulatory framework should efficient cooperation, a new foresee stronger regional regulatory framework should governance and regulatory foresee stronger regional oversight, including by governance and regulatory strengthening the decisionoversight, including by making power of the Agency strengthening the decisionfor cross-border issues. Closer making power of the Agency for cooperation of Member States cross-border issues. Closer could be needed also in crisis cooperation of Member States situations, to increase security could be needed also in crisis of supply and limit market situations, to increase security of

  distortions. supply and limit market distortions.

• 46. 

  (33) The coordination (33) The coordination between Provisionally agreed in TM: between transmission system transmission system operators at (33) The coordination between operators at regional level has regional level has been transmission system operators at regional been formalised with the formalised with the mandatory level has been formalised with the mandatory participation of participation of transmission mandatory participation of transmission transmission system operators system operators in regional system operators in regional security

ANNEX I TREE.2.B EN

in regional security security coordinators, which coordinators. The regional coordination of coordinators, which should be should be [ ] further developed transmission system operators [ ] should complemented by an enhanced and support the increasingly be [ ] further developed with an enhanced institutional framework via the integrated operation of institutional framework via the establishment of regional electricity systems across the establishment of Regional Coordination operational centres. The Union, ensuring their efficient Centres. The establishment of Regional creation of regional operational and secure performance. Coordination Centres should take into centres should take into account account existing or planned regional existing regional coordination coordination initiatives and support the initiatives and support the increasingly integrated operation of increasingly integrated electricity systems across the Union, operation of electricity systems ensuring their efficient and secure across the Union, ensuring their performance. efficient and secure performance. For this reason, it is necessary to ensure that the coordination of transmission system operators through Regional Coordination Centres takes place across the EU. Where transmission system operators of a given region are not coordinated yet by an existing or planned Regional Coordination Centre, the transmission system operator of that region should establish or designate a Regional Coordination Centre.

(in relation to article 32.1 (line 521)) 47. (34) The geographical scope (34) The geographical scope of Provisionally agreed in TM:

of regional operational centres [ ] Regional Security (34) The geographical scope of Regional should allow them to play an Coordinators should allow Coordination Centres should allow them to effective coordination role by them to play an effective play an effective contribution to the optimising the operations of contribution to the coordination of [ ] the operations of transmission system operators coordination of [ ] the transmission system operators over [ ] over larger regions. operations of transmission regions and lead to enhanced system system operators over [ ] security and market efficiency. Regional regions and lead to enhanced Coordination Centres should have the

ANNEX I TREE.2.B EN

system security and market flexibility to carry out the tasks in the efficiency. Regional Security region as best adapted to the nature of the Coordinators should have the individual tasks entrusted to them. flexibility to carry out the tasks in the region as best adapted to the nature of the individual tasks entrusted to them.

• 48. 

  (35) Regional operational AM 8 (35) [ ] Regional Security Provisionally agreed in TM: centres should carry out (35) Regional coordination Coordinators should fulfil (35) Regional Coordination Centres functions where their centres should carry out functions tasks where their regionalisation should perform [ ] tasks where their regionalisation brings added where their regionalisation brings brings added value compared to regionalisation brings added value compared value compared to functions added value compared to functions functions performed at national to [ ] tasks performed at national level. performed at national level. The performed at national level. The level. The [ ] tasks of [ ] The [ ] tasks of Regional Coordination functions of regional functions of regional operational Regional Security Centres should cover the [ ] tasks carried operational centres should centres should cover the functions Coordinators should cover the out by regional security coordinators cover the functions carried out carried out by regional security functions carried out by regional pursuant to the System Operation by regional security coordinators as well as additional security coordinators pursuant Guideline 4 as well as additional system coordinators as well as functions with regional to the System Operation operation, market operation and risk additional system operation, importance. The functions carried Guideline 3 as well as additional preparedness tasks [ ]. The [ ] tasks market operation and risk out by regional coordination system operation, market carried out by Regional Coordination preparedness functions. The centres should exclude real time operation and risk preparedness Centres should exclude real time operation functions carried out by operation of the electricity system. functions. The [ ] tasks carried of the electricity system.

  regional operational centres out by [ ] Regional Security should exclude real time Coordinators should exclude operation of the electricity real time operation of the system. electricity system.

3 Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (OJ L 220, 25.8.2017, p. 1). 4 Commission Regulation (EU) 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (OJ L 220, 25.8.2017, p. 1).

ANNEX I TREE.2.B EN

• 49. 

  AM 9 Provisionally agreed in TM:

  (35 a) In performing their (35 a) In performing their tasks [ ], functions, regional coordination regional coordination centres should [ ] centres shall contribute to the contribute to the achievement of the 2030 achievement of the 2030 and 2050 and 2050 objectives set out in the climate objectives set out in the climate and energy policy framework. and energy policy framework.

• 50. 

  (36) Regional operational (36) [ ] Regional Security Provisionally agreed in TM: centres should primarily act in Coordinators should primarily (36) Regional Coordination Centres the interest of system and act in the interest of system and should primarily act in the interest of system market operation of the region market operation of the region and market operation of the region [ ]. over the interests of any single over the interests of any single Hence, Regional Coordination Centres entity. Hence, regional entity. Hence, [ ] Regional should be entrusted with [ ] the powers operational centres should be Security Coordinators should necessary to coordinate the [ ] actions to entrusted with decision-making be entrusted with [ ] powers be taken by transmission system operators of powers to act and to direct necessary to support [ ] the system operation region for certain actions to be taken by actions to be taken by functions and with an enhanced advisory role transmission system operators transmission system operators of for the remaining functions. of the system operation region the system operation region for

  for certain functions and with certain functions and with an an enhanced advisory role for enhanced advisory role for the the remaining functions. remaining functions.

50a. Provisionally agreed in TM:

(36a) The human, technical, physical and financial resources of Regional Coordination Centres should not go beyond what is strictly necessary for the fulfilment of its tasks.

• 51. 

  (37) ENTSO for Electricity (37) ENTSO for Electricity Provisionally agreed in TM: should ensure that the actions of should ensure that the actions of (37) ENTSO for Electricity should ensure regional operational centres are [ ] Regional Security that the [ ] activities of Regional coordinated across the regions' Coordinators are coordinated Coordination Centres are coordinated boundaries. across the regions' boundaries. across the regions' boundaries.

ANNEX I TREE.2.B EN

• 52. 

  (38) In order to raise (38) In order to raise efficiencies in the electricity efficiencies in the electricity distribution networks in the distribution networks in the Union and ensure close Union and ensure close cooperation with transmission cooperation with transmission system operators and ENTSO system operators and ENTSO for electricity, a European for electricity, a European entity entity of distribution system of distribution system operators operators in the Union ("EU in the Union ("EU DSO entity") DSO entity") should be should be established. The tasks established. The tasks of the EU of the EU DSO entity should be DSO entity should be wellwell-defined and its working defined and its working method method should ensure should ensure efficiency, efficiency, transparency and transparency and representativeness amongst the representativeness amongst the Union distribution system Union distribution system operators. The EU DSO Entity operators. The EU DSO Entity should closely cooperate with should closely cooperate with ENTSO for Electricity on the ENTSO for Electricity on the preparation and implementation preparation and implementation of the network codes where of the network codes where applicable and should work on applicable and should work on providing guidance on the providing guidance on the integration inter alia of integration inter alia of distributed generation and distributed generation and storage in distribution networks storage in distribution networks or other areas which relate to the or other areas which relate to management of distribution the management of distribution networks. The EU DSO shall networks. also take due consideration of the specificities inherent in distribution systems connected downstream with electricity systems on islands which are not connected with other electricity systems via interconnectors.

ANNEX I TREE.2.B EN

• 53. 

  (39) Increased cooperation (39) Increased cooperation and and coordination among coordination among

  transmission system operators transmission system operators is is required to create network required to create network codes codes for providing and for providing and managing managing effective and effective and transparent access transparent access to the to the transmission networks transmission networks across across borders, and to ensure borders, and to ensure coordinated and sufficiently coordinated and sufficiently forward-looking planning and forward-looking planning and sound technical evolution of the sound technical evolution of the transmission system in the transmission system in the Union, including the creation of Union , including the creation interconnection capacities, with of interconnection capacities, due regard to the environment. with due regard to the Those network codes should be environment. Those network in line with framework codes should be in line with guidelines, which are nonframework guidelines, which binding in nature (framework are non-binding in nature guidelines) and which are (framework guidelines) and developed by the Agency. The which are developed by the Agency should have a role in Agency . The Agency should reviewing, based on matters of have a role in reviewing, based fact, draft network codes, on matters of fact, draft including their compliance with network codes, including their the framework guidelines, and it compliance with the framework should be enabled to recommend guidelines, and it should be them for adoption by the enabled to recommend them for Commission. The Agency adoption by the Commission. should assess proposed The Agency should assess amendments to the network proposed amendments to the codes and it should be enabled network codes and it should be to recommend them for adoption enabled to recommend them for by the Commission. adoption by the Commission. Transmission system operators

ANNEX I TREE.2.B EN

Transmission system operators should operate their networks in should operate their networks in accordance with those network accordance with those network codes. codes.

• 54. 

  (40) To ensure the smooth (40) To ensure the smooth functioning of the internal functioning of the internal

  market in electricity, provision market in electricity, provision should be made for procedures should be made for procedures which allow the adoption of which allow the adoption of decisions and guidelines with decisions and guidelines with regard, inter alia, to tarification regard, inter alia, to tarification and capacity allocation by the and capacity allocation by the Commission whilst ensuring the Commission whilst ensuring the involvement of Member States’ involvement of Member States’ regulatory authorities in that regulatory authorities in that process, where appropriate process, where appropriate through their European through their European association. Regulatory association. Regulatory authorities, together with other authorities, together with other relevant authorities in the relevant authorities in the Member States, have an Member States, have an important role to play in important role to play in contributing to the proper contributing to the proper functioning of the internal functioning of the internal market in electricity. market in electricity.

• 55. 

  (41) All market participants (41) All market participants have an interest in the work have an interest in the work

  expected of the ENTSO for expected of the ENTSO for Electricity. An effective Electricity. An effective consultation process is therefore consultation process is therefore essential and existing structures essential and existing structures that are set up to facilitate and that are set up to facilitate and streamline the consultation streamline the consultation process, such as via national process, such as via national regulators or the Agency, regulators or the Agency, should should play an important role. play an important role.

ANNEX I TREE.2.B EN

• 56. 

  (42) In order to ensure greater (42) In order to ensure greater transparency regarding the transparency regarding the entire entire electricity transmission electricity transmission network network in the Union, the in the Union, the ENTSO for

  ENTSO for Electricity should Electricity should draw up, draw up, publish and regularly publish and regularly update a update a non-binding Unionnon-binding Union-wide tenwide ten-year network year network development plan development plan (Union-wide (Union-wide network network development plan). development plan). Viable Viable electricity transmission electricity transmission networks networks and necessary and necessary regional regional interconnections, interconnections, relevant from a relevant from a commercial or commercial or security of supply security of supply point of point of view, should be view, should be included in that included in that network network development plan. development plan

• 57. 

  (43) Experience with the

  development and adoption of (43) Experience with the network codes has shown that it development and adoption of is useful to streamline the network codes has shown that it development procedure by is useful to streamline the clarifying that the Agency has development procedure by the right to revise draft clarifying that the Agency has electricity network codes before the right to [ ] approve draft submitting them to the electricity network codes before

  Commission. submitting them to the Commission.

ANNEX I TREE.2.B EN

• 58. 

  (44) Investments in major new (44) Investments in major new Council proposal for an addition: infrastructure should be infrastructure should be

  promoted strongly while promoted strongly while (44) Investments in major new ensuring the proper functioning ensuring the proper functioning infrastructure should be promoted strongly

  of the internal market in of the internal market in while ensuring the proper functioning of the electricity. In order to enhance electricity. In order to enhance internal market in electricity. In order to

  the positive effect of exempted the positive effect of exempted

  direct current interconnectors direct current interconnectors on enhance the positive effect of exempted on competition and security of competition and security of direct current interconnectors on competition supply, market interest during supply, market interest during and security of supply, market interest during the project-planning phase the project-planning phase the project-planning phase should be tested should be tested and should be tested and congestionand congestion-management rules should be congestion-management rules management rules should be adopted. Where direct current should be adopted. Where adopted. Where direct current interconnectors are located in the territory of direct current interconnectors interconnectors are located in more than one Member State, the Agency are located in the territory of the territory of more than one should handle as a last resort the exemption more than one Member State, Member State, the Agency request in order to take better account of its the Agency should handle as a should handle as a last resort the cross-border implications and to facilitate its last resort the exemption exemption request in order to administrative handling. Moreover, given the request in order to take better take better account of its crossexceptional risk profile of constructing those account of its cross-border border implications and to exempt major infrastructure projects, implications and to facilitate its facilitate its administrative undertakings with supply and production administrative handling. handling. Moreover, given the interests should be able to benefit from a Moreover, given the exceptional risk profile of temporary derogation from the full exceptional risk profile of constructing those exempt major unbundling rules for the projects concerned. constructing those exempt infrastructure projects, Exemptions granted under Regulation (EC) major infrastructure projects, undertakings with supply and No 1228/2003 7 continue to apply until the undertakings with supply and production interests should be scheduled expiry date as decided in the production interests should be able to benefit from a temporary granted exemption decision. Offshore

  able to benefit from a derogation from the full

  temporary derogation from the unbundling rules for the projects electricity infrastructure with dual full unbundling rules for the concerned. Exemptions granted functionality (so-called ‘offshore hybrid

  projects concerned. Exemptions under Regulation (EC) No assets’) combining transport of offshore wind energy to shore and interconnectors,

ANNEX I TREE.2.B EN

granted under Regulation (EC) 1228/2003 i 6 continue to apply should also be eligible for exemption such No 1228/2003 5 continue to until the scheduled expiry date as under the rules applicable to new direct apply until the scheduled expiry as decided in the granted current interconnectors. Where necessary, date as decided in the granted exemption decision. the regulatory framework should duly exemption decision. consider the specific situation of these

assets to overcome barriers to the realisation of societally cost-efficient offshore hybrid assets.

• 59. 

  (45) To enhance trust in the (45) To enhance trust in the market, its participants need to market, its participants need to be sure that those engaging in be sure that those engaging in abusive behaviour can be abusive behaviour can be subject subject to effective, to effective, proportionate and proportionate and dissuasive dissuasive penalties. The

  penalties. The competent competent authorities should be authorities should be given the given the competence to competence to investigate investigate effectively effectively allegations of allegations of market abuse. To market abuse. To that end, it is that end, it is necessary that necessary that competent competent authorities have authorities have access to data access to data that provides that provides information on information on operational operational decisions made by decisions made by supply supply undertakings. In the undertakings. In the electricity electricity market, many market, many relevant decisions relevant decisions are made by are made by the generators, the generators, which should which should keep information keep information in relation in relation thereto available to

7 Regulation (EC) No 1228/2003 i of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity (OJ L 176, 15.7.2003, p. 1).

5 Regulation (EC) No 1228/2003 i of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity (OJ L 176, 15.7.2003, p. 1).

6 Regulation (EC) No 1228/2003 i of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity (OJ L 176, 15.7.2003, p. 1).

ANNEX I TREE.2.B EN

thereto available to and easily and easily accessible by the accessible by the competent competent authorities for a fixed authorities for a fixed period of period of time. The competent time. The competent authorities authorities should, furthermore, should, furthermore, regularly regularly monitor the monitor the compliance of the compliance of the transmission transmission system operators system operators with the rules. with the rules. Small generators Small generators with no real with no real ability to distort the ability to distort the market market should be exempt from should be exempt from that that obligation. obligation.

• 60. 

  (46) The Member States and (46) The Member States and the competent national the competent national

  authorities should be required authorities should be required to to provide relevant information provide relevant information to to the Commission. Such the Commission. Such information should be treated information should be treated confidentially by the confidentially by the Commission. Where necessary, Commission. Where necessary, the Commission should have an the Commission should have an opportunity to request relevant opportunity to request relevant information directly from information directly from undertakings concerned, undertakings concerned, provided that the competent provided that the competent national authorities are national authorities are informed. informed.

ANNEX I TREE.2.B EN

• 61. 

  (47) Member States should (47) Member States should lay lay down rules on penalties down rules on penalties

  applicable to infringements of applicable to infringements of the provisions of this the provisions of this Regulation Regulation and ensure that they and ensure that they are are implemented. Those implemented. Those penalties penalties must be effective, must be effective, proportionate proportionate and dissuasive. and dissuasive.

• 62. 

  (48) Member States and the (48) Member States, [ ] the

  Energy Community Contracting Energy Community Contracting Parties should closely cooperate Parties and other third on all matters concerning the countries which are applying development of an integrated this Regulation or are part of electricity trading region and the synchronous grid of should take no measures that Continental Europe should endanger the further integration closely cooperate on all matters of electricity markets or concerning the development of security of supply of Member an integrated electricity trading States and Contracting Parties. region and should take no measures that endanger the further integration of electricity markets or security of supply of Member States and Contracting Parties.

ANNEX I TREE.2.B EN

• 63. 

  (49) In order to ensure the (49) At the time of adoption minimum degree of of Regulation 714/2009 i, only harmonization required for few rules for the internal

  effective market functioning, electricity market existed at the power to adopt acts in EU level. Since then, the EU

  accordance with Article 290 of

  the Treaty on the Functioning internal market has become of the European Union should more complex due to the be delegated to the Commission fundamental change the in respect of areas which are markets are undergoing in fundamental for market particular regarding integration. These should deployment of variable include the geographical area renewable electricity for regional cooperation of production. Therefore the transmission system operators, Network Codes and Guidelines the amount of compensation have become extensively payments between transmission comprehensive addressing system operators, the adoption both technical and general and amendment of network issues. In order to ensure the codes and guidelines, as well as minimum degree of the application of exemption harmonization required for provisions for new effective market functioning, the interconnectors. It is of power to adopt and amend particular importance that the implementing acts in Commission carry out accordance with Article 291 of appropriate consultations the Treaty on the Functioning of during its preparatory work, the European Union should be [ including at expert level, and ] conferred to the Commission that those consultations be in respect of non-essential

  conducted in accordance with

  the principles laid down in the elements of certain specific Interinstitutional Agreement on areas which are fundamental for Better Law-Making of 13 April market integration. These should 2016 . In particular, to ensure include [ ] the adoption and equal participation in the amendment of network codes preparation of delegated acts, and guidelines, as well as the the European Parliament and application of exemption

ANNEX I TREE.2.B EN

the Council receive all provisions for new documents at the same time as interconnectors. It is of

Member States' experts, and particular importance that the their experts systematically Commission carry out

have access to meetings of appropriate consultations during Commission expert groups its preparatory work, including

dealing with the preparation of

delegated acts. at expert level, and that those consultations be conducted in

accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 8 . In particular, to ensure equal participation in the preparation of [ ] implementing acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of [ ] implementing acts.

8 OJ L 123, 12.5.2016, p. 1.

ANNEX I TREE.2.B EN

• 64. 

  (49a) The empowerment of the Commission to amend network codes and guidelines is limited until 31 December 2027. This interim period shall provide sufficient time for the Commission to carry out a review of the existing network codes and guidelines and if needed propose legislative acts of the Union.

• 65. 

  (50) Since the objective of (50) Since the objective of this this Regulation, namely the Regulation, namely the

  provision of a harmonised provision of a harmonised framework for cross-border framework for cross-border exchanges of electricity, cannot exchanges of electricity, cannot be sufficiently achieved by the be sufficiently achieved by the Member States and can Member States and can therefore therefore be better achieved at be better achieved at Union Union level, the Union may level, the Union may adopt adopt measures, in accordance measures, in accordance with the with the principle of principle of subsidiarity, as set subsidiarity, as set out in out in Article 5 of the Treaty on Article 5 of the Treaty on European Union . In accordance European Union. In accordance with the principle of with the principle of proportionality, as set out in that proportionality, as set out in Article, this Regulation does not that Article, this Regulation go beyond what is necessary in does not go beyond what is order to achieve that objective. necessary in order to achieve that objective.

  HAVE ADOPTED THIS REGULATION:

ANNEX I TREE.2.B EN

• 66. 

  (51) Market rules should enable the integration of

  electricity from renewable energy sources and provide incentives for increasing energy efficiency.

• 67. 

  (52) For reasons of coherence and legal certainty, nothing in this Regulation should prevent the application of the

  derogations emerging from [Article 66] of [Electricity Directive].

• 68. 

  (53) With regard to balancing markets, efficient and non-distortive price formation in the procurement of balancing capacity and balancing energy requires that balancing capacity does not set the price for balancing energy. This is without prejudice for the dispatching systems using an integrated scheduling process according to the Commission Regulation (EU) 2017/XXXX [Balancing]. HAVE ADOPTED THIS REGULATION:

ANNEX I TREE.2.B EN

• 69. 

  Chapter I Subject matter, scope and definitions

• 70. 

  Article 1 Subject-matter and scope

• 71. 

  This Regulation aims at: AM 10 (a) setting the basis for an This Regulation aims at: Provisionally agreed:

  (a) setting the basis for an efficient achievement of the

  efficient achievement of the objectives of the European Energy (a) setting the basis for an

  (a) setting the basis for an efficient

  objectives of the European Union and in particular the climate efficient achievement of the

  achievement of the objectives of the

  Energy Union and in particular and energy framework for 2030 30 objectives of the European

  European Energy Union and in particular the climate and energy framework for 2030 11 by

  the climate and energy by enabling market signals to be Energy Union and in particular enabling market signals to be delivered for framework for 2030 9 by delivered for increased flexibility, the climate and energy 10 increased efficiency, higher share of enabling market signals to be efficiency, decarbonisation, framework for 2030 by renewable energy sources, security of delivered for increased innovation and a higher share of enabling market signals to be supply, flexibility, sustainability, flexibility, decarbonisation and renewable energy sources. delivered for increased security decarbonisation and innovation; innovation; __________________ of supply, flexibility, 30 COM/2014/015 final. sustainability, decarbonisation

  and innovation;

• 72. 

  (b) setting fundamental AM 11

  principles for well-functioning, (b) setting fundamental (b) setting fundamental

  Provisionally agreed:

  integrated electricity markets, principles for well-functioning principles for well-functioning, which allow non-discriminatory cross-border, integrated and liquid integrated electricity markets,

  (b) setting fundamental principles for wellmarket

  access for all resource electricity markets, which allow which allow non-discriminatory

  functioning, integrated electricity markets,

  providers and electricity non-discriminatory market access market access for all resource

  which allow non-discriminatory market

  customers, empower for all resource providers and providers and electricity

  access for all resource providers and

  consumers, enable demand electricity customers, empower customers, empower consumers,

  electricity customers, empower consumers,

  response and energy efficiency, consumers, enable competitiveness enable demand response and

enable competitiveness on the global market

facilitate aggregation of on the global market, demand energy efficiency, facilitate

as well as demand response, energy storage

distributed demand and supply, response, energy storage and aggregation of distributed

and energy efficiency, facilitate aggregation

and contribute to the energy efficiency, facilitate demand and supply, [ ] and

of distributed demand and supply, [ ] and enabling market and sectoral integration

decarbonisation of the economy aggregation of distributed demand enable market integration and and market-based remuneration of electricity

9 COM/2014/015 final.

10 COM/2014/015 final.

11 COM/2014/015 final.

ANNEX I TREE.2.B EN

by enabling market integration and supply, and contribute to the market-based remuneration of generated from renewable sources; and market-based remuneration decarbonisation of the economy by electricity generated from of electricity generated from enabling market and sectoral renewable sources; renewable sources; integration and market-based remuneration of electricity generated from renewable sources;

• 73. 

  (c) setting fair rules for (c) setting fair rules for cross No change cross-border exchanges in border exchanges in electricity,

  electricity, thus enhancing thus enhancing competition (c) setting fair rules for cross-border competition within the internal within the internal market in exchanges in electricity, thus enhancing market in electricity, taking into electricity, taking into account competition within the internal market in account the particular the particular characteristics of electricity, taking into account the particular characteristics of national and national and regional markets. characteristics of national and regional regional markets. This includes This includes the establishment markets. This includes the establishment of a the establishment of a of a compensation mechanism compensation mechanism for cross-border compensation mechanism for for cross-border flows of flows of electricity and the setting of cross-border flows of electricity electricity and the setting of harmonised principles on cross-border and the setting of harmonised harmonised principles on crosstransmission charges and the allocation of principles on cross-border border transmission charges and available capacities of interconnections transmission charges and the the allocation of available between national transmission systems; allocation of available capacities of interconnections capacities of interconnections between national transmission between national transmission systems; systems;

• 74. 

  (d) facilitating the AM 12 (d) facilitating the emergence Provisionally agreed: emergence of a well(d) facilitating the emergence of of a well-functioning and

  functioning and transparent a well-functioning, liquid and transparent wholesale market (d) facilitating the emergence of a wellwholesale market with a high transparent whole sale market with a high level of security of functioning and transparent whole sale level of security of supply in contributing to a high level of supply in electricity. It provides market contributing to a high level of electricity. It provides for security of supply in electricity. It for mechanisms to harmonise security of supply in electricity. It provides mechanisms to harmonise the provides for mechanisms to the rules for cross-border for mechanisms to harmonise the rules for rules for cross-border harmonise the rules for crossexchanges in electricity cross-border exchanges in electricity. exchanges in electricity. border exchanges in electricity.

ANNEX I TREE.2.B EN

• 75. 

  Article 2 No indications means that the given Definitions definition was not yet discussed with the EP

• 76. 

  1. For the purpose of this 1. For the purpose of this Council compromise proposal: (seen by

  Regulation, the definitions Regulation, the definitions Coreper): contained in Article 2 of contained in Article 2 of 1. For the purpose of this Regulation, the Directive [recast of Directive Directive [recast of Directive definitions contained in Article 2 of 2009/72/EC as proposed by 2009/72/EC as proposed by Directive [recast of Directive 2009/72/EC i as COM(2016) 864 i/2], in Article 2 COM(2016) 864 i/2], in Article 2 proposed by COM(2016) 864 i/2], in Article 2 of Regulation (EU) No of Regulation (EU) No of Regulation (EU) No 1227/2011 i of the 1227/2011 of the European 1227/2011 of the European European Parliament and of the Council

16 , in

Parliament and of the Parliament and of the Council 14 , Article 2 of Commission Regulation (EU) Council 12 , in Article 2 of in Article 2 of Commission No 543/2013

17 and in Article 2 of [Recast

Commission Regulation (EU) Regulation (EU) No 543/2013 i 15 Renewable Energies Directive] apply with

No 543/2013

13 and in Article 2 and in Article 2 of [Recast the exception of the definition of

of [Recast Renewable Energies Renewable Energies Directive] ‘interconnector’ which shall be replaced

Directive] apply. apply [with the exception of the by the following: ‘interconnector’ means a

definition of ‘interconnector’ transmission line which crosses or spans a

which shall be replaced by the border between Member States and which

following:— ‘interconnector’ connects the national transmission

means a transmission line which systems of the Member States.

12 Regulation (EU) No 1227/2011 i of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, p. 1).

13 Commission Regulation (EU) No 543/2013 i of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to

Regulation (EC) No 714/2009 i of the European Parliament and of the Council (OJ L 163, 15.6.2013, p. 1). 14 Regulation (EU) No 1227/2011 i of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency

(OJ L 326, 8.12.2011, p. 1). 15 Commission Regulation (EU) No 543/2013 i of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to

Regulation (EC) No 714/2009 i of the European Parliament and of the Council (OJ L 163, 15.6.2013, p. 1). 16 Regulation (EU) No 1227/2011 i of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency

(OJ L 326, 8.12.2011, p. 1). 17 Commission Regulation (EU) No 543/2013 i of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to

Regulation (EC) No 714/2009 i of the European Parliament and of the Council (OJ L 163, 15.6.2013, p. 1).

ANNEX I TREE.2.B EN

crosses or spans a border between Member States and which connects the national transmission systems of the Member States.]

• 77. 

  2. In addition, the 2. In addition, the following following definitions shall definitions shall apply:

  apply: 78. (a) ‘regulatory authorities’ (a) ‘regulatory authorities’

  means the regulatory authorities means the regulatory authorities referred to in Article 57(1) of referred to in Article 57(1) of [recast of Directive 2009/72/EC i [recast of Directive 2009/72/EC i as proposed by COM(2016) as proposed by COM(2016) 864 i/2] ; 864/2] ;

• 79. 

  (b) ‘cross-border flow’ (b) ‘cross-border flow’ means means a physical flow of a physical flow of electricity on electricity on a transmission a transmission network of a

  network of a Member State that Member State that results from results from the impact of the the impact of the activity of activity of producers and/or producers and/or customers customers outside that Member outside that Member State on its State on its transmission transmission network; network;

• 80. 

  (c) ‘congestion’ means a AM 13 (c) ‘congestion’ means a situation in which all requests (c) ‘congestion’ means a situation in which all requests from market participants to situation in which all requests from from market participants to trade trade between two bidding market participants to trade [ ] between [ ] network areas zones cannot be accommodated cannot be accommodated because cannot be accommodated

  because they would they would significantly affect the because they would significantly significantly affect the physical physical flows on network affect the physical flows on flows on network elements elements which cannot network elements which cannot which cannot accommodate accommodate those flows ; accommodate those flows; those flows ;

ANNEX I TREE.2.B EN

• 81. 

  (d) ‘new interconnector’ (d) ‘new interconnector’ means an interconnector not means an interconnector not completed by 4 August 2003; completed by 4 August 2003;

• 82. 

  (e) 'structural congestion' AM 14 (e) 'structural congestion' means congestion in the (e) 'structural congestion' means means congestion in the

  transmission system that is congestion in the transmission transmission system that can be predictable, is geographically system that is predictable, [ ] unambiguously defined, is stable over time, and is geographically stable over time, predictable, is geographically frequently reoccurring under and frequently reoccurring under stable over time, and is normal power system normal power system conditions; frequently reoccurring under conditions; normal power system conditions;

• 83. 

  (f) 'market operator' means (f) 'market operator' means an entity that provides a service an entity that provides a service whereby the offers to sell whereby the offers to sell

  electricity are matched with electricity are matched with bids bids to buy electricity; to buy electricity;

• 84. 

  (g) 'nominated electricity (g) 'nominated electricity market operator' or 'NEMO’ market operator' or 'NEMO’ means a market operator means a market operator

  designated by the competent designated by the competent authority to perform tasks authority to perform tasks related to single day-ahead or related to single day-ahead or single intraday coupling; single intraday coupling;

• 85. 

  (h) 'value of lost load' means (h) 'value of lost load' means an estimation in €/MWh, of the an estimation in €/MWh, of the maximum electricity price that maximum electricity price that customers are willing to pay to customers are willing to pay to avoid an outage; avoid an outage;

ANNEX I TREE.2.B EN

• 86. 

  (i) 'balancing' means all (i) 'balancing' means all actions and processes, in all actions and processes, in all timelines, through which timelines, through which

  transmission system operators transmission system operators ensure, in a continuous way, ensure, in a continuous way, maintenance of the system maintenance of the system frequency within a predefined frequency within a predefined stability range and compliance stability range and compliance with the amount of reserves with the amount of reserves needed with respect to the needed with respect to the required quality; required quality;

• 87. 

  (j) 'balancing energy' means (j) 'balancing energy' means energy used by transmission energy used by transmission

  system operators to perform system operators to perform balancing; balancing;

• 88. 

  (k) 'balancing service (k) 'balancing service provider' means a market provider' means a market participant providing either or participant providing either or both balancing energy and both balancing energy and balancing capacity to balancing capacity to

  transmission system operators; transmission system operators; 89. (l) 'balancing capacity' (l) 'balancing capacity' means

  means a volume of capacity that a volume of capacity that a a balancing service provider has balancing service provider has agreed to hold to and in respect agreed to hold to and in respect to which the balancing service to which the balancing service provider has agreed to submit provider has agreed to submit bids for a corresponding bids for a corresponding volume volume of balancing energy to of balancing energy to the the transmission system transmission system operator for operator for the duration of the the duration of the contract; contract;

ANNEX I TREE.2.B EN

• 90. 

  (m) 'balance responsible (m) 'balance responsible party' party' means a market means a market participant or its participant or its chosen chosen representative

  representative responsible for responsible for its imbalances in its imbalances in the electricity the electricity market; market;

• 91. 

  (n) 'imbalance settlement (n) 'imbalance settlement period' means the time unit for period' means the time unit for which the imbalance of the which the imbalance of the balance responsible parties is balance responsible parties is calculated; calculated;

• 92. 

  (o) 'imbalance price' means (o) 'imbalance price' means the price, be it positive, zero or the price, be it positive, zero or negative, in each imbalance negative, in each imbalance

  settlement period for an settlement period for an imbalance in each direction; imbalance in each direction;

• 93. 

  (p) 'imbalance price area' (p) 'imbalance price area' means the area in which an means the area in which an imbalance price is calculated; imbalance price is calculated;

• 94. 

  (q) 'prequalification process' (q) 'prequalification process' means the process to verify the means the process to verify the compliance of a provider of compliance of a provider of

  balancing capacity with the balancing capacity with the requirements set by the requirements set by the transmission system operators; transmission system operators;

• 95. 

  (r) 'reserve capacity' means (r) 'reserve capacity' means the amount of frequency the amount of frequency

  containment reserves, containment reserves, frequency frequency restoration reserves restoration reserves or or replacement reserves that replacement reserves that needs needs to be available to the to be available to the transmission system operator; transmission system operator;

ANNEX I TREE.2.B EN

• 96. 

  (s) 'priority dispatch' means (s) 'priority dispatch' means the dispatch of power plants on in self-dispatch model the

  the basis of criteria different dispatch of power plants on the from the economic order of bids basis of criteria different from and, in central dispatch the economic order of bids and, systems, network constraints, in central dispatch model also giving priority to the dispatch from network constraints, of particular generation giving priority to the dispatch of technologies; particular generation technologies;

• 97. 

  (t) 'capacity calculation (t) 'capacity calculation region' means the geographic region' means the geographic area in which the coordinated area in which the coordinated capacity calculation is applied; capacity calculation is applied;

• 98. 

  (u) 'capacity mechanism' AM 15 (u) 'capacity mechanism' Council compromise proposal: means an administrative (u) capacity mechanism' means means an administrative

  measure to ensure the temporary administrative measures measure or a market based (u) 'capacity mechanism' means a [ ] achievement of the desired taken by Member States to fill the measure to ensure the measure to ensure the achievement of the level of security of supply by expected resource adequacy gap achievement of the desired level desired level of [ ] resource adequacy by remunerating resources for their for electricity supply to match of [ ] resource adequacy by remunerating resources for their availability availability not including electricity demand by offering remunerating resources for their not including measures relating to ancillary

  measures relating to ancillary additional payments to capacity availability not including services and congestion management; services; providers that operate in the measures relating to ancillary electricity market, in addition to services and congestion income obtained by selling management ; electricity on the market in return for the availability of existing capacity or investment in new capacity to guarantee the necessary level of security of supply;

ANNEX I TREE.2.B EN

• 99. 

  (v) 'strategic reserve' means AM 16 [ ] a capacity mechanism in which (v) 'strategic reserve' means a

  resources are only dispatched in capacity mechanism in which case day-ahead and intraday resources are held outside the markets have failed to clear, electricity market and are only transmission system operators dispatched in case day-ahead and have exhausted their balancing intraday markets have failed to resources to establish an clear, transmission system equilibrium between demand operators have exhausted their and supply, and imbalances in balancing resources to establish an the market during periods equilibrium between demand and where the reserves were supply, and imbalances in the dispatched are settled at the market during periods where the value of lost load; reserves were dispatched are settled at least at technical price limits or at the value of lost load;

• 100. 

  (w) ‘high-efficiency (w) ‘high-efficiency cogeneration’ means cogeneration’ means

  cogeneration meeting the cogeneration meeting the criteria criteria laid down in Annex II laid down in Annex II of of Directive 2012/27 i/EU of the Directive 2012/27 i/EU of the European Parliament and of the European Parliament and of the Council 18 ; Council 19 ;

18 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives

2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1). 19 Directive 2012/27 i/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives

2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC i and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

ANNEX I TREE.2.B EN

• 101. 

  (x) ‘demonstration project’ (x) ‘demonstration project’ means a project demonstrating means a project demonstrating a a technology as a first of its technology as a first of its kind kind in the Union and in the Union and representing a representing a significant significant innovation that goes innovation that goes well well beyond the state of the art. beyond the state of the art.

• 102. 

  (y) 'market participant' means a natural or legal

  person, who is generating, buying or selling electricity, demand response or storage services, including the placing of orders to trade, in one or more electricity markets including balancing energy markets.

• 103. 

  (z) 'redispatching' means a Council compromise proposal: measure, including (z) 'redispatching' means a measure, curtailment, activated by one including curtailment, activated by one or or several system operators by several system operators by altering the altering the generation and/or generation and/or load pattern in order to load pattern in order to change physical flows in the electricity change physical flows in the transmission system and relieve a physical transmission system and congestion or otherwise ensure system relieve a physical congestion. security.

ANNEX I TREE.2.B EN

• 104. 

  (aa) 'countertrading' means a cross zonal exchange

  initiated by system operators between two bidding zones to relieve physical congestion.

• 105. 

  (bb) 'power generating facility' means a facility that converts primary energy into electrical energy and which consists of one or more power generating modules connected to a network.

• 106. 

  (cc) 'central dispatching model' means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power

  generating facilities and demand facilities, in reference to dispatchable facilities, are determined by a TSO within the integrated scheduling process.

• 107. 

  (dd) 'standard balancing product' means a harmonised balancing product defined by all TSOs for the exchange of balancing services as set out in the Balancing Guideline

  adopted on the basis of Article 18 of the Regulation 714/2009 i.

ANNEX I TREE.2.B EN

• 108. 

  (ee) 'specific balancing product' means a product different from a standard product, the requirements for which are set out in the Balancing Guideline adopted on the basis of Article 18 of the Regulation 714/2009 i.

• 109. 

  (ff) 'delegated operator' Provisionally agreed: means an entity to whom (ff) 'delegated operator' means an entity specific tasks or obligations to whom specific tasks or obligations entrusted to a transmission entrusted to a transmission system system operator or nominated operator or nominated electricity market electricity market operator operator under this Regulation or any under this Regulation or any other Regulation, Directive, Network other Regulation, Directive, Code or Guideline have been delegated by Network Code or Guideline that transmission system operator or have been delegated by that nominated electricity market operator or transmission system operator have been assigned by a Member State or or nominated electricity Regulatory Authority; market operator or have been

  assigned by a Member State or Regulatory Authority;

ANNEX I TREE.2.B EN

• 110. 

  Chapter II General rules for the electricity market

• 111. 

  Article 3 Principles regarding the operation of electricity markets

• 112. 

  1. Member States, national AM 17 1. Member States, national Provisionally agreed: regulatory authorities, 1. Member States, national regulatory authorities,

  transmission system operators, regulatory authorities, transmission transmission system operators, 1. Member States, national regulatory distribution system operators, system operators, distribution distribution system operators, [ authorities, transmission system operators, and market operators shall system operators, market operators ] market operators and distribution system operators, [ ] market ensure that electricity markets and third parties to whom delegated operators shall operators and delegated operators shall are operated in accordance with responsibilities have been ensure that electricity markets ensure that electricity markets are operated the following principles: delegated or assigned, shall ensure are operated in accordance with in accordance with the following principles: that electricity markets are operated the following principles: in accordance with the following principles:

• 113. 

  (a) prices shall be formed (a) prices shall be formed No change: based on demand and supply; based on demand and supply. (a) prices shall be formed based on demand and supply.

• 114. 

  (b) actions which prevent AM 18 (b) actions which prevent Provisionally agreed: price formation on the basis of (b) actions which prevent price price formation on the basis of (b) market rules shall encourage free demand and supply or formation on the basis of demand demand and supply or constitute price formation and avoid actions which constitute a disincentive to the and supply shall be avoided; a disincentive to the prevent price formation on the basis of development of more flexible development of more flexible demand and supply [ ]; generation, low carbon generation, low carbon

  generation, or more flexible generation, or more flexible demand shall be avoided; demand shall be avoided;

• 115. 

  AM 19 Provisionally agreed:

  Article 3 – paragraph 1 – point b (ba) market rules shall facilitate the a (new) development of more flexible generation, (ba) the development of more sustainable low carbon generation, and flexible generation, sustainable more flexible demand [ ]; low carbon generation, and more flexible demand shall be promoted;

ANNEX I TREE.2.B EN

• 116. 

  (c) customers shall be AM 20 (c) customers shall be Provisionally agreed: enabled to benefit from market (c) customers shall be enabled enabled to benefit from market (c) customers shall be enabled to benefit opportunities and increased to benefit from market opportunities and increased from market opportunities and increased competition on retail markets; opportunities and increased competition on retail markets; competition on retail markets and be competition on retail markets and empowered to act as participant in the be empowered to act as participant energy market and the energy transition; in the energy market and the

  energy transition; 117. (d) market participation of (d) market participation of No change:

  consumers and small businesses consumers and small businesses shall be enabled by aggregation shall be enabled by aggregation (d) market participation of consumers and of generation from multiple of generation from multiple small businesses shall be enabled by generation facilities or load generation facilities or load from aggregation of generation from multiple from multiple demand facilities multiple demand facilities to generation facilities or load from multiple to provide joint offers on the provide joint offers on the demand facilities to provide joint offers on electricity market and be jointly electricity market and be jointly the electricity market and be jointly operated operated in the electricity operated in the electricity in the electricity system, subject to system, subject to compliance system, subject to compliance compliance with EU treaty rules on with EU treaty rules on with EU treaty rules on competition; competition; competition;

• 118. 

  (e) market rules shall support AM 21 (e) market rules shall [ ] Provisionally agreed: the decarbonisation of the (e) market rules shall support accompany the decarbonisation (e) market rules shall [ ] enable the economy by enabling the the decarbonisation of the of the economy e.g. by enabling decarbonisation of the electricity system and integration of electricity from electricity system and thus the the integration of electricity thus the economy e.g. by enabling the renewable energy sources and economy by enabling the from renewable energy sources integration of electricity from renewable providing incentives for energy integration of electricity from and providing incentives for energy sources and providing incentives for efficiency; renewable energy sources energy efficiency; energy efficiency;

  including energy storage and providing incentives for energy efficiency;

ANNEX I TREE.2.B EN

• 119. 

  (f) market rules shall deliver AM 22 (f) market rules shall deliver Provisionally agreed: appropriate investment (f) market rules shall encourage appropriate investment f) market rules shall deliver appropriate incentives for generation, free price formation to deliver incentives for generation, investment incentives for generation, in storage, energy efficiency and appropriate investment incentives storage, energy efficiency and particular long-term investments for a demand response to meet for generation, in particular longdemand response to meet market decarbonised and sustainable electricity market needs and thus ensure term investments for a needs and thus ensure security of system, energy storage, energy efficiency, security of supply; decarbonised and sustainable supply; demand response to meet market needs and electricity system storage, energy facilitate fair competition and thus ensure efficiency, demand response and security of supply;

  facilitate fair competition and thus ensure security of supply;

• 120. 

  (g) barriers to cross-border AM 23 (g) barriers to cross-border Provisionally agreed: electricity flows and cross(g) barriers to cross-border electricity flows between (g) barriers to cross-border electricity border transactions on electricity flows and cross-border bidding zones or Member flows between bidding zones or Member electricity markets and related transactions on electricity markets States and cross-border States and cross-border transactions on services markets shall be and related services markets shall transactions on electricity electricity markets and related services avoided; be removed; markets and related services markets shall be avoided progressively markets shall be avoided; removed;

• 121. 

  (h) market rules shall AM 24 (h) market rules shall provide Provisionally agreed: provide for regional (h) market rules shall provide for regional cooperation where (h) market rules shall provide for regional cooperation where effective; for strong regional cooperation effective; cooperation where effective; where effective; [strong - to be reflected in recitals]

• 122. 

  (i) all generation, storage (i) [ ] safe and sustainable Provisionally agreed: and demand resources shall generation, storage and demand (i) [ ] safe and sustainable generation, participate on equal footing in [ ] shall participate on equal storage and demand [ ] shall participate on the market; footing in the market, under the equal footing in the market, under the requirements provided for in requirements provided for in the EU law; the EU law;

ANNEX I TREE.2.B EN

• 123. 

  (j) all producers shall be (j) all producers shall be No change: directly or indirectly directly or indirectly responsible (j) all producers shall be directly or responsible for selling the for selling the electricity they indirectly responsible for selling the electricity they generate; generate; electricity they generate;

• 124. 

  AM 25 To be discussed

  Article 3 – paragraph 1 – point j [ ] a (new) (ja) electricity generation operators shall bear full financial and legal responsibility deriving from their assets;

• 125. 

  (k) market rules shall allow AM 26 [ ] Provisionally agreed in TM: for progress in research and (k) market rules shall allow for

  development to be realized and progress in research and (k) market rules shall allow for [ ] the used to the benefit of society; development into sustainable, development of demonstration projects secure and low-carbon energy into sustainable, secure and low-carbon sources, technologies or systems to energy sources, technologies or systems to be realized and used to the benefit be realized and used to the benefit of society; of society;

• 126. 

  (l) market rules shall enable AM 27 (l) market rules shall enable Provisionally agreed: the efficient dispatch of (l) market rules shall enable the the efficient dispatch of (l) market rules shall enable the efficient generation assets and demand efficient dispatch of generation generation assets and demand dispatch of generation assets, energy storage response; assets, storage and demand response; and demand response; response;

ANNEX I TREE.2.B EN

• 127. 

  (m) market rules shall allow AM 28 (m) market rules shall allow Provisionally agreed: for entry and exit of electricity (m) market rules shall allow for for entry and exit of electricity (m) market rules shall allow for entry and generation and electricity entry and exit of electricity generation and electricity supply exit of electricity generation, energy storage supply undertakings based on generation, energy storage and undertakings based on their and electricity supply undertakings based on their assessment of the electricity supply undertakings assessment of the economic and their assessment of the economic and economic and financial viability based on their assessment of the financial viability of their financial viability of their operations; of their operations; economic and financial viability of operations;

  their operations; effective competition and price formation;

• 128. 

  (n) long-term hedging AM 29 (n) [ ] in order to allow Provisionally agreed: opportunities, which allow (n) long-term hedging market participants [ ] to be (n) [ ] in order to allow market market participants to hedge opportunities, which allow market protected against price volatility participants [ ] to be protected against against price volatility risks on participants to hedge against price risks on a market basis, and [ ] price volatility risks on a market basis, and [ a market basis, and eliminate volatility risks on a market basis, mitigate uncertainty on future ] mitigate uncertainty on future returns on uncertainty on future returns on and mitigate uncertainty on future returns on investment, longinvestment, long-term hedging investment shall be tradable on returns on investment shall be term hedging opportunities opportunities shall be tradable on exchanges exchanges in a transparent tradable on exchanges in a shall be tradable on exchanges in in a transparent manner and long-term manner subject to compliance transparent manner subject to a transparent manner and longsupply contracts shall be negotiable over with EU treaty rules on compliance with EU treaty rules on term supply contracts shall be the counter, subject to compliance with EU competition. competition while current negotiable over the counter, treaty rules on competition. products offered on exchanges subject to compliance with EU

  should be further expanded and treaty rules on competition. Market rules shall facilitate trade of promoted at Union level; products [ ] across the Union. Regulatory changes shall take into account effects on both short-term Regulatory changes shall take into account and long-term forward and effects on both short-term and long-term futures markets and products. forward and futures markets and products.

• 129. 

  (o) market participants Provisionally agreed: have a right to obtain access to (o) market participants have a right to the transmission and obtain access to the transmission and distribution networks on distribution networks on objective, objective, transparent and transparent and non-discriminatory non-discriminatory terms. terms.

ANNEX I TREE.2.B EN

• 130. 

  AM 30

  Article 3 a (new)

• 131. 

  Just transition Just transition

• 132. 

  The Commission shall support Council compromise proposal:

  Member States that put in place a The Commission shall support Member

  national strategy for the States that put in place a national strategy progressive reduction of installed for the progressive reduction of installed

  coal and other solid fossil fuel coal and other solid fossil fuel generation

  generation and mining capacity

  through all available means, and mining capacity through all available including targeted financial means, including targeted financial support support to enable a “just to enable a “just transition” in regions

  transition” in regions affected by affected by structural change. The structural change. The Commission shall assist Member States to Commission shall assist Member address the social and economic skills and States to address the social, skills industrial impacts of the clean energy

  and industrial impacts of the clean transition.

  energy transition.

• 133. 

  The Commission shall work in Council compromise proposal:

  close partnership with the actors The Commission shall work in close of coal and carbon-intensive partnership with the actors of coal and regions, provide guidance, in carbon-intensive regions, provide guidance, particular for the access to and in particular for facilitate the access to and

  use of available funds and

  programmes, and shall encourage use of available funds and programmes, the exchange of good practices, and shall encourage the exchange of good including discussions on practices, including discussions on industrial roadmaps and reindustrial roadmaps and re-skilling needs.

  skilling needs.

ANNEX I TREE.2.B EN

• 134. 

  Article 4 Article 4 Balancing responsibility Balance[ ] responsibility

• 135. 

  1. All market participants 1. All market participants [ ] Council compromise proposal: shall aim for system balance shall be [ ] responsible for the

  and shall be financially imbalances they cause in the 1. All market participants [ ] shall be [ ] responsible for imbalances they system. To that end, the responsible for the imbalances they cause in cause in the system. They shall market participants [ ] shall the system. To that end, the market either be balance responsible either be balance responsible participants [ ] shall either be balance parties or delegate their parties or contractually delegate responsible parties or contractually delegate responsibility to a balance their responsibility to a balance their responsibility to a balance responsible responsible party of their responsible party of their choice. party of their choice. In accordance with choice. In accordance with the the Balancing Guideline adopted on the Balancing Guideline adopted basis of Article 17 and 18 of the on the basis of Article 17 and Regulation 714/2009 i, Each balance 18 of the Regulation 714/2009 i, responsible party shall be financially each balance responsible party responsible for its imbalances and strive shall be financially responsible to be balanced or help the power system to for its imbalances and strive to be balanced.

  be balanced or help the power system to be balanced.

• 136. 

  2. Member States may 2. Member States may Council compromise proposal: provide for derogation from provide [ ] derogations from [ 2. Member States may provide [ ] balance responsibility in respect ] balancing responsibility only derogations from [ ] balancing

  of: in the following cases: responsibility only in the following cases:

• 137. 

  (a) demonstration projects; (a) demonstration projects for Council compromise proposal: emerging technologies as (a) demonstration projects for emerging defined in Article 66 and 67 of technologies as defined in Article 66 and Regulation (EU) 2016/631 20 ; 67 of Regulation (EU) 2016/631 21 ;for innovative technologies, subject to

20 Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (OJ L 112,

27.4.2016, p. 1).

21 Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (OJ L 112,

27.4.2016, p. 1).

ANNEX I TREE.2.B EN

approval by the regulatory authority which shall be limited to the time and extent the derogation is necessary for achieving the demonstration purposes.

• 138. 

  (b) generating installations (b) power generating facility Council compromise proposal: using renewable energy sources [ ], using renewable energy (b) power generating facilities using or high-efficiency cogeneration sources or high-efficiency renewable energy sources or high-efficiency with an installed electricity cogeneration with a total cogeneration with an installed electricity capacity of less than 500 kW; installed electricity capacity of capacity of less than [350] kW; less than [ ] 250 kW;

• 139. 

  (c) installations benefitting (c) Without prejudice to Council compromise proposal: from support approved by the contracts concluded before (c) installations benefitting from support Commission under Union State [entry into force of the approved by the Commission under Union aid rules pursuant to Articles legislation], and installations State aid rules pursuant to Articles 107 to 107 to 109 TFEU, and benefitting from support 109 TFEU, and commissioned prior to [OP: commissioned prior to [OP: approved by the Commission entry into force]. Member States may, [ ] entry into force]. Member under Union State aid rules without prejudice to Articles 107 and 108 States may, subject to Union pursuant to Articles 107 to 109 TFEU, incentivise market participants which state aid rules, incentivize TFEU, and commissioned prior are fully or partly exempted from balancing market participants which are to [OP: entry into force]. responsibility to accept full balancing fully or partly exempted from Member States may, [ ] responsibility[ ].

  balancing responsibility to without prejudice to Articles accept full balancing 107 and 108 TFEU, incentivise responsibility against market participants which are appropriate compensation. fully or partly exempted from balancing responsibility to accept full balancing responsibility[ ].

• 140. 

  AM 31 2a. When a Member State Council compromise proposal:

  Article 4 – paragraph 2 a (new) chooses to provide a 2a. When a Member State chooses to 2a. When a Member State derogation according to provide a derogation in accordance with chooses to provide a derogation in Article 4 (2), they need to Article 4(2), it shall ensure that the accordance with Article 4(2), it ensure that the financial financial responsibilities for imbalances are shall ensure that the financial responsibilities of imbalances fulfilled by another party. responsibilities for imbalances are are fulfilled by another party. fulfilled by another party.

ANNEX I TREE.2.B EN

• 141. 

  3. From 1 January 2026, Council compromise proposal:

  point (b) of paragraph 2 shall 3. For power generating 3. [ ] For power generating facilities

  apply only to generating facilities commissioned after 1 commissioned after 1 January 2026, point

  installations using renewable January 2026, point (b) of

  energy sources or highparagraph 2 shall apply only to

  (b) of paragraph 2 shall apply only to

  efficiency cogeneration with an renewable energy sources or generating installations using renewable installed electricity capacity of high-efficiency cogeneration energy sources or high-efficiency

  less than 250 kW. with an total installed electricity cogeneration with an installed electricity capacity of less than [ ] 150 kW. capacity of less than [200] kW.

  Member States may apply a lower threshold.

• 142. 

  Article 5 Balancing market

• 143. 

  1. All market participants AM 32 [ ] Provisionally agreed in TM: shall have access to the 1. All market participants, [ ]

  balancing market, be it including those providing individually or through electricity generated from variable aggregation. Balancing market renewable sources and demand rules and products shall respect side response and storage services the need to accommodate shall have full access to the increasing shares of variable balancing market, be it individually generation as well as increased or through aggregation. Balancing demand responsiveness and the market rules and products shall advent of new technologies. respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies.

ANNEX I TREE.2.B EN

• 144. 

  2. Balancing markets shall AM 33 2. Balancing markets, Provisionally agreed in TM to accept be organised in such a way as to 2. Balancing markets shall be including prequalification Council compromise:

ensure effective nonorganised in such a way as to processes, shall be organised in 2. Balancing markets, including

discrimination between market ensure effective non-discrimination such a way as to: prequalification processes, shall be

participants taking account of between market participants. All (a) ensure effective nonorganised in such a way as to:

the different technical generation, including from discrimination between market (a) ensure effective non-discrimination

capability of generation from variable renewable sources, participants taking account of between market participants taking account

variable renewable sources and demand side response and storage the different technical [ ] needs of the different technical [ ] needs of the

demand side response and shall be enabled to participate on of the power system, a power system and the different technical

storage. equal footing in balancing transparent and capabilities of generation sources, energy

markets, taking account of the technologically neutral storage and demand response;

different technical capability. definition of services and their

transparent, market based

procurement,

144a. Provisionally agreed in TM: (new

compromise):

(aa) ensure a transparent and

technologically neutral definition of

services and their transparent, market

based procurement,

• 145. 

  (b) ensure access to all Provisionally agreed in TM to accept

prequalified market Council compromise:

participants, be it individual Ref. to prequalification remains in 5(2) and

or through aggregation; 5(8).

(b) ensure non-discriminatory access to all

[ ] market participants, including

electricity generated from variable

renewable sources, demand response and

energy storage, be it individual or through

aggregation;

• 146. 

  (c) respect the need to Provisionally agreed in TM accommodate increasing (c) respect the need to accommodate shares of variable generation increasing shares of variable generation as

ANNEX I TREE.2.B EN

as well as increased demand well as increased demand responsiveness responsiveness and the advent and the advent of new technologies. of new technologies.

• 147. 

  3. Balancing energy shall be AM 34 [ ] Provisionally agreed in TM to accept procured separately from 3. Balancing energy shall be Council compromise:

  balancing capacity. procured separately from balancing This corresponds to 5(5a) of the GA; see Procurement processes shall be capacity. The price of balancing also article 16(6) of Reg. 2017/2195 transparent while at the same energy shall not be pre-determined (Balancing Guideline). Exemptions see new time respecting confidentiality. in a contract of balancing except para. 5(11). where an exemption is applied in 3. The price of balancing energy shall accordance with Article 16(6) of not be pre-determined [ ] in a contract for the Commission Regulation (EU) balancing capacity. 2017/2195 1a . Procurement processes shall be transparent while Procurement processes shall be at the same time respecting transparent while at the same time confidentiality. respecting confidentiality in accordance _______________ with paragraph 4 of Article 40 of the 1a Commission Regulation (EU) [recast Electricity Directive]. 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (OJ L 312, 28.11.2017 p. 6).

• 148. 

  4. Balancing markets No change:

  shall ensure operational security 4. Balancing markets shall

  whilst allowing for maximum ensure operational security

  • 4. 

    Balancing markets shall ensure

  use and efficient allocation of whilst allowing for maximum

  operational security whilst allowing for

  cross-zonal capacity across use and efficient allocation of

  maximum use and efficient allocation of

  timeframes in accordance with cross-zonal capacity across

  cross-zonal capacity across timeframes in

  Article 15. timeframes in accordance with

  accordance with Article 15.

  Article 15.

• 149. 

  5. Marginal pricing shall be AM 35 5. [ ] For standard and Provisionally agreed in TM: (revised

  used for the settlement of 5. The settlement of balancing specific balancing products, Council compromise): ref. is replaced by

  balancing energy. Market energy shall be based on marginal the settlement of balancing

  participants shall be allowed to pricing. On balancing markets, energy shall be based on content of article 30(5) of the Balancing bid as close to real time as market participants shall be marginal pricing, pay-as Guideline. possible, and at least after the allowed to bid as close to real time cleared, without prejudice to 5. [ ] The settlement of balancing energy for

ANNEX I TREE.2.B EN

intraday cross-zonal gate as possible, and balancing energy the Balancing Guideline standard and specific balancing products closure time determined in gate closure times shall not be adopted on the basis of Article shall be based on marginal pricing, pay-asaccordance with Article 59 of before intraday cross-zonal gate 18 of the Regulation 714/2009 i. cleared, unless all National Regulatory Commission Regulation (EU) closure time determined in Market participants shall be Authorities have approved an alternative 2015/1222 22 . accordance with Article 59 of allowed to bid as close to real pricing method on the basis of joint Commission Regulation (EU) time as possible, and [ ] proposal by all transmission system 2015/1222 34 balancing energy gate closure operators following an analysis __________________ times shall not be before the demonstrating that an alternative pricing 34 Commission Regulation (EU) intraday cross-zonal gate closure method is more efficient. 2015/1222 of 24 July 2015 time determined in accordance establishing a guideline on capacity with Article 59 of Commission Market participants shall be allowed to bid as allocation and congestion Regulation (EU) 2015/1222 23 . close to real time as possible, and [ ] management (OJ L 197, 25.7.2015, Transmission system operator balancing energy gate closure times shall p. 24). applying a central dispatching not be before the intraday cross-zonal gate model may define additional closure time [ ]. rules in accordance with the Balancing Guideline adopted Transmission system operator applying a on the basis of Article 18 of the central dispatching model may define Regulation 714/2009 i. additional rules in accordance with [ ] the Commission Regulation (EU) 2017/2195.

• 150. 

  5a. The price of balancing Provisionally agreed in TM to delete here. energy shall not be pre[ ]

  determined in a contract for balancing capacity. An Paragraph 5a is moved to paragraph 3. exemption for specific balancing products may be applied in accordance with the Balancing Guideline adopted on the basis of Article 18 of the Regulation 714/2009 i. Procurement processes shall

22 Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).

23 Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).

ANNEX I TREE.2.B EN

be transparent while at the same time respecting confidentiality in accordance with paragraph 4 of Article 40 of the [recast Electricity Directive].

ANNEX I TREE.2.B EN

• 151. 

  6. The imbalances shall be 6. The imbalances shall be Provisionally agreed in TM for Council settled at a price that reflects settled at a price that reflects the compromise proposal:

  the real time value of energy. real time value of energy and Accept to revert to COM original proposal: shall be calculated in 6. The imbalances shall be settled at a

  accordance with the Balancing price that reflects the real time value of Guideline adopted on the basis energy. of Article 18 of the Regulation 714/2009.

• 152. 

  6a. The imbalance price Provisionally agreed in TM for Council area shall be equal to a compromise proposal:

  bidding zone, except in case of Accept to modify GA and merge with Am 64. a central dispatching model For the part on imbalance and scheduling and in accordance with areas see Article 54(2) of Reg. 2017/2195 Balancing Guideline adopted (Balancing Guideline). on the basis of Article 18 of the 6a. Each imbalance price area shall be Regulation 714/2009 i. The equal to a bidding zone, except in case of a imbalance area shall be equal central dispatching model where an to the scheduling area, except imbalance price area may constitute a in case of a central dispatching part of a bidding zone. [ ] model where imbalance area may constitute a part of a scheduling area in accordance with the Balancing Guideline adopted on the basis of Article 18 of the Regulation 714/2009 i.

ANNEX I TREE.2.B EN

• 153. 

  7. The sizing of reserve AM 36 7. The [ ] dimensioning of

capacity shall be performed at 7. The sizing of reserve reserve capacity shall be Provisionally agreed to align this paragraph

regional level in accordance capacity shall be performed at performed [ ] by the with agreement on RCCs:

with point 7 of Annex I. regional level in accordance with transmission system operators 7. The [ ] dimensioning of reserve Regional operational centres point 7 of Annex I. Regional in accordance with the System capacity shall be performed [ ] by the shall support transmission coordination centres shall support Operation Guideline adopted transmission system operators [ ] and system operators in determining transmission system operators in on the basis of Article 18 of the may be facilitated on a regional level.

the amount of balancing determining the amount of Regulation 714/2009 i and may capacity that needs to be balancing capacity that needs to be be facilitated on a regional procured in accordance with procured in accordance with point level. point 8 of Annex I. 8 of Annex I.

• 154. 

  8. The procurement of AM 37 8. The procurement of

  balancing capacity shall be 8. The procurement of balancing capacity shall be Provisionally agreed in TM to align this facilitated on a regional level in balancing capacity shall be performed by the transmission paragraph with agreement on RCCs and add accordance with point 8 of performed by the transmission system operators, facilitated on additional section.

  Annex I. The procurement shall system operators. The procurement a regional level in accordance

  be based on a primary market shall be based on a primary market with [ ] Balancing Guideline 8. The procurement of balancing and organised in such a way as and organised in such a way as to adopted on the basis of Article capacity shall be performed by the to be non-discriminatory be non-discriminatory between 18 of the Regulation 714/2009 i. transmission system operators and may be between market participants in market participants in the The procurement of balancing facilitated on a regional level [ ]. The the prequalification process prequalification process, whether capacity shall be market-based procurement of balancing capacity shall be individually or through market participants participate [ ] and organised in such a way market-based [ ] and organised in such a aggregation. individually or through aggregation as to be non-discriminatory way as to be non-discriminatory between subject to technical constraints between market participants in market participants in the prequalification

  inherent in managing networks. the prequalification process process, whether market participants participate individually or through

  The reservation of cross-zonal individually or through aggregation in accordance with paragraph capacity for the exchange of aggregation in accordance with 4 of Article 40 of the [recast Electricity balancing capacity shall be limited paragraph 4 of Article 40 of Directive].

  to 5% of the available capacity for the [recast Electricity the exchange of energy of the Directive]. Procurement of balancing capacity shall previous relevant calendar year be based on a primary market unless and between the respective bidding to the extent that the national regulatory zones. authority has approved use of other forms of market-based procurement on the grounds of lack of competition in the

ANNEX I TREE.2.B EN

market for balancing services. Derogations from use of primary markets shall be reviewed every 3 years.

• 155. 

  9. The procurement of AM 38 9. The procurement of Provisionally agreed in TM: upward balancing capacity and 9. The procurement of upward upward balancing capacity and Ref. is replaced by content of article 32(3) of downward balancing capacity balancing capacity and downward downward balancing capacity the Balancing Guideline.

  shall be carried out separately. balancing capacity shall be carried shall be carried out separately, [ The contracting shall be out separately. Procurement of ] in accordance with the 9. The procurement of upward balancing performed for not longer than balancing capacity shall be Balancing Guideline adopted capacity and downward balancing capacity one day before the provision of performed for not longer than one on the basis of Article 18 of the shall be carried out separately, [ ] in the balancing capacity and the day before the provision of the Regulation 714/2009 i. To the accordance with the Balancing Guideline contracting period shall have a balancing capacity and the extent possible, and at least for adopted on the basis of Article 18 of the maximum of one day. contracting period shall have a a minimum of 40 % of the Regulation 714/2009 i. To the extent maximum duration of one day. standard products used for possible, and at least for a minimum of 40 balancing capacity, the % of the standard products used for contracting of balancing balancing capacity unless the national capacity shall be performed for regulatory authority approves an not longer than one day before exemption from this principle on the basis the provision of the balancing of the transmission system operator capacity and the contracting demonstrating that this would result in period shall have a maximum of higher economic efficiency. The contracting one day. The contracting of the of balancing capacity shall be performed remaining part of the for not longer than one day before the balancing capacity shall be provision of the balancing capacity and the performed for a maximum of contracting period shall have a maximum of one month in advance of the one day, unless and to the extent the provision of balancing national regulatory authority has capacity and the contracting approved earlier contracting and/or period of the remaining part of longer contracting periods to ensure balancing capacity shall have a security of supply or improve economic maximum period of one efficiency. At least for a minimum of 40 % month. of the standard products and a minimum of 30 % of all products used for balancing capacity, the contracting of the balancing

ANNEX I TREE.2.B EN

capacity shall be performed for not longer than one day before the provision of the balancing capacity and the contracting period shall have a maximum of one day. The contracting of the remaining part of the balancing capacity shall be performed for a maximum of one month in advance of the provision of balancing capacity and the contracting period of the remaining part of balancing capacity shall have a maximum period of one month.

• 156. 

  9a. On the request of the Provisionally agreed in TM: transmission system operator

  the regulatory authority may 9. On the request of the transmission extend the contracting period system operator the regulatory authority of the remaining part of may extend the contracting period of the balancing capacity referred to remaining part of balancing capacity in paragraph 9 to a maximum referred to in paragraph 9 to a maximum period of twelve months period of twelve months provided that provided that such decision such decision will be limited in time, and will be limited in time, and the the positive effects in terms of lowering of positive effects in terms of costs for consumers will exceed the lowering of costs for negative impacts on the market. After 31 consumers will exceed the December 2025, contracting periods shall negative impacts on the not extend to periods longer than six market. The request shall months. The request shall include: include:

• 157. 

  (a) specification of the time Provisionally agreed in TM (GA): period during which the (a) specification of the time period during exemption would apply; which the exemption would apply;

• 158. 

  (b) specification of the volume Provisionally agreed in TM (GA): of balancing capacity for (b) specification of the volume of which the exemption would balancing capacity for which the apply; exemption would apply;

ANNEX I TREE.2.B EN

• 159. 

  (c) analysis of the impact of Provisionally agreed in TM (GA): such an exemption on the (c) analysis of the impact of such an participation of balancing exemption on the participation of resources; and balancing resources; and

• 160. 

  (d) justification for the Provisionally agreed in TM (GA): exemption demonstrating that (d) justification for the exemption such an exemption would lead demonstrating that such an exemption to lower costs for consumers. would lead to lower costs for consumers.

160a. Provisionally agreed in TM:

9b. By 1 January 202X [to be aligned with the general review clause in order for report to be available in time], national regulatory authorities shall report to the Agency and the Commission on the share of contract durations and procurement periods longer than one day

• 161. 

  10. Transmission system AM 39 10. Transmission system Provisionally agreed in TM to Council operators shall publish close to 10. Transmission system operators shall publish, [ ] as compromise proposal:

  real-time information on the operators or third parties to whom soon as possible but not later current balancing state of their these responsibilities have been than 30 minutes after real-time, 10. Transmission system operators or [ ] control areas, the imbalance delegated by the relevant the information on the current [ delegated operators shall publish, [ ] as price and the balancing energy transmission system operator, ] system balance of their [ ] soon as possible but not later than 30 price. Member State or regulatory scheduling areas [ ] and the minutes after real-time, the information on authority shall publish close to estimated [ ] balancing energy the current [ ] system balance of their [ ] real-time information on the prices. To the extent that scheduling areas, [ ] the estimated current balancing state of their responsibility for provision of imbalance prices [ ] and the estimated [ ] control areas, the estimated this information has been balancing energy prices. imbalance price and the estimated assigned or delegated to a balancing energy price. third party, in accordance with the Balancing Guideline adopted on the basis of Article 18 of the Regulation 714/2009Article, those parties will be responsible for meeting the requirements of this Article.

ANNEX I TREE.2.B EN

• 162. 

  AM 40 Provisionally agreed in TM to delete.

  Article 5 – paragraph 10 a (new) 10a. Member States shall report [ ] on the functioning and transparency of, and access to, in particular by small providers, the balancing markets, in particular for the purpose of Article 4, through the reporting procedure on the internal energy market laid down in Article 21 of Regulation .../... [Governance of the Energy Union].

• 163. 

  Provisionally agreed in TM:

  Proposal in reference to paragraphs 3, 5 and

  5a of the GA and Articles 25-26 of Reg.

  2017/2195 (Balancing Guideline).

  Exemptions for specific products (to avoid

  copying the entire Balancing Guideline) are

  bundled here.

  • 11. 

    Transmission system operators may,

  where standard balancing products are

  not sufficient to ensure operational

  security or some balancing resources

  cannot participate in the balancing

  market through standard balancing

  products, propose exemptions from

  paragraphs 3 and 5 for specific balancing

  products which are activated locally

  without exchanging them with other

  transmission system operators.

  Proposals for exemptions shall include a description of measures proposed to

ANNEX I TREE.2.B EN

minimise the use of specific products subject to economic efficiency, a demonstration that the specific products do not create significant inefficiencies and distortions in the balancing market within and outside the scheduling area as well as, where applicable, the rules and information for the process for converting the balancing energy bids from specific products into balancing energy bids from standard products.

Exemptions for specific balancing products shall be subject to approval by the national regulatory authority.

ANNEX I TREE.2.B EN

• 164. 

  Article 6 Day-ahead and intraday markets

• 165. 

  1. Transmission system 1. Transmission system Provisionally agreed: operators and nominated operators and nominated

  electricity market operators electricity market operators shall 1. Transmission system operators and shall jointly organise the jointly organise the management nominated electricity market operators shall management of the integrated of the integrated day-ahead and jointly organise the management of the day-ahead and intraday markets intraday markets based on integrated day-ahead and intraday markets based on market coupling as set market coupling as set out in based on market coupling as set out in out in Regulation (EU) Regulation (EU) 2015/1222. Regulation (EU) 2015/1222. Transmission 2015/1222. Transmission Transmission system operators system operators and nominated electricity system operators and nominated and nominated electricity market market operators shall cooperate at Union electricity market operators operators shall cooperate at level or, where more appropriate, on a shall cooperate at Union level Union level or, where more regional basis in order to maximise the or, where more appropriate, on appropriate, on a regional basis efficiency and effectiveness of Union a regional basis in order to in order to maximise the electricity day-ahead and intraday trading. maximise the efficiency and efficiency and effectiveness of The obligation to cooperate shall be without effectiveness of Union Union electricity day-ahead and prejudice to the application of the provisions electricity day-ahead and intraday trading. The obligation of Union competition law. In their functions intraday trading. The obligation to cooperate shall be without relating to electricity trading, transmission to cooperate shall be without prejudice to the application of system operators and nominated electricity prejudice to the application of the provisions of Union market operators shall be subject to the provisions of Union competition law. In their regulatory oversight by regulators and the competition law. In their functions relating to electricity Agency pursuant to Article 59 of [recast of functions relating to electricity trading, transmission system Directive 2009/72/EC i as proposed by trading, transmission system operators and nominated COM(2016) 864 i/2] and Articles 4 and 9 of operators and nominated market electricity market operators [recast of Regulation (EC) No 713/2009 i as operators shall be subject to shall be subject to regulatory proposed by COM(2016) 863 i/2]. regulatory oversight by oversight by regulators and the regulators and the Agency Agency pursuant to Article 59 of pursuant to Article 59 of [recast [recast of Directive 2009/72/EC i of Directive 2009/72/EC i as as proposed by COM(2016) proposed by COM(2016) 864 i/2] and Articles 4 and 9 of 864/2] and Articles 4 and 9 of [recast of Regulation (EC) No [recast of Regulation (EC) No 713/2009 i as proposed by 713/2009 as proposed by COM(2016) 863 i/2]. COM(2016) 863 i/2].

ANNEX I TREE.2.B EN

• 166. 

  2. Day-ahead and intraday 2. Day-ahead and intraday No change: markets shall markets shall 2. Day-ahead and intraday markets shall

• 167. 

  (a) be organised in such a AM 41 (a) be organised in such a Provisionally agreed: way as to be non(a) be [ ] non-discriminatory; way as to be non-discriminatory; (a) be organised in such a way as to be discriminatory; non-discriminatory;

• 168. 

  (b) maximise the ability of (b) maximise the ability of all Provisionally agreed: market participants to market participants to [ ] (b) maximise the ability of all market contribute to avoid system manage their imbalances; participants to [ ] manage [ ] imbalances; imbalances;

• 169. 

  (c) maximise the (c) maximise the Provisionally agreed: opportunities for market opportunities for all market (c) maximise the opportunities for all participants to participate in participants to participate in market participants to participate in cross-[ ] cross-border trade as close as cross-[ ] zonal trade as close as zonal trade as close as possible to real time possible to real time across all possible to real time across all across all bidding zones; bidding zones; bidding zones;

• 170. 

  (d) provide prices that reflect (d) provide prices that reflect Provisionally agreed: market fundamentals and that market fundamentals, including (d) provide prices that reflect market market participants can rely on the real time value of energy, fundamentals, including the real time value when agreeing on longer-term and that market participants can of energy, and that market participants can hedging products; rely on when agreeing on rely on when agreeing on longer-term longer-term hedging products; hedging products;

• 171. 

  (e) ensure operational (e) ensure operational No change security whilst allowing for security whilst allowing for (e) ensure operational security whilst maximum use of transmission maximum use of transmission allowing for maximum use of transmission capacity; capacity; capacity;

• 172. 

  (f) be transparent while at (f) be transparent while at the Provisionally agreed: the same time respecting same time respecting (f) be transparent while at the same time confidentiality; confidentiality and ensuring respecting confidentiality and ensuring trading occurs in an trading occurs in an anonymous manner; anonymous manner; and; and;

ANNEX I TREE.2.B EN

• 173. 

  (g) ensure trades are [ ] Provisionally agreed: [ ] anonymous; and

• 174. 

  (h) make no distinction (h) make no distinction No change between trades made within a between trades made within a (h) make no distinction between trades bidding zone and across bidding zone and across bidding made within a bidding zone and across bidding zones. zones. bidding zones.

174a. Provisionally agreed to add additional point (i) in exchange for Council deletion of

paragraph 3 below (line 175). (i) be organised in such a way as to ensure that all markets participants are able to access the market individually or through aggregation.

• 175. 

  3. Market operators shall be AM 42 [ ] Provisionally agreed (deletion): free to develop products and 3. Market operators shall be [ ]

  trading opportunities that suit free to develop products and market participants' demand trading opportunities that suit In addition provisionally agreed to add new and needs and ensure that all market participants' demand and point (i) to Article 6(2) above (line 174a). market participants are able to needs and ensure that all market access the market individually participants are able to access the or through aggregation. They market individually or through shall respect the need to aggregation. They shall respect the accommodate increasing shares need to accommodate increasing of variable generation as well as shares of variable generation and increased demand energy storage as well as increased responsiveness and the advent demand responsiveness and the of new technologies. advent of new technologies

ANNEX I TREE.2.B EN

• 176. 

  Article 7 Trade on day-ahead and intraday markets

• 177. 

  1. Market operators shall AM 43 1. Nominated electricity Provisionally agreed in TM: allow market participants to 1. Market operators shall allow market operators shall allow

  trade energy as close to real market participants to trade energy market participants to trade 1. Nominated electricity market time as possible and at least up as close to real time as possible and energy as close to real time as operators shall allow market participants to to the intraday cross-zonal gate at least up to 15 minutes before possible and at least up to the trade energy as close to real time as possible closure time determined in real time across all bidding zones. intraday cross-zonal gate closure and at least up to the intraday cross-zonal accordance with Article 59 of time determined in accordance gate closure time [ ] the capacity allocation Regulation (EU) 2015/1222. with [ ] the capacity allocation and congestion management guideline and congestion management adopted on the basis of Article 18 of guideline adopted on the basis Regulation (EU) 714/2009 i. of Article 18 of Regulation (EU) 714/2009. Provisionally agreed in TM to insert review for gate closure time in general review clause.

• 178. 

  2. Market operators shall AM 44 2. Nominated electricity Provisionally agreed in TM: provide market participants 2. Market operators shall market operators shall provide

  with the opportunity to trade in provide market participants with market participants with the 2. Nominated electricity market energy in time intervals at least the opportunity to trade in energy opportunity to trade in energy in operators shall provide market participants as short as the imbalance in national and cross-border time intervals at least as short as with the opportunity to trade in energy in settlement period in both daymarkets in time intervals at least as the imbalance settlement period time intervals at least as short as the ahead and intraday markets. short as the imbalance settlement in both day-ahead and intraday imbalance settlement period in both dayperiod in both day-ahead and markets in accordance with ahead and intraday markets in accordance intraday markets. the balancing guideline with the balancing guideline adopted on adopted on the basis of Article the basis of Article 18 of Regulation (EU) 18 of Regulation (EU) 714/2009. 714/2009.

ANNEX I TREE.2.B EN

• 179. 

  3. Market operators shall AM 45 3. Nominated electricity Provisionally agreed in TM: provide products for trading in 3. Market operators shall market operators shall provide

  day-ahead and intraday markets provide products for trading in dayproducts for trading in day 3. Nominated electricity market which are sufficiently small in ahead and intraday markets which ahead and intraday markets operators shall provide products for trading size, with minimum bid sizes of are sufficiently small in size, with which are sufficiently small in in day-ahead and intraday markets which are 1 Megawatt or less, to allow for minimum bid sizes of 500 size, with minimum bid sizes of sufficiently small in size, with minimum bid the effective participation of Kilowatt, to allow for the effective 1 Megawatt [ ], to allow for the sizes of 500 Kilowatt or less, to allow for demand-side response, energy participation of demand-side effective participation of the effective participation of demand-side storage and small-scale response, energy storage and smalldemand-side response, energy response, energy storage and small-scale renewables. scale renewables including directly storage and small-scale renewables including directly by customers. by customers. renewables in accordance to [ ] the methodologies developed in the capacity allocation and congestion management guideline adopted on the basis of Article 18 of Regulation (EU) 714/2009.

• 180. 

  4. By 1 January 2025, the AM 46 Provisionally agreed in TM:

  imbalance settlement period 4. By 1 January 2021, the 4. By 1 January 2021, the shall be 15 minutes in all imbalance settlement period shall imbalance settlement period

  • 4. 

    By 1 January 2021, the imbalance

  control areas. be 15 minutes in all control areas. shall be 15 minutes in all [ ]

settlement period shall be 15 minutes in all [

scheduling areas unless ] scheduling areas unless regulatory regulatory authorities have authorities have granted a derogation or granted a derogation or an an exemption in accordance with the exemption in accordance with balancing guideline adopted on the basis the balancing guideline of Article 18 of the Regulation 714/2009 i. adopted on the basis of Article Derogations and exemptions may only be

18 of the Regulation 714/2009 i. granted until 1 January 2025. When an exemption has been granted, the

imbalance settlement period shall be no

greater than 30 minutes by 2025.

ANNEX I TREE.2.B EN

• 181. 

  Article 8 Forward markets

• 182. 

  1. In line with Regulation 1. In line with Regulation Provisionally agreed in TM:

  (EU) 2016/1719, transmission (EU) 2016/1719, transmission system operators shall issue system operators shall issue 1. In line with Regulation (EU) long-term transmission rights or long-term transmission rights or 2016/1719, transmission system operators have equivalent measures in have equivalent measures in shall issue long-term transmission rights or place to allow for market place to allow for market have equivalent measures in place to allow participants, in particular participants, [ ] including for market participants, [ ] including owners owners of generation facilities owners of generation facilities of generation facilities using renewable using renewable energy using renewable energy sources, energy sources, to hedge price risks across sources, to hedge price risks to hedge price risks across bidding zone borders, unless an assessment across bidding zone borders. bidding zone borders, unless an of the forward market performed by the assessment of the forward competent regulatory authorities on the market performed by the bidding zone borders shows sufficient competent regulatory hedging opportunities in the concerned authorities on the bidding zone bidding zones. in accordance with the borders shows sufficient guideline on forward capacity allocation hedging opportunities in the adopted on the basis of Article 18 of the concerned bidding zones in Regulation 714. accordance with the guideline on forward capacity allocation adopted on the basis of Article 18 of the Regulation 714.

ANNEX I TREE.2.B EN

• 183. 

  2. Long-term transmission 2. Long-term transmission Provisionally agreed in TM: rights shall be allocated in a rights shall be allocated in a

  transparent, market based and transparent, market based and Long-term transmission rights shall be non-discriminatory manner non-discriminatory manner allocated in a transparent, market based and through a single allocation through a single allocation non-discriminatory manner through a single platform. Long-term platform [ ] according to the allocation platform. [ ] according to the transmission rights shall be firm provisions of the guideline on provisions of the guideline on forward and be transferable between forward capacity allocation capacity allocation adopted on the basis of market participants. adopted on the basis of Article Article 18 of the Regulation 714/2009 i. 18 of the Regulation 714/2009 i.

• 184. 

  3. Subject to compliance AM 47 3. Subject to compliance Provisionally agreed: with treaty rules on 3. Subject to compliance with with treaty rules on competition,

  competition, market operators treaty rules on competition, market market operators shall be free to 3. Subject to compliance with treaty shall be free to develop forward operators shall be free to develop develop forward hedging rules on competition, market operators shall hedging products including for forward hedging products products including for the longbe free to develop forward hedging products the long-term to provide market including for the long-term to term to provide market including for the long-term to provide participants, in particular provide market participants, in participants, [ ] including market participants, [ ] including owners of owners of generation facilities particular owners of generation owners of generation facilities generation facilities using renewable energy using renewable energy facilities using renewable energy using renewable energy sources, sources, with appropriate possibilities to sources, with appropriate sources, with appropriate with appropriate possibilities to hedge financial risks from price fluctuations. possibilities to hedge financial possibilities to hedge financial risks hedge financial risks from price Member States shall not restrict such risks from price fluctuations. from price fluctuations. Member fluctuations. Member States hedging activity to trades within a Member Member States shall not restrict States shall support the liquidity of shall not restrict such hedging State or bidding zone. such hedging activity to trades such products, in particular of activity to trades within a within a Member State or exchange-based products that Member State or bidding zone. bidding zone. have already been developed, and shall allow them to be traded across bidding zones.

ANNEX I TREE.2.B EN

• 185. 

  Article 9 Article 9 Provisionally agreed in TM (title): Price Restrictions [ ] Technical bidding limits Article 9

  [ ] Technical bidding limits

• 186. 

  1. There shall be no AM 48 1. [ ] Wholesale Council compromise proposal: maximum limit of the 1. There shall be no maximum electricity prices and

  wholesale electricity price [ ] and no minimum limit of the balancing energy prices, There shall be no maximum [ ] and no unless it is set at the value of wholesale electricity price [ ]. This including bidding and clearing minimum limit of the wholesale electricity lost load as determined in provision shall apply, inter alia, to prices, shall not be subject to a price [ ]. This provision shall apply, inter accordance with Article 10. bidding and clearing in all minimum or maximum limit. alia, to bidding and clearing in all There shall be no minimum timeframes and include balancing This is without prejudice to timeframes and include balancing energy and limit of the wholesale energy and imbalance prices. the technical price limits imbalance prices. This is without prejudice electricity price unless it is set which may be applied in the to the technical price limits which may be at a value of minus 2000 € or balancing timeframe applied in the balancing timeframe less and, in the event that it is or according to the Balancing according to the Balancing Guideline anticipated to be reached, set at Guideline adopted on the basis adopted on the basis of Article 18 of the a lower value for the following of Article 18 of the Regulation Regulation 714/2009 i and in the day-ahead day. This provision shall apply, 714/2009 and in the day-ahead and intraday timeframes as set out in the inter alia, to bidding and and intraday timeframes as set following paragraph.

  clearing in all timeframes and out in the following include balancing energy and paragraph. imbalance prices.

• 187. 

  2. By way of derogation AM 49 2. [ ] Nominated electricity Council compromise proposal: from paragraph 1, until [OP: 2. By way of derogation from market operators may apply

  two years after entry into force] paragraph 1, market operators may harmonised limits on maximum 2. Nominated electricity market operators market operators may apply apply technical limits on maximum and minimum clearing prices may apply harmonised limits on maximum limits on maximum clearing and minimum bidding limits for for day-ahead and intraday and minimum clearing prices for day-ahead prices for day-ahead and day-ahead and intraday timeframes timeframes in accordance with [ and intraday timeframes in accordance with [ intraday timeframes in in accordance with Articles 41 and ] the capacity allocation and ] the capacity allocation and congestion accordance with Articles 41 and 54 of Regulation (EU) 2015/1222 congestion management management guideline adopted on the 54 of Regulation (EU) and for the balancing timeframe guideline adopted on the basis basis of Article 18 of the Regulation 2015/1222. In the event that in accordance with Regulation of Article 18 of the Regulation 714/2009. These limits shall be sufficiently limits are, or are anticipated to (EU) 2017/2195. In the event that 714/2009. These limits shall high so as not to unnecessarily restrict be, reached, they shall be raised those technical limits are, or are take into account the trade, be harmonised for the common for the following day. anticipated to be, reached, they maximum value of lost load. market area and take into account the

  shall be automatically adjusted. Nominated market operators maximum value of lost load. Nominated The technical price limits shall be shall implement a transparent market operators shall implement a

ANNEX I TREE.2.B EN

sufficiently high so as not to mechanism to adjust transparent mechanism to adjust unnecessarily restrict trade, and automatically the technical automatically the technical bidding limits shall be harmonised for the bidding limits in due time in in due time in the event that the set limits common market area. They shall the event that the set limits are are expected to be reached. The adjusted be returned to initial values after expected to be reached. The higher limits shall remain applicable until the scarcity situation is over. adjusted higher limits shall further increases under this mechanism remain applicable until are required. further increases under this mechanism are required.

• 188. 

  3. Transmission system 3. Transmission system Council compromise proposal: maintain

  operators shall not take any operators shall not take any Council GA measures with the aim of measures with the aim of

  changing the wholesale prices. changing the wholesale prices. [ 3. Transmission system operators shall All dispatch orders shall be ] not take any measures with the aim of

reported to the national changing the wholesale prices. [ ]

regulatory authority within one day.

• 189. 

  4. Member States shall 4. National regulatory Provisionally agreed: identify policies and measures authorities or other competent

  applied within their territory authorities designated by 4. National regulatory authorities or that could contribute to Member States shall identify other competent authorities designated by indirectly restrict price policies and measures applied Member States shall identify policies and formation, including limiting within their territory that could measures applied within their territory that bids relating to the activation of contribute to indirectly restrict could contribute to indirectly restrict balancing energy, capacity wholesale price formation, wholesale price formation, including mechanisms, measures by the including limiting bids relating limiting bids relating to the activation of transmission system operators, to the activation of balancing balancing energy, capacity mechanisms, measures intended to challenge energy, capacity mechanisms, measures by the transmission system market results or to prevent measures by the transmission operators, measures intended to challenge

  abuse of dominant positions or

inefficiently defined bidding system operators, measures market results or to prevent abuse of

zones. intended to challenge market dominant positions or inefficiently defined results or to prevent abuse of bidding zones.

dominant positions or inefficiently defined bidding zones.

ANNEX I TREE.2.B EN

• 190. 

  5. Where a Member State 5. Where a national Provisionally agreed: has identified a policy or regulatory authority or other

  measure which could serve to competent authority 5. Where a national regulatory restrict price formation it shall designated by a Member State authority or other competent authority take all appropriate actions to has identified a policy or designated by a Member State has eliminate or, if not possible, measure which could serve to identified a policy or measure which could mitigate the impact on bidding restrict price formation it shall serve to restrict price formation it shall take behaviour. Member States shall take all appropriate actions to all appropriate actions to eliminate or, if not provide a report to the eliminate or, if not possible, possible, mitigate the impact on bidding Commission by [OP: six mitigate the impact on bidding behaviour. Member States shall provide a months after entry into force] behaviour. Member States shall report to the Commission by [OP: six months detailing the measures and provide a report to the after entry into force] detailing the measures actions they have taken or Commission by [OP: six months and actions they have taken or intend to take. intend to take. after entry into force] detailing the measures and actions they have taken or intend to take.

ANNEX I TREE.2.B EN

• 191. 

  Article 10 Value of lost load

• 192. 

  1. By [OP: one year after AM 50 1. By [OP: one year after Provisionally agreed: entry into force] Member States 1. By [OP: one year after entry entry into force] where 1. By [OP: one year after entry into shall establish a single estimate into force] Member States shall required for setting a force] where required for setting a

  of the Value of Lost Load establish a single estimate of the reliability standard in reliability standard in accordance with (VoLL) for their territory, Value of Lost Load (VoLL) for accordance with Article 20 Article 20 national regulatory authorities expressed in €/MWh. That their territory, expressed in€/MWh. national regulatory authorities or other competent authorities designated estimate shall be reported to the That estimate shall be reported to or other competent authorities by Member States shall establish a single Commission and made the Commission and made designated by Member States estimate of the Value of Lost Load (VoLL) publically available. Member publically available. In the case of shall establish a single estimate for their territory [ ]. That estimate shall be [

  States may establish different cross-border bidding zones, of the Value of Lost Load

VoLL per bidding zone if they Member States shall establish a (VoLL) for their territory [ ]. ] made publically available. National

have several bidding zones in common estimate of the VoLL. That estimate shall be [ ] made regulatory authorities or other competent their territory. In establishing Member States may establish publically available. National authorities designated by Member States VoLL, Member States shall different VoLL per bidding zone if regulatory authorities or other may establish different [ ] estimates per apply the methodology they have several bidding zones in competent authorities bidding zone if they have several bidding developed pursuant to Article their territory. In establishing designated by Member States zones in their territory. In case a bidding 19(5). VoLL, Member States shall apply may establish different [ ] zone consists of territories of more than the methodology developed estimates per bidding zone if one Member State, the concerned pursuant to Article 19(5). they have several bidding zones Member States shall establish a single in their territory. In case a VoLL for that bidding zone. In establishing bidding zone consists of VoLL, national regulatory authorities or territories of more than one other competent authorities designated by Member State, the concerned Member States shall apply the methodology Member States shall establish developed pursuant to Article 19(5).

a single VoLL for that bidding zone. In establishing VoLL, national regulatory authorities or other competent authorities designated by Member States shall apply the methodology developed pursuant to Article 19(5).

ANNEX I TREE.2.B EN

• 193. 

  2. Member States shall 2. Member States shall Provisionally agreed: update their estimate at least update their estimate at least 2. Member States shall update their every five years. every five years or when a estimate at least every five years or earlier significant change is observed. when a significant change is observed.

• 194. 

  Article 11 Dispatching of generation and demand response

• 195. 

  1. Dispatching of power

  generation facilities and 1. Dispatching of power

  Council compromise proposal (GA):

  demand response shall be nongeneration facilities and demand discriminatory and market response shall be non

  • 1. 

    Dispatching of power generation facilities and demand response shall be nonbased

  unless otherwise discriminatory, transparent discriminatory, transparent and, unless provided under paragraphs 2 to and, unless otherwise provided otherwise provided under Article 11 (2) to

• 4. 

  under Article 11 (2) to Article 11 (4), market based [ ]. Article 11 (4), market based [ ].

• 196. 

  2. When dispatching Council compromise proposal:

  electricity generating 2. [ ] Without prejudice to installations, transmission Articles 107 to 109 TFEU 2. [ ] Without prejudice to Articles system operators shall give Member States may provide 107 to 109 TFEU Member States may priority to generating for electricity generated [ ] shall provide for electricity generated [ ] installations using renewable using renewable energy sources using renewable energy sources or highenergy sources or highor high-efficiency cogeneration efficiency cogeneration from small [ ] efficiency cogeneration from from small [ ] power power generating facility or power small generating installations or generating facility or power generating facility using emerging generating installations using generating facility using technologies to be granted priority emerging technologies to the emerging technologies to be dispatch up to the following extent:

  following extent: granted priority dispatch up to the following extent:

ANNEX I TREE.2.B EN

• 197. 

  (a) generating installations AM 51 (a) [ ] power generating Council compromise proposal: using renewable energy sources (a) generating installations using facility using renewable energy [ ] power generating facility using or high-efficiency cogeneration renewable energy sources or highsources or high-efficiency renewable energy sources or high-efficiency with an installed electricity efficiency cogeneration with an cogeneration with an installed cogeneration with an installed electricity capacity of less than 500 kW; installed electricity capacity of less electricity capacity of less than [ capacity of less than [ ] [350] kW; or or than 500 kW; [ ] ] 250 kW; or

• 198. 

  (b) demonstration projects AM 52 (b) demonstration projects for Council compromise proposal: for innovative technologies. (b) generating installations emerging [ ] technologies as

which are demonstration projects defined in the network code on

for innovative technologies; requirements for generators (b) demonstration projects for innovative Member States may apply higher adopted on the basis of Article technologies, subject to approval by the limits to local energy communities 6 of Regulation 714/2009 i. regulatory authority which shall be as established in the Directive limited to the time and extent the (EU) ... [recast of Directive derogation is necessary for achieving the 2009/72/EC as proposed by demonstration purposes.

COM(2016) 864 i/2]. 198a. Council compromise proposal:

2a. A Member State may decide not to apply priority dispatch pursuant to paragraph 2 (a) to additional power generating facilities with a start of operation at least 6 months after the decision, or to apply a lower capacity threshold than set out under paragraph (2) (a), subject to the following conditions:

(a) its well functioning intraday, wholesale and balancing markets are fully accessible to all market players in accordance with the provisions of this Regulation;

(b) curtailment rules and congestion management are transparent to all market parties; (c) the national contribution of the

ANNEX I TREE.2.B EN

Member States towards the Union’s binding overall target for share of energy from renewable sources pursuant to Article 3(2) of [Directive 2009/28/EC i as proposed by COM(2016) 767 i] and Article 4(a)(2) of the [Governance Regulation] is at least equal to the corresponding result of the formula set out in Annex II of the [Governance Regulation] and the Member State’s share of energy from renewable sources is not below its reference points pursuant to Article 4(a)(2) [Governance Regulation];

(d) the Member State has notified the planned derogation setting out in detail how the conditions set out under (a) to (c) are fulfilled to the Commission; and

(e) the Member State has published the planned derogation including the detailed reasoning, taking due account of the protection of commercially sensitive information where required.

Any derogation shall avoid retroactive changes for installations already benefiting from priority dispatch, notwithstanding any agreement between a Member State and an installation on a voluntary basis.

Without prejudice to Articles 107 to 109 TFEU, Member States may provide incentives to installations eligible for priority dispatch to voluntarily give up priority dispatch.

ANNEX I TREE.2.B EN

• 199. 

  3. Where the total capacity AM 53 [ ] Council compromise proposal: of generating installations 3. A Member State which does [ ]

  subject to priority dispatch not at the time of entry into force under paragraph 2 is higher of this Regulation grant priority than 15 % of the total installed dispatch to any generating generating capacity in a installations may request to be Member State, point (a) of exempted from the provisions of paragraph 2 shall apply only to paragraph 2 if it can demonstrate additional generating to the Commission that all of the installations using renewable following conditions are met: energy sources or highefficiency cogeneration with an installed electricity capacity of less than 250 kW.

• 200. 

  (a) no priority dispatch exists for Council compromise proposal: installations other than those listed [ ]

  in paragraph 2 is in place; 201. (b) its liquid intraday, wholesale Council compromise proposal:

  and balancing markets are fully [ ] (moved to 198a) accessible to all market players in accordance with the provisions of this Regulation;

• 202. 

  (c) its curtailment rules and Council compromise proposal: congestion management are [ ]

  transparent to all market parties and comply with the provisions of this Regulation;

• 203. 

  (d) its renewable energy target for Council compromise proposal:

  2030 is sufficient for the collective [ ] achievement of the Union’s binding overall target for share of energy from renewable sources pursuant to Article 3(2) of [Directive 2009/28/EC i as proposed by COM(2016) 767 i]and the Member State is expected to meet its target

ANNEX I TREE.2.B EN

• 204. 

  The Commission shall approve or Council compromise proposal: reject a request for exemption [ ]

  within six months of receipt of the request. Any exemption granted shall avoid retroactive changes for installations already benefiting from priority dispatch, notwithstanding any agreement between a Member State and an installation on a voluntary basis.

• 205. 

  From 1 January 2026, point (a) From 1 January 2026, point (a) of 3a. For power generating Council compromise proposal: of paragraph 2 shall apply only paragraph 2 shall apply only to facility commissioned as from 3a. For power generating facility to generating installations using generating installations using 1 January 2026, point (a) of commissioned as from 1 January 2026, renewable energy sources or renewable energy sources or highparagraph 2 shall apply only to point (a) of paragraph 2 shall apply only to high-efficiency cogeneration efficiency cogeneration with an power generating facilities [ ] power generating facilities [ ] using with an installed electricity installed electricity capacity of less using renewable energy sources renewable energy sources or high-efficiency capacity of less than 250 kW or, than 250 kW [ ] . or high-efficiency cogeneration cogeneration with an installed electricity if the threshold under the first with an installed electricity capacity of less than [ ] [200] kW [ ]. sentence of this paragraph has capacity of less than [ ] 150 Member States may apply a lower been reached, of less than 125 kW [ ]. Member States may threshold.

  kW. apply a lower threshold.

ANNEX I TREE.2.B EN

• 206. 

  4. Generating installations AM 54 4. [ ] Without prejudice to Council compromise proposal (GA): using renewable energy sources 4. Without prejudice to contracts concluded before

  or high-efficiency cogeneration paragraph 3 of this Article, [entry into force of the 4. [ ] Without prejudice to contracts which have been commissioned generating installations using legislation], power generating concluded before [entry into force of the prior to [OP: entry into force] renewable energy sources or highfacility using renewable energy legislation], power generating facility and have, when commissioned, efficiency cogeneration which have sources or high-efficiency using renewable energy sources or highbeen subject to priority dispatch been commissioned prior to [OP: cogeneration which have been efficiency cogeneration which have been under Article 15(5) of Directive entry into force] and have, when commissioned prior to [OP: commissioned prior to [OP: entry into force] 2012/27/EU of the European commissioned, been subject to entry into force] and have, when and have, when commissioned, been subject Parliament and of the Council priority dispatch under Article 15 commissioned, been subject to to priority dispatch under Article 15(5) of or Article 16(2) of Directive (5) of Directive 2012/27 i/EU of the priority dispatch under Article Directive 2012/27 i/EU of the European 2009/28/EC of the European European Parliament and of the 15(5) of Directive 2012/27 i/EU Parliament and of the Council or Article Parliament and of the Council 24 Council or Article 16 (2) Directive of the European Parliament and 16(2) of Directive 2009/28/EC i of the

  shall remain subject to priority 2009/28/EC of the European of the Council or Article 16(2)

  dispatch. Priority dispatch shall Parliament and of the Council 39 of Directive 2009/28/EC i of the European Parliament and of the Council

  26

  no longer be applicable from shall remain subject to priority European Parliament and of the shall [ ] continue to benefit from priority the date where the generating dispatch. Priority dispatch shall no Council 25 shall [ ] continue to dispatch. Priority dispatch shall no longer be installation is subject to longer be applicable from the date benefit from priority dispatch. applicable from the date where the [ ] power significant modifications, which where the generating installation is Priority dispatch shall no longer generating facility is subject to significant shall be the case at least where subject to significant modifications, be applicable from the date modifications, which shall be the case at a new connection agreement is which shall be the case at least where the [ ] power generating least where a new connection agreement is required or the generation where a new connection agreement facility is subject to significant required or the generation capacity is capacity is increased. is required or the generation modifications, which shall be the increased.

  capacity is increased. case at least where a new 1. __________________ connection agreement is 35 Directive 2009/28/EC i of the required or the generation European Parliament and of the capacity is increased. Council of 23 April 2009 on the

24 Directive 2009/28/EC i of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC i and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).

25 Directive 2009/28/EC i of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC i and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).

26 Directive 2009/28/EC i of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC i and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).

ANNEX I TREE.2.B EN

promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC i and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).

• 207. 

  5. Priority dispatch shall not

  endanger the secure operation 5. Priority dispatch shall not

  No change:

  of the electricity system, shall endanger the secure operation of not be used as a justification for the electricity system, shall not

  • 5. 

    Priority dispatch shall not endanger

  curtailment of cross-border be used as a justification for

the secure operation of the electricity system,

capacities beyond what is curtailment of cross-border

shall not be used as a justification for

provided for in Article 14 and capacities beyond what is

curtailment of cross-border capacities

shall be based on transparent provided for in Article 14 and

beyond what is provided for in Article 14

and non-discriminatory criteria. shall be based on transparent and

and shall be based on transparent and nonnon-discriminatory

criteria. discriminatory criteria.

• 208. 

  Article 12 Article 12 Redispatching and curtailment Redispatching [ ]

• 209. 

  1. Curtailment or Provisionally agreed in TM (GA) :

  redispatching of generation and 1. [ ] Redispatching of 1. [ ] Redispatching of generation and redispatching of demand generation and redispatching of redispatching of demand response shall be response shall be based on demand response shall be based based on objective, transparent and nonobjective, transparent and nonon objective, transparent and discriminatory criteria. non-discriminatory criteria. It

  discriminatory criteria. It shall be open to

  shall be open to all generation all generation technologies, storage and technologies, storage and demand response, including operators demand response, including located in other Member States unless operators located in other technically not feasible.

  Member States unless

  technically not feasible. Provisionally agreed in TM to modify definition 'z'. Line 103.

ANNEX I TREE.2.B EN

• 210. 

  2. The resources curtailed AM 55 2. The resources [ Provisionally agreed in TM: or redispatched shall be 2. The resources curtailed or ]redispatched shall be selected

  selected amongst generation or redispatched shall be selected amongst generation, storage or 2. The resources [ ]redispatched shall be demand facilities submitting amongst generation, energy demand facilities [ ] using selected amongst generation, storage or offers for curtailment or storage, and/or demand response market-based mechanisms and demand facilities [ ] using market-based redispatching using marketfacilities submitting offers for be financially compensated. [ ] mechanisms and be financially compensated. based mechanisms and be curtailment or redispatching using Balancing energy bids used for [ ] Balancing energy bids used for financially compensated. Nonmarket-based mechanisms and be redispatching shall not set the redispatching shall not set the balancing market-based curtailment or financially compensated. Nonbalancing energy price in energy price. in accordance with the redispatching of generation or market-based curtailment or accordance with the Balancing Balancing Guideline adopted on the basis redispatching of demand redispatching of generation or Guideline adopted on the basis of Article 18 of the Regulation 714/2009 i. response shall only be used redispatching of energy storage of Article 18 of the Regulation where no market-based and/or demand response shall only 714/2009. alternative is available, where be used for operational security all available market-based reasons and where no marketresources have been used, or based alternative is available or (part of 2, moved as 2a) where the number of generation where all available market-based or demand facilities available in resources have been used, or where the area where suitable the number of generation, energy generation or demand facilities storage or demand facilities for the provision of the service available in the area where suitable are located is too low to ensure generation, energy storage or effective competition. The demand facilities for the provision provision of market-based of the service are located is too low resources shall be open to all to ensure effective competition. generation technologies, storage The provision of market-based and demand response, including resources shall be open to all operators located in other generation technologies, storage Member States unless and demand response, including technically not feasible. operators located in other Member States unless technically not feasible.

ANNEX I TREE.2.B EN

• 211. 

  2a. Without prejudice to Provisionally agreed in TM:

  Articles 107 to 109 TFEU nonmarket-based [ ] redispatching 2a. Without prejudice to Articles 107 to of generation or redispatching of 109 TFEU Non-market-based [ ] demand response [ ] may only redispatching of generation, or redispatching be used [ ] subject to the of energy storage and demand response [ ] following conditions: may only be used [ ] subject to the following conditions:

• 212. 

  (a) no market-based alternative Provisionally agreed in TM: is available, (a) no market-based alternative is available, or

• 213. 

  (b) [ ] all available market Provisionally agreed in TM: based resources have been used, (b) [ ] all available market-based resources or have been used, for

• 214. 

  (c) [ ] the number of Provisionally agreed in TM: generation or demand facilities [ ] the number of generation, energy available in the area where storage or demand response facilities suitable generation or demand available in the area where suitable facilities for the provision of the generation, energy storage or demand service are located is too low to response facilities for the provision of the ensure effective competition. [ ] service are located is too low to ensure effective competition, or [ ]

• 215. 

  (d) the current grid Provisionally agreed in TM (GA): situation leads to congestion in (d) the current grid situation leads to such a regular and predictable congestion in such a regular and way that market-based predictable way that market-based redispatch would lead to redispatch would lead to regular strategic regular strategic bidding bidding which would increase the level of which would increase the level internal congestion and the Member State of internal congestion and the concerned has adopted an action plan to Member State concerned has address this congestions or ensures that adopted an action plan to minimum available capacity for crossaddress this congestions or zonal trade is in accordance with Article ensures that 14 (7).

  minimum available capacity for cross-zonal trade is in accordance with Article 14 (7).

ANNEX I TREE.2.B EN

• 216. 

  3. The responsible system AM 56 3. The responsible system Provisionally agreed in TM: operators shall report at least 3. The responsible system operators shall report at least

once per year to the competent operators shall report at least once once per year to the competent 3. The responsible system operators shall regulatory authority on per year to the competent regulatory authority on [ ] report at least once per year to the competent

curtailment or downward regulatory authority, which shall downward redispatching of regulatory authority[ ], which shall be redispatching of generating be transmitted to the Agency, on: power generating facility [ ] transmitted to the Agency, on: installations using renewable using renewable energy sources energy sources or highor high-efficiency cogeneration [ efficiency cogeneration and on ]. measures taken to reduce the need for such curtailment or downward redispatching in the future. Curtailment or redispatching of generating installations using renewable energy sources or highefficiency cogeneration shall be subject to compensation pursuant to paragraph 6.

• 217. 

  (a) the level of development and Provisionally agreed in TM (EP text): effectiveness of market-based (a) the level of development and

  curtailment or redispatching effectiveness of market-based curtailment mechanisms for generation and or redispatching mechanisms for demand facilities; generation, energy storage and demand response facilities;

ANNEX I TREE.2.B EN

• 218. 

  (b) the reasons, volumes in MWh Provisionally agreed in TM (EP text): and type of generation source (b) the reasons, volumes in MWh and type subject to curtailment or of generation source subject to curtailment downward redispatching; or downward redispatching;

• 219. 

  (c) the measures taken to reduce Provisionally agreed in TM (EP text): the need for the curtailment or (c) the measures taken to reduce the need downward redispatching of for the curtailment or downward

  generating installations using redispatching of generating installations renewable energy sources or highusing renewable energy sources or highefficiency cogeneration in the efficiency cogeneration in the future future including investments in including investments in digitalisation of digitalisation of the grid the grid infrastructure and in services that infrastructure and in services that increase flexibility; increase flexibility;

• 220. 

  (d) requests and contractual Provisionally agreed in TM: deletion arrangements made with [ ]

  generating units for them to operate at a certain level of electricity infeed, the necessity of which the system operators shall justify,, specifying to what extent those services could not be provided by other units.

• 221. 

  The competent regulatory Provisionally agreed in TM: authority shall publish the data The competent regulatory authority shall referred to in paragraphs (a) to (d) publish a summary of the data referred to together with recommendations in paragraphs (a) to (d) together with for improvement where necessary. recommendations for improvement where necessary.

ANNEX I TREE.2.B EN

• 222. 

  Curtailment or redispatching of Provisionally agreed in TM: deletion generating installations using [ ]

  renewable energy sources or highefficiency cogeneration shall be subject to compensation pursuant to paragraph 6.

• 223. 

  4. Subject to requirements 4. Subject to requirements No change: relating to the maintenance of relating to the maintenance of

  the reliability and safety of the the reliability and safety of the 4. Subject to requirements relating to the grid, based on transparent and grid, based on transparent and maintenance of the reliability and safety of non-discriminatory criteria non-discriminatory criteria the grid, based on transparent and nondefined by the competent defined by the competent discriminatory criteria defined by the

  national authorities, national authorities, transmission

  transmission system operators system operators and competent national authorities, transmission and distribution system distribution system operators system operators and distribution system operators shall: shall: operators shall:

• 224. 

  (a) guarantee the capability AM 57 (a) guarantee the capability of Provisionally agreed in TM: of transmission and distribution (a) guarantee the capability of transmission and distribution

  networks to transmit electricity transmission and distribution networks to transmit electricity (a) guarantee the capability of transmission produced from renewable networks to transmit electricity produced from renewable energy and distribution networks to transmit energy sources or highproduced from renewable energy sources or high-efficiency electricity produced from renewable energy

  efficiency cogeneration with sources, energy storage, demandcogeneration with minimum

  minimum possible curtailment response or high-efficiency possible [ ] redispatching. That sources or high-efficiency cogeneration with or redispatching. That shall not cogeneration with minimum shall not prevent network minimum possible [ ] redispatching. That prevent network planning from possible curtailment or planning from taking into shall not prevent network planning from taking into account limited redispatching. That shall not account limited [ ] redispatching taking into account limited [ ] redispatching curtailment or redispatching prevent network planning from where this is shown to be more where they can demonstrate in a where this is shown to be more taking into account limited economically efficient and, [ ] transparent way that this is shown to be economically efficient and does curtailment or redispatching where does not exceed 5 % of [ ] the more economically efficient and, [ ] does not exceed 5 % of installed they can demonstrate in a annual generated electricity in not exceed 5 % of [ ] the annual generated capacities using renewable transparent way that this is more installations using renewable electricity in installations using renewable

  energy sources or higheconomically efficient and does not energy sources [ ] and which energy sources [ ] and which are directly efficiency cogeneration in their exceed 5 % of installed capacities are directly connected to their connected to their respective grid, unless area; using renewable energy sources, respective grid, unless otherwise provided by a Member State in energy storage, demand-response otherwise provided by a which electricity from power generating or high-efficiency cogeneration in Member State in which facility using renewable energy sources or their area; electricity from power high-efficiency cogeneration represents

ANNEX I TREE.2.B EN

generating facility using more than 50 % of annual gross final renewable energy sources or consumption of electricity; high-efficiency cogeneration represents more than 50 % of annual gross final consumption of electricity;

• 225. 

  (b) take appropriate grid and

  market-related operational (b) take appropriate grid and

  Provisionally agreed in TM (GA):

  measures in order to minimise market-related operational the curtailment or downward measures in order to minimise

  (b) take appropriate grid and market-related

  redispatching of electricity the [ ] downward redispatching

  operational measures in order to minimise the [ ] downward redispatching of electricity

  produced from renewable of electricity produced from produced from renewable energy sources or energy sources or highrenewable energy sources or high-efficiency cogeneration. efficiency cogeneration. high-efficiency cogeneration.

• 226. 

  AM 58 Provisionally agreed in TM (EP):

  Article 12 – paragraph 4 – point b (new) (ba) ensure that their networks are sufficiently flexible such that they are in a (ba) ensure that their networks position to manage them. are sufficiently flexible such that they are in a position to manage them.

• 227. 

  5. Where non-market-based 5. Where non-market-based Provisionally agreed in TM (GA): downward redispatching or downward redispatching [ ] is

  curtailment is used, the used, the following principles 5. Where non-market-based downward following principles shall shall apply: redispatching [ ] is used, the following apply: principles shall apply:

ANNEX I TREE.2.B EN

• 228. 

  (a) generating installations AM 59 (a) [ ] power generating Provisionally agreed in TM: using renewable energy sources (a) generating installations using facilities using renewable

  shall only be subject to renewable energy sources shall energy sources shall only be (a) [ ] power generating facilities using downward redispatching or only be subject to downward subject to downward renewable energy sources shall only be curtailment if no other redispatching or curtailment if no redispatching [ ]if no other subject to downward redispatching [ ]if no alternative exists or if other other alternative exists or if other alternative exists or if other other alternative exists or if other solutions solutions would result in solutions would result in solutions would result in would result in significantly disproportionate disproportionate costs or risks significantly disproportionate costs disproportionate costs or severe costs or severe risks to network security to network security; or significant risks to network risks to network security; security;

• 229. 

  (b) generating installations AM 60 (b) electricity generated in a [ Provisionally agreed in TM (GA): using high-efficiency (b) electricity generated in a ] high-efficiency cogeneration

  cogeneration shall only be high-efficiency cogeneration process shall only be subject to (b) electricity generated in a [ ] highsubject to downward process shall only be subject to downward redispatching [ ] if, efficiency cogeneration process shall only be redispatching or curtailment if, downward redispatching or other than [ ] downward subject to downward redispatching [ ] if, other than curtailment or curtailment if, other than redispatching of [ ] power other than [ ] downward redispatching of [ downward redispatching of curtailment or downward generating facilities using ] power generating facilities using generating installations using redispatching of generating renewable energy sources, no renewable energy sources, no other renewable energy sources, no installations using renewable other alternative exists or if alternative exists or if other solutions would other alternative exists or if energy sources, no other alternative other solutions would result in result in significantly disproportionate costs other solutions would result in exists or if other solutions would disproportionate costs or severe or severe risks to network security; disproportionate costs or risks result in disproportionate costs or risks to network security; to network security; risks to network security;

ANNEX I TREE.2.B EN

• 230. 

  (c) self-generated electricity [ ] Council compromise proposal (revert to from generating installations COM):

  using renewable energy sources (c) self-generated electricity from or high-efficiency cogeneration generating installations using renewable which is not fed into the energy sources or high-efficiency transmission or distribution cogeneration which is not fed into the network shall not be curtailed transmission or distribution network shall not unless no other solution would be curtailed unless no other solution would resolve network security issues; resolve network security issues;

• 231. 

  (d) downward redispatching (d) downward redispatching [ Provisionally agreed in TM: or curtailment under letters a to ] under letters a [ ] and b [ ] it (d) downward redispatching [ ] under c shall be duly and shall be duly and transparently letters a [ ] and b [ ] it shall be duly and transparently justified. The justified. The justification shall transparently justified. The justification shall justification shall be included in be included in the report under be included in the report under paragraph 3. the report under paragraph 3. paragraph 3.

• 232. 

  6. Where non-market based AM 61 6. Where non-market based [ Provisionally agreed in TM: curtailment or redispatching is 6. Where non-market based ] redispatching is used, it shall

  used, it shall be subject to curtailment or redispatching is be subject to financial 6. Where non-market based [ ] financial compensation by the used, it shall be subject to financial compensation by the system redispatching is used, it shall be subject to system operator requesting the compensation by the system operator requesting the [ ] financial compensation by the system curtailment or redispatching to operator requesting the curtailment redispatching to the [ ] operator requesting the [ ] redispatching to

  the owner of the curtailed or or redispatching to the owner of the operator of the [ ] redispatched

  redispatched generation or curtailed or redispatched generation or demand facility the [ ] operator of the [ ] redispatched demand facility. Financial generation, energy storage or except in the case of generation, energy storage or demand compensation shall at least be demand facility. Financial generators accepting response facility except in the case of equal to the highest of the compensation shall at least be connection agreement in which generators accepting connection following elements: equal to the highest of the firm delivery of energy is not agreement in which firm delivery of

  following elements: guaranteed. Financial energy is not guaranteed. Financial

  compensation at least be equal to compensation at least be equal to the highest

  the highest of the following of the following elements or a combination

  elements or a combination of of them if applying one of the elements

  them if applying one of the would lead to an unjustifiably low or

  elements would lead to an unjustifiably high compensation:

  unjustifiably low or unjustifiably high compensation:

ANNEX I TREE.2.B EN

• 233. 

  (a) additional operating cost (a) additional operating cost Provisionally agreed in TM (GA): caused by the curtailment or caused by the [ ] redispatching,

  redispatching, such as such as additional fuel costs in (b) additional operating cost caused by additional fuel costs in case of case of upward redispatching, or the [ ] redispatching, such as additional fuel upward redispatching, or backup heat provision in case of costs in case of upward redispatching, or backup heat provision in case of downward redispatching or backup heat provision in case of downward downward redispatching or curtailment of [ ] power redispatching or curtailment of [ ] power curtailment of generating generating facility using highgenerating facility using high-efficiency installations using highefficiency cogeneration; cogeneration; efficiency cogeneration;

• 234. 

  (b) 90 % of the net revenues AM 62 (b) [ ] Net revenues from the Provisionally agreed in TM: from the sale of electricity on (b) [ ] net revenues from the sale of electricity on the daythe

  day-ahead market that the sale of electricity on the day-ahead ahead market that the generating (b) [ ] Net revenues from the sale of generating or demand facility market that the generating or or demand facility would have electricity on the day-ahead market that the would have generated without demand facility would have generated without the [ ] generating, energy storage or demand the curtailment or redispatching generated without the redispatching redispatching request. Where response facility would have generated request. Where financial request, including lost financial financial support is granted to without the [ ] redispatching request. Where support is granted to generating support where financial support is generating or demand facilities financial support is granted to generating, or demand facilities based on granted to generating or demand based on the electricity volume storage or demand response facilities based the electricity volume generated facilities based on the electricity generated or consumed, lost on the electricity volume generated or or consumed, lost financial volume generated or consumed [ ] . financial support shall be consumed, lost financial support shall be support shall be deemed part of deemed part of the net revenues. deemed part of the net revenues. the net revenues.

ANNEX I TREE.2.B EN

• 235. 

  Chapter III Network access and congestion management

• 236. 

  S ECTION 1 C APACITY ALLOCATION

• 237. 

  Article 13 Article 13 Council compromise proposal: to divide Definition of bidding zones Measures to address congestion article 13, into 13 and 13a. Due to changing and definition of bidding zones of structure and shifting parts of paragraphs please note that the comparison with first three columns may not be exact and/or possible. A consolidated version of 13 and 13a can be found in Annex II.

  Article 13 Bidding Zone Review Article 13a Action plans

• 238. 

  1. Bidding zone borders AM 63 1. Member States shall Council compromise proposal: shall be based on long-term, 1. The configuration of take all appropriate measures Following adoption this will be paragraph 1 structural congestions in the bidding zones in the Union shall to address congestions. Bidding of Article 13:

transmission network and be designed in such a way as to zone borders shall be based on 1. Member States shall take all

bidding zones shall not contain ensure liquidity of day-ahead and long-term, structural congestions appropriate measures to address

such congestions. The intraday markets, and thus to in the transmission network [ ]. congestions. Bidding zone borders shall be

configuration of bidding zones maximise economic efficiency and Bidding zones shall not based on long-term, structural congestions in

in the Union shall be designed cross-border trading opportunities contain such structural the transmission network [ ]. Bidding zones

in such a way as to maximise while maintaining security of congestions unless they have shall not contain such structural

economic efficiency and crosssupply. Bidding zone borders shall no impact, or their impact on congestions unless they have no impact,

border trading opportunities be based on long-term, structural neighbouring bidding zones is or, as a temporary exemption their impact

while maintaining security of congestions in the transmission mitigated through the use of on neighbouring bidding zones is

supply. network and bidding zones shall remedial actions and they do mitigated through the use of remedial

not contain such congestions not lead to reductions of cross actions and they do not lead to reductions

unless they have no impact on zonal trading capacity. The of cross zonal trading capacity in

neighbouring bidding zones, or configuration of the bidding accordance with the requirements of Art

their impact is mitigated by zones in the Union shall be 14. The configuration of the bidding zones in

remedial actions. designed in such a way as to the Union shall be designed in such a way as

maximise economic efficiency to maximise economic efficiency and in

and in order to maximise crossorder to maximise cross-border trading

border trading opportunities, [ ] opportunities, while maintaining security of

ANNEX I TREE.2.B EN

with due respect to the supply with due respect to the provisions provisions in Article 14. in Article 14.

• 239. 

  2. Each bidding zone should AM 64 [ ] Council compromise proposal: be equal to an imbalance price 2. Each bidding zone should be [ ]

  area. equal to an imbalance price area, (covered in line 152) except where an imbalance price

  area may constitute a part of a bidding zone.

239a. Council compromise proposal:

Following adoption this will be paragraph 2 of Article 13: 2. Every three years, the ENTSO for Electricity shall report on structural congestion and other major physical congestion between and within bidding zones, including location and frequency of such congestion in accordance with the capacity allocation and congestion management guideline adopted on the basis of Article 18 of Regulation (EU) 714/2009 and an assessment of whether the cross-zonal trade capacity reached the minimum threshold pursuant to Article 14.

• 240. 

  3. In order to ensure an AM 65 3. In order to ensure an Council compromise proposal: optimal bidding zone definition 3. In order to ensure an optimal optimal bidding zone [ ] Following adoption this will be paragraph 3 in closely interconnected areas, bidding zone definition in closely configuration [ ] a bidding of Article 13:

  a bidding zone review shall be interconnected areas, a bidding zone review shall be carried out. carried out. That review shall zone review shall be carried out. That review shall identify all 3. In order to ensure an optimal bidding include analysis of the That review shall include analysis structural congestion and zone [ ] configuration [ ] a bidding zone configuration of bidding zones of the configuration of bidding include analysis of [ ] different review shall be carried out. That review shall in a coordinated manner with zones in a coordinated manner with configurations of bidding zones identify all structural congestion and the involvement of affected the involvement of affected in a coordinated manner with the include analysis of [ ] different stakeholders from all affected stakeholders from all affected involvement of affected configurations of bidding zones in a Member States, following the Member States, following the stakeholders from all [ ] coordinated manner with the involvement of

ANNEX I TREE.2.B EN

process in accordance with process in accordance with Articles relevant Member States, affected stakeholders from all [ ] relevant Articles 32 to 34 of Regulation 32 to 34 of Regulation (EU) following the process in Member States, following the process in (EU) 2015/1222. The Agency 2015/1222. Current bidding zones accordance with [ ] the accordance with [ ] the capacity allocation shall approve and may request shall be assessed based on their capacity allocation and and congestion management guideline amendments to the ability to create a reliable market congestion management adopted on the basis of Article 18 of methodology and assumptions environment, ensure sufficient guideline adopted on the basis Regulation (EU) 714/2009 i. Current bidding that will be used in the bidding flexible generation and load of Article 18 of Regulation zones shall be assessed based on their zone review process as well as capacity, which is crucial for (EU) 714/2009. All relevant ability to create a reliable market the alternative bidding zone avoiding grid bottlenecks, transmission system operators environment, [ ] including for flexible configurations considered. balancing electricity demand and shall submit a proposal to the generation and load capacity, which is supply securing the long-term relevant national regulatory crucial for avoiding grid bottlenecks, security of investments and the authorities for approval. The balancing electricity demand and supply, grid. The Agency shall approve relevant national regulatory securing the long-term security of and may request amendments to authorities shall come to an investments [ ] in network infrastructure. the methodology and assumptions unanimous decision on the that will be used in the bidding proposal within [3 month]. In (ex part of line 242) In this article and in zone review process as well as the case they do not agree within article 13a, relevant Member States, alternative bidding zone this time frame, the Agency transmission system operators or national configurations considered. The shall [ ] decide on the regulatory authorities refer to those methodology shall take due methodology and assumptions Member States, transmission system account of infrastructure that will be used in the bidding operators or national regulatory development projects that are zone review process as well as authorities participating in the review of expected to be realised within the the alternative bidding zone the bidding zone configuration and also next 5 years. configurations considered. The those in the same capacity calculation methodology shall be based on region pursuant to the capacity allocation structural congestions which and congestion management guideline are not expected to be adopted on the basis of Article 18 of overcome within the next five Regulation (EU) 714/2009 i. years, for example taking due account of tangible progress on infrastructure development projects, that are expected to be realised within the next five years.

ANNEX I TREE.2.B EN

240a. Council compromise proposal:

Following adoption this will be paragraph 4 of Article 13: (based on para 3 Council) (ex part of line 240) By [3 months after the entry into force of this Regulation] all relevant transmission system operators shall submit a proposal [ ] for the methodology and assumptions that will be used in the review process as well as the alternative bidding zone configurations considered to the relevant national regulatory authorities for approval. The relevant national regulatory authorities shall come to a unanimous decision on the proposal within [3 months]. In case they do not agree within this time frame, the Agency shall [ ] within 3 months decide on the methodology and assumptions [ ] as well as the alternative bidding zone configurations considered. The methodology shall be based on structural congestions which are not expected to be overcome within the next [ ] three years, [ ] taking due account of tangible progress on infrastructure development projects, that are expected to be realised within the next [ ] three years.

• 241. 

  3a. Irrespective of the Council compromise proposal: concrete outcome of the [ ]

  infrastructure development projects, Article 14 shall apply to the calculation of the available capacity for crosszonal exchanges. Where an

ANNEX I TREE.2.B EN

action plan is implemented pursuant to paragraph 4a, the threshold referred to in Article 14(7) shall be reached not later than end of 2025.

• 242. 

  4. The transmission system AM 66 4. The transmission system Council compromise proposal: operators participating in the 4. The transmission system operators participating in the Partially incorporated in second part of bidding zone review shall operators participating in the bidding zone review shall paragraph 3 above.

  submit a proposal to the bidding zone review shall submit a submit a joint proposal to the Commission regarding whether proposal to the relevant Member [ ] relevant Member States or Following adoption this will be paragraph 5 to amend or maintain the States whether to amend or designated competent of Article 13:

  bidding zone configuration. maintain the bidding zone

  Based on that proposal, the configuration. The relevant authorities of the relevant Commission shall adopt a Member States shall be those Member States [no later than 4. Based on the methodology and decision whether to amend or participating in the review 12 months after entry into force assumptions approved pursuant to maintain the bidding zone pursuant to Article 32(2) of of this Regulation, specific date paragraph 3, the transmission system configuration, [no later than 6 Regulation (EU) 2015/1222 and to be inserted by OJ]. In this operators participating in the bidding zone months after entry into force of those in the same Capacity article, relevant Member review shall submit a joint proposal to the [ this Regulation, specific date to Calculation Region(s) pursuant to States refer to those Member ] relevant Member States or designated be inserted by OP] or by six Regulation (EU) 2015/1222. Based States participating in the competent authorities of the relevant months after the conclusion of on the proposal, the relevant review of the bidding zone Member States whether to amend or the bidding zone configuration Member States shall come to a configuration and also those in maintain the bidding zone configuration launched in accordance with unanimous decision within six the same capacity calculation no later than 12 months after approval of points (a), (b) or (c) of Article months on whether to amend or region pursuant to the the methodology pursuant to paragraph 4. 32(1) of Regulation (EU) maintain the bidding zone capacity allocation and [ ] Other Member States, Energy 2015/1222, whichever comes configuration. Other Member congestion management Community Contracting Parties or other later. States, Energy Community guideline adopted on the basis third countries sharing the same Contracting Parties or other third of Article 18 of Regulation synchronous area with any Member State countries sharing the same (EU) 714/2009. may submit comments. synchronous area with any Member State may submit comments. The decision shall be reasoned, in accordance with relevant Union law and shall take account of any observations of other Member States, Energy Community Contracting Parties

ANNEX I TREE.2.B EN

and other third countries sharing the same synchronous area with any Member State, as well as of commitments on addressing existing congestion made by the relevant Member States. The relevant Member States shall notify the Commission and the Agency of their decision and any cross-border agreements entered into by the Member States, the regulatory authorities or the transmission system operators for the purpose of achieving consensus. Agreements entered into by the relevant Member States shall not deviate from coordinated capacity calculation processes as set out in Article 14 of this Regulation nor from the relevant provisions of Regulation (EU) 2015/1222.

• 243. 

  AM 67 Council compromise proposal:

  Article 13 – paragraph 4 a(new) [ ] 4 a. Where the relevant Member States fail to come to a unanimous decision within the deadline referred to in paragraph 4, or where the Member States become aware of the fact that commitments on which a previous unanimous decision was based were not complied with, they shall immediately notify the Commission.

ANNEX I TREE.2.B EN

• 244. 

  The Commission shall initiate a Council compromise proposal: conciliation procedure and shall [ ]

  act as a mediator between the relevant Member States. In the conciliation procedure, the relevant Member States shall, within six months of such initiation, adopt a unanimous decision on whether to amend or maintain the bidding zone configuration.

• 245. 

  Where the relevant Member States Council compromise proposal: in the conciliation fail to adopt a [ ]

  unanimous decision within six months, the Member State with the internal structural congestion shall have the choice to either amend its bidding zone or establish a roadmap with concrete measures on how to overcome the congestions in its national territory in due time. That Member State shall immediately notify its choice to the Commission.

• 246. 

  For those Member States that Council compromise proposal: choose to amend their bidding [ ]

  zones, the Commission shall adopt a decision within six months of that notification, after a thorough evaluation of all the issues at stake, together with an assessment of all available solutions.

ANNEX I TREE.2.B EN

• 247. 

  4a. Where structural Council compromise proposal: congestion has been identified Following adoption this will be paragraph 6 by one or more transmission of Article 13:

  system operator or where the Where structural congestion has been bidding zone review identified in the report pursuant to recommends a bidding zone paragraph 2 or by one or more change of one or more transmission system operators in their Member States, the concerned control areas in a report approved by the Member States in cooperation respective [ ] national regulatory with their transmission system authority or authorities [ ] the respective operators have the possibility, Member State in cooperation with their within 6 months, to define transmission system operators [ ] shall action plans, national or decide, within 6 months, to either define multinational. national or multinational action plans [ ] pursuant to Art 13a, or to review their bidding zone configuration. The decision shall be immediately notified to the Commission and the Agency.

  Council compromise proposal: Following adoption this will be paragraph 1 of Article 13a:

  Following a decision pursuant to Article 13(6), the respective Member State or States shall develop action plans in cooperation with their national regulatory authority. These action plans shall contain a concrete timetable for adopting measures to reduce the structural

  These action plans shall congestions identified within the period of contain a concrete timetable [no later than [4] years after the decision for adopting measures to pursuant to Article 13(6) [ ]. reduce the structural congestions identified within

ANNEX I TREE.2.B EN

the period of [no later than [4] years after entry into force of this Regulation, specific date to be inserted by OJ], including for example acceleration of network development, more efficient use of existing infrastructure, a review of current system operation practices, increased coordination of system operation with relevant neighbouring transmission system operators, review of regulation regarding remedial actions and barriers to increased flexibility and national energy policy measures that shift the location of production and consumption.

• 248. 

  4b. Member State Council compromise proposal: implementing the actions plans Following adoption this will be paragraph 2 pursuant to paragraph 4a of Article 13a:

  shall ensure that without Irrespective of the concrete progress of prejudice to derogations under the action plan, Member States [ ] shall Articles 14(7a) and 14(7b), the ensure that without prejudice to the level of allocated capacity set derogation under Article [ ] 14 (7b), the out in Article 14(7) is achieved cross-border trade capacities are in the last year of the action increased every year up to the benchmark

  plan, and in no case later than

  end of 2025, the minimum level [ ] calculated in accordance with allocated capacity. Member Article 14 (7), which is to be achieved by States shall achieve the the end of 2025. The yearly increase shall capacity referred to in this be achieved by means of a linear paragraph by means of a trajectory. The starting of this trajectory

ANNEX I TREE.2.B EN

linear trajectory. This linear shall be either the capacity allocated at this

trajectory and the starting of border in the year before adoption of the

this trajectory, which shall be roadmap or the average of the three last either the capacity allocated at years before the adoption of the roadmap, this border in the year before whatever is higher. [ ] For the period implementation of the action when a Member State is implementing an plan or the average of the action plan, the Member State shall three last years before the ensure that the capacity made available

action plan, whatever is

higher, shall be agreed with for cross-zonal trade to be compliant with Article 14 (7) is at least equal to the values

the Member States of the same

capacity calculation region. of the trajectory, including by use of For the period when a remedial actions in the capacity Member State is implementing calculation region [ ] .

an action plan, the Member State shall ensure that the capacity made available for cross-zonal trade to be compliant with paragraph 7 is at least equal to the values of the trajectory, including by use of remedial actions in the Council compromise proposal: capacity calculation region, Following adoption this will be paragraph 3 but the decisions of the of Article 13a: regulatory authorities referred Costs of remedial actions required to to in paragraphs 7a and 7b are follow the trajectory or make available not applicable to such a cross-zonal capacity at the borders Member State. Costs of concerned by the action plan shall be remedial actions required to borne by the Member State or Member follow the trajectory or make States implementing the action plan.

available cross-zonal capacity at the borders concerned by the action plan shall be borne by the Member State or Member States implementing the action plan.

ANNEX I TREE.2.B EN

• 249. 

  4c. Six months before the Council compromise proposal: expiry of the action plan, Following adoption this will be paragraph 6 Member States shall decide of Article 13a:

  whether to split their bidding Six months before the expiry of the action zone to address remaining plan, Member States shall decide whether congestions or whether to to amend their bidding zone to address address remaining internal remaining congestions or whether to congestions with remedial address remaining internal congestions actions for which they shall with remedial actions for which they shall cover the costs. Yearly, during cover the costs. the implementation of the action plan and within six months after the expiry of the action plan, the transmission system operators participating in the bidding zone review shall assess the available crosszonal capacity calculated in accordance with the methodology referred to in Article 14(7) for the period of the last 12 months, and Council compromise proposal: determine in a report whether Following adoption this will be paragraph 7 the cross-border trade of Article 13a: capacity reached the minimum Where a structural congestion has been level outlined in Article 14(7). identified pursuant to paragraph 4 but no Where a structural congestion action plan was defined within 6 months, has been identified pursuant to the relevant transmission system paragraph 4a but no action operators shall within twelve months after plan was defined within 6 a structural congestion has been identified months, the relevant assess [ ] whether the available crosstransmission system operators border capacity has reached the minimum shall within twelve months level outlined in Article 14(7) for the after a structural congestion period of the last 12 months and report to has been identified assess the relevant national regulatory authorities and

ANNEX I TREE.2.B EN

available cross-zonal capacity the Agency. For those Member States for calculated in accordance with which the assessment demonstrates that a the methodology referred to in transmission system operator has not been Article 14(7) for the period of compliant with the minimum level, the last 12 months, and decision-making process in paragraph 5 determine in a report whether applies. the cross-border trade capacity reached its minimum level outlined in Article 14(7). The assessments under this paragraph shall be continuously reiterated every 24 months for the period of the last 24 months.

• 250. 

  4d. For those Member Council compromise proposal:

  States for which the Following adoption this will be paragraph 5 assessment following of Article 13a: paragraph 4c demonstrates For those Member States for which the that a transmission system assessment following paragraph 4 operator has not been demonstrates that a transmission system compliant with the level operator has not been compliant with the outlined in Article 14(7) or for [ ] linear trajectory [ ] the relevant those Member States that have Member States shall come to a unanimous opted for a bidding zone split, decision within 6 months from receiving the relevant Member States the assessment referred in paragraph 4 on shall come to a unanimous whether to maintain or amend the bidding decision within 6 months from zone configuration. Other Member States receiving the report referred may submit comments to the relevant in paragraph 4c on whether to Member States who should take account maintain or amend the of these comments when coming to their bidding zone configuration. decision. The decision shall be justified Other Member States may and [ ] notified to the Commission and the submit comments to the Agency. Should the relevant Member relevant Member States who States fail to come to a unanimous should take account of these decision within the allowed timeframe,

ANNEX I TREE.2.B EN

comments when coming to they shall immediately notify the their decision. The decision Commission. [ ] As a measure of last shall be justified, and shall resort, the Commission after consultation notified to the Commission with the Agency and the relevant and the Agency. stakeholders shall adopt a decision whether to amend or maintain the bidding zone configuration in and between those Member States [ ], by six months after receiving of such a notification. [ ]

• 251. 

  4e. Should the relevant Council compromise proposal:

  Member States fail to come to Following adoption this will be paragraph 7 an unanimous decision within of Article 13: the allowed timeframe, they [ ] For those Member States that have shall immediately notify the opted for a proposal to amend the bidding Commission. The Commission zone configuration [ ], the relevant may make further proposals Member States shall come to a unanimous and may invite the relevant decision within 6 months after the Member States for notification pursuant to paragraph 4 [ ] consultation aiming at Other Member States may submit fostering a balanced solution comments to the relevant Member States within three months. As a who should take account of these measure of last resort, the comments when coming to their decision. Commission after consultation The decision shall be justified and notified with the Agency and the to the Commission and the Agency. (ex 4e) relevant stakeholders shall Should the relevant Member States fail to adopt a decision whether to come to a unanimous decision within the amend or maintain the allowed timeframe, they shall immediately bidding zone configuration in notify the Commission. [ ] As a measure and between those Member of last resort, the Commission after States that are subject to the consultation with the Agency [ ] shall decision according to adopt a decision whether to amend or paragraph 4d, by six months maintain the bidding zone configuration after receiving of such a in and between those Member States [ ] notification. by six months after receiving such a notification.

ANNEX I TREE.2.B EN

• 252. 

  4f. In case one of the Council compromise proposal: consecutive reassessments [ ]

  referred to in paragraph 4c demonstrates that a transmission system operator has not been compliant with the provisions from Article 14(7c) the procedure under paragraphs 4d and 4e shall apply.

• 253. 

  5. The decision referred to AM 68 5. The decision referred to in Council compromise proposal: in paragraph 4 shall be based on 5. Where the relevant Member paragraph 4d or 4e shall be Following adoption this will be paragraph 6 the result of the bidding zone State chooses to establish a based on the report identifying of Article 13a:

  review and the transmission detailed road map with concrete structural congestion or the Six months before the expiry of the action system operators' proposal milestones on how the congestion result of the bidding zone review plan, Member States shall decide whether concerning its maintenance or issues will be resolved, that and the transmission system to amend their bidding zone to address amendment. The decision shall Member State shall, within six operators' proposal in remaining congestions or whether to be justified, in particular as months of the Commission paragraph 4a and the report address remaining internal congestions regards possible deviations decision, present that roadmap to in paragraph 4c concerning its with remedial actions for which they shall from the result of the bidding the Commission and other maintenance or amendment [ ]. cover the costs. zone review. relevant Member States. During The decision shall be justified, the implementation of the in particular as regards possible roadmap the relevant Member deviations from the result of the State shall regularly report to the bidding zone review and shall Commission on the progress take account of the positions made. and commitments of the concerned Member States and the comments provided by other Member States.

ANNEX I TREE.2.B EN

• 254. 

  Irrespective of the concrete Council compromise proposal: progress of the roadmap, the [ ]

  Member State that is (covered in line 248) implementing a roadmap shall ensure that the cross-border trade capacities are increased every year up to the benchmark level of at least 75% calculated in accordance with Article 14 paragraph 7, which is to be achieved by the end of 2025. The yearly increase shall be achieved by means of a linear trajectory.

• 255. 

  The starting of this trajectory shall Council compromise proposal: be either the capacity allocated at [ ]

  this border in the year before (covered in line 248) adoption of the roadmap or the average of the three last years before the adoption of the roadmap, whatever is higher.

• 256. 

  Member States shall be considered Council compromise proposal: to be in compliance with Article 14 [ ]

  paragraph 7 if the capacity made (covered in line 248) available for cross-zonal trade is at least equal to the values of the linear trajectory.

ANNEX I TREE.2.B EN

• 257. 

  AM 69 Council compromise proposal:

  Article 13 – paragraph 5 a (new) Following adoption this will be paragraph 4 of Article 13a:

  5a. The relevant transmission Yearly during the implementation of the system operators and national action plan and within six months after regulatory authorities shall assess the expiry of the action plan, the relevant yearly whether the available crosstransmission system operators [ ] shall [ border capacity has reached the ] assess whether the available cross-border linear trajectory or, as of the end capacity has reached the linear trajectory of 2025, the minimum level or, as of the end of 2025, the minimum outlined in Article 14(7). level outlined in Article 14 (7) for the period of the last 12 months [ ] and report to relevant national regulatory authorities and the Agency. [This assessment [ ] shall be continuously reiterated every 24 months for the period of the last 24 months.]

• 258. 

  AM 70 Council compromise proposal:

  Article 13 – paragraph 5 b (new) [ ]

  5b. For those Member States for which the assessment referred to in paragraph 5a demonstrates that a transmission system operator has not been compliant with the linear trajectory, or as of the end of 2025, with the level outlined in Article 14 (7), the Commission may recommend additional measures and as a measure of last resort, adopt a decision whether to amend or maintain the bidding zone configuration in and between those Member States.

ANNEX I TREE.2.B EN

• 259. 

  6. Where further bidding AM 71 6. Where further bidding Council compromise proposal: zone reviews are launched deleted zone reviews are launched under Following adoption this will be paragraph under Article 32(1)(a), (b) or [ ] the capacity allocation and 10 of Article 13:

  (c) of Regulation (EU) congestion management Where further bidding zone reviews are 2015/1222, the Commission guideline adopted on the basis launched under [ ] the capacity allocation may adopt a decision within six of Article 18 of Regulation and congestion management guideline months of the conclusion of that (EU) 714/2009 the procedure adopted on the basis of Article 18 of bidding zone review. outlined in this Article shall be Regulation (EU) 714/2009 i this Article followed. shall apply. [ ]

• 260. 

  7. The Commission shall AM 72 [ ] Council compromise proposal: consult relevant stakeholders on 7. Member States and the Following adoption this will be paragraph 8 its decisions under this Article Commission shall consult relevant of Article 13:

  before they are adopted. stakeholders before adopting a Member States and the Commission shall decision under this Article. consult relevant stakeholders before

  adopting a decision under this Article.

• 261. 

  8. The Commission AM 73 8. [ ] Any decision adopted Council compromise proposal: decision shall specify the date 8. The decision adopted under according to this Article shall Following adoption this will be paragraph 9 of implementation of a change. this Article shall specify the date of specify the date of of Article 13:

  That implementation date shall implementation of a change. That implementation of a change. 8. [ ] Any decision adopted according to balance the need for expediency implementation date shall balance That implementation date shall this Article shall specify the date of with practical considerations, the need for expediency with balance the need for expediency implementation of a change. That including forward trade of practical considerations, including with practical considerations, implementation date shall balance the need electricity. The Commission forward trade of electricity. including forward trade of for expediency with practical considerations, may define appropriate Appropriate transitional electricity and shall not be less including forward trade of electricity [ ]. transitional arrangements as arrangements may be defined as than 12 months after the The [ ] decision may define appropriate part of its decision. part of the decision. decision is published unless transitional arrangements [ ]. otherwise agreed with the relevant Member States. The [ ] decision may define appropriate transitional arrangements [ ].

ANNEX I TREE.2.B EN

• 262. 

  AM 74 Council compromise proposal:

  Article 13 – paragraph 8 a (new) [ ] 8a. Where further bidding zone (covered by line 259) reviews are launched under point (a), (b) or (c) of Article 32(1) of Regulation (EU) 2015/1222, paragraphs 4 to 8 of this Article shall apply.

• 263. 

  Article 14 General principles of capacity allocation and congestion management

• 264. 

  1. Network congestion

  problems shall be addressed 1. Network congestion

  Council compromise proposal (COM):

  with non-discriminatory problems shall be addressed market-based solutions which with non-discriminatory market

• 1. 

  Network congestion problems shall be

  give efficient economic signals based solutions which give

  addressed with non-discriminatory marketto

  the market participants and efficient economic signals to the

  based solutions which give efficient

  transmission system operators market participants and

  economic signals to the market participants

  involved. Network congestion transmission system operators

  and transmission system operators involved.

  problems shall be solved with involved. Network congestion

  Network congestion problems shall be

  non-transaction based methods, problems shall be solved with

  solved with non-transaction based methods,

  i.e. methods that do not involve non-transaction based methods,

  i.e. methods that do not involve a selection

  a selection between the i.e. methods that do not involve

  between the contracts of individual market

  contracts of individual market a selection between the contracts

  participants. When taking operational

  participants. When taking of individual market measures to ensure that its transmission operational measures to ensure participants. When taking system remains in the normal state, the that its transmission system operational measures to ensure transmission system operator shall take into remains in the normal state, the that its transmission system account the effect of those measures on transmission system operator remains in the normal state, the neighbouring control areas and coordinate shall take into account the transmission system operator such measures with other affected effect of those measures on shall take into account the effect transmission system operators as provided neighbouring control areas and of those measures on for in Regulation (EU) 1222/2015 i.

  coordinate such measures with neighbouring control areas and other affected transmission coordinate such measures with system operators as provided other affected transmission for in Regulation (EU) system operators [as provided 1222/2015. for in [ ] the capacity

ANNEX I TREE.2.B EN

allocation and congestion management guideline adopted on the basis of Article 18 of Regulation (EU) 714/2009].

• 265. 

  2. Transaction curtailment 2. Transaction curtailment No change: procedures shall only be used in procedures shall only be used in 2. Transaction curtailment procedures emergency situations where the emergency situations where the shall only be used in emergency situations transmission system operator transmission system operator where the transmission system operator must must act in an expeditious must act in an expeditious act in an expeditious manner and remanner and re-dispatching or manner and re-dispatching or dispatching or countertrading is not possible. countertrading is not possible. countertrading is not possible. Any such procedure shall be applied in a Any such procedure shall be Any such procedure shall be non-discriminatory manner. Except in cases applied in a non-discriminatory applied in a non-discriminatory of force majeure, market participants who manner. Except in cases of manner. Except in cases of force have been allocated capacity shall be force majeure, market majeure, market participants compensated for any curtailment. participants who have been who have been allocated

  allocated capacity shall be capacity shall be compensated compensated for any for any curtailment. curtailment.

• 266. 

  2a. Transmission system

  operators may decide not to Council compromise proposal: implement the coordinated 2a. Regional coordination centres shall

  actions issued by the regional perform coordinated capacity calculation

  security coordinator of the as provided for in article 34(1)(a) in

  system operation region, or the accordance with paragraphs 3 and 7 regional security coordinator pursuant to the process set out in Article himself may reduce the 38(1). capacities calculated in the [ ] coordinated capacity They shall calculate cross-zonal capacities calculation in their respecting operational security limits coordinated actions where the using data from transmission system outcome of the coordinated operators including the technical capacity calculation, carried availability of remedial actions, except out pursuant to the capacity load shedding. Where regional

ANNEX I TREE.2.B EN

allocation and congestion coordination centres conclude that all management guideline and available remedial actions in the capacity paragraphs 3 and 7, would calculation region or between capacity result in a violation of the calculation regions are not sufficient to operational security limits reach the threshold in Article 14(7) while defined by the transmission respecting operational security limits, they system operator in accordance may, as a measure of last resort, set out with the System Operation coordinated actions reducing the cross Guideline adopted on the basis zonal capacities accordingly. of Article 18 of Regulation 714/2009, for example in case Transmission system operators may only of insufficient redispatch deviate from coordinated actions in potential within the capacity respect of coordinated capacity calculation region. Such a calculation and coordinated security deviation shall be duly analysis in accordance with Article 38(2). justified by the relevant transmission system operators. Every three months, the regional

The relevant transmission coordination centres shall report to the

system operators shall inform relevant national regulatory authorities

the Regional Security and the Agency on reductions and

Coordinators and the national deviations pursuant to this paragraph and regulatory authorities of the shall assess the incidences and make capacity calculation region of recommendations, if needed, on how to such deviation without undue avoid such deviations in the future. If the delay in accordance with Agency concludes that the prerequisites Article 38(2a) of this for a deviation pursuant to this paragraph Regulation. Once a year, the were not fulfilled or are of a structural Regional Security Coordinator nature, the Agency shall submit an shall report to the relevant opinion to the relevant national regulatory national regulatory authorities authorities and the Commission. The and the Agency on the relevant national regulatory authorities deviations pursuant to this shall take appropriate action against paragraph and shall assess the transmission system operators or regional incidences and analyse, if coordination centres pursuant to articles needed, how to avoid such 59 or 62 of the [recast Electricity

ANNEX I TREE.2.B EN

deviations in the future. If the Directive] if the prerequisites for a Agency comes to the deviation pursuant to this paragraph were conclusion that the not fulfilled. prerequisites for a deviation

pursuant to this paragraph Deviations of a structural nature shall be were not fulfilled are of a addressed taken into account in decisions structural nature, the Agency in the action plan pursuant to articles shall submit an opinion to the 13(6) or in an update of an already relevant regulatory authority existing action plan and 13a(5).

and the Commission. The regulatory authority shall take appropriate action against the transmission system operators if the prerequisites for a deviation pursuant to this paragraph were not fulfilled.

• 267. 

  3. The maximum capacity AM 75 3. Unless otherwise Council compromise proposal: of the interconnections and/or 3. The maximum capacity of provided in paragraphs 7, 7a, 3. [ ]The maximum level of capacity of the transmission networks the interconnections and/or the 7b, 7d and 2a the maximum the interconnections and/or the transmission affecting cross-border flows transmission networks affecting level of capacity of the networks affected by cross-border [ ] shall be made available to cross-border flows shall be made interconnections and/or the capacity shall be made available to market market participants, complying available to market participants, transmission networks affected participants, complying with safety standards with safety standards of secure complying with safety standards of by cross-border [ ] capacity of secure network operation. Counter-trading network operation. Countersecure network operation. Countershall be made available to and redispatch, including cross-border trading and redispatch, trading and redispatch, including market participants, complying redispatch, shall be used to [ ] maximise including cross-border cross-border redispatch, shall be with safety standards of secure available capacities to reach the minimum redispatch, shall be used to used to maximise available network operation. Counterlevels pursuant to paragraph 7 [ ] and a maximise available capacities capacities unless it is demonstrated trading and redispatch, including coordinated and non-discriminatory unless it is demonstrated that it that it is not beneficial to economic cross-border redispatch, shall be process for cross-border remedial actions is not beneficial to economic efficiency at Union level. used to optimize available shall be applied to enable this, following efficiency at Union level. When allocating cost of remedial capacities [ ] and a the implementation of a re-dispatching actions between transmission coordinated and nonand counter-trading cost sharing system operators, regulators shall discriminatory process for methodology [ ].

analyse to what extent cross-border remedial actions

unscheduled flows leaving and reshall be applied to enable this,

ANNEX I TREE.2.B EN

entering a bidding zone contribute following the implementation to the congestion observed of the re-dispatching and between two bidding zones and countertrading cost sharing allocate the counter-trading and methodology in accordance redispatch costs in proportion to with the capacity allocation their contribution to the and congestion management congestion. guideline adopted on the basis of Article 18 of Regulation (EU) 714/2009.

• 268. 

  4. Capacity shall be 4. Capacity shall be No change: allocated only by means of allocated only by means of 4. Capacity shall be allocated only by explicit capacity auctions or explicit capacity auctions or means of explicit capacity auctions or implicit auctions including both implicit auctions including both implicit auctions including both capacity and capacity and energy. Both capacity and energy. Both energy. Both methods may coexist on the methods may coexist on the methods may coexist on the same interconnection. For intra-day trade same interconnection. For intrasame interconnection. For intracontinuous trading shall be used which may day trade continuous trading day trade continuous trading be complemented by auctions. shall be used, which may be shall be used which may be

  complemented by auctions. complemented by auctions. 269. 5. The highest value bids, 5. In case of congestion, the Council compromise proposal (GA):

  whether implicit or explicit in a valid highest value bids for given timeframe, shall be network capacity, whether 5. In case of congestion, the valid successful. Other than in the implicit or explicit, offering the highest value bids for network capacity, case of new interconnectors highest value for the (scarce) whether implicit or explicit, offering the which benefit from an transmission capacity in a highest value for the (scarce) transmission exemption under Article 7 of given timeframe, shall be capacity in a given timeframe, shall be Regulation (EC) No 1228/2003 i, successful. Other than in the successful. Other than in the case of new Article 17 Regulation 714/2009 i case of new interconnectors interconnectors which benefit from an or Article 59, establishing which benefit from an exemption under Article 7 of Regulation reserve prices in capacityexemption under Article 7 of (EC) No 1228/2003, Article 17 Regulation allocation methods shall not be Regulation (EC) No 1228/2003 i, 714/2009 i or Article 59, establishing reserve allowed. Article 17 Regulation 714/2009 i prices in capacity-allocation methods shall

  or Article 59, establishing

  reserve prices in capacitynot be allowed.

  allocation methods shall not be allowed.

ANNEX I TREE.2.B EN

• 270. 

  6. Capacity shall be freely 6. Capacity shall be freely No change: tradable on a secondary basis, tradable on a secondary basis, 6. Capacity shall be freely tradable on a provided that the transmission provided that the transmission secondary basis, provided that the system operator is informed system operator is informed transmission system operator is informed sufficiently in advance. Where sufficiently in advance. Where a sufficiently in advance. Where a a transmission system operator transmission system operator transmission system operator refuses any refuses any secondary trade refuses any secondary trade secondary trade (transaction), this shall be (transaction), this shall be (transaction), this shall be clearly and transparently communicated and clearly and transparently clearly and transparently explained to all the market participants by communicated and explained to communicated and explained to that transmission system operator and all the market participants by all the market participants by notified to the regulatory authority. that transmission system that transmission system

  operator and notified to the operator and notified to the regulatory authority. regulatory authority.

• 271. 

  7. Transmission system AM 76 7. Transmission system Council compromise proposal: operators shall not limit the 7. Transmission system operators shall not limit the 7. Transmission system operators shall not volume of interconnection operators shall not limit the volume volume of interconnection limit the volume of interconnection capacity capacity to be made available to of interconnection capacity to be capacity to be made available to to be made available to [ ] market other market participants in made available to other market [ ] market participants in order participants in order to solve congestion order to solve congestion inside participants in order to solve to solve congestion inside their inside their own bidding zone or as a their own control area or as a congestion inside their own control own bidding zone or as a means of managing flows [ ] resulting means of managing flows on a area or as a means of managing means of managing flows from transaction internal to bidding zones border between two control flows on a border between two leaving and re-entering the [ ].

  areas observed even without control areas observed even same bidding zone without any transaction, that is to say without any transaction, that is to being scheduled unless flows over control areas caused say flows over control areas caused otherwise provided under by origin and destination within by origin and destination within paragraph 7a or 7b. one control area. one control area.

ANNEX I TREE.2.B EN

• 272. 

  Without prejudice to the forth Without prejudice to the Council compromise proposal: subparagraph of Article 13(5), this application of the derogations Without prejudice to the application of paragraph shall be considered to under paragraph 7a and 7b, the derogations under paragraphs 2a and be complied with if the following this paragraph shall be 7b and to the application of article 13a(2), minimum levels of available considered to be complied with this paragraph shall be considered to be capacity for cross-zonal trade, if the following minimum complied with if the following minimum which is calculated pursuant to levels of available capacity for levels of available capacity for cross-zonal the capacity allocation and cross-zonal trade, which is trade [ ] are reached:

  congestion management guideline calculated pursuant to the adopted on the basis of Article 18 capacity allocation and of Regulation (EU) 714/2009 i congestion management taking account of contingencies, guideline adopted on the basis are reached: of Article 18 of Regulation (EU) 714/2009 taking account of N-1 criterion, are reached:

• 273. 

  (i) for borders using a (i) For borders using a Council compromise proposal: coordinated net transfer capacity coordinated net transmission (i) For borders using a coordinated net approach, if at least 75 % of the capacity approach, 75% of the transmission capacity approach, the net transfer capacity pursuant to net transfer capacity pursuant minimum level shall be 75% of the net capacity allocation and congestion to capacity allocation and transmission [ ] capacity [ ] respecting management guideline are made congestion management operational security limits after deduction available for cross-border trade; guideline adopted on the basis of contingencies and reliability margins, of Article 18 of the Regulation as determined according to the capacity 714/2009; allocation and congestion management

  guideline adopted on the basis of Article 18 of the Regulation 714/2009 i;

• 274. 

  (ii) for borders using a flow(ii) For borders using a Council compromise proposal: based approach, if on cross-zonal flow-based approach, 75% of (ii) For borders using a flow-based and internal critical network the remaining available approach, the minimum level shall be a elements considered in the flowmargin on internal and cross margin set in the capacity calculation based calculation at least 75 % of border critical network process as available for flows induced by the thermal capacity after elements made available for cross-zonal exchange. The margin shall be reduction of the amount required cross border flows pursuant to 75% of the [ ] capacity respecting to secure the N-1 principle capacity allocation and operational security limits of internal and pursuant to the capacity allocation congestion management cross-zonal [ ] critical network elements

ANNEX I TREE.2.B EN

and congestion management guideline adopted on the basis after deduction of reliability margins and guideline is used as an input for of Article 18 of the Regulation taking into account contingencies, as capacity allocation. 714/2009. determined according to the capacity allocation and congestion management guideline adopted on the basis of Article 18 of the Regulation 714/2009 i.

• 275. 

  The derogations pursuant to Council compromise proposal: paragraph 7a shall not result For the purpose of this paragraph the with a value below this reliability margins shall not be higher threshold. than [10]%.

• 276. 

  7a. Based on a proposal by Provisionally agreed in TM: all transmission system [ ]

  operators of a capacity calculation region , the relevant regulatory authorities by way of derogation from paragraph 7 shall approve the level of total available crosszonal capacity at each bidding zone border, which shall be used in the capacity calculation methodology, to take account of cross-zonal unscheduled flows to the extent that could be expected without structural congestions in a bidding zone.

• 277. 

  Upon request by a transmission 7b. Upon request by [ ] Council compromise proposal: system operator, the relevant transmission system operators of 7b. Upon request by [ ] transmission system regulatory authority may grant a capacity calculation region [ operators of a capacity calculation region [ a derogation from the first ] the relevant regulatory ] the relevant regulatory authorities may

  subparagraph where it is

necessary for maintaining authorities may grant a grant a derogation from [ ] paragraph 7 for

operational security or where it derogation from [ ] paragraph foreseeable reasons where it is necessary is beneficial to economic 7 for foreseeable reasons where for maintaining operational security [ ]. efficiency at Union level. Such it is necessary for maintaining Such a derogation, which may not relate to

ANNEX I TREE.2.B EN

a derogation, which may not operational security [ ] other curtailment of already allocated capacities

relate to curtailment of already than the ones covered under pursuant to paragraph 2, shall be limited [ ] allocated capacities pursuant to paragraph 7a, for instance in to one year at a time, or up to maximum

paragraph 5, shall be limited in

time, strictly limited to what is case of grid maintenance two years with a significantly decreasing necessary, and avoid measures. Such a derogation, level of the derogation each year, be discrimination between internal which may not relate to strictly limited to what is necessary, and and cross-zonal exchanges. curtailment of already allocated avoid discrimination between internal and Before granting a derogation, capacities pursuant to paragraph cross-zonal exchanges. Before granting a

the relevant regulatory authority 5, shall be limited [ ] to one derogation, the relevant regulatory

shall consult the regulatory year at a time, or up to authority shall consult the regulatory authorities of other Member maximum two years with a authorities of other Member States States forming part of an significantly decreasing level forming part of an affected capacity affected capacity calculation of the derogation each year, be calculation region. In case a regulatory region. In case a regulatory strictly limited to what is authority disagrees with the proposed authority disagrees with the necessary, and avoid derogation, the Agency shall decide on the proposed derogation, the discrimination between internal derogation pursuant to Article 6(8)(a) Agency shall decide on the and cross-zonal exchanges. [ ] [recast of Regulation (EC) No 713/2009 i as derogation pursuant to Article The justification and reasons for proposed by COM(2016) 863 i/2]. [ ] The 6(8)(a) [recast of Regulation the derogation shall be justification and reasons for the derogation (EC) No 713/2009 as proposed published. Where a derogation is shall be published. Where a derogation is

by COM(2016) 863 i/2]. The

justification and reasons for the granted, the relevant granted, the relevant transmission system derogation shall be published. transmission system operators operators shall develop and publish a

Where a derogation is granted, shall develop and publish a methodology and projects that shall provide the relevant transmission methodology and projects [ ] a long-term solution to the issue that the system operators shall develop that shall provide a long-term derogation seeks to address. The derogation and publish a methodology and solution to the issue that the shall expire when the time limit is reached projects that shall provide a derogation seeks to address. The or, once the solution is applied, whichever is long-term solution to the issue derogation shall expire when the earlier. that the derogation seeks to time limit is reached or, once the address. The derogation shall solution is applied, whichever is

expire when the time limit is earlier. reached or, once the solution is applied, whichever is earlier.

ANNEX I TREE.2.B EN

• 278. 

  8. Market participants shall 8. Market participants shall No change: inform the transmission system inform the transmission system 8. Market participants shall inform the operators concerned a operators concerned a transmission system operators concerned a reasonable time in advance of reasonable time in advance of reasonable time in advance of the relevant the relevant operational period the relevant operational period operational period whether they intend to use whether they intend to use whether they intend to use allocated capacity. Any allocated capacity allocated capacity. Any allocated capacity. Any that will not be used shall be reattributed to allocated capacity that will not allocated capacity that will not the market, in an open, transparent and nonbe used shall be reattributed to be used shall be reattributed to discriminatory manner. the market, in an open, the market, in an open,

  transparent and nontransparent and nondiscriminatory manner. discriminatory manner.

• 279. 

  9. Transmission system 9. Transmission system No change: operators shall, as far as operators shall, as far as 9. Transmission system operators shall, technically possible, net the technically possible, net the as far as technically possible, net the capacity requirements of any capacity requirements of any capacity requirements of any power flows in power flows in opposite power flows in opposite opposite direction over the congested direction over the congested direction over the congested interconnection line in order to use that line interconnection line in order to interconnection line in order to to its maximum capacity. Having full regard use that line to its maximum use that line to its maximum to network security, transactions that relieve capacity. Having full regard to capacity. Having full regard to the congestion shall never be denied. network security, transactions network security, transactions

  that relieve the congestion shall that relieve the congestion shall never be denied. never be denied.

• 280. 

  10. The financial 10. The financial No change: consequences of failure to consequences of failure to 10. The financial consequences of failure honour obligations associated honour obligations associated to honour obligations associated with the with the allocation of capacity with the allocation of capacity allocation of capacity shall be attributed to shall be attributed to those who shall be attributed to those who those who are responsible for such a failure. are responsible for such a are responsible for such a Where market participants fail to use the failure. Where market failure. Where market capacity that they have committed to use, or, participants fail to use the participants fail to use the in the case of explicitly auctioned capacity, capacity that they have capacity that they have fail to trade on a secondary basis or give the committed to use, or, in the committed to use, or, in the case capacity back in due time, they shall lose the case of explicitly auctioned of explicitly auctioned capacity, rights to such capacity and pay a cost

ANNEX I TREE.2.B EN

capacity, fail to trade on a fail to trade on a secondary basis reflective charge. Any cost-reflective charges

secondary basis or give the or give the capacity back in due for the non-use of capacity shall be justified

capacity back in due time, they time, they shall lose the rights to and proportionate. If a transmission system

shall lose the rights to such such capacity and pay a costoperator does not fulfil its obligation, it shall

capacity and pay a costreflective charge. Any costbe liable to compensate the market

reflective charge. Any costreflective charges for the nonparticipant for the loss of capacity rights.

reflective charges for the nonuse of capacity shall be justified Consequential losses shall not be taken into

use of capacity shall be justified and proportionate. If a account for that purpose. The key concepts

and proportionate. If a transmission system operator and methods for the determination of

transmission system operator does not fulfil its obligation, it liabilities that accrue upon failure to honour

does not fulfil its obligation, it shall be liable to compensate the obligations shall be set out in advance in

shall be liable to compensate market participant for the loss of respect of the financial consequences, and

the market participant for the capacity rights. Consequential shall be subject to review by the relevant [ ]

loss of capacity rights. losses shall not be taken into regulatory authority or authorities.

Consequential losses shall not account for that purpose. The

be taken into account for that key concepts and methods for

purpose. The key concepts and the determination of liabilities

methods for the determination that accrue upon failure to

of liabilities that accrue upon honour obligations shall be set

failure to honour obligations out in advance in respect of the

shall be set out in advance in financial consequences, and

respect of the financial shall be subject to review by the

consequences, and shall be relevant [ ] regulatory authority

subject to review by the or authorities.

relevant national regulatory

authority or authorities.

ANNEX I TREE.2.B EN

• 281. 

  11. When allocating costs of Council compromise proposal: remedial actions between 11. When allocating costs of remedial transmission system operators, actions between transmission system regulators shall analyse to operators, [ ] national regulatory what extent flows leaving and authorities shall analyse to what extent re-entering a bidding zone flows [ ] resulting from transactions without being scheduled internal to bidding zones contribute to the contribute to the congestion congestion between two bidding zones between two bidding zones observed, and allocate the costs [ ] based observed, and allocate the on the contribution to the congestion, [ ] costs in proportion to the except for costs induced by flows [ ] contribution to the congestion resulting from transactions internal to in line with re-dispatching and bidding zones to the extent that could be countertrading cost sharing expected without structural congestion in methodology in accordance a bidding zone. For this purpose, all with the capacity allocation transmission system operators of a and congestion management capacity calculation region shall jointly guideline adopted on the basis establish a maximum level of expected of Article 18 of Regulation flows resulting from transactions internal (EU) 714/2009 and Article 76 to bidding zones, applicable to all bidding of Commission Regulation zone borders of the capacity calculation (EU) 2017/XYZZ. This shall region, which shall be approved by all not apply to the threshold national regulatory authorities of the pursuant to paragraph 7a. capacity calculation region.

ANNEX I TREE.2.B EN

• 282. 

  Article 15 Allocation of cross-zonal capacity across timeframes

• 283. 

  1. Transmission system No change:

  operators shall recalculate 1. Transmission system available cross-zonal capacity operators shall recalculate 1. Transmission system operators shall at least after day-ahead and available cross-zonal capacity at recalculate available cross-zonal capacity at after intraday cross-zonal gate least after day-ahead and after least after day-ahead and after intraday closure times. Transmission intraday cross-zonal gate closure cross-zonal gate closure times. Transmission system operators shall allocate times. Transmission system system operators shall allocate the available the available cross-zonal operators shall allocate the cross-zonal capacity plus any remaining capacity plus any remaining available cross-zonal capacity cross-zonal capacity not previously allocated cross-zonal capacity not plus any remaining cross-zonal and any cross-zonal capacity released by previously allocated and any capacity not previously allocated physical transmission right holders from cross-zonal capacity released by and any cross-zonal capacity previous allocations in the next cross-zonal physical transmission right released by physical capacity allocation process. holders from previous transmission right holders from allocations in the next crossprevious allocations in the next zonal capacity allocation cross-zonal capacity allocation process. process.

• 284. 

  1a. Transmission system Council compromise proposal (GA): operators shall define an 1a. Transmission system operators shall appropriate structure for the define an appropriate structure for the allocation of cross-zonal allocation of cross-zonal capacity across capacity across timeframes, timeframes, including day-ahead, intraday including day-ahead, intraday and balancing. Such an allocation and balancing. Such an structure shall be subject to review by the allocation structure shall be respective regulatory authorities. In subject to review by the drawing up their proposal, the TSOs shall respective regulatory take into account:

  authorities. In drawing up their proposal, the TSOs shall take into account:

ANNEX I TREE.2.B EN

• 285. 

  a) the characteristics of the Council compromise proposal (GA): markets; a) the characteristics of the markets;

• 286. 

  b) the operational Council compromise proposal (GA): condition, such as the b) the operational condition, such as implications of netting firmly the implications of netting firmly declared declared schedules; schedules;

• 287. 

  c) the level of Council compromise proposal (GA): harmonisation of the c) the level of harmonisation of the percentages and timeframes percentages and timeframes adopted for adopted for the different the different cross-zonal capacity cross-zonal capacity allocation allocation mechanisms in place.

  mechanisms in place. 288. 2. When cross-zonal 2. When cross-zonal No change:

  capacity is available after the capacity is available after the intraday cross-zonal gate intraday cross-zonal gate closure 2. When cross-zonal capacity is available closure time, transmission time, transmission system after the intraday cross-zonal gate closure system operators shall use the operators shall use the crosstime, transmission system operators shall use cross-zonal capacity for the zonal capacity for the exchange the cross-zonal capacity for the exchange of exchange of balancing energy of balancing energy or for balancing energy or for operating the or for operating the imbalance operating the imbalance netting imbalance netting process. netting process. process.

ANNEX I TREE.2.B EN

• 289. 

  3. Transmission system 3. Where cross-zonal Council compromise proposal: operators shall use the capacity is allocated for the 3. Where cross-zonal capacity is methodologies developed in exchange of balancing capacity allocated for the exchange of balancing network codes and guidelines or sharing of reserves capacity or sharing of reserves pursuant on balancing, where applicable, pursuant to Article 5(8), to Article 5(8), transmission system to allocate cross-zonal capacity transmission system operators operators shall use the methodologies for the exchange of balancing shall use the methodologies developed in network codes and guidelines capacity or sharing of reserves developed in [ ] accordance on balancing. [ ] accordance with the pursuant to Article 5(4) and (7). with the balancing guideline balancing guideline adopted on the basis adopted on the basis of Article of Article 18 of the Regulation 714/2009 i. 18 of the Regulation 714/2009 i.

• 290. 

  4. Transmission system

  operators shall not increase the 4. Transmission system

  No change:

  reliability margin calculated operators shall not increase the pursuant to Regulation (EU) reliability margin calculated

  • 4. 

    Transmission system operators shall

  2015/1222 due to the exchange pursuant to Regulation (EU)

  not increase the reliability margin calculated

  of balancing capacity or sharing 2015/1222 due to the exchange

  pursuant to Regulation (EU) 2015/1222 due to the exchange of balancing capacity or

  of reserves. of balancing capacity or sharing of reserves. sharing of reserves.

ANNEX I TREE.2.B EN

• 291. 

  Section 2 Network charges and congestion income

• 292. 

  Article 16 AM 77 Article 16 Provisionally agreed in TM: Charges for access to networks Charges for access to networks, use Charges for connection and Article 16

  of networks and reinforcement access to networks Charges for access to networks, use of networks and reinforcement

• 293. 

  1. Charges applied by AM 78

  network operators for access to 1. Charges applied by network 1. Charges applied by

  Provisionally agreed in TM:

  networks, including charges for operators for access to networks , network operators for access to

  • 1. 

    Charges applied by network operators

  connection to the networks, including charges for connection to networks, including charges for

for access to networks, including charges for

charges for use of networks, the networks, charges for use of connection to the networks,

connection to the networks, charges for use

and, where applicable, charges networks, and, where applicable, charges for use of networks, and,

of networks, and, where applicable, charges

for related network charges for related network where applicable, charges for

for related network reinforcements, shall be

reinforcements, shall be reinforcements, shall be fair, costrelated network reinforcements,

cost-reflective, transparent, take into

transparent, take into account reflective, transparent, take into shall be transparent, take into

account the need for network security and

the need for network security account the need for network account the need for network

flexibility and reflect actual costs incurred

and flexibility and reflect actual security and flexibility and reflect security and flexibility and

insofar as they correspond to those of an

costs incurred insofar as they actual costs incurred insofar as they reflect actual costs incurred

efficient and structurally comparable

correspond to those of an correspond to those of an efficient insofar as they correspond to

network operator and are applied in a nonefficient

and structurally and structurally comparable those of an efficient and

discriminatory manner. [ ] These charges

comparable network operator network operator and are applied in structurally comparable network

shall not include unrelated costs

and are applied in a nona non-discriminatory manner. Grid operator and are applied in a

supporting unrelated policy objectives.

discriminatory manner. In tariffs shall not include unrelated non-discriminatory manner. [ ]

Without prejudice to Article 15(1) and (6)

particular, they shall be applied costs supporting other policy Without prejudice to Article

and the criteria in Annex XI of Directive

in a way which does not objectives, such as taxes or levies, 15(1) and (6) and the criteria

2012/27/EU the method used to develop the network charges shall neutrally

discriminate between as this would distort production, in Annex XI of Directive support overall system efficiency in the production connected at the consumption and investment 2012/27/EU the method used long run through price signals to distribution level and decisions. In particular, they shall to develop the network consumers and producers and in production connected at the neutrally support overall system charges shall in particular be particular be applied in a way which does transmission level, either efficiency in the long run through applied in a way which does not not discriminate between production positively or negatively. They price signals to consumers and discriminate between production shall not discriminate against producers and they shall as far as connected at the distribution

connected at the distribution level and

energy storage and shall not possible be applied in a way which level and production connected

production connected at the transmission

create disincentives for does not discriminate between at the transmission level, either

level, either positively or negatively. They

participation in demand production connected at the positively or negatively. They

shall not unduly discriminate either

shall not unduly discriminate positively or negatively against energy

ANNEX I TREE.2.B EN

response. Without prejudice to distribution level and production either positively or negatively storage and aggregation and shall not create paragraph 3, those charges shall connected at the transmission level, against energy storage and shall disincentives for self-generation, selfnot be distance-related. either positively or negatively. not create disincentives for consumption and for participation in They shall not discriminate against participation in demand demand response. Without prejudice to energy storage and aggregation response. Without prejudice to paragraph 3, those charges shall not be and shall not create disincentives paragraph 3, those charges shall distance-related. for self-generation, selfnot be distance-related. consumption and for participation in demand response. Without prejudice to paragraph 3, those charges shall not be distancerelated.

• 294. 

  2. Tariffs shall grant AM 79

  appropriate incentives to 2. Tariffs shall grant 2. Tariff methodologies

  Provisionally agreed in TM:

  transmission and distribution appropriate incentives to shall [ ] reflect appropriate system operators, over both the transmission and distribution incentives and fixed costs of

  • 2. 

    Tariff methodologies shall [ ] reflect provide appropriate incentives and reflect

  short and long term, to increase system operators, over both the transmission and distribution fixed costs of transmission and distribution efficiencies, including energy short and long term, to increase system operators. The allowed system operators. The allowed revenues to efficiency, foster market efficiencies, including energy revenues to be recovered be recovered through tariffs shall reflect integration and security of efficiency, foster market through tariffs shall reflect appropriate incentives to transmission supply, and support investments integration and security of supply, appropriate incentives to and distribution system operators over and the related research and global competitiveness, and transmission and distribution both the short and long term, to increase activities. support efficient investments, in system operators over both the particular in digitalisation, short and long term, to increase

  efficiencies, including energy efficiency,

  flexibility services and efficiencies, including energy

  foster market integration, [ ] security of

  interconnections, and the related efficiency, foster market

  supply, and support efficient investments, [

  research activities. Tariffs shall integration, [ ] security of

  ] the related research activities and

not create disincentives for energy supply, and support investments,

facilitate innovation in the consumer's

storage, demand response or self[ ] the related research

interest in areas such as digitalisation,

generation production. activities and facilitate

flexibility services and interconnection.

innovation in the consumer's interest.

ANNEX I TREE.2.B EN

• 295. 

  3. Where appropriate, the 3. Where appropriate, the No change: level of the tariffs applied to level of the tariffs applied to 3. Where appropriate, the level of the producers and/or consumers producers and/or consumers tariffs applied to producers and/or consumers shall provide locational signals shall provide locational signals shall provide locational signals at Union at Union level, and take into at Union level, and take into level, and take into account the amount of account the amount of network account the amount of network network losses and congestion caused, and losses and congestion caused, losses and congestion caused, investment costs for infrastructure. and investment costs for and investment costs for

  infrastructure. infrastructure. 296. 4. When setting the charges 4. When setting the charges No change:

  for network access, the for network access, the 4. When setting the charges for network following shall be taken into following shall be taken into access, the following shall be taken into account: account: account:

• 297. 

  (a) payments and receipts (a) payments and receipts No change: resulting from the interresulting from the inter(a) payments and receipts resulting from transmission system operator transmission system operator the inter-transmission system operator compensation mechanism; compensation mechanism; compensation mechanism;

• 298. 

  (b) actual payments made (b) actual payments made and No change: and received as well as received as well as payments (b) actual payments made and received as payments expected for future expected for future periods of well as payments expected for future periods periods of time, estimated on time, estimated on the basis of of time, estimated on the basis of past the basis of past periods. past periods. periods.

• 299. 

  5. Setting the charges for 5. Setting the charges for No change: network access under this network access under this 5. Setting the charges for network access Article shall be without Article shall be without under this Article shall be without prejudice prejudice to charges resulting prejudice to charges resulting to charges resulting from congestion from congestion management from congestion management management referred to in Article 14. referred to in Article 14. referred to in Article 14.

• 300. 

  6. There shall be no specific Council compromise proposal:

  network charge on individual 6. There shall be no specific transactions for cross-border network charge on individual

  • 6. 

    There shall be no specific network

  trade of electricity. transactions for cross-[ ] zonal

  charge on individual transactions for crosstrade

   of electricity. [ ] zonal trade of electricity.

ANNEX I TREE.2.B EN

• 301. 

  7. Distribution tariffs shall AM 80

  reflect the cost of use of the 7. Transmission and 7. Distribution tariffs shall

  Provisionally agreed in TM:

  distribution network by system distribution tariffs shall be costreflect the cost of use of the users including active reflective by taking into account distribution network by system 7. Distribution tariffs shall reflect the customers, and may be the investment cost, added value of users including active cost of be cost-reflective taking into differentiated based on system distributed generation, flexibility, customers, and may be account the use of the distribution network users' consumption or digitalisation, demand response, differentiated based on system by system users including active customers, generation profiles. Where storage and use of the users' consumption or generation may contain network connection capacity Member States have transmission and distribution profiles. Where Member States elements and may be differentiated based on implemented the deployment of network by system users including have implemented the system users' consumption or generation smart metering systems, active customers, may contain grid deployment of smart metering profiles. Where Member States have regulatory authorities may connection capacity elements and systems, [ ] time differentiated implemented the deployment of smart introduce time differentiated may be differentiated based on network tariffs may be metering systems, [ ] time differentiated network tariffs, reflecting the system users' consumption or introduced, reflecting the use of network tariffs shall be considered by use of the network, in a generation profiles. Where Member the network, in a transparent and national regulatory authorities when transparent and foreseeable way States have implemented the foreseeable way for the fixing or approving transmission and for the consumer. deployment of smart metering consumer. distribution tariffs or their methodologies systems, competent regulatory in line with article 59(6) of the [Electricity authorities shall introduce time Directive] and, where appropriate, may be differentiated network tariffs, introduced, reflecting the use of the reflecting the use of the network, in network, in a transparent, cost efficient and a transparent and foreseeable and foreseeable way for the consumer.

  cost efficient way for the consumer. Member States shall

  ensure that tariffs are not (see also above para 2)

  discriminatory.

ANNEX I TREE.2.B EN

• 302. 

  8. Regulatory authorities AM 81

  shall provide incentives to 8. Regulatory authorities shall 8. [ ] The allowed revenues

  Provisionally agreed in TM:

  distribution system operators to provide incentives to distribution to be covered through procure services for the system operators for the most distribution tariffs may include

  • 8. 

    Regulatory authorities Distribution

  operation and development of efficient operation and performance targets in order to

  tariff methodologies shall provide

  their networks and integrate development of their networks and incentivise distribution system

  incentives to distribution system operators

  innovative solutions in the integrate innovative solutions in the operators [ ] to operate their

  for the most cost-efficient operation and

  distribution systems. For that distribution systems, including networks as efficiently as

development of their networks and integrate

purpose regulatory authorities through the procurement of possible.

innovative solutions in the distribution systems, including through the

shall recognise as eligible and services. For that purpose procurement of services. For that purpose include all relevant costs in regulatory authorities shall regulatory authorities shall recognise as distribution tariffs and recognise as eligible and include all eligible and include all relevant costs in introduce performance targets relevant costs in distribution tariffs distribution tariffs and may introduce in order to incentivise and introduce performance targets performance targets in order to incentivise distribution system operators to in order to incentivise distribution distribution system operators to raise raise efficiencies, including system operators to raise efficiencies, including through energy energy efficiency, in their efficiencies, including energy efficiency, flexibility and the development networks. efficiency, flexibility and the of smart grids and intelligent metering digitalisation of the distribution systems, in their networks. networks including the deployment of smart grids and intelligent metering systems, in their networks.

ANNEX I TREE.2.B EN

• 303. 

  9. By [OP: please add AM 82 9. By [OP: please add Provisionally agreed in TM (GA): specific date – three months 9. By [OP: please add specific specific date – three months

  after entry into force] the date – three months after entry into after entry into force] to 9. By [OP: please add specific date – Agency shall provide a force] the Agency shall evaluate mitigate the risk of market three months after entry into force] to recommendation addressed to the feasibility on the convergence fragmentation the Agency shall mitigate the risk of market fragmentation regulatory authorities on the of transmission and distribution provide a [ ] best practice the Agency shall provide a [ ] best practice progressive convergence of tariff methodologies. The report on [ ] transmission and report on [ ] transmission and distribution transmission and distribution feasibility study shall address at distribution tariff methodologies tariff methodologies while leaving sufficient tariff methodologies. That least: while leaving sufficient room room to take national specificities into recommendation shall address to take national specificities account. That [ ] best practice report shall at least: into account. That [ ] best address at least: practice report shall address at least:

• 304. 

  (a) the ratio of tariffs applied (a) the ratio of tariffs applied No change: to producers and to consumers; to producers and to consumers; (a) the ratio of tariffs applied to producers and to consumers;

• 305. 

  (b) the costs to be recovered (b) the costs to be recovered No change: by tariffs; by tariffs; (b) the costs to be recovered by tariffs;

• 306. 

  (c) time differentiated (c) time differentiated No change: network tariffs; network tariffs; (c) time differentiated network tariffs;

• 307. 

  (d) locational signals; (d) locational signals; No change:

  (d) locational signals; 308. (e) the relationship between (e) the relationship between Provisionally agreed in TM (GA):

  transmission and distribution transmission and distribution (e) the relationship between transmission tariffs, including principles tariffs, [ ] and distribution tariffs, [ ] relating to non-discrimination;

• 309. 

  (f) methods to ensure (f) methods to ensure No change: transparency in the setting and transparency in the setting and (f) methods to ensure transparency in the structure of tariffs; structure of tariffs; setting and structure of tariffs;

• 310. 

  (g) groups of network users AM 83 (g) groups of network users Provisionally agreed in TM (GA): subject to tariffs, including (g) groups of network users subject to tariffs, including tariff (g) groups of network users subject to tariff exemptions. subject to tariffs according to exemptions. tariffs including, where applicable, their characteristics and forms of characteristics, forms of consumption, and consumption, including tariff any tariff exemptions.

  exemptions

ANNEX I TREE.2.B EN

310a. (e) losses in high, medium and low-voltage grids; (moved from line 317)

• 311. 

  The Agency shall update its Provisionally agreed in TM (GA): report at least once every two The Agency shall update its report at least years. once every two years.

• 312. 

  AM 84 Provisionally agreed in TM:

  Article 16 – paragraph 9 a (new) [ ] 9a. Regulatory authorities shall adopt a set of indicators for measuring the performance of transmission and distribution system operators, which should at least include all of the following:

• 313. 

  (a) volume of curtailed energy in Provisionally agreed in TM:

  MWh, disaggregated per type of [ ] generation source;

• 314. 

  (b) percentage of the length of Provisionally agreed in TM: lines operated under dynamic line [ ]

  ratings; 315. (c) percentage of substations Provisionally agreed in TM:

  remotely monitored and controlled [ ] in real-time;

• 316. 

  (d) percentage of the length of Provisionally agreed in TM: lines operated under dynamic line [ ]

  ratings; 317. (e) losses in high, medium and Provisionally agreed in TM:

  low-voltage grids; [ ] Moved to line 310a. 318. (f) the frequency and duration of Provisionally agreed in TM:

  power interruptions on the grid. [ ]

ANNEX I TREE.2.B EN

• 319. 

  By [two years after the entry into Provisionally agreed in TM: force of this Regulation], and [ ]

  every two years thereafter, regulatory authorities shall publish a report on the performance of transmission and distribution system operators, together with recommendations for improvement where necessary.

• 320. 

  10. Without prejudice to [ ] Provisionally agreed in TM: further harmonisation by way

  of delegated acts pursuant to 10. [ ] Regulatory authorities shall take Article 55(1)(k), regulatory the best practice report duly into authorities shall take the consideration when approving or fixing Agency's recommendation duly transmission or distribution tariffs or into consideration when their methodologies in accordance with approving or fixing Article 59(6)(a) of [recast of Directive transmission tariffs or their 2009/72/EC as proposed by COM(2016) methodologies in accordance 864/2]. with Article 59(6)(a) of [recast of Directive 2009/72/EC i as proposed by COM(2016) 864 i/2].

• 321. 

  11. The Agency shall [ ] Provisionally agreed in TM: monitor the implementation of

  its recommendation and provide [ ] a report to the Commission by 31st January each year. It shall update the recommendation at least once every two years.

ANNEX I TREE.2.B EN

• 322. 

  Article 17 Congestion income

• 323. 

  1. Congestion-management 1. Congestion-management No change: procedures associated with a procedures associated with a

  pre-specified timeframe may pre-specified timeframe may 1. Congestion-management procedures generate revenue only in the generate revenue only in the associated with a pre-specified timeframe event of congestion which event of congestion which arises may generate revenue only in the event of arises for that timeframe, except for that timeframe, except in the congestion which arises for that timeframe, in the case of new case of new interconnectors except in the case of new interconnectors interconnectors which benefit which benefit from an which benefit from an exemption under from an exemption under exemption under Article 7 of Article 7 of Regulation (EC) No 1228/2003 i, Article 7 of Regulation (EC) No Regulation (EC) No 1228/2003 i, Article 17 of Regulation (EC) No 714/2009 i 1228/2003, Article 17 of Article 17 of Regulation (EC) or Article 59. The procedure for the Regulation (EC) No 714/2009 i No 714/2009 or Article 59. The distribution of those revenues shall be or Article 59. The procedure for procedure for the distribution of subject to review by the regulatory the distribution of those those revenues shall be subject authorities and shall neither distort the revenues shall be subject to to review by the regulatory allocation process in favour of any party review by the regulatory authorities and shall neither requesting capacity or energy nor provide a authorities and shall neither distort the allocation process in disincentive to reduce congestion. distort the allocation process in favour of any party requesting favour of any party requesting capacity or energy nor provide a capacity or energy nor provide disincentive to reduce a disincentive to reduce congestion. congestion.

ANNEX I TREE.2.B EN

• 324. 

  2. Any revenues resulting AM 85 2. Any revenues resulting Provisionally agreed in TM: from the allocation of 2. Any revenues resulting from from the allocation of 2. Any revenues resulting from the interconnection capacity shall the allocation of interconnection interconnection capacity shall be allocation of interconnection capacity shall be used for the following capacity shall be used for the used for the following purposes: be used as a priority for the following purposes: following purposes: purposes:

• 325. 

  (a) guaranteeing the actual (a) guaranteeing the actual (a) guaranteeing the actual Provisionally agreed in TM: availability of the allocated availability of the allocated availability of the allocated

  capacity; capacity; or capacity including firmness (a) guaranteeing the actual availability of

  compensation; the allocated capacity including firmness compensation; or

325a. Provisionally agreed in TM: (aa) by optimising the usage of existing interconnectors by coordinated remedial actions such as redispatch and countertrading, where applicable; or

• 326. 

  (b) maintaining or increasing (b) maintaining or increasing (b) maintaining or increasing Provisionally agreed in TM: interconnection capacities interconnection capacities through interconnection capacities

  through network investments, optimisation of the usage of through network investments, in (b) maintaining or increasing in particular in new existing interconnectors by particular in new interconnectors interconnection capacities through network interconnectors. coordinated remedial and and internal lines and internal investments, in particular in new countertrading actions or network lines which are listed in Ten interconnectors and internal lines relevant investments, up to the target value Years Network Development to reduce interconnector congestion. for transfer capacity at cross Plan of the ENTSO for are relevant to re listed in Ten Years border boundaries. Electricity as being relevant to Network Development Plan of the ENTSO reduce interconnector for Electricity as being relevant to reduce congestion, interconnector congestion:

• 327. 

  (c) or if applicable, cross Provisionally agreed in TM: border remedial actions such [ ]

  as redispatch and countertrading.

ANNEX I TREE.2.B EN

• 328. 

  If the revenues cannot be Where the objectives set out in 2a. [ ] The revenues [ ] may Provisionally agreed in TM: efficiently used for the purposes points (a) and (b) of the first be used, subject to the 2a. Where the priority objectives set out in set out in points (a) or (b) of the subparagraph are fulfilled, the approval by the regulatory paragraph 2 are adequately fulfilled, the first subparagraph, they shall be residual revenues may be used as authorities of the Member revenues may be used as income to be taken placed on a separate internal income to be taken into account by States concerned, as income to into account by the national regulatory account line for future use on the national regulatory authorities be taken into account by the authorities when approving the these purposes. when approving the methodology regulatory authorities when methodology for calculating network tariffs for calculating network tariffs approving the methodology for and/or fixing network tariffs. The residual and/or fixing network tariffs. calculating network tariffs revenues shall be placed on a separate and/or fixing network tariffs. internal account line until such time as it can be spent on the purposes set out in paragraph 2.

• 329. 

  3. The use of revenues in AM 86 3. The use of revenues in Provisionally agreed in TM: accordance with points (a) and 3. The use of revenues in accordance with points (a) [ ]

  (b) of paragraph 2 shall be accordance with [ ] paragraph 2 (b) or (c) of paragraph 2 shall be 3. The use of revenues in accordance subject to a methodology shall be subject to a methodology subject to a methodology with points (a) or (b) or (c) of paragraph 2 proposed by the Agency and proposed by the Agency and proposed [ ] by the shall be subject to a methodology proposed [ approved by the Commission. approved by the Commission. The transmission system operators ] by the transmission system operators The Agency's proposal shall be Agency's proposal shall be in consultation with regulatory after consultation of regulatory submitted to the Commission submitted to the Commission by authorities and approved by authorities and relevant stakeholders and by [OP: 12 months after entry [OP: 12 months after entry into the Agency. The transmission approved by the Agency. The into force] and be approved force] and be approved within six system operators shall submit transmission system operators shall within six months. months. the proposal to the Agency by submit the proposal to the Agency by [OP: [OP: 12 months after entry into 12 months after entry into force] and the force] and the Agency shall Agency shall decide on it within six decide on it within six months. months.

ANNEX I TREE.2.B EN

• 330. 

  The Agency may, at its own [ ] Provisionally agreed in TM: initiative or upon a request from The Agency may [ ] request transmission the Commission update the system operators to update the methodology and the methodology. The Agency shall approve the Commission shall approve the updated methodology not later than six updated methodology not later months from its submission. than six months from its

  submission. 331. Before submission to the [ ] Provisionally agreed in TM:

  Commission, the Agency shall consult on the methodology [ ] pursuant to Article 15 [recast of Regulation (EC) No 713/2009 i as proposed by COM(2016) 863 i/2].

• 332. 

  The methodology shall detail as The methodology shall detail as a 3a. The methodology shall Provisionally agreed in TM: a minimum the conditions minimum the conditions under detail as a minimum the

  under which the revenues can which the revenues can be used for conditions under which the The methodology shall detail as a minimum be used for points (a) and (b) of [ ] paragraph 2 and the conditions revenues [ ] are deemed to the conditions under which the revenues can paragraph 2 and the conditions under which, and for how long, have fulfilled the objectives be used for [ ] paragraph 2 and the under which, and for how long, they may be placed on a separate expressed in points (a) [ ] (b) conditions under which, and for how long, they may be placed on a internal account line for future use or (c) of paragraph 2 [ ]. they may be placed on a separate internal separate internal account line on those purposes. account line for future use on those purposes for future use on those purposes.

ANNEX I TREE.2.B EN

• 333. 

  4. Transmission system AM 87 3b. Transmission system Provisionally agreed in TM: operators shall clearly establish 4. Transmission system operators shall clearly establish

  beforehand how any congestion operators shall clearly establish beforehand how any congestion 3b. Transmission system operators shall income will be used, and report beforehand how any congestion income will be used, and report clearly establish beforehand how any on the actual use of that income will be used, and report on on the actual use of that income. congestion income will be used, and report income. On an annual basis, the actual use of that income. On On an annual basis, and by [ ] 1 on the actual use of that income. On an and by 31 July each year, the an annual basis, and by 31 July March each year, the [ ] annual basis, and by 31 July 1 March each national regulatory authorities each year, the national regulatory regulatory authorities shall year, the national regulatory authorities shall shall publish a report setting out authorities shall publish a report publish a report setting out the inform the Agency and publish a report the amount of revenue collected setting out the amount of revenue amount of revenue collected for setting out the amount of revenue collected for the 12-month period ending collected for the 12-month period the 12-month period ending on for the 12-month period ending on 31 June on 30 June of the same year and ending on 30 June of the same year 31 [ ] December of the [ ] December of the same previous calendar how that revenue was used, and how that revenue was used, previous calendar year and year and how that revenue was used including the specific projects including the specific projects the how that revenue was used pursuant to paragraph 2, including the the income has been used for or income has been used for the pursuant to paragraph 2, specific projects the income has been used the amount placed on a separate amount placed on a separate including the specific projects for the amount placed on a separate account account line, together with account line, or the amount that the income has been used for or line, or the amount that has been used when verification that that use has been used when calculating the amount placed on a separate calculating network tariffs, together with complies with this Regulation network tariffs, together with account line or the amount that verification that that use complies with this and the methodology developed verification that that use complies has been used when Regulation and the methodology developed pursuant to paragraph 3. with this Regulation. Where some calculating network tariffs, pursuant to paragraph 3. Where some of of the congestion revenues are together with verification that the congestion revenues are used when used when calculating network that use complies with this calculating network tariffs, the report tariffs, the report may set out the Regulation and the methodology shall set out how the TSOs fulfilled the fulfilment by the transmission developed pursuant to paragraph priority objectives in paragraph 2 where system operator of the 3. In such cases where some of applicable. commitment and balance sheet the congestion revenues are criteria pursuant to paragraph 2. used when calculating network tariffs, the report shall set out how the TSOs fulfilled the priority objectives in Article 2 where applicable.

ANNEX I TREE.2.B EN

• 334. 

  Chapter IV Resource adequacy

• 335. 

  AM 88 Article 18

  Resource adequacy and capacity Resource adequacy mechanisms

• 336. 

  1. Member States shall AM 89 1. Member States shall Council compromise proposal: monitor resource adequacy 1. Member States shall monitor monitor resource adequacy Member States shall monitor resource within their territory based on resource adequacy within their within their territory [ ] based adequacy within their territory [ ] based on the European resource territory based on the European on the European resource the European resource adequacy assessment adequacy assessment pursuant resource adequacy assessment adequacy assessment pursuant to pursuant to Article 19. [ ] For the purposes to Article 19. pursuant to Article 19 and shall Article 19 and may perform in of complementing the European resource publish a report on the results of addition national resource adequacy assessment, Member States may the monitoring. adequacy assessment pursuant in addition perform national resource to Article 19a. adequacy assessments pursuant to Article 19a.

• 337. 

  2. Where the European AM 90 2. Where the European or Council compromise proposal (aligned with resource adequacy assessment 2. Where the European the national resource adequacy paragraph 3):

  identifies a resource adequacy resource adequacy assessment assessments identify a resource 2. Where the European or the national concern Member States shall identifies a resource adequacy adequacy concern Member resource adequacy assessments identify a identify any regulatory concern Member States shall States shall identify any resource adequacy concern Member States distortions that caused or identify any regulatory distortions regulatory distortions or market shall identify any regulatory distortions

  contributed to the emergence of and/or market failures that caused distortions, or system and/or market [ ] failures that caused or the concern. or contributed to the emergence of bottlenecks such as insufficient contributed to the emergence of the

  the concern. infrastructure, that caused or

  contributed to the emergence of concern.

  the concern.

• 338. 

  3. Member States shall AM 91 3. Member States shall Council compromise (3 (a) - (g)): publish a timeline for adopting 3. A Member State with publish roadmap with a 3. [ ] Member States with identified

measures to eliminate any identified adequacy concerns shall concrete timeline for adopting adequacy concerns shall publish an

identified regulatory distortions. publish an implementation plan measures to eliminate any

When addressing resource with a timeline for adopting identified regulatory distortions [ implementation plan with a timeline for

adequacy concerns Member measures to eliminate any ] or market distortions, or adopting measures to eliminate any

States shall in particular identified regulatory distortions system bottlenecks. When identified regulatory distortions and/or

consider removing regulatory and/or market failures. When addressing resource adequacy market failures as a part of the State Aid

distortions, enabling scarcity addressing resource adequacy concerns Member States shall in process. When addressing resource

ANNEX I TREE.2.B EN

pricing, developing concerns, the Member States shall particular take into account the adequacy concerns, the Member States shall

interconnection, energy storage, build on the principles set out in principles defined in Article 3 [ ] in particular take into account the

demand side measures and Article 3 and in particular: and consider removing

energy efficiency. regulatory distortions, enabling principles set out in Article 3 and [ ]

scarcity pricing via free price consider:

formation , developing interconnections with other Member States, allowing for undistorted market access for all market participants including, but not limited to energy storage, demand side measures and energy efficiency.

• 339. 

  (a) remove regulatory distortions; (a) removing regulatory distortions;

• 340. 

  (b) remove price caps; (b) remove price caps in accordance

  with article 9;

• 341. 

  (c) introduce an administrative (c) introduce a shortage pricing

  shortage pricing for balancing function for balancing energy as

  energy; referred in Article 44(3) of

  Regulation 2017/2195;

• 342. 

  (d) increase interconnection and (d) increase interconnection and internal grid capacity; internal grid capacity with a view to reaching at least their

  interconnection targets as referred in Article 4(d)(1) of the Governance Regulation;

• 343. 

  (e) enable self-generation, energy (e) enable self-generation, energy storage, demand side measures and storage, demand side measures and energy efficiency by removing energy efficiency [ ] by adopting regulatory obstacles; measures to eliminate any identified regulatory distortions;

ANNEX I TREE.2.B EN

• 344. 

  (f) ensure cost-efficient and (f) ensure cost-efficient and marketmarket-based procurement of based procurement of balancing balancing and ancillary services; and ancillary services;

• 345. 

  (g) remove regulated prices in Council compromise proposal (deletion): accordance with Article 5 of [ ]

  Directive (EU) ... [recast of Directive 2009/72/EC i as proposed by COM(2016) 864 i/2] .

• 346. 

  AM 92 Council compromise proposal:

  Article 18 – paragraph 3 a (new) 3 a. The Member States shall submit the 3 a. The Member States shall implementation plan to the Agency for submit the implementation plan to review. the Commission for review.

• 347. 

  AM 93 Council compromise proposal:

  Article 18 – paragraph 3 b (new) 3 b. The Agency shall provide an opinion 3 b. The Commission may [ ] within two months of receipt of the decide, within two months of implementation plan, whether the measures receipt of the implementation are sufficient to eliminate the regulatory plan, whether the measures are distortions and/or market failures. [ ] sufficient to eliminate the Member States shall take due account of regulatory distortions and/or the Agency's opinion, and where necessary market failures and may require adapt the implementation plan. the Member State to amend the implementation plan accordingly.

ANNEX I TREE.2.B EN

• 348. 

  AM 94 Council compromise proposal (accept AM Article 18 – paragraph 3 c (new) 94):

  3 c. The Member State shall monitor the application of the 3 c. The Member State shall monitor the implementation plan and shall application of the implementation plan and publish the results in an annual shall publish the results in an annual report. report.

• 349. 

  AM 95 Council compromise proposal:

  Article 18 – paragraph 3 d (new) 3 d. The Member State shall submit the 3 d. The Member State shall annual report [ ] to the Agency for an submit a report relating to their opinion. monitoring of the application of the implementation plan to the Agency for an opinion.

• 350. 

  AM 96 Council compromise proposal:

  Article 18 – paragraph 3 e (new) [ ] 3 e. The Agency shall submit its opinion under paragraph 3d to the Commission. The Commission shall decide whether the reforms have been sufficiently implemented.

ANNEX I TREE.2.B EN

• 351. 

  3a. Where the national Council compromise proposal to move to resource adequacy assessment article 19.

  identifies a concern with regards to a bidding zone and the European resource adequacy assessment has not identified a concern with regards to the same bidding zone, the body governing the national resource adequacy assessment shall consult the ENTSO for Electricity and request for an opinion of the Agency. To this extent the body governing the national resource adequacy assessment shall, within one month from the publication of the national resource adequacy assessment, submit to the ENTSO for Electricity and the Agency a report reasoning the occurring divergence between the two resource adequacy assessments. Within one month from the date of the submission of the report the ENTSO for Electricity shall provide its assessment on these divergences and within two months from the date of the submission of the report the Agency shall provide an opinion. The concerned Member State shall take due notice of the assessment and the opinion.

ANNEX I TREE.2.B EN

• 352. 

  AM 97 Council compromise proposal (this article Article 18 a (new) should be merged with article 23 - 2 opening General principles for capacity paragraphs). Consolidated version of article mechanisms 18a/18b can be found in Annex II

  Article 18 a (new) General principles for capacity mechanisms 353. 1. To address residual Council compromise proposal (accept para

  concerns that cannot be 1): eliminated by the measures 1. To address residual concerns that [ ] pursuant to Article 18(3), Member may not be eliminated by the measures States may, as a last resort and pursuant to Article 18(3), Member States subject this Article and to Union may, [ ] while implementing those State aid rules, introduce capacity measures and subject to this Article and to mechanisms Union State aid rules, introduce capacity mechanisms.

• 354. 

  2. Before introducing capacity Council compromise proposal (accept para mechanisms under paragraph, as 2):

  referred to in paragraph 1, 2. Before introducing capacity Member States shall conduct a mechanisms under paragraph, as referred comprehensive study of their to in paragraph 1, Member States shall possible effects on the conduct a comprehensive study of their neighbouring Member States by possible effects on the neighbouring consulting, at least, its electrically Member States by consulting, at least, its connected neighbouring Member electrically connected neighbouring States and the stakeholders of Member States and the stakeholders of those Member States. those Member States.

ANNEX I TREE.2.B EN

354a. 2a. Member States shall not introduce capacity mechanisms where both the European and the national adequacy assessments, or in the absence of a

national adequacy assessment, the European adequacy assessment have not identified a resource adequacy concern.

• 3. 

  Member States shall not introduce capacity mechanisms before the Agency has published its opinion as referred to in Article 18(3b).

• 4. 

  Where a Member State applies a capacity mechanism, it shall review that mechanism and shall provide that no new contracts are concluded under that mechanism where both the European and the national adequacy assessment, or in the absence of a national adequacy assessment, the European adequacy assessment have not identified a resource adequacy concern.

• 5. 

  When designing capacity mechanisms Member States shall include a provision allowing for an efficient administrative phase-out of the capacity mechanism in case no new contracts are concluded under paragraph 5 during [3] consecutive years.

ANNEX I TREE.2.B EN

• 355. 

  3. Member States shall assess Council compromise proposal (deletion): whether a capacity mechanism in [ ]

  the form of strategic reserve can address the adequacy concerns. Where this is not the case, Member States may implement a different type of capacity mechanism. The parameters determining the amount of capacity procured in the capacity mechanism shall be approved by the national regulatory authority.

• 356. 

  4. Member States shall not Council compromise proposal (deletion): introduce capacity mechanisms [ ]

  where one or both of the following applies: (a) the European resource adequacy assessment has not identified a resource adequacy concern; (b) the detailed implementation plan as referred to in Article 18(3) has not received a positive decision by the Commission as referred to in Article 18(3b).

• 357. 

  5. Where a Member State Council compromise proposal (deletion): already applies a capacity [ ]

  mechanism, it shall review that mechanism and shall provide that no new contracts are concluded under that mechanism where one or both of the following applies:

• 358. 

  (a) the European resource Council compromise proposal (deletion): adequacy assessment has not [ ]

  identified a resource adequacy concern;

ANNEX I TREE.2.B EN

• 359. 

  (b) the detailed implementation Council compromise proposal (deletion): plan as referred to in Article 18(3) [ ]

  has not received a positive decision by the Commission as referred to in Article 18(3b).

• 360. 

  6. Capacity mechanisms shall Council compromise proposal (deletion): be temporary. They shall be [ ]

  approved by the Commission for no longer than five years. They shall be phased out or the amount of the committed capacities shall be reduced based on the implementation plan pursuant to Article 18(3). Member States shall continue the application of the implementation plan after the introduction of the capacity mechanism.

• 361. 

  7. Generation capacity which Council compromise proposal (deletion): has started commercial production [ ]

  after [OP: date of entry into force of this Regulation] shall be eligible to participate in a capacity mechanism only if its emissions are below 550 gr CO2/kWh. With the exception of strategic reserves generation capacity emitting 550 gr CO2/kWh or more shall not be committed in capacity mechanisms after [OP: 5 years after the entry into force of this Regulation]

ANNEX I TREE.2.B EN

• 362. 

  Article 19 European resource adequacy assessment

• 363. 

  1. The European resource AM 98 1. The European resource Council compromise proposal: adequacy assessment shall 1. The European resource adequacy assessment shall

  cover the overall adequacy of adequacy assessment shall cover the overall adequacy of 1. The European resource adequacy the electricity system to supply determine resource adequacy the electricity system to supply assessment shall determine resource current and projected demands concerns by assessing the overall current and projected demands adequacy concerns by assessing the overall for electricity for a ten-year adequacy of the electricity system for electricity for every single adequacy of the electricity system to supply period from the date of that to supply current and projected year within for a ten-year current and projected demands for electricity assessment, in a yearly demands for electricity in the period from the date of that for every single year within in the Union, resolution. Union, within the relevant assessment [ ]. within the relevant Member States in the Member States in the region, for region, for each Member State and down to each Member State and down to each bidding zone where relevant, for a teneach bidding zone where relevant, year period from the date of that assessment for a ten-year period from the date [ ] . of that assessment, in a yearly resolution.

• 364. 

  AM 99 Council compromise proposal (EP text):

  Article 19 – paragraph 1 a (new) 1a. The European resource assessment 1a. The European resource shall be conducted by the ENTSO for assessment shall be conducted by Electricity. the ENTSO for Electricity.

• 365. 

  2. By [OP: six months after 2. By [OP: six months after Council compromise proposal (GA): entry into force of this entry into force of this

  Regulation], the ENTSO for Regulation], the ENTSO for . By [OP: six months after entry into Electricity shall submit to the Electricity shall submit to the force of this Regulation], the ENTSO for Agency a draft methodology for Electricity Coordination Electricity shall submit to the Electricity the European resource Group and the Agency a draft Coordination Group and the Agency a adequacy assessment based on methodology for the European draft methodology for the European resource the principles provided for in resource adequacy assessment adequacy assessment based on the principles paragraph 4. based on the principles provided provided for in paragraph 4. for in paragraph 4.

ANNEX I TREE.2.B EN

• 366. 

  3. Transmission system AM 100 3. Transmission system Council compromise proposal: operators shall provide the 3. Transmission system operators shall provide the 3. Transmission system operators shall ENTSO for Electricity with the operators shall provide the ENTSO ENTSO for Electricity with the provide the ENTSO for Electricity with the data it needs to carry out, every for Electricity with the necessary data it needs to carry out [ ] the data it needs to carry out [ ] the European year, the European resource data. The transmission system European resource adequacy resource adequacy assessment. adequacy assessment. The operators shall have the right to assessment. The ENTSO for

  ENTSO for Electricity shall request relevant data not Electricity shall carry out the Where a national resource adequacy carry out the assessment every containing commercially sensitive assessment every year. assessment is performed pursuant to year. information, and not already Generators and other market Article 19a, Transmission System collected by the relevant DSO, participants shall provide Operators, along with Member States from generators and other market transmission system operators authorities, shall also provide the ENTSO participants. with data regarding expected for electricity with :

  utilization of the generation

  resources, considering the - a methodology report detailing the availability of primary assumptions and scenarios used in the resources and appropriate current year national adequacy scenarios of projected demand assessment.

  and supply. - a synthesis of the conclusions of the current year national adequacy assessment

  The ENTSO for Electricity shall carry out the assessment every year. Generators and other market participants shall provide transmission system operators with data regarding expected utilization of the generation resources, considering the availability of primary resources and appropriate scenarios of projected demand and supply.

ANNEX I TREE.2.B EN

• 367. 

  4. The European resource AM 101 4. The European resource Council compromise proposal: adequacy assessment shall be Article 19 – paragraph 4 – adequacy assessment shall be

  based on a methodology which introductory part based on a methodology which 4. The European resource adequacy shall ensure that the 4. The European resource shall [ ] make possible that the assessment shall be based on a transparent assessment: adequacy assessment shall be based assessment: methodology which shall [ ] make possible on a transparent methodology that the assessment: which shall ensure that the assessment:

• 368. 

  (a) is carried out on bidding (a) is carried out on each Council compromise proposal (GA): zone level covering at least all respective bidding zone level (a) is carried out on each respective Member States; covering at least all Member bidding zone level covering at least all States; Member States;

• 369. 

  (b) is based on appropriate AM 102 (b) is based on appropriate Council compromise proposal: scenarios of projected demand (b) is based on appropriate central scenarios of projected

  and supply including an scenarios of projected demand and demand and supply including an (b) is based on appropriate central economic assessment of the supply including an economic economic assessment of the scenarios of projected demand and supply likelihood of retirement, newassessment of the likelihood of likelihood of retirement, newincluding an economic assessment of the build of generation assets and retirement, mothballing, new-build build of generation assets and likelihood of retirement, mothballing, newmeasures to reach energy of generation assets and measures measures to reach energy build of generation assets and measures to efficiency targets and to reach energy efficiency and efficiency targets and reach energy efficiency and electricity appropriate sensitivities on electricity interconnection targets appropriate sensitivities on interconnection targets and appropriate wholesale prices and carbon and appropriate sensitivities on extreme weather events, sensitivities on extreme weather events, price developments; wholesale prices and carbon price hydrological conditions, hydrological conditions, wholesale prices developments; wholesale prices and carbon and carbon price developments; price developments;

• 370. 

  AM 103 Council compromise proposal (deletion):

  Article 19 – paragraph 4 – point [ ] b a (new) (ba) contains a worst case scenario which reflects the exceptionality and different likeliness of the rare events a strategic reserve is designed to address; the generation adequacy gap in such a worst case scenario

ANNEX I TREE.2.B EN

shall only justify a strategic reserve with a size of not more than 5% of the peak load of the respective Member State;

• 371. 

  (ba) reflects on how the Council compromise proposal (EP text): different types of capacity (ba) reflects on how the different types of mechanisms address adequacy capacity mechanisms address adequacy concerns; concerns;

• 372. 

  (c) appropriately takes AM 104 (c) appropriately takes Council compromise proposal (EP text): account of the contribution of (c) appropriately takes account account of the contribution of all

  all resources including existing of the contribution of all resources resources including existing and (c) appropriately takes account of the and future generation, energy including existing and future future generation, energy contribution of all resources including storage, demand response, and generation, energy storage, sectoral storage, demand response, and existing and future generation, energy import and export possibilities integration, demand response, and import and export possibilities storage, , sectoral integration, demand and their contribution to import and export possibilities and and their contribution to flexible response, and import and export possibilities flexible system operation; their contribution to flexible system system operation; and their contribution to flexible system operation; operation;

ANNEX I TREE.2.B EN

• 373. 

  (d) anticipates the likely (d) anticipates the likely No change: impact of the measures referred impact of the measures referred d) anticipates the likely impact of the in Article 18(3); in Article 18(3); measures referred in Article 18(3);

• 374. 

  (e) includes scenarios (e) includes scenarios without Council compromise proposal (GA): without existing or planned and where applicable with (e) includes scenarios with out and where capacity mechanisms; existing or planned capacity applicable with existing or planned capacity mechanisms; mechanisms;

• 375. 

  (f) is based on a market (f) is based on a market No change: model using, where applicable, model using, where applicable, (f) is based on a market model using, the flow-based approach; the flow-based approach; where applicable, the flow-based approach;

• 376. 

  (g) applies probabilistic (g) applies probabilistic No change: calculations; calculations; (g) applies probabilistic calculations;

• 377. 

  (ga) applies a single Council compromise proposal (GA): modelling tool with the (ga) applies a single modelling tool with possibility to use it for national the possibility to use it for national scenarios, sensitivities and scenarios, sensitivities and assumptions; assumptions;

• 378. 

  (h) applies at least the (h) applies at least the Council compromise proposal (GA): following indicators: following indicators referred to (h) applies at least the following in Article 20: indicators referred to in Article 20:

• 379. 

  – "expected energy not – "expected energy not No change: served", and served", and "expected energy not served", and

• 380. 

  – "loss of load – "loss of load expectation"; No change: expectation"; "loss of load expectation";

• 381. 

  (i) identifies the sources of (i) identifies the sources of No change: possible resource adequacy possible resource adequacy (i) identifies the sources of possible concerns, in particular whether concerns, in particular whether it resource adequacy concerns, in particular it is a network or a resource is a network or a resource whether it is a network or a resource constraint, or both. constraint, or both. constraint, or both.

ANNEX I TREE.2.B EN

• 382. 

  AM 105 Council compromise proposal (EP text):

  Article 19 – paragraph 4 – point i (ia) respects real network development. a (new) (ia) respects real network development.

• 383. 

  (j) ensures that national Council compromise proposal (GA): characteristics of generation, (j) ensures that national characteristics demand flexibility and storage, of generation, demand flexibility and the availability of primary storage, the availability of primary resources and the level of resources and the level of interconnection interconnection are properly are properly taken into consideration; taken into consideration;

• 384. 

  5. By [OP: six months after 5. By [OP: six months after No change: entry into force of this entry into force of this 5. By [OP: six months after entry into Regulation], the ENTSO for Regulation], the ENTSO for force of this Regulation], the ENTSO for Electricity shall submit to the Electricity shall submit to the Electricity shall submit to the Agency a draft Agency a draft methodology for Agency a draft methodology for methodology for calculating: calculating: calculating:

• 385. 

  (a) the value of lost load; (a) the value of lost load; No change:

  (a) the value of lost load; 386. AM 106 Council compromise proposal: Accept and

  Article 19 – paragraph 5 – move to line 388a subparagraph 1 a (new) The methodology shall be based on a transparent, objective and verifiable criteria.

• 387. 

  (b) the "cost of new entry" (b) the "cost of new entry" for No change: for generation, or demand generation, or demand response; (b) the "cost of new entry" for generation, response; and and or demand response; and

• 388. 

  (c) the reliability standard (c) the reliability standard [ ] Council compromise proposal (GA): expressed as "expected energy referred to in Article 20 (c) the reliability standard [ ] referred to not served" and the "loss of in Article 20

  load expectation".

ANNEX I TREE.2.B EN

388a. (Moved from line 386)

5a. The methodology shall be based on a transparent, objective and verifiable criteria.

• 389. 

  6. The proposals under AM 107 6. The proposals under Council compromise proposal (GA): paragraphs 2 and 5 and the 6. The proposals under paragraphs 2 and 5 for the draft

  results of the European resource paragraphs 2 and 5 of this Article, methodology, the scenarios, 6. The proposals under paragraphs 2 and adequacy assessment under the scenarios and assumptions on sensitivities and assumptions 5 for the draft methodology, the scenarios, paragraph 3 shall be subject to which they are based, and the on which they are based, and sensitivities and assumptions on which prior consultation and approval results of the European resource the results of the European they are based, and the results of the by the Agency under the adequacy assessment under resource adequacy assessment European resource adequacy assessment procedure set out in Article 22. paragraph 1a of this Article shall under paragraph 3 shall be under paragraph 3 shall be subject to prior be subject to prior consultation and subject to prior consultation consultation with Member States, the approval by the Agency under the with Member States, the Electricity Coordination Group and procedure set out in Article 22. Electricity Coordination relevant stakeholders and approval by the Group and relevant Agency under the procedure set out in stakeholders and approval by Article 22. the Agency under the procedure set out in Article 22.

ANNEX I TREE.2.B EN

• 390. 

  Article 19a Council compromise proposal:

  National resource adequacy Article 19a assessments National resource adequacy assessments

• 391. 

  1. National resource Council compromise proposal: adequacy assessment shall be National resource adequacy assessment based on the methodology shall have a regional scope and shall be referred in Article 19(2) in based on the methodology referred in particular provisions provided Article 19(2) in particular provisions in paragraph 4 (b) to (j); provided in paragraph 4 (b) to (j). however, may provide however, may provide additional additional scenarios, scenarios, sensitivities and assumptions sensitivities and assumptions taking into account national taking into account national considerations.

  considerations. The national The national resource adequacy resource adequacy assessment assessment shall use the same modelling shall use the same modelling methodology tools as used by the ENTSO tools as used by the ENTSO for Electricity for the European resource for Electricity for the adequacy assessment and the same input European resource adequacy data, and other data, or additional tools assessment and the same input pursuant to paragraph 1a to reflect data and other data to reflect national scenarios, sensitivities and national scenarios, sensitivities assumptions. and assumptions. In addition, In addition, national resource adequacy national resource adequacy assessment, when assessing foreign assessment, when assessing contribution to the security of supply of foreign contribution to the the bidding zones they cover, shall apply security of supply of the the values of the European adequacy bidding zones they cover, shall assessment or, when applicable, available apply the values for foreign regional adequacy assessments, regarding contribution subject to cross-border contribution to the security provisions of Article 21. of supply with electrically connected

  Member States . for foreign contribution

  subject to provisions of Article 21.

ANNEX I TREE.2.B EN

• 392. 

  1a. In addition to the Council compromise proposal (GA): national resource adequacy 1a. In addition to the national resource assessment performed adequacy assessment performed pursuant pursuant to paragraph 1, to paragraph 1, Member States may Member States may perform a perform a second assessment using second assessment using different modelling tools than those used different modelling tools than by the ENTSO for Electricity for the those used by the ENTSO for European resource adequacy assessment Electricity for the European while following the remaining

  resource adequacy assessment requirements of paragraph 1. while following the remaining requirements of paragraph 1.

• 393. 

  2. National resource Council compromise proposal (GA): adequacy assessments and, 2. National resource adequacy where applicable, the assessments and, where applicable, the assessment of ENTSO for European resource adequacy assessment Electricity and the opinion of and the opinion of the Agency pursuant to the Agency pursuant to paragraph 3 of this article shall be made paragraph 3a of article 18 publicly available.

  shall be made publicly available. (to be moved as a separate Article)

393a. Council compromise proposal :(Partially moved from line 351)

• 3. 

  Where the national resource adequacy assessment identifies a concern with regards to a bidding zone and the European resource adequacy assessment has not identified a concern with regards to the same bidding zone, the body governing the national resource adequacy assessment shall include within its national resource adequacy assessment report, a reasoning on the occurring divergence between the two resource

ANNEX I TREE.2.B EN

adequacy assessments. Member States shall publish this report and forward it to the Agency.

Within two months from the date of the submission of the report the Agency shall provide an opinion on whether the discrepancies between the national and the European assessment are justified.

The body governing the national resource adequacy assessment shall take due account of the Agency's opinion, and where necessary amend its final assessment. Where it decides not to take fully into account the Agency's opinion, it shall publish a report with a detailed reasoning.

• 394. 

  Article 20 Reliability standard

• 395. 

  1. When applying capacity AM 108 1. When applying capacity Council compromise proposal: (Accept AM mechanisms Member States 1. When applying capacity mechanisms Member States 108):

  shall have a reliability standard mechanisms Member States shall shall have a reliability standard in place indicating their desired have a reliability standard in place. in place indicating their desired 1. When applying capacity mechanisms level of security of supply in a A reliability standard shall level of security of supply in a Member States shall have a reliability transparent manner. indicate the necessary level of transparent manner. standard in place. A reliability standard security of supply of the Member shall indicate the necessary level of security State in a transparent manner. In of supply of the Member State in a the case of cross-border bidding transparent manner. In the case of crosszones, such reliability standards border bidding zones, such reliability shall be established jointly by the standards shall be established jointly by the relevant authorities. relevant authorities.

ANNEX I TREE.2.B EN

• 396. 

  2. The reliability standard 2. The reliability standard Council compromise proposal: GA shall be set by the national shall be set by the [ ] Member 2. The reliability standard shall be set by regulatory authority based on State or a competent authority the [ ] Member State or a competent the methodology pursuant to designated by the Member authority designated by the Member State Article 19(5). State based on the methodology based on the methodology pursuant to pursuant to Article 19(5) Article 19(5)

• 397. 

  3. The reliability standard 3. The reliability standard Council compromise proposal: GA shall be calculated using the shall be calculated using at least 3. The reliability standard shall be value of lost load and the cost the value of lost load and the calculated using at least the value of lost of new entry over a given cost of new entry over a given load and the cost of new entry over a given timeframe. timeframe and be expressed as timeframe and be expressed as "expected "expected energy not served" energy not served" and the "loss of load and the "loss of load expectation".

  expectation". 398. 4. The parameters AM 109 4. When applying capacity Council compromise proposal: GA

  determining the amount of deleted mechanisms the parameters 4. When applying capacity capacity procured in the determining the amount of mechanisms the parameters determining the capacity mechanism shall be capacity procured in the capacity amount of capacity procured in the capacity approved by the national mechanism shall be approved by mechanism shall be approved by the [ ] regulatory authority. the [ ] Member State or Member State or another competent another competent authority authority designated by the Member designated by the Member State. State.

• 399. 

  Article 21 Cross-border participation in capacity mechanisms

• 400. 

  1. Mechanisms other than 1. Mechanisms other than Council compromise proposal: strategic reserves shall be open strategic reserves and where 1. Mechanisms other than strategic to direct participation of technically feasible, strategic reserves and where technically feasible, capacity providers located in reserves, shall be open to direct strategic reserves, shall be open to direct another Member State provided cross-border participation of cross-border participation of capacity there is a network connection capacity providers located in providers located in another Member State between that Member State and another Member State [ ] [ ] pursuant to the provisions of this the bidding zone applying the pursuant to the provisions of Article.

  mechanism. this Article.

ANNEX I TREE.2.B EN

• 401. 

  2. Member States shall 2. Member States shall Council compromise proposal: ensure that foreign capacity ensure that foreign capacity

  capable of providing equivalent capable of providing equivalent Member States shall ensure that foreign technical performance to technical performance to capacity capable of providing equivalent domestic capacities has the domestic capacities has the technical performance to domestic capacities opportunity to participate in the opportunity to participate in the has the opportunity to participate in the same same competitive process as same competitive process as competitive process as domestic capacity. In domestic capacity. domestic capacity. In the case the case of capacity mechanisms in of capacity mechanisms in operation as of the [date of entry into operation as of the [date of force], Member States may allow direct entry into force], Member participation in the same competitive States may allow direct process of interconnectors as foreign participation in the same capacity for a maximum of four years competitive process of after [entry into force] or two years interconnectors as foreign following the approval of the capacity for a maximum of methodologies referred to in paragraph 10 four years after [entry into of this Article, whatever happens earlier. force] or two years following the approval of the methodologies referred to in paragraph 10 of this Article, whatever happens earlier. Member States may apply following requirements to the foreign capacity:

ANNEX I TREE.2.B EN

• 402. 

  (a) the capacity is located in Council compromise proposal (text to be a Member State with a direct merged with line 401):

  network connection between that Member State and the Member States may require foreign Member State applying the capacity to be located in a Member State mechanism, with a direct network connection between that Member State and the Member State applying the mechanism.

• 403. 

  (b) the capacity is not Council compromise proposal: participating in another [ ] (deleted)

  capacity mechanism for which the capacity needs to be available,

• 404. 

  3. Member States shall not 3. Member States shall not No change: restrict capacity which is restrict capacity which is located 3. Member States shall not restrict located in their territory from in their territory from capacity which is located in their territory participating in capacity participating in capacity from participating in capacity mechanisms of mechanisms of other Member mechanisms of other Member other Member States. States. States.

• 405. 

  4. Cross-border 4. Cross-border participation Council compromise proposal (GA): participation in market-wide in [ ] capacity mechanisms shall 4. Cross-border participation in [ ] capacity mechanisms shall not not change, alter or otherwise capacity mechanisms shall not change, alter change, alter or otherwise impact cross-zonal schedules or otherwise impact cross-zonal schedules impact cross-zonal schedules and physical flows between and physical flows between Member States and physical flows between Member States which shall be which shall be determined solely by the Member States which shall be determined solely by the outcome of capacity allocation pursuant to determined solely by the outcome of capacity allocation Article 14.

  outcome of capacity allocation pursuant to Article 14. pursuant to Article 14.

ANNEX I TREE.2.B EN

• 406. 

  5. Capacity providers shall AM 110 5. Capacity providers shall Council compromise proposal (paragraph 5 be able to participate in more 5. Capacity providers shall be be [ ] subject to nonis modified into 5 and 5a):

  than one mechanism for the able to participate in more than one availability payments in case same delivery period. They mechanism for the same delivery of non-availability. In case 5. Capacity providers shall be able to shall be subject to nonperiod. They shall be subject to capacity providers participate participate [ ] in multiple capacity availability payments in case of non-availability payments in case in more than one mechanism for mechanisms. non-availability, and subject to of non-availability, and subject to the same delivery period, they

  two or more non-availability two or more non-availability shall be subject to [ ] multiple In this case In case capacity providers payments where there is payments where there is concurrent non-availability payments participate in more than one mechanism

  concurrent scarcity in two or scarcity in two or more bidding when they are unable to fulfil for the same delivery period, they shall

  more bidding zones where the zones where the capacity provider multiple commitments.

  capacity provider is contracted. is contracted. Capacity providers participate up to the expected

  shall be able to participate with no availability of interconnection and the

  more than their available likely concurrence of system stress

  maximum capacity. between the system where the mechanism is applied and the system

  in which the foreign capacity is located according to the methodology in paragraph 10a.

406a. Council compromise proposal:

5a. Capacity providers shall be [ ] subject to non-availability payments in case of non-availability.

In case capacity providers participate in more than one mechanism for the same delivery period, they shall be subject to [ ] multiple non-availability payments when they are unable to fulfil multiple commitments.

• 407. 

  6. Regional operational AM 111 6. Where capacity Council compromise proposal: centres established pursuant to 6. Regional coordination mechanisms are applied, Where capacity mechanisms are applied, Article 32 shall annually centres established pursuant to Transmission System Transmission System Operators [ ] For calculate the maximum entry Article 32 shall annually calculate Operators [ ] shall annually the purposes of providing a

capacity available for the the maximum entry capacity calculate the maximum entry recommendation to TSOs regional

ANNEX I TREE.2.B EN

participation of foreign capacity available for the participation of capacity available for the coordination centres established pursuant taking into account the foreign capacity taking into participation of foreign capacity to Article 32 shall annually calculate the expected availability of account the expected availability of [ ] based on the methodology maximum entry capacity available for the interconnection and the likely interconnection and the likely referred in point (a) of participation of foreign capacity [ ] based concurrence of system stress concurrence of system stress paragraph 10 and taking into on the methodology referred in point (a) between the system where the between the system where the account the recommended of paragraph 10 and taking into account mechanism is applied and the mechanism is applied and the values calculated by the the recommended values calculated by system in which the foreign system in which the foreign Regional Security the Regional Security Coordinators capacity is located. A capacity is located. A calculation is Coordinators pursuant to pursuant to Article 34(q), 38 and 39, the calculation is required for each required for each bidding zone Article 34(q), 38 and 39, the level of physical interconnection between bidding zone border. border. level of physical Member States,. This calculation shall interconnection between take into account the expected availability Member States, expected of interconnection and the likely concurrence availability of interconnection of system stress between the system where and the likely concurrence of the mechanism is applied and the system in system stress between the which the foreign capacity is located. A system where the mechanism is calculation is required for each bidding zone applied and the system in which border. the foreign capacity is located. A TSOs shall annually set the maximum calculation is required for each entry capacity available for the bidding zone border. participation of foreign capacity based on the recommendation of the Regional Coordination Centre.

• 408. 

  7. Member States shall 7. Member States shall No change: ensure that the entry capacity ensure that the entry capacity 7. Member States shall ensure that the referred to in paragraph 6 is referred to in paragraph 6 is entry capacity referred to in paragraph 6 is allocated to eligible capacity allocated to eligible capacity allocated to eligible capacity providers in a providers in a transparent, nonproviders in a transparent, nontransparent, non-discriminatory and marketdiscriminatory and marketdiscriminatory and market-based based manner. based manner. manner.

• 409. 

  8. Any difference in the 8. [ ] If there are capacity Council compromise proposal: cost of foreign capacity and mechanisms open for cross 8. [ ] If there are capacity mechanisms domestic capacity arising border participation in two open for cross-border participation in two through the allocation referred neighbouring Member States, neighbouring Member States, any to in paragraph 7 shall accrue to any revenues arising through revenues arising through the allocation

ANNEX I TREE.2.B EN

transmission system operators the allocation referred to in referred to in paragraph 7 shall accrue to and be shared between them paragraph 7 shall accrue to transmission system operators and be shared according to the methodology transmission system operators between them according to the methodology referred in point (b) of and be shared between them referred in point (b) of paragraph 10 or a paragraph 10. Transmission according to the methodology common methodology approved by both system operators shall use such referred in point (b) of paragraph relevant regulatory authorities. If the revenues for the purposes set 10 or a common methodology neighbouring Member State is not out in Article 17(2). approved by both relevant applying a capacity mechanism or is regulatory authorities. If the applying a capacity mechanism which is neighbouring Member State is not open to cross border participation, the not applying a capacity share of revenues shall be approved by the mechanism, the share of competent national authority of the revenues shall be approved by Member State where the capacity the competent national mechanism is implemented after seeking authority of the Member State the opinion of the regulatory authorities of where the capacity mechanism the neighbouring Member States. is implemented after seeking Transmission system operators shall use such the opinion of the regulatory revenues for the purposes set out in Article authorities of the neighbouring 17(2). Member States. Transmission system operators shall use such revenues for the purposes set out in Article 17(2).

• 410. 

  9. The transmission system 9. The transmission system No change: operator where the foreign operator where the foreign 9. The transmission system operator capacity is located shall: capacity is located shall: where the foreign capacity is located shall:

• 411. 

  (a) establish whether (a) establish whether No change: interested capacity providers interested capacity providers can (a) establish whether interested capacity can provide the technical provide the technical providers can provide the technical performance as required by the performance as required by the performance as required by the capacity capacity mechanism in which capacity mechanism in which mechanism in which the capacity provider the capacity provider intends to the capacity provider intends to intends to participate and register the participate and register the participate and register the capacity provider in the registry as eligible capacity provider in the registry capacity provider in the registry capacity providers. as eligible capacity providers. as eligible capacity providers.

ANNEX I TREE.2.B EN

• 412. 

  (b) carry out availability (b) carry out availability Council compromise proposal (GA): checks as appropriate. checks [ ] (b) carry out availability checks [ ]

• 413. 

  (c) be notified by the Council compromise proposal (GA): respective capacity provider (c) be notified by the respective without delay about its capacity provider without delay about its participation in foreign participation in foreign capacity

  capacity mechanism mechanism 414. (d) notify to the Council compromise proposal (GA):

  transmission system operator (d) notify to the transmission system in the Member State applying operator in the Member State applying the capacity mechanism the the capacity mechanism the information information received under received under paragraph 9a to 9c. paragraph 9a to 9c.

• 415. 

  10. By [OP: twelve months 10. By [OP: twelve months No change: after entry into force of this after entry into force of this 10. By [OP: twelve months after entry into Regulation] the ENTSO for Regulation] the ENTSO for force of this Regulation] the ENTSO for Electricity shall submit to the Electricity shall submit to the Electricity shall submit to the Agency: Agency: Agency:

• 416. 

  (a) a methodology for (a) a methodology Council compromise proposal: calculating the maximum entry for calculating by the Regional (a) a methodology for calculating by the capacity for cross-border Security Coordinator and Regional Security Coordinator and participation as referred to in transmission system operators transmission system operators the paragraph 6; the maximum entry capacity for maximum entry capacity for cross-border cross-border participation as participation as referred to in paragraph 6; referred to in paragraph 6;

• 417. 

  (b) a methodology for (b) a methodology for sharing No change: sharing the revenues referred to the revenues referred to in (b) a methodology for sharing the in paragraph 8; paragraph 8; revenues referred to in paragraph 8;

• 418. 

  (c) common rules to carry (c) common rules to carry out No change: out availability checks referred availability checks referred to in (c) common rules to carry out availability to in point (b) of paragraph 9; point (b) of paragraph 9; checks referred to in point (b) of paragraph 9;

ANNEX I TREE.2.B EN

• 419. 

  (d) common rules to (d) common [ ] principles to Council compromise proposal (COM): determine when a nondetermine when a non(d) common rules to determine when a availability payment is due; availability payment is due; non-availability payment is due;

• 420. 

  (e) terms of the operation of (e) terms of the operation of No change: the registry as referred to in the registry as referred to in (e) terms of the operation of the registry point (a) of paragraph 9; point (a) of paragraph 9; as referred to in point (a) of paragraph 9;

• 421. 

  (f) common rules to identify (f) common rules to identify No change: capacity eligible to participate capacity eligible to participate as (f) common rules to identify capacity as referred to in point (a) of referred to in point (a) of eligible to participate as referred to in paragraph 9. paragraph 9. point (a) of paragraph 9.

• 422. 

  The proposal shall be subject to The proposal shall be subject to No change: prior consultation and approval prior consultation and approval The proposal shall be subject to prior by the Agency under the by the Agency under the consultation and approval by the Agency procedure set out in Article 22. procedure set out in Article 22. under the procedure set out in Article 22.

• 423. 

  11. The Agency shall verify 11. The [ ] national Council compromise proposal (GA): whether the capacities have regulatory authorities 11. The [ ] national regulatory

  been calculated in line with the concerned shall verify whether authorities concerned shall verify whether methodology as referred to in the capacities have been the capacities have been calculated in line point (a) of paragraph 10. calculated in line with the with the methodology as referred to in point methodology as referred to in (a) of paragraph 10. point (a) of paragraph 10.

• 424. 

  12. National regulatory 12. [ ] Regulatory authorities Council compromise proposal (COM): authorities shall ensure that shall ensure that cross-border 12. National regulatory authorities shall cross-border participation in participation in capacity ensure that cross-border participation in capacity mechanisms is mechanisms is organised in an capacity mechanisms is organised in an organised in an effective and effective and non-discriminatory effective and non-discriminatory manner. non-discriminatory manner. manner. They shall in particular They shall in particular provide for adequate They shall in particular provide provide for adequate administrative arrangements for the

  for adequate administrative administrative arrangements for enforcement of non-availability payments arrangements for the the enforcement of nonacross borders. enforcement of non-availability availability payments across payments across borders. borders.

ANNEX I TREE.2.B EN

• 425. 

  13. Allocated capacities as 13. Allocated capacities as No change: referred to in paragraph 7 shall referred to in paragraph 7 shall 13. Allocated capacities as referred to in be transferable between eligible be transferable between eligible paragraph 7 shall be transferable between capacity providers. Eligible capacity providers. Eligible eligible capacity providers. Eligible capacity capacity providers shall notify capacity providers shall notify providers shall notify any transfer to the any transfer to the registry as any transfer to the registry as registry as referred to in point (a) of referred to in point (a) of referred to in point (a) of paragraph 9. paragraph 9. paragraph 9.

• 426. 

  14. No later than [OP: two 14. No later than [OP: two No change: years after the entry into force years after the entry into force of 14. No later than [OP: two years after the of this Regulation] the ENTSO this Regulation] the ENTSO for entry into force of this Regulation] the for Electricity shall set up and Electricity shall set up and ENTSO for Electricity shall set up and operate the registry as referred operate the registry as referred to operate the registry as referred to in point (a) to in point (a) of paragraph 9. in point (a) of paragraph 9. The of paragraph 9. The registry shall be open to The registry shall be open to all registry shall be open to all all eligible capacity providers, the systems eligible capacity providers, the eligible capacity providers, the applying the mechanisms and their systems applying the systems applying the transmission system operators. mechanisms and their mechanisms and their

  transmission system operators. transmission system operators.

ANNEX I TREE.2.B EN

• 427. 

  Article 22 Approval procedure

• 428. 

  1. Where reference is made 1. Where reference is made No change: to this Article, the procedure set to this Article, the procedure set 1. Where reference is made to this out in paragraphs 2 to 4 shall be out in paragraphs 2 to 4 shall be Article, the procedure set out in paragraphs 2 applicable to the approval of a applicable to the approval of a to 4 shall be applicable to the approval of a proposal submitted by the proposal submitted by the proposal submitted by the ENTSO for ENTSO for Electricity. ENTSO for Electricity. Electricity.

• 429. 

  2. Prior to submitting the 2. Prior to submitting the Council compromise proposal (GA): proposal, the ENTSO for proposal, the ENTSO for 2. Prior to submitting the proposal, the Electricity shall conduct a Electricity shall conduct a ENTSO for Electricity shall conduct a consultation process involving consultation process involving consultation process involving all relevant all relevant stakeholders, all relevant stakeholders, [ ] stakeholders, [ ] regulatory authorities and national regulatory authorities regulatory authorities and other other national authorities and shall take the and other national authorities. national authorities and shall results of a consultation process duly into take the results of a consideration.

  consultation process duly into consideration.

• 430. 

  3. Within three months 3. Within three months from No change: from the date of receipt, the the date of receipt, the Agency 3. Within three months from the date of Agency shall either approve the shall either approve the proposal receipt, the Agency shall either approve the proposal or amend it. In the or amend it. In the latter case, proposal or amend it. In the latter case, the latter case, the Agency shall the Agency shall consult the Agency shall consult the ENTSO for consult the ENTSO for ENTSO for Electricity before Electricity before adopting the amended Electricity before adopting the adopting the amended proposal. proposal. The adopted proposal shall be amended proposal. The adopted The adopted proposal shall be published on the Agency's website at the proposal shall be published on published on the Agency's latest three months after the date of receipt of the Agency's website at the website at the latest three the proposed documents. latest three months after the months after the date of receipt

  date of receipt of the proposed of the proposed documents. documents.

ANNEX I TREE.2.B EN

• 431. 

  4. The Agency may request 4. The Agency may request No change: changes to the approved changes to the approved 4. The Agency may request changes to proposal at any time. Within six proposal at any time. Within six the approved proposal at any time. Within months from the request, the months from the request, the six months from the request, the ENTSO for ENTSO for Electricity shall ENTSO for Electricity shall Electricity shall submit to the Agency a draft submit to the Agency a draft of submit to the Agency a draft of of the proposed changes. Within a period of the proposed changes. Within a the proposed changes. Within a three months from the date of receipt of the period of three months from the period of three months from the draft, the Agency shall amend or approve the date of receipt of the draft, the date of receipt of the draft, the changes and publish it on its website. Agency shall amend or approve Agency shall amend or approve

  the changes and publish it on its the changes and publish it on its website. website.

• 432. 

  Article 23 To be moved as Article 18b. Design principles for capacity mechanisms

• 433. 

  1. To address residual AM 112 1. To address residual Consolidated version of article 18a/18b can concerns that cannot be 1. Any capacity mechanism concerns that cannot be be found in Annex II

  eliminated by the measures shall: eliminated by the measures pursuant to Article 18(3), pursuant to Article 18(3), Council compromise proposal lines 433 - Member States may introduce Member States may introduce 443: capacity mechanisms, subject to capacity mechanisms, subject to 1. Any capacity mechanism shall: the provisions of this Article the provisions of this Article and and to the Union State aid rules. [ ] without prejudice to the Union State aid rules pursuant to Articles 107 to 109 TFEU.

433a. (a1) be temporary

• 434. 

  (a) not create undue market (a) not create undue market distortions and distortions and not limit crossnot limit cross-zonal trade;

  border trade; 435. (b) not go beyond what is (b) not go beyond what is necessary to

  necessary to address the adequacy address the adequacy concern; concern;

• 436. 

  (c) select capacity providers by (c) select capacity providers by means of a means of a transparent, nontransparent, non-discriminatory and

  discriminatory and market-based competitive process; process;

ANNEX I TREE.2.B EN

• 437. 

  (d) be technology neutral; [ ]

• 438. 

  (e) provide incentives for capacity (e) provide incentives for capacity providers providers to be available in times to be available in times of expected system of expected system stress; stress;

• 439. 

  (f) ensure that the remuneration is (f) ensure that the remuneration is determined through a marketdetermined through the competitive based process; process;

• 440. 

  (g) set out the required technical (g) set out the required technical conditions conditions for the participation of for the participation of capacity providers in capacity providers in advance of advance of the selection process;

  the selection process; 441. (h) be open to participation of all (h) be open to participation of all resources,

  resources, including storage and including storage and demand side demand side management that are management that are capable of providing capable of providing the required the required technical performance; technical performance;

• 442. 

  (i) apply appropriate penalties to (i) apply appropriate penalties to capacity capacity providers when not providers when not available in the event of available in the event of system system stress;

  stress; 443. (j) ensure that capacity contracts [ ]

  for existing installations are rewarded for a maximum length of 1 year.

• 444. 

  2. Where a Member State AM 113 2. Where a Member State Council compromise proposal lines 444 - wishes to implement a capacity 2. Capacity mechanisms in the wishes to implement a capacity 448:

  mechanism, it shall consult on form of strategic reserves shall: mechanism, it shall consult on [ ] the proposed mechanism at the proposed mechanism at least least with its electrically with its directly electrically connected neighbouring connected neighbouring Member States. Member States based on a comprehensive study on the possible effects on those Member States.

ANNEX I TREE.2.B EN

• 445. 

  (a) be held outside the market; [ ]

• 446. 

  (b) be dispatched only where day[ ] ahead and intraday markets have

  failed to clear and transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply;

• 447. 

  (c) ensure that during periods [ ] where strategic reserves were

  dispatched, imbalances are settled at the technical price limit applied by the market operators pursuant to Article 9 or at the value of lost load, whichever the higher.

• 448. 

  (d) be limited to maximum [ ] emissions of 200kg/CO2/kW for

  the electricity production per year The electricity generated, or the load reduction achieved by resources in the strategic reserve shall not be sold through wholesale electricity markets.

• 449. 

  2a. When a capacity Future paragraph 2 of Article 18b mechanism is designed as a 2. Design principles for strategic reserves strategic reserve, resources in

  the strategic reserve shall only a. When a capacity mechanism is designed

  be dispatched in case as a strategic reserve, resources in the

  transmission system operators strategic reserve shall only be dispatched

  are likely to exhaust their in case transmission system operators are

  balancing resources to likely to exhaust their balancing resources

  establish an equilibrium to establish an equilibrium between

  between demand and supply. demand and supply.

  This requirement is without

  prejudice to activating This requirement is without prejudice to

  resources ahead of actual activating resources ahead of actual

ANNEX I TREE.2.B EN

dispatch in order to respect dispatch in order to respect their ramping their ramping constraints and constraints and operating requirements. operating requirements. Energy from resources in reserve that is During periods where released during activation but before resources in the strategic resources are being dispatched shall be rereserve were dispatched dispatched to avoid market distortion. imbalances in the market shall The output of the strategic reserve during be settled at least at the activation shall not be attributed to bidding limit pursuant to balance groups through wholesale Article 9. The resources taking markets or shall not change their part in the strategic reserve imbalances. shall not get remunerated through wholesale electricity b. During imbalance settlement periods markets or balancing markets. where resources in the strategic reserve were dispatched imbalances in the market shall be settled at least at the value of lost load /at a value higher than the intraday technical price limit maximum clearing price as referred in Article 9(1) of this Regulation, whichever higher. 54 of Regulation (EU) 2015/1222 [CACM]].

• c. 

  The output of the strategic reserve following dispatch shall be attributed to balance responsible parties through the imbalance settlement mechanism.

• d. 

  The resources taking part in the strategic reserve shall not get

remunerated through wholesale electricity

markets or balancing markets.

• e. 

  The [ ] resources taking part in the strategic reserve shall be held outside of the market at least for the duration of the contractual period.

ANNEX I TREE.2.B EN

• 450. 

  3. Capacity mechanisms AM 114 3. Capacity mechanisms Council compromise proposal: shall not create unnecessary 3. In addition to the shall: Future paragraph 3 of Article 18b market distortions and not limit requirements laid down in 3. Design principles for other capacity cross-border trade. The amount paragraph 1, capacity mechanisms mechanisms than strategic reserves of capacity committed in the other than strategic reserves shall: (a) In addition to the requirements laid mechanism shall not go beyond down in paragraph 1, capacity mechanisms what is necessary to address the other than strategic reserves shall: concern.

• 451. 

  (a) be constructed so as to ensure Council compromise proposal (EP): that the price paid for availability (aa) be constructed so as to ensure that the automatically tends to zero when price paid for availability automatically the level of capacity supplied is tends to zero when the level of capacity expected to be adequate to meet supplied which would be profitable on the the level of capacity demanded; energy market without a capacity mechanism is expected to be adequate to meet the level of capacity demanded;

  (Text from the Guidelines on state aid for environmental protection and energy 2014- 2020, chapter: 3.9.5)

• 452. 

  (b) remunerate the participating Council compromise proposal (EP): resources merely for their (bb) remunerate the participating resources availability and ensure that the merely for their availability and ensure that remuneration does not affect the remuneration does not affect decisions decisions of the capacity provider of the capacity provider whether or not to whether or not to generate; generate;

ANNEX I TREE.2.B EN

• 453. 

  (c) ensure that capacity Council compromise proposal (EP): obligations are transferable (cc) ensure that capacity obligations are between eligible capacity transferable between eligible capacity providers. providers.

• 454. 

  (a) not create Council compromise proposal lines 454 - unnecessary market distortions 458:

  and not limit cross [ ] zonal [ ] trade;

• 455. 

  (b) be market-based; [ ]

• 456. 

  (c) be open to participation [ ] of all resources that are

  capable of providing the required technical performance in a technology neutral manner and through fair and transparent rules, including but not limited to participation of storage, energy efficiency and demand response;

• 457. 

  (d) be temporary, but are [ ] permitted, in accordance with

  state aid rules, as long as the relevant resource adequacy assessment identifies a resource adequacy concern;

• 458. 

  (e) [ ] not go beyond what is [ ] necessary to address the

  resource adequacy concern. 459. 4. Generation capacity for AM 115 4. In the design of a Council compromise proposal:

  which a final investment capacity mechanism, Member 4. In the design of a capacity decision has been made after deleted States shall apply the following mechanism, Member States shall apply [OP: entry into force] shall only requirements regarding CO2 the following requirements regarding be eligible to participate in a emission limits: CO2 emission limits: capacity mechanism if its

ANNEX I TREE.2.B EN

emissions are below 550 gr CO2/kWh. Generation capacity emitting 550 gr CO2/kWh or more shall not be committed in capacity mechanisms 5 years after the entry into force of this Regulation.

• 460. 

  (a) Generation capacity Council compromise proposal: emitting more than 550 gr

  CO2/kWh of energy or more (a) Generation capacity emitting more than 700 kg CO2 on average than 550 gr CO2/kWh of energy or and per year per installed kW for more than [700] kg CO2 on average per which a final investment year per installed kW that started to decision has been made after provide electricity to the grid for which a [OP: date of entry into force] final investment decision has been made shall not receive payments or after [OP: date of entry into force] shall not commitments for future receive payments or commitments for payments under a capacity future payments under a capacity mechanism as of 31 December mechanism as of 31 December 2025. 2025.

• 461. 

  (b) Generation capacity Council compromise proposal: emitting more than 550 gr (b) Generation capacity emitting more CO2/kWh of energy or more than 550 gr CO2/kWh of energy or and than 700 kg CO2 on average more than [700] kg CO2 on average per per year per installed kW for year per installed kW that started to which a final investment provide electricity to the grid for which a decision has been made before final investment decision has been made [OP: date of entry into force] before [OP: date of entry into force] shall shall not receive payments or not receive payments or commitments for commitments for future future payments under a capacity payments under a capacity mechanism as of 31 December 2030, mechanism as of 31 December except for contracts with a remaining 2030, except for contracts with duration of not more than 5 years a remaining duration of not concluded before 31 December 2030. more than 5 years concluded Between 31 December 2025 and 31

ANNEX I TREE.2.B EN

before 31 December 2030. December 2030, the capacity receiving Between 31 December 2025 remuneration for this participation should and 31 December 2030, the be reduced by 5% per year. capacity receiving remuneration for this participation should be reduced by 5% per year.

• 462. 

  (c) The emission limit of 550 Council compromise proposal (GA): gr CO2/kWh of energy and the (c) The emission limit of 550 gr limit of 700 kg CO2 on CO2/kWh of energy and the limit of [700] average per year per installed kg CO2 on average per year per installed kW shall be calculated based kW shall be calculated based on the design on the design efficiency of the efficiency of the generation unit as generation unit as provided by provided by an accredited certification an accredited certification organisation.

  organisation. 463. 5. Where the European AM 116 [ ] Council compromise proposal: deletion.

  resource adequacy assessment Covered by line 354a. has not identified a resource deleted [ ] adequacy concern, Member States shall not apply capacity mechanisms.

ANNEX I TREE.2.B EN

• 464. 

  5a. When designing capacity Council compromise proposal: deletion. mechanisms, Member States Covered by line 354a.

  shall include a provision [ ] allowing for efficient phase-out of a capacity mechanism within 4 years in case the resource adequacy concern is no longer present. This phaseout can be an administrative cessation of the mechanism, with a reasonable advance notice, or provisions in the design of the mechanism which would lead to the suspension of associated economic incentives when there is no adequacy concern.

• 465. 

  Article 24 Existing mechanisms

• 466. 

  Member States applying AM 117 1. Member States applying Council compromise proposal: capacity mechanisms on [OP: Member States applying capacity capacity mechanisms on [OP:

  entry into force of this mechanisms on [OP: entry into entry into force of this 1. Member States applying capacity Regulation] shall adapt their force of this Regulation] shall Regulation] shall adapt their mechanisms on [OP: entry into force of this mechanisms to comply with adapt their mechanisms to comply mechanisms to comply with Regulation] shall adapt their mechanisms to Articles 18, 21 and 23 of this with Articles 18, 18a, 21 and 23 of Articles 18, 21 and 23 of this comply with the Articles 18, 21 and 23 of Regulation. this Regulation. Regulation without prejudice Chapter 4 of this Regulation without to commitments or contracts, prejudice to commitments or contracts, concluded before that date, concluded before that date, and without and without prejudice to the prejudice to the Union State aid rules Union State aid rules pursuant pursuant to Articles 107 to 109 TFEU, to Articles 107 to 109 TFEU, including state aid decisions taken including state aid decisions thereafter before that date. taken thereafter before that date. Council compromise proposal for a recital on state aid rules similar to Renewable

ANNEX I TREE.2.B EN

Energy Directive II:

Pursuant to Article 108 TFEU, the Commission has exclusive competence to assess the compatibility of State aid measures with the internal market which the Member States may put in place. That assessment is carried out on the basis of Article 107(3) TFEU and in accordance with the relevant provisions and guidelines which the Commission may adopt to that effect. This Regulation is without prejudice to the Commission’s exclusive competence granted by the TFEU.

ANNEX I TREE.2.B EN

• 467. 

  Chapter V Transmission system operation

• 468. 

  Article 25 European network of transmission system operators for electricity

• 469. 

  1. Transmission system 1. Transmission system Provisionally agreed: operators shall cooperate at operators shall cooperate at 1. Transmission system operators shall Union level through the Union level through the ENTSO cooperate at Union level through the ENTSO ENTSO for Electricity, in order for Electricity, in order to for Electricity, in order to promote the to promote the completion and promote the completion and completion and functioning of the internal functioning of the internal functioning of the internal market in electricity and cross [ ] zonal market in electricity and crossmarket in electricity and cross [ trade and to ensure the optimal management, border trade and to ensure the ] zonal trade and to ensure the coordinated operation and sound technical optimal management, optimal management, evolution of the European elecricity coordinated operation and coordinated operation and sound transmission network. sound technical evolution of the technical evolution of the

  European electricity European electricity transmission network. transmission network.

• 470. 

  2. In performing its Provisionally agreed:

  functions under EU law, the 2. In performing its ENTSO for Electricity shall act functions under EU law, the 2. In performing its functions under EU for the European good and ENTSO for Electricity shall [ ] law, the ENTSO for Electricity shall act in independent from individual contribute to the efficient and the interest of a well functioning and national interests or the national sustainable achievement of the integrated Internal Electricity market and interests of transmission system objectives set out in the policy shall [ ] contribute to the efficient and operators, and shall contribute framework for climate and sustainable achievement of the objectives set to the efficient and sustainable energy covering the period from out in the policy framework for climate and achievement of the objectives 2020 to 2030, in particular by energy covering the period from 2020 to set out in the policy framework contributing to the efficient 2030, in particular by contributing to the for climate and energy covering integration of electricity efficient integration of electricity generated the period from 2020 to 2030, generated from renewable from renewable energy sources and to in particular by contributing to energy sources and to increases increases in energy efficiency while the efficient integration of in energy efficiency while maintaining system security. The ENTSO electricity generated from maintaining system security. for Electricity shall have adequate human renewable energy sources and and financial resources to carry out its to increases in energy duties.

  efficiency.

ANNEX I TREE.2.B EN

• 471. 

  Article 26 Establishment of the ENTSO for Electricity

• 472. 

  1. The transmission system 1. The transmission system No change: operators for electricity shall operators for electricity shall 1. The transmission system operators for submit to the Commission and submit to the Commission and to electricity shall submit to the Commission to the Agency the draft statutes, the Agency the draft statutes, a and to the Agency the draft statutes, a list of a list of members and draft list of members and draft rules members and draft rules of procedure, rules of procedure, including of procedure, including the rules including the rules of procedures on the the rules of procedures on the of procedures on the consultation of other stakeholders, of the consultation of other consultation of other ENTSO for Electricity to be established. stakeholders, of the ENTSO for stakeholders, of the ENTSO for

  Electricity to be established. Electricity to be established. 473. 2. Within two months of the 2. Within two months of the No change:

  day of the receipt, the Agency, day of the receipt, the Agency, 2. Within two months of the day of the after formally consulting the after formally consulting the receipt, the Agency, after formally organisations representing all organisations representing all consulting the organisations representing all stakeholders, in particular the stakeholders, in particular the stakeholders, in particular the system users, system users, including system users, including including customers, shall provide an customers, shall provide an customers, shall provide an opinion to the Commission on the draft opinion to the Commission on opinion to the Commission on statutes, list of members and draft rules of the draft statutes, list of the draft statutes, list of procedure. members and draft rules of members and draft rules of procedure. procedure.

ANNEX I TREE.2.B EN

• 474. 

  3. The Commission shall 3. The Commission shall No change: deliver an opinion on the draft deliver an opinion on the draft 3. The Commission shall deliver an statutes, list of members and statutes, list of members and opinion on the draft statutes, list of members draft rules of procedures taking draft rules of procedures taking and draft rules of procedures taking into into account the opinion of the into account the opinion of the account the opinion of the Agency provided Agency provided for in Agency provided for in for in paragraph 2 and within three months paragraph 2 and within three paragraph 2 and within three of the day of the receipt of the opinion of the months of the day of the receipt months of the day of the receipt Agency.

  of the opinion of the Agency. of the opinion of the Agency. 475. 4. Within three months of 4. Within three months of No change:

  the day of receipt of the the day of receipt of the 4. Within three months of the day of Commission's favourable Commission's favourable receipt of the Commission's favourable opinion, the transmission opinion, the transmission system opinion, the transmission system operators system operators shall establish operators shall establish the shall establish the ENTSO for Electricity and the ENTSO for Electricity and ENTSO for Electricity and adopt adopt and publish its statutes and rules of adopt and publish its statutes and publish its statutes and rules procedure. and rules of procedure. of procedure.

• 476. 

  5. The documents referred 5. The documents referred to No change: to in paragraph 1 shall be in paragraph 1 shall be 5. The documents referred to in submitted to the Commission submitted to the Commission paragraph 1 shall be submitted to the and to the Agency in case of and to the Agency in case of Commission and to the Agency in case of changes thereof or upon changes thereof or upon changes thereof or upon reasoned request of reasoned request of the reasoned request of the the Commission or of the Agency. The Commission or of the Agency. Commission or of the Agency. Agency and the Commission shall deliver an The Agency and the The Agency and the opinion in accordance with paragraphs 2 to Commission shall deliver an Commission shall deliver an 4.

  opinion in accordance with opinion in accordance with paragraphs 2 to 4. paragraphs 2 to 4.

ANNEX I TREE.2.B EN

• 477. 

  Article 27 Tasks of the ENTSO for Electricity

• 478. 

  1. The ENTSO for Electricity 1. The ENTSO for No change: shall : Electricity shall: 1. The ENTSO for Electricity shall:

• 479. 

  (a) elaborate network codes (a) elaborate network codes No change in the areas set out in Article in the areas set out in Article (a) elaborate network codes in the areas 55(1) with a view to achieving 55(1) with a view to achieving set out in Article 55(1) with a view to the objectives set out in Article the objectives set out in Article achieving the objectives set out in Article 25 25 . 25

• 480. 

  (b) adopt and publish a non(b) adopt and publish a non No change: binding Union-wide ten-year binding Union-wide ten-year (b) adopt and publish a non-binding network development plan, network development plan, Union-wide ten-year network development (Union-wide network (Union-wide network plan, (Union-wide network development development plan), every two development plan), every two plan), every two years; years; years;

• 481. 

  (c) prepare and adopt AM 118 (c) prepare and adopt Provisionally agreed: (to be adapted to proposals related to the (c) prepare and adopt proposals proposals related to the article 19)

  European resource adequacy related to the European resource European resource adequacy c) prepare and adopt proposals related to assessment pursuant to Article adequacy assessment pursuant to assessment pursuant to Article the European resource adequacy assessment 19(2), (3) and (5) and for the Article 19(1a) and for the technical 19(2), (3) and (5) and for the pursuant to Article 19 [ ] and for the technical specifications for specifications for cross-border technical specifications for technical specifications for cross-border cross-border participation in participation in capacity cross-border participation in participation in capacity mechanisms capacity mechanisms pursuant mechanisms pursuant to Article capacity mechanisms pursuant to pursuant to Article 21(10); to Article 21(10); 21(10); Article 21(10);

• 482. 

  (d) adopt recommendations (d) adopt recommendations No change: relating to the coordination of relating to the coordination of (d) adopt recommendations relating to the technical cooperation between technical cooperation between coordination of technical cooperation Union and third-country Union and third-country between Union and third-country transmission system operators; transmission system operators; transmission system operators;

• 483. 

  (e) adopt a framework for (e) adopt a framework for the Provisionally agreed: the cooperation and cooperation and coordination (e) adopt a framework for the cooperation coordination between regional between [ ] regional security and coordination between [ ] Regional operational centres; coordinators; Coordination Centres;

ANNEX I TREE.2.B EN

• 484. 

  (f) adopt a proposal defining (f) adopt a proposal defining Provisionally agreed: the system operation region the system operation region [ ] (f) adopt a proposal defining the system covered by each regional in accordance with the operation region [ ] in accordance with the operational centre; provisions of Article 33; provisions of Article 33;

• 485. 

  (fa) cooperate with Provisionally agreed: distribution system operators (fa) cooperate with distribution system and the EU DSO entity. operators and the EU DSO entity

• 486. 

  (fb) promote the Provisionally agreed: digitalisation of transmission (fb) promote the digitalisation of networks including transmission networks including deployment of smart grids and deployment of smart grids, efficient real intelligent metering systems; time data acquisition and intelligent metering systems;

• 487. 

  (g) adopt common network (g) adopt common network No change: operation tools to ensure operation tools to ensure (g) adopt common network operation coordination of network coordination of network tools to ensure coordination of network operation in normal and operation in normal and operation in normal and emergency emergency conditions, emergency conditions, including conditions, including a common incident including a common incident a common incident classification classification scale, and research plans, classification scale, and scale, and research plans, including the deployment of these plans research plans, including the including the deployment of through an efficient research programme. deployment of these plans these plans through an efficient These tools shall specify inter alia: through an efficient research research programme. These

  programme. These tools shall tools shall specify inter alia: specify inter alia:

• 488. 

  (i) the information, (i) the information, including No change: including appropriate day appropriate day ahead, intra-day (i) the information, including appropriate ahead, intra-day and real-time and real-time information, useful day ahead, intra-day and real-time information, useful for for improving operational information, useful for improving improving operational coordination, as well as the operational coordination, as well as the coordination, as well as the optimal frequency for the optimal frequency for the collection and optimal frequency for the collection and sharing of such sharing of such information; collection and sharing of such information;

  information;

ANNEX I TREE.2.B EN

• 489. 

  (ii) the technological (ii) the technological platform No change: platform for the exchange of for the exchange of information (ii) the technological platform for the information in real time and in real time and where exchange of information in real time and where appropriate, the appropriate, the technological where appropriate, the technological technological platforms for the platforms for the collection, platforms for the collection, processing and collection, processing and processing and transmission of transmission of the other information transmission of the other the other information referred to referred to in point (i), as well as for the information referred to in point in point (i), as well as for the implementation of the procedures capable of (i), as well as for the implementation of the increasing operational coordination between implementation of the procedures capable of increasing transmission system operators with a view to procedures capable of operational coordination such coordination becoming Union-wide; increasing operational between transmission system

  coordination between operators with a view to such transmission system operators coordination becoming Unionwith a view to such wide; coordination becoming Unionwide;

• 490. 

  (iii) how transmission system (iii) how transmission system No change: operators make available the operators make available the (iii) how transmission system operators operational information to other operational information to other make available the operational information transmission system operators transmission system operators or to other transmission system operators or any or any entity duly mandated to any entity duly mandated to entity duly mandated to support them to support them to achieve support them to achieve achieve operational coordination, and to the operational coordination, and to operational coordination, and to Agency; and the Agency; and the Agency; and

• 491. 

  (iv) that transmission system (iv) that transmission system No change: operators designate a contact operators designate a contact (iv) that transmission system operators point in charge of answering point in charge of answering designate a contact point in charge of inquiries from other inquiries from other answering inquiries from other transmission transmission system operators transmission system operators or system operators or from any entity duly or from any entity duly from any entity duly mandated mandated as referred to in point (iii), or from mandated as referred to in point as referred to in point (iii), or the Agency concerning such information. (iii), or from the Agency from the Agency concerning

  concerning such information. such information.

ANNEX I TREE.2.B EN

• 492. 

  (h) adopt an annual work (h) adopt an annual work No change: programme; programme; (h) adopt an annual work programme;

• 493. 

  AM 119 Compromise proposal: (Seen by COREPER Article 27 – paragraph 1 – point on 7 September and 12 October) Still to be h a (new) discussed with the EP

  (h a) standardise, in cooperation h a (new) with the EU DSO entity, relevant (h a) contribute to the establishment of data formats and protocols to interoperability requirements and nonfacilitate cross-border exchange of discriminatory and transparent procedures data; for accessing data as provided for in Article 24 of the [Electricity Directive]

• 494. 

  (i) adopt an annual report; (i) adopt an annual report; No change:

  (i) adopt an annual report; 495. (j) carry out and adopt (j) carry out and adopt No change:

seasonal adequacy outlooks seasonal adequacy outlooks (j) carry out and adopt seasonal adequacy pursuant to Article 9(2) pursuant to Article 9(2) outlooks pursuant to Article 9(2) [Regulation

[Regulation on risk [Regulation on risk preparedness on risk preparedness as proposed by preparedness as proposed by as proposed by COM(2016) COM(2016) 862 i] . COM(2016) 862 i]. 862] .

• 496. 

  AM 120 Provisionally agreed to merge with (fb) line Article 27 – paragraph 1 – point j 486.)

  a (new) (j a) promote digitalisation of transmission systems to ensure, inter alia, efficient real time data acquisition and use and smart substations;

ANNEX I TREE.2.B EN

• 497. 

  AM 121 Provisionally agreed:

  Article 27 – paragraph 1 – point j (j b) promote [ ] cyber security and data b (new) protection in cooperation with relevant (j b) promote data management, authorities and regulated entities;

  cyber security and data protection in cooperation with relevant authorities and regulated entities;

• 498. 

  AM 122 Provisionally agreed:

  Article 27 – paragraph 1 – point j c (new) (j c) [ ] take into account the development (j c) develop demand response in of demand response in fulfilling its tasks; cooperation with DSOs.

• 499. 

  2. The ENTSO for AM 123 2. The ENTSO for Provisionally agreed:

  Electricity shall report to the 2. The ENTSO for Electricity Electricity shall report to the 2. The ENTSO for Electricity shall Agency on shortcomings shall report to the Agency on Agency on shortcomings report to the Agency on shortcomings identified regarding the shortcomings identified regarding identified regarding the identified regarding the establishment and establishment and performance the establishment and performance establishment and performance performance of [ ] Regional Coordination of regional operational centres. of regional coordination centres. of [ ] Regional Security Centres. Coordinators.

• 500. 

  3. The ENTSO for 3. The ENTSO for No change:

  Electricity shall publish the Electricity shall publish the 3. The ENTSO for Electricity shall minutes of its Assembly, Board minutes of its Assembly, Board publish the minutes of its Assembly, Board and Committees meetings and and Committees meetings and and Committees meetings and provide the provide the public with regular provide the public with regular public with regular information on its information on its decisioninformation on its decisiondecision-making and activities. making and activities. making and activities.

ANNEX I TREE.2.B EN

• 501. 

  4. The annual work 4. The annual work No change: programme referred to in (h) of programme referred to in (h) of 4. The annual work programme referred paragraph 1 shall contain a list paragraph 1 shall contain a list to in (h) of paragraph 1 shall contain a list and description of the network and description of the network and description of the network codes to be codes to be prepared, a plan on codes to be prepared, a plan on prepared, a plan on coordination of operation coordination of operation of the coordination of operation of the of the network, and research and network, and research and network, and research and development activities, to be realised in that development activities, to be development activities, to be year, and an indicative calendar. realised in that year, and an realised in that year, and an

  indicative calendar. indicative calendar. 502. 5. The ENTSO for 5. The ENTSO for No change:

  Electricity shall make available Electricity shall make available 5. The ENTSO for Electricity shall make all information required by the all information required by the available all information required by the Agency to fulfil its tasks under Agency to fulfil its tasks under Agency to fulfil its tasks under Article Article 29(1). Transmission Article 29(1). Transmission 29(1). Transmission system operators shall system operators shall make system operators shall make make available all information required for available all information available all information the ENTSO for Electricity to fulfil its task required for the ENTSO for required for the ENTSO for under sentence 1. Electricity to fulfil its task Electricity to fulfil its task under under sentence 1. sentence 1.

• 503. 

  6. Upon request of the 6. Upon request of the No change:

  Commission, the ENTSO for Commission, the ENTSO for 6. Upon request of the Commission, the Electricity shall give its views Electricity shall give its views to ENTSO for Electricity shall give its views to to the Commission on the the Commission on the adoption the Commission on the adoption of the adoption of the guidelines as of the guidelines as laid down in guidelines as laid down in Article 57. laid down in Article 57. Article 57.

ANNEX I TREE.2.B EN

• 504. 

  Article 28 Consultations

• 505. 

  1. While preparing the AM 124 1. While preparing the Provisionally agreed: proposals pursuant to the tasks 1. While preparing the proposals pursuant to the tasks

  referred to in Article 27(1) , the proposals pursuant to the tasks referred to in Article 27(1), the 1. While preparing the proposals ENTSO for Electricity shall referred to in Article 27(1), the ENTSO for Electricity shall pursuant to the tasks referred to in Article conduct an extensive ENTSO for Electricity shall conduct an extensive 27(1), the ENTSO for Electricity shall consultation process, at an early conduct an extensive consultation consultation process, at an early conduct an extensive consultation process, at stage and in an open and process, at an early stage and stage and in an open and an early stage and structured in a way to transparent manner, involving structured in a way to enable transparent manner, involving enable accommodating stakeholder all relevant stakeholders , and, accommodating stakeholder all relevant stakeholders, and, in comments before final adoption and in an in particular, the organisations comments before final adoption particular, the organisations open and transparent manner, involving all representing all stakeholders, in and in an open and transparent representing all stakeholders, in relevant stakeholders, and, in particular, the accordance with the rules of manner, involving all relevant accordance with the rules of organisations representing all stakeholders, procedure referred to in Article stakeholders, and, in particular, the procedure referred to in Article in accordance with the rules of procedure 26 . That consultation shall also organisations representing all 26. That consultation shall also referred to in Article 26 . That consultation involve national regulatory stakeholders, in accordance with involve national regulatory shall also involve national regulatory authorities and other national the rules of procedure referred to in authorities and other national authorities and other national authorities, authorities, supply and Article 26 . That consultation shall authorities, supply and supply and generation undertakings, system generation undertakings, system also involve national regulatory generation undertakings, system users including customers [ ] distribution users including customers, authorities and other national users including customers, system operators, including relevant industry distribution system operators, authorities, supply and generation distribution system operators, associations, technical bodies and including relevant industry undertakings, system users including relevant industry stakeholder platforms. It shall aim at associations, technical bodies including customers and their associations, technical bodies identifying the views and proposals of all and stakeholder platforms. It representatives, distribution system and stakeholder platforms. It relevant parties during the decision-making shall aim at identifying the operators, including relevant shall aim at identifying the process. views and proposals of all industry associations, technical views and proposals of all relevant parties during the bodies and stakeholder platforms. relevant parties during the decision-making process. It shall aim at identifying the views decision-making process. and proposals of all relevant parties during the decision-making process.

ANNEX I TREE.2.B EN

• 506. 

  2. All documents and 2. All documents and No change: minutes of meetings related to minutes of meetings related to 2. All documents and minutes of the consultations referred to in the consultations referred to in meetings related to the consultations referred paragraph 1 shall be made paragraph 1 shall be made to in paragraph 1 shall be made public. public. public.

• 507. 

  3. Before adopting the 3. Before adopting the No change: proposals pursuant to Article proposals pursuant to Article 3. Before adopting the proposals 27(1) the ENTSO for 27(1) the ENTSO for Electricity pursuant to Article 27(1) the ENTSO for Electricity shall indicate how shall indicate how the Electricity shall indicate how the the observations received observations received during the observations received during the consultation during the consultation have consultation have been taken have been taken into consideration. It shall been taken into consideration. It into consideration. It shall provide reasons where observations have not shall provide reasons where provide reasons where been taken into account observations have not been observations have not been

  taken into account. taken into account.

• 508. 

  Article 29 Monitoring by the Agency

• 509. 

  1. The Agency shall 1. The Agency shall monitor No change: monitor the execution of the the execution of the tasks 1. The Agency shall monitor the tasks referred to in Article referred to in Article 27(1), (2) execution of the tasks referred to in Article 27(1), (2) and (3) of the and (3) of the ENTSO for 27(1), (2) and (3) of the ENTSO for ENTSO for Electricity and Electricity and report to the Electricity and report to the Commission. report to the Commission. Commission.

ANNEX I TREE.2.B EN

• 510. 

  The Agency shall monitor the The Agency shall monitor the No change: implementation by the ENTSO implementation by the ENTSO The Agency shall monitor the for Electricity of network codes for Electricity of network codes implementation by the ENTSO for elaborated under Article 55(14) elaborated under Article 55(14). Electricity of network codes elaborated . Where the ENTSO for Where the ENTSO for under Article 55(14). Where the ENTSO for Electricity has failed to Electricity has failed to Electricity has failed to implement such implement such network codes, implement such network codes, network codes, the Agency shall request the the Agency shall request the the Agency shall request the ENTSO for Electricity to provide a duly ENTSO for Electricity to ENTSO for Electricity to reasoned explanation as to why it has failed provide a duly reasoned provide a duly reasoned to do so. The Agency shall inform the explanation as to why it has explanation as to why it has Commission of that explanation and provide failed to do so. The Agency failed to do so. The Agency shall its opinion thereon. shall inform the Commission of inform the Commission of that

  that explanation and provide its explanation and provide its opinion thereon. opinion thereon.

• 511. 

  The Agency shall monitor and The Agency shall monitor and No change: analyse the implementation of analyse the implementation of The Agency shall monitor and analyse the the network codes and the the network codes and the implementation of the network codes and the guidelines adopted by the guidelines adopted by the guidelines adopted by the Commission as Commission as laid down in Commission as laid down in laid down in Article 54(1), and their effect Article 54(1) , and their effect Article 54(1), and their effect on on the harmonisation of applicable rules on the harmonisation of the harmonisation of applicable aimed at facilitating market integration as applicable rules aimed at rules aimed at facilitating market well as on non-discrimination, effective facilitating market integration integration as well as on noncompetition and the efficient functioning of as well as on nondiscrimination, effective the market, and report to the Commission. discrimination, effective competition and the efficient

  competition and the efficient functioning of the market, and functioning of the market, and report to the Commission. report to the Commission.

ANNEX I TREE.2.B EN

• 512. 

  2. The ENTSO for 2. The ENTSO for No change:

  Electricity shall submit the draft Electricity shall submit the draft 2. The ENTSO for Electricity shall Union-wide network Union-wide network submit the draft Union-wide network development plan, the draft development plan, the draft development plan, the draft annual work annual work programme, annual work programme, programme, including the information including the information including the information regarding the consultation process, and the regarding the consultation regarding the consultation other documents referred to in Article 27(1) process, and the other process, and the other to the Agency for its opinion. documents referred to in Article documents referred to in Article 27(1) to the Agency for its 27(1) to the Agency for its opinion. opinion.

• 513. 

  Within two months from the Within two months from the day No change: day of receipt, the Agency shall of receipt, the Agency shall Within two months from the day of receipt, provide a duly reasoned opinion provide a duly reasoned opinion the Agency shall provide a duly reasoned as well as recommendations to as well as recommendations to opinion as well as recommendations to the the ENTSO for Electricity and the ENTSO for Electricity and to ENTSO for Electricity and to the to the Commission where it the Commission where it Commission where it considers that the draft considers that the draft annual considers that the draft annual annual work programme or the draft Unionwork programme or the draft work programme or the draft wide network development plan submitted Union-wide network Union-wide network by the ENTSO for Electricity do not development plan submitted by development plan submitted by contribute to non-discrimination, effective the ENTSO for Electricity do the ENTSO for Electricity do competition, the efficient functioning of the not contribute to nonnot contribute to nonmarket or a sufficient level of cross-border discrimination, effective discrimination, effective interconnection open to third-party access. competition, the efficient competition, the efficient

  functioning of the market or a functioning of the market or a sufficient level of cross-border sufficient level of cross-border interconnection open to thirdinterconnection open to thirdparty access. party access.

ANNEX I TREE.2.B EN

• 514. 

  Article 30 Costs

• 515. 

  The costs related to the The costs related to the activities No change: activities of the ENTSO for of the ENTSO for Electricity The costs related to the activities of the Electricity referred to in referred to in Articles 25 to 29 ENTSO for Electricity referred to in Articles Articles 25 to 29 and 54 to 57 and 54 to 57 of this Regulation, 25 to 29 and 54 to 57 of this Regulation, and of this Regulation, and in and in Article 11 of Regulation in Article 11 of Regulation (EU) No Article 11 of Regulation (EU) (EU) No 347/2013 shall be 347/2013 shall be borne by the transmission No 347/2013 shall be borne by borne by the transmission system operators and shall be taken into the transmission system system operators and shall be account in the calculation of tariffs. operators and shall be taken taken into account in the Regulatory authorities shall approve those into account in the calculation calculation of tariffs. Regulatory costs only if they are reasonable and of tariffs. Regulatory authorities authorities shall approve those appropriate. shall approve those costs only if costs only if they are reasonable

  they are reasonable and and appropriate. appropriate.

ANNEX I TREE.2.B EN

• 516. 

  Article 31 Regional cooperation of transmission system operators

• 517. 

  1. Transmission system 1. Transmission system No change: operators shall establish operators shall establish regional 1. Transmission system operators shall regional cooperation within the cooperation within the ENTSO establish regional cooperation within the ENTSO for Electricity to for Electricity to contribute to ENTSO for Electricity to contribute to the contribute to the activities the activities referred to in activities referred to in Article 27(1), (2) and referred to in Article 27(1), (2) Article 27(1), (2) and (3). In (3). In particular, they shall publish a and (3). In particular, they shall particular, they shall publish a regional investment plan every two years, publish a regional investment regional investment plan every and may take investment decisions based on plan every two years, and may two years, and may take that regional investment plan. The ENTSO take investment decisions based investment decisions based on for Electricity shall promote cooperation on that regional investment that regional investment plan. between transmission system operators at plan. The ENTSO for The ENTSO for Electricity shall regional level ensuring interoperability, Electricity shall promote promote cooperation between communication and monitoring of regional cooperation between transmission system operators at performance in those areas which are not yet transmission system operators regional level ensuring harmonised at Union level. at regional level ensuring interoperability, communication

  interoperability, communication and monitoring of regional and monitoring of regional performance in those areas performance in those areas which are not yet harmonised at which are not yet harmonised at Union level. Union level.

ANNEX I TREE.2.B EN

• 518. 

  2. Transmission system 2. Transmission system No change: operators shall promote operators shall promote 2. Transmission system operators shall operational arrangements in operational arrangements in promote operational arrangements in order to order to ensure the optimum order to ensure the optimum ensure the optimum management of the management of the network and management of the network and network and shall promote the development shall promote the development shall promote the development of energy exchanges, the coordinated of energy exchanges, the of energy exchanges, the allocation of cross-border capacity through coordinated allocation of crosscoordinated allocation of crossnon-discriminatory market-based solutions, border capacity through nonborder capacity through nonpaying due attention to the specific merits of discriminatory market-based discriminatory market-based implicit auctions for short-term allocations, solutions, paying due attention solutions, paying due attention and the integration of balancing and reserve to the specific merits of implicit to the specific merits of implicit power mechanisms.

  auctions for short-term auctions for short-term allocations, and the integration allocations, and the integration of balancing and reserve power of balancing and reserve power mechanisms. mechanisms.

• 519. 

  3. For the purposes of AM 125 3. For the purposes of To be discussed achieving the goals set in 3. For the purposes of achieving the goals set in

  paragraphs 1 and 2 of this achieving the goals set in paragraphs 1 and 2 of this Article, the geographical area paragraphs 1 and 2 of this Article, Article, the geographical area covered by each regional the geographical area covered by covered by each regional cooperation structure may be each regional cooperation structure cooperation structure may be defined by the Commission, may be defined by the defined by the Commission, taking into account existing Commission, taking into account taking into account existing regional cooperation structures. existing regional cooperation regional cooperation structures. Each Member State shall be structures. Each Member State Each Member State shall be allowed to promote cooperation shall be allowed to promote allowed to promote cooperation in more than one geographical cooperation in more than one in more than one geographical area. The Commission is geographical area. The area. The Commission is empowered to adopt delegated Commission is empowered to empowered to adopt [ ] acts in accordance with Article adopt delegated acts in accordance implementing acts in 63 concerning the geographical with Article 63 concerning the accordance with Article [ ] area covered by each regional geographical area covered by each 62(2) concerning the cooperation structure. For that regional cooperation structure. For geographical area covered by purpose, the Commission shall that purpose, the Commission shall each regional cooperation consult the Agency and the consult the regulatory authorities, structure. The decisions and

ANNEX I TREE.2.B EN

ENTSO for Electricity. the Agency and the ENTSO for empowerment referred to in Electricity. this paragraph are without prejudice to Article 33 and

shall be subject to consultations. For that purpose, the Commission shall consult the Agency and the ENTSO for Electricity.

• 520. 

  Article 32 Article 32 Provisionally agreed: Establishment and mission of Establishment and mission of [ ] Article 32 regional operational centres Regional Security Coordinators Establishment and mission of Regional Coordination Centres

• 521. 

  1. By [OP: twelve months AM 126 1. By [OP: twelve months Provisionally agreed: after entry into force], all 1. By [OP: twelve months after after entry into force], all

transmission system operators entry into force], regional transmission system operators of 1. By [OP: twelve months after entry into shall establish regional coordination centres shall in a [ ] system operation region force], all transmission system operators of a

operational centres in addition to other tasks that are shall submit a proposal for the system operation region shall submit to accordance with the criteria set laid out in Article 34 of this enhancement of Regional the respective regulatory authorities a out in this chapter. Regional Regulation, replace and cover the Security Coordinators proposal for the establishment of Regional operational centres shall be functions of regional security established pursuant to the Coordination Centres in accordance with established in the territory of coordinators established in System Operation Guideline the criteria set out in this chapter. one of the Member States of the accordance with the adopted on the basis of Article region where it will operate. Regulation...[the Commission 18 of Regulation 714/2009 i for Regulation establishing a approval by the respective guideline on Electricity regulatory authorities. Transmission System Operation] pursuant to the criteria set out in this chapter.

ANNEX I TREE.2.B EN

• 522. 

  If a region is not covered by an Provisionally agreed to delete, and introduce existing or a planned regional a new recital (line 46)

  security coordinator, the transmission system operators of that region shall establish a regional coordination centre.

• 523. 

  All transmission system operators Provisionally agreed to delete, in line with shall adhere to a single regional the compromise in line 542

  coordination centre. 524. All transmission system operators Provisionally agreed to delete

  of a system operation region shall submit to the regulatory authorities of the system operation region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter.

• 525. 

  The regulatory authorities of the Provisionally agreed: system operation region shall The regulatory authorities of the system review and approve the proposal operation region shall review and approve in compliance with the procedures the proposal [ ]

  established pursuant to Article 8 of Regulation (EU) ... [recast of Regulation (EC) No 713/2009 i as proposed by COM(2016) 863 i]

• 526. 

  The proposals referred to the forth The proposal shall contain the Provisionally agreed: subparagraph shall include the following elements: The proposal shall at least include the following information: following elements:

ANNEX I TREE.2.B EN

• 527. 

  (a) Member State where the a) the participating Provisionally agreed: regional coordination centre are Member States and TSOs;

  to be located; a) the [ ] Member State where the seat of the Regional Coordination Centres will be located and the participating TSOs;

• 528. 

  (b) the organisational, financial b) the organisational, Provisionally agreed: (identical texts) and operational arrangements financial and operational b) the organisational, financial and necessary to ensure the efficient, arrangements necessary to operational arrangements necessary to secure and reliable operation of ensure the efficient, secure and ensure the efficient, secure and reliable the interconnected transmission reliable operation of the operation of the interconnected

  system; interconnected transmission transmission system; system;

• 529. 

  (c) an implementation plan for the c) an implementation plan Provisionally agreed: (identical texts) entry into operation of the for the entry into operation of c) an implementation plan for the regional coordination centres; the Regional Security entry into operation of the Regional Coordinators; Coordination Centres

• 530. 

  (d) the statutes and rules of d) the statutes and rules of Provisionally agreed: (identical texts) procedure of regional procedure of Regional d) the statutes and rules of procedure coordination centres; Security Coordinators; of Regional Coordination Centres

• 531. 

  (e) a description of cooperative e) a description of Provisionally agreed: (identical texts) processes in accordance with cooperative processes in e) a description of cooperative

  Article 35; accordance with Article 35; processes in accordance with Article 35; 532. (f) a description of the f) a description of the Provisionally agreed: (identical texts)

  arrangements concerning the arrangements concerning the f) a description of the arrangements liability of regional coordination liability of Regional Security concerning the liability of Regional centres in accordance with Article Coordinators in accordance Coordination Centres in accordance with 44. with Article 44. Article 44.

ANNEX I TREE.2.B EN

532a. Provisionally agreed:

(g) (new) where two Regional Coordination Centres are maintained on a rotational basis, a description of the arrangements to provide clear responsibilities and procedures on the execution of their tasks.

• 533. 

  2. Regional operational 2. [ ] Regional Security Provisionally agreed: centres shall be organised in a Coordinators shall be

  legal form as referred to in established in the system 2. Regional Coordination Centres shall be Article 1 of Directive operation region where it will [ ] organised in a legal form as referred to in 2009/101/EC of the European carry out its tasks and shall be [ ] Annex II of Directive [ ] (EU) Parliament and of the Council. 27 organised in a legal form as 2017/1132 of the European Parliament and referred to in [ ] Annex II of of the Council 29 .

  Directive [ ] (EU) 2017/1132 of the European Parliament and of the Council 28 .

• 534. 

  AM 127 Provisionally agreed:

  Article 32 – paragraph 1 a (new) 1a (new) Following the approval by 1 a. Regional coordination national regulatory authorities of the centres shall enter into operation proposal in paragraph 1, Regional by [OP: twelve months after entry Coordination Centres shall replace into force of this Regulation]. Regional Security Coordinators established pursuant to the System Operation Guideline adopted on the basis of Article 18 of Regulation 714/2009 i and enter into operation by 1 July 2022.

27 Directive 2009/101/EC i of the European Parliament and of the Council of 16 September 2009 on coordination of safeguards which, for the protection of the interests of members and third parties, are required by Member States of companies within the meaning of the second paragraph of Article 48 of the Treaty, with a view to making such safeguards equivalent (OJ L 258, 1.10.2009, p. 11).

28 Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169,

30.6.2017, p. 46). 29 Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169,

30.6.2017, p. 46).

ANNEX I TREE.2.B EN

• 535. 

  AM 128 Provisionally agreed:

  Article 32 – paragraph 2 a (new) 2 a. In performing its functions 2 a. In performing its [ ] tasks under under Union law, the regional Union law, the Regional Coordination coordination centres shall act Centres shall act independently from independently from individual individual national interests and from the national interests and from the interests of transmission system operators. interests of transmission system operators.

• 536. 

  3. Regional operational AM 129 3. [ ] Transmission system Provisionally agreed: centres shall complement the 3. Regional coordination operators shall be responsible

  role of transmission system centres shall complement the role for managing electricity flows Regional Coordination Centres shall operators by performing of transmission system operators and ensure a secure, reliable complement the role of transmission system functions of regional relevance. by performing functions of regional and efficient electricity system operators by performing the tasks of They shall establish operational relevance. The transmission system in accordance with Article 40 regional relevance assigned to them in arrangements in order to ensure operators shall be responsible for of the [recast of Directive accordance with Article 34. Transmission the efficient, secure and reliable managing electricity flows and 2009/72/EC as proposed by system operators shall be responsible for operation of the interconnected ensuring a secure, reliable and COM(2016) 864 i/2] and with managing electricity flows and ensuring a transmission system. efficient electricity system in national legislation. Regional secure, reliable and efficient electricity accordance with Article 40 of the Security Coordinators shall system in accordance with Article 40 of Directive (EU) [recast of Directive complement the role of the Directive (EU) [recast of Directive 2009/72/EC as proposed by transmission system operators 2009/72/EC as proposed by COM(2016) COM(2016) 864 i/2]. by performing [ ] tasks of 864/2]. regional relevance [ ] assigned to them in accordance with Article 34.

• 537. 

  4a. Regional Security Provisionally agreed to delete.

  Coordinators shall take up their new tasks set out in [ ] Article 34(1) by 1 January 2025. All Member States of the same system operation region, can jointly decide on earlier operation of the respective Regional Security Coordinator [+].

ANNEX I TREE.2.B EN

• 538. 

  Article 33 AM 130 Article 33 Provisionally agreed: Geographical scope of regional Article 33 – title Geographical scope of [ ] Article 33 operational centres Geographical scope of regional Regional Security Coordinators Geographical scope of Regional coordination centres Coordination Centres

• 539. 

  0a. For the purpose of this Provisionally agreed to delete. This

  Regulation, the geographical paragraph is covered in row 541. areas covered by each of the transmission system operators [ ] sharing the same regional security coordinators established pursuant to the System Operation Guideline adopted on the basis of Article 18 of Regulation 714/2009 i shall be referred to as system operation regions.

• 540. 

  0b. Regional security Provisionally agreed: coordinators may encompass

  larger or smaller geographical The concerned transmission system areas than those existing operators may submit a proposal to the pursuant to the System Agency for the amendment of system Operation Guideline adopted operation regions defined pursuant to on the basis of Article 18 of paragraph 1. The process in paragraph 2 Regulation 714/2009 i. In such shall apply. instance, the respective transmission system operators shall submit a proposal to the Agency defining the system operation regions covered by the Regional security coordinator.

ANNEX I TREE.2.B EN

• 541. 

  1. By [OP: six months after AM 131

  entry into force of this 1. By [OP: six months after 1. By [OP: six months after

  Provisionally agreed:

  Regulation] the ENTSO for entry into force of this Regulation] entry into force of this

  Electricity shall submit to the the ENTSO for Electricity shall Regulation] the ENTSO for

  By [OP: six months after entry into force of

  Agency a proposal defining submit to the Agency a proposal Electricity shall submit to the

  this Regulation] the ENTSO for Electricity

  system operation regions defining system operation regions Agency a proposal [ ]

  shall submit to the Agency a proposal[ ] specifying which transmission system

  covered by regional operational covered by regional coordination specifying which transmission operators, bidding zones, bidding zone centres, taking into account centres, taking into account system operators, bidding borders, capacity calculation regions and existing regional security existing regional security zones, bidding zone borders, outage coordination regions are covered coordinators, on the basis of the coordinators, on the basis of the capacity calculation regions by each of the system operation regions.

  following criteria: following criteria: and outage coordination regions are covered by each of The proposal shall take into account the

  the system operation regions. grid topology, including the degree of interconnection and of interdependency of

the power system in terms of flows and the size of the region which shall cover at least

one capacity calculation region. 542. 1a. Where a Member State Provisionally agreed:

is part of multiple different 1a. The transmission system operators of a

synchronous areas, the system operation region shall adhere to

transmission system operator the Regional Coordination Centre

may be coordinated by two established in that region.

regional security coordinators. Exceptionally, where the control area of a

For the bidding zone borders transmission system operator is part of

adjacent to system operation multiple different synchronous areas, the

regions, the proposal in transmission system operator may be

paragraph 1 shall specify how coordinated by two Regional

the coordination between Coordination Centres. For the bidding

regional security coordinators zone borders adjacent to system operation

for these borders is to take regions, the proposal in paragraph 1 shall

place. specify how the coordination between

Regional Coordination Centres for these

borders is to take place.

For the Continental Europe synchronous

area, where the activities of two Regional

Coordination Centres may overlap in a

ANNEX I TREE.2.B EN

system operation region, the TSOs of that system operation region shall decide to either designate a single Regional Coordination Centre in that region or that the two Regional Coordination Centres perform some or all of the tasks of regional relevance in the entire system operation region on a rotational basis and other tasks by a single designated Regional Coordination Centre.

• 543. 

  1b. Each of the Regional

  Security Coordinators shall Provisionally agreed to delete perform the tasks listed in Article 34(1) for the [ ] transmission system operators of the system operation region where it is established.

• 544. 

  (a) The grid topology, [ ] Provisionally agreed to delete including the degree of

  interconnection and of [ ] interdependency of the power systems in terms of flows;

ANNEX I TREE.2.B EN

• 545. 

  (b) the synchronous [ ] Provisionally agreed to delete connection of the systems;

  [ ]

• 546. 

  (c) the size of the region, [ ] Provisionally agreed to delete which shall cover at least one

  capacity calculation region; [ ]

• 547. 

  (d) the geographical [ ] Provisionally agreed to delete optimization of balancing

  reserves. [ ]

• 548. 

  2. Within three months of 2. Within three months of Provisionally agreed: receipt, the Agency shall either receipt of the proposal in

  approve the proposal defining paragraph 1, the Agency shall 2. Within three months of receipt of the the system operation regions or either approve the proposal proposal in paragraph [1], the Agency propose amendments. In the defining the system operation shall either approve the proposal [ ] or latter case, the Agency shall regions or propose amendments. propose amendments. In the latter case, the consult the ENTSO for In the latter case, the Agency Agency shall consult the ENTSO for Electricity before adopting the shall consult the ENTSO for Electricity before adopting the amendments. amendments. The adopted Electricity before adopting the The adopted proposal shall be published on proposal shall be published on amendments. The adopted the Agency's website. the Agency's website. proposal shall be published on the Agency's website.

ANNEX I TREE.2.B EN

• 549. 

  Article 34 AM 132 Article 34 Provisionally agreed: Tasks of regional operational Article 34 – title Tasks of [ ] Regional Security Article 34 centres Tasks of regional coordination Coordinators Tasks of Regional Coordination Centres centres

• 550. 

  1. Each regional operational AM 133 1. Each Regional [ ] Provisionally agreed: centre shall perform all the 1. Each regional coordination security coordinator shall

  following functions in the centre shall perform all the perform [ ] the following [ ] 1. Each Regional Coordination Centre system operation region where following functions in the system tasks of regional relevance for shall perform at least all the following tasks it is established and regional operation region where it is transmission system operators of regional relevance [ ] in the entire operational centres shall established and regional in the system operation region [ system operation region where it is perform at least the following coordination centres shall perform ] set out in more detail in Annex established, set out in more detail in Annex I: functions, set out in more detail at least the following functions, set I: in Annex I: out in more detail in Annex I:

• 551. 

  (a) coordinated capacity (a) coordinated capacity (a) coordinated capacity To be discussed calculation; calculation in accordance with the calculation in accordance with

  methodologies developed pursuant the methodologies developed to Articles 21, 26, 29 and 30 of pursuant to the Capacity Regulation (EU) 2015/1222; Allocation and Congestion Management Guideline adopted on the basis of Article 18 of Regulation 714/2009 i;

• 552. 

  (b) coordinated security (b) coordinated security analysis (b) coordinated security To be discussed analysis; in accordance with the analysis in accordance with the

  methodologies developed pursuant methodologies developed to Articles 75 and 76 of pursuant to the System Commission Regulation (EU) Operation Guideline adopted

  2017/1485 1a ; on the basis of Article 18 of 1a Commission Regulation (EU) Regulation 714/2009 i;

  2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation (OJ L 220, 25.8.2017, p. 1).

ANNEX I TREE.2.B EN

• 553. 

  (c) creation of common (c) creation of common system (c) creation of common [ ] To be discussed system models; models in accordance with the grid models in accordance with

  methodologies and procedures the methodologies and developed pursuant to Articles 67, procedures developed 70 and 79 of Commission pursuant to the System Regulation (EU) 2017/1485; Operation Guideline adopted on the basis of Article 18 of Regulation 714/2009 i;

• 554. 

  (d) consistency assessment (d) consistency assessment of (d) support the consistency To be discussed of transmission system transmission system operators' assessment of transmission

  operators' defense plans and defense plans and restoration plans system operators' defence plans restoration plans; in accordance with the procedure and restoration plans in set out in Article 6 of Commission accordance with the procedure Regulation (EU) 2017/2196 b ; set out in the Emergency and 1b Commission Regulation (EU) Restoration Network Code 2017/2196 of 24 November 2017 adopted on the basis of Article establishing a network code on 6 of Regulation 714/2009 i; electricity emergency and restoration (OJ L 312, 28.11.2017, p. 54)

• 555. 

  (da) regional week ahead to Provisionally agreed to modified EP text, day-ahead system adequacy and to adapt it after conclusion of

  forecasts and assessments of negotiations on the Risk preparedness risk reducing actions in regulation:

  accordance with the

  procedures set out in the (da) regional week ahead to [day-ahead / System Operation Guideline intraday] system adequacy forecasts and adopted on the basis of Article preparation [ ] of risk reducing actions in 18 of Regulation 714/2009 i; accordance with the methodology set out

  in Article 8 of Regulation (EU) [Regulation on risk preparedness as proposed by COM(2016)862 i] and the procedures set out in the System Operation Guideline adopted on the basis of Article 18 of Regulation 714/2009 i;

ANNEX I TREE.2.B EN

• 556. 

  (db) regional outage planning Provisionally agreed (Without the agreement coordination in accordance on the reference to the Guideline, which will with the procedures set out in be decided horizontally)

  the System Operation (db) regional outage planning Guideline adopted on the basis coordination in accordance with the of Article 18 of Regulation procedures set out in the System 714/2009; Operation Guideline adopted on the basis of Article 18 of Regulation 714/2009 i;

• 557. 

  (dc) training and Provisionally agreed: certification of staff working (dc) training and certification of staff for Regional Security working for Regional Coordination Coordinators[+]; Centres;

• 558. 

  (e) coordination and (e) support the coordination Provisionally agreed: optimization of regional and optimization of regional (e) support the coordination and restoration; restoration as requested by optimization of regional restoration as transmission system operators; requested by transmission system operators;

• 559. 

  (f) post-operation and post(f) post-operation and post No change: disturbances analysis and disturbances analysis and (f) post-operation and post-disturbances reporting; reporting; analysis and reporting;

• 560. 

  (g) regional sizing of reserve [ ] Provisionally agreed (revert to original capacity; COM proposal):

  (g) regional sizing of reserve capacity; 561. (h) facilitate the regional (h) calculation of the regional [ ] Provisionally agreed (revert to original

  procurement of balancing balancing capacity; COM proposal): capacity; (h) facilitate the regional procurement of balancing capacity;

ANNEX I TREE.2.B EN

• 562. 

  (i) regional week ahead to (i) regional week ahead to [ ] Provisionally agreed: intraday system adequacy intraday system adequacy forecasts [ ]

  forecasts and preparation of risk and preparation of risk reducing reducing actions; actions in accordance with the (included in line 555) methodology set out in Article 8 of Regulation (EU) ... [Regulation on risk preparedness as proposed by COM(2016) 862 i] and the procedures set out in Article 81 of Commission Regulation (EU) 2017/1485[The Commission Regulation establishing a Guideline on electricity transmission system operation];

• 563. 

  (j) outage planning (j) outage planning coordination [ ] Provisionally agreed: coordination; in accordance with the procedures [ ]

  set out in Article 80 of Commission Regulation (EU) (included in line 556) 2017/1485 ;

• 564. 

  (k) optimisation of (k) optimisation of [ ] Provisionally agreed: compensation mechanisms compensation mechanisms between (k) Support transmission system between transmission system transmission system operators; operators, at their request, in the operators; optimization of inter- transmission system operators settlements

• 565. 

  (l) training and certification; (l) training and certification; [ ] Provisionally agreed (covered by line 557): [ ]

• 566. 

  (m) identification of regional deleted (m) identification of regional Provisionally agreed: crisis scenarios according to crisis scenarios if and to the (m) identification of regional crisis Article 6(1) of [Regulation on extent they are requested scenarios if and to the extent they are risk preparedness as proposed pursuant to Article 6(1) of requested pursuant to Article 6(1) of by COM(2016) 862 i] if this task [Regulation on risk preparedness [Regulation on risk preparedness as proposed is delegated by ENTSO for as proposed by COM(2016) 862 i; by COM(2016) 862 i; Electricity;

ANNEX I TREE.2.B EN

• 567. 

  (n) preparation and carrying (n) preparation and carrying No change: out of yearly crisis simulations out of yearly crisis simulations

  in cooperation with competent in cooperation with competent (n) preparation and carrying out of yearly authorities pursuant to Article authorities pursuant to Article crisis simulations in cooperation with 12(3) of [Regulation on risk 12(3) of [Regulation on risk competent authorities pursuant to Article preparedness as proposed by preparedness as proposed by 12(3) of [Regulation on risk preparedness as COM(2016) 862 i]; COM(2016) 862 i]; proposed by COM(2016) 862 i];

• 568. 

  (o) tasks related to the (o) tasks related to the [ ] Provisionally agreed: identification of regional crisis identification of regional crisis [ ]

  scenarios if and to the extent scenarios if and to the extent they they are delegated to the are delegated to the regional regional operational centres coordination centres pursuant to pursuant to Article 6(1) of Article 6(1) of [Regulation on risk [Regulation on risk preparedness as proposed by preparedness as proposed by COM(2016) 862 i]; COM(2016) 862 i];

• 569. 

  (p) tasks related to the (p) tasks related to the seasonal (p) tasks related to the Provisionally agreed: seasonal adequacy outlooks if adequacy outlooks if and to the seasonal adequacy outlooks if (p) tasks related to the seasonal adequacy and to the extent they are extent they are delegated to the and to the extent they are outlooks if and to the extent they are delegated to the regional regional coordination centres requested [ ] pursuant to Article delegated to the regional coordination operational centres pursuant to pursuant to Article 9(2) of 9([ ] 3) of [Regulation on risk centres pursuant to Article 9(2) of Article 9(2) of [Regulation on [Regulation on risk preparedness as preparedness as proposed by [Regulation on risk preparedness as proposed risk preparedness as proposed proposed by COM(2016) 862 i]; COM(2016) 862 i]; by COM(2016) 862 i]; by COM(2016) 862 i];

• 570. 

  (q) calculate the maximum (q) calculate the value for Provisionally agreed: entry capacity available for the the maximum entry capacity

  participation of foreign capacity available for the participation of (q) calculate the value for the maximum in capacity mechanisms foreign capacity in capacity entry capacity available for the participation pursuant to Article 21(6). mechanisms [ ] for the purpose of foreign capacity in capacity mechanisms [ to issue an recommendation ] for the purposes [ ] of [ ] issuing a pursuant to Article 21(6). recommendation pursuant to Article 21(6).

ANNEX I TREE.2.B EN

• 571. 

  (qa) tasks related to support Provisionally agreed: transmission system operators in (qa) tasks related to support transmission the identification of needs for new system operators in the identification of capacity, for upgrade of existing needs for new transmission capacity, for capacity or their alternatives, to be upgrade of existing transmission capacity submitted to the regional groups or their alternatives, to be submitted to the established pursuant to regional groups established pursuant to Regulation (EU) 347/2013 i and Regulation (EU) 347/2013 i and included in included in the ten-year network the ten-year network development plan development plan referred to in referred to in Article 51 of the Directive Article 51 of the Directive (EU) ... (EU) ... [recast of Directive 2009/72/EC i as [recast of Directive 2009/72/EC i as proposed by COM(2016) 864 i/2]. proposed by COM(2016) 864 i/2].

• 572. 

  2. The Commission may AM 134 2. [ ] Council compromise proposal: add other functions to the 2. The Commission may add Upon joint proposal of Upon joint proposal of their regulatory regional operational centres, not other functions to the regional regulatory authorities, authorities or the Commission, following involving decision making coordination centres, not involving following consultation with the consultation with the Electricity Crosspower, pursuant to Chapter VII decision making power, pursuant to transmission system operators Border Committee, transmission system of this Regulation. Chapter VII of this Regulation. and the Regional Security operators and the Regional Coordination Coordinators, the Member Centre of the system operation region, the States of the system operation Member States of the system operation region may jointly decide to region may jointly decide to provide for provide for additional additional advisory coordination tasks, on advisory coordination tasks, the basis of which their Regional on the basis of which Regional Coordination Centre will issue Security Coordinators will recommendations pursuant to Article 38. issue recommendations In such instance, Regional Coordination pursuant to Article 38. In such Centre shall execute those tasks on the instance, Regional Security basis of the methodologies drafted by the Coordinators shall execute relevant transmission system operators those tasks on the basis of the and agreed by the relevant regulatory methodologies drafted by authorities.

  transmission system operators and agreed by the relevant regulatory authorities.

ANNEX I TREE.2.B EN

• 573. 

  3. Transmission system AM 135 3. Transmission system Provisionally agreed: operators shall provide their 3. Transmission system operators shall provide their [ ] 3. Transmission system operators shall regional operational centre with operators shall provide their Regional Security provide their Regional Coordination the information necessary to regional coordination centre with Coordinators with the Centres with the information necessary to carry out its functions. the information necessary to carry information necessary to carry carry out its [ ] tasks. out its functions. out its [ ] tasks.

• 574. 

  4. Regional operational AM 136 4. [ ] Regional Security Provisionally agreed: centres shall provide 4. Regional coordination Coordinators shall provide 4. Regional Coordination Centres shall transmission system operators centres shall provide transmission transmission system operators of provide transmission system operators of the of the system operation region system operators of the system the system operation region with system operation region with all the with all the information operation region with all the all the information necessary to information necessary to implement the [ ] necessary to implement the information necessary to ensure implement the [ ] coordinated coordinated actions and recommendations decisions and recommendations system stability and security of actions and recommendations proposed by the Regional Coordination proposed by the regional supply. proposed by the [ ] Regional Centres.

  operational centres. Security Coordinators. 575. For the functions set out in this Provisionally agreed:

  Article and not already covered by For the tasks set out in this Article and not the relevant guidelines, the already covered by the relevant network ENTSO for Electricity shall codes or guidelines, the ENTSO for develop a proposal in accordance Electricity shall develop a proposal in with the procedure set out in accordance with the procedure set out in Article 22. Regional coordination Article 22. Regional coordination centres centres shall execute those shall execute those functions on the basis of functions on the basis of a a proposal that has been approved by the proposal that has been approved Agency by the Agency.

ANNEX I TREE.2.B EN

• 576. 

  Article 35 AM 137 Article 35 Provisionally agreed: Cooperation within regional Cooperation within and among Cooperation within [ ] and Article 35 operational centres regional coordination centres between Regional Security Cooperation within and between Regional Coordinators Coordination Centres

• 577. 

  1. The day-to-day operation The day-to-day operation of 1. The day-to-day [ ] Provisionally agreed: of regional operational centres regional coordination centres shall coordination within and

  shall be managed through be managed through cooperative between Regional Security 1. The day-to-day [ ] coordination within cooperative decision-making. decision making amongst the Coordinators shall be managed and between Regional Coordination The cooperative-decision transmission system operators of through cooperative [ ] Centres shall be managed through making process shall be based the region, including processes [ ] based on: cooperative [ ] processes amongst the on: arrangements for coordination transmission system operators of the region, between regional coordination including arrangements for coordination centres where relevant. The between Regional Coordination Centres cooperative process shall be based where relevant. The cooperative process on: shall be based on:

• 578. 

  (a) working arrangements to (a) working arrangements to Provisionally agreed: address planning and address planning and operational (a) working arrangements to address operational aspects related to aspects [ ] relevant for the planning and operational aspects [ ] the functions, in accordance tasks referred to in Article relevant for the tasks referred to in Article with Article 36; 34(1); 34[ ];

• 579. 

  (b) a procedure for (b) a procedure for consulting, (b) a procedure for sharing Provisionally agreed: consulting the transmission in an efficient and inclusive analysis and consulting (b) a procedure for sharing analysis and system operators of the system manner, the transmission system Regional Security consulting Regional Coordination Centres' operation region in the exercise operators and relevant Coordinators proposals with proposals with the transmission system of its operational duties and stakeholders of the system the transmission system operators of the system operation region and tasks, in accordance with operation region in accordance operators of the system relevant stakeholders, in an efficient and Article 37; with Article 37; operation region in the exercise inclusive manner, in the exercise of the of the operational duties and operational duties and tasks in accordance tasks in accordance with Article with Article 37 and with other Regional 37 and with other Regional Coordination Centres; Security Coordinators;

ANNEX I TREE.2.B EN

• 580. 

  (c) a procedure for the (c) a procedure for the adoption (c) a procedure for the Provisionally agreed for Council text and adoption of decisions and and revision of decisions and adoption of [ ] coordinated amend line 530 (Article 32(1)(d)):

  recommendations in accordance recommendations in accordance actions and recommendations in with Article 38; with Article 38 that ensures accordance with Article 38; (c) a procedure for the adoption of equitable treatment between coordinated actions and recommendations members of the regional in accordance with Article 38; operational centre;

• 581. 

  (d) a procedure for the deleted (d) a procedure for the Provisionally agreed to delete revision of decisions and revision of [ ] coordinated

  recommendations adopted by actions and recommendations [ regional operational centres in ] issued by Regional Security accordance with Article 39. Coordinators in accordance with Article 39.

• 582. 

  Article 36 Working arrangements

• 583. 

  1. Regional operational AM 138 1. [ ] Regional Security Provisionally agreed: centres shall develop working 1. Regional coordination Coordinators shall develop

  arrangements to address centres shall develop working working arrangements to address 1. Regional Coordination Centres planning and operational arrangements that are efficient, planning and operational aspects shall develop working arrangements that are aspects related to the functions inclusive, transparent and related to the [ ] tasks to be efficient, inclusive, transparent and to be performed, taking into facilitate consensus, to address performed taking into account, facilitate consensus, to address planning and account, in particular, the planning and operational aspects in particular, the specificities operational aspects related to the [ ] tasks to specificities and requirements related to the functions to be and requirements of those [ ] be performed taking into account, in of those functions as specified performed, taking into account, in tasks as specified in Annex I. particular, the specificities and requirements in Annex I. particular, the specificities and Regional Security of those [ ] tasks as specified in Annex I. requirements of those functions as Coordinators shall also Regional Coordination Centres shall also specified in Annex I. develop a process for any develop a process for any revision of these revision of these working working arrangements. arrangements.

ANNEX I TREE.2.B EN

• 584. 

  2. Regional operational AM 139 2. [ ] Regional Security Provisionally agreed: centres shall ensure that the 2. Regional coordination Coordinators shall ensure that 2. Regional Coordination Centres shall working arrangements contain centres shall ensure that the the working arrangements ensure that the working arrangements rules for the notification of working arrangements contain contain rules for the notification contain rules for the notification of parties parties concerned. rules for the notification of parties of parties concerned. concerned.

  concerned.

• 585. 

  Article 37 Consultation procedure

• 586. 

  Regional operational centres AM 140 1. [ ] Regional Security Provisionally agreed: shall develop a procedure to Regional coordination centres Coordinators shall develop a 1. Regional Coordination Centres shall organise, in the exercise of their shall develop a procedure to procedure to organise, in the develop a procedure to organise, in the daily operational duties and organise, in the exercise of their exercise of their daily exercise of their daily operational duties and tasks, the appropriate and daily duties and tasks, the operational duties and tasks, the tasks, the appropriate and regular regular consultation of appropriate and regular appropriate and regular consultation of transmission system transmission system operators consultation of transmission system consultation of transmission operators of the system operation region, and of relevant stakeholders. In operators and of relevant system operators of the system other Regional Coordination Centres and order to ensure that regulatory stakeholders. In order to ensure that operation region, other of relevant stakeholders. In order to ensure issues can be addressed, regulatory issues can be addressed, Regional Security that regulatory issues can be addressed, regulatory authorities shall be regulatory authorities shall be Coordinators and of relevant regulatory authorities shall be involved when involved when required. involved when required. stakeholders. In order to ensure required.

  that regulatory issues can be addressed, regulatory authorities shall be involved when required.

ANNEX I TREE.2.B EN

• 587. 

  2. If necessary, the Provisionally agreed:

  Regional Security Coordinators may consult the 2. [ ] Regional Coordination Centres Member States of the system [ ] shall consult the Member States of the operation region and, where system operation region and, where there applicable, their regional is a regional forum [ ], their regional forums on matters of political forums on matters of political relevance relevance excluding the dayexcluding the day-to-day activities of to-day activities of Regional Regional Coordination Centres and the Security Coordinators and the implementation of their tasks. The implementation of their tasks. Regional Coordination Centres shall take The Regional Security due account of the recommendations given Coordinators shall take due by the Member States and where account of the applicable, by their regional forums. recommendations given by the Member States and where applicable, by their regional forums.

ANNEX I TREE.2.B EN

• 588. 

  AM 141 Provisionally agreed:

  Article 37 a (new) Article 37a Transparency Transparency 1. Regional Coordination Centres shall 1. Regional coordination organise a process for stakeholder centres shall organise a process involvement and organise regular meetings for stakeholder involvement and with stakeholders to discuss matters relating organise regular meetings with to the efficient, secure and reliable stakeholders to discuss matters operation of the interconnected system as relating to the efficient, secure well as to identify shortcomings and and reliable operation of the propose improvements; interconnected system as well as to identify shortcomings and propose improvements;

• 589. 

  2. ENTSO for Electricity and Provisionally agreed: regional operational centres shall

  operate in full transparency 2. ENTSO for Electricity and Regional towards stakeholders and the Coordination Centres shall operate in full general public. All relevant transparency towards stakeholders and the documentation shall be published general public. All relevant documentation on the website of the respective shall be published on the website of regional coordination centre. This ENTSO-E and of the respective Regional paragraph shall apply to the Coordination Centre. proposals, justifications and decisions adopted pursuant to Articles 32 and 33, Article 35(a) and Article 38 of this Regulation.

ANNEX I TREE.2.B EN

• 590. 

  Article 38 AM 142 Article 38 Provisionally agreed to merge articles 38 Adoption of decisions and Article 38 – title [ ] Coordinated actions and and 39

  recommendations Adoption and revisions of recommendations Adoption and revision of coordinated decisions and recommendations actions and recommendations

• 591. 

  1. Regional operational AM 143 1. [ ] The transmission Provisionally agreed: centres shall develop a 1. The transmission system system operators of a system (Following adoption this will be paragraph 1 procedure for the adoption of operators of each regional operation region shall develop of the merged article) decisions and coordination centre shall develop a procedure for the adoption of [ 1. [ ] The transmission system recommendations. procedures for the adoption and ] coordinated actions and operators of a system operation region revision of decisions and recommendations put forward shall develop a procedure for the adoption recommendations that ensures by Regional Security and revision of coordinated actions and geographically balanced Coordinators in accordance recommendations put forward by Regional representation and equitable with the criteria set out in Coordination Centres in accordance with treatment of members of the paragraphs 2 to 4. the criteria set out in paragraphs 2 to 4. regional coordination centre.

• 592. 

  2. Regional operational AM 144 2. [ ] Regional Security Provisionally agreed: centres shall adopt binding 2. Regional coordination Coordinators shall [ ] set-out (Following adoption this will be paragraph 2 decisions addressed to the centres shall adopt binding coordinated actions addressed of the merged article) transmission system operators decisions addressed to the to the transmission system The reference to System Operation Guideline in respect of the functions transmission system operators in operators in respect of the [ ] still to be agreed horizontally. referred to in points (a), (b), (g) respect of the functions referred to tasks referred to in points (a) 2. Regional Coordination Centres shall and (q) of Article 34(1). in (a) and (b) of Article 34(1). and (b), [ ] of Article 34(1). [ ] issue [ ] coordinated actions Transmission system operators Transmission system operators Transmission system operators addressed to the transmission system shall implement the binding shall implement the binding may decide not to [ ] operators in respect of the [ ] tasks referred decisions issued by the regional decisions issued by the regional implement the coordinated to in points (a), (b) [ ] of Article 34(1). operational centres except in coordination centres except in actions [ ] issued by the [ ] Transmission system operators shall cases when the safety of the cases where the implementation of Regional Security implement the [ ] coordinated actions [ ] system will be negatively the decision would result in a Coordinators where the where the implementation of the affected. violation of operational security implementation of the coordinated actions would result in a limits defined by each coordinated actions would violation of the operational security limits transmission system operator result in a violation of the defined by each transmission system pursuant to Article 25 of operational security limits operator [in accordance with [ ] the Commission Regulation (EU) defined by each transmission System Operation Guideline adopted on 2017/1485. system operator in accordance the basis of Article 18 of Regulation with [ ] the System Operation 714/2009].

  Guideline adopted on the basis of Article 18 of Regulation 714/2009.

ANNEX I TREE.2.B EN

• 593. 

  2a. Where following the Provisionally agreed: revision triggered in (Following adoption this will be the second accordance with Article 39, a part of paragraph 2 of the merged article) transmission system operator

  decides not to implement a Where [ ] a transmission system operator coordinated action for the decides not to implement a coordinated reasons set out in paragraph 2, action for the reasons set out in this it shall transparently report paragraph [ ], it shall transparently the detailed reasons to the report the detailed reasons to the Regional Regional Security Coordinator Coordination Centre and the transmission and the transmission system system operators of the system operation operators of the system region without undue delay. In such cases, operation region without the Regional Coordination Centre shall undue delay. In such cases, the assess the impact on the other Regional Security Coordinator transmission system operators of the shall assess the impact on the system operation region and may propose other transmission system a different set of coordinated actions operators of the system subject to the a procedure in this operation region and may paragraph [ ]. propose a different set of coordinated actions subject to a procedure in paragraph 2.

• 594. 

  3. Regional operational AM 145 3. [ ] Regional Security Provisionally agreed: centres shall adopt 3. Regional coordination Coordinators shall adopt (Following adoption this will be paragraph 3 recommendations addressed to centres shall adopt recommendations addressed to of the merged article) the transmission system recommendations addressed to the the transmission system 3. Regional Coordination Centres shall operators for the functions transmission system operators for operators for the [ ] tasks [ ] issue recommendations addressed to the referred to in points (c) to (f) the functions listed in Article 34(1) referred to in [ ] Article 34(1) transmission system operators for the [ ] and (h) to (p) of Article 34(1). which are not referred to in except for tasks covered in tasks listed in Article 34(1) which are not paragraph 2 of this Article. paragraph 2 of this Article. referred to in paragraph 2 of this Article. .

ANNEX I TREE.2.B EN

• 595. 

  AM 146 Provisionally agreed to delete

  Article 38 – paragraph 3 a (new) 3 a. Where a transmission system operator decides to deviate from the decision or recommendation issued by the regional coordination centre, it shall submit a detailed explanation to the regional coordination centre and to other transmission system operators of the system operation region without delay.

• 596. 

  AM 147 Provisionally agreed:

  Article 38 – paragraph 3 b (new) (Following adoption this will be paragraph 4

  3 b. The revision shall be of the merged article)

  triggered at the request of one or

  more of the transmission system 4. The revision of coordinated actions operators of the system operation or a recommendation shall be triggered at region. Following the revision of the request of one or more of the the decision or recommendation, transmission system operators of the system regional operational centres shall operation region. Following the revision of

confirm or modify the measure. the coordinated action or recommendation, regional coordination centres shall confirm

or modify the measure. 597. AM 148 Provisionally agreed to delete

Article 38 – paragraph 3 c (new) 3 c. Where the measure subject to revision is a binding decision in accordance with Article 38(2) of this Regulation, the request for revision shall not suspend the decision except in cases where the implementation of the decision would result in a violation of operational security limits defined by each transmission system operator pursuant to Article 25 of the System Operation guidelines.

ANNEX I TREE.2.B EN

• 598. 

  4. The regulatory AM 149 4. Upon proposal of Council compromise proposal: authorities of a system 4. The regulatory authorities of regulatory authority, following Upon proposal of a regulatory authority operation region may jointly a system operation region may consultation with the or the Commission, following consultation decide to grant binding jointly decide to grant binding transmission system operators with the Electricity Cross-Border decision-making powers to the decision-making powers to the and Regional Security Committee, transmission system operators regional operational centre for regional coordination centre for Coordinators the [ ] Member and Regional Coordination Centre of the one or more of the functions one or more of the functions listed States of a system operation system operation region, the [ ] Member provided for in points (c) to (f) in Article 34(1) and which are not region may jointly decide to States of a system operation region may and (h) to (l) of Article 34(1). referred to in paragraph 2 of this grant the competence for jointly decide to grant the competence for Article. coordinated actions or binding coordinated actions or binding decisiondecision-making powers to the [ making powers to their [ ] Regional ] Regional Security Coordination Centre for one or more of the Coordinators for one or more [ ] tasks provided for in [ ] Article 34(1). of the [ ] tasks provided for in [

  ] Article 34(1).

• 599. 

  Article 39 AM 150 Article 39 Provisionally agreed in TM to merge articles Revision of decisions and deleted Revision of [ ] coordinated 38 and 39

  recommendations actions and recommendations

• 600. 

  1. Regional operational 1. [ ] Regional Security Provisionally agreed to delete centres shall develop a Coordinators shall develop a [ ]

  procedure for the revision of procedure for the revision of [ ] decisions and coordinated actions and recommendations. recommendations referred to tasks described in Article 34.

ANNEX I TREE.2.B EN

• 601. 

  2. The procedure shall be 2. The procedure shall be Provisionally agreed to delete triggered at the request of one triggered at the request of one or [ ]

  or more of the transmission more of the transmission system system operators of the system operators of the system

  operation region. Following the operation region. Following the revision of the decision or revision of the [ ] coordinated recommendation, regional action or recommendation, [ ] operational centres shall Regional Security

  confirm or modify the measure. Coordinators [+] shall confirm or modify the measure.

• 602. 

  3. Where the measure 3. Where the measure Provisionally agreed: subject to revision is a binding subject to revision is a [ ]

  decision in accordance with coordinated action in (Following adoption this will be the first part

  Article 38(2), the request for accordance with Article 38(2), of paragraph 5 of the merged article)

  revision shall not suspend the the request for revision shall not

  decision except in cases when suspend the [ ] coordinated 5. Where the measure subject to revision

  the safety of the system will be action except in cases [ ] where is a coordinated action in accordance with

  negatively affected. the implementation of the [Article 38(2)], the request for revision shall

  coordinated actions would not suspend the coordinated action except

  result in a violation of the in cases [ ] where the implementation of

  operational security limits the coordinated action would result in a

  defined by each transmission violation of the operational security limits

  system operator in accordance defined by each transmission system

  with the System Operation operator in accordance with the System

  Guideline adopted on the basis Operation Guideline adopted on the basis

  of Article 18 of Regulation of Article 18 of Regulation 714/2009 i.

  714/2009

ANNEX I TREE.2.B EN

• 603. 

  4. Where the measure 4. Where following the [ ] Provisionally agreed: subject to revision is a revision [ ] of the (Following adoption this will be the second recommendation in accordance recommendation in accordance part of paragraph 3 of the merged article) with Article 38(3) and with Article 38([ ]3) [ ]a 6. Where [ ] a transmission system following its revision a transmission system operator operator decides to deviate from the transmission system operator decides to deviate from the recommendation, the transmission system decides to deviate from the recommendation, the operator shall submit a [ ] justification to the recommendation, the transmission system operator Regional Coordination Centres and to the transmission system operator shall submit a [ ] justification to other transmission system operators of the shall submit a detailed the [ ] Regional Security system operation region. justification to the regional Coordinators and to the other

  operational centre and to the transmission system operators of other transmission system the system operation region. operators of the system operation region.

ANNEX I TREE.2.B EN

• 604. 

  Article 40 AM 151 Article 40 Provisionally agreed: Management board of regional Article 40 – title Management board of [ ] Article 40 operational centres Management board of regional Regional Security Coordinators Management board of Regional coordination centres Coordination Centres

• 605. 

  1. In order to adopt AM 152 1. In order to adopt measures Provisionally agreed: measures related to their 1. In order to adopt measures related to their governance and 1. In order to adopt measures related to governance and to monitor their related to their governance and to to monitor their performance, their governance and to monitor their performance, the regional monitor their performance, the the [ ] Regional Security performance, the Regional Coordination operational centres shall regional coordination centres shall Coordinators shall establish a Centres shall establish a management board. establish a management board. establish a management board. management board.

• 606. 

  2. The management board AM 153 2. The management board Provisionally agreed: shall be composed of members 2. The management board shall shall be composed of members

  representing the transmission be composed of members representing the transmission 2. The management board shall be system operators and of representing all the transmission system operators [ ]. composed of members representing all the observers representing the system operators of the system transmission system operators [ ] that regulatory authorities of the operation region. The composition participate in the respective Regional system operation region. The of the management board shall be Coordination Centres. representatives of the regulatory geographically balanced. authorities shall have no voting rights.

• 607. 

  3. The management board AM 154 3. The management board No change: shall be responsible for: 3. The management board shall shall be responsible for: 3. The management board shall be be responsible for: responsible for:

• 608. 

  (a) drafting and endorsing (a) drafting and endorsing the (a) drafting and endorsing the Provisionally agreed: the statutes and rules of statutes and rules of procedure of statutes and rules of procedure (a) drafting and endorsing the statutes and procedure of the regional the regional coordination centre; of the [ ] Regional Security rules of procedure of the Regional operational centre; Coordinators; Coordination Centres;

ANNEX I TREE.2.B EN

• 609. 

  (b) deciding upon and (b) [ ] implementing the (b) deciding upon and Provisionally agreed: implementing the organisational structure; implementing the organisational (b) deciding upon and implementing the organisational structure; structure; organisational structure;

• 610. 

  (c) preparing and endorsing (c) preparing and endorsing No change: the annual budget; the annual budget; (c) preparing and endorsing the annual budget;

• 611. 

  (d) developing and endorsing (d) developing and endorsing Provisionally agreed: the cooperative decisionthe cooperative [ ] processes in (d) developing and endorsing the making processes in accordance accordance with Article 35. cooperative [ ] processes in accordance with with Article 35. Article 35.

• 612. 

  4. The competences of the AM 155 4. The competences of the Provisionally agreed: management board shall 4. The competences of the management board shall exclude 4. The competences of the management exclude those that are related to management board shall not those that are related to the dayboard shall exclude those that are related to the day-to-day activities of include decisions related to the to-day activities of [ ] Regional the day-to-day activities of [ ] Regional regional operational centres and execution of the functions of Security Coordinators and the Coordination Centres and the performance the performance of its regional coordination centres. performance of its tasks [ ]. of its tasks [ ].

  functions.

• 613. 

  Article 41 Organisational structure

• 614. 

  1. Regional operational AM 156 Provisionally agreed:

  centres shall set up and manage 1. The transmission system 1. Transmission system their organisation according to operators of a system operation operators shall establish the 1. The transmission system operators of a structure that supports the region shall set up the necessary arrangements for safety of their functions. organisational structure of Regional security coordinators

  a system operation region shall set up the

  Their organisational structure regional coordination centres. to [ ] manage their

  organisational structure of Regional

  shall specify: Their organisational structure shall organisation according to a

  Coordination Centres that supports the

specify: structure that supports the safety

safety of their tasks. Their organisational

of their tasks [ ]. structure shall specify:

Their organisational structure shall specify:

ANNEX I TREE.2.B EN

• 615. 

  (a) the authority, duties and AM 157 (a) the authority, duties and Provisionally agreed: responsibilities of the (a) the authority, duties and responsibilities of the (a) the authority, duties and management personnel; responsibilities of the [ ] management personnel; responsibilities of the [ ] personnel; personnel;

• 616. 

  (b) the relationship and (b) the relationship and No change: reporting lines between reporting lines between different (b) the relationship and reporting lines different parts and processes of parts and processes of the between different parts and processes of the the organisation. organisation. organisation.

• 617. 

  2. Regional operational AM 158 2. [ ] Regional Security Provisionally agreed: centres may set up regional 2. Regional coordination Coordinators may set up

  desks to address local centres may set up regional desks regional desks to address [ ] 2. Regional Coordination Centres may specificities or back-up to address local specificities or sub-regional specificities or set up regional desks to address [ ] suboperational centres for the back-up coordination centres for back-up regional security regional specificities or back-up regional efficient and reliable exercise of the efficient and reliable exercise coordinators for the efficient and security coordinators for the efficient and their functions. of their functions where proven to reliable exercise of their [ ] reliable exercise of their [ ] tasks where be strictly necessary. tasks. proven to be strictly necessary.

ANNEX I TREE.2.B EN

• 618. 

  Article 42 Equipment and staff

• 619. 

  Regional operational centres AM 159 [ ] Regional Security Provisionally agreed: shall be equipped with all the Regional coordination centres Coordinators shall be equipped Regional Coordination Centres shall be human, technical, physical and shall be equipped with all the with all the human, technical, equipped with all the human, technical, financial resources necessary human, technical, physical and physical and financial resources physical and financial resources necessary for fulfilling their obligations financial resources necessary for necessary for fulfilling their for fulfilling their obligations under this under this Regulation and fulfilling their obligations under obligations under this Regulation and carrying out their [ ] tasks carrying out their functions. this Regulation and carrying out Regulation and carrying out independently and impartially. their functions independently and their [ ] tasks.

  impartially. The human, technical, Provisionally agreed to add in recitals: physical and financial resources for regional coordination centres The human, technical, physical and shall not go beyond what is strictly financial resources for regional necessary for the fulfilment of its coordination centres should not go beyond tasks while geographically what is strictly necessary for the fulfilment balanced representation and of its tasks. equitable treatment of members of regional coordination centre shall be ensured.

• 620. 

  Article 43 Monitoring and reporting

• 621. 

  1. Regional operational AM 160 1. [ ] Regional Security Provisionally agreed: centres shall establish a process 1. Regional coordination Coordinators shall establish a 1. Regional Coordination Centres shall for the continuous monitoring centres shall establish a process for process for the continuous establish a process for the continuous of at least: the continuous monitoring of at monitoring of at least: monitoring of at least: least:

• 622. 

  (a) their operational (a) their operational (a) their operational No change: performance; performance; performance; (a) their operational performance;

ANNEX I TREE.2.B EN

• 623. 

  (b) the decisions and (b) the decisions and (b) the [ ] coordinated Provisionally agreed: recommendations issued and recommendations issued in actions and recommendations (b) the [ ] coordinated actions and the outcome achieved; particular on those where the issued the degree of recommendations issued the degree of transmission system operators implementation of the implementation of the coordinated actions have deviated and the outcome coordinated actions and and recommendations by the transmission achieved; recommendations by the system operators and the outcome achieved; transmission system operators

  and the outcome achieved; 624. (c) the effectiveness and (c) the effectiveness and Provisionally agreed:

  efficiency of each of the efficiency of each of the [ ] (c) the effectiveness and efficiency of functions for which they are tasks for which they are each of the [ ] tasks for which they are responsible. responsible. responsible and, where applicable, the rotation of the tasks.

• 625. 

  2. Regional operational AM 161 2. [ ] Regional Security Provisionally agreed to delete centres shall submit to the deleted Coordinators shall submit to

  Agency and to the regulatory the Agency [ ] to the regulatory authorities of the system authorities and to the operation region the data transmission system operators resulting from their continuous of the system operation region monitoring at least annually. the data resulting from their continuous monitoring at least annually.

• 626. 

  3. Regional operational AM 162 3. [ ] Regional Security Provisionally agreed: centres shall establish their 3. Regional coordination Coordinators shall establish 3. Regional Coordination Centres shall costs in a transparent manner centres shall establish their costs in their costs in a transparent establish their costs in a transparent manner and report them to the Agency a transparent manner and report manner and report them to the and report them to the Agency and to the and to the regulatory authorities them to the Agency and to the Agency and to the regulatory regulatory authorities of the system operation of the system operation region. regulatory authorities of the system authorities of the system region.

  operation region. operation region.

ANNEX I TREE.2.B EN

• 627. 

  4. Regional operational AM 163 4. [ ] Regional Security Provisionally agreed: centres shall submit an annual 4. Regional coordination Coordinators shall submit an report concerning their centres shall submit an annual annual report concerning their 4. Regional Coordination Centres shall performance to ENTSO for report containing relevant performance to ENTSO for submit an annual report containing relevant Electricity, the Agency, the monitoring data pursuant to Electricity, the Agency, the monitoring data pursuant to paragraph 1 of regulatory authorities of the paragraph 1 of this Article and regulatory authorities of the this Article and information on their system operation region and the information on their performance system operation region and the performance to ENTSO for Electricity, the Electricity Coordination Group to ENTSO for Electricity, the Electricity Coordination Group Agency, the regulatory authorities of the established pursuant to Article Agency, the regulatory authorities established pursuant to Article 1 system operation region and the Electricity 1 of Commission Decision of the system operation region and of Commission Decision 2012/C Coordination Group established pursuant to

  2012/C 353/02

  30 . the Electricity Coordination Group 353/02

  31 . Article 1 of Commission Decision 2012/C established pursuant to Article 1 of 353/02.

  Commission Decision 2012/C 353/02.

• 628. 

  5. Regional operational AM 164 5. [ ] Regional Security Provisionally agreed: centres shall report 5. Regional coordination Coordinators shall report

  shortcomings identified in the centres shall report shortcomings shortcomings identified in the 5. Regional Coordination Centres shall

  monitoring process under identified in the monitoring process monitoring process under report shortcomings identified in the

  paragraph 1 to ENTSO for under paragraph 1 to ENTSO for paragraph 1 to ENTSO for monitoring process under paragraph 1 to

  electricity, the regulatory electricity, the regulatory electricity, the regulatory ENTSO for electricity, the regulatory

  authorities of the system authorities of the system operation authorities of the region the authorities of the system operation region

  operation region, the Agency region, the Agency and the Agency and the competent the Agency and the competent authorities of

  and the competent authorities of competent authorities of Member authorities of Member States Member States responsible for the

  Member States responsible for States responsible for the responsible for the prevention prevention and management of crisis

  the prevention and management prevention and management of and management of crisis situations. Following this report, the

  of crisis situations. crisis situations. situations. Following this relevant regulatory authorities of the

  report, the regulatory system operation region may propose to

  authorities of the region may the Regional Coordination Centres

  propose to the Regional measures to address the shortcomings.

  Security Coordinators

  measures to address the

  shortcomings.

30 Commission Decision of 15 November 2012 setting up the Electricity Coordination Group (OJ C 353, 17.11.2012, p.2).

31 Commission Decision of 15 November 2012 setting up the Electricity Coordination Group (OJ C 353, 17.11.2012, p.2).

ANNEX I TREE.2.B EN

• 629. 

  AM 165 Provisionally agreed:

  Article 43 – paragraph 5 a (new) 5 a. Without prejudice to the 5 a. Without prejudice to the principle of principle of confidentiality and the confidentiality and the need to preserve need to preserve security and security and commercially sensitive commercially sensitive information Regional Coordination Centres information regional coordination shall make public the reports referred to in centres shall make public the paragraphs 4 and 5. reports referred to in paragraphs 4 and 5.

• 630. 

  Article 44 Liability

• 631. 

  Regional operational centres AM 166 [ ] In the proposal for the Provisionally agreed: shall take the necessary steps to The proposal for the establishment establishment of regional [ ] In the proposal for the establishment cover liability related to the of regional coordination centres in security coordinators in of Regional Coordination Centres in execution of their tasks, in accordance with Article 32, shall accordance with Article 32, the accordance with Article 32, the particular, where they adopt include arrangements to cover transmission system operators transmission system operators of the decisions binding on liability related to the execution of of the system operation region system operation region shall take the transmission system operators. the tasks of the regional shall take the necessary steps to necessary steps to cover liability related to The method employed to coordination centre. The method cover liability related to the the execution of their tasks. [ ] The method provide the cover shall take into employed to provide the cover execution of their tasks. [ ] The employed to provide the cover shall take into account the legal status of the shall take into account the legal method employed to provide the account the legal status of the Regional regional operational centre and status of the regional coordination cover shall take into account the Coordination Centres and the level of the level of commercial centre and the level of commercial legal status of the [ ] Regional commercial insurance cover available. insurance cover available. insurance cover available. Security Coordinators and the

  level of commercial insurance cover available.

ANNEX I TREE.2.B EN

• 632. 

  Article 45 Ten-year network development plan

• 633. 

  1. The Union-wide 1. The Union-wide network No change: network development plan development plan referred to 1. The Union-wide network development referred to under Article under Article 27(1)(b) shall plan referred to under Article 27(1)(b) shall 27(1)(b) shall include the include the modelling of the include the modelling of the integrated modelling of the integrated integrated network, scenario network, scenario development and an network, scenario development development and an assessment assessment of the resilience of the system. and an assessment of the of the resilience of the system. The Union-wide network development plan resilience of the system. The Union-wide network shall, in particular: The Union-wide network development plan shall, in

  development plan shall, in particular: particular:

• 634. 

  (a) build on national (a) build on national No change: investment plans, taking into investment plans, taking into (a) build on national investment plans, account regional investment account regional investment taking into account regional investment plans plans as referred to in Article plans as referred to in Article as referred to in Article 12(1), and, if 12(1), and, if appropriate, 12(1), and, if appropriate, Union appropriate, Union aspects of network Union aspects of network aspects of network planning as planning as set out in Regulation (EU) No planning as set out in set out in Regulation (EU) No 347/2013 i of the European Parliament and of Regulation (EU) No 347/2013 i 347/2013 of the European the Council ; it shall be subject to a costof the European Parliament and Parliament and of the Council ; benefit analysis using the methodology

  32

  of the Council ; it shall be it shall be subject to a costestablished as set out in Article 11 of that subject to a cost-benefit benefit analysis using the Regulation; analysis using the methodology methodology established as set established as set out in Article out in Article 11 of that 11 of that Regulation; Regulation;

32 Regulation (EU) No 347/2013 i of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure (OJ L 115, 25.4.2013, p. 39).

ANNEX I TREE.2.B EN

• 635. 

  (b) regarding cross-border (b) regarding cross-border No change: interconnections, also build on interconnections, also build on (b) regarding cross-border the reasonable needs of the reasonable needs of different interconnections, also build on the different system users and system users and integrate longreasonable needs of different system users integrate long-term term commitments from and integrate long-term commitments from commitments from investors investors referred to in Articles investors referred to in Articles 44 and 51 of referred to in Articles 44 and 51 44 and 51 of [recast of Directive [recast of Directive 2009/72/EC i as proposed of [recast of Directive 2009/72/EC i as proposed by by COM(2016) 864 i/2]; and 2009/72/EC as proposed by COM(2016) 864 i/2]; and

  COM(2016) 864 i/2]; and 636. (c) identify investment gaps, (c) identify investment gaps, No change:

  notably with respect to crossnotably with respect to cross(c) identify investment gaps, notably with border capacities. border capacities. respect to cross-border capacities.

• 637. 

  In regard to point (c) , a review In regard to point (c) , a review No change: of barriers to the increase of of barriers to the increase of In regard to point (c) , a review of barriers to cross-border capacity of the cross-border capacity of the the increase of cross-border capacity of the network arising from different network arising from different network arising from different approval approval procedures or approval procedures or practices procedures or practices may be annexed to practices may be annexed to the may be annexed to the Unionthe Union-wide network development plan Union-wide network wide network development plan.

  development plan. 638. 2. The Agency shall provide 2. The Agency shall provide No change:

  an opinion on the national tenan opinion on the national ten 2. The Agency shall provide an opinion year network development year network development plans on the national ten-year network plans to assess their consistency to assess their consistency with development plans to assess their with the Union-wide network the Union-wide network consistency with the Union-wide network development plan. If the development plan. If the Agency development plan. If the Agency identifies Agency identifies identifies inconsistencies inconsistencies between a national ten-year inconsistencies between a between a national ten-year network development plan and the Unionnational ten-year network network development plan and wide network development plan, it shall development plan and the the Union-wide network recommend amending the national ten-year Union-wide network development plan, it shall network development plan or the Uniondevelopment plan, it shall recommend amending the wide network development plan as recommend amending the national ten-year network appropriate. If such national ten-year national ten-year network development plan or the Unionnetwork development plan is elaborated in

ANNEX I TREE.2.B EN

development plan or the Unionwide network development plan accordance with Article 51 of [recast of wide network development plan as appropriate. If such national Directive 2009/72/EC i as proposed by as appropriate. If such national ten-year network development COM(2016) 864 i/2], the Agency shall ten-year network development plan is elaborated in accordance recommend that the competent national plan is elaborated in accordance with Article 51 of [recast of regulatory authority amend the national tenwith Article 51 of [recast of Directive 2009/72/EC i as year network development plan in Directive 2009/72/EC i as proposed by COM(2016) 864 i/2], accordance with Article 51(7) of that proposed by COM(2016) the Agency shall recommend Directive and inform the Commission 864/2], the Agency shall that the competent national thereof. recommend that the competent regulatory authority amend the national regulatory authority national ten-year network amend the national ten-year development plan in accordance network development plan in with Article 51(7) of that accordance with Article 51(7) Directive and inform the of that Directive and inform the Commission thereof. Commission thereof.

ANNEX I TREE.2.B EN

• 639. 

  Article 46 Inter-transmission system operator compensation mechanism

• 640. 

  1. Transmission system 1. Transmission system No change: operators shall receive operators shall receive 1. Transmission system operators shall compensation for costs incurred compensation for costs incurred receive compensation for costs incurred as a as a result of hosting crossas a result of hosting crossresult of hosting cross-border flows of border flows of electricity on border flows of electricity on electricity on their networks. their networks. their networks.

• 641. 

  2. The compensation 2. The compensation No change: referred to in paragraph 1 shall referred to in paragraph 1 shall 2. The compensation referred to in be paid by the operators of be paid by the operators of paragraph 1 shall be paid by the operators of national transmission systems national transmission systems national transmission systems from which from which cross-border flows from which cross-border flows cross-border flows originate and the systems originate and the systems where originate and the systems where where those flows end. those flows end. those flows end.

• 642. 

  3. Compensation payments 3. Compensation payments No change: shall be made on a regular basis shall be made on a regular basis 3. Compensation payments shall be made with regard to a given period of with regard to a given period of on a regular basis with regard to a given time in the past. Ex-post time in the past. Ex-post period of time in the past. Ex-post adjustments of compensation adjustments of compensation adjustments of compensation paid shall be paid shall be made where paid shall be made where made where necessary, to reflect costs necessary, to reflect costs necessary, to reflect costs actually incurred. actually incurred. actually incurred.

• 643. 

  The first period of time for The first period of time for No change: which compensation payments which compensation payments The first period of time for which shall be made shall be shall be made shall be compensation payments shall be made shall determined in the guidelines determined in the guidelines be determined in the guidelines referred to in referred to in Article 57. referred to in Article 57. Article 57.

• 644. 

  4. The Commission shall 4. The Commission shall No change: adopt delegated acts in adopt delegated acts in 4. The Commission shall adopt accordance with Article 63 accordance with Article 63 delegated acts in accordance with Article 63 concerning the amounts of concerning the amounts of concerning the amounts of compensation compensation payments compensation payments payable. payments payable. payable.

ANNEX I TREE.2.B EN

• 645. 

  5. The magnitude of cross 5. The magnitude of cross No change: border flows hosted and the border flows hosted and the 5. The magnitude of cross-border flows magnitude of cross-border magnitude of cross-border flows hosted and the magnitude of cross-border flows designated as originating designated as originating and/or flows designated as originating and/or and/or ending in national ending in national transmission ending in national transmission systems shall transmission systems shall be systems shall be determined on be determined on the basis of the physical determined on the basis of the the basis of the physical flows of flows of electricity actually measured during physical flows of electricity electricity actually measured a given period of time. actually measured during a during a given period of time.

  given period of time. 646. 6. The costs incurred as a 6. The costs incurred as a No change:

  result of hosting cross-border result of hosting cross-border 6. The costs incurred as a result of flows shall be established on flows shall be established on the hosting cross-border flows shall be the basis of the forward-looking basis of the forward-looking established on the basis of the forwardlong-run average incremental long-run average incremental looking long-run average incremental costs, costs, taking into account costs, taking into account losses, taking into account losses, investment in new losses, investment in new investment in new infrastructure, infrastructure, and an appropriate proportion infrastructure, and an and an appropriate proportion of of the cost of existing infrastructure, in so far appropriate proportion of the the cost of existing as such infrastructure is used for the cost of existing infrastructure, infrastructure, in so far as such transmission of cross-border flows, in in so far as such infrastructure infrastructure is used for the particular taking into account the need to is used for the transmission of transmission of cross-border guarantee security of supply. When cross-border flows, in particular flows, in particular taking into establishing the costs incurred, recognised taking into account the need to account the need to guarantee standard-costing methodologies shall be guarantee security of supply. security of supply. When used. Benefits that a network incurs as a When establishing the costs establishing the costs incurred, result of hosting cross-border flows shall be incurred, recognised standardrecognised standard-costing taken into account to reduce the costing methodologies shall be methodologies shall be used. compensation received. used. Benefits that a network Benefits that a network incurs as incurs as a result of hosting a result of hosting cross-border cross-border flows shall be flows shall be taken into account taken into account to reduce the to reduce the compensation compensation received. received.

ANNEX I TREE.2.B EN

• 647. 

  7. For the purpose of the 7. For the purpose of the No change: inter-transmission system inter-transmission system 7. For the purpose of the interoperator compensation operator compensation transmission system operator compensation mechanism only, where mechanism only, where mechanism only, where transmission transmission networks of two or transmission networks of two or networks of two or more Member States more Member States form part, more Member States form part, form part, in whole or in part, of a single in whole or in part, of a single in whole or in part, of a single control block, the control block as a whole control block, the control block control block, the control block shall be considered as forming part of the as a whole shall be considered as a whole shall be considered as transmission network of one of the Member as forming part of the forming part of the transmission States concerned, in order to avoid flows transmission network of one of network of one of the Member within control blocks being considered as the Member States concerned, States concerned, in order to cross-border flows under Article 2(2)(b) and in order to avoid flows within avoid flows within control giving rise to compensation payments under control blocks being considered blocks being considered as paragraph 1 of this Article. The regulatory as cross-border flows under cross-border flows under Article authorities of the Member States concerned Article 2(2)(b) and giving rise 2(2)(b) and giving rise to may decide which of the Member States to compensation payments compensation payments under concerned shall be that of which the control under paragraph 1 of this paragraph 1 of this Article. The block as a whole is to be considered to form Article . The regulatory regulatory authorities of the part.

  authorities of the Member Member States concerned may States concerned may decide decide which of the Member which of the Member States States concerned shall be that of concerned shall be that of which the control block as a which the control block as a whole is to be considered to whole is to be considered to form part. form part.

ANNEX I TREE.2.B EN

• 648. 

  Article 47 Provision of information

• 649. 

  1. Transmission system 1. Transmission system No change: operators shall put in place operators shall put in place 1. Transmission system operators shall coordination and information coordination and information put in place coordination and information exchange mechanisms to ensure exchange mechanisms to ensure exchange mechanisms to ensure the security the security of the networks in the security of the networks in of the networks in the context of congestion the context of congestion the context of congestion management. management. management.

• 650. 

  2. The safety, operational 2. The safety, operational No change: and planning standards used by and planning standards used by 2. The safety, operational and planning transmission system operators transmission system operators standards used by transmission system shall be made public. The shall be made public. The operators shall be made public. The information published shall information published shall information published shall include a general include a general scheme for include a general scheme for the scheme for the calculation of the total the calculation of the total calculation of the total transfer transfer capacity and the transmission transfer capacity and the capacity and the transmission reliability margin based upon the electrical transmission reliability margin reliability margin based upon the and physical features of the network. Such based upon the electrical and electrical and physical features schemes shall be subject to the approval of physical features of the of the network. Such schemes the regulatory authorities. network. Such schemes shall be shall be subject to the approval

  subject to the approval of the of the regulatory authorities. regulatory authorities.

ANNEX I TREE.2.B EN

• 651. 

  3. Transmission system 3. Transmission system No change: operators shall publish operators shall publish estimates 3. Transmission system operators shall estimates of available transfer of available transfer capacity for publish estimates of available transfer capacity for each day, each day, indicating any capacity for each day, indicating any indicating any available transfer available transfer capacity available transfer capacity already reserved. capacity already reserved. already reserved. Those Those publications shall be made at specified Those publications shall be publications shall be made at intervals before the day of transport and shall made at specified intervals specified intervals before the include, in any event, week-ahead and before the day of transport and day of transport and shall month-ahead estimates, as well as a shall include, in any event, include, in any event, weekquantitative indication of the expected week-ahead and month-ahead ahead and month-ahead reliability of the available capacity. estimates, as well as a estimates, as well as a

  quantitative indication of the quantitative indication of the expected reliability of the expected reliability of the available capacity. available capacity.

• 652. 

  4. Transmission system AM 167 4. Transmission system Council compromise proposal: operators shall publish relevant 4. Transmission system operators shall publish relevant

  data on aggregated forecast and operators shall publish relevant data on aggregated forecast and 4. Transmission system operators shall actual demand, on availability data on aggregated forecast and actual demand, on availability publish relevant data on aggregated forecast and actual use of generation and actual demand, on availability and and actual use of generation and and actual demand, on availability and actual load assets, on availability and actual use of generation and load load assets, on availability and use of generation and load assets, on use of the networks and assets, on availability and use of use of the networks and availability and use of the networks and interconnections, and on the networks and interconnections, interconnections, and on interconnections, on balancing power and balancing power and reserve on balancing power and reserve balancing power and reserve reserve capacity and on the availability of capacity. For availability and capacity and on the availability of capacity. For availability and flexibility. For availability and actual use of actual use of small generation flexibility. For availability and actual use of small generation small generation and load units, aggregated and load units, aggregated actual use of small generation and and load units, aggregated estimate data may be used. estimate data may be used. load units, aggregated estimate data estimate data may be used. may be used.

• 653. 

  5. The market participants 5. The market participants No change: concerned shall provide the concerned shall provide the 5. The market participants concerned transmission system operators transmission system operators shall provide the transmission system with the relevant data. with the relevant data. operators with the relevant data.

ANNEX I TREE.2.B EN

• 654. 

  6. Generation undertakings 6. Generation undertakings No change: which own or operate which own or operate generation 6. Generation undertakings which own or generation assets, where at least assets, where at least one operate generation assets, where at least one one generation asset has an generation asset has an installed generation asset has an installed capacity of installed capacity of at least 250 capacity of at least 250 MW, or at least 250 MW, or which have a portfolio MW, or which have a portfolio which have a portfolio comprising at least 400 MW of generation comprising at least 400 MW of comprising at least 400 MW of assets, shall keep at the disposal of the generation assets, shall keep at generation assets, shall keep at national regulatory authority, the national the disposal of the national the disposal of the national competition authority and the Commission, regulatory authority, the regulatory authority, the national for five years all hourly data per plant that is national competition authority competition authority and the necessary to verify all operational and the Commission, for five Commission, for five years all dispatching decisions and the bidding years all hourly data per plant hourly data per plant that is behaviour at power exchanges, that is necessary to verify all necessary to verify all interconnection auctions, reserve markets operational dispatching operational dispatching and over-the-counter-markets. The per-plant decisions and the bidding decisions and the bidding and per hour information to be stored shall behaviour at power exchanges, behaviour at power exchanges, include, but shall not be limited to, data on interconnection auctions, interconnection auctions, reserve available generation capacity and committed reserve markets and over-themarkets and over-the-counterreserves, including allocation of those counter-markets. The per-plant markets. The per-plant and per committed reserves on a per-plant level, at and per hour information to be hour information to be stored the times the bidding is carried out and when stored shall include, but shall shall include, but shall not be production takes place. not be limited to, data on limited to, data on available

  available generation capacity generation capacity and and committed reserves, committed reserves, including including allocation of those allocation of those committed committed reserves on a perreserves on a per-plant level, at plant level, at the times the the times the bidding is carried bidding is carried out and when out and when production takes production takes place. place.

ANNEX I TREE.2.B EN

• 655. 

  7. Transmission system 7. Transmission system Council compromise proposal (GA): operators shall exchange operators shall exchange

  regularly a set of sufficiently regularly a set of sufficiently 7. Transmission system operators shall accurate network and load flow accurate network and load flow exchange regularly a set of sufficiently data in order to enable load data in order to enable load flow accurate network and load flow data in order flow calculations for each calculations for each to enable load flow calculations for each transmission system operator in transmission system operator in transmission system operator in their their relevant area. The same their relevant area. The same set relevant area. The same set of data shall be set of data shall be made of data shall be made available made available to the regulatory authorities

  available to the regulatory to the regulatory authorities and

  authorities and to the to the Commission and and to the Commission and Member States Commission upon request. The Member States upon request. upon request. The regulatory authorities, regulatory authorities and the The regulatory authorities, Member States and the Commission shall Commission shall treat that set Member States and the treat that set of data confidentially, and shall of data confidentially, and shall Commission shall treat that set ensure that confidential treatment is also ensure that confidential of data confidentially, and shall given by any consultant carrying out treatment is also given by any ensure that confidential analytical work on their request, on the basis consultant carrying out treatment is also given by any of those data.

  analytical work on their request, consultant carrying out on the basis of those data. analytical work on their request, on the basis of those data.

• 656. 

  Article 48 Certification of transmission system operators

• 657. 

  1. The Commission shall 1. The Commission shall No change: examine any notification of a examine any notification of a 1. The Commission shall examine any decision on the certification of a decision on the certification of a notification of a decision on the certification transmission system operator as transmission system operator as of a transmission system operator as laid laid down in Article 52(6) of laid down in Article 52(6) of down in Article 52(6) of [recast of Directive [recast of Directive 2009/72/EC i [recast of Directive 2009/72/EC i 2009/72/EC as proposed by COM(2016) as proposed by COM(2016) as proposed by COM(2016) 864 i/2] as soon as it is received. Within two 864/2] as soon as it is received. 864/2] as soon as it is received. months of the day of receipt of such Within two months of the day Within two months of the day of of receipt of such notification, receipt of such notification, the

notification, the Commission shall deliver its

the Commission shall deliver its Commission shall deliver its

opinion to the relevant national regulatory

opinion to the relevant national opinion to the relevant national

authority as to its compatibility with Article

regulatory authority as to its regulatory authority as to its

52(2) or Article 53 and Article 43 of [recast of Directive 2009/72/EC i as proposed by

ANNEX I TREE.2.B EN

compatibility with Article 52(2) compatibility with Article 52(2) COM(2016) 864 i/2]. or Article 53 and Article 43 of or Article 53 and Article 43 of [recast of Directive 2009/72/EC i [recast of Directive 2009/72/EC i as proposed by COM(2016) as proposed by COM(2016) 864 i/2]. 864/2].

• 658. 

  When preparing the opinion When preparing the opinion No change: referred to in the first referred to in the first When preparing the opinion referred to in the subparagraph, the Commission subparagraph, the Commission first subparagraph, the Commission may may request the Agency to may request the Agency to request the Agency to provide its opinion on provide its opinion on the provide its opinion on the the national regulatory authority’s decision. national regulatory authority’s national regulatory authority’s In such a case, the two-month period referred decision. In such a case, the decision. In such a case, the twoto in the first subparagraph shall be extended two-month period referred to in month period referred to in the by two further months. the first subparagraph shall be first subparagraph shall be

  extended by two further extended by two further months. months.

• 659. 

  In the absence of an opinion by In the absence of an opinion by No change: the Commission within the the Commission within the In the absence of an opinion by the periods referred to in the first periods referred to in the first Commission within the periods referred to in and second subparagraphs, the and second subparagraphs, the the first and second subparagraphs, the Commission shall be deemed Commission shall be deemed Commission shall be deemed not to raise not to raise objections to the not to raise objections to the objections to the regulatory authority’s regulatory authority’s decision. regulatory authority’s decision. decision.

• 660. 

  2. Within two months of 2. Within two months of No change: receiving an opinion of the receiving an opinion of the 2. Within two months of receiving an Commission, the national Commission, the national opinion of the Commission, the national regulatory authority shall adopt regulatory authority shall adopt regulatory authority shall adopt its final its final decision regarding the its final decision regarding the decision regarding the certification of the certification of the transmission certification of the transmission transmission system operator, taking the system operator, taking the system operator, taking the utmost account of that opinion. The utmost account of that opinion. utmost account of that opinion. regulatory authority's decision and the The regulatory authority's The regulatory authority's Commission's opinion shall be published decision and the Commission's decision and the Commission's together.

  opinion shall be published opinion shall be published together. together.

ANNEX I TREE.2.B EN

• 661. 

  3. At any time during the 3. At any time during the No change: procedure, regulatory procedure, regulatory authorities 3. At any time during the procedure, authorities and/or the and/or the Commission may regulatory authorities and/or the Commission Commission may request from request from a transmission may request from a transmission system a transmission system operator system operator and/or an operator and/or an undertaking performing and/or an undertaking undertaking performing any of any of the functions of generation or supply performing any of the functions the functions of generation or any information relevant to the fulfilment of of generation or supply any supply any information relevant their tasks under this Article. information relevant to the to the fulfilment of their tasks

  fulfilment of their tasks under under this Article. this Article.

• 662. 

  4. Regulatory authorities 4. Regulatory authorities and No change: and the Commission shall the Commission shall preserve 4. Regulatory authorities and the

  preserve the confidentiality of the confidentiality of

  commercially sensitive commercially sensitive Commission shall preserve the

  information. information. confidentiality of commercially sensitive information.

• 663. 

  5. Where the Commission 5. Where the Commission No change:

  has received notification of the has received notification of the 5. Where the Commission has received

  certification of a transmission certification of a transmission

system operator under Article system operator under Article notification of the certification of a

43(9) of [recast of Directive 43(9) of [recast of Directive transmission system operator under Article 2009/72/EC as proposed by 2009/72/EC as proposed by 43(9) of [recast of Directive 2009/72/EC i as

COM(2016) 864 i/2] , the COM(2016) 864 i/2], the proposed by COM(2016) 864 i/2], the Commission shall take a Commission shall take a Commission shall take a decision relating to

decision relating to decision relating to certification. certification. The regulatory authority shall certification. The regulatory The regulatory authority shall comply with the Commission decision.

authority shall comply with the comply with the Commission Commission decision. decision.

ANNEX I TREE.2.B EN

• 664. 

  Chapter VI Distribution system operation

• 665. 

  Article 49 Article 49 European entity for distribution [ ] Cooperation of distribution system operators system operators

• 666. 

  Distribution system operators AM 168 1. Distribution system Council compromise proposal (GA):

  which are not part of a Distribution system operators shall operators [ ] shall cooperate

  vertically integrated

  undertaking or which are cooperate at Union level through a at Union level [ ] to promote the 1. Distribution system operators [ ]

  unbundled according to the European Entity for Distribution completion and functioning of shall cooperate at Union level [ ] to promote provisions of Article 35 [recast system operators ("EU DSO the internal market in electricity, the completion and functioning of the

  of Directive 2009/72/EC i as entity"), in order to promote the and to promote optimal internal market in electricity, and to promote proposed by COM(2016) completion and functioning of the management and a coordinated optimal management and a coordinated

  864/2], shall cooperate at Union internal market in electricity, and to operation of distribution and operation of distribution and transmission level through a European Entity promote optimal management and transmission systems. [ ] systems. [ ]

  for Distribution system a coordinated operation of operators ("EU DSO entity"), in distribution and transmission

  order to promote the systems. Distribution system completion and functioning of operators who wish to participate

  the internal market in in the EU DSO entity shall have

  electricity, and to promote

  optimal management and a the right to become registered coordinated operation of members of the entity.

  distribution and transmission systems. Distribution system operators who wish to participate in the EU DSO entity shall become registered members of the entity.

ANNEX I TREE.2.B EN

• 667. 

  Registered members may Council compromise proposal: deletion participate in the EU DSO entity [ ]

  directly or be represented by the national association designated by the Member State or by an Union level association.

• 668. 

  In performing its functions under Council compromise proposal: deletion

  Union law, the EU DSO entity [ ] shall act independently from individual national interests or the national interests of distribution system operators.

• 669. 

  1a. Distribution system Council compromise proposal: operators are entitled to

  associate themselves through 1a. Distribution system operators the establishment of a are entitled to associate themselves European Entity for through the establishment of a Distribution system operators European Entity for Distribution the EU DSO entity and to join system operators the EU DSO entity it. The EU DSO entity shall be and to join it. The EU DSO entity shall established at the latest by 31 be established at the latest by 31 December 2022 and shall fulfil December 2022 and shall fulfil the the tasks and procedures tasks and procedures foreseen by this foreseen by this Regulation in Regulation in accordance with Article accordance with Article [51]. [51]. As an expert entity working for As an expert entity working the common European interest, it shall for the common European not represent particular interest nor interest, it shall not represent seek to influence the decision making particular interest nor seek to process to defend certain interests. influence the decision making process to defend certain interests.

ANNEX I TREE.2.B EN

• 670. 

  1b. Members of the EU DSO Council compromise proposal: entity shall be subject to 1b. Members of the EU DSO entity registration and payment of a shall be subject to registration and fair and proportionate payment of a fair and proportionate membership fee. membership fee according to the number

  of connected customers. 671. Article 50 Article 50

  Establishment of the EU DSO Establishment of the EU DSO Maintain GA on entire Article 50 entity for electricity entity[ ]

• 672. 

  0. EU DSO entity shall consist of, at least, a General Assembly, Board of Directors, Strategic Advisor Group, Expert Groups and a

  Secretary General. 673. 1. By [OP: twelve months AM 169 1. [ ] Within [OP: twelve

  after entry into force], the 1. By [OP: twelve months after months after entry into force], distribution system operators, entry into force], the distribution the distribution system operators with the administrative support system operators, with the [ ] shall submit to the of the Agency, shall submit to administrative support of the Commission and to the Agency the Commission and to the Agency, shall submit to the the draft statutes in accordance Agency the draft statutes, a list Commission and to the Agency the with [Article 50a] including a of registered members, the draft draft statutes, a list of participating code of conduct, a list of rules of procedure, including distribution system operators and registered members, the draft the rules of procedures on the entities designated to represent rules of procedure, including the consultation with ENTSO for distribution system operators, the rules of procedures on the Electricity and other draft rules of procedure, including consultation with ENTSO for stakeholders and the financing the rules of procedures on the Electricity and other rules, of the EU DSO entity to consultation with ENTSO for stakeholders and the financing be established. Electricity and other stakeholders, rules, of the EU DSO entity to the decision-making procedure be established. and the financing rules, of the EU DSO entity to be established.

ANNEX I TREE.2.B EN

• 674. 

  The draft rules of procedure of the

  EU DSO entity shall ensure balanced representation of all participating DSOs regardless of their size, including in the decision-making procedure.

• 675. 

  2. Within two months of AM 170 2. Within two months of receipt, the Agency, after 2. Within two months of receipt, the Agency, after

  formally consulting the receipt, the Agency, after formally formally consulting the organisations representing all consulting the organisations organisations representing all stakeholders, in particular representing all stakeholders, in stakeholders, in particular distribution system users, shall particular distribution system users distribution system users, shall provide an opinion to the and consumer protection provide an opinion to the Commission on the draft organisations, shall provide an Commission on the draft statutes, the list of members and opinion to the Commission on the statutes, the list of members and the draft rules of procedure. draft statutes, the list of members the draft rules of procedure. and the draft rules of procedure, taking into account in particular the rules related to the independence of the EU DSO, to the prevention of conflicts of interests, and to the necessity to ensure geographically balanced representation and equitable treatment of its Members.

ANNEX I TREE.2.B EN

• 676. 

  3. The Commission shall AM 171 3. The Commission shall deliver an opinion on the draft 3. The Commission shall deliver an opinion on the draft statutes, the list of members and deliver an opinion on the draft statutes, the list of members and the draft rules of procedure statutes, the list of members and the draft rules of procedure

  taking into account the opinion the draft rules of procedure, taking into account the opinion of the Agency provided for in including the rules of procedures of the Agency provided for in paragraph 2, within three on the consultation with ENTSO paragraph 2, within three months months of receipt of the opinion for Electricity and other of receipt of the opinion of the of the Agency. stakeholders, the decision-making Agency. procedure and the financing rules, taking into account the opinion of the Agency provided for in paragraph 2, within three months of receipt of the opinion of the Agency.

• 677. 

  4. Within three months of 4. Within three months of No change: the day of receipt of the the day of receipt of the 4. Within three months of the day of Commission’s positive opinion, Commission’s positive opinion, receipt of the Commission’s positive the distribution system the distribution system operators opinion, the distribution system operators operators shall establish the EU shall establish the EU DSO shall establish the EU DSO entity and adopt DSO entity and adopt and entity and adopt and publish its and publish its statutes and rules of publish its statutes and rules of statutes and rules of procedure. procedure. procedure.

• 678. 

  5. The documents referred 5. The documents referred to No change: to in paragraph 1 shall be in paragraph 1 shall be 5. The documents referred to in submitted to the Commission submitted to the Commission paragraph 1 shall be submitted to the and to the Agency in case of and to the Agency in case of Commission and to the Agency in case of changes thereof or upon their changes thereof or upon their changes thereof or upon their reasoned reasoned request. The Agency reasoned request. The Agency request. The Agency and the Commission and the Commission shall and the Commission shall shall deliver an opinion in line with the deliver an opinion in line with deliver an opinion in line with process set out in paragraph 2 to 4. the process set out in the process set out in paragraph

  paragraphs 2 to 4. 2 to 4.

ANNEX I TREE.2.B EN

• 679. 

  6. The costs related to the AM 172 6. The costs related to the activities of the EU DSO entity 6. The costs related to the activities of the EU DSO entity shall be borne by distribution activities of the EU DSO entity shall be borne by distribution system operators who are shall be borne by distribution system operators who are

  registered members and shall be system operators who are registered members and shall be taken into account in the registered members and shall be taken into account in the calculation of tariffs. considered as eligible cost and calculation of tariffs. Regulatory Regulatory authorities shall taken into account by the authorities shall approve those approve those costs only if they regulatory authority in the costs only if they are reasonable are reasonable and calculation of tariffs. Regulatory and proportionate. proportionate. authorities shall approve those costs only if they are reasonable and proportionate.

• 680. 

  AM 173 Article 50a

  Article 50 a (new) Principal rules and procedures Article 50a for the EU DSO entity for Maintain GA on entire Article 50a Principal rules and procedures for electricity the EU DSO entity for electricity

• 681. 

  1. The statutes of the EU DSO 1. The statutes of the EU entity adopted in accordance with DSO entity adopted in

  Article 50 shall safeguard the accordance with Article 50 following principles: shall safeguard the following principles:

• 682. 

  (a) participation in the works of (a) participation in the the EU DSO entity is limited to works of the EU DSO entity is registered members with the limited to registered members possibility of delegation within the with the possibility of

  membership; delegation within the membership;

• 683. 

  (b) strategic decisions (b) strategic decisions regarding the activities of the EU regarding the activities of the DSO entity as well as policy EU DSO entity as well as guidelines for the Board of policy guidelines for the Board Directors are adopted by the of Directors are adopted by General Assembly; the General Assembly;

ANNEX I TREE.2.B EN

• 684. 

  (c) decisions of the General (c) decisions of the General

  Assembly are adopted according Assembly are adopted with the following rules: according with the following - when 65% of the votes attributed rules: to the members of the General - when 65% of the votes Assembly are reached, attributed to the members of the General Assembly are - whereby each member disposes reached, of a number of votes proportional to the respective number of - whereby each member customers and disposes of a number of votes proportional to the respective number of customers and - the final outcome is supported by at least 55% of the members of the - the final outcome is General Assembly. supported by at least 55% of the members of the General Assembly.

• 685. 

  (d) decisions of the General (d) decisions of the General

  Assembly are blocked according Assembly are blocked with the following rules: according with the following -when 35% of the votes attributed rules: to the members of the General -when 35% of the votes Assembly are reached, attributed to the members of

  the General Assembly are

  • - 

    whereby each member disposes reached,

  of a number of votes proportional

  to the respective number of - whereby each member customers; and disposes of a number of votes

  proportional to the respective

  • - 

    the final outcome is supported by number of customers; and

  at least 25% of the members of the

  General Assembly - the final outcome is supported by at least 25% of

  the members of the General Assembly

ANNEX I TREE.2.B EN

• 686. 

  (e) the Board of Directors is (e) the Board of Directors is elected by the General Assembly elected by the General

  for a mandate of maximum 4 Assembly for a mandate of years; maximum 4 years;

• 687. 

  (f) the Board of Directors (f) the Board of Directors nominates the President and the nominates the President and three Vice-Presidents among its the three Vice-Presidents

  members; among its members; 688. (g) DSO-TSO cooperation (g) DSO-TSO cooperation

  pursuant to Articles 52 and 53 is pursuant to Articles 52 and 53 led by the Board of Directors; is led by the Board of Directors;

• 689. 

  (h) decisions of the Board of (h) decisions of the Board of

  Directors are adopted by simple Directors are adopted by majority of 15 votes; simple majority of 15 votes;

• 690. 

  (i) based on proposal by the (i) based on proposal by the

  Board of Directors, the Secretary Board of Directors, the General is appointed by the Secretary General is appointed General Assembly among its by the General Assembly members for a four years among its members for a four mandate, renewable once; years mandate, renewable once;

• 691. 

  (j) based on proposal by the (j) based on proposal by the

  Board of Directors, Expert Groups Board of Directors, Expert are appointed by the General Groups are appointed by the Assembly whereby each group General Assembly whereby shall not exceed 30 members with each group shall not exceed 30 the possibility of 1/3 coming from members with the possibility outside the membership. In of 1/3 coming from outside the addition, 'one country' expert membership. In addition, 'one group shall be established and country' expert group shall be consist of exactly one DSO established and consist of representative from each Member exactly one DSO State. representative from each Member State.

ANNEX I TREE.2.B EN

• 692. 

  2. Procedures adopted by the 2. Procedures adopted by

  EU DSO entity shall safeguard the the EU DSO entity shall fair and proportionate treatment safeguard the fair and of its members and reflect the proportionate treatment of its diverse geographical and members and reflect the economic structure of its diverse geographical and membership. In particular, the economic structure of its procedures shall foresee that: membership. In particular, the procedures shall foresee that:

• 693. 

  (a) the Board of Directors is (a) the Board of Directors is composed by the President of the composed by the President of Board and 27 members' the Board and 27 members'

  representatives, of which: representatives, of which: - [ ] 9 are representatives of - 9 are representatives of members with more than 1 million members with more than 1 grid users; million grid users; - 9 are representatives of - [ ] 9 are representatives of members with more than members with more than 100,000 100,000 and less than 1 million and less than 1 million grid users; grid users; and and - 9 are representatives of - [ ] 9 are representatives of members with less than members with less than 100,000 100,000 grid users; grid users;

• 694. 

  (b) representatives of existing (ab) (b) representatives of existing

  DSO associations may participate DSO associations may as observers to the meetings of the participate as observers to the Board of Directors; meetings of the Board of Directors;

• 695. 

  (c) the Board of Directors may (c) the Board of Directors not consist of more than 3 may not consist of more than 3 representatives of members based representatives of members in the same Member State or the based in the same Member

  same industrial group; State or the same industrial group;

ANNEX I TREE.2.B EN

• 696. 

  (d) each Vice-President of the (d) each Vice-President of

  Board has to be nominated among the Board has to be nominated representatives of members in among representatives of each category described in members in each category paragraph (a) above; described in paragraph (a) above;

• 697. 

  (e) representatives of members (e) representatives of based in one Member State or the members based in one

  same industrial group may not Member State or the same constitute the majority of the industrial group may not Expert Group participants; constitute the majority of the Expert Group participants;

• 698. 

  (f) the Board of Directors shall (f) the Board of Directors establish a Strategic Advisory shall establish a Strategic

  group that provides its opinion to Advisory group that provides the Board of Directors and the its opinion to the Board of Expert Groups and consists of Directors and the Expert representatives of the European Groups and consists of DSO associations and representatives of the representatives of those Member European DSO associations States which are not represented and representatives of those in the Board of Directors. Member States which are not represented in the Board of Directors.

ANNEX I TREE.2.B EN

• 699. 

  Article 51 Tasks of the EU DSO entity

• 700. 

  1. The tasks of the EU DSO AM 174 1. The tasks of the EU DSO Maintain GA on entire Article 51 entity shall be the following: 1. The tasks of the EU DSO entity shall be the following:

  entity shall be the following: 701. (a) coordinated operation (a) promote coordinated (a) (b in GA) [ ] promote

  and planning of transmission operation and planning of operation and planning of [ ] and distribution networks; transmission and distribution distribution networks in networks; cooperation with operation and planning of transmission networks;

• 702. 

  (b) integration of renewable (b) improve and maximise the (b) (c in GA) facilitation of energy resources, distributed integration of renewable energy the integration of renewable

  generation and other resources resources, distributed generation energy resources, distributed embedded in the distribution and facilitate other resources generation and other resources network such as energy storage; embedded in the distribution embedded in the distribution network such as energy storage network such as energy storage; and sectoral integration;

• 703. 

  (c) development of demand (c) facilitate the development of (c) (d in GA) facilitation of [ response; demand response; ] demand side flexibility and

  response, and distribution grid users’ access to markets;

• 704. 

  (d) digitalisation of (d) improve the digitalisation of (d) (e in GA) contribute to distribution networks including distribution networks including the digitalisation of distribution deployment of smart grids and deployment of smart grids and [ ] systems including

  intelligent metering systems; smart metering systems; deployment of smart grids and intelligent metering systems;

ANNEX I TREE.2.B EN

• 705. 

  (e) data management, cyber (e) guarantee non(e) (f in GA) support the security and data protection; discriminatory and neutral access development of data

  to data regardless of the data management, cyber security and management model, and promote data protection in cooperation standardization, cross-border data with relevant authorities and exchange, in particular with regulated entities; ENTSO for Electricity where relevant to facilitate data exchange, cyber security and data protection;

• 706. 

  (f) participation in the (f) participate in the elaboration (f) (a in GA) participation in elaboration of network codes of network codes pursuant to the elaboration of network codes pursuant to Article 55. Article 55. which are relevant to the

  operation and planning of distribution grids and the coordinated operation of the transmission and distribution networks pursuant to Article 55.

• 707. 

  2. In addition the EU DSO 2. In addition the EU DSO entity shall: entity shall:

• 708. 

  (a) cooperate with ENTSO AM 175 (a) cooperate with ENTSO for electricity on the monitoring (a) cooperate effectively with for electricity on the monitoring of implementation of the ENTSO for electricity, the Agency of implementation of the

  network codes and guidelines and national regulators to network codes and guidelines which are relevant to the facilitate the monitoring by the which are relevant to the operation and planning of Agency and where relevant the operation and planning of distribution grids and the national regulatory authorities of distribution grids and the coordinated operation of the implementation of the network coordinated operation of the transmission and distribution codes and guidelines which are transmission and distribution networks and which are relevant to the operation and networks and which are adopted adopted pursuant to this planning of distribution grids and pursuant to this Regulation; Regulation; the coordinated operation of the transmission and distribution networks and which are adopted pursuant to this Regulation;

ANNEX I TREE.2.B EN

• 709. 

  (b) cooperate with ENTSO (b) cooperate with ENTSO for electricity and adopt best for electricity and adopt best practices on the coordinated practices on the coordinated

  operation and planning of operation and planning of transmission and distribution transmission and distribution systems including issues such systems including issues such as as exchange of data between exchange of data between operators and coordination of operators and coordination of distributed energy resources; distributed energy resources;

• 710. 

  (c) work on identifying best [ ] practices on the areas identified

  in paragraph 1 and for the introduction of energy efficiency improvements in the distribution network;

• 711. 

  (d) adopt an annual work (d) adopt an annual work programme and an annual programme and an annual

  report; report; 712. (e) operate in full (e) operate in full compliance

  compliance with competition with competition rules and rules. ensure neutrality.

ANNEX I TREE.2.B EN

• 713. 

  Article 52 Consultations in the network code development process

• 714. 

  1. While preparing possible AM 176 1. While preparing possible Council compromise proposal: network codes pursuant to 1. While participating in the network codes pursuant to

Article 55, the EU DSO entity elaboration of new network codes Article 55, the EU DSO entity 1. While participating in the elaboration shall conduct an extensive pursuant to Article 55, the EU DSO shall conduct an extensive of new network codes pursuant to Article 55,

consultation process, at an early entity shall conduct an extensive consultation process, at an early the EU DSO entity shall conduct an stage and in an open and consultation process, at an early stage and in an open and extensive consultation process, at an early transparent manner, involving stage and in an open and transparent manner, involving stage and in an open and transparent manner, all relevant stakeholders, and, transparent manner, involving all all relevant stakeholders, and, in involving all relevant stakeholders, and, in in particular, the organisations relevant stakeholders, and, in particular, the organisations particular, the organisations representing all representing all stakeholders, in particular, the organisations representing all stakeholders, in stakeholders, in accordance with the rules of accordance with the rules of representing all stakeholders, in accordance with the rules of procedure referred to in Article 50. That procedure referred to in Article accordance with the rules of procedure referred to in Article consultation shall also involve national 50. That consultation shall also procedure referred to in Article 50. 50. That consultation shall also regulatory authorities and other national involve national regulatory That consultation shall also involve involve [ ] regulatory authorities, supply and generation authorities and other national national regulatory authorities and authorities and other national undertakings, system users including authorities, supply and other national authorities, supply authorities, supply and customers, [ ], technical bodies and generation undertakings, system and generation undertakings, generation undertakings, system stakeholder platforms. It shall aim at users including customers, system users including customers, users including customers, [ ], identifying the views and proposals of all distribution system operators, distribution system operators, technical bodies and stakeholder relevant parties during the decision-making including relevant industry including relevant industry platforms. It shall aim at process. associations, technical bodies associations, technical bodies and identifying the views and and stakeholder platforms. It stakeholder platforms. It shall aim proposals of all relevant parties shall aim at identifying the at identifying the views and during the decision-making views and proposals of all proposals of all relevant parties process. relevant parties during the during the decision-making decision-making process. process.

ANNEX I TREE.2.B EN

• 715. 

  2. All documents and 2. All documents and No change: minutes of meetings related to minutes of meetings related to 2. All documents and minutes of the consultations referred to in the consultations referred to in meetings related to the consultations referred paragraph 1 shall be made paragraph 1 shall be made to in paragraph 1 shall be made public. public. public.

• 716. 

  3. The EU DSO entity shall 3. The EU DSO entity shall No change: take into consideration the take into consideration the views

  views provided during the provided during the 3. The EU DSO entity shall take into consultations. Before adopting consultations. Before adopting consideration the views provided during the proposals for network codes proposals for network codes consultations. Before adopting proposals for referred to in Article 55 the EU referred to in Article 55 the EU network codes referred to in Article 55 the DSO entity shall indicate how DSO entity shall indicate how EU DSO entity shall indicate how the the observations received the observations received during observations received during the consultation during the consultation have the consultation have been taken have been taken into consideration. It shall been taken into consideration. It into consideration. It shall provide reasons where observations have not shall provide reasons where provide reasons where been taken into account. observations have not been observations have not been taken into account. taken into account.

• 717. 

  Article 53 Cooperation between distribution system operators and transmission system operators

• 718. 

  AM 177 Council compromise proposal to delete:

  Article 53 – paragraph -1 (new) [ ]

  -1. The ENTSO for Electricity

  and the EU DSO entity shall - Cooperation between ENTSO-E and EU develop a formal mechanism to DSO entity covered in lines: 707-709. facilitate cooperation between - Cooperation between DSOs and TSOs distribution system operators and covered in line 719.

  transmission system operators.

ANNEX I TREE.2.B EN

• 719. 

  1. Distribution system AM 178 1. Distribution system Council compromise proposal : operators shall cooperate with 1. Distribution system operators and transmission

  transmission system operators operators and transmission system system operators shall 1. Distribution system operators and in planning and operating their operators shall cooperate in cooperate with each other [ ] in transmission system operators shall

  networks. In particular, planning and operating their planning and operating their cooperate with each other [ ] in planning transmission and distribution networks. In particular, networks. In particular, and operating their networks. In particular, system operators shall exchange transmission and distribution transmission and distribution transmission and distribution system all necessary information and system operators shall exchange all system operators shall exchange operators shall exchange all necessary data regarding, the performance necessary information and data all necessary information and information and data regarding, the of generation assets and regarding, the performance of data regarding, the performance performance of generation assets and demand side response, the daily generation assets and demand side of generation assets and demand demand side response, the daily operation of operation of their networks and response, the daily operation of side response, the daily their networks and the long-term planning of the long-term planning of their networks and the long-term operation of their networks and network investments, with the view to ensure

network investments, with the planning of network investments, the long-term planning of the cost-efficient development and operation and the secure and reliable development and

view to ensure the costwith the view to ensure the costnetwork investments, with the operation of their networks.

efficient, secure and reliable efficient development and view to ensure the cost-efficient, development and operation of operation and the secure and secure and reliable development their networks. reliable operation of their and operation of their networks. networks.

• 720. 

  2. Transmission and 2. Transmission and Council compromise (keep GA): distribution system operators distribution system operators

  shall cooperate in order to shall cooperate with each other 2. Transmission and distribution system achieve coordinated access to in order to achieve coordinated operators shall cooperate with each other in resources such as distributed access to resources such as order to achieve coordinated access to generation, energy storage or distributed generation, energy resources such as distributed generation, demand response that may storage or demand response that energy storage or demand response that may support particular needs of both may support particular needs of support particular needs of both the the distribution system and the both the distribution system and distribution system and the transmission transmission system. the transmission system. system.

ANNEX I TREE.2.B EN

• 721. 

  Chapter VII Network codes and guidelines

• 722. 

  Article 54 Adoption of network codes and guidelines

• 723. 

  1. The Commission may, 1. The Commission may, Council compromise proposal (GA): subject to the empowerments in subject to the empowerments in

  Articles 55 and 57, adopt Articles 55 and 57, adopt [ ] 1. The Commission may, subject to the delegated acts. Such delegated implementing acts. Such [ ] empowerments in Articles 55 and 57, adopt [ acts can either be adopted as implementing acts can either be ] implementing acts. Such [ ] network codes on the basis of adopted as network codes on the implementing acts can either be adopted as text proposals developed by the basis of text proposals network codes on the basis of text proposals ENTSO for Electricity, or, developed by the ENTSO for developed by the ENTSO for Electricity, or, where so decided in the priority Electricity, or, where so decided where so decided in the priority list pursuant list pursuant to Article 55 in the priority list pursuant to to Article 55 paragraph 2, by the EU DSO paragraph 2, by the EU DSO Article 55 paragraph 2, by the entity where relevant in mutual entity and the Agency pursuant EU DSO entity where relevant cooperation with the ENTSO for to the procedure in Article 55 or in mutual cooperation with the Electricity and the Agency pursuant to the as guidelines pursuant to the ENTSO for Electricity and the procedure in Article 55 or as guidelines procedure in Article 57. Agency pursuant to the pursuant to the procedure in Article 57. procedure in Article 55 or as guidelines pursuant to the procedure in Article 57.

• 724. 

  2. The network codes and 2. The network codes and No change: guidelines shall guidelines shall 2. The network codes and guidelines shall

• 725. 

  (a) ensure that they provide (a) ensure that they provide No change: the minimum degree of the minimum degree of (a) ensure that they provide the minimum harmonisation required to harmonisation required to degree of harmonisation required to achieve achieve the aims of this achieve the aims of this the aims of this Regulation; Regulation; Regulation;

• 726. 

  (b) take into account, where (b) take into account, where No change: appropriate, regional appropriate, regional (b) take into account, where appropriate, specificities; specificities; regional specificities;

ANNEX I TREE.2.B EN

• 727. 

  (c) not go beyond what is (c) not go beyond what is No change: necessary for that purpose; and necessary for that purpose; and (c) not go beyond what is necessary for that purpose; and

• 728. 

  (d) be without prejudice to (d) be without prejudice to Council compromise proposal (GA): the Member States’ right to the Member States’ right to (d) be without prejudice to the Member establish national network establish national network codes States’ right to establish national network codes which do not affect crosswhich do not affect cross [ ] codes which do not affect cross [ ] zonal border trade. zonal trade. trade.

• 729. 

  Article 55 Establishment of network codes

• 730. 

  1. The Commission is 1. The Commission is Council compromise proposal: empowered to adopt delegated empowered to adopt [ ] 1. The Commission is empowered to acts in accordance with Article implementing acts in adopt [ ] implementing acts in accordance 63 concerning the establishment accordance with Article [ ] with Article [ ] 62(2) in order to ensure of network codes in the 62(2) in order to ensure uniform conditions for the

  following areas: uniform conditions for the implementation of this Regulation by implementation of this establishing [ ] network codes with

  Regulation by establishing [ ] technical framework conditions and network codes in the following minimum requirements with cross-border areas: relevance in the following areas:

ANNEX I TREE.2.B EN

• 731. 

  (a) network security and (a) network security and Council compromise proposal (GA): reliability rules including rules reliability rules including rules

  for technical transmission for technical transmission (a) network security and reliability rules reserve capacity for operational reserve capacity for operational including rules for technical transmission network security; network security including reserve capacity for operational network system states, remedial actions security including system states, remedial and operational security actions and operational security limits, limits, voltage control and voltage control and reactive power reactive power management, management, short-circuit current short-circuit current management, power flow management, management, power flow contingency analysis and handling, management, contingency protection equipment and schemes, data analysis and handling, exchange, compliance, training, protection equipment and operational planning and security schemes, data exchange, analysis, regional operational security compliance, training, coordination, outage coordination, operational planning and availability plans of relevant assets, security analysis, regional adequacy analysis, ancillary services, operational security scheduling, and operational planning data coordination, outage environments; coordination, availability plans of relevant assets, adequacy analysis, ancillary services, scheduling, and operational planning data environments;

ANNEX I TREE.2.B EN

• 732. 

  (b) network connection (b) network connection rules Council compromise proposal (GA): rules; including connection of

  transmission-connected b) network connection rules including demand facilities, connection of transmission-connected transmission-connected demand facilities, transmission-connected distribution facilities and distribution facilities and distribution distribution systems, systems, connection of demand units used connection of demand units to provide demand response, used to provide demand requirements for grid connection of response, requirements for generators, requirements for high-voltage grid connection of generators, direct current grid connection, requirements for high-voltage requirements for direct current-connected direct current grid connection, power park modules and remote-end requirements for direct high-voltage direct current converter current-connected power park stations, and operational notification modules and remote-end highprocedures for grid connection; voltage direct current converter stations, and operational notification procedures for grid connection;

• 733. 

  (c) third-party access rules; (c) third-party access rules; No change:

  (c) third-party access rules; 734. (d) data exchange and (d) data exchange and No change:

  settlement rules; settlement rules; (d) data exchange and settlement rules; 735. (e) interoperability rules; (e) interoperability rules; No change:

  (e) interoperability rules; 736. (f) operational procedures in (f) operational procedures in Council compromise proposal (GA):

  an emergency; an emergency including system (f) operational procedures in an emergency defence plans, restoration including system defence plans,

  plans, market interactions, restoration plans, market interactions, information exchange and information exchange and communication communication and tools and and tools and facilities; facilities;

ANNEX I TREE.2.B EN

• 737. 

  (g) capacity-allocation and (g) capacity-allocation and Council compromise proposal (GA): congestion-management rules congestion-management rules [

  including curtailment of ] including day ahead, (g) capacity-allocation and congestiongeneration and redispatch of intraday and forward capacity management rules [ ] including day ahead, generation and demand; calculation methodologies and intraday and forward capacity calculation processes, grid models, methodologies and processes, grid models, bidding zone configuration, bidding zone configuration, redispatching redispatching and and countertrading, trading algorithms, countertrading, trading single day-ahead and intraday coupling, algorithms, single day-ahead firmness of allocated cross-zonal capacity, and intraday coupling, congestion income distribution, crossfirmness of allocated crosszonal transmission risk hedging, zonal capacity, congestion nomination procedures, and capacity income distribution, crossallocation and congestion management zonal transmission risk cost recovery hedging, nomination procedures, and capacity allocation and congestion management cost recovery ;

• 738. 

  (h) rules for trading related (h) rules for trading related to Council compromise proposal (GA): to technical and operational technical and operational

  provision of network access provision of network access (h) rules for trading related to technical services and system balancing; services and system balancing and operational provision of network access including functions and services and system balancing including responsibilities, platforms for functions and responsibilities, platforms the exchange of balancing for the exchange of balancing energy, gate energy, gate closure times, closure times, requirements for standard requirements for standard and and specific products, procurement of specific products, procurement balancing services, allocation of crossof balancing services, zonal capacity for the exchange of allocation of cross-zonal balancing services or sharing of reserves, capacity for the exchange of settlement of balancing energy, settlement balancing services or sharing of exchanges of energy between system of reserves, settlement of operators, imbalance settlement and balancing energy, settlement settlement of balancing capacity;

ANNEX I TREE.2.B EN

of exchanges of energy between system operators, imbalance settlement and settlement of balancing capacity;

• 739. 

  (i) transparency rules; (i) transparency rules; No change:

  (i) transparency rules; 740. (j) balancing rules including (j) balancing rules including Council compromise proposal (GA):

  network-related reserve power network-related reserve power (j) balancing rules including networkrules; rules including load frequency related reserve power rules including load control, frequency quality frequency control, frequency quality defining and target defining and target parameters, frequency parameters, frequency containment reserves, frequency containment reserves, restoration reserves, replacement frequency restoration reserves, reserves, exchange and sharing of replacement reserves, reserves, cross-border activation processes exchange and sharing of of reserves, time-control processes and reserves, cross-border transparency of information; activation processes of reserves, time-control processes and transparency of information;

• 741. 

  (k) rules regarding AM 179 (k) rules regarding Provisionally agreed in TM (GA): harmonised transmission and deleted harmonised transmission [ ] (k) rules regarding harmonised distribution tariff structures and tariff structures [as referred to transmission [ ] tariff structures [as referred connection charges including in Article 16] [ ] including to in Article 16] [ ] including locational locational signals and interlocational signals and intersignals and inter-transmission system transmission system operator transmission system operator operator compensation rules; energy compensation rules; compensation rules; energy efficiency regarding electricity networks; efficiency regarding electricity

  networks;

ANNEX I TREE.2.B EN

• 742. 

  (l) energy efficiency [ ] Provisionally agreed in TM (deletion): regarding electricity networks; [ ]

• 743. 

  (m) rules for non(m) rules for non Provisionally agreed in TM (GA): discriminatory, transparent discriminatory, transparent (m) rules for non-discriminatory, provision of non-frequency provision of non-frequency transparent provision of non-frequency ancillary services, including ancillary services, including ancillary services, including steady state steady state voltage control, steady state voltage control, voltage control, inertia, fast reactive current inertia, fast reactive current inertia, fast reactive current injection, inertia for grid stability, short injection, black-start capability; injection, inertia for grid circuit current, black-start capability and stability, short circuit current, island operation capability;

  black-start capability and island operation capability;

• 744. 

  (n) demand response, [ ] Provisionally agreed in TM: including aggregation, energy (n) demand response, including storage, and demand aggregation, energy storage, and demand curtailment rules; curtailment rules

• 745. 

  (o) cyber security rules; and (o) sector-specific rules for Council compromise proposal (GA): cyber security [ ] aspects of (o) sector-specific rules for cyber cross-border electricity flows, security [ ] aspects of cross-border on common minimum electricity flows, on common minimum requirements, planning, requirements, planning, monitoring, monitoring, reporting and reporting and crisis management; crisis management;

• 746. 

  (p) rules concerning regional AM 180 [ ] [ ] operational centres. deleted

ANNEX I TREE.2.B EN

• 747. 

  2. The Commission shall, after AM 181 2. The Commission shall, Council compromise proposal: (GA) consulting the Agency, the 2. The Commission shall, after after consulting the Agency, the

  ENTSO for Electricity and the consulting the Agency, the ENTSO ENTSO for Electricity, the EU 2. The Commission shall, after other relevant stakeholders, for Electricity, the EU DSO entity DSO Entity and the other consulting the Agency, the ENTSO for establish a priority list every for electricity and the other relevant stakeholders, establish a Electricity, the EU DSO Entity and the three years, identifying the relevant stakeholders, establish a priority list every three years, other relevant stakeholders, establish a areas set out in paragraph 1 to priority list every three years, identifying the areas set out priority list every three years, identifying the be included in the development identifying the areas set out in in paragraph 1 to be included in areas set out in paragraph 1 to be included in of network codes. If the paragraph 1 to be included in the the development of network the development of network codes. If the subject-matter of the network development of network codes. If codes. If the subject-matter of subject-matter of the network code is directly code is directly related to the the subject-matter of the network the network code is directly related to the operation of the distribution operation of the distribution code is directly related to the related to the operation of the system and [ ] not primarily relevant for system and less relevant for the operation of the distribution system distribution system and [ ] not the transmission, the Commission may transmission system, the and less relevant for the primarily relevant for the require the EU DSO entity in cooperation Commission may require the transmission system, the transmission, the Commission with [ ] the ENTSO for Electricity to EU DSO entity for electricity Commission may require the EU may require the EU DSO entity convene a drafting committee and submit a instead of the ENTSO for DSO entity for electricity instead in cooperation with [ ] the proposal for a network code to the agency. Electricity to convene a drafting of the ENTSO for Electricity to ENTSO for Electricity to committee and submit a convene a drafting committee and convene a drafting committee proposal for a network code to submit a proposal for a network and submit a proposal for a the agency. code to the agency. network code to the agency.

ANNEX I TREE.2.B EN

• 748. 

  3. The Commission shall 3. The Commission shall No change: request the Agency to submit to request the Agency to submit to 3. The Commission shall request the it within a reasonable period of it within a reasonable period of Agency to submit to it within a reasonable time not exceeding six months a time not exceeding six months a period of time not exceeding six months a non-binding framework non-binding framework non-binding framework guideline guideline (framework guideline (framework guideline) (framework guideline) setting out clear and guideline) setting out clear and setting out clear and objective objective principles for the development of objective principles for the principles for the development network codes relating to the areas identified development of network codes of network codes relating to the in the priority list. The request of the relating to the areas identified areas identified in the priority Commission may include conditions which in the priority list. The request list. The request of the the framework guideline shall address. Each of the Commission may include Commission may include framework guideline shall contribute to conditions which the conditions which the framework market integration, non-discrimination, framework guideline shall guideline shall address. Each effective competition, and the efficient address. Each framework framework guideline shall functioning of the market. Upon a reasoned guideline shall contribute to contribute to market integration, request from the Agency, the Commission market integration, nonnon-discrimination, effective may extend that period. discrimination, effective competition, and the efficient

  competition, and the efficient functioning of the market. Upon functioning of the market. Upon a reasoned request from the a reasoned request from the Agency, the Commission may Agency, the Commission may extend that period. extend that period.

• 749. 

  4. The Agency shall 4. The Agency shall No change: formally consult the ENTSO formally consult the ENTSO for 4. The Agency shall formally consult the for Electricity, the EU DSO Electricity , the EU DSO entity, ENTSO for Electricity , the EU DSO entity, entity, and the other relevant and the other relevant and the other relevant stakeholders in regard stakeholders in regard to the stakeholders in regard to the to the framework guideline, during a period framework guideline, during a framework guideline, during a of no less than two months, in an open and period of no less than two period of no less than two transparent manner. months, in an open and months, in an open and

  transparent manner. transparent manner.

ANNEX I TREE.2.B EN

• 750. 

  5. The Agency shall submit 5. The Agency shall submit No change: a non-binding framework a non-binding framework 5. The Agency shall submit a nonguideline to the Commission guideline to the Commission binding framework guideline to the where requested to do so under where requested to do so under Commission where requested to do so under paragraph 3. The Agency shall paragraph 3. The Agency shall paragraph 3. The Agency shall review the review the non-binding review the non-binding non-binding framework guideline and reframework guideline and reframework guideline and resubmit it to the Commission where requested submit it to the Commission submit it to the Commission to do so under paragraph 6. where requested to do so under where requested to do so under

  paragraph 6. paragraph 6. 751. 6. If the Commission 6. If the Commission No change:

  considers that the framework considers that the framework 6. If the Commission considers that the guideline does not contribute to guideline does not contribute to framework guideline does not contribute to market integration, nonmarket integration, nonmarket integration, non-discrimination, discrimination, effective discrimination, effective effective competition and the efficient competition and the efficient competition and the efficient functioning of the market, it may request the functioning of the market, it functioning of the market, it may Agency to review the framework guideline may request the Agency to request the Agency to review the within a reasonable period of time and rereview the framework guideline framework guideline within a submit it to the Commission. within a reasonable period of reasonable period of time and retime and re-submit it to the submit it to the Commission. Commission.

• 752. 

  7. If the Agency fails to 7. If the Agency fails to No change: submit or re-submit a submit or re-submit a framework 7. If the Agency fails to submit or reframework guideline within the guideline within the period set submit a framework guideline within the period set by the Commission by the Commission under period set by the Commission under under paragraphs 3 or 6, the paragraphs 3 or 6, the paragraphs 3 or 6, the Commission shall Commission shall elaborate the Commission shall elaborate the elaborate the framework guideline in framework guideline in framework guideline in question.

  question. question.

ANNEX I TREE.2.B EN

• 753. 

  8. The Commission shall 8. The Commission shall Council compromise proposal: (GA) request the ENTSO for request the ENTSO for 8. The Commission shall request the Electricity or, where so decided Electricity or, where so decided ENTSO for Electricity or, where so decided in the priority list pursuant to in the priority list pursuant to in the priority list pursuant to paragraph 2, paragraph 2, the EU DSO entity paragraph 2, the EU DSO entity the EU DSO entity [ ] in co-operation with for Electricity, to submit a [ ] in co-operation with the the ENTSO for Electricity, to submit a proposal for a network code ENTSO for Electricity, to proposal for a network code which is in line which is in line with the submit a proposal for a network with the relevant framework guideline, to the relevant framework guideline, code which is in line with the Agency within a reasonable period of time to the Agency within a relevant framework guideline, to not exceeding 12 months.

  reasonable period of time not the Agency within a reasonable exceeding 12 months. period of time not exceeding 12 months.

• 754. 

  9. The ENTSO for 9. The ENTSO for Council compromise proposal: (GA)

  Electricity, or where so decided Electricity, or where so decided 9. The ENTSO for Electricity, or where in the priority list pursuant to in the priority list pursuant to so decided in the priority list pursuant to paragraph 2, the EU DSO paragraph 2, the EU DSO entity, paragraph 2, the EU DSO entity, shall entity, shall convene a drafting shall convene a drafting convene a drafting committee to support it in committee to support it in the committee to support it in the the network code development process. The network code development network code development drafting committee shall consist of process. The drafting process. The drafting committee representatives of the ENTSO for Electricity, committee shall consist of shall consist of representatives the Agency, where appropriate of the EU representatives of the ENTSO of the ENTSO for Electricity, DSO entity, where appropriate of nominated for Electricity, the Agency, the the Agency, where appropriate electricity market operators and a limited EU DSO entity, where of the EU DSO entity, where number of the main affected stakeholders. appropriate of nominated appropriate of nominated The ENTSO for Electricity or where so electricity market operators and electricity market operators and decided in the priority list pursuant to a limited number of the main a limited number of the main paragraph 2 the EU DSO entity, in coaffected stakeholders.The affected stakeholders. The operation with the ENTSO for ENTSO for Electricity or where ENTSO for Electricity or where Electricity shall elaborate proposals for so decided in the priority list so decided in the priority list network codes in the areas referred to in pursuant to paragraph 2 the EU pursuant to paragraph 2 the EU paragraph 1 upon a request addressed to it by DSO entity,shall elaborate DSO entity, in co-operation the Commission in accordance with proposals for network codes in with the ENTSO for paragraph 8.

  the areas referred to in Electricity shall elaborate paragraph 1 upon a request proposals for network codes in

ANNEX I TREE.2.B EN

addressed to it by the the areas referred to in paragraph Commission in accordance with 1 upon a request addressed to it paragraph 8. by the Commission in accordance with paragraph 8.

• 755. 

  10. The Agency shall revise 10. The Agency shall revise No change: the network code and ensure the network code and ensure that 10. The Agency shall revise the network that the network code is in line the network code is in line with code and ensure that the network code is in with the relevant framework the relevant framework line with the relevant framework guideline guideline and contributes to guideline and contributes to and contributes to market integration, nonmarket integration, nonmarket integration, nondiscrimination, effective competition, and discrimination, effective discrimination, effective the efficient functioning of the market and competition, and the efficient competition, and the efficient submit the revised network code to the functioning of the market and, functioning of the market and Commission within six months of the day of submit the revised network submit the revised network code the receipt of the proposal . In the proposal code to the Commission within to the Commission within six submitted to the Commission, the Agency six months of the day of the months of the day of the receipt shall take into account the views provided by receipt of the proposal. In the of the proposal . In the proposal all involved parties during the drafting of the proposal submitted to the submitted to the Commission, proposal led by the ENTSO for Electricity or Commission, the Agency shall the Agency shall take into the EU DSO entity and shall formally take into account the views account the views provided by consult the relevant stakeholders on the provided by all involved parties all involved parties during the version to be submitted to the Commission during the drafting of the drafting of the proposal led by

  proposal led by the ENTSO for the ENTSO for Electricity or the Electricity or the EU DSO EU DSO entity and shall entity and shall formally formally consult the relevant consult the relevant stakeholders on the version to be stakeholders on the version to submitted to the Commission. be submitted to the Commission.

ANNEX I TREE.2.B EN

• 756. 

  11. Where the ENTSO for 11. Where the ENTSO for No change:

  Electricity or the EU DSO Electricity or the EU DSO entity 11. Where the ENTSO for Electricity or entity have failed to develop a have failed to develop a network the EU DSO entity have failed to develop a network code within the period code within the period of time network code within the period of time set of time set by the Commission set by the Commission under by the Commission under paragraph 8, the under paragraph 8, the paragraph 8, the Commission Commission may request the Agency to Commission may request the may request the Agency to prepare a draft network code on the basis of Agency to prepare a draft prepare a draft network code on the relevant framework guideline. The network code on the basis of the basis of the relevant Agency may launch a further consultation in the relevant framework framework guideline. The the course of preparing a draft network code guideline. The Agency may Agency may launch a further under this paragraph. The Agency shall launch a further consultation in consultation in the course of submit a draft network code prepared under the course of preparing a draft preparing a draft network code this paragraph to the Commission and may network code under this under this paragraph. The recommend that it be adopted. paragraph. The Agency shall Agency shall submit a draft submit a draft network code network code prepared under prepared under this paragraph this paragraph to the to the Commission and may Commission and may recommend that it be adopted. recommend that it be adopted.

• 757. 

  12. The Commission may 12. The Commission may No change: adopt, on its own initiative, adopt, on its own initiative, 12. The Commission may adopt, on its where the ENTSO for where the ENTSO for Electricity own initiative, where the ENTSO for Electricity or the EU DSO or the EU DSO entity have Electricity or the EU DSO entity have failed entity have failed to develop a failed to develop a network to develop a network code, or the Agency network code, or the Agency code, or the Agency has failed to has failed to develop a draft network code as has failed to develop a draft develop a draft network code as referred to in paragraph 11 of this Article, or network code as referred to in referred to in paragraph 11 of upon recommendation of the Agency under paragraph 11 of this Article, or this Article, or upon paragraph 10 of this Article, one or more upon recommendation of the recommendation of the Agency network codes in the areas listed in Agency under paragraph 10 of under paragraph 10 of this paragraph 1. this Article, one or more Article, one or more network

  network codes in the areas codes in the areas listed in listed in paragraph 1. paragraph 1.

ANNEX I TREE.2.B EN

• 758. 

  13. Where the Commission 13. Where the Commission No change: proposes to adopt a network proposes to adopt a network 13. Where the Commission proposes to code on its own initiative, the code on its own initiative, the adopt a network code on its own initiative, Commission shall consult the Commission shall consult the the Commission shall consult the Agency, Agency, the ENTSO for Agency, the ENTSO for the ENTSO for Electricity and all relevant Electricity and all relevant Electricity and all relevant stakeholders in regard to the draft network stakeholders in regard to the stakeholders in regard to the code during a period of no less than two draft network code during a draft network code during a months.

  period of no less than two period of no less than two months. months.

• 759. 

  14. This Article shall be 14. This Article shall be No change: without prejudice to the without prejudice to the

  Commission's right to adopt Commission's right to adopt and 14. This Article shall be without prejudice and amend the guidelines as amend the guidelines as laid to the Commission's right to adopt and laid down in Article 57. It shall down in Article 57. It shall be amend the guidelines as laid down in Article be without prejudice to the without prejudice to the 57. It shall be without prejudice to the possibility for the ENTSO for possibility for the ENTSO for possibility for the ENTSO for Electricity to Electricity to develop non Electricity to develop nondevelop non-binding guidance in the areas binding guidance in the areas binding guidance in the areas set set out in paragraph 1 where this does set out in paragraph 1 where out in paragraph 1 where this not relate to areas covered by a request this does not relate to areas does not relate to areas covered addressed to it by the Commission. This covered by a request addressed by a request addressed to it by guidance shall be submitted to the Agency to it by the Commission. This the Commission. This for an opinion. This opinion shall be taken guidance shall be submitted to guidance shall be submitted to duly into account by the ENTSO for the Agency for an opinion. This the Agency for an opinion. This Electricity.

  opinion shall be taken duly into opinion shall be taken duly into account by the ENTSO for account by the ENTSO for Electricity. Electricity.

ANNEX I TREE.2.B EN

• 760. 

  Article 56 Amendments of network codes

• 761. 

  1. The Commission is 1. Until 31 December 2025 Council compromise proposal (GA):

  empowered to adopt delegated the Commission is empowered

  acts in accordance with Article to adopt [ ] implementing acts 1. Until 31 December 20285 the 63 concerning the amendment in accordance with Article [ ] Commission is empowered to adopt [ ] of network codes following the 62(2) concerning the amendment implementing acts in accordance with procedure under Article 55. of network codes within the Article [ ] 62(2) concerning the amendment Amendments can also be areas listed in Article 55(1) of network codes within the areas listed in proposed by the Agency under and following the procedure Article 55(1) and following the procedure the procedure set out in under Article 55. [ ] under Article 55. [ ]

  paragraphs 2 to 4 of this Article.

• 762. 

  2. Draft amendments to any AM 182 2. Draft amendments to Council compromise proposal (GA): network code adopted under 2. Draft amendments to any any network code adopted under

  Article 55 may be proposed to network code adopted under Article 55 may be proposed to 2. Draft amendments to any network the Agency by persons who are Article 55 may be proposed to the the Agency by persons who are code adopted under Article 55 may be likely to have an interest in that Agency by persons who are likely likely to have an interest in that proposed to the Agency by persons who are network code, including the to have an interest in that network network code, including the likely to have an interest in that network ENTSO for Electricity, the EU code, including the ENTSO for ENTSO for Electricity, the EU code, including the ENTSO for Electricity, DSO entity, transmission Electricity, the EU DSO entity, DSO entity, regulatory the EU DSO entity, regulatory authorities system operators, system users transmission and distribution authorities distribution and distribution and transmission system and consumers. The Agency system operators, system users and transmission system operators, operators, system users and consumers. The may also propose amendments consumers. The Agency may also system users and consumers. Agency may also propose amendments on its on its own initiative. propose amendments on its own The Agency may also propose own initiative.

  initiative. amendments on its own initiative.

ANNEX I TREE.2.B EN

• 763. 

  3. The Agency may make 3. The Agency may make No change: reasoned proposals for reasoned proposals for 3. The Agency may make reasoned amendments to the amendments to the Commission proposals for amendments to the Commission, explaining how explaining how such proposals Commission explaining how such proposals such proposals are consistent are consistent with the are consistent with the objectives of the with the objectives of the objectives of the network codes network codes set out in Article 55(2). network codes set out in Article set out in Article 55(2). Where Where it deems an amendment proposal 55(2). Where it deems an it deems an amendment proposal admissible and on amendments on its own amendment proposal admissible admissible and on amendments initiative, the Agency shall consult all and on amendments on its own on its own initiative, the Agency stakeholders in accordance with Article 15 initiative, the Agency shall shall consult all stakeholders in [recast of Regulation (EC) No 713/2009 i as consult all stakeholders in accordance with Article 15 proposed by COM(2016) 863 i/2]. accordance with Article 15 [recast of Regulation (EC) No

  [recast of Regulation (EC) No 713/2009 i as proposed by 713/2009 as proposed by COM(2016) 863 i/2]. COM(2016) 863 i/2].

• 764. 

  4. The Commission is 4. Until 31 December 2025 Council compromise proposal: empowered to adopt, taking the Commission is empowered 4. Until 31 December 20285 the account of the Agency's to adopt, taking account of the Commission is empowered to adopt, taking proposals, amendments to any Agency's proposals, account of the Agency's proposals, network code adopted under amendments to any network amendments to any network code adopted Article 55 6 as delegated acts in code adopted under Article 55 as under Article 55 as [ ] implementing acts in accordance with Article 63. [ ] implementing acts in accordance with Article [ ] 62(2). accordance with Article [ ]

  62(2).

ANNEX I TREE.2.B EN

• 765. 

  5. Consideration of [ ] Council compromise proposal: proposed amendments under [ ]

  the procedure set out in Article 63 shall be limited to consideration of the aspects related to the proposed amendment. Those proposed amendments are without prejudice to other amendments which the Commission may propose.

• 766. 

  AM 183 Covered by line 788.

  Article 56 a (new) Article 56 a By 31 December 2022 the Commission shall assess the existing implementing acts containing network codes and guidelines in order to evaluate which of their elements could be usefully enshrined in legislative acts of the Union concerning the internal electricity market. The Commission shall submit a detailed report of its assessment to the European Parliament and to the Council. That report shall be accompanied, where appropriate, by legislative proposals following up on the Commission's assessment.

ANNEX I TREE.2.B EN

• 767. 

  Article 57 Guidelines

• 768. 

  1. The Commission may 1. Until 31 December 2025 Council compromise proposal: adopt binding guidelines in the the Commission may adopt 1. Until 31 December 20258 the areas listed below. binding guidelines by in the Commission may adopt binding guidelines areas listed below. Those by in the areas listed below. Those guidelines shall be adopted as guidelines shall be adopted as implementing acts in implementing acts in accordance with the accordance with the examination procedure referred to in examination procedure Article 62(2).

  referred to in Article 62(2). 769. 2. The Commission may 2. Until 31 December 2025 Council compromise proposal:

  adopt a delegated act as a the Commission may adopt [ ] 2. Until 31 December 20258 the Guideline in the areas where implementing acts as a Commission may adopt [ ] implementing such acts could also be Guideline in the areas where acts as a Guideline in the areas where such developed under the network such acts could also be acts could also be developed under the code procedure pursuant to developed under the network network code procedure pursuant to Article Article 55 (1). code procedure pursuant to 55 (1). Article 55 (1).

• 770. 

  3. Guidelines may be 3. Guidelines may be No change: adopted relating to the interadopted relating to the inter 3. Guidelines may be adopted relating to transmission system operator transmission system operator the inter-transmission system operator compensation mechanism. They compensation mechanism. They compensation mechanism. They shall shall specify, in accordance shall specify, in accordance with specify, in accordance with the principles set with the principles set out in the principles set out in Articles out in Articles 46 and 16: Articles 46 and 16: 46 and 16:

ANNEX I TREE.2.B EN

• 771. 

  (a) details of the procedure (a) details of the procedure No change: for determining which for determining which (a) details of the procedure for transmission system operators transmission system operators determining which transmission system are liable to pay compensation are liable to pay compensation operators are liable to pay compensation for for cross-border flows including for cross-border flows including cross-border flows including as regards the as regards the split between the as regards the split between the split between the operators of national operators of national operators of national transmission systems from which crosstransmission systems from transmission systems from border flows originate and the systems where which cross-border flows which cross-border flows those flows end, in accordance with Article originate and the systems where originate and the systems where 46(2);

  those flows end, in accordance those flows end, in accordance with Article 46(2); with Article 46(2);

• 772. 

  (b) details of the payment (b) details of the payment No change: procedure to be followed, procedure to be followed, (b) details of the payment procedure to be including the determination of including the determination of followed, including the determination of the the first period for which the first period for which first period for which compensation is to be compensation is to be paid, in compensation is to be paid, in paid, in accordance with the second accordance with the second accordance with the second subparagraph of Article 46(3); subparagraph of Article 46(3); subparagraph of Article 46(3);

• 773. 

  (c) details of methodologies (c) details of methodologies No change: for determining the crossfor determining the cross-border (c) details of methodologies for border flows hosted for which flows hosted for which determining the cross-border flows hosted compensation is to be paid compensation is to be paid under for which compensation is to be paid under under Article 46, in terms of Article 46, in terms of both Article 46, in terms of both quantity and type both quantity and type of flows, quantity and type of flows, and of flows, and the designation of the and the designation of the the designation of the magnitudes of such flows as originating magnitudes of such flows as magnitudes of such flows as and/or ending in transmission systems of originating and/or ending in originating and/or ending in individual Member States, in accordance transmission systems of transmission systems of with Article 46(5); individual Member States, in individual Member States, in

  accordance with Article 46(5); accordance with Article 46(5);

ANNEX I TREE.2.B EN

• 774. 

  (d) details of the (d) details of the No change: methodology for determining methodology for determining the (d) details of the methodology for the costs and benefits incurred costs and benefits incurred as a determining the costs and benefits incurred as a result of hosting crossresult of hosting cross-border as a result of hosting cross-border flows, in border flows, in accordance flows, in accordance with accordance with Article 46(6); with Article 46(6); Article 46(6);

• 775. 

  (e) details of the treatment in (e) details of the treatment in No change: the context of the interthe context of the inter(e) details of the treatment in the context transmission system operator transmission system operator of the inter-transmission system operator compensation mechanism of compensation mechanism of compensation mechanism of electricity flows electricity flows originating or electricity flows originating or originating or ending in countries outside the ending in countries outside the ending in countries outside the European Economic Area; and European Economic Area; and European Economic Area; and

• 776. 

  (f) the participation of (f) the participation of No change: national systems which are national systems which are (f) the participation of national systems interconnected through direct interconnected through direct which are interconnected through direct current lines, in accordance current lines, in accordance with current lines, in accordance with Article 46. with Article 46. Article 46.

ANNEX I TREE.2.B EN

• 777. 

  4. Guidelines may also 4. Guidelines may also Council compromise proposal (GA): determine appropriate rules determine appropriate rules

  relating to charges applied to relating to charges applied to 4. Guidelines may also determine producers, energy storage and producers, energy storage and appropriate rules relating to charges applied customers (load) under national customers (load) under national to producers, energy storage and customers distribution and transmission [ ] transmission tariff systems [ (load) under national [ ] transmission tariff tariff systems and connection ], including the reflection of the systems [ ], including the reflection of the regimes, including the inter-transmission system inter-transmission system operator reflection of the interoperator compensation compensation mechanism in national transmission system operator mechanism in national network network charges and the provision of compensation mechanism in charges and the provision of appropriate and efficient locational signals, national network charges and appropriate and efficient in accordance with the principles set out in the provision of appropriate and locational signals, in accordance Article 16. efficient locational signals, in with the principles set out in accordance with the principles Article 16. set out in Article 16.

• 778. 

  The guidelines may make The guidelines may make No change: provision for appropriate and provision for appropriate and The guidelines may make provision for efficient harmonised locational efficient harmonised locational appropriate and efficient harmonised signals at Union level. signals at Union level. locational signals at Union level.

• 779. 

  Any such harmonisation shall Any such harmonisation shall No change: not prevent Member States not prevent Member States from Any such harmonisation shall not prevent from applying mechanisms to applying mechanisms to ensure Member States from applying mechanisms to ensure that network access that network access charges ensure that network access charges borne by charges borne by customers borne by customers (load) are customers (load) are comparable throughout (load) are comparable comparable throughout their their territory. throughout their territory. territory.

ANNEX I TREE.2.B EN

• 780. 

  5. Where appropriate, 5. Where appropriate, No change: guidelines providing the guidelines providing the 5. Where appropriate, minimum degree of minimum degree of guidelines providing the minimum degree of harmonisation required to harmonisation required to harmonisation required to achieve the aim of achieve the aim of this achieve the aim of this this Regulation may also specify: Regulation may also specify: Regulation may also specify:

• 781. 

  (a) details of rules for the (a) details of rules for the No change: trading of electricity; trading of electricity; (a) details of rules for the trading of electricity;

• 782. 

  (b) details of investment (b) details of investment No change: incentive rules for incentive rules for

  interconnector capacity interconnector capacity including locational signals; including locational signals;

• 783. 

  6. The Commission may 6. The Commission may No change adopt guidelines on the adopt guidelines on the

  implementation of operational implementation of operational coordination between coordination between transmission system operators transmission system operators at at Union level. Those Union level. Those guidelines guidelines shall be consistent shall be consistent with and with and build upon the build upon the network codes network codes referred to in referred to in Article 55 of this Article 55 of this Regulation Regulation and build upon the and build upon the adopted adopted specifications referred specifications referred to in to in Article 27(1)(g) of this Article 27(1)(g) of this Regulation. When adopting Regulation. When adopting those guidelines, the those guidelines, the Commission shall take into Commission shall take into account differing regional and account differing regional and national operational national operational requirements. requirements.

ANNEX I TREE.2.B EN

• 784. 

  Those guidelines shall be [Those guidelines shall be No change adopted in accordance with the adopted in accordance with the

  examination procedure referred examination procedure referred to in Article 62(2). to in Article 62(2). ]

• 785. 

  7. When adopting or AM 184 7. When adopting or Council compromise proposal (GA/EP): amending guidelines, the 7. When adopting or amending amending guidelines, the 7. When adopting or amending

  Commission shall consult the guidelines, the Commission shall Commission shall consult the guidelines, the Commission shall consult the Agency, the ENTSO for consult the Agency, the ENTSO for Agency, the ENTSO for Agency, the ENTSO for Electricity, the EU Electricity and other Electricity, the EU DSO entity and Electricity, the EU DSO Entity DSO Entity and other stakeholders where stakeholders where relevant. other stakeholders where relevant. and other stakeholders where relevant. relevant.

• 786. 

  Article 58 Right of Member States to provide for more detailed measures

• 787. 

  This Regulation shall be This Regulation shall be without Council compromise proposal: without prejudice to the rights prejudice to the rights of

  of Member States to maintain Member States to maintain or This Regulation shall be without prejudice to or introduce measures that introduce measures that contain the rights of Member States to maintain or contain more detailed more detailed provisions than introduce measures that contain more provisions than those set out in those set out in this Regulation, detailed provisions than those set out in this this Regulation, in the in the guidelines referred to in Regulation, in the guidelines referred to in guidelines referred to in Article Article 57 or in the network Article 57 or in the network codes referred to 57 or in the network codes codes referred to in Article 55, in Article 55, provided those measures are referred to in Article 55, provided those measures do not [ compatible with do not [ ] contradict of provided those measures do not ] contradict of Union Union legislation. endanger the effectiveness of legislation. Union legislation.

ANNEX I TREE.2.B EN

• 788. 

  Article 58a Council compromise proposal:

  By 31 December 2023 the By 1 July 2025 the Commission shall Commission shall assess the assess the existing implementing acts existing implementing acts containing network codes and guidelines containing network codes and in order to evaluate which of their guidelines in order to evaluate elements could be usefully enshrined in which of their elements could legislative acts of the Union concerning be usefully enshrined in the internal electricity market and how legislative acts of the Union the empowerments for network codes and concerning the internal guidelines pursuant to Articles 55 and 57 electricity market and how the could be revised. The Commission shall empowerments for network submit a detailed report of its assessment codes and guidelines pursuant to the European Parliament and the to Articles 55 and 57 could be Council. revised. The Commission shall submit a detailed report of its Based on that report the Commission assessment to the European shall, where appropriate, submit Parliament and the Council. legislative proposals following up on its That report shall be assessment until 31 December 2026. accompanied, where appropriate, by legislative proposals following up on the Commission's assessment.

ANNEX I TREE.2.B EN

• 789. 

  Chapter VIII Final provisions

• 790. 

  Article 59 New interconnectors

• 791. 

  1. New direct current 1. New direct current No change: interconnectors may, upon interconnectors may, upon 1. New direct current interconnectors request, be exempted, for a request, be exempted, for a may, upon request, be exempted, for a limited period of time, from the limited period of time, from the limited period of time, from the provisions of provisions of Article 17(2) of provisions of Article 17(2) of Article 17(2) of this Regulation and Articles this Regulation and Articles 6, this Regulation and Articles 6, 6, 43, 59(6) and 60(1) of [recast of Directive 43 59(6) and 60(1) of [recast of 43, 59(6) and 60(1) of [recast of 2009/72/EC as proposed by COM(2016) Directive 2009/72/EC i as Directive 2009/72/EC i as 864/2] under the following conditions: proposed by COM(2016) proposed by COM(2016) 864 i/2] 864/2] under the following under the following conditions:

  conditions:

• 792. 

  (a) the investment must (a) the investment must No change: enhance competition in enhance competition in (a) the investment must enhance electricity supply; electricity supply; competition in electricity supply;

• 793. 

  (b) the level of risk attached (b) the level of risk attached No change: to the investment is such that to the investment is such that the (b) the level of risk attached to the the investment would not take investment would not take place investment is such that the investment would place unless an exemption is unless an exemption is granted; not take place unless an exemption is granted; granted;

• 794. 

  (c) the interconnector must (c) the interconnector must be No change: be owned by a natural or legal owned by a natural or legal (c) the interconnector must be owned by a person which is separate at least person which is separate at least natural or legal person which is separate at in terms of its legal form from in terms of its legal form from least in terms of its legal form from the the system operators in whose the system operators in whose system operators in whose systems that systems that interconnector will systems that interconnector will interconnector will be built; be built; be built;

• 795. 

  (d) charges are levied on (d) charges are levied on No change: users of that interconnector; users of that interconnector; (d) charges are levied on users of that interconnector;

ANNEX I TREE.2.B EN

• 796. 

  (e) since the partial market (e) since the partial market No change: opening referred to in Article opening referred to in Article 19 (e) since the partial market opening 19 of Directive 96/92/EC i of the of Directive 96/92/EC i of the referred to in Article 19 of Directive European Parliament and of the European Parliament and of the 96/92/EC of the European Parliament and of

  33

  Council , no part of the capital Council 34 , no part of the capital the Council 35 , no part of the capital or or operating costs of the or operating costs of the operating costs of the interconnector has interconnector has been interconnector has been been recovered from any component of recovered from any component recovered from any component charges made for the use of transmission or of charges made for the use of of charges made for the use of distribution systems linked by the transmission or distribution transmission or distribution interconnector; and systems linked by the systems linked by the interconnector; and interconnector; and

• 797. 

  (f) the exemption must not (f) the exemption must not be No change: be to the detriment of to the detriment of competition (f) the exemption must not be to the competition or the effective or the effective functioning of detriment of competition or the effective functioning of the internal the internal market in electricity, functioning of the internal market in market in electricity, or the or the efficient functioning of electricity, or the efficient functioning of the efficient functioning of the the regulated system to which regulated system to which the interconnector regulated system to which the the interconnector is linked. is linked.

  interconnector is linked.

33 Directive 96/92/EC i of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity (OJ L 27, 30.1.1997, p. 20).

34 Directive 96/92/EC i of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity (OJ L 27, 30.1.1997, p. 20).

35 Directive 96/92/EC i of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity (OJ L 27, 30.1.1997, p. 20).

ANNEX I TREE.2.B EN

• 798. 

  2. Paragraph 1 shall also 2. Paragraph 1 shall also No change: apply, in exceptional cases, to apply, in exceptional cases, to 2. Paragraph 1 shall also apply, in alternating current alternating current exceptional cases, to alternating current interconnectors provided that interconnectors provided that the interconnectors provided that the costs and the costs and risks of the costs and risks of the investment risks of the investment in question are investment in question are in question are particularly high particularly high when compared with the particularly high when when compared with the costs costs and risks normally incurred when compared with the costs and and risks normally incurred connecting two neighbouring national risks normally incurred when when connecting two transmission systems by an alternating connecting two neighbouring neighbouring national current interconnector. national transmission systems transmission systems by an

  by an alternating current alternating current interconnector. interconnector.

• 799. 

  3. Paragraph 1 shall also 3. Paragraph 1 shall also No change: apply to significant increases of apply to significant increases of . Paragraph 1 shall also apply to capacity in existing capacity in existing significant increases of capacity in existing interconnectors. interconnectors. interconnectors.

• 800. 

  4. The decision on the 4. The decision on the No change: exemption under paragraphs 1, exemption under paragraphs 1, 2 4. The decision on the exemption under 2 and 3 shall be taken on a and 3 shall be taken on a caseparagraphs 1, 2 and 3 shall be taken on a case-by-case basis by the by-case basis by the regulatory case-by-case basis by the regulatory regulatory authorities of the authorities of the Member States authorities of the Member States concerned. Member States concerned. An concerned. An exemption may An exemption may cover all or part of the exemption may cover all or part cover all or part of the capacity capacity of the new interconnector, or of the of the capacity of the new of the new interconnector, or of existing interconnector with significantly interconnector, or of the the existing interconnector with increased capacity existing interconnector with significantly increased capacity.

  significantly increased capacity.

ANNEX I TREE.2.B EN

• 801. 

  Within two months from the Within two months from the No change: date on which the request for date on which the request for Within two months from the date on which exemption was received by the exemption was received by the the request for exemption was received by last of the regulatory authorities last of the regulatory authorities the last of the regulatory authorities concerned, the Agency may concerned, the Agency may concerned, the Agency may submit an submit an advisory opinion to submit an advisory opinion to advisory opinion to those regulatory those regulatory authorities those regulatory authorities authorities which could provide a basis for which could provide a basis for which could provide a basis for their decision. their decision. their decision.

• 802. 

  In deciding to grant an In deciding to grant an No change: exemption, consideration shall exemption, consideration shall In deciding to grant an exemption, be given, on a case-by-case be given, on a case-by-case consideration shall be given, on a case-bybasis, to the need to impose basis, to the need to impose case basis, to the need to impose conditions conditions regarding the conditions regarding the regarding the duration of the exemption and duration of the exemption and duration of the exemption and non-discriminatory access to the non-discriminatory access to non-discriminatory access to the interconnector. When deciding those the interconnector. When interconnector. When deciding conditions, account shall, in particular, be deciding those conditions, those conditions, account shall, taken of additional capacity to be built or the account shall, in particular, be in particular, be taken of modification of existing capacity, the timetaken of additional capacity to additional capacity to be built or frame of the project and national be built or the modification of the modification of existing circumstances. existing capacity, the timecapacity, the time-frame of the

  frame of the project and project and national national circumstances. circumstances.

ANNEX I TREE.2.B EN

• 803. 

  Before granting an exemption, Before granting an exemption, No change: the regulatory authorities of the the regulatory authorities of the Before granting an exemption, the regulatory Member States concerned shall Member States concerned shall authorities of the Member States concerned decide upon the rules and decide upon the rules and shall decide upon the rules and mechanisms mechanisms for management mechanisms for management for management and allocation of capacity. and allocation of capacity. and allocation of capacity. Congestion-management rules shall include Congestion-management rules Congestion-management rules the obligation to offer unused capacity on the shall include the obligation to shall include the obligation to market and users of the facility shall be offer unused capacity on the offer unused capacity on the entitled to trade their contracted capacities market and users of the facility market and users of the facility on the secondary market. In the assessment shall be entitled to trade their shall be entitled to trade their of the criteria referred to in points (a), (b) contracted capacities on the contracted capacities on the and (f) of paragraph 1, the results of the secondary market. In the secondary market. In the capacity-allocation procedure shall be taken assessment of the criteria assessment of the criteria into account. referred to in points (a), (b) and referred to in points (a), (b) and

  (f) of paragraph 1, the results of (f) of paragraph 1, the results of the capacity-allocation the capacity-allocation procedure shall be taken into procedure shall be taken into account. account.

• 804. 

  Where all the regulatory Where all the regulatory No change: authorities concerned have authorities concerned have Where all the regulatory authorities reached agreement on the reached agreement on the concerned have reached agreement on the exemption decision within six exemption decision within six exemption decision within six months, they months, they shall inform the months, they shall inform the shall inform the Agency of that decision. Agency of that decision. Agency of that decision.

• 805. 

  The exemption decision, The exemption decision, No change: including any conditions including any conditions The exemption decision, including any referred to in the second referred to in the second conditions referred to in the second subparagraph of this paragraph, subparagraph of this paragraph, subparagraph of this paragraph, shall be duly shall be duly reasoned and shall be duly reasoned and reasoned and published. published. published.

ANNEX I TREE.2.B EN

• 806. 

  5. The decision referred to 5. The decision referred to in No change: in paragraph 4 shall be taken by paragraph 4 shall be taken by the 5. The decision referred to in paragraph 4 the Agency: Agency: shall be taken by the Agency:

• 807. 

  (a) where all the regulatory (a) where all the regulatory No change: authorities concerned have not authorities concerned have not (a) where all the regulatory authorities been able to reach an agreement been able to reach an agreement concerned have not been able to reach an within six months from the date within six months from the date agreement within six months from the date the exemption was requested the exemption was requested the exemption was requested before the last before the last of those before the last of those of those regulatory authorities; or regulatory authorities; or regulatory authorities; or

• 808. 

  (b) upon a joint request from (b) upon a joint request from No change: the regulatory authorities the regulatory authorities (b) upon a joint request from the concerned. concerned. regulatory authorities concerned. Before taking such a decision, Before taking such a decision, Before taking such a decision, the Agency the Agency shall consult the the Agency shall consult the shall consult the regulatory authorities regulatory authorities regulatory authorities concerned concerned and the applicants. concerned and the applicants. and the applicants.

• 809. 

  6. Notwithstanding 6. Notwithstanding No change: paragraphs 4 and 5, Member paragraphs 4 and 5, Member 6. Notwithstanding paragraphs 4 and 5, States may provide for the States may provide for the Member States may provide for the regulatory authority or the regulatory authority or the regulatory authority or the Agency, as the Agency, as the case may be, to Agency, as the case may be, to case may be, to submit, for formal decision, submit, for formal decision, to submit, for formal decision, to to the relevant body in the Member State, its the relevant body in the the relevant body in the Member opinion on the request for an exemption. Member State, its opinion on State, its opinion on the request That opinion shall be published together with the request for an exemption. for an exemption. That opinion the decision. That opinion shall be published shall be published together with

  together with the decision. the decision.

ANNEX I TREE.2.B EN

• 810. 

  7. A copy of every request 7. A copy of every request No change: for exemption shall be for exemption shall be 7. A copy of every request for exemption transmitted for information transmitted for information shall be transmitted for information without without delay by the regulatory without delay by the regulatory delay by the regulatory authorities to the authorities to the Agency and to authorities to the Agency and to Agency and to the Commission on receipt. the Commission on receipt. The the Commission on receipt. The The decision shall be notified, without delay, decision shall be notified, decision shall be notified, by the regulatory authorities concerned or by without delay, by the regulatory without delay, by the regulatory the Agency (notifying bodies), to the authorities concerned or by the authorities concerned or by the Commission, together with all the relevant Agency (notifying bodies), to Agency (notifying bodies), to information with respect to the decision. the Commission, together with the Commission, together with That information may be submitted to the all the relevant information all the relevant information with Commission in aggregate form, enabling the with respect to the decision. respect to the decision. That Commission to reach a well-founded That information may be information may be submitted to decision. In particular, the information shall submitted to the Commission in the Commission in aggregate contain:

  aggregate form, enabling the form, enabling the Commission Commission to reach a wellto reach a well-founded founded decision. In particular, decision. In particular, the the information shall contain: information shall contain:

ANNEX I TREE.2.B EN

• 811. 

  (a) the detailed reasons on (a) the detailed reasons on the No change: the basis of which the basis of which the exemption (a) the detailed reasons on the basis of exemption was granted or was granted or refused, which the exemption was granted or refused, refused, including the financial including the financial including the financial information justifying information justifying the need information justifying the need the need for the exemption; for the exemption; for the exemption;

• 812. 

  (b) the analysis undertaken (b) the analysis undertaken of No change: of the effect on competition and the effect on competition and the (b) the analysis undertaken of the effect the effective functioning of the effective functioning of the on competition and the effective functioning internal market in electricity internal market in electricity of the internal market in electricity resulting resulting from the grant of the resulting from the grant of the from the grant of the exemption; exemption; exemption;

• 813. 

  (c) the reasons for the time (c) the reasons for the time No change: period and the share of the total period and the share of the total (c) the reasons for the time period and the capacity of the interconnector capacity of the interconnector in share of the total capacity of the in question for which the question for which the interconnector in question for which the exemption is granted; and exemption is granted; and exemption is granted; and

• 814. 

  (d) the result of the (d) the result of the No change: consultation of the regulatory consultation of the regulatory (d) the result of the consultation of the authorities concerned. authorities concerned. regulatory authorities concerned.

ANNEX I TREE.2.B EN

• 815. 

  8. Within a period of 50 No change:

  working days from the day 8. Within a period of 50 8. Within a period of 50 working days

following receipt of notification working days from the day from the day following receipt of notification

under paragraph 7, the following receipt of notification under paragraph 7, the Commission may take

Commission may take a under paragraph 7, the

decision requesting the Commission may take a decision

a decision requesting the notifying bodies to

notifying bodies to amend or requesting the notifying bodies

amend or withdraw the decision to grant an

withdraw the decision to grant to amend or withdraw the

exemption. That period of 50 working days

an exemption. That period of 50 decision to grant an exemption.

may be extended by an additional period of

working days may be extended That period of 50 working days

50 working days where further information

by an additional period of 50 may be extended by an

is sought by the Commission. That additional

working days where further additional period of 50 working

period shall begin on the day following

information is sought by the days where further information

receipt of the complete information. The

Commission. That additional is sought by the Commission.

initial period may also be extended by

period shall begin on the day That additional period shall

consent of both the Commission and the

following receipt of the begin on the day following

notifying bodies

complete information. The receipt of the complete initial period may also be information. The initial period extended by consent of both the may also be extended by consent Commission and the notifying of both the Commission and the bodies. notifying bodies.

ANNEX I TREE.2.B EN

• 816. 

  When the requested information When the requested information No change: is not provided within the is not provided within the period When the requested information is not period set out in the request, the set out in the request, the provided within the period set out in the notification shall be deemed to notification shall be deemed to request, the notification shall be deemed to be withdrawn unless, before the be withdrawn unless, before the be withdrawn unless, before the expiry of expiry of that period, either the expiry of that period, either the that period, either the period is extended by period is extended by consent period is extended by consent of consent of both the Commission and the of both the Commission and the both the Commission and the notifying bodies, or the notifying bodies, in a notifying bodies, or the notifying bodies, or the notifying duly reasoned statement, inform the notifying bodies, in a duly bodies, in a duly reasoned Commission that they consider the reasoned statement, inform the statement, inform the notification to be complete. Commission that they consider Commission that they consider

  the notification to be complete. the notification to be complete. 817. The notifying bodies shall The notifying bodies shall No change:

  comply with a Commission comply with a Commission The notifying bodies shall comply with a decision to amend or withdraw decision to amend or withdraw Commission decision to amend or withdraw the exemption decision within the exemption decision within the exemption decision within one month one month and shall inform the one month and shall inform the and shall inform the Commission Commission accordingly. Commission accordingly. accordingly

• 818. 

  The Commission shall preserve The Commission shall preserve No change: the confidentiality of the confidentiality of The Commission shall preserve the commercially sensitive commercially sensitive confidentiality of commercially sensitive information. information. information.

• 819. 

  The Commission's approval of The Commission's approval of No change: an exemption decision shall an exemption decision shall The Commission's approval of an exemption expire two years after the date expire two years after the date of decision shall expire two years after the date of its adoption in the event that its adoption in the event that of its adoption in the event that construction construction of the construction of the of the interconnector has not yet started by interconnector has not yet interconnector has not yet that date, and five years after the date of its started by that date, and five started by that date, and five adoption if the interconnector has not years after the date of its years after the date of its become operational by that date, unless the adoption if the interconnector adoption if the interconnector Commission decides, on the basis of a has not become operational by has not become operational by reasoned request by the notifying bodies, that that date, unless the that date, unless the Commission any delay is due to major obstacles beyond Commission decides, on the decides, on the basis of a the control of the person to whom the

ANNEX I TREE.2.B EN

basis of a reasoned request by reasoned request by the exemption has been granted. the notifying bodies, that any notifying bodies, that any delay delay is due to major obstacles is due to major obstacles beyond beyond the control of the the control of the person to person to whom the exemption whom the exemption has been has been granted. granted.

• 820. 

  9. Where the regulatory 9. Where the regulatory authorities No change: authorities of the Member of the Member States concerned Where the regulatory authorities of the States concerned decide to decide to modify a decision Member States concerned decide to modify a modify a decision under under paragraph 1, they shall decision under paragraph 1, they shall notify paragraph 1, they shall notify notify this decision without this decision without delay to the this decision without delay to delay to the Commission, Commission, together with all the relevant the Commission, together with together with all the relevant information with respect to the decision. all the relevant information information with respect to the Paragraphs 1 to 8 shall apply to this notified with respect to the decision. decision. Paragraphs 1 to 8 shall decision, taking into account the Paragraphs 1 to 8 shall apply to apply to this notified decision, particularities of the existing exemption. this notified decision, taking taking into account the

  into account the particularities particularities of the existing of the existing exemption. exemption.

• 821. 

  10. The Commission may, 10. The Commission may, upon No change: upon request or on its own request or on its own initiative, The Commission may, upon request or on its initiative, reopen the reopen the proceedings: own initiative, reopen the proceedings: proceedings:

• 822. 

  (a) where, taking due (a) where, taking due No change: consideration of legitimate consideration of legitimate (a) where, taking due consideration of expectations by the parties and expectations by the parties and legitimate expectations by the parties and of of the economic balance of the economic balance the economic balance achieved in the achieved in the original achieved in the original original exemption decision, there has been a exemption decision, there has exemption decision, there has material change in any of the facts on which been a material change in any been a material change in any of the decision was based; of the facts on which the the facts on which the decision

  decision was based; was based;

ANNEX I TREE.2.B EN

• 823. 

  (b) where the undertakings (b) where the undertakings No change: concerned act contrary to their concerned act contrary to their (b) where the undertakings concerned act commitments; or commitments; or contrary to their commitments; or

• 824. 

  (c) where the decision was (c) where the decision was No change: based on incomplete, incorrect based on incomplete, incorrect (c) where the decision was based on or misleading information or misleading information incomplete, incorrect or misleading provided by the parties. provided by the parties. information provided by the parties.

• 825. 

  11. The Commission is 11. The Commission is No change: empowered to adopt delegated empowered to adopt delegated 11. The Commission is empowered to adopt acts in accordance with Article acts in accordance with Article delegated acts in accordance with Article 63 concerning the adoption of 63 concerning the adoption of 63 concerning the adoption of guidelines for guidelines for the application of guidelines for the application of the application of the conditions laid down in the conditions laid down in the conditions laid down in paragraph 1 of this Article and to set out the paragraph 1 of this Article and paragraph 1 of this Article and procedure to be followed for the application to set out the procedure to be to set out the procedure to be of paragraphs 4, 7, 8, 9 and 10 of this followed for the application of followed for the application of Article.

  paragraphs 4, 7 8, 9 and 10 of paragraphs 4, 7, 8, 9 and 10 of this Article. this Article.

• 826. 

  Article 59a (Article to be discussed)

  Derogations

• 827. 

  1. Member States may apply for derogations from the relevant provisions of Articles 3, 5, 6 (1), 7 (1) and (4), 8 to 10, 13 to 15, 17 to 22, 23 (1), (2), (4) (5) and (5a), 24, 32 to 44 and 48 in the following cases:

ANNEX I TREE.2.B EN

• 828. 

  (a) the Member State can demonstrate that there are

  substantial problems for the operation of their small isolated and connected systems. In this case, the derogation shall be limited in time and subject to conditions aiming at increased competition and integration with the internal market.

• 829. 

  (b) for outermost regions within the meaning of Article 349 of TFEU, that cannot be interconnected with the

  European energy market for evident physical reasons. In this case, the derogation is not limited in time.

• 830. 

  In both cases, the derogation shall be subject to conditions aimed at ensuring that the

  derogation does not hamper the transition towards renewable energies.

• 831. 

  When granting a derogation, the Commission shall reflect in its decision to which extent the derogations must take into

  account the application of the network codes and guidelines.

ANNEX I TREE.2.B EN

• 832. 

  If a derogation is granted, the

  Commission shall inform the Member States of those applications before taking a decision, taking into account respect for confidentiality.

• 833. 

  2. Articles 3, 4, 5, 6 (1),

  (2)(c), (2)(h), 7 to 10, 12 to 15, 17 to 22, 23 (1), (2), (5) and (5a), 23(4)(b), 24, 31(2), (3), 32 to 44, 46 and 48 shall not apply to Cyprus until its transmission system becomes connected to other Member States’ transmission systems via interconnections.

• 834. 

  If the transmission system of

  Cyprus is not connected to other Member States’ transmission systems via interconnections by 1 January 2026, Cyprus shall assess the need for derogation from those provisions and may submit a request for continued derogation to the Commission. The Commission shall assess whether the application of the respective provisions risks causing substantial problems for the operation of the electricity system in Cyprus or whether their application in Cyprus is expected to provide benefits to market functioning.

ANNEX I TREE.2.B EN

On the basis of this assessment, the Commission shall issue a reasoned decision on full or partial prolongation of the derogation which shall be published in the Official Journal of the European Union.

• 835. 

  3. The provisions of the

  Regulation shall not affect the application of the derogations pursuant to the [Electricity Directive].

835a. Council compromise proposal:

• 4. 

  In relation to the attainment of the 2030 interconnection target, as stipulated under the [Governance Regulation], the electricity link between Malta and Italy shall be duly taken into account.

ANNEX I TREE.2.B EN

• 836. 

  Article 60 Provision of information and confidentiality

• 837. 

  1. Member States and the 1. Member States and the No change: regulatory authorities shall, on regulatory authorities shall, on 1. Member States and the regulatory request, provide to the request, provide to the authorities shall, on request, provide to the Commission all information Commission all information Commission all information necessary for necessary for the purposes of necessary for the purposes of the purposes of enforcing the provisions of

  enforcing the provisions of this enforcing the provisions of this

  Regulation. Regulation. this Regulation.

• 838. 

  The Commission shall fix a The Commission shall fix a No change: reasonable time limit within reasonable time limit within The Commission shall fix a reasonable time which the information is to be which the information is to be limit within which the information is to be provided, taking into account provided, taking into account the provided, taking into account the complexity the complexity of the complexity of the information of the information required and the urgency

  information required and the required and the urgency with

  urgency with which the which the information is needed. with which the information is needed.

  information is needed. 839. 2. If the Member State or 2. If the Member State or the No change:

  the regulatory authority regulatory authority concerned 2. If the Member State or the regulatory concerned does not provide the does not provide the information authority concerned does not provide the information referred to in referred to in paragraph 1 within information referred to in paragraph 1 within paragraph 1 within the given the given time-limit pursuant to the given time-limit pursuant to paragraph 1,

  time-limit pursuant to paragraph 1, the Commission

  paragraph 1 , the Commission may request all information the Commission may request all information may request all information necessary for the purpose of necessary for the purpose of enforcing the necessary for the purpose of enforcing the provisions of this provisions of this Regulation directly from enforcing the provisions of this Regulation directly from the the undertakings concerned.

  Regulation directly from the undertakings concerned. undertakings concerned.

• 840. 

  When sending a request for When sending a request for No change: information to an undertaking, information to an undertaking, When sending a request for information to an the Commission shall at the the Commission shall at the undertaking, the Commission shall at the

  same time forward a copy of same time forward a copy of the same time forward a copy of the request to the request to the regulatory request to the regulatory the regulatory authorities of the Member

  authorities of the Member State authorities of the Member State

  in whose territory the seat of in whose territory the seat of the State in whose territory the seat of the the undertaking is situated. undertaking is situated. undertaking is situated.

ANNEX I TREE.2.B EN

• 841. 

  3. In its request for 3. In its request for No change: information under paragraph 1, information under paragraph 1, 3. In its request for information under the Commission shall state the the Commission shall state the paragraph 1, the Commission shall state the legal basis of the request, the legal basis of the request, the legal basis of the request, the time-limit time-limit within which the time-limit within which the within which the information is to be information is to be provided, information is to be provided, provided, the purpose of the request, and the the purpose of the request, and the purpose of the request, and penalties provided for in Article 61(2) for the penalties provided for in the penalties provided for in supplying incorrect, incomplete or Article 61(2) for supplying Article 61(2) for supplying misleading information. The Commission incorrect, incomplete or incorrect, incomplete or shall fix a reasonable time-limit taking into misleading information. The misleading information. The account the complexity of the information Commission shall fix a Commission shall fix a required and the urgency with which the reasonable time-limit taking reasonable time-limit taking into information is needed. into account the complexity of account the complexity of the

  the information required and information required and the the urgency with which the urgency with which the information is needed. information is needed.

• 842. 

  4. The owners of the 4. The owners of the No change: undertakings or their undertakings or their 4. The owners of the undertakings or representatives and, in the case representatives and, in the case their representatives and, in the case of legal of legal persons, the persons of legal persons, the persons persons, the persons authorised to represent authorised to represent them by authorised to represent them by them by law or by their instrument of law or by their instrument of law or by their instrument of incorporation, shall supply the information incorporation, shall supply the incorporation, shall supply the requested. Where lawyers duly authorised so information requested. Where information requested. Where to act supply the information on behalf of lawyers duly authorised so to lawyers duly authorised so to act their clients, the client shall remain fully act supply the information on supply the information on behalf responsible in the event that the information behalf of their clients, the client of their clients, the client shall supplied is incomplete, incorrect or shall remain fully responsible in remain fully responsible in the misleading. the event that the information event that the information

  supplied is incomplete, supplied is incomplete, incorrect incorrect or misleading. or misleading.

ANNEX I TREE.2.B EN

• 843. 

  5. Where an undertaking 5. Where an undertaking No change: does not provide the does not provide the information 5. Where an undertaking does not information requested within requested within the time-limit provide the information requested within the the time-limit fixed by the fixed by the Commission or time-limit fixed by the Commission or Commission or supplies supplies incomplete information, supplies incomplete information, the incomplete information, the the Commission may by Commission may by decision require the Commission may by decision decision require the information information to be provided. That decision require the information to be to be provided. That decision shall specify what information is required provided. That decision shall shall specify what information is and fix an appropriate time-limit within specify what information is required and fix an appropriate which it is to be supplied. It shall indicate the required and fix an appropriate time-limit within which it is to penalties provided for in Article 61(2). It time-limit within which it is to be supplied. It shall indicate the shall also indicate the right to have the be supplied. It shall indicate the penalties provided for in Article decision reviewed by the Court of Justice of penalties provided for in Article 61(2). It shall also indicate the the European Union. 61(2). It shall also indicate the right to have the decision

  right to have the decision reviewed by the Court of Justice reviewed by the Court of of the European Union. Justice of the European Union .

• 844. 

  The Commission shall, at the The Commission shall, at the No change: same time, send a copy of its same time, send a copy of its The Commission shall, at the same time, decision to the regulatory decision to the regulatory send a copy of its decision to the regulatory authorities of the Member State authorities of the Member State authorities of the Member State within the within the territory of which the within the territory of which the territory of which the person is resident or person is resident or the seat of person is resident or the seat of the seat of the undertaking is situated. the undertaking is situated. the undertaking is situated.

ANNEX I TREE.2.B EN

• 845. 

  6. The information referred 6. The information referred No change: to in paragraphs 1 and 2 shall to in paragraphs 1 and 2 shall be 6. The information referred to in be used only for the purposes of used only for the purposes of paragraphs 1 and 2 shall be used only for the enforcing the provisions of this enforcing the provisions of this purposes of enforcing the provisions of this Regulation. Regulation. Regulation.

• 846. 

  The Commission shall not The Commission shall not No change: disclose information of the kind disclose information of the kind The Commission shall not disclose covered by the obligation of covered by the obligation of information of the kind covered by the professional secrecy which is professional secrecy which is obligation of professional secrecy which is acquired pursuant to this acquired pursuant to this acquired pursuant to this Regulation. Regulation. Regulation.

• 847. 

  Article 61 Penalties

• 848. 

  1. Without prejudice to 1. Without prejudice to No change: paragraph 2, the Member States paragraph 2, the Member States 1. Without prejudice to paragraph 2, the shall lay down rules on shall lay down rules on penalties Member States shall lay down rules on penalties applicable to applicable to infringements of penalties applicable to infringements of the infringements of the provisions the provisions of this provisions of this Regulation, the network of this Regulation, the network Regulation, the network codes codes adopted pursuant to Article 55, and the codes adopted pursuant to adopted pursuant to Article 55, guidelines adopted pursuant to Article 57 Article 55, and the guidelines and the guidelines adopted and shall take all measures necessary to adopted pursuant to Article 57 pursuant to Article 57 and shall ensure that those provisions are and shall take all measures take all measures necessary to implemented. The penalties provided for necessary to ensure that those ensure that those provisions are must be effective, proportionate and provisions are implemented. implemented. The penalties dissuasive. The penalties provided for must provided for must be effective,

  be effective, proportionate and proportionate and dissuasive. dissuasive.

• 849. 

  2. The Commission may, by 2. The Commission may, by No change: decision, impose on decision, impose on 2. The Commission may, by decision, undertakings fines not undertakings fines not exceeding impose on undertakings fines not exceeding exceeding 1 % of the total 1 % of the total turnover in the 1 % of the total turnover in the preceding turnover in the preceding preceding business year where, business year where, intentionally or business year where, intentionally or negligently, they negligently, they supply incorrect, intentionally or negligently, supply incorrect, incomplete or incomplete or misleading information in

ANNEX I TREE.2.B EN

they supply incorrect, misleading information in response to a request made pursuant to incomplete or misleading response to a request made Article 60(3) or fail to supply information

information in response to a pursuant to Article 60(3) or fail within the time-limit fixed by a decision request made pursuant to to supply information within the adopted pursuant to the first subparagraph of

Article 60(3) or fail to supply time-limit fixed by a decision Article 60(5). In setting the amount of a fine, information within the timeadopted pursuant to the first the Commission shall have regard to the

limit fixed by a decision subparagraph of Article 60(5). In

adopted pursuant to the first setting the amount of a fine, the gravity of the failure to comply with the subparagraph of Article 60(5). Commission shall have regard to requirements of the first subparagraph.

In setting the amount of a fine, the gravity of the failure to the Commission shall have comply with the requirements of regard to the gravity of the the first subparagraph. failure to comply with the requirements of the first subparagraph.

• 850. 

  3. Penalties provided for 3. Penalties provided for No change: pursuant to paragraph 1 and pursuant to paragraph 1 and 3. Penalties provided for pursuant to decisions taken pursuant to decisions taken pursuant to paragraph 1 and decisions taken pursuant to paragraph 2 shall not be of a paragraph 2 shall not be of a paragraph 2 shall not be of a criminal law criminal law nature. criminal law nature. nature.

• 851. 

  Article 62 Committee procedure

• 852. 

  1. The Commission shall be 1. The Commission shall be No change: assisted by the committee set up assisted by the committee set up 1. The Commission shall be assisted by by Article 68 of [recast of by Article 68 of [recast of the committee set up by Article 68 of [recast Directive 2009/72/EC i as Directive 2009/72/EC i as of Directive 2009/72/EC i as proposed by proposed by COM(2016) proposed by COM(2016) 864 i/2]. COM(2016) 864 i/2].

  864/2].

ANNEX I TREE.2.B EN

• 853. 

  2. Where reference is made 2. Where reference is made No change: to this paragraph, Article 5 of to this paragraph, Article 5 of 2. Where reference is made to this Regulation (EU) No 182/2011 i Regulation (EU) No 182/2011 i of paragraph, Article 5 of Regulation (EU) No of the European Parliament and the European Parliament and of 182/2011 of the European Parliament and of of the Council 36 shall apply. the Council

  37 shall apply. the Council 38 shall apply.

• 854. 

  Article 63 Exercise of the delegation

• 855. 

  1. The power to adopt 1. The power to adopt No change: delegated acts is conferred on delegated acts is conferred on 1. The power to adopt delegated acts is the Commission subject to the the Commission subject to the conferred on the Commission subject to the conditions laid down in this conditions laid down in this conditions laid down in this Article. Article. Article.

• 856. 

  2. The power to adopt 2. The power to adopt To be discussed delegated acts referred to in delegated acts referred to in

  Article 31(3), Article 46(4), Article [ ] 46(4), [ ] and Article 55(1), Article 56(1) and Article 59(11) shall be conferred (4), and Article 59(11) shall be on the Commission for an conferred on the Commission undetermined period of time for an undetermined period of from the [OP: please insert the time from the [OP: please insert date of entry into force]. the date of entry into force].

36 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

37 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

38 Regulation (EU) No 182/2011 i of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

ANNEX I TREE.2.B EN

• 857. 

  3. The delegation of power 3. The delegation of power To be discussed referred to in Article 31(3), referred to in [ ] Article 46(4), [

  Article 46(4), Article 55(1), ] and Article 59(11) may be Article 56(1) and (4), and revoked at any time by the Article 59(11) may be revoked European Parliament or by the at any time by the European Council. A decision to revoke Parliament or by the Council. A shall put an end to the delegation decision to revoke shall put an of power specified in that end to the delegation of power decision. It shall take effect on specified in that decision. It the day following the shall take effect on the day publication of the decision in the following the publication of the Official Journal of the European decision in the Official Journal Union or at a later date specified of the European Union or at a therein. It shall not affect the later date specified therein. It validity of any [delegated] act shall not affect the validity of already in force. any delegated act already in force.

• 858. 

  4. Before adopting a 4. Before adopting a To be discussed delegated act, the Commission delegated act, the Commission

  shall consult experts designated shall consult Electricity Crossby each Member State in border Committee and experts accordance with the principles designated by each Member laid down in the State in accordance with the Interinstitutional Agreement on principles laid down in the Better Law-Making of 13 April Interinstitutional Agreement on 2016. Better Law-Making of 13 April 2016.

ANNEX I TREE.2.B EN

• 859. 

  5. As soon as it adopts a 5. As soon as it adopts a No change: delegated act, the Commission delegated act, the Commission 5. As soon as it adopts a delegated act, shall notify it simultaneously to shall notify it simultaneously to the Commission shall notify it the European Parliament and to the European Parliament and to simultaneously to the European Parliament the Council. the Council. and to the Council.

• 860. 

  6. A delegated act adopted 6. A delegated act adopted To be discussed pursuant to Article 31(3), pursuant to [ ] Article 46(4), [ ]

  Article 46(4), Article 55(1), and Article 59(11) shall enter Article 56(1) and (4), and into force only if no objection Article 59(11) shall enter into has been expressed either by the force only if no objection has European Parliament or by the been expressed either by the Council within a period of two European Parliament or by the months of notification of that act Council within a period of two to the European Parliament and months of notification of that the Council or if, before the act to the European Parliament expiry of that period, the and the Council or if, before the European Parliament and the expiry of that period, the Council have both informed the European Parliament and the Commission that they will not Council have both informed the object. That period shall be Commission that they will not extended by two months at the object. That period shall be initiative of the European extended by two months at the Parliament or of the Council. initiative of the European Parliament or of the Council.

ANNEX I TREE.2.B EN

• 861. 

  Article 64 Repeal

• 862. 

  Regulation (EC) No 1. Regulation (EC) No No change:

  714/2009 is repealed. 714/2009 is repealed. References to the repealed References to the repealed 1. Regulation (EC) No 714/2009 i is Regulation shall be construed Regulation shall be construed as repealed. References to the repealed as references to this Regulation references to this Regulation and Regulation shall be construed as references and shall be read in accordance shall be read in accordance with to this Regulation and shall be read in with the correlation table in the correlation table in Annex II. accordance with the correlation table in Annex II. Annex II.

• 863. 

  1a. Any implementing act To be discussed adopted on the basis of

  Regulation 714/2009 i shall continue to apply beyond the date of repeal of Regulation 714/2009 until it is repealed.

• 864. 

  AM 185 To be discussed

  Article 64 a (new) Article 64 a Review By 1 June 2025, the Commission shall review and submit a report on the implementation of this Regulation, together with a legislative proposal if appropriate, to the European Parliament and to the Council.

ANNEX I TREE.2.B EN

• 865. 

  Article 65 Entry into force

• 866. 

  This Regulation shall enter into This Regulation shall enter into To be discussed force on the twentieth day force on the twentieth day

  following that of its publication following that of its publication in the Official Journal of the in the Official Journal of the European Union. European Union. It shall apply from 1 January It shall apply from 1 January 2020. 2020.

  Articles 13 and 58a of this Regulation shall apply with effect from the date of entry into force of this Regulation.

  For the purpose of implementing Article 13, Article 14 of this Regulation shall apply with effect from the date of entry into force of this Regulation.

  For the purpose of reviewing this Regulation no later than by the end of 2030, the Commission shall, where appropriate, submit a proposal.

ANNEX I TREE.2.B EN

• 867. 

  This Regulation shall be This Regulation shall be binding This Regulation shall be binding in its binding in its entirety and in its entirety and directly entirety and directly applicable in all directly applicable in all applicable in all Member States. Member States.

  Member States.

• 868. 

  Done at Brussels, Done at Brussels, Done at Brussels,

  For the European Parliament For the European Parliament For the European Parliament The President The President The President For the Council For the Council For the Council The President The President The President

ANNEX I TREE.2.B EN

• 869. 

  ANNEX I

  AM 186 870. FUNCTIONS OF FUNCTIONS OF REGIONAL [ ] TASKS OF REGIONAL [ Provisionally agreed:

  REGIONAL COORDINATION CENTRES ]SECURITY TASKS OF REGIONAL OPERATIONAL CENTRES COORDINATORS COORDINATION CENTRES 871. 1. Coordinated capacity 1. Coordinated capacity 1. Coordinated capacity Provisionally agreed:

  calculation calculation calculation 1. Coordinated capacity calculation 872. 1.1. Regional operational 1.1. Regional coordination 1.1 Regional [ ] security Provisionally agreed:

  centres shall perform centres shall perform coordinated coordinators shall perform the 1.1 Regional Coordination Centres shall coordinated calculation of cross calculation of cross zonal coordinated calculation of cross perform the coordinated calculation of cross zonal capacities. capacities. zonal capacities. zonal capacities.

• 873. 

  1.2. Coordinated capacity [ ] Coordinated capacity Provisionally agreed: calculation shall be performed calculation shall be performed [ [ ] Coordinated capacity calculation shall in due time for each market ] for [ ] the day-ahead and be performed [ ] for [ ] the day-ahead and timeframe and as frequently as intraday timeframes. intraday timeframes. needed during the intraday

  timeframe. 874. 1.2a Coordinated capacity Provisionally agreed:

  calculation shall be performed (Without the agreement on the reference to on the basis of the the Guideline, which will be decided methodologies developed horizontally) pursuant to Articles 21, 26, 29 1.2a Coordinated capacity calculation and 30 of [Commission shall be performed on the basis of the Regulation 2015/1222 methodologies developed pursuant to [ ] establishing a guideline on the Guideline on capacity allocation and capacity allocation and congestion management adopted on the congestion management]. basis of Article 18 of Regulation 714/2009 i [ ]

ANNEX I TREE.2.B EN

• 875. 

  1.3. Coordinated capacity 1.3 Coordinated capacity Provisionally agreed: calculation shall be performed calculation shall be performed 1.3 Coordinated capacity calculation shall based on a common system based on a common [ ] grid be performed based on a common [ ] grid model in accordance with point model in accordance with point model in accordance with point 3 [ ]. 2 and on a coordinated capacity 3 [ ].

  calculation methodology developed by the transmission system operators of the relevant system operation region.

• 876. 

  1.4. Coordinated capacity 1.4 Coordinated capacity Provisionally agreed: calculation shall ensure calculation shall ensure an 1.4 Coordinated capacity calculation shall efficient congestion efficient congestion ensure an efficient congestion management management in accordance with management in accordance with in accordance with the principles of the principles of congestion the principles of congestion congestion management defined in this management defined in this management defined in this Regulation.

  Regulation. Regulation. 877. 2. Coordinated security 2. Coordinated security Provisionally agreed:

  analysis analysis 2. Coordinated security analysis 878. 2.1. Regional operational 2.1. Regional coordination 2.1. Regional [ ] security Provisionally agreed:

  centres shall perform centres shall perform coordinated coordinators shall perform 2.1. Regional Coordination Centres shall coordinated security analysis security analysis aiming at ensuring coordinated security analysis perform coordinated security analysis aiming aiming at ensuring secure secure system operation. aiming at ensuring secure at ensuring secure system operation. system operation. system operation.

• 879. 

  2.2. Security analysis shall be 2.2 Security analysis shall be Provisionally agreed: performed for all operational performed for all operational 2.2 Security analysis shall be performed planning timeframes using the planning timeframes, between for all operational planning timeframes, common system models. the year-ahead and intraday between the year-ahead and intraday timeframes, using the common timeframes, using the common [ ] grid [ ] grid models. models.

ANNEX I TREE.2.B EN

• 880. 

  2.2a Coordinated security Provisionally agreed: analysis shall be performed on (Without the agreement on the reference to the basis of the methodologies the Guideline, which will be decided developed pursuant to Articles horizontally)

  75 and 76 of Commission 2.2a Coordinated security analysis shall Regulation 2017/1485 be performed on the basis of the establishing a guideline on methodologies developed pursuant to the electricity transmission system System Operation Guideline adopted on operation. the basis of Article 18 of Regulation 714/2009 [ ].

• 881. 

  2.3. Regional operational 2.3. Regional coordination 2.3 Regional [ ] security Provisionally agreed: centres shall share the results of centres shall share the results of the coordinators shall share the 2.3 Regional Coordination Centres shall the coordinated security coordinated security analysis with results of the coordinated share the results of the coordinated security analysis with at least the at least the transmission system security analysis with at least the analysis with at least the transmission system transmission system operators operators of the system operation transmission system operators of operators of the system operation region. of the system operation region. region. the system operation region.

• 882. 

  2.4. When as a result of the 2.4. When as a result of the 2.4 When as a result of the Provisionally agreed: coordinated security analysis a coordinated security analysis a coordinated security analysis a 2.4 When as a result of the coordinated regional operational centre regional coordination centre regional [ ] security security analysis a Regional Coordination detects a possible constraint, it detects a possible constraint, it coordinator detects a possible Centre detects a possible constraint, it shall shall design remedial actions shall design remedial actions constraint, it shall design design remedial actions maximizing maximizing economic maximizing economic efficiency. remedial actions maximizing effectivenes and economic efficiency. efficiency. effectivenes and economic

  efficiency. 883. 2.4 a. Coordinated security Provisionally agreed to delete

  analysis shall be performed based [ ] on a common system model in accordance with point 2 and on a methodology to design coordinated remedial actions developed by the transmission system operators of the relevant system operation region.

ANNEX I TREE.2.B EN

• 884. 

  3. Creation of common 3. Creation of common [ ] Provisionally agreed: system models grid models 3. Creation of common [ ] grid models

• 885. 

  3.1. Regional operational 3.1. Regional coordination 3.1 Regional [ ] security Provisionally agreed: centres shall set up efficient centres shall set up efficient coordinators shall set up 3.1 Regional Coordination Centres shall processes for the creation of a processes for the creation of a efficient processes for the set up efficient processes for the creation of a common system model for each common system model for each creation of a common [ ] grid common [ ] grid model for each operational operational planning timeframe. operational planning timeframe. model for each operational planning timeframe between the yearplanning timeframe between the ahead and intraday timeframes. year-ahead and intraday

  timeframes. 886. 3.2. Transmission system 3.2. Transmission system 3.2 Transmission system Provisionally agreed:

  operators shall appoint one operators shall appoint one regional operators shall appoint one 3.2 Transmission system operators shall regional operational centre to coordination centre to build the regional [ ] security appoint one regional [ ] security build the common system common system model for all coordinator to build the Unioncoordinator to build the Union-wide model for all regions. regions. wide common [ ] grid models [ common [ ] grid models [ ]. ].

• 887. 

  3.2a Common grid models Provisionally agreed: shall be performed in (Without the agreement on the reference to accordance with the the Guideline, which will be decided methodologies developed horizontally)

  pursuant to Articles 67, 70 and 3.2a Common grid models shall be 79 of Commission Regulation performed in accordance with the 2017/1485 establishing a methodologies developed pursuant to the guideline on electricity System Operation Guideline and [ ] the transmission system operation capacity allocation and congestion and pursuant to Article 28 of management guideline adopted on the Commission Regulation basis of Article 18 of Regulation 2015/1222 establishing a 714/2009.] guideline on capacity allocation and congestion management.

ANNEX I TREE.2.B EN

• 888. 

  3.3. Common system models 3.3 Common [ ] grid models Provisionally agreed: shall include relevant data for shall include relevant data for 3.3 Common [ ] grid models shall efficient operational planning efficient operational planning include relevant data for efficient operational and capacity calculation in all and capacity calculation in all planning and capacity calculation in all operational planning operational planning operational planning timeframes between timeframes. timeframes between the yearthe year-ahead and intraday timeframes. ahead and intraday

  timeframes. 889. 3.4. Common system models 3.4. Common system models 3.4 Common [ ] grid models Provisionally agreed:

  shall be made available to all shall be made available to all shall be made available to all 3.4 Common [ ] grid models shall be regional operational centres, regional coordination centres, regional [ ] security made available to all Regional Coordination transmission system operators, transmission system operators, coordinators, transmission Centres, transmission system operators, ENTSO for Electricity and the ENTSO for Electricity and the system operators, ENTSO for ENTSO for Electricity and the Agency, upon Agency, upon its request. Agency, upon its request. Electricity and the Agency, upon its request. its request.

• 890. 

  4. Consistency assessment 4. Support to the Provisionally agreed: of transmission system consistency assessment of 4. Support to the consistency operators' defense plans and transmission system operators' assessment of transmission system restoration plans defense plans and restoration operators' defense plans and restoration plans plans

ANNEX I TREE.2.B EN

• 891. 

  4.1a Regional security Provisionally agreed: coordinators shall support the (Without the agreement on the reference to transmission system operators the Guideline, which will be decided of the system operation region horizontally)

in carrying out the consistency 4.1a Regional Coordination Centres shall assessment of transmission support the transmission system operators

system operators' defense of the system operation region in carrying plans and restoration plans out the consistency assessment of pursuant to the procedures set transmission system operators' defense out in Article 6 of plans and restoration plans pursuant to [Commission Regulation the procedures set out in [ ] the network xxxx/xxxx establishing a code on electricity emergency and network code on electricity restoration adopted in accordance with emergency and restoration]. Article 6 of Regulation 714/2009 i].

• 892. 

  4.1. All transmission system 4.1 All transmission system No change: operators shall agree on a operators shall agree on a 4.1 All transmission system operators threshold above which the threshold above which the shall agree on a threshold above which the impact of actions of one or impact of actions of one or more impact of actions of one or more more transmission system transmission system operators in transmission system operators in the operators in the emergency, the emergency, blackout or emergency, blackout or restoration states is blackout or restoration states is restoration states is considered considered significant for other transmission considered significant for other significant for other transmission system operators synchronously or nontransmission system operators system operators synchronously synchronously interconnected. synchronously or nonor non- synchronously

  synchronously interconnected. interconnected.

ANNEX I TREE.2.B EN

• 893. 

  4.2. Using the threshold 4.2. Using the threshold defined [ ] Provisionally agreed to delete. Same as line defined pursuant to point 4.1, pursuant to point 4.1, each regional 891.

  each regional operational centre coordination centre shall provide [ ] shall provide support to the support to the transmission system transmission system operators operators of the system operation of the system operation region region regarding the assessment of regarding the assessment of the the consistency of its transmission consistency of its transmission system operators’ system defence system operators’ system plans and the restoration plans. defence plans and the restoration plans.

• 894. 

  4.3. In providing support to 4.3. In providing support to the 4.3 In providing support to Provisionally agreed: the transmission system transmission system operators, the the transmission system 4.3 In providing support to the operators, the regional regional coordination centre shall: operators, the regional [ ] transmission system operators, the Regional operational centre shall: security coordinator shall: Coordination Centre shall:

• 895. 

  (a) identify potential (a)identify No change incompatibilities; potential (a)identify potential incompatibilities; incompatibilities;

• 896. 

  (b) propose mitigation (b) propose mitigation No change actions. actions. (b) propose mitigation actions.

• 897. 

  4.4. Transmission system 4.4 Transmission system Provisionally agreed: operators shall take into operators shall assess and take 4.4 Transmission system operators shall account the proposed mitigation into account the proposed assess and take into account the proposed actions. mitigation actions. mitigation actions.

• 898. 

  5. Coordination and 5. (8 in GA) Support the Provisionally agreed: optimization of regional coordination and optimization 5. (8 in GA) Support the coordination restoration of regional restoration and optimization of regional restoration

• 899. 

  5.1. Regional operational deleted [ ] Provisionally agreed to delete centres shall be equipped with

  the close to real time supervisory control and data acquisition systems with the observability defined by applying the threshold defined in accordance with point 4.1.

ANNEX I TREE.2.B EN

• 900. 

  5.2. Each relevant regional 5.2. Each relevant regional 5.2 (8.2 IN GA) Each relevant Provisionally agreed: operational centre shall provide coordination centre shall provide regional [ ] security (Without the agreement on the reference to

  assistance to the appointed assistance to the appointed coordinator shall [ ] support the network code, which will be decided frequency leaders and the frequency leaders and the the transmission system horizontally) resynchronisation leaders resynchronisation leaders aiming at operators appointed as [ ] .2 (8.2 IN GA) Each relevant [regional aiming at improving the improving the efficiency and frequency leaders and the security coordinator] shall [ ] support the efficiency and effectiveness of effectiveness of system restoration. resynchronisation leaders transmission system operators appointed system restoration. Transmission system operators pursuant to Articles 29 and 33 as [ ] frequency leaders and the Transmission system operators shall be entitled to request of Commission Regulation resynchronisation leaders pursuant to [ ] shall be entitled to request assistance from regional xxxx/xxxx establishing a the network code on emergency and assistance from regional coordination centres if their system network code on emergency restoration [ ] adopted in accordance with operational centres if their is in a blackout or restoration state. and restoration [aiming at Article 7 of Regulation 714/2009 i ]to system is in a blackout or improving] to improve the improve the efficiency and effectiveness of restoration state. efficiency and effectiveness of system restoration. The transmission system restoration. The system operators of the system operation transmission system operators region shall define the role of the Regional of the system operation region Coordination Centre relating to the shall define the role of the support to the coordination and regional security coordinator optimisation of regional restoration.

  relating to the support to the coordination and optimisation of regional restoration.

ANNEX I TREE.2.B EN

• 901. 

  8.3 in GA (ex last sentence of Provisionally agreed:

  5.2) Transmission system 8.3 in GA (ex last sentence of 5.2) operators [ ] may [ ] request Transmission system operators [ ] may [ ] assistance from regional [ ] request assistance from Regional security coordinators if their Coordination Centres if their system is in a system is in a blackout or blackout or restoration state. restoration state.

• 902. 

  8.4 in GA Regional security Provisionally agreed: coordinators shall be equipped 8.4 in GA Regional security coordinators with the close to real time shall be equipped with the close to real supervisory control and data time supervisory control and data acquisition systems with the acquisition systems with the observability observability defined by defined by applying the threshold defined applying the threshold defined in accordance with point 4.1. in accordance with point 4.1.

• 903. 

  6. Post-operation and 6. (9 in GA) Post-operation Provisionally agreed: post-disturbances analysis and post-disturbances analysis 6. (9 in GA) Post-operation and postand reporting and reporting disturbances analysis and reporting

• 904. 

  6.1. Regional operational 6.1. Regional coordination 6.1 (9.1 in GA) Regional [ ] Provisionally agreed: centres shall investigate and centres shall investigate and security coordinators shall [ ] 6.1 (9.1 in GA) Regional Coordination prepare a report on any incident prepare a report on any incident prepare a report on any incident Centres shall investigate and prepare a above the threshold defined in above the threshold defined in above the threshold defined in report on any incident above the threshold accordance with point 4.1. The accordance with point 4.1. The accordance with point 4.1. The defined in accordance with point 4.1. The regulatory authorities of the regulatory authorities of the system regulatory authorities of the regulatory authorities of the system operation system operation region and the operation region and the Agency system operation region and the region and the Agency may be involved in Agency may be involved in the may be involved in the Agency may be involved in the the investigation upon their request. The investigation upon their request. investigation upon their request. investigation upon their request. report shall contain recommendations aiming The report shall contain The report shall contain The report shall contain at preventing similar incidents in future. recommendations aiming at recommendations aiming at recommendations aiming at

  preventing similar incidents in preventing similar incidents in preventing similar incidents in future. future. future.

ANNEX I TREE.2.B EN

• 905. 

  6.2. The report shall be made 6.2 (9.5 in GA) The report Provisionally agreed: available to all transmission shall be [ ] published. The 6.2 (9.5 in GA) The report shall be [ ] system operators, regulatory Agency may issue published. The Agency may issue authorities, the Commission recommendations aiming at recommendations aiming at preventing and the Agency. The Agency preventing similar incidents in similar incidents in future. may issue recommendations future.

  aiming at preventing similar incidents in future.

• 906. 

  7. Regional sizing of [ ] Provisionally agreed: reserve capacity 7. Regional sizing of reserve capacity

• 907. 

  7.1. Regional operational 7.1. Regional coordination Provisionally agreed: centres shall determine the centres shall determine the reserve 7.1. Regional Coordination Centres shall reserve capacity requirements capacity requirements for the [ ] calculate the reserve capacity for the system operation region. system operation region. The requirements for the system operation The determination of reserve determination of reserve capacity region. The determination of reserve capacity requirements shall: requirements shall: capacity requirements shall:

• 908. 

  (a) pursue the general Provisionally agreed: objective to maintain (a) pursue the general objective to operational security in the most maintain operational security in the most cost effective manner; cost effective manner;

• 909. 

  (b) be performed at the day Provisionally agreed: ahead and/or intraday (b) be performed at the day-ahead and/or timeframe; intraday timeframe;

• 910. 

  (c) determine the overall Provisionally agreed: amount of required reserve (c) [ ] calculate the overall amount of capacity for the system required reserve capacity for the system operation region; operation region;

ANNEX I TREE.2.B EN

• 911. 

  (d) define minimum reserve Provisionally agreed: capacity requirements for each (d) define minimum reserve capacity type of reserve capacity; requirements for each type of reserve capacity;

• 912. 

  (e) take into account possible Provisionally agreed: substitutions between different (e) take into account possible types of reserve capacity with substitutions between different types of the aim to minimise the costs of reserve capacity with the aim to minimise the procurement; costs of procurement;

• 913. 

  (f) set out the necessary Provisionally agreed: requirements for the (f) set out the necessary requirements for geographical distribution of the geographical distribution of required required reserve capacity, if reserve capacity, if any. any.

• 914. 

  8. Facilitation of the [ ] Provisionally agreed: regional procurement of 8. Facilitation of the regional balancing capacity procurement of balancing capacity

• 915. 

  8.1. Regional operational 8.1. Regional coordination Provisionally agreed: centres shall support the centres shall support the 8.1.Regional Coordination Centres shall transmission system operators transmission system operators of support the transmission system operators of of the system operation region the system operation region in the system operation region in determining in determining the amount of determining the amount of the amount of balancing capacity that needs balancing capacity that needs to balancing capacity that needs to be to be procured. The determination of the be procured. The determination procured. The determination of the amount of balancing capacity shall of the amount of balancing amount of balancing capacity shall:

  capacity shall: 916. (a) be performed at the day Provisionally agreed:

  ahead and/or intraday (a) be performed at the day-ahead and/or timeframe; intraday timeframe;

• 917. 

  (b) take into account possible Provisionally agreed: substitutions between different (b) take into account possible types of reserve capacity with substitutions between different types of the aim to minimise the costs of reserve capacity with the aim to minimise the procurement; costs of procurement;

ANNEX I TREE.2.B EN

• 918. 

  (c) take into account the Provisionally agreed: volumes of required reserve (c) take into account the volumes of capacity that are expected to be required reserve capacity that are expected to provided by balancing energy be provided by balancing energy bids, which bids, which are not submitted are not submitted based on a contract for based on a contract for balancing capacity.

  balancing capacity. 919. (ca) take into account possible Provisionally agreed:

  substitutions between different [ ] types of reserve capacity with the (line 917 = 919) aim to minimise the costs of procurement.

• 920. 

  8.2. Regional operational deleted Provisionally agreed: centres shall support the 8.2. Regional operational centres shall transmission system operators support the transmission system operators of of the system operation region the system operation region in procuring the in procuring the required required amount of balancing capacity amount of balancing capacity determined in accordance with point 8.1. The determined in accordance with procurement of balancing capacity shall: point 8.1. The procurement of

  balancing capacity shall: 921. (a) be performed at the daydeleted Provisionally agreed:

  ahead and/or intraday (a) be performed at the day-ahead and/or timeframe; intraday timeframe;

• 922. 

  (b) take into account possible deleted Provisionally agreed: substitutions between different (b) take into account possible types of reserve capacity with substitutions between different types of the aim to minimise the costs of reserve capacity with the aim to minimise the procurement. costs of procurement.

ANNEX I TREE.2.B EN

• 923. 

  9. Regional system 9. (5 in GA) Week-ahead to Provisionally agreed: adequacy forecasts and day-ahead regional system 9. (5 in GA) Week-ahead to [daypreparation of risk reducing adequacy [ ] assessments and ahead/intraday] regional system adequacy actions preparation of risk reducing [ ] assessments and preparation of risk actions reducing actions

• 924. 

  9.1. Regional operational 9.1. Regional coordination 9.1 (5.1 in GA)Regional [ ] Provisionally agreed: centres shall perform week centres shall perform week ahead security coordinators shall Possibly to add 'intraday'. To be checked for ahead to intraday regional to intraday regional adequacy perform week ahead to [ ] daywith risk preparedness regulation in order to adequacy assessments. assessments. ahead regional adequacy ensure consistency.

  assessments in accordance with the procedures set out in 9.1 (5.1 in GA)Regional [ ] Coordination Article 81 of Commission Centres shall perform week ahead to [ ] Regulation 2017/1485 [day-ahead/intraday] regional adequacy establishing a guideline on assessments in accordance with the electricity system operation procedures set out in Article 81 of and on the basis of the Commission Regulation 2017/1485 methodology developed establishing a guideline on electricity pursuant Article 8 of [Risk system operation and on the basis of the preparedness Regulation]. methodology developed pursuant Article 8 of [Risk preparedness Regulation].

• 925. 

  9.2. Regional operational 9.2. Regional coordination 9.2 (5.2 in GA) Regional [ ] Provisionally agreed: centres shall base the adequacy centres shall base the adequacy security coordinators shall base 9.2 (5.2 in GA) Regional Coordination assessments on the information assessments on the information the short-term regional Centres shall base the short-term regional provided by the transmission provided by the transmission adequacy assessments on the adequacy assessments on the information system operators of system system operators of system information provided by the provided by the transmission system operation region with the aim of operation region with the aim of transmission system operators of operators of system operation region with the detecting situations where a detecting situations where a lack of system operation region with the aim of detecting situations where a lack of lack of adequacy is expected in adequacy is expected in any of the aim of detecting situations adequacy is expected in any of the control any of the control areas or at control areas or at regional level. where a lack of adequacy is areas or at regional level. Regional regional level. Regional Regional coordination centres expected in any of the control Coordination Centres shall take into operational centres shall take shall take into account possible areas or at regional level. account possible cross-zonal exchanges and into account possible crosscross-zonal exchanges and Regional [ ] security operational security limits in all relevant zonal exchanges and operational security limits in all coordinators shall take into operational planning timeframes. operational security limits in all operational planning timeframes. account possible cross-zonal

  operational planning exchanges and operational timeframes. security limits in all relevant operational planning timeframes.

ANNEX I TREE.2.B EN

• 926. 

  9.3. When performing a 9.3. When performing a regional 9.3 (5.3 in GA)When Provisionally agreed: regional generation adequacy generation adequacy assessment, performing a regional [ ] 9.3 (5.3 in GA)When performing a assessment, each regional each regional coordination centre system adequacy assessment, regional [ ] system adequacy assessment, operational centre shall shall coordinate with other regional each regional [ ] security each Regional Coordination Centre shall coordinate with other regional coordination centres to: coordinator shall coordinate coordinate with other Regional [ ] operational centres to: with other regional [ ] security Coordination Centres to: coordinators to:

• 927. 

  (a) verify the underlying (a) verify the underlying No change: assumptions and forecasts; assumptions and forecasts; (a) verify the underlying assumptions and forecasts;

• 928. 

  (b) detect possible cross(b) detect possible cross No change: regional lack of adequacy regional lack of adequacy (b) detect possible cross-regional lack of situations. situations. adequacy situations.

• 929. 

  9.4. Each regional operational 9.4. Each regional coordination 9.4 (5.4 in GA) Each regional Provisionally agreed: centre shall deliver the results centre shall deliver the results of [ ] security coordinator shall 9.4 (5.4 in GA) Each Regional of the regional generation the regional generation adequacy deliver the results of the regional Coordination Centre shall deliver the adequacy assessments together assessments together with the generation adequacy results of the regional generation adequacy with the actions it proposes to actions it proposes to reduce risks assessments together with the assessments together with the actions it reduce risks of lack of adequacy of lack of adequacy to the actions it proposes to reduce proposes to reduce risks of lack of adequacy to the transmission system transmission system operators of risks of lack of adequacy to the to the transmission system operators of the operators of the system the system operation region and to transmission system operators of system operation region and to other operation region and to other other regional coordination the system operation region and Regional Coordination Centres. regional operational centres. centres. to other regional [ ] security

  coordinators. 930. 10. Regional outage 10. (6 in GA) Regional Provisionally agreed:

  coordination outage planning coordination 10. (6 in GA) Regional outage planning coordination

• 931. 

  10.1. Each regional operational 10.1. Each regional coordination 10.1 (6.1 in GA) Each regional Provisionally agreed: centre shall perform outage centre shall perform outage security coordinator shall 10.1 (6.1 in GA) Each Regional coordination in order to monitor coordination in order to monitor perform regional outage Coordination Centre shall perform the availability status of the the availability status of the coordination in accordance regional outage coordination in accordance relevant assets and coordinate relevant assets and coordinate their with the procedures set out in with the procedures set out in [ ] [the their availability plans to ensure availability plans to ensure the Article 80 of Commission System Operation Guideline adopted on the operational security of the operational security of the Regulation 2017/1485 the basis of Article 18 of Regulation transmission system, while transmission system, while establishing a guideline on 714/2009] in order to monitor the availability

ANNEX I TREE.2.B EN

maximizing the capacity of the maximizing the capacity of the electricity transmission system status of the relevant assets and coordinate interconnectors and/or the interconnectors and/or the operation in order to monitor their availability plans to ensure the transmission systems affecting transmission systems affecting the availability status of the operational security of the transmission cross-zonal flows. cross-zonal flows. relevant assets and coordinate system, while maximizing the capacity of the their availability plans to ensure interconnectors and/or the transmission the operational security of the systems affecting cross-zonal flows. transmission system, while maximizing the capacity of the interconnectors and/or the transmission systems affecting cross-zonal flows.

• 932. 

  10.2. Each regional operational 10.2. Each regional coordination 10.2 (6.2 in GA) Each regional Provisionally agreed: centre shall maintain a single centre shall maintain a single list of [ ] security coordinator shall 10.2 (6.2 in GA) Each Regional list of relevant grid elements, relevant grid elements, power maintain a single list of relevant Coordination Centre shall maintain a single power generating modules and generating modules and demand grid elements, power generating list of relevant grid elements, power demand facilities of the system facilities of the system operation modules and demand facilities generating modules and demand facilities of operation region and make it region and make it available on the of the system operation region the system operation region and make it available on the ENTSO for ENTSO for Electricity operational and make it available on the available on the ENTSO for Electricity Electricity operational planning planning data environment. ENTSO for Electricity operational planning data environment. data environment. operational planning data

  environment. 933. 10.3. Each regional operational 10.3. Each regional coordination 10.3 (6.3 in GA) Each regional Provisionally agreed:

  centre shall carry out the centre shall carry out the following [ ] security coordinator shall 10.3 (6.3 in GA) Each Regional following activities related to activities related to outage carry out the following activities Coordination Centre shall carry out the outage coordination in the coordination in the system related to outage coordination in following activities related to outage system operation region: operation region: the system operation region: coordination in the system operation region:

• 934. 

  (a) assess outage planning (a) assess outage planning No change: compatibility using all compatibility using all (a) assess outage planning compatibility transmission system operators’ transmission system operators’ using all transmission system operators’ year-ahead availability plans; year-ahead availability plans; year-ahead availability plans;

• 935. 

  (b) provide the transmission (b) provide the transmission No change: system operators of the system system operators of the system (b) provide the transmission system operation region with a list of operation region with a list of operators of the system operation region with detected planning detected planning a list of detected planning incompatibilities incompatibilities and the incompatibilities and the and the solutions it proposes to solve the solutions it proposes to solve solutions it proposes to solve the incompatibilities. the incompatibilities. incompatibilities.

ANNEX I TREE.2.B EN

• 936. 

  11. Optimization of inter 11. (12 in GA) Optimization Provisionally agreed: transmission system of inter-transmission system 11. Optimisation of inter-transmission operators compensation operators compensation system operators'

  mechanisms mechanisms 937. 11.1. Regional operational 11.1. Regional coordination 11.1 (12.1 in GA) The Provisionally agreed:

  centres shall support the centres shall support the transmission system operators 11.1 (12.1 in GA) The transmission transmission system operators transmission system operators of of the system operation region system operators of the system operation of the system operation region the system operation region in may jointly decide to receive region may jointly decide to receive in administering the financial administering the financial flows support from the regional support from the Regional Coordination flows related to interrelated to inter- transmission security coordinator [ ] in Centre in administering the financial flows transmission system operators system operators settlements administering the financial flows related to inter-transmission system settlements involving more than involving more than two related to inter-transmission operators settlements involving more than two transmission system transmission system operators, system operators settlements two transmission system operators, such as operators, such as redispatching such as redispatching costs, involving more than two redispatching costs, congestion income, costs, congestion income, congestion income, unintentional transmission system operators, unintentional deviations or reserve unintentional deviations or deviations or reserve procurement such as redispatching costs, procurement costs. reserve procurement costs. costs. congestion income, unintentional deviations or reserve procurement costs.

• 938. 

  12. Training and 12. (7 in GA) Training and Provisionally agreed: certification certification of staff working 12. (7 in GA) Training and certification for regional security of staff working for Regional coordinators Coordination Centres

• 939. 

  12.1. Regional operational 12.1. Regional coordination 12.1. (7.1 in GA) Regional [ ] Provisionally agreed: centres shall prepare and centres shall prepare and execute security coordinators shall 12.1. (7.1 in GA) Regional Coordination execute training and training and certification programs prepare and execute training and Centres shall prepare and execute training certification programs focusing focusing on regional system certification programs focusing and certification programs focusing on on regional system operation operation for the personnel on regional system operation for regional system operation for the personnel for the personnel working in the working in the planning and the personnel working for working for Regional Coordination planning and control rooms of control rooms of the transmission regional security coordinators Centres.

  the transmission system system operators of system [ ] operators of system operation operation region. region.

ANNEX I TREE.2.B EN

• 940. 

  12.2. The training programs 12.2 (7.2 in GA) The training Provisionally agreed: shall cover all the relevant programs shall cover all the 12.2 (7.2 in GA) The training programs components of system relevant components of system shall cover all the relevant components of operation, including scenarios operation, where the regional system operation, where the Regional of regional crisis. security coordinator performs Coordination Centre performs tasks tasks including scenarios of including scenarios of regional crisis. regional crisis.

• 941. 

  13. Identification of 13. Identification of regional No change: regional crisis situations and crisis situations and 13. Identification of regional crisis preparation of risk mitigation preparation of risk mitigation situations and preparation of risk scenarios reviewing the risk scenarios reviewing the risk mitigation scenarios reviewing the risk preparedness plans as preparedness plans as preparedness plans as established in established in Member States established in Member States Member States

• 942. 

  13.1. If ENTSO for Electricity 13.1. If ENTSO for Electricity 13.1 If the ENTSO for Provisionally agreed: delegates this function, regional delegates this function, regional Electricity delegates this Lines 942 - 944 need to be checked for operational centres shall coordination centres shall identify function, regional [ ] security consistency with Risk Preparedness identify regional crisis regional crisis scenarios in coordinators shall identify Regulation.

  scenarios in accordance with accordance with the criteria set out regional crisis scenarios in the criteria set out in Article in Article 6(1) of [Risk accordance with the criteria set 13.1 If the ENTSO for Electricity delegates 6(1) of [Risk Preparedness Preparedness Regulation as out in Article 6(1) of [Risk this function, Regional Coordination Regulation as proposed by proposed by COM(2016) 862 i] Preparedness Regulation as Centres shall identify regional crisis COM(2016) 862 i] proposed by COM(2016) 862 i]. scenarios in accordance with the criteria set out in Article 6(1) of [Risk Preparedness Regulation as proposed by COM(2016) 862 i].

• 943. 

  The identification of regional Provisionally agreed: crisis scenarios shall be The identification of regional crisis performed in accordance with scenarios shall be performed in the methodology set out in accordance with the methodology set out Article 5 of the [Risk in Article 5 of the [Risk Preparedness Preparedness Regulation]. Regulation].

• 944. 

  13.2. Regional operational 13.2. Regional coordination 13.2 Regional [ ] security Provisionally agreed: centres shall prepare and carry centres shall prepare and carry out coordinators shall support the 13.2 Regional Coordination Centres shall out yearly crisis simulation in yearly crisis simulation in competent authorities of each support the competent authorities of each cooperation with competent cooperation with competent system operation region in the system operation region in the preparation authorities according to Article authorities according to Article preparation and carrying out of [ and carrying out of [ ] annual crisis

ANNEX I TREE.2.B EN

12(3) of [Risk Preparedness 12(3) of [Risk Preparedness ] annual crisis simulation [ ] in simulation [ ] in accordance with Article Regulation as proposed by Regulation as proposed by accordance with Article 12(3) 12(3) of [Risk Preparedness Regulation as COM(2016) 862 i]. COM(2016) 862 i]. of [Risk Preparedness proposed by COM(2016) 862 i]. Regulation as proposed by COM(2016) 862 i].

• 945. 

  13a. Identification of needs for Provisionally agreed: new capacity, for upgrade of 13a. Identification of needs for new existing capacity or their transmission capacity, for upgrade of alternatives. existing transmission capacity or their alternatives.

• 946. 

  13a.1. Regional coordination Provisionally agreed: centres shall support transmission 13a.1. Regional Coordination Centres shall system operators in the support transmission system operators in identification of needs for new the identification of needs for new capacity, for an upgrading of transmission capacity, for an upgrading of existing capacity or for their existing transmission capacity or for their alternatives, to be submitted to the alternatives, to be submitted to the regional regional groups established groups established pursuant to Regulation pursuant to Regulation (EU) No (EU) No 347/2013 and to be included in the 347/2013 and to be included in the ten-year network development plan referred ten-year network development to in Article 51 of [recast of Directive plan referred to in Article 51 of 2009/72/EC as proposed by COM(2016) [recast of Directive 2009/72/EC i as 864/2].

  proposed by COM(2016) 864 i/2] 947. The preparation of risk Provisionally agreed:

  mitigation scenarios shall be Line 947 need to be checked for consistency performed in accordance with with Risk Preparedness Regulation. the process set out in Article The preparation of risk mitigation 12 of the [Risk Preparedness scenarios shall be performed in Regulation]. accordance with the process set out in [ ] Article 12 of the [Risk Preparedness

  Regulation]. [ ]

ANNEX I TREE.2.B EN

• 948. 

  14. (10 in GA) Calculation To be discussed – check for consistency with of the maximum entry section on capacity mechanisms

  capacity available for the participation of foreign capacity in capacity mechanisms.

• 949. 

  14.1 (10.1 in GA) Regional To be discussed – check for consistency with security coordinators shall section on capacity mechanisms

  support TSO in calculating the maximum entry capacity available for the participation of foreign capacity in capacity mechanisms taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located.

• 950. 

  14.2 (10.2 in GA) The To be discussed – check for consistency with calculation shall be performed section on capacity mechanisms

  in accordance with the methodology set out in Article 21(10)(a) of this Regulation.

• 951. 

  14.3 (10.3 in GA) Regional To be discussed – check for consistency with security coordinators shall section on capacity mechanisms

  provide a calculation for each bidding zone border covered by the system operation region.

ANNEX I TREE.2.B EN

• 952. 

  15. (11 in GA) Preparation Provisionally agreed: of seasonal outlooks 15. (11 in GA) Preparation of seasonal outlooks

• 953. 

  15.1 (11.1 in GA) If the Provisionally agreed:

  ENTSO for Electricity 15.1 (11.1 in GA) If the ENTSO for delegates this function Electricity delegates this function pursuant to Article 9 of [Risk pursuant to Article 9 of [Risk preparedness Regulation], preparedness Regulation], Regional regional security coordinators Coordination Centres shall carry out shall carry out regional regional seasonal adequacy outlooks. seasonal adequacy outlooks.

• 954. 

  15.2 (11.2 in GA) The Provisionally agreed: preparation of seasonal 15.2 (11.2 in GA) The preparation of outlooks shall be carried out seasonal outlooks shall be carried out on on the basis of the the basis of the methodology developed methodology developed pursuant to Article 8 of [Risk pursuant to Article 8 of [Risk preparedness Regulation]. preparedness Regulation].

ANNEX I TREE.2.B EN

ANNEX II

Article 13 - Bidding zone review

(Consolidated compromise proposal)

• 1. 

  Member States shall take all appropriate measures to address congestions. Bidding zone borders

  shall be based on long-term, structural congestions in the transmission network [ ]. Bidding zones

  shall not contain such structural congestions unless they have no impact, or as a temporary

  exemption their impact on neighbouring bidding zones is mitigated through the use of remedial

  actions and they do not lead to reductions of cross zonal trading capacity in accordance with the requirements of Art 14. The configuration of the bidding zones in the Union shall be designed in

  such a way as to maximise economic efficiency and in order to maximise cross-border trading

  opportunities, while maintaining security of supply with due respect to the provisions in Article

  14.

• 2. 

  Every three years, the ENTSO for Electricity shall report on structural congestion and other major physical congestion between and within bidding zones, including location and frequency of such

  congestion in accordance with the capacity allocation and congestion management guideline adopted

  on the basis of Article 18 of Regulation (EU) 714/2009 i and an assessment of whether the cross-zonal

  trade capacity reached the minimum threshold pursuant to Article 14.

• 3. 

  In order to ensure an optimal bidding zone [ ] configuration [ ] a bidding zone review shall be carried out. That review shall identify all structural congestion and include analysis of [ ] different

  configurations of bidding zones in a coordinated manner with the involvement of affected stakeholders

  from all [ ] relevant Member States, following the process in accordance with [ ] the capacity

  allocation and congestion management guideline adopted on the basis of Article 18 of Regulation

  (EU) 714/2009. Current bidding zones shall be assessed based on their ability to create a reliable

  market environment, [ ] including for flexible generation and load capacity, which is crucial for

  avoiding grid bottlenecks, balancing electricity demand and supply, securing the long-term

  security of investments [ ] in network infrastructure.

  In this article and in article 13a, relevant Member States, transmission system operators or

  national regulatory authorities refer to those Member States, transmission system operators or

  national regulatory authorities participating in the review of the bidding zone configuration and

  also those in the same capacity calculation region pursuant to the capacity allocation and

  congestion management guideline adopted on the basis of Article 18 of Regulation (EU) 714/2009.

• 4. 

  By [3 months after the entry into force of this Regulation] all relevant transmission system

  operators shall submit a proposal [ ] for the methodology and assumptions that will be used in

  the review process as well as the alternative bidding zone configurations considered to the

  relevant national regulatory authorities for approval. The relevant national regulatory authorities shall come to a unanimous decision on the proposal within [3 months]. In case they

  do not agree within this time frame, the Agency shall, within three months, [ ] decide on the

  methodology and assumptions [ ] as well as the alternative bidding zone configurations considered.

  The methodology shall be based on structural congestions which are not expected to be

  overcome within the next [ ] three years, taking due account of tangible progress on

  infrastructure development projects, that are expected to be realised within the next [ ] three years.

• 5. 

  Based on the methodology and assumptions approved pursuant to paragraph 3, [T]the transmission

  system operators participating in the bidding zone review shall submit a joint proposal to the [ ]

  relevant Member States or designated competent authorities of the relevant Member States

  whether to amend or maintain the bidding zone configuration no later than 12 months after [ ] approval of the methodology pursuant to paragraph 4. Other Member States, Energy

  Community Contracting Parties or other third countries sharing the same synchronous area

  with any Member State may submit comments.

• 6. 

  Where structural congestion has been identified in the report pursuant to paragraph 2 or by one

  or more transmission system operators in their control areas in a report approved by the [ ]

  respective national regulatory authority or authorities [ ] the [ ] respective Member State in cooperation with their transmission system operators shall decide, within 6 months, to either

  define national or multinational action plans pursuant to Art 13a, or to review their bidding

  zone configuration. The decision shall be immediately notified to the Commission and the

  Agency.

• 7. 

  For those Member States that have opted for a proposal to amend the bidding zone configuration, the relevant Member States shall come to a unanimous decision within 6 months

  after the notification pursuant to paragraph 4. Other Member States may submit comments to

  the relevant Member States who should take account of these comments when coming to their

  decision. The decision shall be justified and notified to the Commission and the Agency. Should

  the relevant Member States fail to come to a unanimous decision within the allowed timeframe,

  they shall immediately notify the Commission. [ ] As a measure of last resort, the Commission after consultation with the Agency [ ] shall adopt a decision whether to amend or maintain the

  bidding zone configuration in and between those Member States [ ] by six months after

  receiving such a notification.

• 8. 

  Member States and the Commission shall consult relevant stakeholders before adopting a decision under this Article.

• 9. 

  [ ] Any decision adopted according to this Article shall specify the date of implementation of a

  change. That implementation date shall balance the need for expediency with practical considerations, including forward trade of electricity [ ] The [ ] decision may define appropriate transitional

  arrangements [ ].

• 10. 

  Where further bidding zone reviews are launched under [ ] the capacity allocation and congestion

  management guideline adopted on the basis of Article 18 of Regulation (EU) 714/2009 i this

  Article shall apply.

  Article 13a - Action plans (Consolidated compromise proposal)

• 1. 

  Following a decision pursuant to Article 13(6), the respective Member State or States shall

  develop action plans in cooperation with their national regulatory authority. These action plans

  shall contain a concrete timetable for adopting measures to reduce the structural congestions

  identified within the period of [no later than [4] years after the decision pursuant to Article 13(6) [ ]]

• 2. 

  Irrespective of the concrete progress of the action plan, Member States [ ] shall ensure that

  without prejudice to derogation under Article [ ] 14 (7b), the cross-border trade capacities are increased every year up to the benchmark level [ ] calculated in accordance with Article 14 (7),

  which is to be achieved by the end of 2025. The yearly increase shall be achieved by means of a linear trajectory. The starting of this trajectory shall be either the capacity allocated at this

  border in the year before adoption of the roadmap or the average of the three last years before

  the adoption of the roadmap, whatever is higher. [ ] For the period when a Member State is

  implementing an action plan, the Member State shall ensure that the capacity made available for cross-zonal trade to be compliant with Article 14 (7) is at least equal to the values of the

  trajectory, including by use of remedial actions in the capacity calculation region [ ].

• 3. 

  Costs of remedial actions required to follow the trajectory or make available cross-zonal

  capacity at the borders concerned by the action plan shall be borne by the Member State or

  Member States implementing the action plan.

• 4. 

  Yearly during the implementation of the action plan and within six months after the expiry of

  the action plan, the relevant transmission system operators [ ] shall [ ] assess whether the

  available cross-border capacity has reached the linear trajectory or, as of the end of 2025, the

  minimum level outlined in Article 14 (7) for the period of the last 12 months [ ] and report to

  relevant national regulatory authorities and the Agency. [This assessment [ ] shall be continuously

  reiterated every 24 months for the period of the last 24 months.] 5. For those Member States for which the assessment following paragraph 4 demonstrates that a

  transmission system operator has not been compliant with the level outlined in Article 14(7)

  linear trajectory [ ] the relevant Member States shall come to a unanimous decision within 6

  months from receiving the assessment referred in paragraph 4 on whether to maintain or amend the bidding zone configuration. Other Member States may submit comments to the relevant

  Member States who should take account of these comments when coming to their decision. The

  decision shall be justified and shall notified to the Commission and the Agency. Should the

  relevant Member States fail to come to a unanimous decision within the allowed timeframe, they

  shall immediately notify the Commission. [ ] As a measure of last resort, the Commission after

  consultation with the Agency and the relevant stakeholders shall adopt a decision whether to amend or maintain the bidding zone configuration in and between those Member States [ ], by

  six months after receiving of such a notification. [ ]

• 6. 

  Six months before the expiry of the action plan, Member States shall decide whether to amend

  their bidding zone to address remaining congestions or whether to address remaining internal congestions with remedial actions for which they shall cover the costs.

• 7. 

  Where a structural congestion has been identified pursuant to paragraph 4 but no action plan

  was defined within 6 months, the relevant transmission system operators shall within twelve

  months after a structural congestion has been identified assess [ ] whether the available crossborder

  capacity has reached the minimum level outlined in Article 14(7) for the period of the last 12 months and report to relevant national regulatory authorities and the Agency. For those

  Member States for which the assessment demonstrates that a transmission system operator has

  not been compliant with the minimum level, decision-making process in paragraph 5 applies.

  Article 18 a (new) (line 352 and following)

  General principles for capacity mechanisms

• 1. 

  To address residual concerns that [ ] may not be eliminated by the measures pursuant to Article

  18(3), Member States may, [ ] while implementing those measures and subject to this Article and to

  Union State aid rules, introduce capacity mechanisms.

• 2. 

  Before introducing capacity mechanisms under paragraph, as referred to in paragraph 1, Member

  States shall conduct a comprehensive study of their possible effects on the neighbouring Member States by consulting, at least, its electrically connected neighbouring Member States and the

  stakeholders of those Member States.

2a. Member States shall not introduce capacity mechanisms where both the European and the

national adequacy assessments, or in the absence of a national adequacy assessment, the European adequacy assessment have not identified a resource adequacy concern.

• 3. 

  Member States shall not introduce capacity mechanisms before the Agency has published its

  opinion as referred to in Article 18(3b).

[4. temporary, moved to Article 18b below]

• 5. 

  Where a Member State applies a capacity mechanism, it shall review that mechanism and shall

  provide that no new contracts are concluded under that mechanism where both the European

  and the national adequacy assessment, or in the absence of a national adequacy assessment, the

  European adequacy assessment have not identified a resource adequacy concern.

• 6. 

  When designing capacity mechanisms Member States shall include a provision allowing for an

  efficient administrative phase-out of the capacity mechanism in case no new contracts are

  concluded under paragraph 5 during [3] consecutive years.

  Article 18 b (new) (line 432 and following)

  Design principles for capacity mechanisms

• 1. 

  Any capacity mechanism shall:

  (a1) be temporary.

  (a) not create undue market distortions and not limit cross-zonal trade; (b) not go beyond what is necessary to address the adequacy concern;

  (c) select capacity providers by means of a transparent, non-discriminatory and competitive

  process; (e) provide incentives for capacity providers to be available in times of expected system stress;

  (f) ensure that the remuneration is determined through the competitive process;

  (g) set out the required technical conditions for the participation of capacity providers in advance

  of the selection process;

  (h) be open to participation of all resources, including storage and demand side management that are capable of providing the required technical performance;

  (i) apply appropriate penalties to capacity providers when not available in the event of system

  stress;

• 2. 

  Design principles for strategic reserves

  (a) (ex 2a.) When a capacity mechanism is designed as a strategic reserve, resources in the

  strategic reserve shall only be dispatched in case transmission system operators are likely

  to exhaust their balancing resources to establish an equilibrium between demand and

  supply.

  This requirement is without prejudice to activating resources ahead of actual dispatch in

  order to respect their ramping constraints and operating requirements. Energy from

  resources in reserve that is released during activation but before resources are being

  dispatched shall be re-dispatched to avoid market distortion. The output of the strategic

  reserve during activation shall not be attributed to balance groups through wholesale

  markets or shall not change their imbalances.

  (b) During imbalance settlement periods where resources in the strategic reserve were

  dispatched imbalances in the market shall be settled at least at the value of lost load /at a

  value higher than the intraday technical price limit maximum clearing price as referred in

  Article 9(1) of this Regulation, whichever higher. 54 of Regulation (EU) 2015/1222 [CACM]].

  (c) The output of the strategic reserve following dispatch shall be attributed to balance

  responsible parties through the imbalance settlement mechanism.

  (d) The resources taking part in the strategic reserve shall not get remunerated through wholesale electricity markets or balancing markets.

  (e) The [ ] resources taking part in the strategic reserve shall be held outside of the market at

  least for the duration of the contractual period.

• 3. 

  Design principles for other capacity mechanisms than strategic reserves

  3.1 In addition to the requirements laid down in paragraph 1, capacity mechanisms other than

  strategic reserves shall:

  (a) be constructed so as to ensure that the price paid for availability automatically tends to zero

  when the level of capacity supplied which would be profitable on the energy market without

  a capacity mechanism is expected to be adequate to meet the level of capacity demanded;

  (b) remunerate the participating resources merely for their availability and ensure that the remuneration does not affect decisions of the capacity provider whether or not to generate;

  (c) ensure that capacity obligations are transferable between eligible capacity providers.

  Consolidated version of merged article 38+39

  (590) Adoption and revision of coordinated actions and recommendations

• 1. 

  (591) [ ] The transmission system operators of a system operation region shall develop a

  procedure for the adoption and revision of coordinated actions and recommendations put forward

  by Regional Coordination Centres in accordance with the criteria set out in paragraphs 2 to 4.

• 2. 

  (592) Regional Coordination Centres shall [ ] issue [ ] coordinated actions addressed to the

  transmission system operators in respect of the [ ] tasks referred to in points (a), (b) [ ] of Article

  34(1). Transmission system operators shall implement the binding coordinated actions [ ] except [ ]

  where the implementation of the coordinated actions would result in a violation of the

  operational security limits defined by each transmission system operator [in accordance with [ ]

  the System Operation Guideline adopted on the basis of Article 18 of Regulation 714/2009 i].

  (ex para 2a of article 38) (593) Where [ ] a transmission system operator decides not to

  implement a coordinated action for the reasons set out in this paragraph [2], it shall

  transparently report the detailed reasons to the Regional Coordination Centre and the

  transmission system operators of the system operation region without undue delay. In such

  cases, the Regional Coordination Centre shall assess the impact on the other transmission system

  operators of the system operation region and may propose a different set of coordinated actions

  subject to a the procedure in this paragraph. in paragraph 2.

• 3. 

  (594) Regional Coordination Centres shall adopt issue recommendations addressed to the

  transmission system operators for the [ ] tasks listed in Article 34(1) which are not referred to in

  paragraph 2 of this Article. .

  (ex para 6 of article 39) (603) Where [ ] a transmission system operator decides to deviate from the

  recommendation, the transmission system operator shall submit a [ ] justification to the Regional

  Coordination Centres and to the other transmission system operators of the system operation region.

• 4. 

  (596) The revision of coordinated actions or a recommendation shall be triggered at the request of

  one or more of the transmission system operators of the system operation region. Following the revision of the coordinated action or recommendation, regional coordination centres shall confirm

  or modify the measure.

• 5. 

  (602) Where the measure subject to revision is a coordinated action in accordance with [Article

  38(2)], the request for revision shall not suspend the coordinated action except in cases [ ] where the

  implementation of the coordinated action would result in a violation of the operational security limits defined by each transmission system operator in accordance with the System Operation

  Guideline adopted on the basis of Article 18 of Regulation 714/2009 i.

• 6. 

  (ex para 4 of article 38) (598) (Council compromise proposal) Upon proposal of a regulatory

  authority or the Commission, following consultation with the Electricity Cross-Border

  Committee, transmission system operators and Regional Coordination Centre of the system operation region, the [ ] Member States of a system operation region may jointly decide to grant

  the competence for coordinated actions or binding decision-making powers to their [ ] Regional

  Coordination Centre for one or more of the [ ] tasks provided for in [ ] Article 34(1).