European Commission Passes Network Code, Engages in Political Debates
European authorities are showing some signs of vitality through a combination of political speeches in Brussels and legislative activities. On Thursday, for example, the European Commission adopted new rules for cross-border cooperation between gas network operators, as part of its series of network codes.
‘These new rules, known as the 4th binding EU Network Code for the gas sector – were developed in cooperation with national energy regulators and network operators (ACER and ENTSOG). They align the complex technical procedures used by network operators within the EU, the Energy Community and other countries neighbouring the EU’ reads a note released by the European Commission on Monday.
The regulation sets out rules for interoperability, data exchange, and harmonised rules for the operation of gas transmission systems at interconnection points, and points where the gas quality is measured. The regulation also comprises a derogation for interconnection points between two Member States in which at least one is covered by the Article 49 of Directive 2009/73/EC. Article 49 applies to emergent and isolated markets.
The new law covers seven different aspects of the interconnection points: i. flow control, ii. measurement principles for gas quantities and qualities, iii. matching process, iv. allocation of gas quantities, v. communication procedures in case of exceptional events, vi. settlement of disputes arising from interconnection agreements, vii. amendment process for the interconnection agreement.
NEXT STEP: ENTSOG’S DOCUMENT BY 30 JUNE 2015
The next step will be represented by a document to be published by ENTSOG by 30 June 2015, which will present a draft interconnection agreement template covering the default terms and conditions set out in the articles about i. flow control, ii. measurement principles for gas quantity and quality, iii. rules for matching progress, iv. rules for allocation of gas quantities, v. communication procedures in case of exceptional events.
POLITICAL INTERVENTION
Over the last hours, two commissioners intervened in European debates too.
Commission Vice Presiden Maroš Šefčovič took part in a conference in Brussels, saying that the Energy Union will take shape in the coming 7 months. Once more, he also presented his two main strengths, he played his best two cards: LNG, and additional suppliers.
“When it comes to gas, we will develop an EU-wide strategy for LNG and storage; establish partnerships with additional suppliers; and build the infrastructure to bring the gas from those suppliers” Šefčovič said on Monday.
The European Commission Vice President said that the Energy Union will trigger a transparent governance mechanism in the remaining months of 2015, explaining that European authorities are working to understand the implications of the Energy Union on Member States. He also renewed its commitment to engaging with countries to better design the European energy strategy.
A few days before, Miguel Arias Cañete, European Commissioner for Climate Action and Energy, told the Polish newspaper Ekonomia that he understands Polish reliance on coal, explaining that Brussels supports the development of technologies compatible with coal-fired power plants like CCS. He also underlined the importance of energy efficiency, and the on-going negotiations to modify the Emissions Trading System.
THIS IS THE RIGHT POLITICAL APPROACH: FLESH AND BONES
Judging the approach of the European Commission in the last hours, it seems that European politicians (finally) understood that declarations are stronger when they add flesh to the bones, when statements go hand in hand with laws, directives and tangible steps ahead. It is probably just a matter of communication, but political strategies, especially in Brussels, are and will remain key for any development.
Sergio Matalucci
Sergio Matalucci is an Associate Partner at Natural Gas Europe. Follow him on Twitter: @SergioMatalucci