### 1. member states as well as the regulatory authorities shall cooperate with each other for the purpose of integrating their national markets at one and more regional levels , towards the creation of regional markets , where member states as well regulatory authorities so decided , and further towards the creation of a fully liberalised internal market. in particular , the regulatory authorities where member states have so provided or member states shall promote and facilitate the cooperation of natural gas transmission system operators and hydrogen network operators at a regional level , including on cross-border issues , with the aim of creating a competitive internal market for gases , foster the consistency of their legal , regulatory and technical framework and facilitate integration of the isolated systems forming gas islands that persist in the union . the geographical areas covered by such regional cooperation shall include cooperation in geographical areas defined in accordance with article 28(3) of regulation (ec) . such cooperation may cover other geographical areas. where the commission considers that the rules at union levelare relevant for the regional integration of markets for gases , it shall provide appropriate guidance taking into account the specificities of these markets and the impact on neighbouring markets. ### 1. member states as well as the regulatory authorities shall cooperate with each other for the purpose of integrating their national markets at one and more regional levels , towards the creation of regional markets , where member states as well regulatory authorities so decided , and further towards the creation of a fully liberalised internal market. in particular , the regulatory authorities where member states have so provided or member states shall promote and facilitate the cooperation of natural gas transmission system operators and hydrogen network operators at a regional level , including on cross-border issues and decommissioning of assets , with the aim of ensuring cost- effective decarbonisation and continued competition during scaling down of the system. the geographical areas covered by such regional cooperation shall include cooperation in geographical areas defined in accordance with article 28(3) of regulation (ec) . such cooperation may cover other geographical areas. where the commission considers that the rules at union level are relevant for the regional integration of markets for gases , it shall provide appropriate guidance taking into account the specificities of these markets and the impact on neighbouring markets.


### 2. the agency for the cooperation of energy regulators (‘acer ’) shall cooperate with regulatory authorities and transmission system operators to ensure the compatibility of regulatory frameworks between and within the regions with the aim of creating a competitive internal market in gases . where acer considers that binding rules on such cooperation are required , it shall make appropriate recommendations. ### 2. the agency for the cooperation of energy regulators (‘acer ’) shall cooperate with regulatory authorities and transmission system operators to ensure the compatibility of regulatory frameworks between and within the regions with the aim of creating a competitive internal market in gases and phasing out of fossil gas. where acer considers that binding rules on such cooperation are required , it shall make appropriate recommendations.


### 1. in circumstances where an authorisation (for example , a licence , permission , concession , consent or approval) is required for the construction or operation of natural gas facilities , hydrogen production facilities and hydrogen system infrastructure , the member states or any competent authority they designate shall grant authorisations to build and/or operate such facilities , infrastructure , pipelines and associated equipment on their territory , in accordance with paragraphs 2 to 11. member states or any competent authority they designate may also grant authorisations on the same basis for the supply of gases and for wholesale customers. ### 1. in circumstances where an authorisation (for example , a licence , permission , concession , consent or approval) is required for the construction , operation or decommissioning of natural gas facilities , hydrogen production facilities and hydrogen system infrastructure , the member states or any competent authority they designate shall grant authorisations to build and/or operate such facilities , infrastructure , pipelines and associated equipment on their territory , in accordance with paragraphs 2 to 11. member states or any competent authority they designate may also grant authorisations on the same basis for the supply of gases and for wholesale customers.


### 2. where member states have a system of authorisation , they shall lay down objective and non-discriminatory criteria which shall be met by an undertaking applying for an authorisation to supply gases or to construct and/or operate natural gas facilities , hydrogen production facilities or hydrogen system infrastructure . the non-discriminatory criteria and procedures for the granting of authorisations shall be made public. member states shall ensure that authorisation procedures for such facilities , infrastructure , pipelines and associated equipment take into account the importance of the project for the internal market for gases where appropriate. ### 2. where member states have a system of authorisation , they shall lay down objective and non-discriminatory criteria , and transparent procedures requiring public participation and the publication of information , which shall be met when an undertaking applies for an authorisation to supply gases or to construct and/or operate natural gas facilities , hydrogen production facilities or hydrogen system infrastructure . the non-discriminatory criteria and procedures for the granting of authorisations shall be made public. member states shall ensure that authorisation procedures for such facilities , infrastructure , pipelines and associated equipment take into account the importance of the project for the internal market for gases where appropriate.


### 4. member states shall assess which legislative and non-legislative measures are necessary to streamline authorisation procedures , including any procedural steps related to environmental impact assessment procedures. member states shall report to the european commission on the results of such an assessment as part of their integrated national energy and climate plans as referred to in , and in accordance with , the procedure set out in article 3 and articles 7 to 12 of regulation (eu) 2018/1999 , and as part of their integrated national energy and climate progress reports pursuant to article 17 of regulation (eu) 2018/1999. ### 4. member states shall assess which legislative and non-legislative measures are necessary to streamline authorisation procedures , without hampering any procedural steps related to environmental impact assessment procedures and public consultations. member states shall report to the european commission on the results of such an assessment as part of their integrated national energy and climate plans as referred to in , and in accordance with , the procedure set out in article 3 and articles 7 to 12 of regulation (eu) 2018/1999 , and as part of their integrated national energy and climate progress reports pursuant to article 17 of regulation (eu) 2018/1999.


### 10. for the development of newly supplied areas and efficient operation generally , and without prejudice to article 30 , member states may decline to grant a further authorisation to build and operate distribution pipeline systems for natural gas in any particular area once such pipeline systems have been or are authorised to be built in that area and if existing or proposed capacity is not saturated. ### 10. for the development of newly supplied areas and efficient operation generally , and without prejudice to article 30 , member states shall decline to grant a further authorisation to build and operate distribution pipeline systems for natural gas unless established in the net-zero infrastructure plan that those lines are needed to supply industry or transport renewable gases. member states shall also decline in any particular area once such pipeline systems have been or are authorised to be built in that area and if existing or proposed capacity is not saturated.


### certification of renewable and low carbon fuels ### certification of renewable fuels


### 1. renewable gases shall be certified in accordance with article 29 and 30 of directive (eu) 2018/2001. ### 1. renewable gases , as defined in article 2 point (2) , shall be certified in accordance with article 29 and 30 of directive (eu) 2018/2001 and article 29a [amending directive red 2021/xx]. renewable gases shall also meet the maximum methane leakage rates , according to annex iia of this directive , and minimise hydrogen leaks , according to the thresholds and methodology established in paragraph 5.


### 2. in order to ensure that the greenhouse gas emissions savings from the use of low carbon fuels and low carbon hydrogen are at least 70% in accordance with the definitions in article 2 , points (10) and (12) under article 2 , member states shall require economic operators to show that this threshold and the requirements established in the methodology referred to in paragraph 5 of this article have been complied with. for those purposes , they shall require economic operators to use a mass balance system in line with article 30 (1) and (2) of directive (eu) 2018/2001. ### 2. member states shall require economic operators to show that this threshold , the maximum methane leakage rates , as per annex iia of this directive , and the maximum hydrogen leaks requirements , established in the methodology referred to in paragraph 5 of this article , have been complied with.


### 3. member states shall ensure that economic operators submit reliable information regarding the compliance with the 70% greenhouse gas emissions savings threshold set in paragraph 2 and with the greenhouse gas emissions saving methodology referred to in paragraph 5 , and that economic operators make available to the relevant member state , upon request , the data that were used to develop the information. member states shall require economic operators to put in place an adequate standard of independent auditing of the information submitted , and to provide evidence that this has been done. the auditing shall verify that the systems used by economic operators are accurate , reliable and protected against fraud. ### 3. member states shall ensure that economic operators submit reliable information regarding the compliance with the maximum methane leakage rates as per annex iia of this directive and the maximum hydrogen leaks referred to in paragraph 5 , that economic operators make available to the relevant member state , upon request , the data that were used to develop the information. member states shall require economic operators to put in place an adequate standard of independent auditing of the information submitted , and to provide evidence that this has been done. the auditing shall verify that the systems used by economic operators are accurate , reliable and protected against fraud.


### 5. by 31 december 2024 , the commission shall adopt delegated acts in accordance with article 83 to supplement this directive by specifying the methodology for assessing greenhouse gas emissions savings from low carbon fuels. the methodology shall ensure that credit for avoided emissions is not given for carbon dioxide the capture of which has already received an emission credit under other provisions of law. ### 5. by 31 december 2023 , the commission shall adopt delegated acts in accordance with article 83 to supplement this directive by specifying maximum hydrogen leakage rates and the lifecycle methodology for calculating them.


### 6. the commission may decide that voluntary national or international schemes setting standards for the production of low carbon fuels or low carbon hydrogen provide accurate data on greenhouse gas emission savings for the purposes of this article and demonstrate compliance with the methodology referred to in paragraph 5 of this article. ### deleted


### 7. where an economic operator provides evidence or data obtained in accordance with a scheme that has been the subject of a recognition pursuant to paragraph 6 , a member state shall not require the economic operator to provide further evidence of compliance with the criteria for which the scheme has been recognised by the commission. ### deleted


### 8. competent authorities of the member states shall supervise the operation of certification bodies that are conducting independent auditing under a voluntary scheme. certification bodies shall submit , upon the request of competent authorities , all relevant information necessary to supervise the auditing , including the exact date , time and location of audits. where member states find issues of non-conformity , they shall inform the voluntary scheme without delay. ### deleted


### 9. at the request of a member state , which may be based on the request of an economic operator , the commission shall , on the basis of all available evidence , examine whether the greenhouse gas emissions saving criteria laid down in this article , the methodology developed in line with paragraph 5 of this article , and the greenhouse gas emissions savings thresholds set in article 2 , points (9) and (10) have been met. within six months of receipt of such a request , the commission shall decide whether the member state concerned may: ### 9. at the request of a member state , which may be based on the request of an economic operator , the commission shall , on the basis of all available evidence , examine whether the maximum methane leakage rates as per annex iia of this directive and the maximum hydrogen leakage rates in line with paragraph 5 have been met. within six months of receipt of such a request , the commission shall decide whether the member state concerned may:


### accept the evidence already provided to show compliance with the greenhouse gas emissions saving criteria for low carbon fuels; or ### accept the evidence already provided to show compliance with the maximum methane leakage rates and the maximum hydrogen leakage rates in line with paragraph 5; or


### by way of derogation from paragraph 7 , require suppliers of the source of low carbon fuels to provide further evidence of their compliance with the greenhouse gas emissions saving criteria and the 70% greenhouse gas emissions savings threshold. ### require suppliers of the source of renewable gases to provide further evidence of their compliance with the maximum methane leakage rates as per annex iia to this directive and the maximum methane leakage rates and the maximum hydrogen leakage rates.


### 10. member states shall also require the relevant economic operators to enter into the union database information on the transactions made and the sustainability characteristics of low carbon fuels in line with the requirements established in article 28 of directive (eu) 2018/2001. ### 10. member states shall also require the relevant economic operators to enter into the union database information on the transactions made and the sustainability characteristics , methane and hydrogen leakage rates of renewable gases in line with the requirements established in article 28 of directive (eu) 2018/2001.


### 1. member states shall ensure that final customers are entitled to act as active customers without being subject to disproportionate or discriminatory technical requirements , administrative requirements , procedures and charges , and to network charges that are not cost-reflective. ### 1. member states shall ensure that non-household final customers , from agricultural or public sector , are entitled to act as gas active customers without being subject to disproportionate or discriminatory technical requirements , administrative requirements , procedures and charges , and to network charges that are not cost-reflective. member states shall ensure that active customers comply with applicable sustainability and greenhouse gas emissions savings criteria under article 29 of directive 2018/2001 , as well as with the maximum methane leakages set out to annex iia and obligations under chapter iii of regulation xx/xx on methane emissions reduction in the energy sector.


### entitled to participate in energy efficiency schemes; ### entitled to participate in demand shifting schemes;


### citizen energy communities ### renewable energy communities participation in the gas system


### 1. member states shall provide an enabling regulatory framework for citizen energy communities ensuring that: ### 1. member states shall ensure that renewable energy communities:


### participation in a citizen energy community is open and voluntary; ### are able to access all natural gas markets in a non-discriminatory manner;


### members or shareholders of a citizen energy community are entitled to leave the community , in which case article 11 applies; ### are treated in a non-discriminatory and proportionate manner with regard to their activities , rights and obligations as final customers , producers , suppliers or distribution system operators or market participants; and


### members or shareholders of a citizen energy community do not lose their rights and obligations as household customers or active customers; ### are financially responsible for the imbalances they cause in the natural gas system or shall delegate their balancing responsibility in line with article 3 (e) of [recast gas regulation as proposed in com(2021) xxx];


### are open to cross-border participation; ### deleted


### are entitled to own , establish , purchase or lease distribution networks and to autonomously manage them subject to conditions set out in paragraph 4 of this article; ### deleted


### are subject to the exemptions provided for in article 28(2); ### deleted


### 3. member states shall ensure that citizen energy communities: ### deleted


### 4. member states may decide to grant citizen energy communities the right to manage distribution networks in their area of operation and establish the relevant procedures , without prejudice to chapter vi or to other rules and regulations applying to distribution system operators. ### deleted


### 16 smart metering systems in the natural gas system ### 16 smart metering systems in the natural gas system for industrial customers


### 1. in order to promote energy efficiency and to empower final customers , member states or , where a member state has so provided , the regulatory authority shall strongly recommend that natural gas undertakings optimise the use of natural gas , inter alia , by providing energy management services , and introducing smart metering systems that are interoperable , in particular with consumer energy management systems and with smart grids , in accordance with the applicable union data protection rules. ### 1. in order to complement energy efficiency measures pursuant to eed and epbd and to further empower final industrial customers , member states or , where a member state has so provided , the regulatory authority shall strongly recommend that natural gas undertakings optimise the use of natural gas , inter alia , by providing energy management services , and introducing , after a positive cost-benefit assessment , smart metering systems that are interoperable , in particular with consumer energy management systems and with smart grids , in accordance with the applicable union data protection rules.


### 2. member states shall ensure the deployment in their territories of smart metering systems. such deployment may be subject to a cost-benefit assessment which shall be undertaken in accordance with the principles laid down in annex ii. ### 2. member states shall proceed with the deployment in their territories of smart metering systems for industrial customers only after a positive cost-benefit assessment , which clearly assesses and specifies industrial consumers’ benefits arising from the use of smart meters and signing up for smart meter-enabled offers , which shall be undertaken in accordance with the principles laid down in annex ii.


### 4. member states that proceed with the deployment of smart metering systems shall ensure that final customers contribute to the associated costs of the deployment in a transparent and non-discriminatory manner , while taking into account the long-term benefits to the whole value chain. member states or , where a member state has so provided , the designated competent authorities , shall regularly monitor such deployment in their territories to track the delivery of benefits to consumers. ### 4. member states that proceed with the deployment of smart metering systems shall ensure that final customers contribute to the associated costs of the deployment in a transparent and non-discriminatory manner , while taking into account the long-term benefits to the whole value chain. member states or , where a member state has so provided , the designated competent authorities , shall regularly monitor such deployment in their territories to track the delivery of benefits to consumers.


### 5. where the deployment of smart metering systems has been negatively assessed as a result of the cost-benefit assessment referred to in paragraph 2 , member states shall ensure that the assessment is revised at least every four years in response to significant changes in the underlying assumptions and in response to technological and market developments. member states shall notify to the commission the outcome of their updated cost-benefit assessment as it becomes available. ### deleted


### smart metering systems in the hydrogen system ### smart metering systems in the hydrogen system for industrial customers


### article 19 ### deleted


### member states shall enable the access of renewable and low carbon gases to the market and infrastructure regardless whether the renewable and low carbon gases production facilities are connected to distribution or transmission networks. ### member states shall enable the access of renewable gases to the market and infrastructure regardless whether the gases production facilities are connected to distribution or transmission networks , provided that such access is deemed beneficial based on national net zero infrastructure planning as per article 51. member states shall not enable that access for low and medium temperature heat uses as of 1 jan 2027 and shall not allow new connections to the gas distribution grids for residential buildings as of [entry into force of this directive]


### (7) the eu hydrogen strategy recognises that , as eu member states have different potential for the production of renewable hydrogen , an open and competitive eu market with unhindered cross-border trade has important benefits for competition , affordability , and security of supply. moreover , it stresses that moving towards a liquid market with commodity-based hydrogen trading would facilitate entry of new producers and be beneficial for deeper integration with other energy carriers. it would create viable price signals for investments and operational decisions. the rules laid down in this directive should thus be conducive for hydrogen markets , commodity-based hydrogen trading and liquid trading hubs to emerge and any undue barriers in this regard should be eliminated by member states. whilst recognising the inherent differences , existing rules that enabled efficient commercial operations developed for the electricity and gas markets and trading should be rendered applicable to union hydrogen markets to the extent appropriate and within a suitable time frame. ### (7) the eu hydrogen strategy recognises that , as eu member states have different potential for the production of renewable hydrogen , an open and competitive eu market with unhindered cross-border trade has important benefits for competition , affordability , and security of supply. moreover , it stresses that moving towards a liquid market with commodity-based hydrogen trading would facilitate entry of new producers and be beneficial for deeper integration with other energy carriers. it would create viable price signals for investments and operational decisions. the rules laid down in this directive should thus be conducive for hydrogen markets , commodity-based hydrogen trading and liquid trading hubs to emerge and any undue barriers in this regard should be eliminated by member states. whilst recognising the inherent differences , existing rules that enabled efficient commercial operations developed for the electricity and gas markets and trading should be rendered applicable to union hydrogen markets to the extent appropriate and within a suitable time frame also taking into account methane and hydrogen leakages.


### (9) in line with the eu hydrogen strategy , the priority for the eu is to develop renewable hydrogen produced using mainly wind and solar energy. renewable hydrogen is the most compatible option with the eu’s climate neutrality and zero pollution goal in the long term and the most coherent with an integrated energy system. however , low-carbon fuels (lcfs) such as low-carbon hydrogen (lch) may play a role in the energy transition , particularly in the short and medium term to rapidly reduce emissions of existing fuels , and support the uptake of renewable fuels such as renewable hydrogen. in order to support the transition , it is necessary to establish a threshold for greenhouse gas emission reductions for low-carbon hydrogen and synthetic gaseous fuels. such threshold should become more stringent for hydrogen produced in installations starting operations from 1 january 2031 to take into account technological developments and better stimulate the dynamic progress towards the reduction of greenhouse gas emissions from hydrogen production. the eu energy system integration strategy highlighted the need to deploy an eu–wide certification system to also cover low-carbon fuels with the aim to enable member states to compare them with other decarbonisation options and consider them in their energy mix as a viable solution. in order to ensure that lcf have the same decarbonisation impact as compared to other renewable alternatives it is important that they are certified by applying a similar methodological approach based on a life cycle assessment of their total greenhouse gas (‘ghg’) emissions. this would allow deploying a comprehensive eu-wide certification system , covering the whole union energy mix. taking into consideration that lcf and lch are not renewable fuels , their terminology and certification could not be included in the proposal for the revision of directive (eu) 2018/2001 of the european parliament and of the council8 . therefore , their inclusion in this directive fills in this gap. ### (9) in line with the eu hydrogen strategy and the repowereu action plan , the priority for the eu is to develop renewable hydrogen produced using additional renewable electricity , mainly from wind and solar energy. renewable hydrogen is the only compatible option with the eu’s climate neutrality and zero pollution goal in the long term and the most coherent with an integrated energy system. however , considering that those fuels still incurs in emissions , leakages and energy conversion losses , to make sure they play a robust role in the transition , it is necessary to establish a stronger threshold for greenhouse gas emission reductions , accompanied by provisions on maximum methane and hydrogen leakage rates. such threshold should become more stringent as technological developments progress.


### (12) the european pillar of social rights places energy among the essential services everyone shall have access to and calls for support measures for those in need (principle 20). un sustainable development goal number 7 (sdg7) also calls for ensuring access to affordable , reliable , sustainable and modern energy for all. ### (12) the european pillar of social rights places good quality of energy among the essential services everyone shall have access to and calls for support measures for those in need (principle 20). un sustainable development goal number 7 (sdg7) also calls for ensuring access to affordable , reliable , sustainable and modern energy for all.


### (15) public service obligations in the form of price setting for the supply of natural gas should be used without overriding the principle of open markets in clearly defined circumstances and beneficiaries and should be limited in duration. in order to mitigate the distortive effects of public service obligations in price setting for the supply of natural gas , member states applying such interventions should put in place additional measures , including measures to prevent distortions of price setting in the wholesale market. member states should ensure that all beneficiaries of regulated prices are able to benefit fully from the offers available on the competitive market when they choose to do so. to that end , they should be directly and regularly informed of the offers and savings available on the competitive market , and should be provided with assistance to respond to and benefit from market-based offers. ### (15) public service obligations in the form of price setting for the supply of natural gas should be used only in exceptional circumstances without overriding the principle of open markets in clearly defined circumstances , should be limited in duration and be targeted only to those in need. in order to mitigate the distortive effects of public service obligations in price setting for the supply of natural gas , member states applying such interventions should put in place additional measures , including measures to prevent distortions of price setting in the wholesale market. member states should ensure that all beneficiaries of regulated prices are able to benefit fully from the offers available on the competitive market when they choose to do so. to that end , they should be directly and regularly informed of the offers and savings available on the competitive market , and should be provided with assistance to respond to and benefit from market-based offers.


### (16) public interventions in price setting for the supply of natural gas should not lead to direct cross-subsidisation between different categories of customer. according to that principle , price systems must not explicitly make certain categories of customer bear the cost of price interventions that affect other categories of customer. ### (16) public interventions in price setting for the supply of natural gas should not lead to direct cross-subsidisation between different categories of customers or between different heat supply sources , nor undermine the price signal for industry actors needed for decarbonisation , in particular whilst free allowances still persist in the ets sector. according to that principle , price systems must not explicitly make certain categories of customer bear the cost of price interventions that affect other categories of customer.


### (18) member states should take into account the fact that the successful transition requires enhanced investment in education and skills for workers in the gas industry , including in relation to infrastructure development. such mention would be in line with the proposal for a revision of eed (2021/0203 (cod). ### (18) member states should take into account the fact that the successful ecological transition requires enhanced investment in education , training and skills for workers in the energy sector , including gas industry , and related value chains , as well as in relation to infrastructure development and renewable energy roll out such as heat pump deployment and other renewables thermal sources. such mention would be in line with the proposal for a revision of eed (2021/0203 (cod) and red (2018/0201(cod)) as well as the repower eu initiatives.


### (21) as the natural gas sector , including the natural gas retail market was not part of the clean energy for all europeans package , the related provisions on consumer engagement and protection have not been adapted to the needs of the energy transition , which corresponds instead to the situation of over a decade ago when the third energy package was adopted. ### (21) as the natural gas sector , including the natural gas retail market was not part of the clean energy for all europeans package , the related provisions on infrastructure planning and investments , consumer engagement and protection have not been adapted to the needs of the energy transition , which corresponds instead to the situation of over a decade ago when the third energy package was adopted.


### (22) the natural gas market witnesses poor customer satisfaction and engagement as well as slow uptake of new renewable and low-carbon gases , which all reflect limited competition in many member states. unlike falling prices in wholesale markets , natural gas prices for household customers rose in the last decade resulting in household consumers paying two or three times more for their natural gas consumption than industrial customers. ### (22) the natural gas market witnesses exceptional circumstances leading to high prices which are expected to remain rather high also in the years to come , poor customer satisfaction and engagement as well as slow uptake of new renewable gases and other renewables thermal options , which all reflect limited competition in many member states as well as an unfavourable regulatory environment for electrification and thermal renewables uptake. unlike falling prices in wholesale markets , natural gas prices for household customers rose in the last decade resulting in household consumers paying two or three times more for their natural gas consumption than industrial customers , even before russian invasion of ukraine. the agency , as well as national regulatory authorities should continue to investigate for any market manipulations and distortions , and be empowered to cap margins and profits in the gas sector. member states should tax windfall profits harvested by energy companies during those exceptional circumstances and use them for measures to reduce gas consumptions , including on energy efficiency or gas switch.


### (25) to address the current gaps in the retail gas market , it is necessary to tackle the existing competition and technical barriers to the emergence of new services , better levels of service , and lower consumer prices , whilst ensuring the protection of energy poor and vulnerable consumers. ### (25) it is necessary to tackle the existing competition and technical barriers to the emergence of alternative , renewable based energy supply , new services , better levels of service , and lower consumer prices , whilst ensuring the protection of energy poor and vulnerable consumers.


### (26) in order to ensure a high level of consumer protection and empowerment consistently across energy sectors , the legislative framework in the decarbonised gas market legislation should reflect the electricity market customer protection and where relevant its empowerment provisions. ### (26) in order to ensure a high level of consumer protection and empowerment consistently across energy sectors , the legislative framework in the decarbonised gas market legislation should reflect an energy system perspective , the union's objectives on security of supply , energy efficiency and renewable energy and consider the electricity market customer protection and where relevant its empowerment provisions.


### (40) when deciding at national level on the deployment of natural gas smart metering systems , it should be possible to base such decision on an economic assessment. that economic assessment should take into account the long-term benefits of the deployment of smart metering systems to consumers and the whole value chain. should that assessment conclude that the introduction of such metering systems is economically reasonable and cost-effective only for consumers with a certain amount of natural gas consumption , member states should be able to take this into account when proceeding with deployment . however , such assessments should be reviewed regularly in response to significant changes in the underlying assumptions , or at least every four years , given the fast pace of technological developments. ### (40) deciding at national level on the deployment of natural gas smart metering systems for industrial customers , should dependent on a positive cost-benefit assessment , to avoid stranded investments for customers. that economic assessment should take into account the long-term benefits of the deployment of smart metering systems to industrial consumers and the whole value chain , and assesses industrial consumers’ benefits arising from the use of smart meters and signing up for smart meter-enabled offers. should that assessment conclude that the introduction of such metering systems is economically reasonable and cost-effective only for industrial consumers with a certain amount of natural gas consumption , member states should be able to take this into account when proceeding with deployment


### (41) in order to assist final customers’ active participation in the market , the smart metering systems to be deployed should have due regard to the use of relevant available standards , including those enabling interoperability on the level of the data model and the application layer , to best practices and the importance of the development of data exchange , to future and innovative energy services. moreover , the smart metering systems that are deployed should not represent a barrier to switching supplier in the case of natural gas consumers , and should be equipped with fit-for-purpose functionalities that allow final customers to have timely access to their consumption data , to modulate their energy behaviour , be rewarded for it , and obtain savings in their bills. ### (41) in order to assist final industrial customers’ active participation in the market , the smart metering systems to be deployed should have due regard to the use of relevant available standards , including those enabling interoperability on the level of the data model and the application layer , to best practices and the importance of the development of data exchange , to future and innovative energy services. moreover , the smart metering systems that are deployed should not represent a barrier to switching supplier in the case of natural gas consumers , and should be equipped with fit-for-purpose functionalities that allow final industrial customers to have timely access to their consumption data , to modulate their energy behaviour , be rewarded for it , and obtain savings in their bills.


### (42) member states that do not systematically deploy smart metering in the natural gas system should allow consumers to benefit from the installation of a smart meter , upon request and under fair and reasonable conditions , and should provide them with all the relevant information. ### deleted


### (47) the simplification and streamlining of administrative permit granting processes and clear time limits for decisions to be taken by the authorities competent for issuing an authorisation should ensure that the deployment of hydrogen production facilities and hydrogen system infrastructure can occur at an adequate pace. member states should be requested to report on progress made. grandfathering of authorisations (such as licences , permissions , concessions or approvals) , granted under national law for the construction and operation of existing natural gas pipelines and other network assets , is needed once the transported gaseous energy carrier in a gas pipeline changes from natural gas to (pure) hydrogen. this should prevent undue delay in repurposing existing natural gas pipelines and other networks assets for hydrogen transport. it should be avoided that conditions for granting authorisations for hydrogen system infrastructure are materially different unless sufficiently justified. technical safety considerations might justify a differentiated approach in grandfathering existing or issuing new authorisations. the provisions on authorisation procedures should apply without prejudice to international and union law , including provisions to protect the environment and human health. where duly justified on the grounds of extraordinary circumstances , it should be possible to extend the time limits for authorisation procedures by up to one year. ### (47) the simplification and streamlining of administrative permit granting processes and clear time limits for decisions to be taken by the authorities competent for issuing an authorisation should ensure that the deployment of hydrogen production facilities and hydrogen system infrastructure can occur at an adequate pace , while ensuring that the local authorities and citizens are involved at the earliest stage of planning and their views taken into account. member states should be requested to report on progress made. the provisions on authorisation procedures should apply without prejudice to international and union law , including provisions to protect the environment , biodiversity and human health , and with regard to ensuring minimisation of methane and hydrogen leakage. where duly justified on the grounds of extraordinary circumstances , it should be possible to extend the time limits for authorisation procedures by up to one year.


### (66) pipeline networks for hydrogen should constitute an important means of efficient and sustainable transport for hydrogen , both onshore and offshore. as a result of the high capital expenditure required for their construction , hydrogen pipeline networks could constitute natural monopolies. experience with the regulation of natural gas markets has shown the importance of ensuring open and non-discriminatory access to pipeline networks with a view to safeguarding competition on commodity markets. therefore , well-established principles of network operation , such as third-party access , should be applicable to onshore and offshore hydrogen networks in the union. ### (66) pipeline networks for hydrogen will not constitute in the short term an important means of efficient and sustainable transport for hydrogen , as it is expected that most renewable hydrogen will be traded in hydrogen derivatives such as ammonia , synthetic hydrocarbons , interim products for steel etc. and co-located with electrolysis. therefore integrated net zero infrastructure planning by public authorities based on future use and production locations for hydrogen shall precede any decision to invest in such pipelines.


### (67) the operation of hydrogen networks should be separated from activities of energy production and supply in order to avoid the risk of conflicts of interest on behalf of the network operators. the structural separation of ownership of hydrogen networks and participations in energy production and supply guarantees the absence of such conflicts of interest. member states should be able to rely on the alternative unbundling model of “integrated hydrogen network operator” until 2030 to provide a transitional period for existing vertically integrated hydrogen networks. member states should also be able to allow the use of the “independent hydrogen network operator” model to allow vertically integrated owners of hydrogen networks to retain ownership of their networks while ensuring the non-discriminatory operation of such networks after 2030. ### (67) the operation of hydrogen networks should be separated from activities of energy production and supply in order to avoid the risk of conflicts of interest on behalf of the network operators. the full separation of ownership of hydrogen networks and ownership or control of undertakings participating in energy production and supply guarantees the absence of such conflicts of interest. member states should be able to allow the use of the “independent hydrogen network operator” model to allow vertically integrated owners of hydrogen networks to retain ownership of their networks while ensuring the non-discriminatory operation of such networks after 2030. given the risk that conflicts of interest between gas and hydrogen activities could lead to the build-out of more hydrogen networks than what is needed to serve only priority , hard-to-abate industrial sectors (thus also contributing to lock-in in the event there is not enough hydrogen in the future to serve the end users connected to the networks) , it is prudent to ensure full vertical ownership unbundling for hydrogen networks from the very beginning.


### (68) whereas the joint operation of hydrogen networks and gas or electricity grids can create synergies and should thus be allowed , activities of hydrogen network operation should be organised in a separate legal entity in order to ensure transparency regarding financing and the use of access tariffs. ### deleted


### (69) the operation of hydrogen networks should be separated from the activities of energy production and supply in order to avoid the risk of conflicts of interest on behalf of the network operators. the structural separation of ownership of hydrogen networks and participation in energy production and supplies should guarantee the absence of such conflicts of interest. member states should be able to rely on the alternative unbundling model of integrated hydrogen network operator until 2030 to provide a transitional period for existing vertically integrated hydrogen networks. member states should also be able to offer the use of an independent hydrogen network operator to allow vertically integrated owners of hydrogen networks to retain ownership of their networks while ensuring the non-discriminatory operation of such networks after 2030. ### deleted


### (70) in order to ensure transparency with regard to the costs and financing of regulated activities , activities of hydrogen network operation should be separated from other network operation activities for other energy carriers at least in relation to the legal form and accounts of network operators. ### (70) in order to avoid conflict of interests and ensure transparency with regard to the costs and financing of regulated activities , the ownership and control of undertakings engaged in hydrogen network operation should be fully separated from the ownership and control of undertakings engaged in other network operation activities for other energy carriers


### (71) hydrogen networks should be subject to third-party access in order to ensure competition and a level playing field in the market for hydrogen supply. regulated third-party access on the basis of regulated access tariffs should be the default rule in the long-term. in order to ensure the necessary flexibility for operators and to reduce administrative costs during the ramp-up phase of the hydrogen market , member states should have the option to allow the use of negotiated third-party access until 2030. ### (71) hydrogen networks shall provide third-party access in order to ensure competition and a level playing field in the market for hydrogen supply. regulated third-party access on the basis of regulated access tariffs should be the default rule from the outset.


### (72) the availability of large-scale underground hydrogen storage facilities is limited and distributed unevenly across member states. in view of the potentially beneficial role for the functioning of hydrogen transport and markets , the access to such large-scale underground storages should be subject to regulated third party access in order to ensure a level playing field for market participants. ### (72) the availability of large-scale underground hydrogen storage facilities is at this point not existent and it will be limited and distributed unevenly across member states. in view of the potentially beneficial role for the functioning of hydrogen transport and markets , the access to such large-scale underground storages should be subject to regulated third party access in order to ensure a level playing field for market participants.


### (75) localised hydrogen clusters should be an important building block of the european hydrogen economy. such clusters could benefit from simplified regulatory requirements during the ramp-up phase of the hydrogen market. ### (75) renewable hydrogen uses will be occurring in localised clusters , in the form of closed networks , and steered towards priority users and applications. therefore only such closed hydrogen networks could benefit from simplified regulatory requirements as any generalised rules would disadvantage competing options such as electrification.


### (76) pipeline interconnectors with third countries can serve as a means of transport for imports or exports of hydrogen. the operating rules for such hydrogen interconnectors with third countries and rules on the certification of renewable and low-carbon hydrogen , should be enshrined in an intergovernmental agreement to ensure a coherent regulatory framework and its consistent application for the entire infrastructure. ### (76) pipeline interconnection are of limited relevance for the initial phases of the renewable hydrogen market. in fact , in the first phase , renewable hydrogen is expected to be transported and traded in the form of hydrogen products such as ammonia , synthetic hydrocarbons , feedstocks for industrial uses (steel , chemicals etc) as well as by trucks if produced in rural areas. therefore , pipeline interconnectors with third countries could eventually serve only in the future as a means of transport for imports or exports of hydrogen. the operating rules for such hydrogen interconnectors with third countries and rules on the certification of renewable and low-carbon hydrogen , should be enshrined in an intergovernmental agreement to ensure a coherent regulatory framework and its consistent application for the entire infrastructure.


### (77) to ensure the efficient operation of the european hydrogen networks , hydrogen network operators should be responsible for the operation , maintenance and development of the hydrogen transport network in close cooperation with other hydrogen network operators as well as with other system operators to which their networks are or can be connected with , including to facilitate energy system integration. ### (77) to ensure cost effective infrastructure rollout and to avoid stranded assets , the agency , at european level , and regulators at national level shall be responsible for net zero infrastructure planning combining electricity , hydrogen , gas , heat and transport systems. system operators are responsible for the operation , maintenance and development of the network in close cooperation with other network operators to which their networks are or can be connected with , including to facilitate energy system integration


### (78) hydrogen network operators should be tasked with building sufficient cross-border capacity for the transportation of hydrogen accommodating all economically reasonable and technically feasible demands for such capacity , thereby enabling market integration. ### (78) hydrogen , gas and electricity network operators should be tasked with building only the capacity that the regulator has identified as necessary in the net zero infrastructure planning.


### (79) in some cases , depending among others on the topography of hydrogen networks and the population of end-users connected to the hydrogen networks , hydrogen quality management by hydrogen network operators could become necessary (e.g. purification). therefore , regulatory authorities can task hydrogen network operators with ensuring efficient hydrogen quality management in their networks where necessary for system management. when undertaking such activities , hydrogen network operators should comply with applicable hydrogen quality standards. ### deleted


### (80) where system operators for natural gas or hydrogen network operators refuse requests for access or connection due to a lack of capacity , should refusals should be duly substantiated , and operators should be required to enhance their system in order to enable the requested connections or access where it is economic to do so. ### (80) where system operators for natural gas or hydrogen network operators refuse requests for access , connection or disconnection due to a lack of capacity , and the underpinning request is included in the regulators’ net zero infrastructure plan , operators are required to enhance their system in order to enable the requested connections or access where it is economic to do so.


### (96) member states should take concrete measures to assist the wider use of biogas and gas from biomass , the producers of which should be granted non-discriminatory access to the gas system , provided that such access is compatible with the relevant technical rules and safety standards on an ongoing basis. ### (96) member states should take concrete measures to steer the use of sustainable biogas and gas from biomass , into priority applications such as industry feedstocks , district heating backup and high temperature uses in industry. member states shall also ensure that biogas and biomethane grid integration is based on national sustainability potential assessments and on pre-identified priority uses and locations. only in those areas the producers should be granted non-discriminatory access to the gas system , provided that such access is compatible with the relevant technical rules and safety standards on an ongoing basis.


### (101) energy regulators need to be able to take decisions in relation to all relevant regulatory issues if the internal market in natural gas is to function properly , and to be fully independent from any other public or private interests. the provisions relating to autonomy in the implementation of the allocated budget of the regulatory authority should be implemented within the framework defined by national budgetary law and rules. while contributing to the independence of the regulatory authority from any political or economic interest through an appropriate rotation scheme , it should be possible for member states to take due account of the availability of human resources and of the size of the board. ### (101) energy regulators need to be able to take decisions in relation to all relevant regulatory issues if the internal market in natural gas is to function properly , and to be fully independent from any other political , public or private interests , including when developing the infrastructure network planning. the provisions relating to autonomy in the implementation of the allocated budget of the regulatory authority should be implemented within the framework defined by national budgetary law and rules. while contributing to the independence of the regulatory authority from any political or economic interest through an appropriate rotation scheme , it should be possible for member states to take due account of the availability of human resources and of the size of the board.


### (103) regulatory authorities should be able to fix or approve tariffs , or the methodologies underlying the calculation of the tariffs , on the basis of a proposal by the transmission system operator or distribution system operator(s) or liquefied natural gas (lng) system operator , or on the basis of a proposal agreed between those operators and the users of the network. in carrying out those tasks , regulatory authorities should ensure that transmission and distribution tariffs are non-discriminatory and cost-reflective , and should take account of the long-term , marginal , avoided network costs from demand-side management measures. ### (103) regulatory authorities should be able to fix tariffs , or the methodologies underlying the calculation of the tariffs , on the basis of input by system operators integrating the electricity , gas hydrogen and heat sectors. in carrying out those tasks , regulatory authorities should ensure that transmission and distribution tariffs , including through the phased own period where customers and supply shrinks , are non-discriminatory and cost-reflective , and should take account of the long-term , marginal , avoided network costs from demand-side management measures. any gas grid operator investing into the gas grid should also take the risk of it becoming a stranded asset.


### (104) regulatory authorities should promote , in close cooperation with the agency for the cooperation of energy regulators (acer) , established by regulation (ec) no 713/2009 of the european parliament and of the council15 , an open , competitive , secure and environmentally sustainable internal market in hydrogen with unhindered cross-border flows. regulatory authorities need to be able to take decisions in relation to all relevant regulatory issues if the internal market in hydrogen is to function properly. ### (104) regulatory authorities should promote , in close cooperation with the agency for the cooperation of energy regulators (acer) , established by regulation (ec) no 713/2009 of the european parliament and of the council15 , an integrated infrastructure planning for electricity , gas , heat and hydrogen.


### (109) transmission system operators play an important role in ensuring cost effective investments in gas networks. for an optimised planning across energy carriers and to bridge the gap between the diverse national and eu-wide network planning approaches , additional requirements for consistent planning are introduced. the network planning should also take account of the increased interlinkages between natural gas and electricity , as well as hydrogen. ### (109) for an optimised planning across energy carriers and to bridge the gap between the diverse national and eu-wide network planning approaches , additional requirements for consistent planning are introduced. the network planning should also take account of the increased interlinkages between natural gas and electricity , as well as hydrogen , the need to phase-out fossil gas by 2035 , and the union’s energy and climate obligations. for this reason , a net zero infrastructure planning obligation is introduced , which shall replace ten-year network development plans developed by transmission system operators. the net zero infrastructure plan shall be prepared by the national regulator , to avoid conflicts of interest inherent to industry-led planning , and it shall cover at least electricity , natural gas , heat and hydrogen.


### (110) when developing the network development plan , it is important that infrastructure operators take the energy efficiency first principle16 into account , in particular , the expected consumption used for the joint scenario development. ### (110) when developing the net zero infrastructure plan , it is important that infrastructure regulators take the energy efficiency first principle16 into account , in particular , the expected consumption used for the joint scenario development.


### (111) the energy system integration strategy points out the importance of the coordinated planning and operation of the energy system in achieving the decarbonisation objectives. therefore it is necessary to draw up a network development plan based on a joint scenario developed on a cross-sectoral basis. while still keeping separate sectorial plans , infrastructure operators should work towards a higher level of integration taking into account system needs beyond specific energy carriers. ### (111) the energy system integration strategy points out the importance of the coordinated planning and operation of the energy system in achieving the decarbonisation objectives. therefore it is necessary to draw up a net zero infrastructure plan based on a joint scenario developed on across-sectoral basis. the net zero infrastructure plan shall be consistent with the principle of energy system integration , as that term is applied in commission communication com (2020) 299 final and the european parliament resolution of 19 may 2021 on a european strategy for energy system integration (2020/2241(ini)).


### (112) network development plans are an important element to identify infrastructure gaps and provide information on infrastructure that either needs to be built or that can be decommissioned and could be used for other purposes , such as hydrogen transport. this is true irrespective of the unbundling model chosen for the network operators. ### (112) net zero infrastructure plans are an important element to identify infrastructure gaps and overcapacities and provide information on infrastructure that either needs to be built or that can be decommissioned and could be used for other purposes , such as hydrogen transport. this is true irrespective of the unbundling model chosen for the network operators.


### (113) providing information on infrastructure that can be decommissioned within the network development plan may mean either leaving the infrastructure unused , dismantling it or using it for other purposes , such as hydrogen transport. the objective of this increased transparency on infrastructure takes into account that repurposed infrastructure is comparatively cheaper than newly built infrastructure and hence should enable a cost effective transition. ### (113) providing information on infrastructure that can be decommissioned within the net zero infrastructure plan may mean either leaving the infrastructure unused , dismantling it or using it for other purposes , such as hydrogen transport. the objective of this increased transparency on infrastructure takes into account that repurposed infrastructure is comparatively cheaper than newly built infrastructure – which does not necessarily mean that it ensures overall cost effectiveness of the energy system.


### (114) in member states where a hydrogen network will be developed , reporting on the development of hydrogen infrastructure should ensure that the construction of a hydrogen system is based on a realistic and forward-looking demand projections including potential needs from the perspective of the electricity system. if member states decide to allow for dedicated charges as a means of co-funding new hydrogen infrastructure , the report should support the regulatory authority in its assessment of these charges. the report should be submitted to the regulatory authority on a regular basis to be decided by the regulatory authority. in light of the ramp-up character of the hydrogen market , a disproportionate and continuous sequencing of the reporting obligation should however be avoided. ### deleted


### (115) information contained in the network development plan should enable a forecast on the impacts on tariffs based on planning and decommissioning affecting the regulated asset base as mentioned in article 51 of this directive. ### (115) information contained in the net zero infrastructure plan should enable a forecast and regulation of the impacts on tariffs based on planning and decommissioning affecting the regulated asset base as mentioned in article 51 of this directive.


### (117) in contrast to electricity , the role of natural gas is expected to decrease , which also affects the demand for infrastructure investments. the network development plan therefore needs to balance competition concerns and avoid stranded assets. consequently , ownership unbundled transmission system operators should not be covered by article 51 (7). ### (117) in contrast to electricity , the role of natural gas is expected to decrease and phase-out by 2035 which also affects the decreasing demand for infrastructure investments as well as future network tariff setting. the net zero infrastructure plan therefore needs to launch the managed phase down of the gas grid , balance competition concerns and avoid stranded assets. any gas operators taking investments now should bear the consequences of the investment.


### (119) it is necessary to progress towards interconnected hydrogen markets in the union and thereby facilitate investments in cross-border hydrogen infrastructure. under the regulated third-party access regime , in the absence of cross-border transportation tariffs after 31 december 2030 a system of financial compensation should provide financial incentives for market participants to develop cross-border interconnectors. ### deleted


### (125) long-term contracts are an important part of the gas supply of member states . however , they should not constitute a barrier to the entry of renewable and low carbon gases , which is why the duration of contracts for the supply of fossil gas will not be able to run beyond 2049. such contracts shall always be in line with the objective of this directive and are compatible with the tfeu , including the competition rules. it is necessary to take into account long-term contracts in the planning of supply and transport capacity of undertakings. ### (125) long-term contracts are an important part of the gas supply of member states . however , they should not constitute a barrier to the entry of renewable gases and switching to other renewable sources , which is why the duration of contracts for the supply of fossil gas will not be able to run beyond 2035. such contracts shall always be in line with the objective of this directive and are compatible with the tfeu , including the competition rules. it is necessary to take into account long-term contracts in the planning of supply and transport capacity of undertakings.


### (143) in order to provide the minimum degree of harmonisation required to achieve the aim of this directive , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission in respect of non-essential elements of certain specific areas which are fundamental for achieving the objectives of this directive. it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making20 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council receive all documents at the same time as member states' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of the delegated acts. ### (143) in order to provide the minimum degree of harmonisation required to achieve the aim of this directive , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission in respect of non-essential elements of certain specific areas which are fundamental for achieving the objectives of this directive. it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level and with the public , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making20 . in particular , to ensure equal participation in the preparation of delegated acts , the public , the european parliament and the council receive all documents at the same time as member states' experts and the public , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of the delegated acts. the commission should also ensure that the public has access to all documents and other information submitted to the commission in connection with its adoption of the delegated act.


### 2. this directive establishes rules for the transport , supply and storage of natural gas and the transition of the natural gas system to a system based on renewable and low-carbon gases. ### 2. this directive establishes rules for the transport , supply and storage of natural gas and the transition , including decommissioning , of the natural gas system towards an integrated highly efficient energy system based on renewable energy sources , most notably electricity , followed by sustainable renewable gases and rfnbos for those applications that cannot be electrified by renewables.


### 3. this directive establishes common rules for the transport , supply and storage of hydrogen using the hydrogen system. it lays down the rules relating to the organisation and functioning of this sector , access to the market , the criteria and procedures applicable to the granting of authorisations for networks , supply and storage of hydrogen and the operation of systems. ### 3. this directive establishes common rules for the transport , supply and storage of renewable hydrogen using the hydrogen system. it lays down the rules relating to the organisation and functioning of this sector , access to the market , the criteria and procedures applicable to the granting of authorisations for networks , supply and storage of hydrogen and the operation of systems.


### (1) ‘natural gas’ means all gases that primarily consist of methane , including biogas and gas from biomass , in particular biomethane , or other types of gas , that can technically and safely be injected into , and transported through , the natural gas system; ### (1) ‘ natural gas’ means renewable gases that primarily consist of methane , that can technically and safely be injected into , and transported through , the natural gas system;


### (2) ‘renewable gas’ means biogas as defined in article 2 , point (28) of directive 2018/2001 , including biomethane , and renewable gaseous fuels part of fuels of non-biological origins (‘rfnbos’) as defined in article 2 , point (36) of that directive’; ### (2) ‘renewable gas’ means biogas produced from waste and residue feedstock as listed in annex ix - part a of directive 2018/2001 , including biomethane , and renewable gaseous fuels part of fuels of non-biological origins (‘rfnbos’) as defined in article 2 , point (36) of that directive’ which meets a life-cycle greenhouse gas emission reduction threshold of 80% compared to the fossil fuel comparator of 66g co2eq/mj1a and comply with requirements set out in the delegated act “establishing a union methodology setting out detailed rules for the production of renewable liquid and gaseous transport fuels of non-biological origin” and maximum hydrogen leakage rates. biogas produced from food and feed-based crops and intermediate crops , as defined in article 2 , point (40) of directive 2018/2001 , and roundwood including veneer , pulp logs , and stemwood shall not be considered renewable gas. renewable gases shall meet the maximum methane leakage rates , as per annex iia of this directive.


### (3) ‘gases’ mean natural gas and hydrogen; ### (3) ‘gases’ mean fossil gas , natural gas and renewable hydrogen;


### (10) ‘low-carbon hydrogen’ means hydrogen the energy content of which is derived from non-renewable sources , which meets a greenhouse gas emission reduction threshold of 70%; ### deleted


### (11) ‘low-carbon gas’ means the part of gaseous fuels in recycled carbon fuels as defined in article 2 , point (35) of directive (eu) 2018/2001 , low-carbon hydrogen and synthetic gaseous fuels the energy content of which is derived from low-carbon hydrogen , which meet the greenhouse gas emission reduction threshold of 70%. ### deleted


### (12) ‘low-carbon fuels’ means recycled carbon fuels as defined in article 2 of directive (eu) 2018/2001 , low-carbon hydrogen and synthetic gaseous and liquid fuels the energy content of which is derived from low-carbon hydrogen , which meet the greenhouse gas emission reduction threshold of 70%. ### deleted


### 3. this article shall also apply to citizen energy communities that manage distribution networks. ### deleted


### 4. until 31 december 2030 , a member state may decide not to apply paragraph 1. in such case , the member state shall ensure the implementation of a system of negotiated third party access to hydrogen networks in accordance with objective , transparent and non-discriminatory criteria. the regulatory authorities shall take the necessary measures for hydrogen network users to be able to negotiate access to hydrogen networks. the parties shall be obliged to negotiate access to hydrogen networks in good faith. ### 4. until 31 december 2030 , a member state may decide not to apply paragraph 1 , provided the hydrogen network operator is fully unbundled. in such case , the member state shall ensure the implementation of a system of negotiated third party access to hydrogen networks in accordance with objective , transparent and non-discriminatory criteria. one of those criteria shall be the immediate release of entry capacity when production capacity is decommissioned or undergoes a deep refurbishment , including changing the basic technology used to produce renewable hydrogen. the capacity released should be allocated with a priority to new renewable entrants to promote competition. the regulatory authorities shall take the necessary measures for hydrogen network users to be able to negotiate access to hydrogen networks. the parties shall be obliged to negotiate access to hydrogen networks in good faith.


### 1. member states shall ensure the implementation of a system of third party access to hydrogen terminals based on negotiated access in an objective , transparent and non-discriminatory manner , whereby the regulatory authorities shall take the necessary measures for hydrogen terminal users to be able to negotiate access to such terminals. the parties shall be obliged to negotiate access in good faith. ### 1. member states shall ensure the implementation of a system of third party access to hydrogen and ammonia terminals based on negotiated access in an objective , transparent and non-discriminatory manner , whereby the regulatory authorities shall take the necessary measures for hydrogen terminal users to be able to negotiate access to such terminals. the parties shall be obliged to negotiate access in good faith.


### refusal of access and connection ### refusal of access , connection or disconnection


### 2. taking into account national and union decarbonisation objectives , member states shall take appropriate measures to ensure that the natural gas or hydrogen undertaking refusing access or connection to the natural gas system or hydrogen system on the basis of lack of capacity or a lack of connection makes the necessary enhancements as far as it is economic to do so or when a potential customer is willing to pay for them. ### 2. member states shall ensure that no connection is granted for medium and low temperature heat industrial customers. taking into account national and union energy and climate objectives , the phase out date of fossil gas , according to article 1 , paragraph -1 , the planned gas switch , according to article 11a , member states shall take appropriate measures to ensure that the natural gas or hydrogen undertaking refusing access or connection to the natural gas system or hydrogen system on the basis of lack of capacity or a lack of connection makes the necessary enhancements as far as it is economic to do so or when a potential customer is willing to pay for them.


### 3. access to the system for renewable and low carbon gases may only be refused subject to the provisions of article 18 and 33 of [recast gas regulation as proposed in com(2021) xxx]. ### 3. access to the system for renewable gases may only be refused subject to the provisions of article 18 and 33 of [recast gas regulation as proposed in com(2021) xxx] and for requests that are not justified by the national net zero planning , the fossil gas phase out and the gas switch planning provisions set out by this directive.


### operate , maintain and develop under economic conditions secure , reliable and efficient transmission , storage or lng facilities to secure an open market , with due regard to the environment , the obligations laid down in [regulation (eu) 2022/ … (methane regulation)] ensure adequate means to meet service obligations; ### operate , maintain , develop and decommission under economic conditions secure , reliable and efficient transmission , storage or lng facilities to secure an open market , with due regard to the environment , national and union energy and climate objective , fossil gas phase out date and gas switch planning , the obligations laid down in [regulation (eu) 2022/ … (methane regulation)] ensure adequate means to meet service obligations;


### 3. transmission system operators shall cooperate with distribution system operators to ensure the effective participation of market participants connected to the grid in retail , wholesale and balancing market. ### 3. transmission system operators shall cooperate with distribution system operators to ensure the effective participation of market participants connected to the grid in retail , wholesale and balancing market as well as to ensure maximum methane leakage rates are respected.


### 9. lng and storage system operators shall cooperate , within one member state and regionally , to ensure the most efficient use of facilities capacities and synergies between these facilities , taking into account system integrity and operation. ### 9. lng and storage system operators shall cooperate , within one member state and regionally , to ensure the most efficient use of facilities capacities and synergies between these facilities , taking into account system integrity and operation and minimised methane leakage inter alia by prioritising co located uses.


### 1. the transmission system operator shall establish and publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable and low carbon gases. those procedures shall be subject to approval by the regulatory authorities. ### 1. the transmission system operator shall establish and publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable gases , only for the strictly necessary capacity as identified by the national integrated net zero infrastructure planning. those procedures shall be subject to approval by the regulatory authorities.


### 2. the transmission system operators shall not be entitled to refuse economically reasonable and technically feasable connection requests of a new production facility installation for renewable and low carbon gases. ### 2. the transmission system operators shall not be entitled to refuse economically reasonable and technically feasible connection requests of a new production facility installation for renewable gases which are included in national net zero infrastructure planning and national natural gas phase out and switch plans.


### 1. the transmission system operator and the hydrogen network operator shall establish and publish transparent and efficient procedures and tariffs for non-discriminatory connection of natural gas and hydrogen storage facilities , lng regasification facilities , hydrogen terminals and industrial customers to the transmission system and the hydrogen network . those procedures shall be subject to approval by the regulatory authority. ### 1. the transmission system operator and the hydrogen network operator shall establish and publish transparent and efficient procedures and tariffs for non-discriminatory connection of natural gas and renewable hydrogen storage facilities , lng regasification facilities , hydrogen terminals and industrial customers to the transmission system and the hydrogen network only for the strictly necessary capacity identified under the national integrated net zero infrastructure planning. those procedures shall be subject to approval by the regulatory authority.


### member states shall designate , or shall require undertakings which own or are responsible for distribution systems to designate , for a period of time to be determined by member states , having regard to considerations of efficiency and economic balance , one or more distribution system operators and shall ensure that those operators act in accordance with articles 40 , 42 and 43. ### following a transparent procedure , member states shall designate , or shall require undertakings which own or are responsible for distribution systems to designate , for a period of time to be determined by member states , having regard to considerations of efficiency , the net zero pathways and economic balance , one or more distribution system operators and shall ensure that those operators act in accordance with articles 40 , 42 and 43. the period of time shall not exceed 10 years.


### 1. each distribution system operator shall be responsible for ensuring the long-term ability of the system to meet reasonable demands for the distribution of gas , and for operating , maintaining and developing under economic conditions a secure , reliable and efficient system in its area , with due regard for the environment , the obligations laid down in [regulation (eu) 2022/ … (methane regulation)] and energy efficiency. ### 1. each distribution system operator shall be responsible for ensuring the long-term ability of the system to meet demands for the distribution of gas in net zero infrastructure plans , and for operating , maintaining , developing and decommissioning under economic conditions a secure , reliable and efficient system in its area. each distribution system operator shall be responsible for ensuring the maximum leakage rates established in article xx and annex xx of this directive , and , the obligations laid down in [regulation (eu) 2022/ … (methane regulation)] and energy efficiency. this also includes biogas and biomethane assets.


### 9. the distribution system operators shall not be entitled to refuse economically reasonable and technically feasible connection requests of a new production facility for renewable and low carbon gases. ### 9. the distribution system operators shall not be entitled to refuse connection requests of a new production facility for renewable and low carbon gases that is included in the national net zero infrastructure plan.


### regulatory authorities shall oblige the distribution system operator to publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable and low carbon gases. those procedures shall be subject to approval by the regulatory authorities. ### regulatory authorities shall publish transparent and efficient procedures for non-discriminatory connection of new production installations of renewable gases.


### operating , maintaining and developing under economic conditions a secure and reliable infrastructure for hydrogen transport or storage with due regard to the environment , in close cooperation with connected and neighbouring hydrogen network operators; ### operating , maintaining and developing under economic conditions a secure and reliable infrastructure for hydrogen transport or storage with due regard to the environment , including maximum hydrogen leakages rates , in close cooperation with connected and neighbouring hydrogen network operators and based on national net zero infrastructure planning ;


### ensuring the long-term ability of the hydrogen system to meet reasonable demands for the transport and storage of hydrogen; ### ensuring the long-term ability of the hydrogen system to meet identified reasonable demands for the transport and storage of hydrogen in the national net zero infrastructure planning;


### taking all reasonable measures available to prevent and minimise hydrogen emissions in their operations and carrying out , at regular intervals , a hydrogen leak detection and repair survey of all relevant components under the operator responsibility; ### taking all necessary measures available to prevent and minimise hydrogen emissions in their operations and carrying out , at regular intervals , a hydrogen leak detection and repair survey of all relevant components under the operator responsibility;


### submitting a hydrogen leak detection report and , where necessary , a repair or replacement programme to the competent authorities; ### submitting a hydrogen leak detection report and , where necessary , a repair or replacement programme to the competent authorities;


### 2. each hydrogen network operator shall build sufficient cross-border capacity to integrate european hydrogen infrastructure accommodating all economically reasonable and technically feasible demands for capacity and taking into account security of hydrogen supply. ### 2. each hydrogen network operator shall build cross-border capacity based on an eu wide net zero infrastructure network plan.


### article 47 ### deleted


### geographically confined hydrogen networks ### closed transport system of hydrogen


### 1. member states may provide for regulatory authorities to grant a derogation from article 62 for hydrogen networks which transport hydrogen from one entry point to a limited number of exit points within a geographically confined , industrial or commercial area.. ### deleted


### 2. the derogations under paragraph 1 shall apply at least until 31 december 2030. as from 1 january 2031 , the derogation shall expire when one of the conditions below is fulfilled: ### deleted


### 3. such intergovernmental agreement may contain , as appropriate , rules specifying the implementation of the requirements of third-party access , tariff regulation and on the unbundling of the operator of the hydrogen interconnector , as well as rules on the certification of renewable and low-carbon hydrogen , including rules ensuring the collection of required data and the application of the criteria for accounting hydrogen produced from electricity as renewable hydrogen. ### 3. such intergovernmental agreement shall contain rules specifying the implementation of the requirements of third-party access , tariff regulation and on the unbundling of the operator of the hydrogen interconnector , as well as rules on the certification of renewable and hydrogen , including rules ensuring the collection of required data and the application of the criteria for accounting hydrogen produced from electricity as renewable hydrogen.


### network development and powers to make investment decisions ### integrated net zero infrastructure planning , network development and powers to make investment decisions


### 1. at least every two years , all transmission system operators shall submit to the relevant regulatory authority a ten-year network development plan based on existing and forecast supply and demand after having consulted all relevant stakeholders. there shall be at least one single network development plan per member state. infrastructure operators , including lng terminal operators , storage operators , distribution system operators as well as hydrogen , district heating infrastructure and electricity operators shall be required to provide and exchange all relevant information to the transmission system operators required for developing the single plan. that network development plan shall contain efficient measures in order to guarantee the adequacy of the natural gas system and the security of supply , in particular the compliance with the infrastructure standards under regulation (eu) 2017/1938. the ten-year network development plan shall be published and accessible on a website . ### 1. national regulators shall develop in time for the update of the national energy and climate plans as per governance regulation 2018/1999 integrated net zero infrastructure development plans covering at least electricity , natural gas , heat and hydrogen. those net zero infrastructure plans shall cover the time period to 2050 and be aligned with decarbonisation pathways and milestones at eu and national level. there shall be at least one single net zero infrastructure plan per member state. infrastructure operators , including lng terminal operators , storage operators , transmission system operators , distribution system operators as well as hydrogen , district heating infrastructure and electricity operators and municipalities shall be required to provide and exchange all relevant information for developing the single plan. the net zero infrastructure plan , and the information which the regulator considered in developing the net zero infrastructure plan , shall be published and accessible on a website. the net zero development plans shall replace ten years network development plans developed by transmission system operators.


### 2. the ten-year network development plan shall , in particular: ### 2. the net zero infrastructure plan shall , in particular:


### contain the main infrastructure that needs to be built or upgraded over the next ten years; ### contain the main infrastructure that needs to be built , upgraded or decommissioned , and the main flexibility solutions that need to be implemented , between the date of the plan and 2030 , and 2050 , consistent with the energy efficiency first principle (as applied in article 2 , point 18 of regulation (eu)2018/1999 , [article x , point x of the new energy efficiency directive] , and commission recommendation of 28.09/2021 on energy efficiency first com (2021)7014 final) and with energy system integration (as applied in commission communication com (2020) 299 final and the european parliament resolution of 19 may 2021 on a european strategy for energy system integration (2020/2241(ini));


### contain all the investments already decided and identify new investments which have to be executed in the next three years; ### incorporate and ensure the achievement of the 2035 fossil gas phase-out date under article 1 ,paragraph 1a , and the sector-specific gas switch dates and pathways developed by the member state under article 11a;


### include information on infrastructure that can or will be decommissioned; and ### take full account of the distribution system plans under article 40a and be consistent with such plans (including as may be amended by the regulator);


### provide for a time frame for all investment and decommissioning projects; ### provide for a time frame for all investment and decommissioning projects and flexibility solutions;


### be based on a joint scenario framework developed between the relevant infrastructure operators , including relevant distribution system operators , of at least gas and electricity; ### be based on a joint scenario framework and modelling for electricity , gas , heat , and hydrogen , which are based on the latest scientific evidence , incorporate reasonable assumptions for the evolution of production , consumption and trade , and are developed with input from all relevant stakeholders;


### be in line with the integrated national energy and climate plan and its updates , and with the integrated national energy climate reports submitted in accordance with regulation (eu) 2018/1999 and support the climate-neutrality objective set out in article 2(1) , of regulation (eu) 2021/1119. ### be integrated into the update of the national energy climate reports due by 30 june 2024 in accordance with regulation (eu) 2018/1999 and support the climate-neutrality objective set out in article 2(1) , of regulation(eu) 2021/1119;


### 3. when elaborating the ten-year network development plan , the transmission system operator shall fully take into account the potential for alternatives to system expansion , for instance the use of demand response , as well as expected consumption following the application of the energy efficiency first principle , trade with other countries and the union-wide network development plan. the transmission system operator shall assess how to address , where possible , a need across electricity and gases systems including information on the optimal location and size of energy storage and power to gas assets . ### 3. when elaborating the net zero infrastructure plan , the regulator shall fully take into account the potential for alternatives to system expansion , for instance the use of electrification of low temperature heat applications , alternative transport modes to pipelines , demand response , shifting of demand , all energy saving measures in industry with payback times lower than 8 years as well as expected consumption following the application of the energy efficiency first principle , trade with other countries and the union-wide network development plan. the regulator shall assess how to address , where possible , a need across electricity , hydrogen , heat and gases systems including information on the optimal location and size of energy storage and power to gas assets and planning for colocation of future production and use sites.


### 4. the regulatory authority shall consult all actual or potential system users on the ten-year network development plan in an open and transparent manner. persons or undertakings claiming to be potential system users may be required to substantiate such claims. the regulatory authority shall publish the result of the consultation process , in particular possible needs for investments. ### 4. the regulatory authority shall consult all actual or potential system users and all relevant stakeholders on the net zero infrastructure plan in an open and transparent manner. the regulatory authority shall publish the result of the consultation process , including possible needs for investments , decommissioning of assets , and flexibility interventions. when engaging in the consultation , the regulatory authority shall abide by at least the public participation and transparency requirements applicable to plans and programmes under regulation(ec) no 1367/2006. the following shall also apply:


### 5. the regulatory authority shall examine whether the ten-year network development plan covers all investment needs identified during the consultation process , and whether it is consistent with the most recent union wide simulation of disruption scenarios carried out by the entso for gas under article 7 of regulation (eu) 2017/1938 , with the regional and national risk assessments and the non-binding union -wide ten-year network development plan ( union -wide network development plan) referred to in article 30(1) , point (b) , of regulation (eu) 2019/943 . if any doubt arises as to the consistency with the union -wide network development plan , the regulatory authority shall consult acer . the regulatory authority may require the transmission system operator to amend its ten-year network development plan. ### 5. the agency shall ensure comparability and consistency of national net zero infrastructure plans across member states. the system operators shall use the national net zero infrastructure plan as a basis for their duties.


### the competent national authorities shall examine the consistency of the ten-year network development plan with the national energy and climate plan and its updates and with the integrated national energy climate reports submitted in accordance with regulation (eu) 2018/1999. ### deleted


### 6. the regulatory authority shall monitor and evaluate the implementation of the ten-year network development plan. ### 6. the regulatory authority shall revise the net zero infrastructure plan every 2 years


### 7. in circumstances where the independent system operator or independent transmission operator , other than for overriding reasons beyond its control , does not execute an investment , which , under the ten-year network development plan , was to be executed in the following three years , member states shall ensure that the regulatory authority is required to take at least one of the following measures to ensure that the investment in question is made if such investment is still relevant on the basis of the most recent ten-year network development plan: ### 7. in circumstances where the system operator , other than for overriding reasons beyond its control , does not execute an investment or decommissioning , which , under the net zero infrastructure plan , was to be executed in the following three years , member states shall ensure that the regulatory authority is required to take at least one of the following measures to ensure that the investment in question is made if such investment is still relevant on the basis of the most recent ten-year network development plan:


### to require the transmission system operator to execute the investments in question; ### to require the system operator to execute the investments in question;


### to oblige the transmission system operator to accept a capital increase to finance the necessary investments and allow independent investors to participate in the capital. ### to oblige the system operator to accept a capital increase to finance the necessary investments and allow independent investors to participate in the capital.


### where the regulatory authority has made use of its powers under point (b) the first subparagraph , it may oblige the transmission system operator to agree to one or more of the following: ### where the regulatory authority has made use of its powers under point (b) the first subparagraph , it may oblige the system operator to agree to one or more of the following:


### construction by any third party; ### construction or decommissioning by any third party;


### the transmission system operator shall provide the investors with all information needed to realise the investment , shall connect new assets to the transmission network and shall generally make its best efforts to facilitate the implementation of the investment project. ### the system operator shall provide the investors with all information needed to realise the investment , shall connect new assets to the transmission network and shall generally make its best efforts to facilitate the implementation of the investment project.


### article 52 ### deleted


### financing cross-border hydrogen infrastructure ### financing hydrogen infrastructure , including cross-border ones


### 4. until 31 december 2030 , member state may designate an integrated hydrogen network operator unbundled in accordance with the rules on independent transmission operators for natural gas set out in section 3 of chapter ix. such designation shall expire by 31 december 2030 at the latest. ### deleted


### where a hydrogen network operator is part of an undertaking active in transmission or distribution of natural gas or electricity , it shall be independent at least in terms of its legal form. ### 1. member states shall ensure that from [entry of transposition period +1 year]: