### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . ### each group shall draw up its list of projects of common interest according to the process set out in section 2 of annex iii , indicating the contribution of each project to the implementation of the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . the group decides by consensus .


### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . the groups may request additional information provided in accordance with paragraphs 3 , 4 and 5 , verify the provided information on site and convene meetings with the relevant parties . the groups may also request the agency to take measures to facilitate the implementation of projects of common interest . ### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . to that end , national regulatory authorities and project promoters shall report back to each regional group meeting on progress achieved . the groups may request additional information in accordance with paragraphs 3 , 4 and 5 , verify the information on site and convene meetings with the relevant parties . the groups may also request the agency or the relevant national regulatory authorities to issue guidelines , and instruct project promoters to take measures to accelerate the implementation of projects of common interest in accordance with the implementation plan .


### projects of common interest in the fields of electricity , gas and carbon dioxide should be eligible to receive union financial assistance for studies and , under certain conditions , for works under the proposed regulation for a connecting europe facility , either in the form of grants or in the form of innovative financial instruments . this will ensure tailor - made support can be provided to those projects of common interest which are not viable under the existing regulatory framework and market conditions . such financial assistance should ensure the necessary synergies with funding from instruments under other union policies . in particular , the connecting europe facility will finance energy infrastructure of european relevance , while structural funds will finance smart energy distribution networks of local or regional importance . the two sources of funding will thereby complement each other . ### projects of common interest in the fields of electricity and gas should be eligible to receive union financial assistance for studies and , under certain conditions , for works under the proposed regulation for a connecting europe facility , either in the form of grants or in the form of innovative financial instruments . this will ensure tailor - made support can be provided to those projects of common interest which are not viable under the existing regulatory framework and market conditions . such financial assistance should ensure the necessary synergies with funding from instruments under other union policies . in particular , the connecting europe facility will finance energy infrastructure of european relevance , while structural funds will finance smart energy distribution networks of local or regional importance . the two sources of funding will thereby complement each other .


### projects of common interest falling under the categories set out in points 1 to and 2 of annex ii , except for hydro - pumped electricity storage projects , shall be also eligible for union financial support in the form of grants for works in accordance with the provisions of [ regulation of the european parliament and the council establishing the connecting europe facility ] , if they are carried out according to the procedure referred to in paragraph 6 of article 5 or if they fulfil the following criteria : ### projects of common interest falling under the categories set out in points 1 to , 2 and 3 of annex ii , except for hydro - pumped electricity storage projects , shall be also eligible for union financial support in the form of grants for works in accordance with the provisions of [ regulation of the european parliament and the council establishing the connecting europe facility ] , if they are carried out according to the procedure referred to in paragraph 6 point of article 5 or if they fulfil the following criteria :


### the european energy programme for recovery has demonstrated the added value of leveraging private funding through significant union financial aid to allow implementation of projects of european significance . the european council of 4 february 2011 recognised that some energy infrastructure projects may require limited public finance to leverage private funding . in the light of the economic and financial crisis and budgetary constraints , targeted support , through grants and financial instruments , should be developed under the next multi - annual financial framework , which will attract new investors into the energy infrastructure priority corridors and areas , while keeping the budgetary contribution of the union to a minimum . ### the european energy programme for recovery has demonstrated the added value of leveraging private funding through significant union financial aid to allow implementation of projects of european significance . the european council of 4 february 2011 recognised that some energy infrastructure projects may require limited public finance to leverage private funding . in the light of the economic and financial crisis and budgetary constraints , targeted support , through grants and financial instruments , should be developed under the next multi - annual financial framework , which will attract new investors into the energy infrastructure priority corridors and areas , while keeping the budgetary contribution of the union to a minimum . the relevant measures should draw on the experience gained during the pilot phase following the introduction of project bonds to finance infrastructure projects .


### the commission may issue guidelines regarding the incentives laid down in this article in accordance with article 18 to of regulation no 714 / 2009 and article 23 of regulation no 715 / 2009 . ### the commission shall issue guidelines regarding the incentives laid down in this article in accordance with article 18 to of regulation no 714 / 2009 and article 23 of regulation no 715 / 2009 . in that connection , particular account shall be taken of the rules governing additional return on capital laid down in paragraph 3 of this article .


### the project displays economic , social and environmental viability ; and ### the potential benefits of the project assessed according to the respective specific criteria in paragraph 2 outweigh its costs ; and


### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . ### each group shall adopt its regional list of projects of common interest , drawn up in accordance with the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates .


### where a project promoter incurs higher risks for the development , construction , operation or maintenance of a project of common interest falling under the categories set out in points 1 and 2 of annex ii , except for hydro - pumped electricity storage projects , compared to the risks normally incurred by a comparable infrastructure project , and where such risks are not covered under an exemption pursuant to article 36 of directive 2009 / 73 / ec or article 17 of regulation no 714 / 2009 , national regulatory authorities shall ensure that appropriate incentives are granted to that project when applying article 37 of directive 2009 / 72 / ec , article 41 of directive 2009 / 73 / ec , article 14 of regulation no 714 / 2009 , and article 13 of regulation no 715 / 2009 . ### where a project promoter incurs higher risks for the development , construction , operation or maintenance of a project of common interest falling under the categories set out in points 1 and 2 of annex ii , except for hydro - pumped electricity storage projects , gas storage facilities and lng plants , compared to the risks normally incurred by a comparable infrastructure project , and where such risks are not covered under an exemption pursuant to article 36 of directive 2009 / 73 / ec or article 17 of regulation no 714 / 2009 , national regulatory authorities shall ensure that appropriate incentives are granted to that project when applying article 37 of directive 2009 / 72 / ec , article 41 of directive 2009 / 73 / ec , article 14 of regulation no 714 / 2009 , and article 13 of regulation no 715 / 2009 . in connection with the payment of network charges , hydro - pumped electricity storage projects , gas storage facilities and lng plants shall not be treated as end consumers , in order not to jeopardise their competitiveness .


### – interoperability and secure system operation ; ### – security of supply , inter alia through interoperability , and secure and reliable system operation , in particular through strengthening of current transmission stability , increasing electricity blackout resilience , and secure integration of intermittent production ;


### – market integration , interoperability and system flexibility ; ### – market integration , interoperability , system flexibility and liquidity of the market ;


### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . ### each group shall draw up its regional proposed list of projects of common interest , taking into account : – the process set out in section 2 of annex iii ; and – the contribution of each project to implementing the objectives of the energy infrastructure priority corridors and areas as set out in annex i ; and – the fulfilment by each project of the criteria set out in article 4 and ; and – an assessment of the project ' s contribution towards each of the specific criteria defined under article 4 . 2 to , as applicable for each project category , and in accordance with article . 4 ) ; and – the contribution to the objectives of territorial cohesion .


### – market integration , competition and system flexibility ; ### – market integration , competition and system flexibility ; with an emphasis on increasing cross - border interconnection , preventing transmission bottlenecks and interconnecting isolated member states ;


### the methodology shall be applied to the cost - benefit analysis under all subsequent ten - year network development plans for electricity or gas developed by the entsos for electricity or gas pursuant article 8 of regulation 714 / 2009 and regulation 715 / 2009 . ### the methodology shall be applied to the cost - benefit analysis under all subsequent ten - year network development plans for electricity or gas developed by the entsos for electricity or gas pursuant article 8 of regulation 714 / 2009 and regulation 715 / 2009 , and the main results of the cost - benefit analysis in relevant scenarios must be included in the consultation process and final reporting of the ten - year network development plans .


### within one month of the entry into force of this regulation , the entso for electricity and the entso for gas shall submit to the agency and the commission their respective methodology , including on network and market modelling , for a harmonised energy system - wide cost - benefit analysis at union - wide level for projects of common interest falling under the categories set out in points 1 to and 2 of annex ii . the methodology shall be elaborated in line with the principles laid down in annex v . ### within one month of the entry into force of this regulation , the entso for electricity and the entso for gas shall submit to the agency and the commission their respective methodology , as well as standard costs for different categories of projects , including on network and market modelling , for a harmonised energy system - wide cost - benefit analysis at union - wide level for projects of common interest falling under the categories set out in points 1 to and 2 of annex ii , except for hydro - pumped electricity storage projects . the methodology shall be elaborated in line with the principles laid down in annex v .


### projects of common interest should be given ' priority status ' at national level to ensure rapid administrative treatment . projects of common interest shall be considered by competent authorities as being in public interest . authorisation should be given to projects which have an adverse impact on the environment , for reasons of overriding public interest , when all the conditions provided for under directives 92 / 43 / ec and 2000 / 60 / ec are met . ### projects of common interest should be given ' priority status ' at national level to ensure rapid administrative treatment . regional or national projects may also be given priority status if this serves to guarantee the integration of renewable energy sources and safeguard competition . this also includes projects involving third countries . projects of common interest shall be considered by competent authorities as being in public interest . authorisation should be given to projects which have an adverse impact on the environment , for reasons of overriding public interest , when all the conditions provided for under directives 92 / 43 / ec and 2000 / 60 / ec are met .


### projects of common interest should be given ‘ priority status’ at national level to ensure rapid administrative treatment . projects of common interest shall be considered by competent authorities as being in public interest . authorisation should be given to projects which have an adverse impact on the environment , for reasons of overriding public interest , when all the conditions provided for under directives 92 / 43 / ec and 2000 / 60 / ec are met . ### projects of common interest should be given ‘ priority status’ at national level to ensure rapid administrative treatment . projects of common interest shall be considered by competent authorities as being in public interest . authorisation should be given to projects which have an adverse impact on the environment , for reasons of overriding public interest , when all the conditions provided for under directives 92 / 43 / ec and 2000 / 60 / ec are met . moreover , member states are encouraged to apply the provisions of the administrative treatment for projects of common interest and to projects of national interest .


### the project is commercially not viable according to the business plan and other assessments carried out , notably by possible investors or creditors . the decision on incentives and its justification referred to in paragraph 3 of shall be taken into account when assessing the project ' s commercial viability ; and ### the project is commercially not viable according to the business plan and other assessments carried out , notably by possible investors or creditors . the decision on incentives and its justification referred to in paragraph 3 of shall be taken into account when assessing the project ' s commercial viability ; in any case , union financial assistance for construction works shall only support projects of common interest providing economic , environmental and social benefits which cannot be achieved by any competing commercial projects ; and


### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . the groups may request additional information provided in accordance with paragraphs 3 , 4 and 5 , verify the provided information on site and convene meetings with the relevant parties . the groups may also request the agency to take measures to facilitate the implementation of projects of common interest . ### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . to that end , national regulatory authorities and project promoters shall report back to each regional group meeting on progress achieved . the groups may request additional information in accordance with paragraphs 3 , 4 and 5 , verify the information on site and convene meetings with the relevant parties . the groups may also request the agency or the relevant national regulatory authorities to issue guidelines or other measures that facilitates the implementation of projects of common interest in accordance with the implementation plans .


### within one month of the entry into force of this regulation , the entso for electricity and the entso for gas shall submit to the agency and the commission their respective methodology , including on network and market modelling , for a harmonised energy system - wide cost - benefit analysis at union - wide level for projects of common interest falling under the categories set out in points 1 to and 2 of annex ii . the methodology shall be elaborated in line with the principles laid down in annex v . ### within three months of the entry into force of this regulation , the entso for electricity and the entso for gas shall submit to the agency and the commission their respective methodology , including on network and market modelling , for a harmonised energy system - wide cost - benefit analysis at union - wide level for projects of common interest falling under the categories set out in points 1 to and 2 of annex ii . the methodology shall be elaborated in line with the principles and criteria laid down in article 4 , annex iv and annex v . the entso for electricity and the entso for gas shall consult with relevant stakeholders , including infrastructure users and non - tso project developers , early during the development of the methodology .


### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . the groups may request additional information provided in accordance with paragraphs 3 , 4 and 5 , verify the provided information on site and convene meetings with the relevant parties . the groups may also request the agency to take measures to facilitate the implementation of projects of common interest . ### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . to that end , national regulatory authorities and project promoters shall report back to each regional group meeting on progress achieved . the groups may request additional information in accordance with paragraphs 3 , 4 and 5 , verify the information on site and convene meetings with the relevant parties . the groups may also request the agency or the relevant national regulatory authorities to issue guidelines , and instruct project promoters to take measures to accelerate the implementation of projects of common interest in accordance with the implementation plan .


### the methodology shall be applied to the cost - benefit analysis under all subsequent ten - year network development plans for electricity or gas developed by the entsos for electricity or gas pursuant article 8 of regulation 714 / 2009 and regulation 715 / 2009 . ### the methodology shall be applied to the cost - benefit analysis under the selection procedure of projects of common interests pursuant to article 3 , under the cross - border allocation of corresponding costs of projects of common interests pursuant to article 13 and under all subsequent ten - year network development plans for electricity or gas developed by the entsos for electricity or gas pursuant to article 8 of regulation 714 / 2009 and regulation 715 / 2009 .


### north - south electricity interconnections in central eastern and south eastern europe : interconnections and internal lines in north - south and east - west directions to complete the internal market and integrate generation from renewable energy sources ; ### north - south electricity interconnections in western europe : interconnections between the member states in the region and with mediterranean third countries and electricity storage capacities , in particular to integrate and promote electricity generated from renewable energy sources ;


### the investment needs up to 2020 in electricity and gas transmission infrastructures of european relevance have been estimated at about eur 200 billion . the significant increase in investment volumes compared to past trends and the urgency to implement the energy infrastructure priorities requires a new approach in the way energy infrastructures , and notably those of cross - border nature , are regulated and financed . ### the investment needs up to 2020 in electricity and gas transmission infrastructures of european relevance have been estimated at about eur 200 billion . the significant increase in investment volumes compared to past trends , as a result of the faster and more comprehensive development of renewable energy sources and the efforts to achieve , by 2020 , the union objectives of reducing greenhouse gas emissions by 20 % , improving energy efficiency by 20 % and increasing the share of energy consumption accounted for by renewable energy sources by 20 % , and the urgency to implement the energy infrastructure priorities requires a new approach in the way energy infrastructures , and notably those of cross - border nature , are regulated and financed


### the investment costs related to a project of common interest falling under the categories set out in points 1 to and 2 of annex ii shall be borne by the transmission system operator of the member state to which the project provides a net positive impact , and be paid for by network users through tariffs for network access . ### the costs set out in point of annex v relating to projects of common interest falling under the categories set out in points 1 to and 2 of annex ii , except for hydro - pumped electricity storage projects , shall be borne by the transmission system operator of the member state to which the project provides a net positive impact , and be paid for by network users through tariffs for network access .


### projects of common interest falling under the categories set out in points 1 to and 2 of annex ii , except for hydro - pumped electricity storage projects , shall be also eligible for union financial support in the form of grants for works in accordance with the provisions of [ regulation of the european parliament and the council establishing the connecting europe facility ] , if they are carried out according to the procedure referred to in paragraph 6 of or if they fulfil the following criteria : ### projects of common interest falling under the categories set out in points 1 to and 2 of annex ii shall be also eligible for union financial support in the form of grants for works in accordance with the provisions of [ regulation of the european parliament and the council establishing the connecting europe facility ] , if they are carried out according to the procedure referred to in paragraph 6 of article 5 or if they fulfil the following criteria :


### the investment costs related to a project of common interest falling under the categories set out in points 1 to and 2 of annex ii shall be borne by the transmission system operator of the member state to which the project provides a net positive impact , and be paid for by network users through tariffs for network access . ### the investment costs related to a project of common interest falling under the categories set out in points 1 , and and 2 of annex ii shall be borne by the transmission system operator or the project promoter of the transmission infrastructure of the member state to which the project provides a net positive impact , and , to the extent not covered by congestion rents or other charges , be paid for by network users through tariffs for network access in this or these member states . for projects of common interest falling under the categories set out in point 2 of annex ii , the previous sentence only applies if at least one project promoter requests the relevant national authorities to apply this article for all or parts of the costs of the project and insofar as an assessment of market demand has shown that costs cannot be expected to be covered by the tariffs paid by the infrastructure users . where the project has several promoters , the relevant national regulatory authorities shall without delay request all promoters to submit the investment request jointly according to paragraph 4 . the provisions of this article shall not apply to projects of common interest having received an exemption pursuant article 36 of directive 2009 / 73 / ec or article 17 of regulation 714 / 2009 .


### in deciding to allocate costs across borders , the economic , social and environmental costs and benefits of the project in the member states concerned and the possible need for financial support shall be taken into account . ### in deciding to allocate costs across borders , the economic costs and benefits of the project in the member states concerned and the possible need for financial support shall be taken into account .


### the european energy programme for recovery has demonstrated the added value of leveraging private funding through significant union financial aid to allow implementation of projects of european significance . the european council of 4 february 2011 recognised that some energy infrastructure projects may require limited public finance to leverage private funding . in the light of the economic and financial crisis and budgetary constraints , targeted support , through grants and financial instruments , should be developed under the next multi - annual financial framework , which will attract new investors into the energy infrastructure priority corridors and areas , while keeping the budgetary contribution of the union to a minimum . ### the european energy programme for recovery has demonstrated the added value of leveraging private funding through significant union financial aid to allow implementation of projects of european significance . the european council of 4 february 2011 recognised that some energy infrastructure projects may require limited public finance to leverage private funding . in the light of the economic and financial crisis and budgetary constraints , targeted support , through grants and financial instruments together with a stable and predictable regulatory framework , should be developed under the next multi - annual financial framework , which will attract new investors into the energy infrastructure priority corridors and areas , while keeping the budgetary contribution of the union to a minimum


### – market integration , competition and system flexibility ; ### – market integration , competition , system flexibility and liquidity of the market ;


### within one month of the entry into force of this regulation , the entso for electricity and the entso for gas shall submit to the agency and the commission their respective methodology , including on network and market modelling , for a harmonised energy system - wide cost - benefit analysis at union - wide level for projects of common interest falling under the categories set out in points 1 to and 2 of annex ii . the methodology shall be elaborated in line with the principles laid down in annex v . ### within twelve months of the entry into force of this regulation , the entso for electricity and the entso for gas , after formally consulting the organisations representing all relevant stakeholders , shall submit to the agency and the commission their respective methodologies , for a harmonised energy system - wide cost - benefit analysis at union - wide level to be applied by entsos through their union - wide ten year network development plans as well as for project - specific analysis to be applied by project promoters for their projects of common interest falling under the categories set out in points 1 to and 2 of annex ii . the methodology shall be elaborated in line with the principles laid down in annex v and be consistent with the rules and indicators set out in annex iv .


### the promoter of a project of common interest falling under the categories set out in points 1 to and 2 of annex ii shall keep all concerned national regulatory authorities regularly informed of the progress of that project and the identification of costs and impacts associated with it . as soon as a project of common interest selected pursuant to and falling under the categories set out in points 1 to and 2 of annex ii has reached sufficient maturity , the project promoter shall submit an investment request including a cross - border cost allocation , to the relevant national regulatory authorities , accompanied by the following : ### where the first sentence of point is applied , the promoter of a project of common interest falling under the categories set out in points 1 , and and 2 of annex ii shall keep all concerned national regulatory authorities regularly informed of the progress of that project and the identification of costs and impacts associated with it . as soon as such projects have reached sufficient maturity , the project promoter shall submit an investment request including a request for a cross - border cost allocation decision , to the relevant national regulatory authorities , accompanied by the following :


### the commission may issue guidelines regarding the incentives laid down in this article in accordance with article 18 to of regulation no 714 / 2009 and article 23 of regulation no 715 / 2009 . ### the commission shall issue guidelines regarding the incentives laid down in this article in accordance with article 18 to of regulation no 714 / 2009 and article 23 of regulation no 715 / 2009 . in that connection , particular account shall be taken of the rules governing additional return on capital laid down in paragraph 3 of this article .


### with the objective of meeting the time limits set out in article 11 and reducing the administrative burden for the completion of projects of common interest , member states shall , within nine months from the entry into force of this regulation , take measures to streamline the environmental assessment procedures . these measures shall be without prejudice to obligations resulting from union legislation . ### with the objective of meeting the time limits set out in article 11 and reducing the administrative burden for the completion of projects of common interest , member states shall , within nine months from the entry into force of this regulation , take binding measures to streamline the environmental assessment procedures . these measures shall be without prejudice to obligations resulting from union legislation .


### within one month of the entry into force of this regulation , the entso for electricity and the entso for gas shall submit to the agency and the commission their respective methodology , including on network and market modelling , for a harmonised energy system - wide cost - benefit analysis at union - wide level for projects of common interest falling under the categories set out in points 1 to and 2 of annex ii . the methodology shall be elaborated in line with the principles laid down in annex v . ### within four months of the entry into force of this regulation , the entso for electricity and the entso for gas shall submit to the agency and the commission their respective methodology , including on network and market modelling , for a harmonised energy system - wide cost - benefit analysis at union - wide level for projects of common interest falling under the categories set out in points 1 to and 2 of annex ii . the methodology shall be elaborated in line with the principles laid down in annex v in particular in consultation with the users group as referred to in annex v .


### – interoperability and secure system operation ; ### – security of supply , among others , through interoperability , and secure and reliable system operation ;


### the commission shall , within three months of the entry into force of this regulation , issue guidance to support member states in defining adequate measures and to ensure the coherent application of environmental assessment procedures required under eu legislation for projects of common interest . ### the commission shall , within three months of the entry into force of this regulation , issue guidance to support member states in defining adequate binding measures and to ensure the coherent application of environmental assessment procedures required under eu legislation for projects of common interest .


### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . ### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i , according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of only the member state , to the territory of which the project relates . in case a specific proposal for a cross - border project fulfils the relevant criteria , as set out in this regulation , but is supported by only one of the involved member states , the decision shall be deferred to the commission , which should act in consultation with the agency . before taking such a decision , the agency shall consult involved members states and stakeholders .


### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . the groups may request additional information provided in accordance with paragraphs 3 , 4 and 5 , verify the provided information on site and convene meetings with the relevant parties . the groups may also request the agency to take measures to facilitate the implementation of projects of common interest . ### the agency and the groups shall monitor the progress achieved in implementing the projects of common interest . to that end , national regulatory authorities and project promoters shall report back to each regional group meeting on progress achieved . the groups may request additional information in accordance with paragraphs 3 , 4 and 5 , verify the information on site and convene meetings with the relevant parties . the groups may also request the agency or the relevant national regulatory authorities to issue guidelines , and instruct project promoters to take measures to accelerate the implementation of projects of common interest in accordance with the implementation plan .


### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . ### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the provisional approval of the member state , to the territory of which the project relates before its inclusion in the final proposed list submitted under paragraph 4 .


### each group shall draw up its proposed list of projects of common interest according to the process set out in section 2 of annex iii , according to the contribution of each project to implementing the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . ### each group shall draw up its list of projects of common interest according to the process set out in section 2 of annex iii , indicating to the contribution of each project to the implementation of the energy infrastructure priority corridors and areas set out in annex i and according to their fulfilment of the criteria set out in article 4 . each individual proposal for a project shall require the approval of the member state , to the territory of which the project relates . the group decides by consensus .


### the security accreditation board shall be composed of one representative per member state , a commission representative and an hr representative . the term of office of the members of the security accreditation board shall be four years and shall be renewable . a representative of esa shall be invited to attend the meetings of the security accreditation board as an observer . where appropriate , the participation of representatives of third countries and the conditions thereof shall be established in the arrangements referred to in article 23 . ### the security accreditation board shall be composed of one representative per member state , a commission representative and an hr representative . members of the security accreditation board shall not be members of the administration board . the term of office of the members of the security accreditation board shall be four years and shall be renewable . a representative of esa shall be invited to attend the meetings of the security accreditation board as an observer . where appropriate , the participation of representatives of third countries and the conditions thereof shall be established in the arrangements referred to in article 23 .


### where appropriate , market surveillance authorities shall alert users in their territories within an adequate timeframe of products that those authorities have identified as presenting a risk . ### market surveillance authorities shall without delay alert users in their territories of products that those authorities have identified as presenting a risk . where available , this information shall also include data on manufacturer , retail channel , pricing , and period of sales .


### where , in the course of carrying out the checks referred to in article 6 or as a result of information received , market surveillance authorities have sufficient reason to believe that a product that is placed or made available on the market or is used in the course of the provision of a service may present a risk , they shall carry out a risk assessment in relation to that product taking account of the considerations and criteria set out in article 13 . ### where , in the course of carrying out the checks referred to in article 6 or as a result of information received , market surveillance authorities have sufficient reason to believe that a product that is placed or made available on the market or is used in the course of the provision of a service may present a risk and may be non - compliant with the applicable union legislation , they shall carry out a risk assessment in relation to that product taking account of the considerations and criteria set out in article 13


### market surveillance authorities may charge fees which wholly or partly cover the costs of their activities , including testing carried out for the risk assessment , where they take measures in accordance with paragraph 1 . ### market surveillance authorities shall request subcontractors to directly charge the cost of their services to the economic operator concerned unless the market surveillance authority considers this measure to be disproportionate , where they take measures in accordance with paragraph 1 . market surveillance authorities may charge fees which wholly or partly cover the costs of their activities , including testing carried out for the risk assessment , and work performed .


### any requirements laid down in or pursuant to union harmonisation legislation that apply to the product and relate to the potential risk under consideration , taking full account of test reports or certificates attesting conformity and issued by a conformity assessment body ; ### any requirements laid down in or pursuant to union harmonisation legislation that apply to the product and relate to the potential risk under consideration , taking full account of test , inspection and calibration reports or certificates attesting conformity and issued by a conformity assessment body accredited in accordance with regulation no 765 / 2008 ;


### market surveillance shall be organised and carried out in accordance with this regulation with a view to ensuring that products presenting a risk are not made available on the union market and , where such products have been made available , effective measures are taken to remove the risk presented by the product . ### market surveillance shall be organised and carried out in accordance with this regulation with a view to ensuring that products presenting a risk , and products that are not compliant with the applicable union legislation are not made available on the union market and , where such products have been made available , effective measures are taken to remove the risk presented by the product and to put an end to its non - compliance


### where appropriate , market surveillance authorities shall alert users in their territories within an adequate timeframe of products that those authorities have identified as presenting a risk . ### market surveillance authorities shall without delay alert users in their territories of products that those authorities have identified as presenting a risk .


### the emsf may establish standing or temporary sub - groups which shall include the administrative cooperation groups for market surveillance set up for the implementation of union harmonisation legislation . organisations representing the interests of industry , small and medium - sized enterprises , consumers , laboratories and conformity assessment bodies at union level may be invited to participate in such sub - groups as observers . ### the emsf may establish standing or temporary sub - groups which shall include the administrative cooperation groups for market surveillance set up for the implementation of union harmonisation legislation . organisations representing the interests of industry , small and medium - sized enterprises , consumers , laboratories and conformity assessment bodies at union level shall be invited to participate in such sub - groups as observers on a regular and continuous basis .


### market surveillance authorities shall perform appropriate checks on the characteristics of products on an adequate scale and with adequate frequency , by means of a documentary check and , where necessary , a physical and laboratory check on the basis of an adequate sample . they shall record these checks in the information and communication system for market surveillance referred to in article 21 . ### market surveillance authorities shall perform appropriate checks on the characteristics of products , irrespective of the distribution channels and selling techniques , on an adequate scale and with adequate frequency , by means of a documentary check and , where necessary , a physical and laboratory check on the basis of an adequate sample . they shall record these checks in the information and communication system for market surveillance referred to in article 21 .


### market surveillance authorities may destroy or otherwise render inoperable a product presenting a risk where they deem it necessary and proportionate . they may require the relevant economic operator to bear the cost of such action . ### market surveillance authorities may destroy or otherwise render inoperable a product presenting a risk where they deem it necessary and proportionate . the cost of such action shall be wholly or partly borne by the relevant economic operator .


### market surveillance authorities may charge fees which wholly or partly cover the costs of their activities , including testing carried out for the risk assessment , where they take measures in accordance with paragraph 1 . ### market surveillance authorities shall charge fees on the person declaring the product for free circulation which wholly or partly cover the costs of their activities , including testing carried out for the risk assessment , where they take measures in accordance with paragraph 1 . the fees shall be calculated on the basis of the actual costs of each market surveillance activity , and applied to the person declaring the product for free circulation subject to such market surveillance activities . such fee shall not exceed the actual costs of the market surveillance activity performed and may partly or entirely reflect the time taken by the staff of the market surveillance authorities to perform the market surveillance controls .


### the penalties referred to in the first subparagraph shall have regard to the size of the undertakings and in particular to the situation of small and medium - sized enterprises . the penalties may be increased if the relevant economic operator has previously committed a similar infringement and may include criminal sanctions for serious infringements . ### the penalties referred to in the second subparagraph shall have regard to the gravity and to the duration of the infringement as well as to the size of the undertakings and in particular to the situation of small and medium - sized enterprises . in addition , the penalties shall have regard to whether the relevant economic operator has previously committed a similar infringement . the penalties may include criminal sanctions for serious infringements .


### on request , economic operators and , where applicable , conformity assessment bodies , shall make available to market surveillance authorities any documentation and information that those authorities require for the purpose of carrying out their activities , in a language which can be easily understood by them . ### further to a reasoned request , economic operators shall , according to their respective role in the supply chain and , where applicable , including conformity assessment bodies , make available to market surveillance authorities any documentation and information that those authorities require for the purpose of carrying out their activities .


### corrective action to be taken by economic operators in relation to a product presenting a risk may include : ### corrective action to be taken in relation to a product presenting a risk may include :


### given the size of the union market for goods and as there are no internal borders , it is imperative that the market surveillance authorities of the member states are willing and able to cooperate with each other effectively and to coordinate joint support and action . accordingly , mechanisms for mutual assistance should be established . ### given the size of the union market for goods and as there are no internal borders , it is imperative that this regulation builds the framework for market surveillance authorities of the member states to cooperate with each other effectively and to coordinate joint support and action . accordingly , mechanisms for mutual assistance should be established , enforced , verified and duly financed .


### ' product ' means a product obtained through a manufacturing process ; ### ' product ' means a substance , preparation or good produced through a manufacturing process other than food , feed , products of human origin and products of plants and animals relating directly to their future reproduction ;


### obliging the authorities responsible for the control of products entering the union market to carry out checks on an adequate scale therefore contributes to a safer union market for products . in order to increase the effectiveness of such checks , cooperation and exchange of information between those authorities and market surveillance authorities concerning products presenting a risk should be enhanced . ### obliging the authorities responsible for the control of products entering the union market to carry out checks on an adequate scale therefore contributes to a safer union market for products . in order to increase the effectiveness of such checks , those authorities and market surveillance authorities should be obliged to cooperate and exchange information concerning products presenting a risk and products that are non - compliant .


### ‘ market surveillance authority’ means an authority of a member state responsible for carrying out market surveillance on its territory ; ### ‘ market surveillance authority’ means an authority of a member state competent for exercising the regulated powers under by this regulation ;


### in order to ensure uniform conditions for the implementation of this regulation , implementing powers should be conferred on the commission as regards uniform conditions for the carrying out of checks by reference to particular product categories or sectors , including the scale of checks to be carried out and the adequacy of samples to be checked . implementing powers should also be conferred as regards the modalities for the provision of information to market surveillance authorities by economic operators , as regards establishing uniform conditions for determining cases in which such information need not be provided . implementing powers should also be conferred as regards the modalities and procedures for the exchange of information through rapex and as regards the adoption of temporary or permanent marketing restrictions on products presenting a serious risk , where appropriate , specifying the necessary control measures to be taken by the member states for their effective implementation where other union legislation does not provide a specific procedure to address the risks in question . those powers should be exercised in accordance with regulation no 182 / 2011 of the european parliament and of the council laying down the rules and general principles concerning mechanisms for control by the member states of the commission’s exercise of its implementing powers . ### in order to ensure uniform conditions for the implementation of this regulation , implementing powers should be conferred on the commission as regards uniform conditions for the carrying - out of checks by reference to particular product categories or sectors , including the scale of checks to be carried out and the adequacy of samples to be checked . implementing powers should also be conferred as regards the modalities for the provision of information to market surveillance authorities by economic operators , as regards establishing uniform conditions for determining cases in which such information need not be provided . economic operators should not , in any event , be called upon to supply information other than that which they are required to know by virtue of their role within the supply chain . implementing powers should also be conferred as regards the modalities and procedures for the exchange of information through rapex and as regards the adoption of temporary or permanent marketing restrictions on products presenting a serious risk , where appropriate , specifying the necessary control measures to be taken by the member states for their effective implementation where other union legislation does not provide a specific procedure to address the risks in question . those powers should be exercised in accordance with regulation no 182 / 2011 of the european parliament and of the council laying down the rules and general principles concerning mechanisms for control by the member states of the commission’s exercise of its implementing powers .


### where appropriate , market surveillance authorities shall alert users in their territories within an adequate timeframe of products that those authorities have identified as presenting a risk . ### where appropriate , market surveillance authorities shall alert users in their territories without delay of the identity of products that those authorities have identified as presenting a risk .


### the member states shall lay down the rules on penalties applicable to infringements of the provisions of this regulation that impose obligations on economic operators and to infringements of provisions of any union harmonisation legislation on products covered by this regulation that impose obligations on economic operators where that legislation does not provide for penalties , and shall take all measures necessary to ensure that they are implemented . the penalties provided for must be effective , proportionate and dissuasive . member states shall notify those provisions to the commission by [ insert date - 3 months prior to the date of application of this regulation ] and shall notify it without delay of any subsequent amendment affecting them . ### the member states shall lay down the rules establishing appropriate penalties applicable to infringements of the provisions of this regulation that impose obligations on economic operators and to infringements of provisions of any union harmonisation legislation on products covered by this regulation that impose obligations on economic operators where that legislation does not provide for penalties , and shall take all measures necessary to ensure that they are implemented . member states shall notify those provisions to the commission by . . . * and shall notify it without delay of any subsequent amendment affecting them . ____________ * oj : please insert the date : three months prior to the date of application of this regulation .


### market surveillance should be based on the assessment of the risk presented by a product taking all relevant data into account . a product that is subject to union harmonisation legislation which lays down essential requirements relating to protection of certain public interests should be presumed not to present a risk to those public interests if it complies with those essential requirements . ### market surveillance should be based on the assessment of the risk presented by a product taking all relevant data into account . the methodology and criteria of assessing risks should be homogeneous in all member states in order to ensure level playing field for all economic operators . a product that is subject to union harmonisation legislation which lays down essential requirements relating to protection of certain public interests should be presumed not to present a risk to those public interests if it complies with those essential requirements .


### within 60 days of communication by the commission to the member states , pursuant to article 20 , of any refusal to release a product for free circulation by the original notifying member state , a member state may object to that refusal where it relates to a product subject to union harmonisation legislation . the member state shall state its reasons for objecting , indicate any difference in its assessment of the risk presented by the product and mention any special circumstances and any additional information relating to the product in question . ### within 15 days of communication by the commission to the member states , pursuant to article 20 , of any refusal to release a product for free circulation by the original notifying member state , a member state may object to that refusal where it relates to a product subject to union harmonisation legislation . the member state shall state its reasons for objecting , indicate any difference in its assessment of the risk presented by the product and mention any special circumstances and any additional information relating to the product in question .


### no later than [ five ] years after the date of application , the commission shall assess the application of this regulation and transmit an evaluation report to the european parliament and the council . that report shall assess if this regulation achieved its objectives , in particular with regard to ensuring more effective and efficient enforcement of product safety rules and union harmonisation legislation , improving cooperation between market surveillance authorities , strengthening the controls of products entering the union and better protecting the health and safety of persons in general , health and safety in the workplace , consumer protection , the environment , public security and other public interests , taking into account its impact on business and in particular on small and medium - sized enterprises . ### no later than [ five ] years after the date of application , the commission shall assess the application of this regulation and transmit an evaluation report to the european parliament and the council . that report shall assess if this regulation achieved its objectives , in particular with regard to ensuring more effective and efficient enforcement of product safety rules and union harmonisation legislation , improving cooperation between market surveillance authorities , strengthening the controls of products entering the union and better protecting the health and safety of persons in general , health and safety in the workplace , consumer protection , the environment , energy efficiency , public security and other public interests , taking into account its impact on business and in particular on small and medium - sized enterprises . in addition , that report shall explore new and innovative , market - based solutions that could effectively complement the market surveillance actions carried out by the market surveillance authorities , and shall include , but not be limited to , exploring the potential of compulsory third party auditing schemes .


### market surveillance authorities shall perform appropriate checks on the characteristics of products on an adequate scale and with adequate frequency , by means of a documentary check and , where necessary , a physical and laboratory check on the basis of an adequate sample . they shall record these checks in the information and communication system for market surveillance referred to in article 21 . ### market surveillance authorities shall organise their activities in such a way that maximum effectiveness can be achieved . they shall perform appropriate checks on the characteristics of products on an adequate scale and with adequate frequency , by means of a documentary check and , where necessary , a physical and laboratory check on the basis of an adequate sample . where appropriate , along with these traditional market sampling mechanisms , the market surveillance authorities shall move to pro - active auditing of supply chain processes at entities involved in the manufacturing , importing , trading , branding and retailing of consumer products . they shall record these checks in the information and communication system for market surveillance referred to in article 21 .


### market surveillance authorities shall take due consideration of any readily available test result and risk assessment that has already been carried out or issued in relation to the product by an economic operator or any other person or authority including the authorities of other member states . ### market surveillance authorities shall take due consideration of any readily available and comprehensible test result and risk assessment that has already been carried out or issued in relation to the product by an economic operator or any other person or authority including the authorities of other member states .


### ‘ union harmonisation legislation’ means union legislation harmonising the conditions for the marketing of products ; ### ‘ union harmonisation legislation’ means union legislation harmonising the conditions for the marketing of products by laying down the characteristics required of a product such as levels of quality , performance , safety or dimensions , including the requirements applicable to the product as regards the name under which the product is sold , terminology , symbols , testing and test methods , packaging , marking or labelling and conformity assessment procedures ;


### follow and keep up to date with developments in scientific and technical knowledge concerning the safety of products . ### follow and keep up to date with developments in scientific and technical knowledge concerning the safety of products and compliance of products with applicable union legislation .


### compliance with the criteria referred to in points , and of paragraph 2 shall raise a presumption that the product adequately safeguards the public interests to which those criteria relate . however , this shall not prevent market surveillance authorities from taking action under this regulation where there is new evidence that , despite such conformity or compliance , the product presents a risk . ### compliance with the criteria referred to in points , and of paragraph 2 shall raise a presumption that the product adequately safeguards the public interests to which those criteria relate . however , this shall not prevent market surveillance authorities from taking action under this regulation where there is new evidence that , despite such conformity or compliance , the product presents a risk . in that case , the market surveillance authority shall demonstrate that the product presents a risk .


### compliance with the criteria referred to in points , and of paragraph 2 shall raise a presumption that the product adequately safeguards the public interests to which those criteria relate . however , this shall not prevent market surveillance authorities from taking action under this regulation where there is new evidence that , despite such conformity or compliance , the product presents a risk . ### compliance with the criteria referred to in points , and of paragraph 2 shall raise a presumption that the product adequately safeguards the public interests to which those criteria relate . however , this shall not prevent market surveillance authorities from taking action under this regulation where there is evidence that , despite such conformity or compliance , the product presents a risk .


### alerting the persons at risk to the risk , in good time and in an appropriate form , including by publication of special warnings ; ### alerting the persons at risk to the risk , immediately and in an appropriate form , including by publication of special warnings ;


### on request , economic operators and , where applicable , conformity assessment bodies , shall make available to market surveillance authorities any documentation and information that those authorities require for the purpose of carrying out their activities , in a language which can be easily understood by them . ### further to a reasoned request , economic operators shall , according to their respective role in the supply chain and , where applicable , including conformity assessment bodies , make available to market surveillance authorities any documentation and information that those authorities require for the purpose of carrying out their activities .


### regardless whether the risk assessment shows that the product in fact presents a risk , market surveillance authorities shall require the economic operator to rectify the formal non - compliance . if the economic operator fails to do so , market surveillance authorities shall ensure that the product is withdrawn or recalled . ### regardless whether the risk assessment shows that the product in fact presents a risk , the economic operator shall rectify the formal non - compliance . if the economic operator fails to do so , market surveillance authorities may ensure that the product is withdrawn or recalled . for minor infringements , a warning may be issued or a penalty payment imposed .


### preventing the product from being placed or made available on the market ; ### preventing immediately the product from being placed or made available on the market ;


### the implementation of market surveillance activities and external border controls shall be monitored by the member states which shall report on these activities and controls to the commission every year . the information reported shall include statistics regarding the number of controls carried out and shall be communicated to all member states . member states may make a summary of the results accessible to the public . ### member states shall report on the market surveillance activities and external border controls to the commission every year . the information reported shall include statistics regarding the number and outcomes of controls carried out and shall be communicated to all member states . the commission shall make a summary of the information reported to it available to the public electronically and , where appropriate , by other means .


### risk assessment shall be based on available scientific or technical evidence . ### risk assessment shall be based on available scientific or technical evidence . risk assessment shall be carried out in accordance with the general risk assessment methodology established and used by the commission and , as appropriate , in accordance with the application made by the commission for a specific category of products .


### market surveillance authorities shall publish information about product identification , the nature of a risk and the measures taken to prevent , reduce or eliminate that risk on a dedicated website to the fullest extent necessary to protect the interests of users of products in the union . this information shall not be published where it is imperative to observe confidentiality in order to protect commercial secrets , preserve personal data pursuant to national and union legislation or avoid undermining monitoring and investigation activities . ### in the case of products found to present a risk , market surveillance authorities shall publish information about product identification , the nature of a risk and the measures taken to prevent , reduce or eliminate that risk on a dedicated website to the fullest extent necessary to protect the interests of users of products in the union . this information shall not be published where it is imperative to observe confidentiality in order to protect commercial secrets , preserve personal data pursuant to national and union legislation or avoid undermining monitoring and investigation activities .


### ‘ product presenting a risk’ means a product having the potential to affect adversely health and safety of persons in general , health and safety in the workplace , consumer protection , the environment and public security as well as other public interests to a degree which goes beyond that considered reasonable and acceptable under the normal or reasonably foreseeable conditions of use of the product concerned , including the duration of use and , where applicable , its putting into service , installation and maintenance requirements ; ### ‘ product presenting a risk’ means a product which has the potential to affect adversely health and safety of persons in general , including those involved in the manufacturing process , health and safety in the workplace , workers ' rights through non - compliance with fundamental ilo conventions , consumer protection , the environment , protection of intellectual property rights and public security , including in the country where the product was produced and / or processed , as well as other public interests to a degree which goes beyond that considered reasonable and acceptable under the normal or reasonably foreseeable conditions of use of the product concerned , including the duration of use and , where applicable , its putting into service , installation and maintenance requirements ;


### provide consumers and other interested parties with the opportunity to submit complaints on issues relating to product safety , market surveillance activities and risks arising in connection with products and follow up those complaints as appropriate ; ### provide consumers and other interested parties with the opportunity to submit complaints on issues relating to product safety , market surveillance activities and risks arising in connection with products and follow up those complaints within a reasonable time frame ;


### market surveillance authorities may destroy or otherwise render inoperable a product presenting a risk where they deem it necessary and proportionate . they may require the relevant economic operator to bear the cost of such action . ### market surveillance authorities may destroy or otherwise render inoperable a product presenting a risk where they deem it necessary and proportionate . all of the expenses incurred by the surveillance authority in the scope of the application of this provision shall be borne by the economic operator unless the surveillance authority considers this decision to be disproportionate , in which case it may decide that the cost shall be borne by the economic operator only partly .


### market surveillance should be financed at least in part by fees charged to economic operators where they are required by market surveillance authorities to take corrective action or where those authorities are obliged to take action themselves . ### market surveillance should be financed at least in part by fees charged to economic operators where they are required by market surveillance authorities to take corrective action or where those authorities are obliged to take action themselves . member states should ensure that the revenues collected from fees charged in accordance with this regulation are allocated to market surveillance activities .


### each member state shall establish appropriate mechanisms to ensure that the market surveillance authorities that it has established or designated exchange information , cooperate and coordinate their activities both among themselves and with the authorities in charge of controls of products at the external borders of the union . ### market surveillance authorities shall exchange information , cooperate and coordinate their activities both among themselves and with the authorities in charge of controls of products at the external borders of the union .


### market surveillance authorities shall be given the powers and entrusted with the resources and means necessary for the proper performance of their tasks . ### each member state shall grant market surveillance authorities the powers and entrust them with the resources and means necessary for the proper performance of their tasks and report to the commission thereon . the commission shall evaluate whether those powers and resources are sufficient for the proper performance of that member state ' s market surveillance obligations under this regulation , and shall make the outcomes of its evaluations available to the public electronically and , where appropriate , by other means .


### to contribute to the development of guidance to ensure the effective and uniform implementation of this regulation , taking due account of the interests of business , in particular small and medium - sized enterprises , and other stakeholders ; ### to contribute to the development of guidance to ensure the effective and uniform implementation of this regulation , taking due account of the interests of business , in particular small and medium - sized enterprises , consumer protection , and other stakeholders ;


### within 60 days of communication by the commission to the member states , pursuant to article 20 , of measures taken pursuant to paragraphs 1 or 4 of article 10 by the original notifying member state , a member state may object to those measures where they relate to a product subject to union harmonisation legislation . the member state shall state its reasons for objecting , indicate any difference in its assessment of the risk presented by the product and mention any special circumstances and any additional information relating to the product in question . ### within 60 calendar days of communication by the commission to the member states , pursuant to article 20 , of measures taken pursuant to paragraphs 1 or 4 of article 10 by the original notifying member state , a member state may object to those measures where they relate to a product subject to union harmonisation legislation . the member state shall state its reasons for objecting , indicate any difference in its assessment of the risk presented by the product and mention any special circumstances and any additional information relating to the product in question .


### the commission and member states may exchange confidential information , including information exchanged through rapex , with regulatory authorities of third countries or international organisations with which the commission and the member state or group of member states have concluded bilateral or multilateral confidentiality arrangements based on reciprocity . ### the commission and member states may exchange confidential information , including information exchanged through rapex , with regulatory authorities of third countries or international organisations with which the commission and the member state or group of member states have concluded bilateral or multilateral confidentiality arrangements based on reciprocity . any such arrangements shall include provisions on confidentiality corresponding to those applicable in the union as well as special provisions on personal data protection , as required by article 25 of directive 95 / 46 / ec and article 9 of regulation no 45 / 2001 .


### market surveillance authorities should be given the power to destroy products , render inoperable or order their destruction by the relevant economic operator , if they deem it necessary and proportionate to ensure that such goods cannot pose any further threats . ### market surveillance authorities should be given the power to destroy products , render inoperable or order their destruction by the relevant economic operator , if they deem it necessary and proportionate to ensure that such goods cannot pose any further threats . the relevant economic operator should bear all the costs related to those actions , in particular the costs incurred by the market surveillance authority .


### regardless whether the risk assessment shows that the product in fact presents a risk , market surveillance authorities shall require the economic operator to rectify the formal non - compliance . if the economic operator fails to do so , market surveillance authorities shall ensure that the product is withdrawn or recalled . ### regardless whether the risk assessment shows that the product in fact presents a risk , market surveillance authorities shall require the economic operator responsible for placing the product on the market to rectify the formal non - compliance . if the economic operator fails to do so , market surveillance authorities shall ensure that the product is withdrawn or recalled .


### general framework for supplementary reports ### general framework for supplementary information


### member states shall ensure that enterprises not included in the second subparagraph of paragraph 1 are subject to an energy audit carried out in an independent and cost - effective manner by qualified or accredited experts at the latest by 30 june 2014 and every three years from the date of the previous energy audit . ### member states shall encourage enterprises not included in the second subparagraph of paragraph 1 to undergo an energy audit carried out by qualified or accredited experts and to repeat the process at intervals of no more than five years .


### by 1 january 2014 , member states shall establish and notify to the commission a national heating and cooling plan for developing the potential for the application of high - efficiency cogeneration and efficient district heating and cooling , containing the information set out in annex vii . the plans shall be updated and notified to the commission every five years . member states shall ensure by means of their regulatory framework that national heating and cooling plans are taken into account in local and regional development plans , including urban and rural spatial plans , and fulfil the design criteria in annex vii . ### by 31 december 2015 , member states shall carry out and notify to the commission a comprehensive assessment of the potential for the application of high - efficiency cogeneration and efficient district heating and cooling , containing the information set out in annex vii . if they have already carried out an equivalent assessment , they shall notify it to the commission . the assessment shall be updated and notified to the commission every five years . member states shall ensure that efficient use of energy resources and the development of resource efficient heating and cooling systems are considered in local and regional development planning , including urban and rural spatial planning , and in local and regional energy strategies and planning . account shall be taken of local / regional heat markets .


### member states shall ensure that final customers for electricity , natural gas , district heating or cooling and district - supplied domestic hot water are provided with individual meters that accurately measure and allow to make available their actual energy consumption and provide information on actual time of use , in accordance with annex vi . ### member states shall ensure that if , where it is technically feasible and cost - effective , final customers for electricity , natural gas , district heating or cooling and district - supplied domestic hot water are provided with individual meters , these will accurately measure , and allow readings to be taken of , their actual energy consumption and provide information on actual time of use , in accordance with annex vi .


### by 1 january 2014 , member states shall establish and notify to the commission a national heating and cooling plan for developing the potential for the application of high - efficiency cogeneration and efficient district heating and cooling , containing the information set out in annex vii . the plans shall be updated and notified to the commission every five years . member states shall ensure by means of their regulatory framework that national heating and cooling plans are taken into account in local and regional development plans , including urban and rural spatial plans , and fulfil the design criteria in annex vii . ### by 1 january 2014 , member states shall analyse the potential for the application of high - efficiency cogeneration and efficient district heating and cooling and supply information on the subject to the commission , including the information set out in annex vii and a cost - benefit analysis . the analyses shall be updated in close cooperation with local authorities and notified to the commission every five years . member states shall ensure by means of their regulatory framework that national heating and cooling plans are taken into account in local and regional development plans , including urban and rural spatial plans , and fulfil the design criteria in annex vii .


### by 1 january 2014 , member states shall establish and notify to the commission a national heating and cooling plan for developing the potential for the application of high - efficiency cogeneration and efficient district heating and cooling , containing the information set out in annex vii . the plans shall be updated and notified to the commission every five years . member states shall ensure by means of their regulatory framework that national heating and cooling plans are taken into account in local and regional development plans , including urban and rural spatial plans , and fulfil the design criteria in annex vii . ### by 31 december 2015 , member states shall carry out and notify to the commission a comprehensive assessment of heating and cooling demand for developing the potential for the application of high - efficiency cogeneration and efficient district heating and cooling , containing the information set out in annex vii . if they have already carried out an equivalent assessment , they shall notify it to the commission . the assessment should consider different types of cogeneration on the basis of the specificities of different national demand and consumption patterns . the plans shall be updated and notified to the commission every five years . member states shall ensure that efficient use of energy resources and the development of resource efficient heating and cooling systems are considered in local and regional development planning , including urban and rural spatial plans , and in local and regional energy strategies and planning . account shall be taken of local / regional heat markets .


### the commission shall evaluate the annual reports and supplementary reports and assess the extent to which member states have made progress towards the achievement of the national energy efficiency targets required by article 3 and towards the implementation of this directive . the commission shall send its assessment to the european parliament and the council . based on its assessment of the reports the commission may issue recommendations to member states . ### the commission shall evaluate the annual reports and supplementary information and assess the extent to which member states have made progress towards the achievement of the national energy efficiency targets required by article 3 , and towards the implementation of this directive . the commission shall send its assessment to the european parliament and the council . based on its assessment of the reports the commission may issue recommendations or suggest modifications to the instruments applied by member states . if the assessment shows that a member state is not on track to achieve the national energy efficiency target , the member state shall , on request of the commission , revise its national energy efficiency plan referred to in paragraph 2 of this article .


### as an alternative to paragraph 1 , member states may opt to take other measures to achieve energy savings among final customers . the annual amount of energy savings achieved through this approach shall be equivalent to the amount of energy savings required in paragraph 1 . ### as an alternative to paragraph 1 , member states may opt to take other measures to achieve energy savings among final customers . the annual amount of energy savings achieved through this approach should be equivalent to the amount of energy savings required in paragraph 1 .


### allow obligated parties to count savings obtained in a given year as if they had instead been obtained in any of the two previous or two following years . ### allow obligated parties to count savings obtained in a given year as long as they can be documented and verified and as long as they does not extend lifetime of the savings .


### when member states put in place the roll - out of smart meters foreseen by directives 2009 / 72 / ec and 2009 / 73 / ec concerning electricity and gas markets , they shall ensure that the objectives of energy efficiency and final customer benefits are fully taken into account when establishing the minimum functionalities of the meters and obligations imposed on market participants . ### when member states put in place the roll - out of smart meters based on a positive cost - benefit analysis as foreseen by directives 2009 / 72 / ec and 2009 / 73 / ec concerning electricity and gas markets , they shall ensure that the objectives of energy efficiency and final customers benefits as well as data security , data safety and privacy issues are fully taken into consideration when establishing the minimum functionalities of the meters and obligations imposed on market participants .


### energy audits carried out in an independent manner resulting from energy management systems or implemented under voluntary agreements concluded between organisations of stakeholders and an appointed body and supervised by the member state concerned or by the commission , shall be considered as fulfilling the requirements of paragraph 2 . ### energy audits carried out in an independent manner , following specific common european harmonised standards , resulting from energy management systems or implemented under voluntary agreements concluded between organisations of stakeholders and an appointed body and supervised by the member state concerned or by the commission , shall be considered as fulfilling the requirements of paragraph 2 .


### in case of heating and cooling , where a building is supplied from a district heating network , a heat meter shall be installed at the building entry . in multi - apartment buildings , individual heat consumption meters shall also be installed to measure the consumption of heat or cooling for each apartment . where the use of individual heat consumption meters is not technically feasible , individual heat cost allocators , in accordance with the specifications in annex vi , shall be used for measuring heat consumption at each radiator . ### member states shall ensure that in buildings with several units , whose units are supplied with heat and domestic hot water from central systems the consumption is measured for each unit ; member states shall introduce rules for the annual consumption - based cost allocation of heat and domestic hot water in these buildings . exceptions are allowed if the installation of measuring devices or the consumption based cost allocation turns out to be technically not feasible , and / or a cost - benefit analysis shows that the costs outweigh the benefits , e . g . in high efficient buildings . the metering of cooling is optional .


### network regulation and tariffs shall allow network operators to offer system services and system tariffs for demand response measures , demand management and distributed generation on organised electricity markets , in particular : ### network regulation and tariffs shall encourage network operators to promote system services and system tariffs for demand response measures , demand management and distributed generation on organized electricity markets , subject to a cost - effectiveness impact per types of targeted customers . systems services include :


### directive 2006 / 32 / ec requires member states to adopt and aim to achieve an overall national indicative energy savings target of 9% by 2016 , to be reached by deploying energy services and other energy efficiency improvement measures . that directive states that the second energy efficiency plan adopted by the member states shall be followed , as appropriate and where necessary , by commission proposals for additional measures , including extending the period of application of targets . if a report concludes that insufficient progress has been made towards achieving the indicative national targets laid down by that directive , these proposals are to address the level and nature of the targets . the impact assessment accompanying this directive finds that the member states are on track to achieve the 9% target , which is substantially less ambitious than the subsequently adopted 20% energy saving target for 2020 , and therefore there is no need to address the level of the targets . ### directive 2006 / 32 / ec requires member states to adopt and achieve an overall national indicative energy savings target of 9 % by 2016 , to be reached by deploying energy services and other energy efficiency improvement measures . that directive states the second energy efficiency plan adopted by the member states shall be followed by commission proposals for additional measures . the impact assessment accompanying the directive finds that the member states are on track to achieve the 9 % target , which is substantially less ambitious than the subsequently adopted 20 % energy saving target for 2020 and that therefore there is need to address the level of the individual national targets as quickly as possible .


### by 1 january 2014 , member states shall establish and notify to the commission a national heating and cooling plan for developing the potential for the application of high - efficiency cogeneration and efficient district heating and cooling , containing the information set out in annex vii . the plans shall be updated and notified to the commission every five years . member states shall ensure by means of their regulatory framework that national heating and cooling plans are taken into account in local and regional development plans , including urban and rural spatial plans , and fulfil the design criteria in annex vii . ### by 31 december 2015 , member states shall carry out and notify to the commission an assessment of the potential for the application of high - efficiency cogeneration and efficient district heating and cooling , containing the information set out in annex vii . if they have carried out an equivalent assessment , they shall notify it to the commission . the assessment shall be updated and notified to the commission every five years . member states shall ensure that efficient use of energy resources and the development of resource efficient heating and cooling systems are considered in all local and regional energy strategies . account shall be taken of local / regional heat markets .


### member states shall make publicly available the certification schemes or equivalent qualification schemes referred to in paragraph 1 and shall cooperate among themselves and with the commission on comparisons between and recognition of the schemes . ### member states shall make publicly available the qualification schemes referred to in paragraph 1 and shall work on comparisons between and recognition of the schemes . this shall be without prejudice to directive 2005 / 36 / ec .


### the rate of building renovation needs to be increased , as the existing building stock represents the single biggest potential sector for energy savings . moreover , buildings are crucial to achieving the eu objective of reducing greenhouse gas emissions by 80 - 95% by 2050 compared to 1990 . buildings owned by public bodies account for a considerable share of the building stock and have high visibility in public life . it is therefore appropriate to set an annual rate of renovation of all buildings owned by public bodies to upgrade their energy performance . this renovation rate should be without prejudice to the obligations with regard to nearly - zero energy building27s set in directive 2010 / 31 / eu of the european parliament and of the council of 19 may 2010 on the energy performance of buildings . the obligation to renovate public buildings complements the provisions of that directive , which requires member states to ensure that when existing buildings undergo major renovation their energy performance is upgraded so that they meet minimum energy performance requirements . ### the rate of building renovation should be increased , as the existing building stock represents the single biggest potential sector for energy savings . moreover , buildings are crucial to achieving the eu objective of reducing greenhouse gas emissions by 80 - 95% by 2050 compared to 1990 . buildings owned by public bodies account for a considerable share of the building stock and have high visibility in public life . it is therefore advisable to undertake more renovation of buildings owned by public bodies to upgrade their energy performance .


### member states shall ensure that public bodies purchase only products , services and buildings with high energy efficiency performance , as referred to in annex iii . ### without prejudice to directive 2004 / 18 / ec , where energy efficiency standards already apply member states shall ensure that public bodies purchase products , services and buildings with high energy efficiency performance , taking into account cost - effectiveness , economical feasibility and technical suitability , as well as sufficient competition , as referred to in annex iii . for products not covered by european energy efficiency labelling legislation , public bodies should endeavour to take into account the energy efficiency of purchases .


### member states shall ensure that final customers for electricity , natural gas , district heating or cooling and district - supplied domestic hot water are provided with individual meters that accurately measure and allow to make available their actual energy consumption and provide information on actual time of use , in accordance with annex vi . ### member states shall ensure that final customers for electricity , natural gas , district or other central heating or cooling and district or other central - supplied domestic hot water are provided with individual meters that accurately measure and allow to make available their actual energy consumption and provide information on actual time of use , in accordance with annex vi .


### member states may exempt small energy distributors and small retail energy sales companies , namely those that distribute or sell less than the equivalent of 75 gwh of energy per year , employ fewer than 10 persons or have an annual turnover or annual balance sheet total that does not exceed eur 2 000 000 , from the application of this article . energy produced for self use shall not count towards these thresholds . ### member states may exempt small energy distributors and small retail energy sales companies , namely those that distribute or sell less than the equivalent of 75 gwh of energy per year , employ fewer than 10 persons or have an annual turnover or annual balance sheet total that does not exceed eur 2 000 000 , from the obligation to offer energy services , provided that such exemption does not result in a distortion of competition and that alternative energy - saving measures are implemented . energy produced for self use shall not fall within the scope of this directive ; nor shall those sectors already subject to the provisions of the emissions trading directive .


### member states opting for this option shall notify to the commission , by 1 january 2013 at the latest , the alternative measures that they plan to adopt , including the rules on penalties referred to in article 9 , and demonstrating how they would achieve the required amount of savings . the commission may refuse such measures or make suggestions for modifications in the 3 months following notification . in such cases , the alternative approach shall not be applied by the member state concerned until the commission expressly accepts the resubmitted or modified draft measures . ### member states opting for this option shall notify to the commission , by 1 january 2013 at the latest , the alternative measures that they plan to adopt , including the rules on penalties referred to in article 9 , and demonstrating how they would achieve the required amount of savings . the commission may make suggestions for modifications in the 3 months following notification . the member states shall take these suggestions or modifications into account .


### member states shall take the necessary measures to develop efficient district heating and cooling infrastructure to accommodate the development of high - efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources in accordance with paragraphs 1 , 3 , 6 and 7 . when developing district heating and cooling , they shall to the extent possible opt for high - efficiency cogeneration rather than heat - only generation . ### on the basis of the assessment referred to in paragraph 1 , member states shall take the necessary measures to develop efficient district heating and cooling infrastructure to accommodate the development of high - efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources in accordance with paragraphs 1 , 3 , 6 and 7 . when developing district heating and cooling , they shall to the extent possible opt for high - efficiency cogeneration rather than heat - only generation .