What changed between the draft committee report and the plenary report

Removed:Article 20 a (new): Article 20a / Common specifications for biomethane / The Commission is empowered to adopt implementing acts laying down common specifications in order to facilitate the integration of biomethane in the existing natural gas system or may set out those specifications in a network code pursuant to Article 53(1), point (b), where: / (a) those specifications are not covered by harmonised standards or parts thereof, the references of which have been published in the Official Journal of the European Union; / (b) the Commission observes undue delays in the adoption of requested harmonised standards, or considers that relevant harmonised standards are not sufficient; or / (c) the Commission has decided in accordance with the procedure referred to in Article 11(5) of Regulation (EU) No 1025/2012 to maintain with restriction or to withdraw the references to the harmonised standards or parts thereof by which those requirements are covered. / Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 61(3).

Added:(33) Transmission system operators could be allowed to reserve storages for natural gas exclusively for carrying out their functions and for the purpose of security of supply. The filling of these strategic stocks could be done by means of joint purchasing using the trading platform as mentioned in Article 10 of Commission Regulation (EU) No 312/2014 without prejudice to Union competition rules. Withdrawal of natural gas should only be possible for the transmission system operators to carry out their functions or in case of a declared emergency situation, as mentioned in Article 11(1) of that Regulation, in order not to interfere with the regular functioning of the market.

Removed:A more strategic approach to standardisation is needed in order to achieve the policy objectives of the Union. This new article aims to tackle the existing technical barriers to trade biomethane in the Union as well as to facilitate the integration of biomethane in the existing natural gas system, in line with the REPowerEU objectives.

Added:(34) Where a regional markets integration is undertaken, the relevant transmission system operators and regulatory authorities should address issues having a cross-border impact such as tariff structures, balancing regime, capacities at remaining cross-border points, investment plans and the fulfilment of transmissions system operators’ and regulatory authorities’ tasks.

Removed:Article 21 – title: The joint EU organisation of Gas Transmission System Operators and Hydrogen Network Operators

Added:(35) The energy transition and the continuing integration of the gas market will require further transparency on the allowed or target revenue of the transmission system operator. A number of decisions related to natural gas networks will be based on that information. For example, the transfer of transmission assets from a natural gas network to a hydrogen network or the implementation of an inter-TSO compensation mechanism (ITC) require more transparency than currently exists. In addition, the assessments of tariff evolutions on the long term requires clarity on both natural gas demand and cost projections. Transparency on allowed revenue should enable the latter. Regulatory authorities should, in particular, provide information on the methodology used to calculate the revenues of transmission system operators, the value of their regulatory asset base and its depreciation over time, the value of operational expenditures, the cost of capital applied to transmission system operators and the incentives and premia applied.

Removed:Inextricably linked to AM 39.

Added:(36) Transmission system operators’ expenditures are predominantly fixed costs. Their business model and the current national regulatory frameworks rely on the assumption of a long-term utilisation of their networks entailing long depreciation periods (30 to 60 years). In the context of the energy transition, regulatory authorities should therefore be able to anticipate gas demand decrease to modify the regulatory arrangements in due time and prevent a situation where the cost recovery of transmission system operators through tariffs threatens the affordability for consumers due to an increasing ratio of fixed costs to gas demand. Where necessary, the depreciation profile or remuneration of transmission assets could, for example, be modified.

Removed:Article 21 – paragraph 1: All transmission system operators and hydrogen network operators shall cooperate at Union level through the joint EU Organisation of Gas Transmission System Operators and Hydrogen Network Operators (ENTSOG&H), in order to promote the completion and functioning of the internal market in natural gas and hydrogen and cross-border trade and to ensure the optimal management, coordinated operation and sound technical evolution of the natural gas transmission network and of the hydrogen network.

Added:(37) Transparency on transmission system operators allowed or target revenue should be increased to enable benchmarking and an assessment by network users. Increased transparency should also facilitate cross-border cooperation and the setting up of ITC mechanisms between operators ▌ for regional integration ▌.

Removed:To facilitate the efficient and rapid planning and development of future hydrogen networks, including through repurposing of existing gas networks, and build on synergies between gas and hydrogen infrastructure, the joint EU organisation of Gas Transmission System Operators and Hydrogen Network Operators (ENTSOG&H) should be created as a continuation of ENTSOG. Members will include all EU gas TSOs and all EU HNOs. Due to the expansion of mandate and membership, a new identity reflecting a revised scope of activity is needed.

Added:▌

Removed:Article 22 – title: Organisation of the joint EU organisation of Gas Transmission System Operators and Hydrogen Network Operators (ENTSO G&H)

Added:(40) In order to increase efficiencies in the natural gas distribution networks in the Union and to ensure close cooperation with transmission system operators and the ENTSOG&H, an entity of distribution system operators in the Union (‘EU DSO entity’) should be provided for which also includes natural gas distribution system operators. The tasks of the EU DSO entity should be well-defined and its working method should ensure efficiency, transparency and representativeness among Union distribution system operators. The EU DSO entity should closely cooperate with the ENTSOG&H on the preparation and implementation of the network codes where applicable and should work on providing guidance on the integration inter alia of distributed generation and other areas, which relate to the management of distribution networks.

Removed:Inextricably linked to AM 39.

Added:(41) Distribution system operators have an important role to play when it comes to the integration of renewable gas and low-carbon gas into the system, as for example about half of the biomethane production capacity is connected to the distribution grid. In order to facilitate the participation of such gas in the wholesale market, production facilities connected to the distribution grid in all Member States should have access to the virtual trading point. Furthermore in accordance with the provisions of this Regulation distribution system operators and transmission system operators should work together to enable reverse flows from the distribution to the transmission network or to ensure the integration of the distribution system through alternative means, equivalent in effect, to facilitate the market integration of renewable gas and low carbon gas.

Removed:Article 22 – paragraph 1: 1. By 1 September 2024, the ENTSOG&H shall submit to the Commission and to ACER the draft statutes, a list of members and candidates awaiting certification as hydrogen network operator and draft rules of procedure, including the rules of procedures on the consultation of other stakeholders, of the ENTSOG&H in the case of changes of those documents or upon a reasoned request of the Commission or ACER.

Added:(42) The integration of growing volumes of renewable gas and low-carbon gas in the European natural gas system will change the quality of natural gas transported and consumed in Europe. To ensure unhindered cross-border flow of natural gas, maintain the interoperability of markets and enable market integration, it is necessary to increase transparency on gas quality and on the costs of its management, provide for a harmonised approach on the roles and responsibilities of regulatory authorities and system operators and reinforce cross-border coordination. While ensuring a harmonised approach on gas quality for cross-border interconnection points, Member States’ flexibility as regards the application of gas quality standards in their domestic natural gas systems should be maintained.

Removed:Article 22 – paragraph 1 a (new): 1a. In preparation for its compliance with paragraph 1, the ENTSOG&H shall conduct a public stakeholder consultation. The ENTSOG&H shall take into account the results of that consultation .

Added:(43) The blending of hydrogen into the natural gas system should be a last resort solution, as it is less efficient compared to the use of hydrogen in its pure form and diminishes the value of hydrogen. It also affects the operation of gas infrastructure, end-user applications, and the interoperability of cross-border systems. Member States should therefore prioritise the production and use of renewable and low-carbon hydrogen in their pure form in the hard-to-decarbonise sectors, such as in industry and transport applications. However, all efforts should be made to avoid the use of hydrogen for applications with regard to which more energy-efficient alternatives exist, such as the heating of buildings, and the production of hot water for sanitary use and of low-grade heat for industrial processes. This Regulation should promote the most efficient uses of hydrogen, but Member States should retain the possibility to decide on whether to apply blending. Therefore, harmonised rules on coordination on cross-border restrictions due to differences in hydrogen blending levels will limit the risk of market segmentation. ▌

Removed:Article 22 – paragraph 4: 4. Within three months of the day of receipt of the Commission's opinion the ENTSOG&H shall adopt and publish the revised statutes and rules of procedure of the ENTSOG&H.

Added:(44) A strong cross-border coordination and dispute settlement process between transmission system operators on gas quality, including on biomethane and hydrogen blends, is essential to facilitate efficient transport of natural gas across natural gas systems within the Union and thereby to move towards greater internal market integration. Enhanced transparency requirements on gas quality parameters, including on gross calorific value, Wobbe Index and oxygen content, and hydrogen blends and their development over time combined with monitoring and reporting obligations should contribute to the well-functioning of an open and efficient internal market in natural gas.

Removed:Article 22 – paragraph 4 a (new): 4a. The statutes of the ENTSOG&H referred to in paragraph 1 shall ensure the following: / (a) that participation in the work of the ENTSOG&H is limited to registered members with the possibility of delegation within the membership; / (b) that strategic decisions regarding the activities of the ENTSOG&H as well as policy guidelines for the board of the ENTSOG&H are adopted by the board of the ENTSOG&H; / (c) that decisions of the general assembly are adopted in line with paragraph 4b; / (d) that the board of the ENTSOG&H is elected by the general assembly for a mandate of a maximum of four years; / (e) that the board nominates the President and the Vice-President from among the members of the board of the ENTSOG&H; / (f) that cooperation between transmission system operators for gas and hydrogen network operators pursuant to Article 21 is led by the board of the ENTSOG&H; / (g) on the basis of a proposal by the board of the ENTSOG&H, that the Secretary General is appointed by the general assembly for a mandate of four years, renewable once.

Added:(45) In order to amend non-essential elements of this Regulation and to supplement this Regulation in respect of non-essential elements of certain specific areas which are fundamental for market integration, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. The Commission should also ensure that the public has access to all documents submitted to the Commission in connection with the adoption of the delegated acts.

Removed:By enshrining the key principles for the ENTSOG&H statutes in the Gas Regulation, a clear framework can be defined regarding the structure of the organisation. This framework will provide clarity and direction for all gas TSOs and HNOs before joining the ENTSOG&H and minimise potential disputes during the transitional phase.

Added:(46) Commission Regulation (EU) 2015/703 sets out interoperability and data exchange rules for the natural gas system, in particular with respect to interconnection agreements, including rules for flow control, measurement principles for gas quantity and quality, rules for the matching process and for the allocation of gas quantities, communication procedures in case of exceptional events; common set of units, gas quality, including rules on managing cross-border trade restrictions due to gas quality differences and due to differences in odorisation practices, short- and long-term gas quality monitoring and information provision; data exchange, and reporting on gas quality; transparency, communication, information provision and cooperation among relevant market participants.

Removed:Article 22 – paragraph 4 b (new): 4b. The rules of procedure referred to in paragraph 1 shall safeguard the fair and proportionate treatment of its members and shall reflect the diverse geographical, demographic, and economic structure of its members. In particular, they shall provide for the board to be composed of: / (a) one President and one Vice-President designated respectively from the hydrogen network operators and the transmission system operators groups or vice-versa; and / (b) board members that are designated from both the transmission system operators' representatives and the hydrogen network operators' representatives, ensuring a fair balance between hydrogen network operators and transmission system operators. / The statutes of ENTSOG&H shall contain a minimum number of board members per category.

Added:(47) In order to ensure optimal management of the Union hydrogen network and to allow trading and supplying hydrogen across borders in the Union, ENTSO for Gas should be renamed the joint EU organisation for Gas Transmission System Operators and Hydrogen Network Operators (the ‘ENTSOG&H’) and incorporate Hydrogen Network Operators into its membership and its tasks should be expanded to include hydrogen activities. Those tasks ▌should be carried out in compliance with Union competition rules, be well-defined and be performed in a manner representative to gas and hydrogen. The working method of the ENTSOG&H should ensure efficiency and transparency ▌. The network codes prepared by the ENTSOG&H should not replace the necessary national network codes for non cross-border issues.

Removed:By enshrining the key principles for the ENTSOG&H statutes in the Gas Regulation, a clear framework can be defined regarding the structure of the organisation. This framework will provide clarity and direction for all gas TSOs and HNOs before joining the ENTSOG&H and minimise potential disputes during the transitional phase.

Added:▌

Removed:Article 22 – paragraph 4 c (new): 4c. The statutes will provide for clear organisational rules, including with regard to the budget, within the ENTSOG&H while ensuring efficiency and shared services being provided by the ENTSOG&H staff to both gas transmission system operators and transmission system operators.

Added:(49) In order to ensure the transparent and efficient development of the hydrogen network in the Union, the ENTSOG&H should establish, publish and regularly update a single, non-binding Union-wide ten-year network development plan for gas and hydrogen paying due consideration to the needs of the two distinct gas and developing hydrogen markets. Viable hydrogen transportation networks and necessary interconnections, relevant from a commercial point of view, should be included in that network development plan. The ENTSOG&H should continue to participate in the development of the energy system wide cost-benefit analysis – including the interlinked energy market and network model including electricity, gas and hydrogen transport infrastructure as well as storage, LNG and electrolysers, the scenarios for the ten-year network development plans and the infrastructure gaps identification report as set out in Articles 11, 12 and 13 of Regulation (EU) 2022/869 of the European Parliament and of the Council for the development of the lists of projects of common interest. For that purpose, the ENTSOG&H should closely cooperate with the ENTSO for Electricity ▌to facilitate system integration. ▌

Removed:By enshrining the key principles for the ENTSOG&H statutes in the Gas Regulation, a clear framework can be defined regarding the structure of the organisation. This framework will provide clarity and direction for all gas TSOs and HNOs before joining the ENTSOG&H and minimise potential disputes during the transitional phase.

Added:(50) All market participants have an interest in the work expected of the ENTSOG&H. An effective consultation process is therefore essential. Overall, the ENTSOG&H should seek, build on and integrate in its work experience with infrastructure planning, development and operation in cooperation with other relevant market participants and their associations.

Removed:Article 23 – title: Tasks of the joint EU organisation of Gas Transmission System Operators and Hydrogen Network Operators (ENTSOG&H)

Added:(51) Given that more effective progress may be achieved through an approach at regional level, hydrogen network operators should set up regional structures within the overall cooperation structure, while ensuring that results at regional level are compatible with network codes and Union-wide non-binding ten-year network development plans. Member States should promote cooperation and monitor the effectiveness of the network at regional level.

Removed:Article 23 – paragraph 1: 1. The ENTSOG&H shall elaborate network codes in the areas set out in Articles 53 and 54 upon a request addressed to it by the Commission in accordance with Article 53(9) or Article 54(9).

Added:(52) Transparency requirements are necessary to ensure that trust in the emerging hydrogen markets in the Union can develop among market participants. Equal access to information on the physical status and functioning of the hydrogen system is necessary to enable all market participants to assess the overall demand and supply situation and to identify the reasons for market price developments. Information should be always disclosed in a meaningful and easily accessible manner and on a non-discriminatory basis.

Removed:Article 23 – paragraph 2: 2. The ENTSOG&H may elaborate network codes in the areas set out in Articles 53 and 54 with a view to achieving the objectives set out in Article 21 where those network codes do not relate to areas covered by a request addressed to it by the Commission. Those network codes shall be submitted to ACER for an opinion. That opinion shall be duly taken into account by the ENTSOG&H.

Added:(53) The ENTSOG&H will establish a central, web-based platform for making available all data relevant for market participants to gain effective access to the network.

Removed:Article 23 – paragraph 3 – introductory part: 3. The ENTSOG&H shall adopt:

Added:(53a) In order to promote overall energy system integration, sector coupling and the increase of efficiency and synergies across the energy sectors, the ENTSOG&H and ENTSOE shall cooperate closely with each other. This shall include, in particular, cooperation on the development of the energy system wide cost-benefit analysis, capacity requirements across the energy systems, and the interlinked energy markets and network modelling including electricity, gas and hydrogen transport infrastructure as well as storage, the Union’s climate and energy efficiency objectives, LNG and hydrogen terminals and electrolysers referred to in Article 11 of Regulation (EU) 2022/869, the scenarios for the Ten-Year Network Development Plans referred to in Article 12 of Regulation (EU) 2022/869 and the infrastructure gaps identification referred to in Article 13 of Regulation (EU) 2022/869.

Change 2

Changed:Article(53b) 23The –achievement paragraphof 3the –offshore pointwind b:development (b)targets aof non-bindingthe Union-wideREPowerEU ten-yearPlan networkare of paramount importance development planfor (Unionthe -wideneeded networkacceleration of the decarbonisation and the development plan)of the market for gasrenewable hydrogen. Therefore, where technically possible, ENTSOG&H and hydrogenENTSO-E networksshould includingharmonise their work under the European Plan for Priority Corridors for Hydrogen consistent(consistent with Annex I to Regulation (EU) 2022/869 and reinforced by the REPowerEU Plan,Plan) and ahigh-level Europeanstrategic supplyintegrated adequacyoffshore outlook,network everydevelopment twoplans years;referred theto Union-widein networkArticle development14(2) planof forRegulation gas(EU) and2022/869 hydrogenin shall,order whereto possible,ensure bethat harmonisedthe withsite and size of the Union-widehydrogen networkinjection developmentpoints planacross forthe electricity;two systems are appropriate.

Change 3

Removed:Article 23 – paragraph 3 – point c: (c) recommendations relating to the coordination of technical cooperation between Union and third-country transmission system operators and third-country hydrogen network operators;

Added:(54) The conditions for access to hydrogen networks in the early phase of market development should ensure efficient operation, non-discrimination and transparency for network users while preserving sufficient flexibility for operators. Limiting the maximum duration of capacity contracts should reduce the risk of contractual congestion and capacity hoarding.

Removed:Article 23 – paragraph 3 – point c a (new): (ca) recommendations relating to the coordination of technical cooperation in the Union between gas transmission and distribution system operators on one hand, and hydrogen network operators on the other;

Added:(55) General conditions for granting third-party access to hydrogen storage facilities and hydrogen terminals should be set out in order to ensure non-discriminatory access and transparency for network users.

Removed:Article 23 – paragraph 3 – point g: (g) a gas quality monitoring report by 15 May 2024 and a gas and hydrogen quality monitoring report by 15 May 2026 at the latest and every two years afterwards, including developments of gas quality parameters, developments of the level and volume of hydrogen blended into the natural gas system, forecasts for the expected development of gas quality parameters and of the volume of hydrogen blended into the natural gas system, the impact of blending hydrogen on cross-border flows as well as information on cases related to differences in gas quality specifications or in specifications of blending levels and how such cases were settled.

Added:(56) Hydrogen network operators should cooperate to create network codes for providing and managing transparent and non-discriminatory access to the networks across borders and to ensure coordinated development of the network in the Union, including the creation of interconnection capacities. The network codes should be in line with non-binding framework guidelines developed by ACER. ACER should have a role in reviewing, based on matters of fact, draft network codes, including their compliance with the framework guidelines, and it should be enabled to recommend them for adoption by the Commission. ACER should assess proposed amendments to the network codes and it should be enabled to recommend them for adoption by the Commission. Hydrogen network operators should operate their networks in accordance with those network codes.

Removed:Article 23 – paragraph 3 – point h: (g) the gas and hydrogen quality monitoring report shall also cover the development for the areas listed in point (h) where as far as relevant for the distribution network, based on information provided by the entity of distribution system operators in the Union (‘EU DSO entity’).

Added:(57) The network codes prepared by the ENTSOG&H are not intended to replace the necessary national rules for non-cross-border issues.

Removed:Article 23 – paragraph 4 – introductory part: 4. The European supply adequacy outlook referred to in paragraph 3, point (b), shall cover the overall adequacy of the gas and hydrogen systems to supply current and projected demands for gas and hydrogen for the next five-year period as well as for the period between five and 10 years from the date of that outlook. The European supply adequacy outlook shall build on national supply outlooks prepared by each individual gas transmission system operator and hydrogen network operator.

Added:(58) The quality of hydrogen transported and consumed in Europe can vary depending on its production technology and transportation specificities. Therefore, a harmonised approach at Union level to hydrogen quality management at cross-border interconnectors should lead to the cross-border flow of hydrogen and to market integration.

Removed:Inextricably linked to AM 39.

Added:(59) Where the regulatory authority considers it necessary, hydrogen network operators could become responsible for managing hydrogen quality in their networks, within the framework of applicable hydrogen quality standards, ensuring reliable and stable hydrogen quality for end-consumers.

Removed:Article 23 – paragraph 4 – subparagraph 1: The Union-wide network development plan referred to in paragraph 3, point (e), shall include the modelling of the integrated network, including hydrogen networks, scenario development, a European supply adequacy outlook and an assessment of the resilience of the system.

Added:(60) A strong cross-border coordination and dispute settlement process between hydrogen system operators is essential to facilitate the transport of hydrogen across hydrogen networks within the Union and thereby to move towards greater internal market integration. Enhanced transparency requirements on hydrogen quality parameters and on their development over time combined with monitoring and reporting obligations should contribute to the well-functioning of an open and efficient internal market in hydrogen.

Removed:Inextricably linked to AM 39.

Added:(61) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers in accordance with Article 291 of TFEU should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

Removed:Article 23 – paragraph 6: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)