Chapter X, Article 78, Paragraph 1. · Directive (EU) 2024/1788

Contents

1.The regulatory authority shall have the following duties:

(a)fixing or approving, in accordance with transparent criteria, transmission, or distribution tariffs or their methodologies, or both;

(aa)monitoring the implementation of safeguards measures as referred to in Article 83;

(b)approving the joint scenarios for the ten-year network development plans in accordance with Article 55(2), point (f), where such approval is provided for by the Member State;

(bb)contributing to the compatibility of data exchange processes for the most important market processes at regional level;

(c)fixing or approving, in accordance with transparent criteria, tariffs for hydrogen network access or their methodologies, or both, without prejudice to Member States’ decisions pursuant to Article 35(4);

(cc)implementing the network codes and guidelines adopted pursuant to Articles 70 to 74 of Regulation (EU) 2024/1789 through national measures or, where so required, coordinated regional or Union-wide measures;

(d)fixing or approving, in accordance with transparent criteria:

(i)the size and duration of the dedicated charge and financial transfer or their methodologies, or both;

(ii)the value of transferred assets and the destination of any profits and losses that may occur as a result; and

(iii)the allocation of contributions to the dedicated charge;

(dd)ensuring an open, transparent, efficient and inclusive process for the setting up of the national ten-year network development plan in line with the requirements set out in Article 55, of the hydrogen distribution network development plan in line with the requirements set out in Article 56 and, where relevant, of the network decommissioning plan in line with the requirements set out in Article 57;

(e)ensuring compliance of transmission system operators and distribution system operators and, where relevant, system owners, as well as hydrogen network operators, any natural gas and hydrogen undertaking and other market participants with their obligations under this Directive and Regulation (EU) 2024/1789, the network codes and guidelines adopted pursuant to Articles 70, 71 and 72 of Regulation (EU) 2024/1789, Regulation (EU) 2017/1938 and other relevant Union law, including as regards cross-border issues, as well as ACER’s decisions;

(ee)approving and amending the network development plans referred to in Article 55 and, where relevant, in Article 57;

(f)in close coordination with the other regulatory authorities, ensuring the compliance of the ENTSO for Gas, the European entity for distribution system operators (the ‘EU DSO entity’) set up in accordance with Articles 52 to 57 of Regulation (EU) 2019/943 and the European Network of Network Operators for Hydrogen (the ‘ENNOH’) set out in accordance with Article 57 of Regulation (EU) 2024/1789 with their obligations under this Directive and Regulation (EU) 2024/1789, the network codes and guidelines adopted pursuant to Articles 70 to 74 of Regulation (EU) 2024/1789, and other relevant Union law, including as regards cross-border issues, as well as with ACER’s decisions, and jointly identifying non-compliance of the ENTSO for Gas, the EU DSO entity and the ENNOH with their respective obligations; where the regulatory authorities have not been able to reach an agreement within a period of four months after the start of consultations for the purpose of jointly identifying non-compliance, referring the matter to ACER for a decision, pursuant to Article 6(10) of Regulation (EU) 2019/942;

(ff)examining and, where applicable, requiring amendments to the hydrogen distribution network development plan referred to in Article 56(4), where such a task is provided for by the Member State pursuant to paragraph 6 of that Article;;

(g)monitoring the development of gas qualities and gas quality management by transmission system operators and where relevant by distribution system operators, including monitoring the development of costs related to the management of gas quality by system operators and the developments related to the blending and deblending of hydrogen into the natural gas system, by natural gas storage system operators and by LNG facility operators and, where a Member State has mandated another competent authority to collect information, that competent authority shall share the information with the regulatory authority;

(gg)setting up guidelines as referred to in Article 57(6) providing criteria and methodologies for a structural approach to the decommissioning of parts of the natural gas distribution network taking into account costs of decommissioning and the specific case of those assets that might require decommissioning before their originally projected life cycle and providing guidance as regards tariff setting in such cases;

(h)monitoring the development of hydrogen quality and hydrogen quality management by hydrogen network operators where relevant as referred to in Article 50, including monitoring the development of costs related to the management of hydrogen quality;

(hh)monitoring the availability of comparison websites, including comparison tools that fulfil the criteria in Article 14;

(i)taking into account the examination and assessment of the plans of the development of the hydrogen transport infrastructure submitted by hydrogen network operators pursuant to Articles 55 and 56 of this Directive when it approves the dedicated charges within the meaning of Article 5 of Regulation (EU) 2024/1789;

(ii)monitoring the removal of unjustified obstacles to and restrictions on the development of consumption of self-generated renewable natural gas;

(j)cooperating with regard to cross-border issues with the regulatory authority or authorities of the Member States concerned and with ACER, in particular through participation in the work of ACER’s Board of Regulators pursuant to Article 21 of Regulation (EU) 2019/942. In respect of infrastructure to and from a third country, the regulatory authority of the Member State where the first interconnection point with the Member States’ network is located may cooperate with the relevant authorities of the third country, including those of the Energy Community Contracting Parties, after consulting the regulatory authorities of other Member States concerned, with the aim of, as regards that infrastructure, consistent application of this Directive in the territory of the Member States;

(jj)carrying out any other duties conferred on the regulatory authority pursuant to this Directive and Regulation (EU) 2024/1789.

(k)complying with, and implementing, any relevant legally binding decisions of ACER and of the Commission;

(l)reporting annually on its activity and the fulfilment of its duties to the relevant authorities of the Member States, ACER and the Commission, covering the steps taken and the results obtained as regards each of the tasks listed in this Article;

(m)ensuring that there are no cross-subsidies between transmission, distribution, hydrogen transport, natural gas and hydrogen storage, LNG and hydrogen terminals and natural gas and hydrogen supply activities, without prejudice to Article 5(2) of Regulation (EU) 2024/1789;

(n)monitoring investment plans of the transmission system operators and hydrogen transmission network operators, providing in its annual report an assessment of the investment plans of the transmission system operators and hydrogen transmission network operators as regards their consistency with the Union-wide network development plans referred to in Articles 32 and 60 of Regulation (EU) 2024/1789, and including in those assessments recommendations to amend those investment plans;

(o)monitoring compliance with and reviewing the past performance of network security and reliability rules and setting or approving standards and requirements for quality of service and supply or contributing thereto together with other competent authorities;

(p)monitoring the level of transparency, including of wholesale prices, and ensuring compliance of natural gas and hydrogen undertakings with transparency obligations;

(q)monitoring the level and effectiveness of market opening and competition at wholesale and retail levels, including on natural gas and hydrogen exchanges, prices for household customers including prepayment systems, transparency of offers, price spikes and their impact on wholesale and consumer prices, the relationship between household prices and wholesale prices, switching rates, disconnection rates, charges for and the execution of maintenance services, complaints by household customers, and any distortion or restriction of competition, including providing any relevant information, and bringing any relevant cases to the attention of the relevant competition authorities, in particular with regard to vulnerable customers and customers who are affected by energy poverty;

(r)monitoring the occurrence of restrictive contractual practices, including exclusivity clauses, which may prevent large non-household customers from contracting simultaneously with more than one supplier or restrict their choice to do so, and, where appropriate, informing the national competition authorities of such practices;

(s)respecting contractual freedom with regard to long-term contracts provided that they comply with Union law, are consistent with Union policies and contribute to decarbonisation objectives, provided that no long-term contracts for supply of unabated fossil gas are concluded with a duration beyond 31 December 2049;

(t)monitoring the time taken by natural gas transmission and distribution system operators or hydrogen network operators to make connections and repairs, including network connection requests by biomethane production facilities;

(u)monitoring and reviewing the access conditions to natural gas storage, linepack and other ancillary services as provided for in Article 33 or 37, excluding, in the event that the access regime to natural gas storage is established pursuant to Article 33(3), the reviewing of tariffs;

(v)helping to ensure, together with other relevant authorities, that the consumer protection measures, including those set out in Annex I, are effective and enforced, and, in particular, assessing the existence of barriers for customers to exercise their rights such as switching, termination of contract, and access to out-of-court dispute settlement mechanisms;

(w)publishing recommendations, at least annually, in relation to compliance of supply prices with Article 7, and providing those to the competition authorities, where appropriate;

(x)ensuring non-discriminatory access to customer consumption data, the provision for optional use of an easily understandable harmonised format at national level for consumption data and prompt access for all customers to such data pursuant to Articles 23 and 24;

(y)monitoring the implementation of rules relating to the roles and responsibilities of transmission system operators, distribution system operators, hydrogen network operators, suppliers and customers and other market participants pursuant to Regulation (EU) 2024/1789;

(z)monitoring the correct application of the criteria that determine whether a natural gas storage facility falls under Article 33(3) or (4);

Defined terms · 76

Show every defined term

active customer
means a final customer of natural gas, or a group of jointly acting final customers of natural gas, that:
ancillary services
means all services necessary for access to and the operation of transmission networks, distribution networks, LNG facilities or natural gas storage facilities, including load balancing, blending and injection of inert gas, excluding facilities reserved exclusively for transmission system operators carrying out their functions;
balancing zone
means a system to which a specific balancing regime is applicable, that includes the transmission system and may include the whole or part of distribution systems;
best available techniques
means, in the context of data protection and security in a smart metering environment, the most effective, advanced and practically suitable techniques for providing, in principle, the basis for complying with the Union data protection and security rules;
billing information
means the information provided on a final customer’s bill, apart from a request for payment;
contract termination fee
means a charge or penalty imposed on customers by suppliers or market participants for terminating a gas supply or service contract;
control
means any rights, contracts or any other means which, either separately or in combination and having regard to the considerations of fact or law involved, confer the possibility of exercising decisive influence on an undertaking, in particular by:
conventional meter
means an analogue or electronic meter with no capability to both transmit and receive data;
customer
means a wholesale or final customer of natural gas or hydrogen or a natural gas or hydrogen undertaking which purchases natural gas or hydrogen;
direct line
means a natural gas pipeline complementary to the interconnected system;
distribution
means the transport of natural gas through local or regional pipeline networks with a view to its delivery to customers, excluding supply;
distribution system operator
means a natural or legal person that carries out the function of distribution of natural gas and is responsible for operating, ensuring the maintenance of and, if necessary, developing the distribution system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the distribution of natural gas;
energy efficiency first
means energy efficiency first as defined in Article 2, point (18), of Regulation (EU) 2018/1999;
energy poverty
means energy poverty as defined in Article 2, point (52), of Directive (EU) 2023/1791;
entry point
means a point subject to booking procedures by network users providing access to an entry-exit system;
entry-exit system
means an access model for natural gas or hydrogen where system users book capacity rights independently on entry and exit points, that includes the transmission system and may include the whole or part of the distribution system, or hydrogen networks;
exit point
means a point subject to booking procedures by network users enabling gas flows out of the entry-exit system;
final customer
means a customer purchasing natural gas or hydrogen for customer’s own use;
gas supply contract
means a contract for the supply of natural gas or hydrogen, excluding a natural gas derivative;
horizontally integrated undertaking
means an undertaking that performs at least one of the functions of production, transmission, distribution, supply or storage of natural gas, as well as a non-natural gas activity;
household customer
means a customer purchasing natural gas or hydrogen for customer’s own household consumption;
hydrogen distribution network
means a network of pipelines for the local or regional transport of hydrogen of a high grade of purity, which primarily serves the purpose of supplying directly connected customers and does not include hydrogen interconnectors, and which is not directly connected to hydrogen storage facilities or hydrogen terminals, unless the network in question was a natural gas distribution system on 4 August 2024 and has been partially or fully repurposed for the transport of hydrogen, or to two or more hydrogen interconnectors;
hydrogen distribution network operator
means a natural or legal person that is responsible for operating, ensuring the maintenance of and, if necessary, developing a hydrogen distribution network in a given area and, where applicable, its interconnections with other hydrogen networks, and for ensuring the long-term ability of the network to meet reasonable demands for hydrogen transport;
hydrogen interconnector
means a hydrogen network which crosses or spans a border between Member States for the purpose of connecting the national hydrogen networks of those Member States, or a hydrogen network between a Member State and a third country up to the territory of the Member States or the territorial sea of that Member State;
hydrogen linepack
means the storage of hydrogen of a high grade of purity by compression in hydrogen networks, excluding facilities reserved for hydrogen network operators carrying out their functions;
hydrogen network
means a network of onshore and offshore pipelines used for the transport of hydrogen of a high grade of purity with a view to its delivery to customers, excluding supply;
hydrogen network operator
means a natural or legal person that carries out the function of hydrogen transport and is responsible for operating, ensuring the maintenance of and, if necessary, developing the hydrogen network in a given area and, where applicable, its interconnections with other hydrogen networks, and for ensuring the long-term ability of the system to meet reasonable demands for the transport of hydrogen;
hydrogen quality
means hydrogen purity and contaminants in line with applicable hydrogen quality standards for the hydrogen system;
hydrogen storage facility
means a facility used for the stocking of hydrogen of a high grade of purity:
hydrogen storage operator
means a natural or legal person that carries out the function of storage of hydrogen and is responsible for operating a hydrogen storage facility;
hydrogen system
means a system of infrastructure, including hydrogen networks, hydrogen storage and hydrogen terminals, which contains hydrogen of a high grade of purity;
hydrogen terminal
means an installation used for the offloading and transformation of liquid hydrogen or liquid ammonia into gaseous hydrogen for injection into the hydrogen network or the natural gas system or the liquefaction of gaseous hydrogen and its onloading, including ancillary services and temporary storage necessary for the transformation process and subsequent injection into the hydrogen network, but not any part of the hydrogen terminal used for storage;
hydrogen terminal operator
means a natural or legal person that carries out the function of offloading and transformation of liquid hydrogen or liquid ammonia into gaseous hydrogen for injection into the hydrogen network or the natural gas system or the liquefaction and onloading of gaseous hydrogen and is responsible for operating a hydrogen terminal;
hydrogen transmission network
means a network of pipelines for the transport of hydrogen of a high grade of purity, in particular a network which includes hydrogen interconnectors or which is directly connected to hydrogen storage, hydrogen terminals or two or more hydrogen interconnectors or which primarily serves the purpose of transporting hydrogen to other hydrogen networks, hydrogen storage or hydrogen terminals, without excluding the possibility of such networks to serve the purpose of supplying directly connected customers;
hydrogen transmission network operator
means a natural or legal person that is responsible for operating, ensuring the maintenance of and, if necessary, developing a hydrogen transmission network in a given area and, where applicable, its interconnections with other hydrogen networks, and for ensuring the long-term ability of the network to meet reasonable demands for hydrogen transport;
hydrogen transport
means the transmission or distribution of hydrogen through a hydrogen network with a view to its delivery to customers, excluding supply;
hydrogen undertaking
means a natural or legal person that carries out at least one of the following functions: production, transport, supply, purchase or storage of hydrogen or operation of a hydrogen terminal, and that is responsible for the commercial, technical or maintenance tasks related to those functions, excluding final customers;
integrated natural gas undertaking
means a vertically or horizontally integrated undertaking;
interconnected system
means a number of systems which are linked with each other;
interconnection point
means a physical or virtual point connecting adjacent entry-exit systems or connecting an entry-exit system with an interconnector, in so far as such a point is subject to booking procedures by network users;
interconnector
means a transmission line which crosses or spans a border between Member States for the purpose of connecting the national transmission system of those Member States or a transmission line between a Member State and a third country up to the territory of the Member States or the territorial sea of that Member State;
interoperability
means, in the context of smart metering, the ability of two or more energy or communication networks, systems, devices, applications or components to interwork to exchange and use information in order to perform required functions;
long-term contract
means a gas supply contract exceeding one year;
low-carbon fuels
means recycled carbon fuels as defined in Article 2, point (35), of Directive (EU) 2018/2001, low-carbon hydrogen and synthetic gaseous and liquid fuels the energy content of which is derived from low-carbon hydrogen, that meet the greenhouse gas emission reduction threshold of 70 % compared to the fossil fuel comparator for renewable fuels of non-biological origin set out in the methodology adopted pursuant to Article 29a(3) of Directive (EU) 2018/2001;
low-carbon gas
means the part of gaseous fuels in recycled carbon fuels as defined in Article 2, point (35), of Directive (EU) 2018/2001, low-carbon hydrogen and synthetic gaseous fuels the energy content of which is derived from low-carbon hydrogen, that meet the greenhouse gas emission reduction threshold of 70 % compared to the fossil fuel comparator for renewable fuels of non-biological origin set out in the methodology adopted pursuant to Article 29a(3) of Directive (EU) 2018/2001;
low-carbon hydrogen
means hydrogen the energy content of which is derived from non-renewable sources, which meets the greenhouse gas emission reduction threshold of 70 % compared to the fossil fuel comparator for renewable fuels of non-biological origin set out in the methodology for assessing greenhouse gas emissions savings from renewable fuels of non-biological origin and from recycled carbon fuels, adopted pursuant to Article 29a(3) of Directive (EU) 2018/2001;
market participant
means a natural or legal person that buys, sells or produces natural gas or hydrogen or that is an operator of storage services including through the placing of orders to trade in one or more markets for natural gas or hydrogen including balancing markets;
medium-sized enterprise
means a microenterprise, a small enterprise or a medium-sized enterprise as defined in Article 2 of the Annex to Commission Recommendation 2003/361/EC;
most recent available
means, in the context of smart metering data, that it is provided within a period matching the shortest settlement period in the national market;
natural gas
means gas that primarily consists of methane, including biomethane, or other types of gas, that can technically and safely be injected into, and transported through, the natural gas system;
natural gas derivative
means a financial instrument specified in Section C, point 5, 6 or 7, of Annex I to Directive 2014/65/EU of the European Parliament and of the Council, where that financial instrument relates to natural gas;
natural gas linepack
means the storage of natural gas by compression in transmission and distribution systems, excluding facilities reserved for transmission system operators carrying out their functions;
natural gas storage facility
means a facility used for the stocking of natural gas and owned or operated by a natural gas undertaking, including the part of LNG facilities used for natural gas storage, excluding the portion used for production operations, and excluding facilities reserved exclusively for transmission system operators in carrying out their functions;
natural gas storage system operator
means a natural or legal person that carries out the function of storage of natural gas and is responsible for operating a natural gas storage facility;
natural gas system
means a system of infrastructure, including pipelines, liquefied natural gas (LNG) terminals and natural gas storage facilities, which transports natural gas;
natural gas undertaking
means a natural or legal person that carries out production, transmission, distribution, supply, purchase or storage of natural gas, including LNG, and which is responsible for the commercial, technical or maintenance tasks related to those functions, excluding final customers;
network user
means a customer or a potential customer of a system operator or a system operator itself in so far as it is necessary for that system operator to carry out its functions in relation to transport of natural gas or hydrogen;
non-household customer
means a customer purchasing natural gas or hydrogen which are not for his or her own household use;
related undertaking
means an affiliated undertaking as defined in Article 2, point (12), of Directive 2013/34/EU of the European Parliament and of the Council, or an undertaking which belongs to the same shareholders;
renewable gas
means biogas as defined in Article 2, point (28), of Directive (EU) 2018/2001including biogas that has been upgraded to biomethane, and renewable fuels of non-biological origin as defined in Article 2, point (36), of that Directive;
repurposing
means repurposing as defined in Article 2, point (18), of Regulation (EU) 2022/869 of the European Parliament and of the Council.
smart metering system
means an electronic system that is capable of measuring natural gas or hydrogen fed into the grid or natural gas or hydrogen consumed from the grid, providing more information than a conventional meter, and that is capable of transmitting and receiving data for information, monitoring and control purposes, using a form of electronic communication;
start of works
means either the start of construction works on the investment or the first firm commitment to order equipment or other commitment that makes the investment irreversible, whichever occurs first.
supplier of last resort
means a supplier who is designated to take over the supply of natural gas to customers of a supplier which has ceased to operate;
supply
means the sale, including resale, of natural gas, including LNG, or hydrogen, including in the form of liquid organic hydrogen carriers or liquid hydrogen and hydrogen derivatives including ammonia or methanol to customers;
supply undertaking
means any natural or legal person that carries out the function of supply;
switching-related fee
means a charge or penalty for changing suppliers or market participants, including contract termination fees, that is directly or indirectly imposed on customers by suppliers, market participants or system operators;
system
means any transmission networks, distribution networks, LNG facilities or natural gas storage facilities owned or operated by a natural gas undertaking, including linepack and its facilities supplying ancillary services and those of related undertakings necessary for providing access to transmission, distribution and LNG;
system user
means a natural or legal person supplying natural gas or hydrogen to, or being supplied by, the system;
transmission
means the transport of natural gas through a network, which mainly contains high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of natural gas, with a view to its delivery to customers, excluding supply;
transmission system operator
means a natural or legal person that carries out the function of transmission and is responsible for operating, ensuring the maintenance of and, if necessary, developing the transmission system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the transport of natural gas;
upstream pipeline network
means any pipeline or network of pipelines operated or constructed as part of an oil or natural gas production project, or used to convey natural gas from one or more such projects to a processing plant or terminal or final coastal landing terminal;
vertically integrated undertaking
means a natural gas undertaking or a group of natural gas undertakings or a hydrogen undertaking or group of hydrogen undertakings where the same person or the same persons are entitled, directly or indirectly, to exercise control, and where the undertaking or group of undertakings perform at least one of the functions of transmission, distribution, hydrogen transport, hydrogen terminal operation, LNG or natural gas or hydrogen storage, and at least one of the functions of production or supply of natural gas or of hydrogen;
virtual interconnection point
means two or more interconnection points which connect the same two adjacent entry-exit systems, integrated together for the purposes of providing a single-capacity service;
virtual trading point
means a non-physical commercial point within an entry-exit system where natural gas or hydrogen are exchanged between a seller and a buyer without the need to book capacity;
wholesale customer
means a natural or legal person other than a transmission system operator or distribution system operator who purchases natural gas or hydrogen for the purpose of resale inside or outside the system where the person is established;