S/C/N/100 6 
8 May 2020 
(20-3492) Page: 1/2 
Council for Trade in Services  Original:  English  
 
  
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE  
GENERAL AGREEMENT ON TRADE IN SERVICES  
The following notification, dated  27 April  2020, from the delegation of the European Union , is being 
circulated to Members of the Council for Trade in Services . 
 
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The following notification is made pursuant to GATS Article III:3 and relates to measures adopted 
by the European Union in 2019. Given that there is no common understanding among WTO Members 
on when a measure "significantly aff ects trade in services" within the meaning of GATS Article III:3 
and that the European Union cannot make a positive determination on this issue, it is therefore 
notifying measures that may be relevant to trade in services without prejudice to the interpret ation 
of the phrase "significantly affect trade in services" in Article III:3.  
 
 
1  MEMB ER NOTIFYING : 
The European Union  
2  NOTIFICATION UNDER : 
Article III:3 of the General Agreement on Trade in Services  
3  DATE OF ENTRY INTO FORCE : 
4 July  2019 
3.1  Duration:  
Not applicable  
 
4  AGENCY RESPONSIBLE FOR ENFORCEMENT OF THE MEASURE : 
Member States of the European Union/European Union  
5  DESCRIPTION OF THE MEASURE : 
a) Full title of the EU act:  
Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common 
rules for the internal market for electricity and amending Directive 2012/27/EU (Text with EEA 
relevance.)  
b) Brief summary of the content with a focus on potential effect on services trade:  
In particular, this Directive will:  
• allow electr icity to move freely throughout the EU energy market through cross -border trade, 
 more competition and better regional cooperation;  S/C/N/100 6 
- 2 - 
  • enable more flexibility to accommodate an increasing share of renewable energy in the 
 electricity grid;  
• foster more mar ket-based investments in the sector, while decarbonising the EU energy 
 system;  
• introduce a new emissions limit of 550 g CO2/kWh for power plants eligible to receive 
 subsidies.  
The new rules also introduce a comprehensive framework for consumer protecti on, information and 
empowerment in the EU electricity sector:  
• Customers will get a summary of key contractual conditions to help them better understand 
 sometimes -complex terms and conditions.  
• The technical process of switching suppliers must take les s than 24 hours in all EU countries, 
 by 2026 at the latest.  
• Providers should give free -of-charge access to at least one energy comparison tool allowing 
 consumers to find the best deal in the market.  
• To help consumers better control their costs, information in electricity bills will be improved.  
• New obligations will help better identify vulnerable and energy poor customers, making it 
 easier to target assistance to those who need and this way tackle  the growing issue of energy 
 poverty.  
• Consumers will be able to participate actively, individually or through communities, in all 
 markets, either by generating electricity and then consuming, sharing or selling it, or by 
 providing storage services.  
• For the first time, consumers will have the right to request a smart meter and a dynamic price 
 contract that allows them to be rewarded for shifting consumption to times when energy is 
 widely available and cheap.  
6  MEMB ERS SPECIFICALLY AFFECTED, IF ANY: 
N/A  
7  TEXTS AVAILABLE FROM : 
EU Official Journal, available on -line at:  
https://eur -lex.europa.eu/legal -content/EN/ALL/?uri=CELEX%3A32019L0944  
 
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