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REPORT (COM(2021)0803 – C90468/2021 – 2021/0425(COD))

On the proposal for a directive of the European Parliament and of the Council on common rules for the internal markets in renewable and natural gases and in hydrogen (recast)

A-9-2023-0035

Committee on Industry, Research and Energy · Rapporteur: Jens Geier

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the Commission proposal for a directive on common rules for the internal markets in renewable and natural gases and in hydrogen (recast) sets a framework to decarbonise the gas market and build a Union hydrogen market. It requires Member States to phase out fossil gas, prioritise hydrogen for hard-to-decarbonise sectors, and give renewable gas priority for grid connection. It lays down consumer protection rules: switching within three weeks and 24 hours by 2026, comparison tools, billing information, protection of vulnerable customers and a ban on winter disconnections. It sets unbundling rules for natural gas and hydrogen network operators, third-party access to networks, storage and terminals, and integrated network planning. It bans new unabated fossil gas supply contracts beyond 2049 and sets a 70% greenhouse gas emission reduction threshold for low-carbon fuels and hydrogen.

Committee position. The Committee on Industry, Research and Energy proposes amendments to the Commission proposal, including prioritising hydrogen for industrial customers in hard-to-decarbonise sectors, promoting energy system integration, requiring local heating and cooling plans, and aligning consumer protection with the electricity market.

Key points

  1. The directive establishes common rules for transmission, distribution, supply and storage of gas using the natural gas and hydrogen systems, and consumer protection provisions.
  2. Member States must ensure all customers can choose their supplier and have more than one supply contract, and that no undue barriers to market entry and exit exist.
  3. The Commission must report on whether further measures, such as an indicative EU greenhouse gas intensity reduction target for gas by 2030, are needed, and may propose legislation.
  4. Public interventions in gas price setting are allowed only for vulnerable household customers and those affected by energy poverty, under conditions, and must be limited in time and notified to the Commission.
  5. Member States must protect vulnerable customers and those affected by energy poverty, prohibit disconnections in winter, and appoint a supplier of last resort.
  6. Final customers have the right to switch suppliers within three weeks, and by 2026 the technical switching process must take no longer than 24 hours on any working day.
  7. Household customers, microenterprises and small enterprises must not be charged switching-related fees; contract termination fees are allowed only under strict conditions.
  8. Member States must ensure access to at least one free comparison tool covering the gas market, with trust marks issued by a competent authority.
  9. Bills and billing information must be accurate, easy to understand and free of charge, and must include consumption, costs, greenhouse gas emission intensity and consumer rights information.
  10. Smart metering systems may be deployed only after a positive cost-benefit assessment; industrial customers may request a smart meter where deployment is negatively assessed.
  11. Hydrogen networks are subject to regulated third-party access, with negotiated access allowed until 31 December 2030; hydrogen storage and terminals have specific access rules.
  12. No long-term contracts for unabated fossil gas may be concluded beyond 2049; Member States may set an earlier end date.

Who is affected

  • Gas and hydrogen undertakings, which must comply with unbundling, third-party access, transparency and consumer protection rules.
  • Household and vulnerable customers, who gain switching rights, billing information, protection from disconnection and access to comparison tools.
  • Member States, which must transpose the directive, designate regulatory authorities and ensure market rules are enforced.
  • Renewable gas and low-carbon gas producers, who get priority grid connection and non-discriminatory access to the gas system.
  • Industrial customers in hard-to-decarbonise sectors, who are prioritised for hydrogen use and network access.

Figures and deadlines

  • 70% greenhouse gas emission reduction threshold for low-carbon hydrogen and low-carbon gas.
  • Fossil fuel comparator threshold of 94 gCO2eq/MJ for low-carbon fuels.
  • No long-term contracts for unabated fossil gas beyond the end of year 2049.
  • Negotiated third-party access to hydrogen networks allowed until 31 December 2030.
  • Switching supplier must be possible within three weeks, and by 2026 the technical process must take no longer than 24 hours.
  • Disconnections prohibited during ongoing disputes for a period of eight weeks.
  • Smart meter installation for industrial customers no later than four months after request.
  • Local heating and cooling plans required for municipalities with a total population of at least 35 000.

Legal basis: Article 194(2) of the Treaty on the Functioning of the European Union.