1Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944 as regards improving the Union’s electricity market designText with EEA relevance.

(27) Consumers have the right to use complaint procedures managed by their suppliers as well as out-of-court dispute settlement procedures, in order to benefit from the effective enforcement of their rights and not to be disadvantaged in the case of disagreements with suppliers, in particular regarding bills or the amount due. Where customers use those procedures, suppliers should not terminate contracts on the basis of the facts which are still in dispute. Suppliers and customers should continue to meet their contractual rights and obligations, in particular to supply electricity and to pay for that electricity, and complaint procedures should not become the ground for abuses that allow customers not to honour their contractual obligations, including paying their bills. Member States should put in place appropriate measures to avoid that those complaint or out-of-court dispute settlement procedures are used in a distorted way.

(28) Public interventions in price setting for the supply of electricity would constitute, in principle, a market-distortive measure. Such interventions should therefore be carried out only where appropriate and as public service obligations and should be subject to specific conditions. Under this Directive, regulated prices are possible for vulnerable customers and customers affected by energy poverty, including below costs, and, as a transition measure, for household customers and microenterprises whether or not there is an electricity price crisis. During an electricity price crisis, when wholesale and retail electricity prices increase significantly, Member States should be allowed to temporarily extend the application of regulated prices to small enterprises and medium-sized enterprises. As regards household customers and small enterprises and medium-sized enterprises, Member States should, exceptionally and temporarily, be allowed to set regulated prices below cost during an electricity price crisis provided that this does not

create distortions between suppliers and that suppliers are compensated for the costs of supplying below cost. However, it is necessary to ensure that such price regulation is targeted and does not create incentives to increase consumption. Therefore, such exceptional and temporary extension of price regulation should be limited to 80 % of median household consumption for household customers and to 70 % of the previous year’s consumption for small enterprises and medium-sized enterprises. The Council should be able, acting on a proposal from the Commission, by means of an implementing decision, to declare a regional or Union-wide electricity price crisis. The assessment of whether such an electricity price crisis exists should be based on a comparison with prices in times of normal market operation and therefore should exclude the impact of previous electricity price crises declared pursuant to this Directive. Such implementing decision should also specify the period of validity of the declaration of an electricity price crisis, during which the temporary extension of regulated prices applies. That period should not be longer than one year. Where the conditions for that electricity price crisis declaration continue to be fulfilled, it should be possible for the Council, acting on a proposal from the Commission, to extend the period of validity of the implementing decision. The conferral of implementing powers on the Council is justified given the significant horizontal implications for Member States of a decision declaring an electricity price crisis and thereby to trigger the extended possibilities for public interventions in price setting for the supply of electricity. Such implications are significant in terms both of the number of customers concerned and of the importance of the categories of such customers. The conferral of implementing powers on the Council also adequately takes into account the political nature of such a decision declaring an electricity price crisis, which requires a delicate balancing of different policy considerations central to Member States’ decision to implement price-setting for energy. In the case of vulnerable customers and customers affected by energy poverty, the price regulation applied by Member States could cover 100 % of the price in accordance with Article 5 of Directive (EU) 2019/944. In any event, the declaration of a regional or Union-wide electricity price crisis should ensure a level playing field across all Member States affected by the decision so that the internal market is not unduly distorted.

(29) Member States should be able to provide support, in compliance with Articles 107 and 108 TFEU, for additional electricity costs of industrial customers in times of electricity crisis and exceptionally severe increases of prices.

(30) Since Estonia, Latvia and Lithuania are not yet synchronised with the Union electricity system, they face very specific challenges when organising balancing markets and the market-based procurement of ancillary services. While progress towards synchronisation is ongoing, one of the critical prerequisites for stable synchronous system operation is the availability of sufficient balancing capacity reserves for frequency regulation. However, being dependent on the Russian synchronous area for frequency management, the Baltic States were not yet in the position to develop their own functioning balancing market. The Russian war of aggression against Ukraine has substantially increased the risk for security of supply resulting from the absence of own balancing markets. Estonia, Latvia and Lithuania should therefore be exempt from the requirements of certain provisions of Article 40(4) and Article 54(2) of Directive (EU) 2019/944 insofar as that is necessary to ensure system security for a transitional period. The transitional periods for Estonia, Latvia and Lithuania should be phased out as soon as possible after the synchronisation, and should be used to develop the appropriate market instruments that offer short-term balancing reserves and other indispensable ancillary services, and should be limited to the time necessary for that process.

(31) Considering that the Cypriot transmission system is not connected to that of any other Member State, Cyprus faces very specific challenges when organising balancing markets and the market-based procurement of ancillary services. Cyprus should therefore be exempt from the requirements of Article 40(4) and Article 54(2) of Directive (EU) 2019/944 insofar as that is necessary to ensure system security for a transitional period, namely until the Cypriot transmission system is connected to that of other Member States via interconnectors.

(32) This Directive establishes a legal basis for the processing of personal data in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council

Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

. Member States should ensure that all principles and obligations relating to processing of personal data laid down in Regulation (EU) 2016/679 are met, including on data minimisation. Where the objective of this Directive can be achieved without the processing of personal data, data controllers should rely on anonymised and aggregated data.

(33) To the extent that any of the measures provided for in this Directive constitute State aid, the provisions concerning such measures are without prejudice to the application of Articles 107 and 108 TFEU. The Commission is competent to assess the compatibility of State aid with the internal market.

(34) Directives (EU) 2018/2001 and (EU) 2019/944 and should therefore be amended accordingly.

(35) Since the objective of this Directive, namely to improve the design of the integrated electricity market, in particular to prevent unduly high electricity prices, cannot be sufficiently achieved by the Member States, but can rather be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary to achieve that objective,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Amendment to Directive (EU) 2018/2001

In Directive (EU) 2018/2001, Article 4(3), the second subparagraph is replaced by the following:

To that end, with regard to direct price support schemes, support shall be granted in the form of a market premium, which could be, inter alia, sliding or fixed.

The second subparagraph of this paragraph shall not apply to support for electricity from the sources listed in Article 19d(4) of Regulation (EU) 2019/943, to which Article 19d(1) of that Regulation applies..

Article 2

Amendments to Directive (EU) 2019/944

Directive (EU) 2019/944 is amended as follows:

(1) Article 2 is amended as follows:

(a) point (8) is replaced by the following:

(8) active customer means a final customer, or a group of jointly acting final customers, who consumes or stores electricity generated within its premises located within confined boundaries or self-generated or shared electricity within other premises, or who sells self-generated electricity or participates in flexibility or energy efficiency schemes, provided that those activities do not constitute its primary commercial or professional activity;

;

(b) the following point is inserted:

(10a) energy sharing means the self-consumption by active customers of renewable energy either:

(a) generated or stored offsite or on sites between them by a facility they own, lease or rent in whole or in part; or

(b) the right to which has been transferred to them by another active customer for a price or free of charge;

;

(c) the following point is inserted:

(15a) fixed-term, fixed-price electricity supply contract means an electricity supply contract between a supplier and a final customer that guarantees that the contractual terms and conditions, including the price, remain unchanged for the duration of the contract, while it may, within a fixed price, include a flexible element with for example peak and off-peak price variations, and where changes in the resulting bill can only result from elements that are not determined by suppliers, such as taxes and levies;

;

(d) the following points are inserted:

(24a) supplier of last resort means a supplier who is designated to take over the supply of electricity to customers of a supplier which has ceased to operate;

(24b) energy poverty means energy poverty as defined in Article 2, point (52), of Directive (EU) 2023/1791 of the European Parliament and of the Council

Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency and amending Regulation (EU) 2023/955 (OJ L 231, 20.9.2023, p. 1).;

;

(24c) flexible connection agreement means a set of agreed conditions for connecting electrical capacity to the grid that includes conditions to limit and control the electricity injection to and withdrawal from the transmission network or distribution network;

(e) point (31) is replaced by the following:

(31) energy from renewable sources or renewable energy means energy from renewable sources or renewable energy as defined in Article 2, point (1), of Directive (EU) 2018/2001;

;

(2) Article 4 is replaced by the following:

Article 4

Free choice of supplier

Member States shall ensure that all customers are free to purchase electricity from suppliers of their choice. Member States shall ensure that all customers are free to have more than one electricity supply contract or energy sharing agreement at the same time, and that, for that purpose, customers are entitled to have more than one metering and billing point covered by the single connection point for their premises. Where technically feasible, smart metering systems deployed in accordance with Article 19 may be used to allow customers to have more than one electricity supply contract or more than one energy sharing agreement at the same time.

;

(3) the following article is inserted:

Article 6a

Flexible connection agreements

1. The regulatory authority or another competent authority where a Member State has so provided shall develop a framework for transmission system operators and distribution system operators to offer the possibility of establishing flexible connection agreements in areas where there is limited or no network capacity availability for new connections as published in accordance with Article 31(3) and Article 50(4a), first subparagraph, of Regulation (EU) 2019/943. That framework shall ensure that:

(a) as a general rule, flexible connections do not delay the network reinforcements in the identified areas;

(b) a conversion from flexible to firm connection agreements once the network is developed is ensured on the basis of established criteria; and

(c) for areas where the regulatory authority or another competent authority where a Member State has so provided, deems network development not to be the most efficient solution, enable, where relevant, flexible connection agreements as a permanent solution, including for energy storage.

1. The framework referred to in paragraph 1 may ensure that flexible connection agreements specify at least the following:

(a) the maximum firm injection and withdrawal of electricity from and to the grid, as well as the additional flexible injection and withdrawal capacity that can be connected and differentiated by time blocks throughout the year;

(b) the network charges applicable to both the firm and flexible injection and withdrawal capacities;

(c) the agreed duration of the flexible connection agreement and the expected date for granting connection to the entire requested firm capacity.

The system user connecting through a flexible grid connection shall be required to install a power control system that is certified by an authorised certifier.

;

(4) Article 11 is amended as follows:

(a) the title is replaced by the following:

Entitlement to a fixed-term, fixed-price electricity supply contract and to a dynamic electricity price contract;

;

(b) paragraph 1 is replaced by the following:

1. Member States shall ensure that the national regulatory framework enables suppliers to offer fixed-term, fixed-price electricity supply contracts and dynamic electricity price contracts. Member States shall ensure that final customers who have a smart meter installed can request to conclude a dynamic electricity price contract and that all final customers can request to conclude a fixed-term, fixed-price electricity supply contract with a duration of at least one year, with at least one supplier and with every supplier that has more than 200000 final customers.

By way of derogation from the first subparagraph, Member States may exempt a supplier with more than 200000 final customers from the obligation to offer fixed-term, fixed-price electricity supply contracts, where:

(a) the supplier offers only dynamic price contracts;

(b) the exemption does not have a negative impact on competition; and

(c) there remains a sufficient choice of fixed-term, fixed-price electricity supply contracts for final customers.

Member States shall ensure that suppliers do not unilaterally modify the terms and conditions of fixed-term, fixed-price electricity supply contracts and do not terminate such contracts before they reach their maturity.

;

(c) the following paragraphs are inserted:

1a.

Prior to the conclusion or extension of any contract referred to in paragraph 1 of this Article, final customers shall be provided with a summary of the key contractual terms and conditions in a prominent manner and in clear and concise language. That summary shall set out the rights referred to in Article 10(3) and (4) and shall include at least the following information:

(a) the total price and its breakdown;

(b) an explanation as to whether the price is fixed, variable or dynamic;

(c) the supplier’s email address and the details of a consumer support hotline; and

(d) where relevant, information on one-time payments, promotions, additional services and discounts.

The Commission shall provide guidance in that regard.

1b.

Member States shall ensure that final customers with fixed-term, fixed-price electricity supply contracts are not excluded from their participation, when they so decide, in demand response and energy sharing and from actively contributing to the achievement of the national electricity system flexibility needs.

;

(d) paragraph 2 is replaced by the following:

1. Member States shall ensure that final customers are fully informed by the suppliers of the opportunities, costs and risks of the respective types of electricity supply contracts, and that suppliers are required to provide information to the final customers accordingly, including with regard to the need to have an adequate electricity meter installed. Regulatory authorities shall:

(a) monitor the market developments and assess the risks that the new products and services may entail and address abusive practices;

(b) take appropriate measures where impermissible termination fees are identified in accordance with Article 12(3).

;

(5) the following article is inserted:

Article 15a

Right to energy sharing

1. Member States shall ensure that all households, small enterprises and medium-sized enterprises, public bodies and, where a Member State has so decided, other categories of final customer have the right to participate in energy sharing as active customers in a non-discriminatory manner, within the same bidding zone or a more limited geographical area, as determined by that Member State.

1. Member States shall ensure that active customers are entitled to share renewable energy between themselves based on private agreements or through a legal entity. Participation in energy sharing shall not constitute the primary commercial or professional activity of active customers engaged in energy sharing.

1. Active customers may appoint a third party as an energy sharing organiser for the purposes of:

(a) communicating about the energy sharing arrangements with other relevant entities, such as suppliers and network operators, including on aspects related to the applicable tariffs and charges, taxes or levies;.

(b) providing support for managing and balancing behind-the-meter flexible loads, distributed renewable energy generation and storage facilities that are part of the relevant energy sharing arrangement;

(c) contracting and billing active customers that participate in energy sharing;

(d) installation and operation, including metering and maintenance, of the renewable energy generation or storage facility.

The energy sharing organiser or another third party may own or manage a storage or renewable energy generation facility of up to 6 MW, without being considered to be an active customer, except where it is one of the active customers participating in the energy sharing project. The energy sharing organiser shall provide non-discriminatory services and transparent prices, tariffs, and terms of services. With regard to the first subparagraph, point (c), of this paragraph, Articles 10, 12 and 18 shall apply. Member States shall lay down the regulatory framework for the application of this paragraph.

1. Member States shall ensure that active customers participating in energy sharing:

(a) are entitled to have the shared electricity injected into the grid deducted from their total metered consumption within a time interval no longer than the imbalance settlement period and without prejudice to applicable non-discriminatory taxes, levies and cost-reflective network charges;

(b) benefit from all consumer rights and obligations as final customers under this Directive;

(c) are not required to comply with supplier obligations, where renewable energy is shared between households with an installed capacity up to 10,8 kW for single households and up to 50 kW for multi-apartment blocks;

(d) have access to voluntary template contracts with fair and transparent terms and conditions for energy sharing agreements;

(e) in the event of a conflict arising from an energy-sharing agreement, have access to out-of-court dispute settlement with other participants in the energy sharing agreement in accordance with Article 26;

(f) are not subject to unfair and discriminatory treatment by market participants or their balance responsible parties;

(g) are informed of the possibility of changes in bidding zones in accordance with Article 14 of Regulation (EU) 2019/943 and of the fact that the right to share renewable energy is restricted in accordance with paragraph 1 of this Article;

(h) notify energy sharing arrangements to the relevant system operators and market participants, including the relevant suppliers either directly or through an energy sharing organiser.

Member States may adapt the thresholds referred to in point (c) of the first subparagraph in accordance with the following:

(a) in the case of single households, the threshold may be increased up to 30 kW;

(b) in the case of multi-apartment blocks the threshold may be increased up to 100 kW or, in the case of duly justified specific circumstances due to a reduced average size of multi-apartment blocks, decreased to a minimum of 40 kW.

1. Where other categories of final customer participating in energy sharing schemes are larger than small and medium-sized enterprises, the following additional conditions shall apply:

(a) the size of the installed capacity of the generation facility associated with the energy sharing scheme is to be a maximum of 6 MW;

(b) the energy sharing takes place within a local or limited geographical area, as defined by the Member State concerned.

1. Member States shall ensure that relevant transmission system operators or distribution system operators or other designated bodies:

(a) monitor, collect, validate and communicate metering data related to the shared electricity with relevant final customers and market participants at least every month, and in accordance with Article 23, and for that purpose, put in place the appropriate IT systems;

(b) provide a relevant contact point to:

(i) register energy sharing arrangements;

(ii) make available practical information for energy sharing;

(iii) receive information on relevant metering points, changes in location and participation; and

(iv) where applicable, validate calculation methods in a clear, transparent and timely manner.

1. Member States shall take appropriate and non-discriminatory measures to ensure that vulnerable customers and customers affected by energy poverty can access energy sharing schemes. Those measures may include financial support measures or production allocation quota.

1. Member States shall ensure that energy sharing projects owned by public authorities make the shared electricity accessible to vulnerable or energy poor customers or citizens. When doing so, Member States shall do their utmost to promote that the amount of that accessible energy is at least 10 % on average of the energy shared.

1. Member States may promote the introduction of plug-in mini-solar systems of up to 800 W capacity in and on buildings.

1. The Commission shall provide guidance to the Member States without increasing the administrative burden in order to facilitate the establishment of a standardised approach with regard to energy sharing and ensure a level playing field for renewable energy communities and citizen energy communities.

1. This Article shall be without prejudice to the right of customers to choose their supplier in accordance with Article 4 and to applicable national rules on the authorisation of suppliers.

;

(6) the following article is inserted:

Article 18a

Supplier risk management

1. Regulatory authorities or, where a Member State has designated an alternative independent competent authority for that purpose, such a designated competent authority, taking into account the size of the supplier or the market structure and including, if relevant, by carrying out stress tests shall ensure that suppliers:

(a) have in place and implement appropriate hedging strategies, to limit the risk of changes in wholesale electricity supply to the economic viability of their contracts with customers, while maintaining liquidity on and price signals from short-term markets;

(b) take all reasonable steps to limit their risk of supply failure.

1. Supplier hedging strategies may include the use of power purchase agreements as defined in Article 2, point (77), of Regulation (EU) 2019/943 or other appropriate instruments, such as forward contracts. Where sufficiently developed markets for power purchase agreements exist which allow effective competition, Member States may require that a share of suppliers’ risk exposure to changes in wholesale electricity prices is covered using power purchase agreements for electricity generated from renewable energy sources matching the duration of their risk exposure on the consumer side, subject to compliance with Union competition law.

1. Member States shall endeavour to ensure the accessibility of hedging products for citizen energy communities and renewable energy communities and to put in place enabling conditions for that purpose.

;

(7) in Article 27, paragraph 1 is replaced by the following:

1. Member States shall ensure that all household customers, and, where Member States consider it to be appropriate, small enterprises, enjoy universal service, namely the right to be supplied with electricity of a specified quality within their territory at competitive, easily and clearly comparable, transparent and non-discriminatory prices. To ensure the provision of universal service, Member States shall impose on distribution system operators an obligation to connect customers to their network under terms, conditions and tariffs set in accordance with the procedure laid down in Article 59(7). This Directive shall not prevent Member States from strengthening the market position of household customers and small and medium-sized non-household customers by promoting the possibilities for the voluntary aggregation of representation for that class of customers.

;

(8) the following article is inserted:

Article 27a

Supplier of last resort

1. Where Member States have not already put in place a regime with regard to suppliers of last resort, they shall introduce such a regime to ensure continuity of supply at least for household customers. Suppliers of last resort shall be appointed in a fair, transparent and non-discriminatory procedure.

1. Final customers who are transferred to suppliers of last resort shall continue to benefit from all of their rights as customers as laid down in this Directive.

1. Member States shall ensure that suppliers of last resort communicate their terms and conditions to transferred customers without delay and ensure a seamless continuity of service for those customers for a period needed to find a new supplier, and at least six months.

1. Member States shall ensure that final customers are provided with information and encouragement to switch to a market-based offer.

1. Member States may require a supplier of last resort to supply electricity to household customers and small enterprises and medium-sized enterprises who do not receive market-based offers. In such cases, the conditions set out in Article 5 shall apply.

;

(9) the following article is inserted:

Article 28a

Protection from disconnections

1. Member States shall ensure that vulnerable customers and customers affected by energy poverty are fully protected from electricity disconnections, by taking the appropriate measures, including the prohibition of disconnections or other equivalent actions. Member States shall provide such protection as part of their policy with regard to vulnerable customers pursuant to Article 28(1) and without prejudice to the measures set out in Article 10(11).

When notifying the Commission of their transposition measures of this Directive, Member States shall explain the relationship between the first subparagraph and the corresponding parts of national transposition instruments.

1. Member States shall ensure that suppliers do not terminate contracts and do not disconnect customers on the grounds on which customers have submitted a complaint in accordance with Article 10(9) or which are subject to an out-of-court dispute settlement mechanism in accordance with Article 26. Such a complaint or the use of such a mechanism shall not affect the parties’ contractual rights and obligations. Member States may take appropriate measures to avoid an abuse of process.

1. Member States shall take appropriate measures referred to in paragraph 1 to enable customers to avoid disconnection, which may include:

(a) promoting voluntary codes for suppliers and customers on preventing and managing cases of customers in arrears; those arrangements may concern support for customers in managing their energy use and costs, including flagging unusual high energy spikes or use in winter and summer seasons, offering appropriate flexible payment plans, debt advice measures, self-metering readings, and improved communication with customers and support agencies;

(b) promoting customers’ education and awareness of their rights with regard to debt management;

(c) access to finance, vouchers or subsidies to support the payment of bills;

(d) encouraging and facilitating the provision of meter readings every three months, or where relevant for shorter billing periods, where a system of regular self-reading by the final customer has been implemented to meet the obligations of points 2(a) and (b) of Annex I in relation to the frequency of billing and the provision of billing information.

;

(10) in Article 31, paragraphs 2 and 3 are replaced by the following:

1. In any event, the distribution system operator shall not discriminate between system users or classes of system users, including renewable energy communities and citizen energy communities, in particular in favour of its related undertakings.

1. Distribution system operators shall provide system users with the information they need for efficient access to, and use of, the system. In particular, distribution system operators shall publish in a transparent manner clear information on the capacity available for new connections in their area of operation with high spatial granularity, respecting public security and data confidentiality, including the capacity under connection request and the possibility of flexible connection in congested areas. The publication shall include information on the criteria for the calculation of the available capacity for new connections. Distribution system operators shall update that information on a regular basis, at least quarterly.

Distribution system operators shall provide in a transparent manner clear information to system users about the status and treatment of their connection requests. They shall provide such information within three months of the submission of the request. Where the requested connection is neither granted nor permanently rejected, distribution system operators shall update that information on a regular basis, at least quarterly.

3a.

Distribution system operators shall provide system users the option to request grid connection and submit relevant documents exclusively in digital form.

3b.

Member States may decide not to apply paragraph 3 to integrated electricity undertakings which serve fewer than 100000 connected customers, or which serve small isolated systems. Member States may apply a threshold lower than that of 100000 connected customers.

Member States shall encourage integrated electricity undertakings which serve fewer than 100000 connected customers to provide system users with the information referred to in paragraph 3 once a year and promote cooperation between distribution system operators for that purpose.

;

(11) in Article 33, paragraph 1 is replaced by the following:

1. Without prejudice to Directive 2014/94/EU of the European Parliament and of the Council

Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1).;

, Member States shall provide the necessary regulatory framework to facilitate the connection of publicly accessible and private recharging points with smart charging functionalities and bidirectional charging functionalities in accordance with Article 20a of Directive (EU) 2018/2001 to the distribution networks. Member States shall ensure that distribution system operators cooperate on a non-discriminatory basis with any undertaking that owns, develops, operates or manages recharging points for electric vehicles, including with regard to connection to the grid.

(12) Article 59 is amended as follows:

(a) paragraph 1 is amended as follows:

(i) point (c) is replaced by the following:

(c) in close coordination with the other regulatory authorities, ensuring the compliance of the single allocation platform established in accordance with Commission Regulation (EU) 2016/1719

Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (OJ L 259, 27.9.2016, p. 42).;

, the ENTSO for Electricity and the EU DSO entity with their obligations under this Directive, Regulation (EU) 2019/943, the network codes and guidelines adopted pursuant to Articles 59, 60 and 61 of Regulation (EU) 2019/943, 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 single allocation platform, the ENTSO for Electricity and the EU DSO entity 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, the matter shall be referred to the ACER for a decision, pursuant to Article 6(10) of Regulation (EU) 2019/942;

(ii) point (z) is replaced by the following:

(z) monitoring the removal of unjustified obstacles to and restrictions on the development of consumption of self-generated electricity, energy sharing, renewable energy communities and citizen energy communities, including obstacles and restrictions preventing the connection of flexible distributed energy generation within a reasonable time in accordance with Article 58, point (d).

;

(b) paragraph 4 is replaced by the following:

1. The regulatory authority located in the Member State in which the single allocation platform, the ENTSO for Electricity or the EU DSO entity has its seat shall have the power to impose effective, proportionate and dissuasive penalties on those entities where they do not comply with their obligations under this Directive, Regulation (EU) 2019/943 or any relevant legally binding decisions of the regulatory authority or of ACER, or to propose that a competent court impose such penalties.

;

(13) in Article 66, the following paragraphs are added:

1. By way of derogation from Article 40(4), the transmission system operators in Estonia, Latvia and Lithuania shall be able to rely on balancing services provided by domestic electricity storage providers, transmission system operators related undertakings, and other facilities owned by transmission system operators.

By way of derogation from Article 54(2), Estonia, Latvia and Lithuania may allow their transmission system operators and transmission system operators related undertakings to own, develop, manage and operate energy storage facilities without following an open, transparent and non-discriminatory tendering procedure and may allow such energy storage facilities to buy or sell electricity in the balancing markets.

The derogations referred to in the first and second subparagraphs shall apply for up to three years after Estonia, Latvia and Lithuania have joined the Continental Europe Synchronous Area. Where necessary to preserve security of supply, the Commission may grant an extension of the initial three-year period by a maximum of five years.

1. By way of derogation from Article 40(4) and Article 54(2), Cyprus may allow its transmission system operator to own, develop, manage and operate energy storage facilities without following an open, transparent and non-discriminatory tendering procedure.

The derogation referred to in the first subparagraph shall apply until the transmission system in Cyprus is connected to other Member States’ transmission systems via interconnection.

;

(14) the following article is inserted:

Article 66a

Access to affordable energy during an electricity price crisis

1. The Council may, acting on a proposal from the Commission, by means of an implementing decision declare a regional or Union-wide electricity price crisis, if the following conditions are met:

(a) the existence of very high average prices in wholesale electricity markets of at least two and a half times the average price during the previous five years, and at least 180 EUR/MWh which is expected to continue for at least six months, the calculation of the average price during the previous five years not taking into account those periods where a regional or Union-wide electricity price crisis was declared;

(b) sharp increases in electricity retail prices in the range of 70 % occur which are expected to continue for at least three months.

1. The implementing decision referred to in paragraph 1 shall specify its period of validity which may be for a period of up to one year. That period may be extended in accordance with the procedure laid down in paragraph 8 for consecutive periods of up to one year.

1. The declaration of a regional or Union-wide electricity price crisis pursuant to paragraph 1 shall ensure a fair competition and trade across all Member States affected by the implementing decision so that the internal market is not unduly distorted.

1. Where the conditions laid down in paragraph 1 are fulfilled, the Commission shall submit a proposal to declare a regional or Union-wide electricity price crisis which shall include the proposed period of validity of the implementing decision.

1. The Council, acting by a qualified majority, may amend a Commission proposal submitted pursuant to paragraph 4 or 8.

1. Where the Council has adopted an implementing decision pursuant to paragraph 1, Member States may, for the duration of the validity of that decision, apply temporary targeted public interventions in price setting for the supply of electricity to small enterprises and medium-sized enterprises. Such public interventions shall:

(a) be limited to at most 70 % of the beneficiary’s consumption during the same period of the previous year and retain an incentive for demand reduction;

(b) comply with the conditions set out in Article 5(4) and (7);

(c) where relevant, comply with the conditions set out in paragraph 7 of this Article;

(d) be designed to minimise any negative fragmentation of the internal market.

1. Where the Council has adopted an implementing decision pursuant to paragraph 1 of this Article, Member States may for the duration of the validity of that decision, by way of derogation from Article 5(7), point (c), when applying targeted public interventions in price setting for the supply of electricity pursuant to Article 5(6) or to paragraph 6 of this Article, exceptionally and temporarily set a price for the supply of electricity which is below cost provided that the following conditions are fulfilled:

(a) the price set for household customers only applies, at most, to 80 % of median household consumption and retains an incentive for demand reduction;

(b) there is no discrimination between suppliers;

(c) suppliers are compensated for supplying below cost in a transparent and non-discriminatory manner;

(d) all suppliers are eligible to provide offers for the price for the supply of electricity which is below cost on the same basis;

(e) measures proposed do not distort the internal electricity market.

1. In due time before the expiry of the period of validity specified pursuant to paragraph 2, the Commission shall assess whether the conditions laid down in paragraph 1 continue to be fulfilled. If the Commission considers that the conditions laid down in paragraph 1 continue to be fulfilled, it shall submit to the Council a proposal to extend the period of validity of an implementing decision adopted pursuant to paragraph 1. Where the Council decides to extend the period of validity, paragraphs 6 and 7 shall apply during such extended period.

The Commission shall continuously assess and monitor the impact resulting from any measures adopted under this Article and publish on a regular basis the results of such assessments.

;

(15) in Article 69, paragraph 2 is replaced by the following:

1. By 31 December 2025, the Commission shall review the implementation of this Directive and shall submit a report to the European Parliament and to the Council. If appropriate, the Commission shall submit a legislative proposal together with or after submitting the report.

The Commission’s review shall, in particular, assess the service quality offered to final customers and whether customers, especially vulnerable customers and customers affected by energy poverty, are adequately protected under this Directive..

Article 3

Transposition

1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 17 January 2025.

By way of derogation from the first subparagraph of this paragraph, Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Article 2, points (2) and (5), by 17 July 2026.

They shall immediately inform the Commission thereof.

When Member States adopt those measures, they shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. The methods of making such reference shall be laid down by Member States.

1. Member States shall communicate to the Commission the text of the measures of national law which they adopt in the field covered by this Directive.

Article 4

Entry into force

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Article 5

Addressees

This Directive is addressed to the Member States.

Done at Brussels, 13 June 2024.

For the European Parliament

The President

R. Metsola

For the Council

The President

H. Lahbib