Other EU legislation
This page gives a brief overview of other EU-based energy legislation that affects National Grid.
Concerning Measures to Safeguard Security of Gas Supply (Regulation (EC) No 994/2010)
Background: The January 2009 Russia/Ukraine gas crisis, highlighted the need for stable and secure European gas supplies. With this aim in mind, the European Commission proposed the Gas Security of Supply Regulation (EC) No 994/2010, which came into effect on 2nd December 2010. The regulation places a number of obligations on the national Competent Authority and natural gas undertakings. The Minister of State for Energy & Climate Change decided that 'the Department of Energy and Climate Change (DECC) shall be designated as the competent authority for the purposes of Regulation 994/2010' on 19th January 2011.
Key aspects of the Regulation include:
- The Requirement on the Competent Authority to produce a Risk Assessment document. The inaugural UK Risk Assessment was published in November 2011. The next version of the document is due to be published by May 2014.
- There is also a Requirement on the Competent Authority to produce a Preventative Action Plan and an Emergency Action Plan. The first versions of these published in November 2012. The documents are due to be updated every 2 years. National Grid supported the creation of the above documents where requested.
- The Regulation also contains an obligation on TSOs to adapt their networks to enable permanent physical reverse flow at all Interconnection points by 3rd December 2013. National Grid in conjunction with Gaslink applied all the tests outlined in the Regulation, and received on exemption with regard to Moffat.
All the obligations that have been met to date can be found on the DECC website.
Wholesale Energy Market Integrity & Transparency (Regulation (EC) No 1227/2011)
On 28th December 2011, the European Union (EU) adopted new stringent rules on wholesale energy trading, the Regulation known as REMIT. The main objective is to prevent use of insider information and other forms of market abuse which distort wholesale energy prices and normally mean that businesses and consumers pay more for their energy than they need.
Market participants have an obligation to publish ‘inside information’ in respect of businesses or facilities which they own or control (or are operationally responsible for) before they can trade on it. Regulation (EC) No 1227/2011 introduces, for the first time, a consistent EU-wide framework for providing insider information.
Further provisions to provide additional market data and information, to ACER and NRA’s are to be introduced by Implementing Acts that are being drafted by the Commission.
Guidelines for Trans-European Energy Infrastructure (Regulation (EC) No 347/2013)
Regulation (EC) No 347/2013 (also known as the Energy Infrastructure Package) applied from 1st June 2013. The Regulation creates 12 geographical priority corridors for developing energy infrastructure in Europe covering, electricity, gas, oil, and carbon capture and storage. Within each priority corridor Projects of Common Interest (PCI) will be selected. The benefits associated with being a PCI project include the following:
- Streamlined permit granting procedures
- Regulatory incentives
- Potential EU financial assistance
The first EU wide PCI list was adopted in September 2013.
The financial assistance will come from the Connecting Europe Facility which has an agreed budget €5.1 billion for supporting energy infrastructure projects.
Grants for studies and financial instruments will be available to all PCIs, and in exceptional cases, grants for works for PCIs will be available where:
- The Cost Benefit Analysis shows positive externalities
- Commercially not viable
- Cost-allocation decision done
This Regulation establishes twelve Regional Groups. The membership of each Group shall be based on each priority corridor and their respective geographical coverage. Decision-making powers in the Groups shall be restricted to Member States and the Commission.
Article 3, Regulation 347/2013