Risk-preparedness in the electricity sector

2016/0377(COD)

The European Parliament adopted by 558 votes to 75 with 31 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC.

The proposed Regulation would establish rules for cooperation between Member States to prevent, manage and prepare for electricity crises in a spirit of solidarity and transparency and taking full account of the requirements of a competitive internal electricity market.

The position of the European Parliament adopted at first reading under the ordinary legislative procedure has amended the Commission proposal as follows:

Methodology for identifying regional electricity crisis scenarios

No later than six months after the date of entry into force of the regulation, the European Network of Transmission System Operators for Electricity (ENTSO-E) should submit to the European Union Agency for the Cooperation of Energy Regulators (ACER) a proposal for a methodology to identify the most relevant regional electricity crisis scenarios with regard to grid adequacy, system security and security of fuel supply.

Within two months of receipt of the proposed methodology, ACER should approve or amend it, after consultation with the Electricity Coordination Group in its formation composed solely of representatives of the Member States.

Within six months of the approval of the methodology, the ENTSO for Electricity would identify, on the basis of the methodology and in close cooperation with the Electricity Coordination Group, regional coordination centres, competent authorities and regulatory authorities, the most relevant electricity crisis scenarios for each region.

Within four months of the identification of the regional scenarios, the competent authority would identify the national electricity crisis scenarios.

Risk-preparedness plans

On the basis of these regional scenarios and national electricity crisis scenarios, each Member State should establish a risk-preparedness plan, including measures at national and regional level.

In order to ensure the consistency of risk-preparedness plans, the competent authorities should submit the draft plans for consultation to the competent authorities of the Member States concerned in the region before the adoption of their risk-preparedness plans and, where they are not located in the same region, to the competent authorities of the directly connected Member States, as well as to the electricity coordination group.

The risk preparedness plan would be developed in accordance with the model in the Annex to the Regulation.

Assessment by the Commission

Within four months of the notification by the competent authority of the adopted risk-preparedness plan, the Commission should carry out its assessment, taking due account of the views expressed by the Electricity Coordination Group.

The Commission, after consultation with the Electricity Coordination Group, would issue a non-binding opinion setting out the detailed reasons and submit it to the competent authority with a recommendation for a review of its risk-preparedness plan where, for example, the plan does not effectively mitigate the risks identified in the electricity crisis scenarios.

Within three months of receiving the Commission's opinion, the competent authority concerned should either notify the Commission of the amended risk preparedness plan or notify the Commission of the reasons why it opposes the recommendation.

Cooperation and assistance

The amended Regulation provides for the introduction of a clearly defined mechanism for assistance between Member States so that cross-border assistance can be provided quickly in the event of an electricity crisis.

Member States should agree on provisions for fair compensation before assistance is provided. The Member State requesting assistance should pay or ensure that this compensation is paid promptly to the Member State providing the assistance.