What changed between the draft committee report and the plenary report

Added:1. Each transmission, storage or LNG system operator shall:

Added:(a) operate, maintain, develop and decommission under economic conditions secure, reliable and efficient transmission, storage or LNG facilities to secure an open market, with due regard to the environment, Union and national energy and climate objectives, the obligations laid down in ▌ Regulation (EU) .../ …+, ensure adequate means to meet service obligations;

Added:(b) not discriminate between system users or classes of system users, specifically in favour of its related undertakings;

Added:(c) provide to any other transmission system operator, any other storage system operator, any other LNG system operator or any distribution system operator, sufficient information to ensure that the transport and storage of natural gas may take place in a manner compatible with the secure and efficient operation of the interconnected system;

Added:(d) provide system users with the information they need for efficient access to the system.

Added:2. Each transmission system operator shall build sufficient cross-border capacity to integrate European transmission infrastructure accommodating all economically reasonable and technically feasible demands for capacity and taking into account security of gas supply.

Added:3. Transmission system operators shall cooperate with distribution system operators to ensure the effective participation of market participants connected to the grid in retail, wholesale and balancing market.

Added:4. Transmission system operators shall ensure efficient gas quality management in their facilities in line with applicable gas quality standards in order to consider the quality requirements of different end-user applications.

Added:5. Rules adopted by transmission system operators for balancing the gas transmission system shall be objective, transparent and non-discriminatory, including rules for the charging of system users of their networks for energy imbalance. Terms and conditions, including rules and tariffs, for the provision of such services by transmission system operators shall be established pursuant to a methodology compatible with Article 72(7) in a non-discriminatory and cost-reflective way and shall be published.

Added:6. The regulatory authorities where Member States have so provided or Member States may require transmission system operators to comply with minimum standards for the maintenance and development of the transmission system, including interconnection capacity.

Added:7. Member States may provide that one or several responsibilities listed in paragraph 1 are assigned to a transmission system operator other than the one which owns the transmission system to which the responsibilities concerned would otherwise be applicable. The transmission system operator to which the tasks are assigned shall be certified under the ownership unbundling, the independent system operator or the independent transmission system operator model and fulfil the requirements provided for in Article 54, but shall not be required to own the transmission system it is responsible for.

Added:8. The transmission system operator shall fulfil the requirements provided for in Chapter IX and be certified in accordance with Article 57. This shall be without prejudice to the possibility for transmission system operators which are certified under the ownership unbundling, the independent system operator or the independent transmission system operator model to delegate, on their own initiative and under their supervision, certain tasks to other transmission system operators which are certified under the ownership unbundling, the independent system operator or the independent transmission system operator model, where the delegation of tasks does not endanger the effective and independent decision-making rights of the delegating transmission system operator.

Added:9. LNG and storage system operators shall cooperate, within one Member State and regionally, to ensure the most efficient use of facilities capacities and synergies between these facilities, taking into account system integrity and operation and minimised methane leakage, inter alia, by prioritising co-located uses.

Added:10. Transmission system operators shall procure the energy they use for the carrying out of their functions according to transparent, non-discriminatory and market based procedures.

Added:Article 36 Confidentiality for transmission system operators and transmission system owners

Added:1. Without prejudice to Article 68 or any other legal duty to disclose information, each transmission, storage or LNG system operator, and each transmission system owner, shall preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its activities, and shall prevent information about its own activities which may be commercially advantageous from being disclosed in a discriminatory manner. If the transmission, storage or LNG system operator, or the transmission system owner is part of a vertically integrated undertaking, it shall not disclose, in particular, any commercially sensitive information to the remaining parts of the vertically integrated undertaking other than transmission system operators, distribution system operators or hydrogen network operators, unless this is necessary for carrying out a business transaction. In order to ensure the full respect of the rules on information unbundling, Member States shall ensure that, where the transmission system operator is unbundled in accordance with the rules on the independent system operator for natural gas set out in Section 2 of Chapter IX, the transmission system owner including, in the case of a combined operator, the distribution system operator, and the remaining part of the vertically integrated undertaking other than transmission system operators, distribution system operators or hydrogen network operators do not use joint services, such as joint legal services, apart from purely administrative or IT functions.

Added:2. Transmission, storage or LNG system operators shall not, in the context of sales or purchases of natural gas by related undertakings, misuse commercially sensitive information obtained from third parties in the context of providing or negotiating access to the system.

Added:3. Information necessary for effective competition and the efficient functioning of the market shall be made public. That obligation shall be without prejudice to protecting commercially sensitive information.

Added:Article 37 Decision-making powers regarding the connection of new production facilities for renewable gas and low-carbon gas to the transmission system

Added:1. The transmission system operator shall establish and publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable gas and low-carbon gas in line with the capacities identified in the ten-year network development plan referred to in Article 51. Those procedures shall be subject to approval by the regulatory authorities.

Added:2. The transmission system operators shall not be entitled to refuse economically reasonable and technically feasible connection requests of a new or of an existing, but not yet connected production facility installation for renewable gas and low-carbon gas in line with the capacities identified in the ten-year network development plan referred to in Article 51. Production facilities installations for renewable gas shall have priority to connect over facilities for low carbon gas.

Added:2a. For the purpose of the swift implementation of grid connection of renewable gas production, Member States shall ensure that:

Added:(a) the transmission system operator complies with reasonable time limits to assess the requests for the injection of renewable gas, make an offer and implement the connection, under the monitoring of the regulatory authorities carried out in accordance with Article 72(1), point (t);

Added:(b) permitting procedures for the implementation of the connection are not hampered by a lack of administrative capacity and do not create a hurdle to the achievement of the national renewable energy target.

Added:Article 38 Decision-making powers regarding the connection to the transmission system and the hydrogen network

Added:1. The transmission system operator and the hydrogen network operator shall establish and publish transparent and efficient procedures and tariffs for non-discriminatory connection of natural gas and hydrogen storage facilities, LNG regasification facilities, hydrogen terminals and industrial customers to the transmission system and the hydrogen network in line with the capacities identified in the ten-year network development plan referred to in Article 51. Those procedures shall be subject to approval by the regulatory authority.

Added:2. The transmission system operator and the hydrogen network operator shall not be entitled to refuse the connection of a new natural gas or hydrogen storage facility, LNG regasification facility, hydrogen terminal or industrial customer on the grounds of possible future limitations to available network capacities or additional costs linked with necessary capacity increase. The transmission system operator and hydrogen network operator shall ensure sufficient entry and exit capacity for the new connection.

Added:Distribution system operation of natural gas

Added:Article 39 Designation of distribution system operators and hydrogen distribution network operator

Added:Following a transparent procedure, Member States shall designate, or shall require undertakings which own or are responsible for distribution systems or hydrogen distribution networks to designate, for a period of time to be determined by Member States, having regard to considerations of efficiency, the Union’s climate and energy targets and economic balance, one or more distribution system operators or hydrogen distribution network operators and shall ensure that those operators act in accordance with Articles 40, 42 and 43.

Added:1. Each distribution system operator shall be responsible for ensuring the long-term ability of the system to meet reasonable demands for the distribution of gas in accordance with Articles 51 and 52b, including for biogas and biomethane assets, and for operating, maintaining, developing and decommissioning under economic conditions a secure, reliable and efficient system in its area, with due regard for the environment, the obligations laid down in ▌ Regulation (EU) .../…+ and energy efficiency.

Added:2. When so decided by regulatory authorities, distribution system operators may be responsible for ensuring efficient gas quality management in their facilities in line with applicable gas quality standards, where necessary for system management due to the injection of renewable gas and low-carbon gas.

Added:3. In any event, the distribution system operator shall not discriminate between system users or classes of system users, particularly in favour of its related undertakings.

Added:4. Each distribution system operator shall provide any other distribution, transmission, LNG, and/or storage system operator with sufficient information to ensure that the transport and storage of natural gas takes place in a manner compatible with the secure and efficient operation of the interconnected system.

Added:5. Each distribution system operator shall provide system users with the information they need for efficient access to, including use of, the system.

Added:6. Where a distribution system operator is responsible for balancing the distribution system, rules adopted by it for that purpose shall be objective, transparent and non-discriminatory, including rules for the charging of system users for energy imbalance. Terms and conditions, including rules and tariffs, for the provision of such services by distribution system operators shall be established pursuant to a methodology compatible with Article 72(7) in a non-discriminatory and cost-reflective way and shall be published.

Added:7. Distribution system operators shall cooperate with transmission system operators to ensure the effective participation of market participants connected to their grid in retail, wholesale and balancing market in the entry-exit system to which the distribution system belongs to.

Added:8. The distribution system operators shall establish and publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable gas and low-carbon gas. Those procedures shall be subject to approval by the regulatory authorities.

Added:9. The distribution system operators shall not be entitled to refuse economically reasonable and technically feasible connection requests of a new or existing but not yet connected production facility installation for renewable gas and low-carbon gas in accordance with the Union energy and climate objectives and the capacities identified in the distribution network plans referred to in Article 52b. Production facilities for renewable gas shall have priority to connect over production facilities for low carbon gas.

Added:Article 41 Decision-making powers regarding the connection of new production facilities for renewable gas and low-carbon gas to the distribution system

Added:Regulatory authorities shall oblige the distribution system operator to publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable gas and low-carbon gas. Those procedures shall be subject to approval by the regulatory authorities.

Added:For the purpose of the swift implementation of network connection of renewable gas production, Member States shall ensure that:

Added:(a) the distribution system operator complies with reasonable time limits to assess the requests for the injection of renewable gas, make an offer and implement the connection, under the monitoring of the regulatory authorities carried out in accordance with Article 72(1), point (t);

Added:(b) permitting procedures for the implementation of the connection are not hampered by a lack of administrative capacity and that do not create a hurdle to the achievement of the national renewable energy target.

Added:Article 42 Unbundling of distribution system operators and hydrogen distribution network operators

Added:1. Where the distribution system operator or the hydrogen distribution network operator is part of a vertically integrated undertaking, it shall be independent at least in terms of its legal form, organisation and decision making from other activities not relating to distribution. Those rules shall not create an obligation to separate the ownership of assets of the distribution system or the hydrogen distribution network from the vertically integrated undertaking.

Added:2. In addition to the requirements under paragraph 1, where the distribution system operator or the hydrogen distribution network operator is part of a vertically integrated undertaking, it shall be independent in terms of its organisation and decision-making from the other activities not related to distribution. In order to achieve this, the following minimum criteria shall apply:

Added:(a) the persons responsible for the management of the distribution system operator or the hydrogen distribution network operator shall not participate in company structures of the integrated natural gas undertaking or the vertically integrated undertaking responsible, directly or indirectly, for the day-to-day operation of the production, transmission, transportation and supply of gas;

Added:(b) appropriate measures shall be taken to ensure that the professional interests of persons responsible for the management of the distribution system operator or the hydrogen distribution network operator are taken into account in a manner that ensures that they are capable of acting independently;

Added:(c) the distribution system operator or the hydrogen distribution network operator shall have effective decision-making rights, independent from the integrated natural gas undertaking or the vertically integrated undertaking, with respect to assets necessary to operate, maintain or develop the network; in order to fulfil those tasks, the distribution system operator or the hydrogen distribution network operator shall have at its disposal the necessary resources including human, technical, financial and physical resources; this shall not prevent the existence of appropriate coordination mechanisms to ensure that the economic and management supervision rights of the parent company in respect of return on assets, regulated indirectly in accordance with Article 72(7) in a subsidiary are protected; in particular, this shall enable the parent company to approve the annual financial plan, or any equivalent instrument, of the distribution system operator or the hydrogen distribution network operator and to set global limits on the levels of indebtedness of its subsidiary; it shall not permit the parent company to give instructions regarding day-to-day operations, nor with respect to individual decisions concerning the construction or upgrading of distribution lines, that do not exceed the terms of the approved financial plan, or any equivalent instrument;

Added:(d) the distribution system operator or the hydrogen distribution network operator shall establish a compliance programme, which sets out measures taken to ensure that discriminatory conduct is excluded, and ensure that observance of it is adequately monitored; the compliance programme shall set out the specific obligations of employees to meet that objective; an annual report, setting out the measures taken, shall be submitted by the person or body responsible for monitoring the compliance programme, the compliance officer of the distribution system operator or the hydrogen distribution network operator, to the regulatory authority referred to in Article 70(1) and shall be published; the compliance officer of the distribution system operator or the hydrogen distribution network operator shall be fully independent and shall have access to all the necessary information of the distribution system operator or hydrogen distribution network operator and any affiliated undertaking to fulfil his task.

Added:3. Where the distribution system operator or the hydrogen distribution network operator is part of a vertically integrated undertaking, the Member States shall ensure that the activities of the distribution system operator or the hydrogen distribution network operator are monitored by regulatory authorities or other competent bodies so that it cannot take advantage of its vertical integration to distort competition. In particular, vertically integrated distribution system operators or the hydrogen distribution network operators shall not, in their communication and branding, create confusion in respect of the separate identity of the supply branch of the vertically integrated undertaking.

Added:3a. The distribution system operator and the hydrogen distribution network operator shall comply with Articles 64 and 69.

Added:4. Member States may decide not to apply paragraphs 1, 2 and 3 to integrated natural gas undertakings serving less than 100 000 connected customers.

Added:1. Without prejudice to Article 68 or any other legal duty to disclose information, each distribution system operator shall preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its business, and shall prevent information about its own activities which may be commercially advantageous from being disclosed in a discriminatory manner.

Added:2. Distribution system operators shall not, in the context of sales or purchases of natural gas by related undertakings, abuse commercially sensitive information obtained from third parties in the context of providing or negotiating access to the system.

Added:1. Member States may provide for regulatory authorities or other competent authorities to classify a system which distributes natural gas within a geographically confined industrial, commercial or shared services site and does not, without prejudice to paragraph 4, supply household customers, as a closed distribution system if:

Added:(a) for specific technical or safety reasons, the operations or the production process of the users of that system are integrated; or

Added:(b) that system distributes natural gas primarily to the owner or operator of the system or to their related undertakings.

Added:2. Member States may provide for regulatory authorities to exempt the operator of a closed natural gas distribution system from the requirement under Article 27(1) that tariffs, or the methodologies underlying their calculation, are approved prior to their entry into force in accordance with Article 72.