### where the goods for which the mutual recognition declaration is being supplied are also subject to a union act requiring an eu declaration of conformity , the mutual recognition declaration may be included as part of that eu declaration of conformity . ### where the goods for which the lawful marketing declaration regarding mutual recognition is being supplied are also subject to a union act requiring an eu declaration of conformity , the mutual recognition declaration may be attached to the eu declaration of conformity .


### the declaration shall be completed in one of the official languages of the union and , where that language is not the language required by the member state of destination , it shall be translated by the economic operators into the language or languages required by the member state of destination . ### the declaration shall be completed in one of the official languages of the union and , where that language is not the language required by the member state of destination , it shall be translated by the economic operators into the language required by the member state of destination .


### the commission shall , within three months of receipt of the request referred to in paragraph 1 , enter into communication with the relevant economic operator or operators and the competent authorities who took the administrative decision in order to assess the compatibility of the administrative decision with the principle of mutual recognition and this regulation . ### the commission shall , without undue delay , consider the documents and information provided within the solvit procedure in order to assess the compatibility of the administrative decision with the principle of mutual recognition and this regulation . where additional information is needed for the purposes of the assessment referred to above , the commission may enter into communication with the relevant economic operator or operators and the competent authorities .


### the competent authority of the member state shall immediately notify the relevant economic operator , the commission and the other member states of any suspension pursuant to paragraph 1 . the notification to the commission and other member states shall be made by means of the system referred to in article 11 . in cases falling within point of paragraph 1 of this article , the notification shall be accompanied by a technical or scientific justification demonstrating why the case is considered to fall within that point . ### the competent authority of the member state shall immediately notify the relevant economic operator , the commission and the other member states of any suspension pursuant to paragraph 1 . the notification to the commission and other member states shall be made by means of the system referred to in article 11 . the notification shall be accompanied by a detailed technical or scientific justification demonstrating that the goods pose a serious risk .


### within the mutual recognition declaration , the specific information related to the marketing of the goods or type of goods may , however , be filled in by any economic operator . ### alternatively , the mutual recognition declaration or the specific information of that declaration related to the marketing of the goods or type of goods may be filled in by any economic operator , provided that the relevant signatory can supply the evidence supporting the information of that declaration .


### if the administrative decision referred to in article 5 or the temporary suspension referred to in article 6 is also a measure which is required to be notified through rapex as referred to in the general product safety directive 2001 / 95 / ec , a separate notification to the commission under this regulation is not required , provided that the following conditions are met : ### if the administrative decision referred to in article 5 or the temporary suspension referred to in article 6 is also a measure which is required to be notified through rapex as referred to in the general product safety directive 2001 / 95 / ec , a separate notification to the commission and to the other member states under this regulation is not required , provided that the following conditions are met :


### where a competent authority of a member state has doubts as regards goods which the economic operator claims are lawfully marketed in another member state , the competent authority shall contact the relevant economic operator without delay and shall carry out an assessment the goods . ### where , as part of their market control activities , a competent authority of the member state of destination has reasonable doubts as to whether goods that are made available or are going to be made available on its market are lawfully marketed in another member state , the competent authority shall contact the competent authority of that other member state and the relevant economic operator without delay , and shall carry out an assessment of the goods .


### it is important to clarify that the types of goods covered by this regulation include agricultural products . the term ' agricultural products ' includes products of fisheries , as provided for in article 38 of the treaty . ### it is important to clarify that the types of goods covered by this regulation include agricultural products . the term ' agricultural products ' includes products of fisheries , as provided for in article 38 of the treaty . the commission should keep and , when feasible , further develop an indicative and non - exhaustive list up to date online to help identify , which types of goods are subject to this regulation .


### where , on completion of an assessment under paragraph 1 , the competent authority of a member state takes an administrative decision with respect to the goods , it shall communicate its decision within 20 working days to the relevant economic operator referred to in paragraph 1 , to the commission and to the other member states . notification to the commission and to the other member states shall be done by means of the system referred to in article 11 . ### where , on completion of an assessment under paragraph 1 , the competent authority of a member state takes an administrative decision with respect to the goods , it shall communicate its decision without delay and no later than within 15 working days to the relevant economic operator referred to in paragraph 1 , to the commission and to the other member states . notification to the commission and to the other member states shall be done by means of the system referred to in article 11 .


### the concept of overriding reasons of public interest is an evolving concept developed by the court of justice in its case - law in relation to articles 34 and 36 of the treaty . this concept covers , inter alia , the effectiveness of fiscal supervision , the fairness of commercial transactions , protection of consumers , protection of the environment , the maintenance of press diversity and the risk of seriously undermining the financial balance of the social security system . such overriding reasons , where legitimate differences exist from one member state to another , may justify the application of national rules by the competent authorities . however , such decisions need to be duly justified , and the principle of proportionality must always be respected , regard being had to whether the competent authority has in fact made the least restrictive decision possible . furthermore , administrative decisions restricting or denying market access in respect of goods lawfully marketed in another member state must not be based on the mere fact that the goods under assessment fulfil the legitimate public objective pursued by the member state in a different way from the way that domestic goods in that member state fulfil that objective . ### the concept of overriding reasons of public interest is an evolving concept developed by the court of justice in its case - law in relation to articles 34 and 36 of the treaty . this concept covers , inter alia , the effectiveness of fiscal supervision , the fairness of commercial transactions , protection of consumers , protection of the environment , the maintenance of press diversity and the risk of seriously undermining the financial balance of the social security system . such overriding reasons , where legitimate differences exist from one member state to another , may justify the application of national rules by the competent authorities . however , such decisions always need to be duly justified and respect the principle of proportionality , and the competent authority must use the least restrictive measures possible . furthermore , administrative decisions restricting or denying market access in respect of goods lawfully marketed in another member state must not be based on the mere fact that the goods under assessment fulfil the legitimate public objective pursued by the member state in a different way from the way that domestic goods in that member state fulfil that objective .


### where a competent authority of a member state has doubts as regards goods which the economic operator claims are lawfully marketed in another member state , the competent authority shall contact the relevant economic operator without delay and shall carry out an assessment the goods . ### where a competent authority of a member state has doubts as regards goods which the economic operator claims are lawfully marketed in another member state , the competent authority shall contact the relevant economic operator without delay and shall carry out an assessment the goods . this assessment shall establish whether the goods are lawfully marketed in another member state and if so whether&#160 ; those goods&#160 ; ensure at least equivalent level of protection of the public interests protected by the national law of the member state of destination .


### any administrative decision taken by competent authorities of member states pursuant to this regulation should specify the remedies available so that an economic operator can bring proceedings before the competent national court or tribunal . the decision should also refer to the problem - solving procedure provided for in this regulation . ### any administrative decision taken by competent authorities of member states pursuant to this regulation should specify the remedies available so that an economic operator can appeal the decision or bring proceedings before the competent national court or tribunal . the administrative decision should also refer to the possibility of economic operators to use the solvit network and to have access to the problem - solving procedure provided for in regulation .


### regional operational centres may set up regional desks to address local specificities or back - up operational centres for the efficient and reliable exercise of their functions . ### regional coordination centres may set up regional desks to address local specificities or back - up coordination centres for the efficient and reliable exercise of their functions .


### where the european resource adequacy assessment identifies a resource adequacy concern member states shall identify any regulatory distortions that caused or contributed to the emergence of the concern . ### where the european resource adequacy assessment identifies a resource adequacy concern member states shall identify any market failures and / or regulatory distortions that caused or contributed to the emergence of the concern .


### member states shall publish a timeline for adopting measures to eliminate any identified regulatory distortions . when addressing resource adequacy concerns member states shall in particular consider removing regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side measures and energy efficiency . ### member states with identified adequacy concerns shall publish an implementation plan with a timeline for adopting measures to eliminate any identified regulatory distortions . when addressing resource adequacy concerns member states shall comply with article 3 , and shall , in particular : remove regulatory distortions ; remove unnecessary price caps ; introduce an administrative shortage pricing function as referred to in article 44 of [ the commission regulation establishing a guideline on electricity balancing ] ; increase interconnection capacity ; develop demand - side measures ; ensure efficient delineation of bidding zones reflecting transmission constraints ; ensure efficient market - based balancing and ancillary services ; remove regulated prices .


### regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected . ### regional coordination centres shall have the competence to adopt decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 .


### market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources and providing incentives for energy efficiency ; ### market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources including energy storage and providing incentives for energy efficiency ;


### generating installations using high - efficiency cogeneration shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ; ### electricity generated in a high - efficiency cogeneration process shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ;


### the use of revenues in accordance with points and of paragraph 2 shall be subject to a methodology proposed by the agency and approved by the commission . the agency ' s proposal shall be submitted to the commission by [ op : 12 months after entry into force ] and be approved within six months . ### the use of revenues in accordance with paragraph 2 shall be subject to a methodology proposed by the agency and approved by the commission . the agency ' s proposal shall be submitted to the commission by [ op : 12 months after entry into force ] and be approved within six months .


### balancing markets shall be organised in such a way as to ensure effective non - discrimination between market participants taking account of the different technical capability of generation from variable renewable sources and demand side response and storage . ### balancing markets shall be organised in such a way as to ensure effective non - discrimination between market participants . balancing markets shall be designed to allow for maximum participation of renewables sources , including in particular small decentralised and distributed generation . balancing market rules shall ensure that energy communities have a proportionate and simple access to the market .


### coordinated capacity calculation ; ### coordinated capacity calculation in accordance with the methodologies developed pursuant to articles 21 , 26 , 29 , and 30 of regulation 2015 / 1222 ;


### the medium to long - term resource adequacy assessment set out in this regulation has a different purpose than the seasonal outlooks as set out in article 9 [ regulation on risk preparedness as proposed by com 862 ] . medium - to long - term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation . in addition , regional operational centres also carry out regional adequacy assessments as defined in european legislation on electricity transmission system operation . these are very short - term adequacy assessments used in the context of system operation . ### the medium to long - term resource adequacy assessment set out in this regulation has a different purpose than the seasonal outlooks as set out in article 9 [ regulation on risk preparedness as proposed by com 862 ] . medium - to long - term assessments are mainly used to assess the need for capacity mechanisms whereas seasonal outlooks are used to alert to risks that might occur in the following six months that are likely to result in a significant deterioration of the electricity supply situation . in addition , regional coordination centres also carry out regional adequacy assessments as defined in european legislation on electricity transmission system operation . these are very short - term adequacy assessments used in the context of system operation .


### the responsible system operators shall report at least once per year to the competent regulatory authority on curtailment or downward redispatching of generating installations using renewable energy sources or high - efficiency cogeneration and on measures taken to reduce the need for such curtailment or downward redispatching in the future . curtailment or redispatching of generating installations using renewable energy sources or high - efficiency cogeneration shall be subject to compensation pursuant to paragraph 6 . ### the responsible system operators shall report at least once per year to the competent regulatory authority on curtailment or downward redispatching of generating , energy storage or demand - response installations using renewable energy sources or high - efficiency cogeneration and on measures taken to reduce the need for such curtailment or downward redispatching in the future . curtailment or redispatching of generating installations using renewable energy sources , energy storage , demand - response or high - efficiency cogeneration shall be subject to compensation pursuant to paragraph 6 .


### distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of article 35 [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] , shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators who wish to participate in the eu dso entity shall become registered members of the entity . ### all distribution system operators shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity and gas to support the development of a sustainable , decentralised and more integrated energy system , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators and associations that represent them at union level who wish to participate in the eu dso entity shall become registered members of the entity . statuses shall ensure that decision - making process takes into account regional differences of distribution network .


### the methodology shall detail as a minimum the conditions under which the revenues can be used for points and of paragraph 2 and the conditions under which , and for how long , they may be placed on a separate internal account line for future use on those purposes . ### the methodology shall detail as a minimum the conditions under which the revenues can be used for paragraph 2 and the conditions under which , and for how long , they may be placed on a separate internal account line for future use on those purposes .


### there shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . ### there shall be no maximum and no minimum limit of the wholesale electricity price . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices .


### capacity mechanisms shall not create unnecessary market distortions and not limit cross - border trade . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern . ### capacity mechanisms shall be designed in a way which does not create market distortions and not limit cross - border trade . the amount of capacity committed in the mechanism shall not go beyond what is necessary to address the concern .


### capacity providers shall be able to participate in more than one mechanism for the same delivery period . they shall be subject to non - availability payments in case of non - availability , and subject to two or more non - availability payments where there is concurrent scarcity in two or more bidding zones where the capacity provider is contracted . ### capacity providers shall be able to participate in only one mechanism outside the domestic market for the same delivery period . they shall be subject to non - availability payments in case of non - availability .


### tariffs shall grant appropriate incentives to transmission and distribution system operators , over both the short and long term , to increase efficiencies , including energy efficiency , foster market integration and security of supply , and support investments and the related research activities . ### tariffs shall cover investment costs of transmission and distribution networks as well as their operation and maintenance carried out by an efficient and well - managed company . these costs will include incentives to increase efficiencies , including energy efficiency , and quality and reduce losses .


### market operators shall allow market participants to trade energy as close to real time as possible and at least up to the intraday cross - zonal gate closure time determined in accordance with article 59 of regulation 2015 / 1222 . ### market operators shall allow market participants to trade energy as close to real time as possible and at least up to 15 minutes before real time across all bidding zones .


### the transmission system operators participating in the bidding zone review shall submit a proposal to the commission regarding whether to amend or maintain the bidding zone configuration . based on that proposal , the commission shall adopt a decision whether to amend or maintain the bidding zone configuration , [ no later than 6 months after entry into force of this regulation , specific date to be inserted by op ] or by six months after the conclusion of the bidding zone configuration launched in accordance with points , or of article 32 of regulation 2015 / 1222 , whichever comes later . ### the transmission system operators participating in the bidding zone review shall submit a proposal to the commission and member states of the capacity calculation region regarding whether to amend or maintain the bidding zone configuration . based on that proposal , in case there is no agreement between member states in the capacity calculation region , the commission shall adopt a decision whether to amend or maintain the bidding zone configuration , by clearly highlighting the issue at stake combined with an assessment of all available solutions on an equal basis , [ no later than 6 months after entry into force of this regulation , specific date to be inserted by op ] or by six months after the conclusion of the bidding zone configuration launched in accordance with points , or of article 32 of regulation 2015 / 1222 , whichever comes later .


### maintaining or increasing interconnection capacities through network investments , in particular in new interconnectors . ### maintaining or increasing interconnection capacities through coordinated remedial actions and / or network investments up to the target value for transfer capacity at each cross - border boundary .


### the day - to - day operation of regional operational centres shall be managed through cooperative decision - making . the cooperative - decision making process shall be based on : ### the performance of functions of regional coordination centres shall be managed through cooperative processes that rely on the involvement of the transmission system operators of the region , including arrangements for coordination between regional coordination centres where relevant . the cooperative process shall be based on :


### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and eliminate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition . ### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and mitigate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition .


### if the revenues cannot be efficiently used for the purposes set out in points or of the first subparagraph , they shall be placed on a separate internal account line for future use on these purposes . ### where the objectives set out in points and of the first subparagraph are fulfilled , the residual revenues may be used as income to be taken into account by the national regulatory authorities when approving the methodology for calculating network tariffs and / or fixing network tariffs .


### short - term markets will improve liquidity and competition by enabling more resources to participate fully in the market , especially those that are more flexible . effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market . it is therefore critical to ensure that , as far as possible , administrative and implicit price caps are removed to allow scarcity prices to increase up to the value of lost load . when fully embedded in the market structure , short - term markets and scarcity pricing will contribute to the removal of other measures , such as capacity mechanisms , to ensure security of supply . at the same time , scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers , in particular households and smes . ### short - term markets will improve liquidity and competition by enabling more resources to participate fully in the market , especially those that are more flexible . effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market . it is therefore critical to ensure that administrative and implicit price caps are removed to allow scarcity pricing . when fully embedded in the market structure , short - term markets and scarcity pricing will contribute to the removal of other measures , such as capacity mechanisms and other subsidies , to ensure security of supply . at the same time , scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers , in particular households and smes .


### working arrangements to address planning and operational aspects related to the functions , in accordance with article 36 ; ### working arrangements to address planning and operational aspects related to the functions ;


### the commission decision shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . the commission may define appropriate transitional arrangements as part of its decision . ### the decision adopted under this article shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . appropriate transitional arrangements may be defined as part of the decision .


### distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers , and may be differentiated based on system users’ consumption or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable way for the consumer . ### distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers , and may be differentiated based on system users’ consumption , energy storage or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable way for the consumer .


### member states shall publish a timeline for adopting measures to eliminate any identified regulatory distortions . when addressing resource adequacy concerns member states shall in particular consider removing regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side measures and energy efficiency . ### member states shall publish a timeline and an implementation plan for adopting measures to eliminate any identified regulatory distortions and actions to address market failures . when addressing resource adequacy concerns member states shall in particular consider removing regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side measures and energy efficiency .


### a procedure for the adoption of decisions and recommendations in accordance with article 38 ; ### a procedure for the adoption of transmission system operators decisions taking into account the proposals from regional security coordinators ;


### the competences of the management board shall exclude those that are related to the day - to - day activities of regional operational centres and the performance of its functions . ### the competences of the management board shall not include decisions related to the execution of the functions of regional coordination centres .


### capacity providers shall be able to participate in more than one mechanism for the same delivery period . they shall be subject to non - availability payments in case of non - availability , and subject to two or more non - availability payments where there is concurrent scarcity in two or more bidding zones where the capacity provider is contracted . ### capacity providers shall not be able to participate in more than one mechanism for the same delivery period . they shall be subject to non - availability payments in case of non - availability .


### by [ op : please add specific date – three months after entry into force ] the agency shall provide a recommendation addressed to regulatory authorities on the progressive convergence of transmission and distribution tariff methodologies . that recommendation shall address at least : ### by [ op : please add specific date – three months after entry into force ] nras cooperating in the framework of the agency shall define a publication template to favour transparency in the setting and structure of transmission tariffs . the template shall address at least the following minimum publication requirements regarding tariff charges : the ratio of tariffs applied to producers and to consumers ; the costs and / or allowed or target revenue of the transmission system operator to be recovered by tariffs ; time differentiated network tariffs ; locational signals ; the relationship between transmission and distribution tariffs groups of network users subject to tariffs , including tariff exemptions . by [ op : please add specific date – six months after entry into force ] , and afterwards regularly every two years , the national regulatory authority or the transmission system operator , as decided by the national regulatory authority , shall publish information according to the minimum publication requirements template , on the methodology for calculating the respective network tariffs .


### the sizing of reserve capacity shall be performed at regional level in accordance with point 7 of annex i . regional operational centres shall support transmission system operators in determining the amount of balancing capacity that needs to be procured in accordance with point 8 of annex i . ### the sizing of reserve capacity shall be performed at regional level in accordance with point 7 of annex i . regional coordination centres shall support transmission system operators in determining the amount of balancing capacity that needs to be procured in accordance with point 8 of annex i .


### the sizing of reserve capacity shall be performed at regional level in accordance with point 7 of annex i . regional operational centres shall support transmission system operators in determining the amount of balancing capacity that needs to be procured in accordance with point 8 of annex i . ### the sizing of reserve capacity may be facilitated , when appropriate and based on national specificities , at regional level in accordance with point 7 of annex i .


### regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected . ### regional coordination centres shall adopt recommendations addressed to the transmission system operators in respect of the functions referred to in article 34 . transmission system operators shall do their utmost to follow those recommendations .


### each bidding zone should be equal to an imbalance price area . ### the imbalance price area shall be equal or smaller of the bidding zone .


### where the european resource adequacy assessment identifies a resource adequacy concern member states shall identify any regulatory distortions that caused or contributed to the emergence of the concern . ### where a national resource adequacy assessment identifies a resource adequacy concern member states shall identify any regulatory distortions that caused or contributed to the emergence of the concern .


### regional operational centres shall develop a procedure for the adoption of decisions and recommendations . ### the transmission system operators of a system operation region shall develop a procedure for the adoption and revision of recommendations put forward by regional coordination centres in accordance with the criteria set out in paragraphs 2 and 3 .


### regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks , in particular , where they adopt decisions binding on transmission system operators . the method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available . ### in the proposal for the establishment of regional coordination centres in accordance with article 32 , the transmission system operators of the system operation region shall include arrangements to cover liability related to the execution of its tasks . the method employed to provide the cover shall take into account the legal status of the regional coordination centre and the level of commercial insurance cover available .


### detailed rules for facilitating effective cross - border participation in capacity mechanisms other than reserve schemes should be laid down . transmission system operators across the borders should facilitate interested generators wanting to participate in capacity mechanisms in other member states . therefore , they should calculate capacities up to which cross - border participation would be possible , enable participation and check availabilities . national regulatory authorities should enforce the cross - border rules in the member states . ### detailed rules for facilitating effective cross - border participation in capacity mechanisms other than strategic reserves should be laid down . transmission system operators across the borders should facilitate interested generators wanting to participate in capacity mechanisms in other member states . therefore , they should calculate capacities up to which cross - border participation would be possible , enable participation and check availabilities . national regulatory authorities should enforce the cross - border rules in the member states .


### member states applying capacity mechanisms on [ op : entry into force of this regulation ] shall adapt their mechanisms to comply with articles 18 , 21 and 23 of this regulation . ### member states which apply capacity mechanisms shall adapt their mechanisms to comply with articles 18 , 18a , 21 and 23 of this regulation .


### regional operational centres shall set up and manage their organisation according to a structure that supports the safety of their functions . their organisational structure shall specify : ### the transmission system operators of a system operation region shall set up the organisational structure of regional coordination centres . their organisational structure shall specify :


### by [ op : twelve months after entry into force ] , all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter . regional operational centres shall be established in the territory of one of the member states of the region where it will operate . ### by [ op : twelve months after entry into force ] , all transmission system operators of a system operation region shall submit to the regulatory authorities of the region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter . the proposal shall include the following information : member state where the regional coordination centre will be located ; the organisational , financial and operational arrangements necessary to ensure the efficient , secure and reliable operation of the interconnected transmission system ; an implementation plan for the entry into operation of the regional coordination centres ; the statutes and rules of procedure of regional coordination centres ; a description of cooperative processes in accordance with article 35 ; a description of the arrangements concerning the liability of regional coordination centres in accordance with article 44 .


### if the revenues cannot be efficiently used for the purposes set out in points or of the first subparagraph , they shall be placed on a separate internal account line for future use on these purposes . ### where the objectives set out in points and of the first subparagraph are fulfilled , the residual revenues may be used as income to be taken into account by the national regulatory authorities when approving the methodology for calculating network tariffs and / or fixing network tariffs .


### the transmission system operators participating in the bidding zone review shall submit a proposal to the commission regarding whether to amend or maintain the bidding zone configuration . based on that proposal , the commission shall adopt a decision whether to amend or maintain the bidding zone configuration , [ no later than 6 months after entry into force of this regulation , specific date to be inserted by op ] or by six months after the conclusion of the bidding zone configuration launched in accordance with points , or of article 32 of regulation 2015 / 1222 , whichever comes later . ### the transmission system operators participating in the bidding zone review shall submit a proposal to the member states whether to amend or maintain the bidding zone configuration . based on that proposal , the member states shall decide within six months whether to amend or maintain the bidding zone configuration . the decision shall be reasoned and taking into account comments made by other member states or third countries .


### the transmission system operators participating in the bidding zone review shall submit a proposal to the commission regarding whether to amend or maintain the bidding zone configuration . based on that proposal , the commission shall adopt a decision whether to amend or maintain the bidding zone configuration , [ no later than 6 months after entry into force of this regulation , specific date to be inserted by op ] or by six months after the conclusion of the bidding zone configuration launched in accordance with points , or of article 32 of regulation 2015 / 1222 , whichever comes later . ### the transmission system operators participating in the bidding zone review shall submit a proposal to the relevant member states whether to amend or maintain the bidding zone configuration . the relevant member states are those participating in the review pursuant to article 32 of regulation 2015 / 1222 and those in the same capacity calculation region pursuant to regulation 2015 / 1222 . based on the proposal , the relevant member states shall come to a unanimous decision within six months on whether to amend or maintain the bidding zone configuration . other member states or third countries may submit comments . the decision shall be reasoned , in accordance with relevant union law and shall take account of the observations of other member states and third countries , as well as of commitments on addressing existing congestion made by the relevant member states . the relevant member states shall notify the commission and the agency of their decision and any cross - border agreements entered into by the member states , the national regulatory authorities or the transmission system operators for the purpose of achieving consensus . agreements entered into by the relevant member states shall not deviate from coordinated capacity calculation processes as set out in article 14 nor from the relevant provisions of regulation 2015 / 1222 .


### by way of derogation from paragraph 1 , until [ op : two years after entry into force ] market operators may apply limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that limits are , or are anticipated to be , reached , they shall be raised for the following day . ### by way of derogation from paragraph 1 , market operators may apply technical limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that those technical limits are , or are anticipated to be , reached , they shall be adjusted .


### the decisions and recommendations issued and the outcome achieved ; ### the decisions by transmission system operators where they have deviated from the recommendations issued by the regional cooperation centres ;


### when applying capacity mechanisms member states shall have a reliability standard in place indicating their desired level of security of supply in a transparent manner . ### when applying capacity mechanisms member states shall have a reliability standard in place . a reliability standard shall indicate the necessary level of security of supply of the member state in a transparent manner .


### transmission system operators shall publish close to real - time information on the current balancing state of their control areas , the imbalance price and the balancing energy price . ### transmission system operators shall publish close to real - time information on the current balancing state of their control areas , the estimated imbalance price and the estimated balancing energy price .


### there shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . ### there shall be no maximum and no minimum limit of the wholesale electricity price . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices .


### market rules shall support the decarbonisation of the economy by enabling the integration of electricity from renewable energy sources and providing incentives for energy efficiency ; ### market rules shall support the decarbonisation of the economy by providing incentives for the integration of electricity from renewable energy sources and for energy efficiency ;


### regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks , in particular , where they adopt decisions binding on transmission system operators . the method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available . ### the transmission system operators of the system operation region shall include arrangements to cover liability related to the execution of its tasks in the proposal for the establishment of regional coordination centres in accordance with article 32 . the method employed to provide the cover shall take into account the legal status of the regional coordination centre and the level of commercial insurance cover available .


### market operators shall be free to develop products and trading opportunities that suit market participants ' demand and needs and ensure that all market participants are able to access the market individually or through aggregation . they shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies . ### market operators shall be free to develop products and trading opportunities that suit market participants ' demand and needs and ensure that all market participants are able to access the market individually or through aggregation . they shall respect the need to accommodate increasing shares of variable generation including energy storage as well as increased demand and energy storage responsiveness and the advent of new technologies .


### regional operational centres established pursuant to article 32 shall annually calculate the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located . a calculation is required for each bidding zone border . ### transmission system operators shall annually calculate , in coordination with the tsos concerned , the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located . a calculation is required for each bidding zone border .


### generating installations using renewable energy sources or high - efficiency cogeneration which have been commissioned prior to [ op : entry into force ] and have , when commissioned , been subject to priority dispatch under article 15 of directive 2012 / 27 / eu of the european parliament and of the council or article 16 of directive 2009 / 28 / ec of the european parliament and of the council 1 shall remain subject to priority dispatch . priority dispatch shall no longer be applicable from the date where the generating installation is subject to significant modifications , which shall be the case at least where a new connection agreement is required or the generation capacity is increased . ––––––––––––– directive 2009 / 28 / ec of the european parliament and of the council of 23 april 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing directives 2001 / 77 / ec and 2003 / 30 / ec . ### in order to maintain a stable regulatory framework for investors , generating or storage installations using renewable energy sources or high - efficiency cogeneration which have been commissioned prior to [ op : entry into force ] and have , when commissioned , been subject to priority dispatch under article 15 of directive 2012 / 27 / eu of the european parliament and of the council or article 16 of directive 2009 / 28 / ec of the european parliament and of the council 1 shall remain subject to priority dispatch . priority dispatch shall no longer be applicable from the date where the generating or storage installation is subject to significant modifications , which shall be the case at least where a new connection agreement is required or the generation or storage capacity is increased . ––––––––––––– directive 2009 / 28 / ec of the european parliament and of the council of 23 april 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing directives 2001 / 77 / ec and 2003 / 30 / ec .


### the commission may add other functions to the regional operational centres , not involving decision making power , pursuant to chapter vii of this regulation . ### each regional coordination centre shall aim to develop the following functions : coordination and optimisation of regional restoration ; post - operation and post - disturbance analysis and reporting ; facilitation of the regional dimension of capacity reserves ; facilitation of the regional procurement of balancing capacity ; optimisation of compensation mechanisms between transmission system operators ; training and certification ; identification of regional crisis scenarios according to article [ 6 ] of regulation . . . / . . . [ regulation on risk preparedness , com 862 ] if this task is delegated by entso for electricity ; tasks related to the identification of regional crisis scenarios if and to the extent they are delegated to the regional coordination centres pursuant to article [ 6 ] of regulation . . . / . . . [ regulation on risk preparedness , com 862 ] ; tasks related to the seasonal adequacy outlooks if and to the extent they are delegated to the regional operational centres pursuant to article [ 9 ] of regulation . . . / . . . [ regulation on risk preparedness , com 862 ] ;


### the resources curtailed or redispatched shall be selected amongst generation or demand facilities submitting offers for curtailment or redispatching using market - based mechanisms and be financially compensated . non - market - based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market - based alternative is available , where all available market - based resources have been used , or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition . the provision of market - based resources shall be open to all generation technologies , storage and demand response , including operators located in other member states unless technically not feasible . ### the resources curtailed or redispatched shall be selected amongst generation or demand facilities using market - based mechanisms and be financially compensated . non - market - based curtailment or redispatching of generation or redispatching of demand response shall only be used for operational security reasons and where no market - based alternative is available or where all available market - based resources have been used . the provision of market - based resources shall be open to all generation technologies , storage and demand response , including operators located in other member states unless technically not feasible .


### the commission decision shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . the commission may define appropriate transitional arrangements as part of its decision . ### the decision adopted under this article shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . appropriate transitional arrangements may be defined as part of the decision .


### actions which prevent price formation on the basis of demand and supply or constitute a disincentive to the development of more flexible generation , low carbon generation , or more flexible demand shall be avoided ; ### actions which prevent price formation on the basis of demand and supply shall be avoided ;


### 90 % of the net revenues from the sale of electricity on the day - ahead market that the generating or demand facility would have generated without the curtailment or redispatching request . where financial support is granted to generating or demand facilities based on the electricity volume generated or consumed , lost financial support shall be deemed part of the net revenues . ### 90 % of the net revenues from the sale of electricity on the day - ahead market that the generating , energy storage or demand facility would have generated without the curtailment or redispatching request . where financial support is granted to generating or demand facilities based on the electricity volume generated , stored or consumed , lost financial support shall be deemed part of the net revenues .


### regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected . ### regional coordination centres shall have the competence to adopt decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 .


### regional operational centres shall adopt recommendations addressed to the transmission system operators for the functions referred to in points to and to of article 34 . ### as regards the recommendations for the functions referred to in points and of article 34 , transmission system operators shall deviate only in cases where the safety of the system would be negatively affected .


### distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of article 35 [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] , shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators who wish to participate in the eu dso entity shall become registered members of the entity . ### all distribution system operators shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity and gas to support the development of a sustainable , decentralised and more integrated energy system , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators and associations that represent them at union level who wish to participate in the eu dso entity shall become registered members of the entity . statuses shall ensure that decision - making process takes into account regional differences of distribution network .


### balancing energy shall be procured separately from balancing capacity . procurement processes shall be transparent while at the same time respecting confidentiality . ### balancing energy shall be procured separately from balancing capacity . when economically efficient and subject to approval by the national regulatory authority , procurement of balancing energy and balancing capacity may be performed under an integrated process . procurement processes shall be transparent while at the same time respecting confidentiality .


### ' capacity mechanism ' means an administrative measure to ensure the achievement of the desired level of security of supply by remunerating resources for their availability not including measures relating to ancillary services ; ### ' capacity mechanism ' means an administrative measure to ensure the achievement of the necessary level of security of supply by remunerating resources for their availability not including measures relating to ancillary services ;


### regional operational centres shall complement the role of transmission system operators by performing functions of regional relevance . they shall establish operational arrangements in order to ensure the efficient , secure and reliable operation of the interconnected transmission system . ### regional coordination centres shall complement the role of transmission system operators by performing functions of regional relevance . the transmission system operators shall be responsible for managing electricity flows and ensuring a secure , reliable and efficient electricity system in accordance with article 40 of the [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] .


### distribution system operators which are not part of a vertically integrated undertaking or which are unbundled according to the provisions of article 35 [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] , shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators who wish to participate in the eu dso entity shall become registered members of the entity . ### distribution system operators , including de minimis distribution system operators , shall cooperate at union level through a european entity for distribution system operators , in order to promote the completion and functioning of the internal market in electricity , and to promote optimal management and a coordinated operation of distribution and transmission systems . distribution system operators who wish to participate in the eu dso entity shall have the right to become registered members of the entity .


### the resources curtailed or redispatched shall be selected amongst generation or demand facilities submitting offers for curtailment or redispatching using market - based mechanisms and be financially compensated . non - market - based curtailment or redispatching of generation or redispatching of demand response shall only be used where no market - based alternative is available , where all available market - based resources have been used , or where the number of generation or demand facilities available in the area where suitable generation or demand facilities for the provision of the service are located is too low to ensure effective competition . the provision of market - based resources shall be open to all generation technologies , storage and demand response , including operators located in other member states unless technically not feasible . ### the resources curtailed or redispatched shall be selected amongst generation , energy storage , and / or demand response facilities submitting offers for curtailment or redispatching using market - based mechanisms and be financially compensated . non - market - based curtailment or redispatching of generation or redispatching of energy storage and / or demand response shall only be used where no market - based alternative is available , where all available market - based resources have been used , or where the number of generation , energy storage or demand facilities available in the area where suitable generation , energy storage or demand facilities for the provision of the service are located is too low to ensure effective competition . the provision of market - based resources shall be open to all generation technologies , storage and demand response , including operators located in other member states unless technically not feasible .


### the day - to - day operation of regional operational centres shall be managed through cooperative decision - making . the cooperative - decision making process shall be based on : ### the performance of functions of regional coordination centres shall be managed through cooperative processes that rely on the involvement of the transmission system operators of the region , including arrangements for coordination between regional coordination centres where relevant . the cooperative process shall be based on :


### regional operational centres shall adopt binding decisions addressed to the transmission system operators in respect of the functions referred to in points , , and of article 34 . transmission system operators shall implement the binding decisions issued by the regional operational centres except in cases when the safety of the system will be negatively affected . ### regional coordination centres shall adopt recommendations addressed to the transmission system operators in respect of the functions referred to in article 34 . transmission system operators shall do their utmost to follow those recommendations .


### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , shall be transparent , take into account the need for network security and flexibility and reflect actual costs incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and shall not create disincentives for participation in demand response . without prejudice to paragraph 3 , those charges shall not be distance - related . ### charges applied by network operators for access to networks , including charges for connection to the networks , charges for use of networks , and , where applicable , charges for related network reinforcements , &#160 ; shall be transparent , take into account the need for network security and flexibility&#160 ; and reflect&#160 ; actual costs&#160 ; incurred insofar as they correspond to those of an efficient and structurally comparable network operator and are applied in a non - discriminatory manner . in particular , they shall be applied in a way which does not discriminate between production connected at the distribution level and production connected at the transmission level , either positively or negatively . they shall not discriminate against energy storage and aggregation and shall not create disincentives for self - generation , self - consumption and for participation in demand response . &#160 ; without prejudice to paragraph 3 , &#160 ; those charges shall not be distance - related .


### the commission shall , after consulting the agency , the entso for electricity and the other relevant stakeholders , establish a priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission may require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency . ### the commission shall , after consulting the agency , the entso for electricity , the distribution system operators and the other relevant stakeholders , establish an annual priority list every three years , identifying the areas set out in paragraph 1 to be included in the development of network codes . if the subject - matter of the network code is directly related to the operation of the distribution system and less relevant for the transmission system , the commission may require the eu dso entity for electricity instead of the entso for electricity to convene a drafting committee and submit a proposal for a network code to the agency .


### by way of derogation from paragraph 1 , until [ op : two years after entry into force ] market operators may apply limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that limits are , or are anticipated to be , reached , they shall be raised for the following day . ### by way of derogation from paragraph 1 , market operators may apply technical limits on maximum clearing prices for day - ahead and intraday timeframes in accordance with articles 41 and 54 of regulation 2015 / 1222 . in the event that those technical limits are , or are anticipated to be , reached , they shall be adjusted .


### a procedure for consulting the transmission system operators of the system operation region in the exercise of its operational duties and tasks , in accordance with article 37 ; ### a procedure for consulting the transmission system operators and relevant stakeholders of the system operation region in accordance with article 37 ;


### adoption of decisions and recommendations ### adoption of recommendations


### guarantee the capability of transmission and distribution networks to transmit electricity produced from renewable energy sources or high - efficiency cogeneration with minimum possible curtailment or redispatching . that shall not prevent network planning from taking into account limited curtailment or redispatching where this is shown to be more economically efficient and does not exceed 5 % of installed capacities using renewable energy sources or high - efficiency cogeneration in their area ; ### guarantee the capability of transmission and distribution networks to transmit electricity produced or stored from renewable energy sources or high - efficiency cogeneration with minimum possible curtailment or redispatching . that shall not prevent network planning from taking into account limited curtailment or redispatching where this is shown to be more economically efficient and does not exceed 5 % of installed or stored capacities using renewable energy sources , demand response or high - efficiency cogeneration at the connection point , provided that an appropriate consultation of stakeholders is carried out before its approval ;


### by [ op : please add specific date – three months after entry into force ] the agency shall provide a recommendation addressed to regulatory authorities on the progressive convergence of transmission and distribution tariff methodologies . that recommendation shall address at least : ### by [ op : please add specific date – three months after entry into force ] the agency shall define a publication template to favour transparency in the setting and structure of transmission tariffs . the template shall address at least the following minimum publication requirements regarding tariff charges :


### the management board shall be composed of members representing the transmission system operators and of observers representing the regulatory authorities of the system operation region . the representatives of the regulatory authorities shall have no voting rights . ### the management board shall be composed of members representing the transmission system operators of the system operation region .


### regional operational centres shall take the necessary steps to cover liability related to the execution of their tasks , in particular , where they adopt decisions binding on transmission system operators . the method employed to provide the cover shall take into account the legal status of the regional operational centre and the level of commercial insurance cover available . ### in the proposal for the establishment of regional coordination centres in accordance with article 32 , the transmission system operators of the system operation region shall include arrangements to cover liability related to the execution of its tasks . the method employed to provide the cover shall take into account the legal status of the regional coordination centre and the level of commercial insurance cover available .


### member states applying capacity mechanisms on [ op : entry into force of this regulation ] shall adapt their mechanisms to comply with articles 18 , 21 and 23 of this regulation . ### member states applying capacity mechanisms on [ op : entry into force of this regulation ] shall adapt their mechanisms to comply with articles 18 , 21 and 23 of this regulation by 31 december 2030 .


### regional operational centres shall adopt recommendations addressed to the transmission system operators for the functions referred to in points to and to of article 34 . ### as regards the recommendations for the functions referred to in points and article 34 , transmission system operators shall deviate only in cases when the safety of the system would be negatively affected .


### the commission decision shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . the commission may define appropriate transitional arrangements as part of its decision . ### the decision adopted under this article shall specify the date of implementation of a change . that implementation date shall balance the need for expediency with practical considerations , including forward trade of electricity . appropriate transitional arrangements may be defined as part of the decision .


### generating installations using high - efficiency cogeneration shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ; ### electricity generated in a high - efficiency cogeneration process shall only be subject to downward redispatching or curtailment if , other than curtailment or downward redispatching of generating installations using renewable energy sources , no other alternative exists or if other solutions would result in disproportionate costs or risks to network security ;


### member states shall monitor resource adequacy within their territory based on the european resource adequacy assessment pursuant to article 19 . ### member states shall monitor resource adequacy within their territory based on the national resource adequacy assessment . member states may refer to the european resource adequacy methodology pursuant to article 19 .


### ' strategic reserve ' means a capacity mechanism in which resources are only dispatched in case day - ahead and intraday markets have failed to clear , transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply , and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load ; ### ' strategic reserve ' means a capacity mechanism in which resources are held outside the market and are only dispatched in case day - ahead markets have failed to clear , transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply , and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load ;


### ' strategic reserve ' means a capacity mechanism in which resources are only dispatched in case day - ahead and intraday markets have failed to clear , transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply , and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load ; ### ' strategic reserve ' means a capacity mechanism in which resources are only dispatched in case day - ahead and intraday markets have failed to clear , transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply , and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load . the conditions for setting up strategic reserves must be set in a way that they will by no means encourage the new build of electricity generation . strategic reserve , that is created , must be operated only according to transparent and pre - agreed rules . the strategic reserve should not be used to reduce volatility of market electricity price or to reduce incentives of market participants to own , operate or invest into the generation / storage focused on benefiting from market price peaks . strategic reserve must be acquired through transparent and open bidding , in line with the unbundling rules and it cannot be owned neither by tsos , dsos or public sector .


### there shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . ### there shall be no maximum and no minimum limit of the wholesale electricity price . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices .


### regional operational centres shall submit an annual report concerning their performance to entso for electricity , the agency , the regulatory authorities of the system operation region and the electricity coordination group established pursuant to article 1 of commission decision 2012 / c 353 / 0237 . __________________ 37 commission decision of 15 november 2012 setting up the electricity coordination group . ### regional coordination centres shall submit an annual report containing relevant monitoring data pursuant to paragraph 1 and information on their performance to entso for electricity , the agency , the regulatory authorities of the system operation region and the electricity coordination group established pursuant to article 1 of commission decision 2012 / c 353 / 02 __________________ 37 commission decision of 15 november 2012 setting up the electricity coordination group .


### capacity providers shall be able to participate in more than one mechanism for the same delivery period . they shall be subject to non - availability payments in case of non - availability , and subject to two or more non - availability payments where there is concurrent scarcity in two or more bidding zones where the capacity provider is contracted . ### without prejudice to the limitations set out in paragraph 2 , capacity providers shall be able to participate in more than one mechanism for the same delivery period . they shall be subject to non - availability payments pursuant to the common rules referred to in paragraph 10 in case of non - availability .


### facilitate the regional procurement of balancing capacity ; ### calculation of the regional balancing capacity ;


### regional operational centres established pursuant to article 32 shall annually calculate the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located . a calculation is required for each bidding zone border . ### where capacity mechanisms are applied , transmission system operators shall assist relevant regulatory authorities in calculating the maximum entry capacity available for the participation of foreign capacity taking into account the expected availability of interconnection and the likely concurrence of system stress between the system where the mechanism is applied and the system in which the foreign capacity is located . a calculation is required for each bidding zone border .


### the procurement of balancing capacity shall be facilitated on a regional level in accordance with point 8 of annex i . the procurement shall be based on a primary market and organised in such a way as to be non - discriminatory between market participants in the prequalification process individually or through aggregation . ### the procurement of balancing capacity shall be performed by the transmission system operators . the procurement shall be based on a primary market and organised in such a way as to be non - discriminatory between market participants in the prequalification process individually or through aggregation .


### regulatory authorities shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems . for that purpose regulatory authorities shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks . ### member states shall provide incentives to distribution system operators to procure services for the operation and development of their networks and integrate innovative solutions in the distribution systems . for that purpose member states shall recognise as eligible and include all relevant costs in distribution tariffs and introduce performance targets in order to incentivise distribution system operators to raise efficiencies , including energy efficiency , in their networks .


### by [ op : twelve months after entry into force ] , all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter . regional operational centres shall be established in the territory of one of the member states of the region where it will operate . ### by [ op : twelve months after entry into force ] , all transmission system operators of a system operation region shall submit to the regulatory authorities of the region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter . that proposal shall include the following information : the member state where the regional coordination centre is to be located ; the organisational , financial and operational arrangements necessary to ensure the efficient , secure and reliable operation of the interconnected transmission system ; an implementation plan for the entry into operation of the regional coordination centres ; the statutes and rules of procedure of regional coordination centres ; a description of cooperative processes in accordance with article 35 ; a description of the arrangements concerning the liability of regional coordination centres in accordance with article 44 .


### ' strategic reserve ' means a capacity mechanism in which resources are only dispatched in case day - ahead and intraday markets have failed to clear , transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply , and imbalances in the market during periods where the reserves were dispatched are settled at the value of lost load ; ### ' strategic reserve ' means a capacity mechanism in which resources are only dispatched in case day - ahead markets have failed to clear or transmission system operators have exhausted their balancing resources to establish an equilibrium between demand and supply


### when applying capacity mechanisms member states shall have a reliability standard in place indicating their desired level of security of supply in a transparent manner . ### when applying capacity mechanisms member states shall have a reliability standard in place . a reliability standard shall indicate the necessary level of security of supply of the member state in a transparent manner .


### to address residual concerns that cannot be eliminated by the measures pursuant to article 18 , member states may introduce capacity mechanisms , subject to the provisions of this article and to the union state aid rules . ### member states may introduce capacity mechanisms , subject to the provisions of this article and to the union state aid rules .


### transmission system operators shall clearly establish beforehand how any congestion income will be used , and report on the actual use of that income . on an annual basis , and by 31 july each year , the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12 - month period ending on 30 june of the same year and how that revenue was used , including the specific projects the income has been used for or the amount placed on a separate account line , together with verification that that use complies with this regulation and the methodology developed pursuant to paragraph 3 . ### transmission system operators shall clearly establish beforehand how any congestion income will be used , and report on the actual use of that income . on an annual basis , and by 31 july each year , the national regulatory authorities shall publish a report setting out the amount of revenue collected for the 12 - month period ending on 30 june of the same year and how that revenue was used , including the specific projects the income has been used for the amount placed on a separate account line , or the amount that has been used when calculating network tariffs , together with verification that that use complies with this regulation . in such cases where some of the congestion revenues are used when calculating network tariffs , the report may set out the fulfilment by the tso of the commitment and balance sheet criteria pursuant to paragraph 2 .


### there shall be no maximum limit of the wholesale electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the wholesale electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . ### there shall be no maximum limit of the balancing market electricity price unless it is set at the value of lost load as determined in accordance with article 10 . there shall be no minimum limit of the balancing market electricity price unless it is set at a value of minus 2000 &#8364 ; or less and , in the event that it is or anticipated to be reached , set at a lower value for the following day . this provision shall apply , inter alia , to bidding and clearing in all timeframes and include balancing energy and imbalance prices . the price limits shall be the same for the common market area .


### short - term markets will improve liquidity and competition by enabling more resources to participate fully in the market , especially those that are more flexible . effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market . it is therefore critical to ensure that , as far as possible , administrative and implicit price caps are removed to allow scarcity prices to increase up to the value of lost load . when fully embedded in the market structure , short - term markets and scarcity pricing will contribute to the removal of other measures , such as capacity mechanisms , to ensure security of supply . at the same time , scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers , in particular households and smes . ### short - term markets will improve liquidity and competition by enabling more resources to participate fully in the market , especially those that are more flexible . effective scarcity pricing will encourage market participants to be available when the market most needs it and ensures that they can recover their costs in the wholesale market . it is therefore critical to ensure that , as far as possible , administrative and implicit price caps are removed to allow scarcity prices to increase up to the value of lost load . when fully embedded in the market structure , short - term markets and scarcity pricing will contribute to the removal of other measures , such as capacity mechanisms , to ensure security of supply . at the same time , scarcity pricing without price caps on the wholesale market should not jeopardize the possibility for reliable and stable prices for final customers , in particular households , smes and industrial consumers .


### the tasks of the eu dso entity shall be the following : ### the main task of the eu dso entity shall be the participation in the elaboration of network codes pursuant to article 56 . other tasks may include the exchange of views and best practices on :


### the commission may add other functions to the regional operational centres , not involving decision making power , pursuant to chapter vii of this regulation . ### each regional coordination centre shall aim to develop the following functions : coordination and optimisation of regional restoration ; post - operation and post - disturbance analysis and reporting ; facilitation of the regional dimension of capacity reserves ; facilitation of the regional procurement of balancing capacity ; optimisation of compensation mechanisms between transmission system operators ; training and certification ; identification of regional crisis scenarios according to article [ 6 ] of regulation . . . / . . . [ regulation on risk preparedness , com 862 ] if this task is delegated by entso for electricity ; tasks related to the identification of regional crisis scenarios if and to the extent they are delegated to the regional coordination centres pursuant to article [ 6 ] of regulation . . . / . . . [ regulation on risk preparedness , com 862 ] ; tasks related to the seasonal adequacy outlooks if and to the extent they are delegated to the regional operational centres pursuant to article [ 9 ] of regulation . . . / . . . [ regulation on risk preparedness , com 862 ] ;


### the transmission system operators participating in the bidding zone review shall submit a proposal to the commission regarding whether to amend or maintain the bidding zone configuration . based on that proposal , the commission shall adopt a decision whether to amend or maintain the bidding zone configuration , [ no later than 6 months after entry into force of this regulation , specific date to be inserted by op ] or by six months after the conclusion of the bidding zone configuration launched in accordance with points , or of article 32 of regulation 2015 / 1222 , whichever comes later . ### the transmission system operators participating in the bidding zone review shall submit a proposal to the relevant member states whether to amend or maintain the bidding zone configuration . the relevant member states are those participating in the review pursuant to article 32 of regulation 2015 / 1222 and those in the same capacity calculation region pursuant to regulation 2015 / 1222 . based on the proposal , the relevant member states shall come to a unanimous decision within six months on whether to amend or maintain the bidding zone configuration . other member states or third countries may submit comments . the decision shall be reasoned , in accordance with relevant union law and shall take account of the observations of other member states and third countries , as well as of commitments on addressing existing congestion made by the relevant member states . the relevant member states shall notify the commission and the agency of their decision and any cross - border agreements entered into by the member states , the national regulatory authorities or the transmission system operators for the purpose of achieving consensus . agreements entered into by the relevant member states shall not deviate from coordinated capacity calculation processes as set out in article 14 nor from the relevant provisions of regulation 2015 / 1222 .


### barriers to cross - border electricity flows and cross - border transactions on electricity markets and related services markets shall be avoided ; ### barriers to cross - border electricity flows and cross - border transactions on electricity markets and related services markets shall be removed ;


### distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers , and may be differentiated based on system users’ consumption or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable way for the consumer . ### distribution tariffs shall reflect the cost of use of the distribution network by system users including active customers , may contain grid connection capacity elements and may be differentiated based on system users’ consumption or generation profiles . where member states have implemented the deployment of smart metering systems , regulatory authorities may introduce time differentiated network tariffs , reflecting the use of the network , in a transparent and foreseeable way for the consumer .


### regional operational centres shall complement the role of transmission system operators by performing functions of regional relevance . they shall establish operational arrangements in order to ensure the efficient , secure and reliable operation of the interconnected transmission system . ### regional coordination centres shall complement the role of transmission system operators by performing functions of regional relevance . the transmission system operators shall be responsible for managing electricity flows and ensuring a secure , reliable and efficient electricity system in accordance with article 40 of the [ recast of directive 2009 / 72 / ec as proposed by com 864 / 2 ] .


### member states shall publish a timeline for adopting measures to eliminate any identified regulatory distortions . when addressing resource adequacy concerns member states shall in particular consider removing regulatory distortions , enabling scarcity pricing , developing interconnection , energy storage , demand side measures and energy efficiency . ### member states with identified adequacy concerns shall publish an implementation plan with a timeline for adopting measures to eliminate any identified regulatory distortions . when addressing resource adequacy concerns member states shall comply with article 3 , and shall , in particular : remove regulatory distortions ; remove unnecessary price caps ; introduce an administrative shortage pricing function as referred to in article 44 of [ the commission regulation establishing a guideline on electricity balancing ] ; increase interconnection capacity ; develop demand - side measures ; ensure efficient delineation of bidding zones reflecting transmission constraints ; ensure efficient market - based balancing and ancillary services ; remove regulated prices .


### the commission shall consult relevant stakeholders on its decisions under this article before they are adopted . ### the member states and the commission shall consult relevant stakeholders before adopting decisions under this article .


### tariffs shall grant appropriate incentives to transmission and distribution system operators , over both the short and long term , to increase efficiencies , including energy efficiency , foster market integration and security of supply , and support investments and the related research activities . ### tariffs shall grant appropriate incentives to transmission and distribution system operators , over both the short and long term , to increase efficiencies , including energy efficiency , foster market integration and security of supply , and support investments and the related research activities . tariffs shall not create disincentives for energy storage , demand response or self - generation production .


### tariffs shall grant appropriate incentives to transmission and distribution system operators , over both the short and long term , to increase efficiencies , including energy efficiency , foster market integration and security of supply , and support investments and the related research activities . ### tariffs shall grant appropriate incentives to transmission and distribution system operators , over both the short and long term , to increase efficiencies , including energy efficiency foster market integration , including for renewable sources and energy storage facilities , and security of supply , and support investments and the related research activities


### regional operational centres should carry out functions where their regionalisation brings added value compared to functions performed at national level . the functions of regional operational centres should cover the functions carried out by regional security coordinators as well as additional system operation , market operation and risk preparedness functions . the functions carried out by regional operational centres should exclude real time operation of the electricity system . ### regional coordination centres should carry out functions where their regionalisation brings added value compared to functions performed at national level . the functions of regional coordination centres should cover the functions carried out by regional security coordinators as well as additional ones of regional importance . the functions carried out by regional coordination centres should exclude real time operation of the electricity system .


### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and eliminate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner subject to compliance with eu treaty rules on competition . ### long - term hedging opportunities , which allow market participants to hedge against price volatility risks on a market basis , and eliminate uncertainty on future returns on investment shall be tradable on exchanges in a transparent manner ; similarly , long - term supply contracts shall be negotiated over the counter . both shall be compliant with eu treaty rules on competition .


### by [ op : twelve months after entry into force ] , all transmission system operators shall establish regional operational centres in accordance with the criteria set out in this chapter . regional operational centres shall be established in the territory of one of the member states of the region where it will operate . ### by [ op : twelve months after entry into force ] , all transmission system operators of a system operation region shall submit to the regulatory authorities of the region for a review a proposal for the establishment of regional coordination centres in accordance with the criteria set out in this chapter . the proposal shall include the following information : member state where the regional coordination centre will be located ; the organisational , financial and operational arrangements necessary to ensure the efficient , secure and reliable operation of the interconnected transmission system ; an implementation plan for the entry into operation of the regional coordination centres ; the statutes and rules of procedure of regional coordination centres ; a description of cooperative processes in accordance with article 35 ; a description of the arrangements concerning the liability of regional coordination centres in accordance with article 44 .