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DRAFT OPINION (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

IMCO-PA-732596

Committee on the Internal Market and Consumer Protection · Rapporteur: Maria Grapini

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The Internal Market and Consumer Protection Committee's rapporteur drafts amendments to the proposed directive on common rules for internal markets in renewable and natural gases and in hydrogen. The amendments extend consumer protection rules to the whole gases market, regardless of the gas mix, and align them with electricity market rules. They require comparison tools covering the entire gas market, clearer billing information, easier supplier switching, and protection for vulnerable and energy-poor consumers. They add rules for third-party intermediaries, smart metering cost-benefit assessments, and the right of self-generating customers to participate in all gas markets.

Committee position. The rapporteur welcomes the Commission's proposal and proposes amendments to strengthen consumer protection across the gases market, including comparison tools, switching rights, protection for vulnerable consumers, rules for third-party intermediaries and smart metering assessments.

Key points

  1. Consumer protection rules should apply to all consumers across the entire gases market, independently of the gas mix available to them.
  2. Consumers should have access to comparison tools covering the whole gas market, with suppliers required to provide information on all available offers to a competent authority managing a database.
  3. Member States should protect vulnerable and energy-poor consumers, mirroring the identification criteria from the Electricity Directive, and prevent disconnections in winter.
  4. Consumers should be able to switch gas suppliers within a maximum of two weeks, and by 2026 the technical switching process should take no longer than 24 hours.
  5. Providers of bundled services should let final customers cancel or switch individual parts of the bundled contract through direct negotiation.
  6. A cost-benefit assessment for smart metering systems should assess and specify benefits for final customers, and guidelines should be developed for clear information about smart meters.
  7. Third-party intermediaries completing tasks usually performed by energy suppliers should be bound by the same legislative framework, with a new definition covering comparison, switching, contract conclusion and energy management services.
  8. Final customers who store and self-generate renewable gas should have the right to participate in all gas markets and value chains, providing services to the energy system.
  9. Bills and billing information should be aligned with electricity sector rules, giving all consumers transparent, easy-to-understand information on consumption, costs and consumer rights.
  10. Member States may apply public interventions in price setting for gases to energy-poor or vulnerable household customers, including where market failures or manipulation are evident.
  11. National Regulatory Authorities should monitor consumer protection, including debt levels, barriers to exercising rights, misleading offers, bundled offers, and the functioning of datasets identifying energy-poor customers.
  12. National Regulatory Authorities should set minimum binding requirements for 'green tariffs' based on substantiated additionality, and advise on how they are displayed and searchable.

Who is affected

  • Gas consumers, who gain stronger rights on switching, billing, comparison tools and protection from disconnection.
  • Vulnerable and energy-poor households, who may benefit from public price interventions and social support measures.
  • Third-party intermediaries, such as comparison and switching tools, which would be bound by the directive when performing supplier tasks.
  • Suppliers and market participants, who must provide offer information, enable switching and offer diverse payment methods.
  • National Regulatory Authorities, which gain monitoring, consultation and certification duties.

Figures and deadlines

  • One third of the energy used by European households is natural gas.
  • Switching supplier must be possible within a maximum of two weeks from the request.
  • By 2026 at the latest, the technical switching process shall take no longer than 24 hours.
  • A more stringent greenhouse gas emission reduction threshold applies for hydrogen produced in installations starting operations from 1 January 2031.
  • Energy poverty datasets should become comparable across Member States within two years after the entry into force of the Directive.