Electricity Regulation (EU) 2019/943

Electricity Regulation (EU) 2019/943
Title	Electricity Regulation (EU) 2019/943
Type	Regulation
Official journal	Official Journal of the European Union
Date enacted	2019
Status	in force

Electricity Regulation (EU) 2019/943 is a regulation of the European Union establishing rules for the internal market in electricity, aiming to enhance cross-border trade, competition, and security of supply across the European Single Market, European Commission, and European Parliament. It integrates provisions on market design, capacity mechanisms, and balancing with references to existing frameworks such as Regulation (EC) No 714/2009 and interacts with agencies like the Agency for the Cooperation of Energy Regulators and ENTSO-E. The regulation has been influential in dialogues involving Council of the European Union, European Council, Court of Justice of the European Union, and numerous Member States of the European Union.

Background and Legislative Context

The regulation emerged from policy initiatives led by the European Commission under the Clean Energy for All Europeans package and successive strategies influenced by rulings of the Court of Justice of the European Union, negotiations in the European Parliament and positions of the Council of the European Union, reflecting debates among Germany, France, Poland, Spain, and Italy. It built upon precedent instruments including Regulation (EC) No 714/2009, decisions by the Agency for the Cooperation of Energy Regulators and network codes developed by ENTSO-E, and was shaped by market developments in regions such as Nordic countries, the Baltic states, and the Iberian Peninsula. Stakeholders ranged from system operators like TenneT and RTE (Réseau de Transport d'Électricité) to energy companies such as EDF, Enel, Iberdrola, and Ørsted.

Scope and Objectives

The regulation sets rules for wholesale electricity markets within the European Single Market, addressing cross-border trade, balancing markets, and transparency to support objectives of the European Green Deal, 2030 Climate and Energy Framework, and security concerns highlighted by incidents in the European energy crisis (2021–2023). It aims to facilitate entities including transmission system operators like National Grid (Great Britain), market operators such as EPEX SPOT, and regulators such as national authorities in Sweden, Belgium, Netherlands, and Romania to cooperate, while advancing targets negotiated in the Paris Agreement and endorsed by the European Council.

Key Provisions and Market Rules

Provisions include requirements for market-based pricing, rules on capacity mechanisms with safeguards against distortions similar to issues raised by State aid (European Union), and frameworks for imbalance settlement that coordinate TSOs like Amprion and Elia (TSO). The regulation mandates integration of wholesale markets across bidding zones influenced by procedures involving ENTSO-E and ACER and addresses procurement and remuneration of ancillary services used by operators such as PSE (Poland) and HOPS (Croatia). It elaborates on trading timelines, gate closure, and congestion management consistent with principles debated in hearings attended by companies like Vattenfall, CEZ Group, and RWE.

Governance, Roles and Responsibilities

Governance assigns roles to entities including the Agency for the Cooperation of Energy Regulators (ACER), ENTSO-E, national regulators exemplified by Ofgem, transmission system operators such as TenneT and Statnett, and regional security coordinators like TSCNET Services. It delineates responsibilities for market monitoring, dispute resolution involving national authorities from Austria and Hungary, and coordination of network planning reflected in Ten‑Year Network Development Plans overseen by ENTSO-E, with involvement of stakeholders including transmission owners such as Red Eléctrica de España.

Implementation and Compliance

Implementation requires transposition into operational procedures by national TSOs and regulatory authorities in countries including Greece, Portugal, Lithuania, and Slovakia, and compliance is supervised by ACER and the European Commission with potential enforcement routes through the Court of Justice of the European Union. Compliance measures involve reporting, monitoring, and remedial actions interacting with state entities such as central authorities in Finland and Czech Republic and market operators like Nord Pool. Audits and sanctions follow precedents set by disputes adjudicated by the European Court of Auditors and decisions by the European Commission on market remedies.

Impact on Member States and Market Integration

The regulation has influenced market integration efforts in regions including the Central Europe coupling, the North Sea Region, and the Mediterranean corridor by promoting harmonisation among TSOs and fostering cross-border capacity allocation affecting utilities such as CEZ Group, PGE, and Fortum. It has been cited in national reforms in Poland, investment decisions by companies like Siemens Energy and General Electric, and regional projects including interconnectors such as North Sea Link and Nemo Link. Effects on wholesale prices, investment signals for renewables involving firms like Iberdrola and EDP Renováveis, and security of supply have been monitored by research institutions including Florence School of Regulation and think tanks such as Bruegel.

Amendments and Related Legislation

Subsequent adjustments and interactions involve amendments linked to the Clean Energy for All Europeans package, complementarity with Regulation (EU) 2019/942 and network codes developed by ENTSO-E, and coordination with directives like the Electricity Directive (EU) 2019/944. The regulation has been referenced in legislative debates in the European Parliament and by national legislators in Belgium, Germany, and Ireland, and continues to evolve alongside initiatives such as the European Green Deal and proposals from the European Commission.

Category:European Union energy law Category:Electric power in the European Union