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REPORT (COM(2023)0148 – C90049/2023 – 2023/0077B(COD))

On the proposal for a directive of the European Parliament and of the Council amending Directives (EU) 2018/2001 and (EU) 2019/944 as regards improving the Union’s electricity market design

A-9-2024-0151

Committee on Industry, Research and Energy · Rapporteur: Nicolás González Casares

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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 amending Directives (EU) 2018/2001 and (EU) 2019/944 on the Union's electricity market design. It lays down rules on flexible grid connection agreements, fixed-price contracts, supplier hedging and last-resort suppliers, and creates a right to energy sharing. It protects vulnerable customers and customers affected by energy poverty from disconnection and lets Member States set regulated prices during a declared electricity price crisis. It exempts Estonia, Latvia, Lithuania and Cyprus from certain balancing and storage rules for a transitional period.

Committee position. The committee proposes that Parliament adopt its first-reading position as set out in the amended version of the Commission proposal, and calls on the Commission to refer the matter to Parliament again if it substantially amends its proposal.

Key points

  1. Direct price support schemes must be granted as a market premium, which may be sliding or fixed.
  2. Member States must let customers have more than one electricity supply contract or energy sharing agreement at the same time, with more than one metering and billing point at a single connection point.
  3. Regulatory authorities must develop a framework for operators to offer flexible connection agreements where network capacity is limited or absent.
  4. Final customers must be able to request a fixed-term, fixed-price contract of at least one year from every supplier with more than 200 000 final customers; suppliers may not unilaterally change or end such contracts.
  5. Suppliers must give customers a summary of key contractual terms before a contract is concluded or extended, and must not exclude fixed-price customers from demand response or energy sharing.
  6. Households, small and medium-sized enterprises and public bodies have the right to participate in energy sharing as active customers, within the same bidding zone or a more limited area.
  7. Active customers may appoint a third party as energy sharing organiser, who may own or manage a storage or renewable generation facility of up to 6 MW.
  8. Regulatory authorities must ensure suppliers have appropriate hedging strategies and take steps to limit supply failure risk.
  9. Member States must set up a supplier-of-last-resort regime ensuring continuity of supply at least for household customers, with service for at least six months.
  10. Member States must fully protect vulnerable customers and customers affected by energy poverty from electricity disconnections, and suppliers may not disconnect or terminate contracts over a pending complaint.
  11. Distribution system operators must publish information on available connection capacity and update it at least quarterly, and answer connection requests within three months.
  12. The Council may declare a regional or Union-wide electricity price crisis, allowing Member States to set regulated prices for small and medium-sized enterprises and below-cost prices under conditions.

Who is affected

  • Household customers, including vulnerable customers and those affected by energy poverty, gain protection from disconnection and access to fixed-price contracts.
  • Small and medium-sized enterprises may benefit from regulated prices during a declared electricity price crisis.
  • Electricity suppliers must offer fixed-price contracts, hedge their portfolios and act as suppliers of last resort.
  • Transmission and distribution system operators must offer flexible connections and publish capacity information.
  • Estonia, Latvia, Lithuania and Cyprus get transitional exemptions from certain balancing and storage rules.

Figures and deadlines

  • Suppliers with more than 200 000 final customers must offer fixed-term, fixed-price contracts.
  • Energy sharing generation facilities up to 6 MW capacity.
  • Households with installed capacity up to 10,8 kW for single households and up to 50 kW for multi-apartment blocks are exempt from supplier obligations.
  • Member States may raise the threshold to 30 kW for single households and to between 40 kW and 100 kW for multi-apartment blocks.
  • Plug-in mini-solar systems of up to 800 W capacity may be promoted.
  • At least 10 % on average of energy shared by public-authority projects should be accessible to vulnerable customers.
  • Electricity price crisis declared if wholesale prices reach at least two and a half times the previous five-year average and at least 180 EUR/MWh, expected to continue for at least six months.
  • Retail price increases in the range of 70 % expected to continue for at least three months.

Legal basis: Article 294(2) and Article 194(2) of the Treaty on the Functioning of the European Union.