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DRAFT REPORT (2023/2140(DEC))

On discharge in respect of the implementation of the budget of the European Union Agency for the Cooperation of Energy Regulators (ACER) for the financial year 2022

CONT-PR-753506

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

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This draft report by the Committee on Budgetary Control concerns discharge for the European Union Agency for the Cooperation of Energy Regulators (ACER) for the 2022 financial year. It proposes granting the Director discharge and approving the closure of the accounts, with observations in a resolution. The resolution notes the Agency's 2022 budget of EUR 24 827 843 and the Court of Auditors' reasonable assurance that the accounts are reliable and the transactions legal and regular. It raises concerns about high carry-overs, weaknesses in monitoring and reporting, governance independence, website transparency, procurement, and an internal control breach, and asks the Agency and the Commission to act.

Committee position. The rapporteur proposes that Parliament grant the Director of ACER discharge for the 2022 budget and approve the closure of the accounts, while setting out observations in a resolution on budget management, performance, staff, procurement, transparency, governance and internal control.

Key points

  1. Parliament grants the Director of ACER discharge for the implementation of the Agency's 2022 budget and sets out its observations in a resolution.
  2. Parliament approves the closure of ACER's accounts for the 2022 financial year.
  3. The Agency's final 2022 budget was EUR 24 827 843, up 5,25 % from 2021, funded mainly by collected fees and the Union contribution.
  4. The Court of Auditors obtained reasonable assurance that the Agency's annual accounts are reliable and the underlying transactions legal and regular.
  5. Budget implementation reached a commitment appropriations rate of 99,26 % and a payment appropriations execution rate of 70,12 %, short of the 75 % target.
  6. Parliament notes with concern high carry-overs of commitment appropriations, EUR 7,2 million (29,4 %) in 2022, and insists this could indicate weak budgetary planning or a breach of annuality.
  7. 82 % of the work programme was achieved or achieved with a small issue, while 18 % was not achieved or was deprioritised or postponed due to limited human resources; Parliament recommends reassessing feasibility.
  8. Parliament acknowledges the Agency's additional tasks following the Russian aggression on Ukraine and welcomes its efforts on energy security and market measures.
  9. Parliament takes note of the Court's finding of weaknesses in the Agency's monitoring and reporting framework, which risks undermining accountability and stakeholder understanding.
  10. Parliament regrets that the Agency's website is run ineffectively, lacks transparency and does not always comply with regulatory requirements, and calls for urgent improvements.
  11. Parliament is concerned that the Agency's governance structure hampers its effectiveness and independence, and calls on the Commission to evaluate and propose improvements.
  12. Parliament notes a payment order of EUR 714 720 authorised beyond a delegated limit of EUR 500 000, indicating a weakness in internal controls, and calls on the Agency to enforce limits per payment order.

Who is affected

  • ACER and its Director: must address observations on carry-overs, monitoring, transparency, procurement and internal controls.
  • The Commission: asked to evaluate and propose improvements to ACER's governance, independence and enforcement powers.
  • ACER's Administrative Board and Board of Regulators: face calls for more transparency in decision-making and declarations of interests.
  • ACER's staff: affected by observations on gender balance and conflict-of-interest rules.

Figures and deadlines

  • EUR 24 827 843: final budget of ACER for 2022.
  • 5,25 %: increase in ACER's 2022 budget compared to 2021.
  • 99,26 %: budget implementation rate of current year commitment appropriations in 2022.
  • 70,12 %: current year payment appropriations execution rate in 2022, against a target of 75 %.
  • EUR 7,2 million (29,4 %): carry-overs of commitment appropriations in 2022.
  • EUR 5,5 million (66,2 %): appropriations under Title III related to operational expenditure.
  • 82 %: share of the work programme achieved or achieved with a small issue.
  • EUR 714 720: payment order authorised beyond a delegated limit of EUR 500 000.

Legal basis: Article 319 of the Treaty on the Functioning of the European Union.