### the regions are to be defined , as far as possible , on the basis of existing regional cooperation structures set up by the member states and the commission , in particular the regional groups set up under regulation 347 / 2013 on guidelines for trans - european energy infrastructure17 . however , since this regulation and the ten - e regulation have different aims , the respective regional groups may differ in size and design . __________________ 17 regulation no 347 / 2013 of the european parliament and of the council of 17 april 2013 on guidelines for trans - european energy infrastructure and repealing decision no 1364 / 2006 / ec and amending regulation no 713 / 2009 , 714 / 2009 and no 715 / 2009 . ### the regions should be established , as far as possible , on the basis of existing regional cooperation structures established by the member states and the commission , in particular the regional groups set up under regulation no 347 / 2013 of the european parliament and of the council17 . however , since this regulation and regulation no 347 / 2013 have different aims , the respective regional groups may differ in size and design . __________________ 17 regulation no 347 / 2013 of the european parliament and of the council of 17 april 2013 on guidelines for trans - european energy infrastructure and repealing decision no 1364 / 2006 / ec and amending regulation no 713 / 2009 , 714 / 2009 and no 715 / 2009 .


### an internal gas market that operates smoothly is the best guarantee of security of energy supply across the union and to reduce the exposure of individual member states to the harmful effects of supply disruptions . where a member state ' s security of supply is threatened , there is a risk that measures developed unilaterally by that member state may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other member states . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination in the response to supply crises , as regards both preventive action and the reaction to actual disruptions of supply . ### a well - interconnected and well - functioning internal gas market , free of ' energy islands ' , is the best means by which to ensure security of gas supply across the union while reducing the exposure of individual member states to harmful effects of supply disruptions . where a member state ' s security of gas supply is threatened , there is a risk that measures developed unilaterally by that member state may damage gas supply to customers in other member states , negatively affecting the proper functioning of the internal gas market . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination at regional and union level as regards both preventive action and reaction to actual disruptions of supply .


### in march 2015 , the european council concluded that gas supply contracts with suppliers from third countries should be made more transparent and compatible with the union energy security provisions . in this context an efficient and targeted mechanism for member states ' access to key gas supply contracts should ensure a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur . under that mechanism certain key gas supply contracts should be automatically notified , immediately after their conclusion , to the member states . however , any obligation to notify a contract automatically needs to be proportionate . applying this obligation to contracts between a supplier and a buyer covering 40% of the national market strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants . this does not mean that other gas supply contracts are not relevant to security of supply . accordingly , member states should have the right to request other contracts which might negatively affect security of supply of a member state or region or of the union as a whole . the commission should have the same access to the gas supply contracts as member states , given its role in assessing the consistency and effectiveness of the preventive action plans and emergency plans to address risks to security of supply at national , regional and eu level . the commission may call on the member states to amend the plans so as to take account of the information obtained from the contracts . the confidentiality of commercially sensitive information should be ensured . improved commission access to information on commercial contracts should not affect the commission ' s ongoing efforts to monitor the gas market , and the commission should intervene if violations of the union law are identified . the provisions of this regulation should be without prejudice to the right of the commission to launch infringement proceedings in accordance with article 258 of the treaty on the functioning of the european union and to enforce competition rules , including state aid . ### completing the internal energy market will create a level playing field , ensuring that all energy supply contracts throughout the union are based on market prices and competition rules . in march 2015 , the european council concluded that gas supply contracts with suppliers from third countries should be made more transparent and compatible with the union energy security provisions . in this context an efficient and targeted mechanism for member states ' access to key gas supply contracts should ensure a comprehensive assessment of relevant risks that can lead to a supply disruption or interfere with the necessary mitigating measures should a crisis nevertheless occur . under that mechanism certain key gas supply contracts should be automatically notified , immediately after their conclusion , to the member states . however , any obligation to notify a contract automatically needs to be proportionate . applying this obligation to contracts between a supplier or its affiliates and a buyer or its affiliates that jointly cover at least 40 % of imports from third countries to the member state strikes the right balance in terms of administrative efficiency and lays down clear obligations for market participants . this does not automatically imply that other gas supply contracts are not relevant to security of supply . accordingly , member states should have the right to request other contracts which might negatively affect security of supply of a member state or a region or the union . the commission should have the same access to the gas supply contracts as member states , given its role in assessing the consistency and effectiveness of the preventive action plans and the emergency plans to address risks to security of supply at national , regional and union level . the commission should be able to request member states to amend the plans so as to take account of the information obtained from the contracts . the confidentiality of commercially sensitive information should be ensured . increased commission access to information on commercial contracts should not affect the commission ' s ongoing efforts to monitor the gas market , and the commission should intervene if violations of the union law are identified . the provisions of this regulation should be without prejudice to the right of the commission to launch infringement proceedings in accordance with article 258 of the treaty on the functioning of the european union and to enforce competition rules , including with regard to state aid .


### the competent authorities of each region as listed in annex i shall jointly make an assessment at regional level of all risks affecting the security of gas supply . the assessment shall take into account all relevant risks such as natural disasters , technological , commercial , social , political and other risks . the risk assessment shall be carried out by : ### the competent authorities of each region shall jointly make an assessment at regional level of all risks affecting the security of gas supply . the assessment shall take into account all relevant risks such as natural disasters , technological , commercial , social , political and other risks . the risk assessment shall be carried out by :


### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . ### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with the same supplier from a third country or from its affiliates , with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with contracts of other natural gas undertakings on the same market with the same supplier or its affiliates provide more than 40% of total annual gas imports from third countries to the member state concerned . the notification obligation shall not apply to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . to that end , the national regulatory authorities shall monitor the market supply structure and inform the relevant natural gas undertakings once the 40% threshold is exceeded .


### to assess the security of supply situation of a given member state or region or of the union , access to the relevant information is essential . in particular , member states and the commission need regular access to information from natural gas undertakings regarding the main parameters of the gas supply as a fundamental input in the design of the security of supply policies . under duly justified circumstances , irrespective of a declaration of emergency , access should also be possible to additional information needed to assess the overall gas supply situation . that additional information would typically be non - price - related gas delivery information , e . g . minimum and maximum gas volumes , delivery points or supply margins . it could , for example , be requested in the event of changes in the pattern of the gas supply to a given buyer or buyers in a member state which would not be expected if the markets were functioning normally and which could affect the gas supply of the union or parts of it . ### to assess the security of gas supply situation of a member state , a region or the union , access to the relevant information is essential . in particular , member states and the commission need regular access to information from natural gas undertakings regarding the main parameters of the gas supply as a fundamental input in the design of the security of gas supply policies . on reasonable grounds , irrespective of a declaration of emergency , access should also be possible to additional information needed to assess the overall gas supply situation . that additional information would typically be non - price - related gas delivery information , e . g . minimum and maximum gas volumes , delivery points or supply margins . it could , for example , be requested in the event of changes in the pattern of the gas supply to a given buyer or buyers in a member state which would not be expected if the markets were functioning normally and which could affect the gas supply of the union or parts of it .


### by 1 november 2017 entso for gas shall carry out a union wide simulation of supply and infrastructure disruption scenarios . the scenarios shall be defined by entso for gas in consultation with the gas coordination group . the competent authorities shall provide entso for gas with the necessary data for the simulations such as peak demand values , production capacity and demand side measures . the competent authorities shall take into account the results of the simulations for the preparation of the risk assessments , preventive action plans and emergency plans . the union - wide simulation of supply and infrastructure disruption scenarios shall be updated every four years unless circumstances warrant more frequent updates . ### the competent authorities shall take into account the results of the union wide simulations carried out by entso for gas for the preparation of the risk assessments , preventive action plans and emergency plans .


### regulation no 994 / 2010 of the european parliament and of the council of 20 october 2010 concerning measures to safeguard security of gas supply has already had a significant positive impact on the union situation as regards the security of the gas supply , both in terms of preparation and mitigation . member states are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures , and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply . however , the implementation report of regulation no 994 / 2010 of october 2014 highlighted areas in which improvements to that regulation could further bolster the union supply security . ### existing union law , in particular the relevant elements of the third energy package and regulation no 994 / 2010 of the european parliament and of the council1a , has already had a significant positive impact on the security of gas supply in the union , both in terms of preparation and mitigation . member states are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures , and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply . however , the implementation report of regulation no 994 / 2010 of october 2014 highlighted areas in which improvements to that regulation could further bolster the union ' s supply security . __________________ 1a regulation no 994 / 2010 of the european parliament and of the council of 20 october 2010 concerning measures to safeguard security of gas supply and repealing council directive 2004 / 67 / ec .


### the commission ' s communication on the short - term resilience of the european gas system from october 201413 analysed the effects of a partial or complete disruption of gas supplies from russia and concluded that purely national approaches are not very effective in the event of severe disruption , given their scope , which is by definition limited . this stress test showed how a more cooperative approach among member states could significantly reduce the impact of very severe disruption scenarios in the most vulnerable member states . __________________ 13 com 654 final ### the commission ' s communication of 16 october 2014 on the short - term resilience of the european gas system analysed the effects of a partial or complete disruption of gas supplies from russia and concluded that many of the national approaches are unilateral in nature , insufficiently coordinated or insufficiently cooperative , and thus not very effective in the event of severe disruption . this stress test showed that a more cooperative approach among member states could significantly reduce the impact of very severe disruption scenarios in the most vulnerable member states .


### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in each member state of the region , as laid down in articles 4 and 5 , including where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the necessary gas volumes per category of protected customers and per scenario as referred to in article 5 and any increased supply standard under article 5 , including a justification of the compliance with the conditions set in article 5 and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with article 12 ; ### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in each member state of the region , as laid down in articles 4 and 5 , including where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the identification of the single largest gas supplier , the necessary gas volumes per category of protected customers and per scenario as referred to in article 5 and any increased supply standard under article 5 , including reasons for the compliance with the conditions set in article 5 and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with article 12 ;


### it is necessary to ensure the predictability of the action to take in the event of an emergency , allowing all market participants sufficient opportunity to react and also prepare for such circumstances . as a rule , the competent authorities should therefore abide by their emergency plan . in duly justified exceptional circumstances , they should be allowed to take action which deviates from those plans . it is also important to make the way in which emergencies are announced more transparent and predictable . information on the system balancing position , the framework for which is set out in commission regulation no 312 / 201419 , may play an important role in this regard . that information should be available to competent authorities and the national regulatory authorities , if the latter are not the competent authority on a real time basis . __________________ 19 commission regulation no 312 / 2014 of 26 march 2014 establishing a network code on gas balancing of transmission networks . ### it is necessary to ensure the predictability of actions to be taken in the event of an emergency , granting all market participants sufficient opportunity to prepare for such situations and react to them . as a rule , the competent authorities should therefore comply with their emergency plan . in exceptional circumstances and on reasonable grounds , they should be allowed to take action which deviates from those plans . the manner in which emergencies are announced should be more transparent and predictable . information on the system balancing position , the framework for which is laid down in commission regulation no 312 / 201419 , may play an important role in this regard . that information should be available on a real - time basis to the competent authorities and to the national regulatory authorities , if they are not the competent authorities . __________________ 19 commission regulation no 312 / 2014 of 26 march 2014 establishing a network code on gas balancing of transmission networks .


### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , commercial , financial , social , political and market - related risks , and any other relevant ones , including , where appropriate , the disruption of the supplies from the single largest supplier . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in the preventive action plan and the emergency plan . the results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of decision no 1313 / 2013 / eu18 . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism . ### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , infrastructural , commercial , financial , social , political , market - related , and any other relevant risks , including , where appropriate , disruption of supplies from dominant suppliers . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in preventive action plan and emergency plan . the results of the risk assessments should also contribute to the all risk assessments provided for in article 6 of decision no 1313 / 2013 / eu of the european parliament and of the council18 . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism .


### the roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the internal gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a three - level approach is respected which would involve first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union . this regulation should enable natural gas undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions . however , it should also provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption . ### the roles and responsibilities of all natural gas undertakings and competent authorities should therefore be defined precisely in order to keep the internal gas market functioning properly , particularly in the event of supply disruptions and crises . such roles and responsibilities should be established in such a way as to ensure that a three - level approach is respected which would involve first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union . to that end , effective information - sharing across all levels should provide early warning with regard to disruption and the means of mitigation . this regulation is intended to enable natural gas undertakings and customers to rely on market mechanisms for as long as possible when coping with disruptions . however , it is also intended to provide for mechanisms that can be deployed when markets alone are no longer able to deal adequately with a gas supply disruption .


### if the member states do not agree on the necessary technical , legal and financial arrangements , the commission may propose a framework for such measures in its opinion and decision on the plans . ### if the member states do not agree on the necessary technical , legal and financial arrangements , the commission shall develop a framework for such measures in accordance with paragraph 4 .


### to facilitate communication between member states and the commission , the risk assessments , the preventive action plans , the emergency plans and all other documents and information exchanges covered by this regulation must be notified using a standard electronic notification system . ### to facilitate communication between member states and the commission , the risk assessments , the preventive action plans , the emergency plans and all other documents and information exchanges provided for in this regulation should be notified using a standard electronic notification system .


### ' protected customer ' means a household customer connected to a gas distribution network and , in addition , where the member state concerned so decides , may also mean one or more of the following : ### ' protected customer ' means a household customer , an essential social service or a district heating installation to the extent that it delivers heating to household customers and essential social services , which is connected to a gas distribution network ;


### identify the contribution of market - based measures for coping with the situation at alert level and mitigating the situation at emergency level ; ### identify the contribution of market - based measures , including voluntary demand aggregation , for coping with the situation at alert level and mitigating the situation at emergency level ;


### the member states shall carry out an impact assessment on all preventive non - market based measures to be adopted after the entry into force of this regulation , including the measures to comply with the supply standard set out in article 5 and the measures for the increased supply standard set out in article 5 . such impact assessment shall cover at least the following : ### the member states , or , where member states so provide , their national regulatory authorities , shall carry out an impact assessment on all preventive non - market based measures to be adopted or maintained after the entry into force of this regulation , including the measures to comply with the supply standard set out in article 5 and the measures for the increased supply standard set out in article 5 . that impact assessment shall cover at least the following :


### so far , the potential for more efficient and less costly measures through regional cooperation has not been fully exploited . this has to do not only with better coordination of national mitigation actions in emergency situations , but also of national preventive measures , such as national storage or policies related to liquefied natural gas , which can be strategically important in certain regions . ### so far , the potential of regional cooperation to introduce more efficient and less costly measures has not been fully exploited . this applies to better coordination of national mitigation actions in emergency situations as well as to national preventive measures , such as national storage or policies related to liquefied natural gas , which can be strategically important in certain regions .


### to assess the security of supply situation of a given member state or region or of the union , access to the relevant information is essential . in particular , member states and the commission need regular access to information from natural gas undertakings regarding the main parameters of the gas supply as a fundamental input in the design of the security of supply policies . under duly justified circumstances , irrespective of a declaration of emergency , access should also be possible to additional information needed to assess the overall gas supply situation . that additional information would typically be non - price - related gas delivery information , e . g . minimum and maximum gas volumes , delivery points or supply margins . it could , for example , be requested in the event of changes in the pattern of the gas supply to a given buyer or buyers in a member state which would not be expected if the markets were functioning normally and which could affect the gas supply of the union or parts of it . ### to assess the security of gas supply situation of a given member state , a region or the union , access to the relevant information is essential . in particular , member states and the commission need access to relevant and non - confidential information from natural gas undertakings regarding the main parameters of the gas supply as a fundamental input in the design of the security of gas supply policies . under duly justified circumstances , irrespective of a declaration of emergency , access should also be possible to additional information needed to assess the overall gas supply situation . that additional information would typically be non - price - related gas delivery information , e . g . minimum and maximum gas volumes , delivery points or supply margins .


### the member states acting on their own cannot satisfactorily achieve the objective of this regulation , namely to guarantee a secure gas supply within the union . given the scale or effects of the action , it is better achieved at union level . the union may therefore adopt measures , in accordance with the principle of subsidiarity set out in article 5 of the treaty on european union . in accordance with the principle of proportionality set out in that article , this regulation does not go beyond what is necessary to achieve that objective . ### since the objective of this regulation , namely to guarantee a secure gas supply within the union , cannot be sufficiently achieved by member states acting on their own , but can rather , by reason of its scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality as set out in that article , this regulation does not go beyond what is necessary to achieve that objective .


### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings , should be the guiding principle of this regulation , to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost - effective measures for union consumers . ### in a spirit of solidarity , regional cooperation which involves both public authorities and natural gas undertakings is the guiding principle of this regulation , with the aim of identifying the relevant risks in each region , optimising the benefits of coordinated measures to mitigate them , while ensuring that the measures are cost - effective for customers . regional cooperation should gradually be complemented with a stronger union perspective , allowing recourse to all available supplies and tools in the entire internal gas market . this could be facilitated by providing in - depth analysis at union level on the relevant emergency supply corridors , based on gas supply sources common for a group of member states .


### regulation no 994 / 2010 requires transmission system operators to enable permanent bi - directional capacity on all cross - border interconnections unless an exemption has been granted from this obligation . it aims to ensure that the possible benefits of permanent bi - directional capacity are always taken into account when a new interconnector is planned . however , bi - directional capacity can be used to supply gas both to the neighbouring member state and to others along the gas supply corridor . the benefits for security of supply of enabling permanent bi - directional capacity thus need to be seen in a broader perspective , in a spirit of solidarity and enhanced cooperation . a cost - benefit analysis that takes account of the whole transportation corridor should therefore be conducted when considering whether to implement bi - directional capacity . the competent authorities should accordingly be required to re - examine the exemptions granted under regulation 994 / 2010 on the basis of the results of the regional risk assessments . ### regulation no 994 / 2010 requires transmission system operators to enable permanent bi - directional capacity on all cross - border interconnections unless an exemption has been granted from this obligation . it aims to ensure that the possible benefits of permanent bi - directional capacity are always taken into account when a new interconnector is planned . however , bi - directional capacity can be used to supply gas both to the neighbouring member state and to others along the gas supply corridor . the benefits to the security of gas supply of enabling permanent bi - directional capacity need to be seen from a broader perspective , in a spirit of solidarity and enhanced cooperation . a cost - benefit analysis that takes account of the whole transportation corridor should be conducted when considering whether to implement bi - directional capacity . the competent authorities should be required to re - examine the exemptions granted under regulation no 994 / 2010 on the basis of the results of regional risk assessments .


### no later than 31 march 2017 member states shall notify the commission their definition of protected customers , the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that member state . where a member state includes in its definition of protected customers the categories referred to in point or of article 2 it shall specify in the notification to the commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas . ### no later than 31 march 2017 member states shall notify the commission the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that member state , as well as the extent to which the gas supply to its protected customers may influence cross - border flows to other member states .


### as long as the supply to households , essential social services and district heating installations in the member state having declared the emergency is not satisfied , despite the application of the measure in paragraph 1 , the gas supply to customers other than households , essential social services and district heating installations in any other member state , directly connected to the member state which declared the emergency , shall not continue to the extent necessary to supply the households , essential social services and district heating installations in the member states having declared the emergency . ### as long as gas supply to protected customers in the member state that have called for the application of solidarity measures is not satisfied , the gas supply to protected customers in any other member state , directly connected to that member state , shall not continue to the extent necessary to supply the protected customers in the member states having declared the emergency .


### when implementing the measures provided for in this regulation , the competent authority shall establish the roles and responsibilities of the different actors involved in such a way as to ensure that a three - level approach is respected which involves first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union . ### when implementing the measures provided for in this regulation , the competent authority shall establish the roles and responsibilities of the different actors involved in such a way as to ensure a three - level approach which involves first the relevant natural gas undertakings and industry , then member states at national or regional level , and then the union .


### one of the union goals is to strengthen the energy community that would ensure effective implementation of the union energy acquis , energy market reforms and incentivising investments in the energy sector by closer integration of the union and energy community energy markets . this entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the energy community contracting parties . furthermore , the commission communication on the short term resilience of the european gas system from october 2014 refers to the need to apply internal energy market rules on the flow of energy between the union member states and the energy community contracting parties . in this regard , in order to ensure an efficient crisis management on borders between the union member states and the contracting parties , the necessary arrangements following the adoption of a joint act should be set so that specific cooperation with any individual energy community contracting party can take place once the required mutual provisions have been duly put into place . . ### one of the union goals is to strengthen the energy community in order to ensure effective implementation of the union energy acquis , energy market reforms and incentives to invest in the energy sector by closer integration of the union and energy community energy markets . this also entails introducing common crisis management by proposing preventive action plans and emergency plans at the regional level including the energy community contracting parties . furthermore , the commission communication of 16 october 2014 on the short term resilience of the european gas system refers to the need to apply internal energy market rules on the flow of energy between the union member states and energy community contracting parties . in this regard , in order to ensure efficient crisis management on borders between the union member states and the energy community contracting parties , necessary arrangements following the adoption of a joint act should be set so that specific cooperation with any individual energy community contracting party can take place once the required mutual provisions have been duly put into place .


### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans . ### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities of connected member states do not agree on the content of the regional aspects of the preventive action plan , the commission may propose a regional cooperation mechanism . they shall ensure the regular monitoring of the implementation of such plans .


### a major disruption of the gas supply can affect all member states , the union as a whole and contracting parties to the treaty establishing the energy community , signed in athens on 25 october 2005 . it can also severely damage the union economy and can have a major social impact , particularly on vulnerable groups of customers . ### the high level of interdependence of member states and european third countries is also a feature of the field of energy . a major disruption of gas supply in one country can affect multiple other member states , the union or contracting parties to the treaty establishing the energy community . it can weaken overall security , severely damage the economy and have a major social impact , particularly on vulnerable groups of customers , especially in countries which are overly dependent on a single dominant supplier .


### the regions are to be defined , as far as possible , on the basis of existing regional cooperation structures set up by the member states and the commission , in particular the regional groups set up under regulation 347 / 2013 on guidelines for trans - european energy infrastructure17 . however , since this regulation and the ten - e regulation have different aims , the respective regional groups may differ in size and design . __________________ 17 regulation no 347 / 2013 of the european parliament and of the council of 17 april 2013 on guidelines for trans - european energy infrastructure and repealing decision no 1364 / 2006 / ec and amending regulation no 713 / 2009 , 714 / 2009 and no 715 / 2009 . ### the regions should be established , as far as possible , on the basis of existing regional cooperation structures established by the member states and the commission , in particular the regional groups set up under regulation no 347 / 2013 of the european parliament and of the council17 . however , since this regulation and regulation no 347 / 2013 have different aims , the respective regional groups may differ in size and design . __________________ 17 regulation no 347 / 2013 of the european parliament and of the council of 17 april 2013 on guidelines for trans - european energy infrastructure and repealing decision no 1364 / 2006 / ec and amending regulation no 713 / 2009 , 714 / 2009 and no 715 / 2009 .


### in duly justified circumstances , where the competent authority or the commission considers that a gas supply contract not covered by paragraph 6 of this article might affect the security of supply of a member state , region or of the union as whole , the competent authority of the member state where the natural gas undertaking who has concluded the contract operates or the commission may request the natural gas undertaking to provide the contract for the assessment of its impact on security of supply . the request may cover also any other commercial agreements relevant for the execution of the gas supply contract . ### where the competent authority or the commission considers that a gas supply contract not covered by paragraph 6 of this article might affect the security of gas supply of a member state , region or of the union as whole , the competent authority of the member state where the natural gas undertaking who has concluded the contract operates or the commission shall request the natural gas undertaking to provide the contract for the assessment of its impact on security of supply . the request may cover also any other commercial agreements relevant for the execution of the gas supply contract or commercial agreements for the development and operation of infrastructure .


### this regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the union , in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply . these objectives should be achieved through the most cost - effective measures and in such a way that energy markets are not distorted . ### this regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the union , in particular to protected customers in the event of difficult climatic conditions or disruptions of gas supply . this should be achieved through cost - effective measures , in a way that energy markets are not distorted , in accordance with article 194 of the treaty on european union and with the goals of the energy union strategy relating to the security and diversification .


### an internal gas market that operates smoothly is the best guarantee of security of energy supply across the union and to reduce the exposure of individual member states to the harmful effects of supply disruptions . where a member state ' s security of supply is threatened , there is a risk that measures developed unilaterally by that member state may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other member states . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination in the response to supply crises , as regards both preventive action and the reaction to actual disruptions of supply . ### a well - interconnected and well - functioning internal gas market , free of ' energy islands ' , is the best means by which to ensure security of gas supply across the union while reducing the exposure of individual member states to harmful effects of supply disruptions . where a member state ' s security of gas supply is threatened , there is a risk that measures developed unilaterally by that member state may damage gas supply to customers in other member states , negatively affecting the proper functioning of the internal gas market . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination at regional and union level as regards both preventive action and reaction to actual disruptions of supply .


### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings . ### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings , ensuring a fair and appropriate level of compensation for natural gas undertakings that fully reflects the market value of the costs related to the interruption of supplies - including its effect on the electricity sector - resulting from implementation of article 12 , and should disincentive recourse to the solidarity mechanism as anything but a measure of last - resort .


### to ensure that the emergency plans are always up - to - date and effective , member states should carry out tests between the updates of the plans by simulating high and medium - impact scenarios and responses in real time . the competent authorities should present the test results at the gas coordination group . ### to ensure that the emergency plans are always up - to - date and effective , the competent authorities should carry out tests between the updates of the plans by simulating high and medium - impact scenarios and responses in real time . the competent authorities should present the test results at the gas coordination group .


### as long as the supply to households , essential social services and district heating installations in the member state having declared the emergency is not satisfied , despite the application of the measure in paragraph 1 , the gas supply to customers other than households , essential social services and district heating installations in any other member state , directly connected to the member state which declared the emergency , shall not continue to the extent necessary to supply the households , essential social services and district heating installations in the member states having declared the emergency . ### as long as protected customers in the member state having declared the emergency is not satisfied , and the purchase of gas is no longer an option , the gas supply to customers other than protected customers in any other member state , directly connected to the member state which declared the emergency , shall not continue to the extent necessary to supply the protected customers in the member states having declared the emergency .


### regulation no 994 / 2010 of the european parliament and of the council of 20 october 2010 concerning measures to safeguard security of gas supply has already had a significant positive impact on the union situation as regards the security of the gas supply , both in terms of preparation and mitigation . member states are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures , and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply . however , the implementation report of regulation no 994 / 2010 of october 2014 highlighted areas in which improvements to that regulation could further bolster the union supply security . ### existing union law , in particular the relevant elements of the third energy package and regulation no 994 / 2010 of the european parliament and of the council1a , has already had a significant positive impact on the security of gas supply in the union , both in terms of preparation and mitigation . member states are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures , and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply . however , the implementation report of regulation no 994 / 2010 of october 2014 highlighted areas in which improvements to that regulation could further bolster the union ' s supply security . __________________ 1a regulation no 994 / 2010 of the european parliament and of the council of 20 october 2010 concerning measures to safeguard security of gas supply and repealing council directive 2004 / 67 / ec .


### certain customers , including households and customers providing essential social services , are particularly vulnerable and may need social protection . a definition of such protected customers should not conflict with the union solidarity mechanisms . ### certain customers , including households and customers that provide essential social services , are particularly vulnerable to supply disruptions and may need special protection . a definition of such protected customers should be harmonised across the union to an extent which does not conflict with the union solidarity mechanisms .


### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . ### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements shall cover , among others , gas prices to be applied , use of interconnectors , including guaranteed bi - directional capacity , gas volumes and the coverage of compensation costs . acer may act as a facilitator in calculating the compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . the commission shall prepare guidelines for templates for the solidarity measures , including model clauses , and publish them by … [ entry into force of the solidarity mechanism ] ;


### the preventive action plans and emergency plans should be updated regularly and published . they should be subject to peer review . the peer review process allows for early identification of inconsistencies and measures that could endanger other member states ' security of supply , thereby ensuring that plans from different regions are consistent with one another . it also enables member states to share best practice . ### the preventive action plans and emergency plans should be updated on a regular basis and published . they should be subject to peer review which should be monitored by the commission . the peer review process is intended to allow for early identification of inconsistencies and measures that could endanger the security of gas supply of other member states , thereby ensuring consistency of the plans across different regions . it also enables member states to share best practice .


### the member states acting on their own cannot satisfactorily achieve the objective of this regulation , namely to guarantee a secure gas supply within the union . given the scale or effects of the action , it is better achieved at union level . the union may therefore adopt measures , in accordance with the principle of subsidiarity set out in article 5 of the treaty on european union . in accordance with the principle of proportionality set out in that article , this regulation does not go beyond what is necessary to achieve that objective . ### since the objective of this regulation , namely to guarantee a secure gas supply within the union , cannot be sufficiently achieved by member states acting on their own , but can rather , by reason of its scale and effects , be better achieved at union level , the union may adopt measures , in accordance with the principle of subsidiarity as set out in article 5 of the treaty on european union . in accordance with the principle of proportionality as set out in that article , this regulation does not go beyond what is necessary to achieve that objective .


### the competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this article . competent authorities shall report to the gas coordination group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment . the commission may have a facilitating role overall in the preparation of the risk assessment , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . ### the competent authorities shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this article . competent authorities shall report to the gas coordination group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment . the commission may have a facilitating role overall in the preparation of the risk assessment , in particular for the establishment of the cooperation mechanism . if competent authorities of connected member states do not agree on the content of the regional aspects of the risk assessment , the commission may propose a cooperation mechanism the member states concerned .


### where a member state has declared the emergency crisis level in accordance with article 10 any increased supply standard or additional obligation imposed on natural gas undertakings in other member states under article 5 shall be temporarily reduced to the level established in article 5 . ### where a member state has declared the emergency crisis level in accordance with article 10 , and when such member states has proved that all the measures described in its emergency plan have been used , and that all the technical and commercial terms defined in the solidarity agreement in the emergency plan have been met , any increased supply standard or additional obligation imposed on natural gas undertakings in other member states under article 5 , directly or indirectly interconnected , shall be temporarily reduced to the level established in article 5 .


### so far , the potential for more efficient and less costly measures through regional cooperation has not been fully exploited . this has to do not only with better coordination of national mitigation actions in emergency situations , but also of national preventive measures , such as national storage or policies related to liquefied natural gas , which can be strategically important in certain regions . ### so far , the potential of regional cooperation to introduce more efficient and less costly measures has not been fully exploited . this applies to better coordination of national mitigation actions in emergency situations as well as to national preventive measures , such as national storage or policies related to liquefied natural gas , which can be strategically important in certain regions .


### for the purpose of this regulation , the following criteria should therefore be taken into account when defining the regional groups : supply patterns , existing and planned interconnections and interconnection capacity between member states , market development and maturity , existing regional cooperation structures , and the number of member states in a region , which should be limited to ensure that the group remains of a manageable size . ### for the purpose of this regulation , the following criteria should therefore be taken into account when establishing the regional groups : supply patterns , existing and planned interconnections and interconnection capacity between member states , market development and maturity , existing regional cooperation structures , the level of diversification of gas routes sources of gas supply , and the number of member states in a region , which should be limited to ensure that the group remains of a manageable size .


### a preventive action plan containing the measures to be adopted to remove or mitigate the risks identified in the region , including risks of purely national dimension , in accordance with the risk assessment undertaken pursuant to article 6 and in accordance with article 8 ; and ### a preventive action plan containing the measures to be adopted to remove or mitigate the risks identified among the connected member states , including risks of regional dimension , in accordance with the risk assessment undertaken pursuant to article 6 and in accordance with article 8 ; and


### to assess the security of supply situation of a given member state or region or of the union , access to the relevant information is essential . in particular , member states and the commission need regular access to information from natural gas undertakings regarding the main parameters of the gas supply as a fundamental input in the design of the security of supply policies . under duly justified circumstances , irrespective of a declaration of emergency , access should also be possible to additional information needed to assess the overall gas supply situation . that additional information would typically be non - price - related gas delivery information , e . g . minimum and maximum gas volumes , delivery points or supply margins . it could , for example , be requested in the event of changes in the pattern of the gas supply to a given buyer or buyers in a member state which would not be expected if the markets were functioning normally and which could affect the gas supply of the union or parts of it . ### to assess the security of gas supply situation of a given member state , a region or the union , access to the relevant information is essential . in particular , member states and the commission need access to relevant and non - confidential information from natural gas undertakings regarding the main parameters of the gas supply as a fundamental input in the design of the security of gas supply policies . under duly justified circumstances , irrespective of a declaration of emergency , access should also be possible to additional information needed to assess the overall gas supply situation . that additional information would typically be non - price - related gas delivery information , e . g . minimum and maximum gas volumes , delivery points or supply margins .


### one of the union goals is to strengthen the energy community that would ensure effective implementation of the union energy acquis , energy market reforms and incentivising investments in the energy sector by closer integration of the union and energy community energy markets . this entails also introducing common crisis management by proposing preventive and emergency plans at the regional level including the energy community contracting parties . furthermore , the commission communication on the short term resilience of the european gas system from october 2014 refers to the need to apply internal energy market rules on the flow of energy between the union member states and the energy community contracting parties . in this regard , in order to ensure an efficient crisis management on borders between the union member states and the contracting parties , the necessary arrangements following the adoption of a joint act should be set so that specific cooperation with any individual energy community contracting party can take place once the required mutual provisions have been duly put into place . . ### one of the union goals is to strengthen the energy community in order to ensure effective implementation of the union energy acquis , energy market reforms and incentives to invest in the energy sector by closer integration of the union and energy community energy markets . this also entails introducing common crisis management by proposing preventive action plans and emergency plans at the regional level including the energy community contracting parties . furthermore , the commission communication of 16 october 2014 on the short term resilience of the european gas system refers to the need to apply internal energy market rules on the flow of energy between the union member states and energy community contracting parties . in this regard , in order to ensure efficient crisis management on borders between the union member states and the energy community contracting parties , necessary arrangements following the adoption of a joint act should be set so that specific cooperation with any individual energy community contracting party can take place once the required mutual provisions have been duly put into place .


### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans . ### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if national authorities of connected member states do not agree on the content of the regional aspects of the preventive action plan , the commission may propose a regional cooperation mechanism . they shall ensure the regular monitoring of the implementation of such plans .


### responsibility for security of gas supply should be shared by natural gas undertakings , member states , acting through their competent authorities ; and the commission , within their respective remits . such shared responsibility requires very close cooperation between these parties . however , customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply , as they can respond to a crisis by taking demand - side measures such as interruptible contracts and fuel switching , which have an immediate impact on the supply / demand balance . ### responsibility for security of gas supply should be shared by natural gas undertakings , member states , acting through their competent authorities ; and the commission , within their respective remits . such shared responsibility requires very close cooperation between those parties . however , customers using gas for electricity generation or industrial purposes may also have an important role to play in security of gas supply , as they can respond to a crisis by taking demand - side measures such as interruptible contracts and fuel switching , which have an immediate impact on the supply - demand balance . security of gas supply to such customers may also be considered to be essential in some cases . they could be granted a certain level of protection by ensuring that during an emergency they are among the last consumers to forego supply before protected customers . member states should be able to provide for this possibility when identifying the supply restrictions orders to be applied in the case of an emergency .


### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate its effects should it nevertheless occur , the competent authorities of a given region must draw up preventive action plans and emergency , after consulting stakeholders . regional plans should take account of the specific characteristics of each member state . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be so designed as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects . the plans should take the security of electricity systems into account and be consistent with the energy union ' s strategic planning and reporting tools . ### to ensure maximum preparedness , so as to avoid a supply disruption and mitigate the effects of such a disruption should it nevertheless occur , the competent authorities of a given region should draw up preventive action plans and emergency plans , after consulting the stakeholders . regional plans should take account of the specific characteristics of each member state . they should also clearly define the roles and responsibilities of the natural gas undertakings and the competent authorities . national measures to be designed should take fully account of the regional measures set out in the preventive action plan and emergency plan . they should be designed so as to address national risks in a way that takes full advantage of the opportunities provided by regional cooperation . the plans should be technical and operational in nature , their function being to help prevent the occurrence or escalation of an emergency and to mitigate its effects . the plans should take the security of electricity systems into account and be consistent with the energy union ' s strategic planning and reporting tools .


### a major disruption of the gas supply can affect all member states , the union as a whole and contracting parties to the treaty establishing the energy community , signed in athens on 25 october 2005 . it can also severely damage the union economy and can have a major social impact , particularly on vulnerable groups of customers . ### the high level of interdependence of member states and european third countries is also a feature of the field of energy . a major disruption of gas supply in one country can affect multiple other member states , the union or contracting parties to the treaty establishing the energy community . it can weaken overall security , severely damage the economy and have a major social impact , particularly on vulnerable groups of customers , especially in countries which are overly dependent on a single dominant supplier .


### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings , should be the guiding principle of this regulation , to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost - effective measures for union consumers . ### in a spirit of solidarity , regional cooperation which involves both public authorities and natural gas undertakings is the guiding principle of this regulation , with the aim of identifying the relevant risks in each region , optimising the benefits of coordinated measures to mitigate them , while ensuring that the measures are cost - effective for customers . regional cooperation should gradually be complemented with a stronger union perspective , allowing recourse to all available supplies and tools in the entire internal gas market . this could be facilitated by providing in - depth analysis at union level on the relevant emergency supply corridors , based on gas supply sources common for a group of member states .


### no later than 31 march 2017 member states shall notify the commission their definition of protected customers , the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that member state . where a member state includes in its definition of protected customers the categories referred to in point or of article 2 it shall specify in the notification to the commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas . ### no later than 31 march 2017 member states shall notify the commission the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that member state , as well as the extent to which the gas supply to its protected customers may influence cross - border flows to other member states .


### the risk assessment once agreed by all member states in the region shall be notified to the commission for the first time no later than on 1 september 2018 . the risk assessment shall be updated every four years unless circumstances warrant more frequent updates . the risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in article 4 and of country - specific difficulties encountered in the implementation of new alternative solutions . it shall also build on the experience acquired through the simulation of the emergency plans contained in article 9 . ### the risk assessment once agreed by all member states in the region shall be notified to the commission for the first time no later than on 1 september 2018 . the risk assessment shall be updated every four years unless circumstances warrant more frequent updates . the risk assessment shall take account of progress made in investments needed to cope with the infrastructure standard defined in article 4 and of country - specific difficulties encountered in the implementation of new alternative solutions . it shall also build on the experience acquired through the simulation of the emergency plans contained in article 9 . if the competent authorities within a region do not agree on the risk assessment , the commission shall present a risk assessment for that region in cooperation with the competent authorities .


### an internal gas market that operates smoothly is the best guarantee of security of energy supply across the union and to reduce the exposure of individual member states to the harmful effects of supply disruptions . where a member state ' s security of supply is threatened , there is a risk that measures developed unilaterally by that member state may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other member states . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination in the response to supply crises , as regards both preventive action and the reaction to actual disruptions of supply . ### a well - interconnected and well - functioning internal gas market , free of ' energy islands ' , is the best means by which to ensure security of gas supply across the union while reducing the exposure of individual member states to harmful effects of supply disruptions . where a member state ' s security of gas supply is threatened , there is a risk that measures developed unilaterally by that member state may damage gas supply to customers in other member states , negatively affecting the proper functioning of the internal gas market . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination at regional and union level as regards both preventive action and reaction to actual disruptions of supply .


### this regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the union , in particular to protected customers in the event of difficult climatic conditions or disruptions of the gas supply . these objectives should be achieved through the most cost - effective measures and in such a way that energy markets are not distorted . ### this regulation aims to ensure that all the necessary measures are taken to safeguard an uninterrupted supply of gas throughout the union , in particular to protected customers in the event of difficult climatic conditions or disruptions of gas supply . this should be achieved through cost - effective measures , in a way that energy markets are not distorted , in accordance with article 194 of the treaty on european union and with the goals of the energy union strategy relating to the security and diversification .


### to the competent authority and to the commission immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . ### to the competent authority immediately after their conclusion or modification the gas supply contracts with a duration of more than 1 year concluded or modified after [ op : please insert the date of entry in force of this regulation ] that individually or cumulatively with other contracts with the same supplier or its affiliates provide more than 40% of yearly natural gas consumption in the member state concerned . the notification obligation shall not apply to the modifications related only to the gas price . the notification obligation shall also apply to all commercial agreements relevant for the execution of the gas supply contract . the commission may request from the competent authorities the information provided by natural gas undertakings on an aggregate level .


### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings . ### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states are directly or indirectly interconnected , and which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency , provided that such member states can prove that all the measures described in its emergency plan have been used , and that all the technical and commercial terms defined in the solidarity agreement in the emergency plan have been met . member states should identify and describe the details of these solidarity measures in solidarity agreements in their emergency plans , ensuring an appropriate compensation of the natural gas undertakings and of the non - protected customers concerned by the solidarity measures , based on the market value of the costs generated by the interruption of supplies consequent to the implementation of article 12 .


### the competent authorities shall adopt the necessary measures , so that gas not supplied to customers other than households , essential social services and district heating installations in their territory in the situation described in paragraph 2 can be supplied to the member state in the emergency situation described in the same paragraph for the supply to households , essential social services and district heating installations in that member state . ### the competent authorities shall adopt the necessary measures , so that gas not supplied to customers other than protected customers in their territory in the situation described in paragraph 2 can be supplied to the member state in the emergency situation described in the same paragraph .


### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in each member state of the region , as laid down in articles 4 and 5 , including where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the necessary gas volumes per category of protected customers and per scenario as referred to in article 5 and any increased supply standard under article 5 , including a justification of the compliance with the conditions set in article 5 and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with article 12 ; ### the measures , volumes and capacities needed to fulfil the infrastructure and supply standards in each member state of the region , as laid down in articles 4 and 5 , including where applicable , the extent to which demand - side measures can sufficiently compensate , in a timely manner , for a supply disruption as referred to in article 4 , the identification of the single largest gas infrastructure of common interest in the case of application of article 4 , the identification of the single largest gas supplier , the necessary gas volumes per category of protected customers and per scenario as referred to in article 5 and any increased supply standard under article 5 , including reasons for the compliance with the conditions set in article 5 and a description of a mechanism to temporarily reduce any increased supply standard or additional obligation in accordance with article 12 ;


### no later than 31 march 2017 member states shall notify the commission their definition of protected customers , the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in that member state . where a member state includes in its definition of protected customers the categories referred to in point or of article 2 it shall specify in the notification to the commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas . ### no later than 31 march 2017 the competent authorities within each region shall notify the commission the definition of protected consumers in that region , the annual gas consumption volumes of the protected customers and the percentage they represent of the total annual final gas consumption in respective member states as well as how it could influence cross - border flows in the region . where a member state includes in its definition of protected customers the categories referred to in point or of article 2 it shall specify in the notification to the commission the gas consumption volumes corresponding to consumers belonging to those categories and the percentage that each of those groups of consumers represents in terms of the annual final use of gas .


### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region . ### in order to make regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed in sufficient time to allow for conducting the risk assessment and drawing up effective plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in the absence of an agreement on the cooperation mechanism , the commission will propose a suitable cooperation mechanism for a particular region .


### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . ### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements shall cover , among others , gas prices to be applied , use of interconnectors , including guaranteed bi - directional capacity , gas volumes and the coverage of compensation costs . acer may act as a facilitator in calculating the compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . the commission shall prepare guidelines for templates for the solidarity measures , including model clauses , and publish them by … [ entry into force of the solidarity mechanism ] ;


### by 1 november 2017 entso for gas shall carry out a union wide simulation of supply and infrastructure disruption scenarios . the scenarios shall be defined by entso for gas in consultation with the gas coordination group . the competent authorities shall provide entso for gas with the necessary data for the simulations such as peak demand values , production capacity and demand side measures . the competent authorities shall take into account the results of the simulations for the preparation of the risk assessments , preventive action plans and emergency plans . the union - wide simulation of supply and infrastructure disruption scenarios shall be updated every four years unless circumstances warrant more frequent updates . ### the competent authorities shall take into account the results of the union wide simulations carried out by entso for gas for the preparation of the risk assessments , preventive action plans and emergency plans .


### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . ### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and be organic part of the national emergency plans . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly .


### natural gas remains an essential component of the energy supply of the union . a large proportion of such gas is imported into the union from third countries . ### natural gas is an essential component of the energy supply of the union . this makes security of gas supply a key element of the union ' s overall energy security , with relevance to the union ' s competitiveness and growth . even though more than 50&#160 ; % of gas consumption in the union and the rest of the european economic area is currently covered by domestic production , a growing proportion of gas is imported from third countries . enhancing the union ' s energy security and making its gas market more resilient thus requires creating a stable , market - based regulatory framework for developing gas production from domestic sources , increasing energy efficiency as well as addressing dependence on dominant external suppliers .


### the competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this article . competent authorities shall report to the gas coordination group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment . the commission may have a facilitating role overall in the preparation of the risk assessment , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . ### in close collaboration with the gas coordination group , taking into account entso - g analysis , the commission shall identify major joint risks for the security of gas supply and shall also propose which members states shall work closely together to carry out a joint analysis of the possible impact of such risks on the security of gas supply in the relevant concerned member states . each group shall prepare a document containing : - relevant data for the assessment of the analysed risk , including alternative ways of gas supply - analysis of the impacts and propagation of the supply disruption along supply corridor .


### the competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this article . competent authorities shall report to the gas coordination group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment . the commission may have a facilitating role overall in the preparation of the risk assessment , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . ### the competent authorities within each region shall agree on a cooperation mechanism to conduct the risk assessment within the deadline provided for in paragraph 5 of this article . competent authorities shall report to the gas coordination group on the agreed cooperation mechanism for conducting the risk assessment 18 months before the deadline for the adoption of the risk assessment and the updates of the risk assessment . the commission shall have a facilitating role overall in the preparation of the risk assessment , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission shall propose a cooperation mechanism for that region .


### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , commercial , financial , social , political and market - related risks , and any other relevant ones , including , where appropriate , the disruption of the supplies from the single largest supplier . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in the preventive action plan and the emergency plan . the results of the risk assessments should also contribute to the all hazard risk assessments foreseen under article 6 of decision no 1313 / 2013 / eu18 . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism . ### when conducting a comprehensive risk assessment to be prepared at regional level , competent authorities should assess natural , technological , infrastructural , commercial , financial , social , political , market - related , and any other relevant risks , including , where appropriate , disruption of supplies from dominant suppliers . all risks should be addressed by effective , proportionate and non - discriminatory measures to be developed in preventive action plan and emergency plan . the results of the risk assessments should also contribute to the all risk assessments provided for in article 6 of decision no 1313 / 2013 / eu of the european parliament and of the council18 . __________________ 18 decision no 1313 / 2013 / eu of the european parliament and of the council of 17 december 2013 on a union civil protection mechanism .


### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission may have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission may propose a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans . ### competent authorities shall regularly report to the gas coordination group on the progress achieved on the preparation and adoption of the preventive action plans and the emergency plans . in particular competent authorities shall report to the gas coordination group on the agreed cooperation mechanism 18 months before the deadline for the adoption of the plans and the updates of the plans . the commission shall have a facilitating role overall in the preparation of the plans , in particular for the establishment of the cooperation mechanism . if competent authorities within a region do not agree on a cooperation mechanism , the commission shall develop a cooperation mechanism for that region . they shall ensure the regular monitoring of the implementation of such plans .


### the commission shall , where appropriate , coordinate the action of the competent authorities at regional and union levels , as set out in this regulation , inter alia , through the gas coordination group referred to in article 14 or the crisis management group referred to in article 11 , in particular in the event of a regional or union emergency as defined in article 11 . ### the commission shall coordinate the action of the competent authorities at regional and union levels , as set out in this regulation , inter alia , through the gas coordination group referred to in article 14 or the crisis management group referred to in article 11 , in particular in the event of a regional or union emergency pursuant to article 11 .


### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . ### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed at the regional and inter - regional levels and described in the emergency plans . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the shared responsibility for compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . those gas prices and compensation costs and mechanisms shall be reviewed regularly . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . by 31 march 2019 , the commission shall prepare guidelines and a list of best practices aimed at facilitating those arrangements .