DetailedEurelectricamendmentsfortheElectricityMarket

Designtrilogues

Eurelectricamendments

November2023

EurelectricrepresentstheinterestsoftheelectricityindustryinEurope.Ourworkcoversallmajorissuesaffectingoursector.Ourmembersrepresenttheelectricityindustryinover30Europeancountries.

Wecovertheentireindustryfromelectricitygenerationandmarketstodistributionnetworksandcustomerissues.Wealsohaveaffiliatesactiveonseveralothercontinentsandbusinessassociatesfromawidevarietyofsectorswithadirectinterestintheelectricityindustry.

Westandfor

ThevisionoftheEuropeanpowersectoristoenableandsustain:

-AvibrantcompetitiveEuropeaneconomy,reliablypoweredbyclean,carbon-neutralenergy

-Asmart,energyefficientandtrulysustainablesocietyforallcitizensofEurope

Wearecommittedtoleadacost-effectiveenergytransitionby:

investingincleanpowergenerationandtransition-enablingsolutions,toreduceemissionsandactivelypursueeffortstobecomecarbon-neutralwellbeforemid-century,takingintoaccountdifferentstartingpointsandcommercialavailabilityofkeytransitiontechnologies;

transformingtheenergysystemtomakeitmoreresponsive,resilientandefficient.Thisincludesincreaseduseofrenewableenergy,digitalisation,demandsideresponseandreinforcementofgridssotheycanfunctionasplatformsandenablersforcustomers,citiesandcommunities;

acceleratingtheenergytransitioninothereconomicsectorsbyofferingcompetitiveelectricityasatransformationtoolfortransport,heatingandindustry;

embeddingsustainabilityinallpartsofourvaluechainandtakemeasurestosupportthetransformationofexistingassetstowardsazerocarbonsociety;

innovatingtodiscoverthecutting-edgebusinessmodelsanddevelopthebreakthroughtechnologiesthatareindispensabletoallowourindustrytoleadthistransition.

Dép?tlégal:D/2023/12.105/41

Markets&InvestmentsCommittee

Customers&RetailServicesCommittee

Distribution&MarketFacilitationCommittee

Contact:

AlessandroZAPPI–

azappi@

SavannahALTVATER–

salvater@

ChristianGRUBER–

cgruber@

DoniaPEERHOSSAINI–

dpeerhossaini@

CharlotteRENAUD–

crenaud@

TableofContents

AmendmentProposalsforSupplierproductsobligations 1

AmendmentProposalsforfixedterm,fixedpriceelectricitycontactdefinition 3

AmendmentProposalsforEnergySharing 4

AmendmentProposalsforHedgingobligations 9

AmendmentProposalsforFreeChoiceofSupplier 11

AmendmentProposalsforDedicatedmeteringDevices 13

AmendmentProposalsforCustomersprotectionprovisions 15

AmendmentProposalsforEmergencymeasures 17

AmendmentProposalsforCommissionreviewsandreports 18

AmendmentProposalsforFlexibilitysupportscheme 20

AmendmentProposalsonSharingofOrderbook 22

AmendmentProposalsforUnit-basedbidding 23

AmendmentProposalsforPeakShaving 24

AmendmentProposalsforVirtualTradingHubs 27

AmendmentProposalsforSingleentity 32

AmendmentProposalsforPPA 34

AmendmentProposalsforDirectPriceSupportSchemes 36

AmendmentProposalsforAnticipatoryInvestmentsinGrids 40

AmendmentProposalsforSupplieroflastresortandvulnerableconsumers 42

AmendmentProposalsforCapacityMechanisms 44

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AheadoftheupcomingtrialoguesoftheElectricityMarketDesignrevision,youwillfindbelowtheEurelectricpreferencesandcommentsamongthetextsproposedbythethreeinstitutions.Toguideyourreading,pleaserefertothekey.

Key:

Council

EP

Eurelectricownproposedtext(notpresentintheco-legislators’positions)

AmendmentProposalsforSupplierproductsobligations

TextproposedbyCommission

AmendmentproposalbyEurelectric

Amendment1

Article11(Directive)&Article12(3)(Directive2019/944)

Originaltext

Originaltext+amendments

1.MemberStatesshallensurethatthenationalregulatoryframeworkenablessupplierstoofferfixed-term,fixed-pricecontractsanddynamicelectricitypricecontracts.MemberStatesshallensurethatfinalcustomerswhohaveasmartmeterinstalledcanrequesttoconcludeadynamicelectricitypricecontractandthatallfinalcustomerscanrequesttoconcludeafixed-term,fixed-priceelectricitypricecontractofadurationofatleastoneyear,withatleastonesupplierandwitheverysupplierthathasmorethan200000finalcustomers.

Art12(3)Directive2019/944

1.MemberStatesshallensurethatthenationalregulatoryframeworkenablessupplierstoofferfixed-term,fixed-pricecontractsanddynamicelectricitypricecontracts.MemberStatesshallensurethatfinalcustomerswhohaveasmartmeterinstalledcanrequesttoconcludeadynamicelectricitypricecontractandthatallfinalcustomerscanrequesttoconcludeafixed-term,fixed-priceelectricitypricecontractofadurationofatleastoneyear,withatleastonesupplierandwitheverysupplierthathasmorethan200000finalcustomers.

Bywayofderogationfromthefirst

subparagraph,MemberStatesmayexemptasupplierwithmorethan200000finalcustomersfromtheobligationtoofferfixedtermfixedpricecontractsifthatsupplieronlyoffersdynamicpricecontractsandtheexemptiondoesnothaveanegativeimpactoncompetitionorsufficientchoiceoffixedtermfixedpricecontractforcustomers.

Art12(3)Directive2019/944

Key:

Council

EP

Eurelectricownproposedtext(notpresentintheco-legislators’positions)

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3.Bywayofderogationfromparagraph2,MemberStatesmaypermitsuppliersormarketparticipantsengagedinaggregationtochargecustomerscontractterminationfeeswherethosecustomersvoluntarilyterminatefixed-term,fixed-priceelectricitysupplycontractsbeforetheirmaturity,providedthatsuchfeesarepartofacontractthatthecustomerhasvoluntarilyenteredintoandthatsuchfeesareclearlycommunicatedtothecustomerbeforethecontractisenteredinto.Suchfeesshallbeproportionateandshallnotexceedthedirecteconomiclosstothesupplierorthemarketparticipantengagedinaggregationresultingfromthecustomer’sterminationofthecontract,includingthecostsofanybundledinvestmentsorservicesthathavealreadybeenprovidedtothecustomeraspartofthecontract.Theburdenofprovingthedirecteconomiclossshallbeonthesupplierormarketparticipantengagedinaggregation,andthepermissibilityofcontractterminationfeesshallbemonitoredbytheregulatoryauthority,orbyanothercompetentnationalauthority

3.Bywayofderogationfromparagraph2,MemberStatesmaypermitshallgrantsuppliersormarketparticipantsengagedinaggregationtherighttochargecustomerscontractterminationfeeswherethosecustomersvoluntarilyterminatefixed-term,fixed-priceelectricitysupplycontractsbeforetheirmaturity,providedthatsuchfeesarepartofacontractthatthecustomerhasvoluntarilyenteredintoandthatsuchfeesareclearlycommunicatedtothecustomerbeforethecontractisenteredinto.Suchfeesshallbeproportionateandshallnotexceedthedirecteconomiclosstothesupplierorthemarketparticipantengagedinaggregationresultingfromthecustomer’sterminationofthecontract,includingthecostsofanybundledinvestmentsorservicesthathavealreadybeenprovidedtothecustomeraspartofthecontract.Theburdenofprovingthedirecteconomiclossshallbeonthesupplierormarketparticipantengagedinaggregation,andthepermissibilityofcontractterminationfeesshallbemonitoredbytheregulatoryauthority,orbyanothercompetentnationalauthority

Justification

Eurelectricdoesnotrecommendmakingfixed-priceproductsasatoolagainsthighprices.Fixed-priceproductsoffercustomersalong-termviewoftheirenergycosts.However,giventheassociatedhedgingcosts,theydonotguaranteethelowestpriceforcustomersand,ifbadlydesigned,maynotalwaysincentivizecustomers’demandflexibility.EurelectricthereforewelcomestheCouncil’sproposalgivingthepossibilityfortheMemberStatestoderogatefromfixedproductobligation.Weagreethatconsumersbenefitwhenthereareavarietyofoffersinthemarket,butwedonotfinditefficienttoregulatespecificproductsinlegislation.Ifthereisdemandforaparticularproduct,themarketwillrespondtothatdemandorganically.Additionally,retailfixed-term,fixed-priceelectricitysupplycontractsrequireadual-sidedcommitmentbetweencustomersandsuppliers.Withouttherighttochargeproportionateearlyterminationfees,supplierscanbeputinapositionwheretheyover-procureelectricity,duetothehedgingrequiredtosupportfixedcontracts,andputthesystemoutofbalance.Therefore,weproposearevisionofArticle12(3)inDirective2019.

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AmendmentProposalsforfixedterm,fixedpriceelectricitycontactdefinition

TextproposedbyCommission

AmendmentproposalbyEurelectric

Amendment2

Article2.1.b(15a)(Directive)

Originaltext

(15a)‘fixedterm,fixedpriceelectricitysupplycontract’meansanelectricitysupplycontractbetweenasupplierandafinalcustomerthatguaranteesthesamecontractualconditions,includingtheprice,whileitmay,withinafixedprice,includeaflexibleelementwithforexamplepeakandoffpeakpricevariations;

Originaltext+amendments

(15a)‘fixedterm,fixedpriceelectricitysupplycontract’meansanelectricitysupplycontractbetweenasupplierandafinalcustomerthatguaranteesthesamecontractualconditions

duringthewholedurationofthecontract,

includingtheprice,whileitmay,withinafixedprice,andforcustomersequippedwithsmartmetersincludeaflexibleelementwithforexamplepeakandoffpeakpricevariations,andwherechangesinthefinalbillcanonlyresultfromelementsthatarenotdeterminedbysuppliers,suchastaxesandlevies;

Justification

Althoughgenerallyclearlystatedinthecontractualconditions,wethinkitshouldalsobeexplicitlymentionedinlawthatobligationtodeliverafixedtermfixedpriceelectricitysupplycontractcanonlyapplytotheenergycomponentofthebill.WethereforewelcometheclarificationbroughtbytheEuropeanParliamentstatingthatsupplierscanpasscostsofelementsnotdeterminedbythemontothecustomers,suchasnetworkcharges,taxesandlevies.

Key:

Council

EP

Eurelectricownproposedtext(notpresentintheco-legislators’positions)

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AmendmentProposalsforEnergySharing

TextproposedbyCommission

AmendmentproposalbyEurelectric

Amendment3

Article15a(Directive)

Originaltext

1.Allhouseholds,smallandmediumsizedenterprisesandpublicbodieshavetherighttoparticipateinenergysharingasactivecustomers.

(a)Activecustomersshallbeentitledtosharerenewableenergybetweenthemselvesbasedonprivateagreementsorthroughalegalentity.

(b)Activecustomersmayuseathirdpartythatownsormanagesforinstallation,operation,includingmeteringandmaintenanceastorageorrenewableenergygenerationfacilityforthepurposeoffacilitatingenergy

Originaltext+amendments

1.Allhouseholds,smallandmediumsizedenterprisesandpublicbodiesshallhavetherighttoparticipateinenergysharingasactivecustomers,withinthesamebiddingzoneora

morelimitedgeographicalareaas

determinedbyMemberStates.Therighttoparticipateinenergysharingshallnotapplytoprivateundertakingswhoseparticipationinenergysharingconstitutespartoftheirprimarycommercialorprofessionalactivity.

1a.Activecustomersshallbeentitledtosharerenewableenergybetweenthemselvesbasedonprivateagreementsorthroughalegalentity.

1b.Activecustomerswhoparticipateinenergysharingmayappointanenergysharingorganiserforcommunicationwithgridoperators,includingthroughalegalentity.Theenergysharingorganisershallberesponsibleforprovidinggridoperatorswithallnecessaryinformationaboutenergysharingarrangements,forsettlingthegridtariffsandapplicabletaxesandfornotifyingsuppliersatthesameconnectionpointabouttheenergysharingarrangement.Theenergysharingorganisershallaimatself-balancingthebehindthemeterflexibleloads,distributedrenewablegenerationandstorageassetspartofanenergysharingarrangement.

1c.Activecustomersmayusethirdpartiesthatownormanagestoragefacilitiesorrenewableenergygenerationfacilitiesofupto6MWcapacityeachforinstallation,operation,includingmeteringandmaintenance,forthepurposeoffacilitatingenergysharing.Thethirdpartyshallnotbe

Key:

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EP

Eurelectricownproposedtext(notpresentintheco-legislators’positions)

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sharing,withoutthatthirdpartybeingconsideredanactivecustomer.

(c)MemberStatesshallensurethatactivecustomersparticipatinginenergysharing:

(d)areentitledtohavethesharedelectricitynettedwiththeirtotalmeteredconsumptionwithinatimeintervalnolongerthantheimbalancesettlementperiodandwithoutprejudicetoapplicabletaxes,leviesandnetworkcharges;

(e)benefitfromallconsumerrightsandobligationsasfinalcustomersunderthisDirective,exceptincaseofenergysharingbetweenhouseholdswithaninstalledcapacityupto10.8kWandupto50kWformulti-apartmentblocksusingpeer-to-peertradingagreements;

(f)haveaccesstotemplatecontractswithfairandtransparenttermsandconditionsforpeer-to-peertradingagreementsbetweenhouseholds,andforagreementsonleasing,rentingorinvestinginstorageandrenewableenergygenerationfacilitiesforthepurposeofenergysharing;incaseofconflictsarisingoversuchagreements,finalcustomersshallhaveaccesstooutofcourtdisputesettlementinaccordancewithArticle26;

consideredtobeanactivecustomer.Thirdpartiesshallbetransparentaboutprices,tariffs,andtermsofservices,andtheyshallensuretheprovisionofnon-discriminatoryservices.

1d.MemberStatesshallensurethatactivecustomersparticipatinginenergysharing:

(a)areentitledtohavethesharedelectricityinjectedintothegriddeductedfromtheirtotalmeteredconsumptionwithinatimeintervalnolongerthantheimbalancesettlementperiodandwithoutprejudicetoapplicablenon-discriminatorytaxes,leviesandcost-reflectivenetworkcharges;

(b)benefitfromallconsumerrightsandobligationsasfinalcustomersunderthisDirective;

(c)arenotrequiredtocomplywithsupplierobligationswhereenergyissharedbetweenhouseholdswithaninstalledcapacityupto10.8kWandupto100kWformulti-apartmentblocksusingpeer-to-peertradingagreementsforenergysharingpurposes;

(d)customersengagedinenergysharingagreementsprovidingforaremunerationarebilledonthebasisoftheiractual

consumptionandbenefitviaathirdparty

fromrightsonbillingandbillinginformation

providedforinArticle18(1)to(5),andbasic

contractualrightsprovidedforinArticle10

thataregrantedtofinalelectricity

customers;

(e)haveaccesstovoluntarytemplatecontractswithfairandtransparenttermsandconditionsforenergysharingagreements;incaseofconflictsarisingoversuchagreements,finalcustomersengaginginenergysharingormembersofenergycommunitiesaretohaveaccesstooutofcourtdisputesettlementasregardsdisputeswithotherparticipantsofenergysharingagreementsorwithinenergycommunitiesinaccordancewithArticle26;

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(g)arenotsubjecttounfairanddiscriminatorytreatmentbymarketparticipantsortheirbalanceresponsibleparties;

(h)areinformedofthepossibilityforchangesinbiddingzonesinaccordancewithArticle14ofRegulation(EU)2019/943andofthefactthattherighttoshareenergyisrestrictedtowithinoneandthesamebiddingzone.

(i)MemberStatesshallensurethatrelevanttransmissionordistributionsystemoperatorsorotherdesignatedbodies:

(j)monitor,collect,validateandcommunicatemeteringdatarelatedtothesharedelectricitywithrelevantfinalcustomersandmarketparticipantsatleasteverymonth,andinaccordancewithArticle23;

(k)providearelevantcontactpointtoregisterenergysharingarrangements,receiveinformationonrelevantmeteringpoints,changesinlocationandparticipation,and,whereapplicable,validatecalculationmethodsinaclear,transparentandtimelymanner.

2.MemberStatesshalltakeappropriateandnon-discriminatorymeasurestoensurethatenergypoorandvulnerablehouseholdscanaccessenergysharingschemes.Thosemeasuresmayincludefinancialsupportmeasuresorproductionallocationquota.

(f)arenotsubjecttounfairanddiscriminatorytreatmentandchargesbymarketparticipantsortheirbalanceresponsibleparties;

(g)areinformedofthepossibilityforchangesinbiddingzonesinaccordancewithArticle14ofRegulation(EU)2019/943andofthefactthattherighttoshareenergyisrestrictedinaccordancewithparagraph1;

(h)areallowedtoofferdifferentservicesandparticipateinanon-discriminatorymannerinanymarket,individuallyoraggregatedthroughthesupportofmarketparties,withthedecentralisedenergyresourcesinvolvedinenergysharing.

1e.MemberStatesshallensurethatrelevanttransmissionordistributionsystemoperatorsorotherdesignatedbodies:

(a)monitor,collect,validateandcommunicatemeteringdatarelatedtothesharedelectricitywithrelevantfinalcustomersandmarketparticipantsatleasteverymonthinaccordancewithArticle23andforthatpurpose,MemberStatesaretoensurethatrelevantoperatorsimplementtheappropriateITinfrastructurewithin...[oneyearafterthetranspositiondateofthisDirective];

(b)establishone-stopshopstofacilitateandregisterenergysharingarrangements,todistributepracticalinformationtothepubliconrequirements,availablegridconnectioncapacity,timelinesforresponseandotherrelevantdeadlines,toinformaboutavailablefinancialsupportandexpertise,availabletemplatecontracts,toreceiveinformationonrelevantmeteringpoints,changesinlocationandparticipation,and,whereapplicable,tovalidatecalculationmethodsinaclear,transparentandtimelymanner.

2.MemberStatesshalltakeappropriateandnon-discriminatorymeasurestoensurethatenergypoorandvulnerablehouseholdscanaccessenergysharingschemes.Those

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measuresmayincludefinancialsupportmeasuresorproductionallocationquota.

2a.MemberStatesshallensurethattheenergysharingprojectsownedbypublicauthoritiesrequirethatatleast20%oftheamountofsharedelectricityismadeaccessibletovulnerablecustomers.

2b.TheCommissionshallprovideadditionalguidancetotheMemberStateswithoutincreasingadministrativeburdeninordertofacilitateastandardisedapproachwithregardtorenewableenergysharingandensurealevelplayingfieldforrenewableenergycommunitiesandcitizenenergycommunities.TheCommissionshall,bymeansofimplementingacts,establishtherulesfortherequireddataexchangebetweengridoperatorsandwithretailersforenergysharing,byspecifyingexistingstandards.ThoseimplementingactsshallbeadoptedinaccordancewiththeadvisoryprocedurereferredtoinArticle68(2).

2c.MemberStatesshallpromotetheintroductionofplug-inmini-solarsystemsofupto800Wcapacityinandonbuildings,forexampleonbalconies,andremovetechnicalandadministrativebarriersforcustomers.Activecustomerssharingelectricityfromaplug-inmini-solarinstallationofupto800Wcapacityshallbeentitledtohavethesharedelectricityinjectedintothegriddeductedfromtheirtotalmeteredconsumptionwithinatimeintervalnolongerthantheimbalancesettlementperiodandwithoutprejudicetoapplicablenon-discriminatorytaxes,leviesandcost-reflectivenetworkcharges.

MemberStatesmayconsiderexemptingtheresultingsharedelectricityfromthosetaxes,leviesandcost-reflectivenetworkcharges.

Justification

EurelectricwelcomestheEPproposalsinceitestablishes:

?geographiclimitationsuptobiddingzonelevel,ensuringenergysharingdoesnotbecomeaprofessionalizedcommercialventure(preservingitssocialnature);

?theintroductionofanenergysharingorganisertofacilitatecommunicationbetweencustomers,suppliersandSystemOperators;

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?theclarificationofresponsibilitiesforpeer-to-peersharing;

?thepossibilityforenergysharerstooffertheirexcessgenerationinthemarket.

Havingsaidso,Eurelectricremainsextremelycautiousregardingenergysharingsinceitcould:

?representanunnecessaryburdenforDSOssuchas:

otheimplementationof“appropriateITinfrastructure”withinoneyearaftertheDirective’stransposition;

othefacilitationofenergysharingarrangements,distributionof“practicalinformationtothepubliconrequirements,availablegridconnectioncapacity,timelinesforresponseandotherrelevantdeadlines”,aswellasabout“availablefinancialsupportandexpertise,availabletemplatecontracts”.

?becomeadisguisedformofalternativeprofessionalisedcommercialsupply;

?changecustomerloadprofileandaffectconsumptionprojectionssuppliersusetoprocureorhedgethecorrectamountofelectricitytokeepthesysteminbalance,particularlyiftheremainingsupplycontractisafixedpriceproduct.

Key:

Council

EP

Eurelectricownproposedtext(notpresentintheco-legislators’positions)

9

contracts.Wheresufficientlydeveloped

AmendmentProposalsforHedgingobligations

TextproposedbyCommission

AmendmentproposalbyEurelectric

Amendment4

Article18a(Directive)

Originaltext

Originaltext+amendments

1.NationalRegulatoryAuthoritiesshallensure

1.By...[sixmonthsafterthedateofentry

thatsuppliershaveinplaceandimplement

intoforceofthisamendingRegulation],and

appropriatehedgingstrategiestolimittherisk

regularlythereafter,regulatoryauthorities

ofchangesinwholesaleelectricitysupplyto

shallperformregularstressteststoverifythe

theeconomicviabilityoftheircontractswith

abilityofsupplierstofacemajorchangesin

customers,whilemaintainingliquidityonand

themarketdynamicsandtheirtechnicaland

pricesignalsfromshort-termmarkets.

economiccapacitytoensureresilience.Inaddition,inthelightoftheresultsofthosestresstests,regulatoryauthoritiesshall,whereappropriate,ensurethatsuppliershaveinplaceandimplementappropriatehedgingstrategies,takingintoaccountthesizeofthesupplieroritsmarketstructure,tolimittheriskofchangesinwholesaleelectricitysupplytotheeconomicviabilityoftheircontractswithcustomers,whilemaintainingliquidityonandpricesignalsfrom

short-termmarkets.MemberStatesshall

inhedgingmarkets.includingspecific

takeeffective,competitive,non-discriminatorymeasurestoensureliquidity

field.Regulatoryauthoritiesshallassessthe

measurestoavoidthelackoflevelplaying

.

impactsofthepossibilityofintroducingspecifichedgingtargetsforspecificsharesofsuppliers'portfolios,includingasregardsvolatilityofconsumerprices

2.Supplierhedgingstrategiesmayincludethe

2.Supplierhedgingstrategiesmayincludethe

useofpowerpurchaseagreements.Where

useofpowerpurchaseagreementsorother

sufficientlydevelopedmarketsforpower

appropriateinstruments,suchasforward

purchaseagreementsexistwhichallow

effectivecompetition,MemberStatesmay

marketsforpowerpurchaseagreements

requirethatashareofsuppliers’riskexposure

existwhichalloweffectivecompetition,

tochangesinwholesaleelectricitypricesis

MemberStatesmayrequirethatashareof

coveredusingpowerpurchaseagreements

suppliers’riskexposuretochangesin

forelectricitygeneratedfromrenewable

wholesaleelectricitypricesiscoveredusing

energysourcesmatchingthedurationoftheir

r

Key:

Council

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Eurelectricownproposedtext(notpresentintheco-legislators’positions)

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riskexposureontheconsumerside,subjecttocompliancewithUnioncompetitionlaw.

3.MemberStatesshallendeavourtoensuretheaccessibilityofhedgingproductsforcitizenenergycommunitiesandrenewableenergycommunities.”

ontheconsumerside,subjecttocompliancewithUnioncompetitionlaw.

3.MemberStatesshallputinplaceenablingconditionstoensuretheaccessibilityof

hedgingproductsforcitizen

communitiesandrenewable

communities.

energyenergy

3a.Electricitysuppliersshalltakeallreasonablestepstolimittheirriskofsupplyfailure.’;

Justification

Eurelectricrecommendstheuseofstresstestsasamoreefficientmethodfortestingthefinancialresilienceofretailer