### the council should lift measures with suspensive effect on a proposal from the commission , if the situation leading to the imposition of those measures has been sufficiently remedied . ### the commission should lift measures with suspensive effect and send a proposal to the european parliament and the council to lift in full or in part the budgetary reserve of the measures in question , if the situation leading to the imposition of those measures has been sufficiently remedied .


### where the commission considers that the generalised deficiency as regards the rule of law is established , it shall submit a proposal for an implementing act on the appropriate measures to the council . ### where the commission considers that the generalised deficiency as regards the union values is established , it shall adopt a decision on the appropriate measures by means of an implementing act .


### where the commission considers that the generalised deficiency as regards the rule of law is established , it shall submit a proposal for an implementing act on the appropriate measures to the council . ### where the commission considers that the generalised deficiency as regards the rule of law is established , it shall adopt a decision on the appropriate measures by means of an implementing act .


### ' the rule of law ' refers to the union value enshrined in article 2 of the treaty on european union which includes the principles of legality , implying a transparent , accountable , democratic and pluralistic process for enacting laws ; legal certainty ; prohibition of arbitrariness of the executive powers ; effective judicial protection by independent courts , including of fundamental rights ; separation of powers and equality before the law ; ### ' the rule of law ' shall be understood having regard&#160 ; to the union values enshrined in article 2 of the treaty on european union and the membership criteria ; it includes the principles of equality , &#160 ; implying a transparent , accountable , democratic and pluralistic process for enacting laws ; legal certainty ; prohibition of arbitrariness of the executive powers ; effective judicial protection by independent courts , including of fundamental rights ; separation of powers and equality before the law ;


### the commission may require the stecf to assess the joint recommendations referred to in paragraph 5 . ### the commission shall require the stecf to assess the joint recommendations referred to in paragraph 5 .


### ensure that bycatches of marine mammals , marine reptiles , seabirds and other non - commercially exploited species do not exceed levels provided for in union legislation and international agreements . ### ensure that bycatches of marine mammals , marine reptiles , seabirds and other non - commercially exploited species are progressively and gradually eliminated .


### fostering the integrated social , economic and environmental local development , cultural heritage and security , including for rural and coastal areas also through community - led local development . ### fostering the integrated social , economic and environmental local development , cultural heritage and social infrastructure , including for rural and coastal areas also through community - led local development .


### fostering the integrated social , economic and environmental development , cultural heritage and security in urban areas ; ### fostering the integrated social , economic and environmental development , cultural heritage and social infrastructure in urban areas ;


### investments in access to services ; ### investments in access to services with a particular focus on disadvantaged , marginalised and segregated social groups ;


### ‘ active customer’ means a customer or a group of jointly acting customers who consume , store or sell electricity generated on their premises , including through aggregators , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ; ### ‘ active customer’ means a final customer or a group of jointly acting final customers who consume , store or generated electricity on their premises and sell surplus electricity , including through aggregators or suppliers or traders , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ;


### distributed energy technologies and consumer empowerment have made community energy and energy cooperatives an effective and cost - efficient way to meet citizens ' needs and expectations regarding energy sources , services and local participation . community energy offers an inclusive option for all consumers to have a direct stake in producing , consuming or sharing energy between each other within a geographically confined community network that may operate in an isolated mode or be connected to the public distribution network . community energy initiatives focus primarily on providing affordable energy of a specific kind , such as renewable energy , for their members or shareholders rather than prioritising profit - making like a traditional energy company . by directly engaging with consumers community energy initiatives are demonstrating their potential in facilitating the up - take of new technologies and consumption patterns , including smart distribution grids and demand response , in an integrated manner . community energy can also advance energy efficiency at household level and help fight energy poverty through reduced consumption and lower supply tariffs . community energy also enables certain groups of household consumers to participate in the energy market who otherwise might not have been able to do so . where they have been successfully operated such initiatives have delivered economic , social and environmental value to the community that goes beyond the mere benefits derived from the provision of energy services . local energy communities should be allowed to operate on the market on a level - playing field without distorting competition . household consumers should be allowed to voluntarily participate in a community energy initiative as well as to leave it , without losing access to the network operated by the community energy initiative or their rights as consumers . access to a local energy community ' s network should be granted on fair and cost - reflective terms . ### distributed energy technologies and consumer empowerment have made community energy and energy cooperatives an effective and cost - efficient way to meet citizens ' needs and expectations regarding energy sources , services and local participation . community energy initiatives , or local energy communities , focus primarily on empowering citizens , local authorities and small and medium enterprises , as final consumers , to come together to jointly control , in a democratic way , local energy businesses aimed to provide local environmental , economic and social community benefits . energy communities provide affordable energy of a specific kind such as renewable energy , for their members or shareholders , or to alleviate problems concerning a decreasing standard of living or to strengthen community interaction , rather than prioritising profit - making like a traditional energy company . by directly engaging with consumers community energy initiatives are demonstrating their potential in facilitating the up - take of new technologies and consumption patterns , including smart distribution grids and demand response , in an integrated manner . community energy can also advance energy efficiency at household level and help fight energy poverty through reduced consumption , lower supply tariffs , and means to invest in energy performance renovations . community energy also enables certain groups of household consumers to participate in the energy market who otherwise might not have been able to do so , including through virtual net metering . where they have been successfully operated such initiatives have delivered economic , social and environmental value to the community that goes beyond the mere benefits derived from the provision of energy services . household consumers should be allowed to voluntarily participate in a community energy initiative while maintaining all their rights as a consumer , including their right to choice and to a good quality of supply . individuals should be able to leave a local energy community without losing access to the network operated by the community energy initiative or their rights as consumers .


### member states may allow distribution system operators to own , develop , manage or operate recharging points for electric vehicles only if the following conditions are fulfilled : ### member states may allow distribution system operators to own , develop , manage or operate recharging points for electric vehicles if the following conditions are fulfilled :


### helping to ensure , together with other relevant authorities , that the consumer protection measures are effective and enforced ; ### helping to ensure , together with other relevant authorities , that the new and existing consumer protection measures , including rights of active consumers , are effective and enforced ;


### member states shall require that information and estimates for electricity costs are provided to final customers on demand in a timely manner and in an easily understandable format . ### member states shall require that information and estimates for electricity costs are provided to final customers on demand in a timely manner and in an easily understandable format . if the contract includes a future change of product or price or a discount , this should be indicated on the bill together with the date when the change takes place .


### member states shall ensure that . customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive . where the costumer is a consumer within the meaning of directive 2013 / 11 / eu of the european parliament and of the council46 , such out - of - court mechanisms shall comply with the quality requirements established in directive 2013 / 11 / eu and provide , where warranted , for a system of reimbursement and / or compensation . __________________ 46 oj l 165 , 18 . 6 . 2013 , p . 63–79 ### member states shall ensure that customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive through an independent mechanism such as an energy ombudsman or a consumer body is in place to ensure efficient treatment of complaints and out of court dispute settlements . those mechanisms shall be able to address all consumer complaints , in particular household costumers in the energy market , including on bundled offers , new products and services providers such as aggregators and local energy communities . where the customer is an active consumer or consumer within the meaning of directive 2013 / 11 / eu of the european parliament and of the council [ 1 ] , such out - of - court mechanisms shall comply with the quality requirements established in directive 2013 / 11 / eu and provide , where warranted , for a system of reimbursement and / or compensation defined by the regulator and the ombudsman or consumer body . those mechanisms shall be extended to all energy service providers and all contracts with energy components , including bundled offers and contracts with aggregators and local energy communities . __________________ 46 oj l 165 , 18 . 6 . 2013 , p . 63–79


### helping to ensure , together with other relevant authorities , that the consumer protection measures are effective and enforced ; ### helping to ensure , together with other relevant authorities , that the new and existing consumer protection measures , including rights of active customers , are effective and enforced ;


### - the means by which up - to - date information on all applicable tariffs and maintenance charges may be obtained , ### - the means by which up - to - date information on all applicable tariffs , maintenance charges and additional products and / or services maybe obtained


### member states may require the comparison tools referred to in paragraph 1 to include comparative determinants relating to the nature of the services offered by the suppliers . ### member states shall require the comparison tools referred to in paragraph 1 to include comparative determinants relating to the nature of the type of energy provided and the services offered by the suppliers as set out in annex i .


### ' independent aggregator ' means an aggregator that is not affiliated to a supplier or any other market participant ; ### ' independent aggregator ' means an aggregator that is not affiliated to the supplier of the customer .


### distribution system operators shall define standardised market products for the services procured ensuring effective participation of all market participants including renewable energy sources , demand response , and aggregators . distribution system operators shall exchange all necessary information and coordinate with transmission system operators in order to ensure the optimal utilisation of resources , ensure the secure and efficient operation of the system and facilitate market development . distribution system operators shall be adequately remunerated for the procurement of such services in order to recover at least the corresponding expenses , including the necessary information and communication technologies expenses , including expenses which correspond to the necessary information and communication infrastructure . ### standardised market products for such services shall be defined at least at the national level . distribution system operators shall , in a transparent and participatory process that includes all potential system users , the national regulator and the transmission system operator , define standardised market products for the services procured ensuring effective participation of all market participants including renewable energy sources , demand response , storage aggregators and local energy communities . distribution system operators shall define such products based on the needs in their respective control areas and take into account the specific capabilities of distributed energy resources . the products shall be defined at least 18 months after the transposition of the directive . distribution system operators shall exchange all necessary information and coordinate with transmission system operators in order to ensure the optimal utilisation of resources , ensure the secure and efficient operation of the system and facilitate market development . distribution system operators shall be adequately remunerated for the procurement of such services in order to recover at least the corresponding expenses , including the necessary information and communication technologies expenses , including expenses which correspond to the necessary information and communication infrastructure .


### monitoring the level and effectiveness of market opening and competition at wholesale and retail levels , including on electricity exchanges , prices for household customers including prepayment systems , switching rates , disconnection rates , charges for and the execution of maintenance services , and complaints by household customers , as well as any distortion or restriction of competition , including providing any relevant information , and bringing any relevant cases to the relevant competition authorities ; ### actively monitoring the level and effectiveness of market opening and competition at wholesale and retail levels , including on electricity exchanges , prices for household customers including prepayment systems , and dynamic price contracts , price spikes and their impact on retail and consumer prices , switching rates , including collective switching , disconnection rates , charges for and the execution of maintenance services , number of final customers in contracts with aggregators , barriers to the exercise of the activities listed in article 15 , and acting on complaints by household customers , as well as any distortion or restriction of competition , including providing any relevant information , and bringing any relevant cases to the relevant competition or consumer authorities ; share of energy efficiency measures implemented as a priority in households affected by energy poverty and in social housing ;


### member states shall define a set of criteria for the purposes of measuring energy poverty . member states shall continuously monitor the number of households in energy poverty and shall report on the evolution of energy poverty and measures taken to prevent it to the commission every two years as part of their integrated national energy and climate progress reports in accordance with article 21 of [ governance regulation as proposed by com759 ] . ### member states shall define a set of criteria for the purposes of measuring energy poverty analyse if household customers are sufficiently protected and modify protections where needed and shall continuously monitor the number of households in energy poverty and shall report on the evolution of energy poverty and measures taken to prevent it to the commission every two years as part of their integrated national energy and climate progress reports in accordance with article 21 of [ governance regulation as proposed by com759 ] .


### after [ op – insert the date – five years from the entry into force of this directive ] , member states may still apply public interventions in the price - setting for the supply of electricity for vulnerable household customers in so far as it is strictly necessary for reasons of extreme urgency . such interventions shall comply with the conditions set out in paragraph 3 . ### after [ op – insert the date – five years from the entry into force of this directive ] , member states may still apply public interventions in the price - setting for the supply of electricity for vulnerable household customers , provided it is strictly necessary for reasons of extreme urgency and the support takes form of social tariffs to be offered by energy companies . beyond , member states shall empower households affected by energy poverty and in social housing by promoting tailored energy efficiency programmes as well as access to affordable renewable energy . in accordance with article 27 of this directive , member states may further appoint a supplier of last resort . such interventions shall comply with the conditions set out in paragraph 3 .


### member states shall ensure that customers have access , free of charge , to at least one tool comparing the offers of suppliers that meets the certification criteria set out in annex i . the comparison tools may be operated by any entity , including private companies and public authorities or bodies . customers should be informed of the availability of such tools . ### member states shall ensure that customers have access , free of charge , to at least one tool comparing the offers of suppliers that meets at least the certification criteria set out in annex i . the comparison tools may be operated by any entity , including private companies and public authorities or bodies . customers should be informed of the availability of such tools .


### where relevant system users that are not shareholders or members of the local energy community connected to the distribution network operated by a local energy community shall be subject to fair and cost - reflective network charges . if such system users and local energy communities cannot reach an agreement on network charges , both parties may request the regulatory authority to determine the level of network charges in a relevant decision ; ### where relevant system users that are not shareholders or members of the local energy community responsible for the community network connected to the distribution network shall be subject to fair , non - discriminatory and cost - reflective network charges . if such system users and local energy communities cannot reach an agreement on network charges , both parties may request the regulatory authority to determine the level of network charges in a relevant decision ;


### receive a final closure account following any change of electricity supplier no later than six weeks after the change of supplier has taken place . ### receive a final closure account following any change of electricity supplier no later than two weeks after the change of supplier has taken place .


### ensuring that customers benefit through the efficient functioning of their national market , promoting effective competition and helping to ensure consumer protection ; ### ensuring that customers benefit through the efficient functioning of their national market and their participation therein is not restricted , promoting effective competition and to guarantee consumer protection in close cooperation with relevant consumer protection authorities ;


### distributed energy technologies and consumer empowerment have made community energy and energy cooperatives an effective and cost - efficient way to meet citizens ' needs and expectations regarding energy sources , services and local participation . community energy offers an inclusive option for all consumers to have a direct stake in producing , consuming or sharing energy between each other within a geographically confined community network that may operate in an isolated mode or be connected to the public distribution network . community energy initiatives focus primarily on providing affordable energy of a specific kind , such as renewable energy , for their members or shareholders rather than prioritising profit - making like a traditional energy company . by directly engaging with consumers community energy initiatives are demonstrating their potential in facilitating the up - take of new technologies and consumption patterns , including smart distribution grids and demand response , in an integrated manner . community energy can also advance energy efficiency at household level and help fight energy poverty through reduced consumption and lower supply tariffs . community energy also enables certain groups of household consumers to participate in the energy market who otherwise might not have been able to do so . where they have been successfully operated such initiatives have delivered economic , social and environmental value to the community that goes beyond the mere benefits derived from the provision of energy services . local energy communities should be allowed to operate on the market on a level - playing field without distorting competition . household consumers should be allowed to voluntarily participate in a community energy initiative as well as to leave it , without losing access to the network operated by the community energy initiative or their rights as consumers . access to a local energy community ' s network should be granted on fair and cost - reflective terms . ### distributed energy technologies and consumer empowerment have made community energy and energy cooperatives an effective and cost - efficient way to meet citizens ' needs and expectations regarding energy sources , services and local participation . community energy initiatives , or local energy communities , focus primarily on providing affordable energy of a specific kind , such as renewable energy , for their members or shareholders , or to alleviate problems concerning a decreasing standard of living or to strengthen community interaction , rather than prioritising profit - making like a traditional energy company . by directly engaging with consumers community energy initiatives are demonstrating their potential in facilitating the up - take of new technologies and consumption patterns , including smart distribution grids and demand response , in an integrated manner . community energy can also advance energy efficiency at household level and help fight energy poverty through reduced consumption and lower supply tariffs . community energy also enables certain groups of household consumers to participate in the energy market who otherwise might not have been able to do so . where they have been successfully operated such initiatives have delivered economic , social and environmental value to the community that goes beyond the mere benefits derived from the provision of energy services . local energy communities should be allowed to operate on the market on a level - playing field without distorting competition . household consumers should be allowed to voluntarily participate in a community energy initiative while maintaining all their rights as a consumer , including their right to choice and to a good quality of supply . individuals should be able to leave a local energy community , without losing access to the network operated by the community energy initiative or their rights as consumers .


### - the means by which up - to - date information on all applicable tariffs and maintenance charges may be obtained , ### - the means by which up - to - date information on all applicable tariffs , maintenance charges and additional products and / or services may be obtained ,


### member states shall ensure that their regulatory framework encourages the participation of aggregators in the retail market and that it contains at least the following elements : ### member states shall ensure that their regulatory framework encourages the participation of aggregators in all markets and that it contains at least the following elements :


### are entitled to generate , store , consume and sell self - generated electricity in all organised markets either individually or through aggregators without being subject to disproportionately burdensome procedures and charges that are not cost reflective ; ### are entitled to generate , store , consume , sell with priority access self - generated electricity in all organised markets either individually or through aggregators , as well as to participate in the ancillary services of the system and in the mechanisms of response to the demand , without being subject to discriminatory or disproportionately burdensome procedures and charges that are not cost reflective , and are entitled to receive a remuneration for self - generated electricity which reflects the market value of the electricity fed in ;


### the energy installation required for the activities of the active customer may be managed by a third party for installation , operation , including metering and maintenance . ### the energy installation required for the activities of the active customer may be managed or owned by a third party subject to instructions of the active customer for installation , operation , including metering and maintenance .


### . member states shall take appropriate measures to protect customers and shall , in particular , ensure that there are adequate safeguards to protect vulnerable customers . in this context , each member state shall define the concept of vulnerable customers which may refer to energy poverty and , inter alia , to the prohibition of disconnection of electricity to such customers in critical times . member states shall ensure that rights and obligations linked to vulnerable customers are applied . in particular , they shall take measures to protect customers in remote areas . they shall ensure high levels of consumer protection , particularly with respect to transparency regarding contractual terms and conditions , general information and dispute settlement mechanisms . ### member states shall take appropriate measures to protect customers and shall , in particular , ensure that there are adequate safeguards to protect vulnerable household customers . in this context , the concept of vulnerable customers which may refer to energy poverty shall herewith be defined as : ' the inability of a household to maintain an adequate energy supply so as to guarantee basic levels of comfort and health , owing to a combination of low income , high energy prices and low quality housing stock . ' member states shall ensure that rights and obligations linked to vulnerable customers are applied , in particular the prohibition of disconnection of electricity to such customers in critical times , as during cold spells or heat waves , and to receive supply from a supplier of last resort in accordance with article 27 . further , member states shall take measures to protect customers in remote areas . they shall ensure high levels of consumer protection , particularly with respect to transparency regarding contractual terms and conditions , general information and dispute settlement mechanisms . disconnection shall be prohibited until the dispute between the supplier and the customer is settled .


### member states shall ensure that . customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive . where the costumer is a consumer within the meaning of directive 2013 / 11 / eu of the european parliamend and of the council46 , such out - of - court mechanisms shall comply with the quality requirements established in directive 2013 / 11 / eu and provide , where warranted , for a system of reimbursement and / or compensation . __________________ 46 oj l 165 , 18 . 6 . 2013 , p . 63–79 ### member states shall ensure that customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive through an independent mechanism such as an energy ombudsman or a consumer body .


### by way of derogation from paragraph 2 , member states may choose to permit suppliers to charge contract termination fees to customers willingly terminating fixed term supply contracts before their maturity . such fees may only be charged if customers receive a demonstrable advantage from these contracts . in addition , such fees shall not exceed the direct economic loss to the supplier of the customer terminating the contract , including the cost of any bundled investments or services already provided to the customer as part of the contract . ### by way of derogation from paragraph 2 , member states may choose to permit suppliers to charge contract termination fees to customers willingly terminating fixed term fixed price supply contracts before their maturity . such fees may only be charged if customers receive a demonstrable advantage from these contracts . in addition , such fees shall be proportionate to the advantage provided to the customer and shall not exceed the direct economic loss to the supplier of the customer terminating the contract , including the cost of any bundled investments or services already provided to the customer as part of the contract . the burden of proof of the direct economic loss shall always be on the supplier and monitored by the national regulatory authority .


### member states shall ensure that customers have access , free of charge , to at least one tool comparing the offers of suppliers that meets the certification criteria set out in annex i . the comparison tools may be operated by any entity , including private companies and public authorities or bodies . customers should be informed of the availability of such tools . ### member states shall ensure that customers have access , free of charge , to at least one tool comparing the offers of suppliers that meets at least the certification criteria set out in annex i . the comparison tools may be operated by any entity , including private companies and public authorities or bodies and shall cover the whole market for electricity services . the comparison tools shall allow for the comparison of bundled services and shall also display offers by aggregators . customers should be informed of the availability of such tools and shall be able to easily compare their current contract with offers on the market .


### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , regulatory authorities shall make available to market parties the detailed methodology and underlying costs used for the calculation of the relevant network tariffs . ### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , regulatory authorities shall publish in an accessible manner for all citizens and market parties the detailed methodology and underlying assumptions used for the calculation of the relevant network tariffs , which shall include a cost benefit analysis for distributed energy resources . this analysis shall ensure that network tariffs reflect the benefits deriving from the integration of final customers’ activities in the grid , and that the tariffs are not set at a level that unduly hampers the development of such activities .


### any tool comparing the offers of suppliers shall be eligible to apply for certification in accordance with this article on a voluntary and non - discriminatory basis . ### any tool comparing the offers of suppliers and aggregators shall be eligible to apply for certification in accordance with this article on and non - discriminatory basis .


### the development of a distribution system shall be based on a transparent network development plan that distribution system operators shall submit every two years to the regulatory authority . the network development plan shall contain the planned investments for the next five to ten years , with particular emphasis on the main distribution infrastructure which is required in order to connect new generation capacity and new loads including re - charging points for electric vehicles . the network development plan shall also demonstrate the use of demand response , energy efficiency , energy storage facilities or other resources that distribution system operator is using as an alternative to system expansion . ### the development of a distribution system shall be based on a transparent network development plan that distribution system operators shall submit every two years to the regulatory authority . in developing the network development plan , the distribution system operator shall involve , including through consultation , all current or potential system users . the network development plan shall contain the planned investments for the next five to ten years , with particular emphasis on the main distribution infrastructure taking into account the service procurement of energy efficiency , demand response and storage , which is required in order to connect new generation capacity and new loads including re - charging points for electric vehicles . the network development plan shall therefore demonstrate the use of demand response , energy efficiency , energy storage facilities or other distributed energy resources that distribution system operator is using as an alternative to system expansion including how it is implementing an efficiency first approach . in addition , the network development plan shall include specific measures for how distribution system operators intend to engage and provide transparency for active consumers and local energy communities that want to access the network .


### distribution system operators shall define standardised market products for the services procured ensuring effective participation of all market participants including renewable energy sources , demand response , and aggregators . distribution system operators shall exchange all necessary information and coordinate with transmission system operators in order to ensure the optimal utilisation of resources , ensure the secure and efficient operation of the system and facilitate market development . distribution system operators shall be adequately remunerated for the procurement of such services in order to recover at least the corresponding expenses , including the necessary information and communication technologies expenses , including expenses which correspond to the necessary information and communication infrastructure . ### standardised market products for such services shall be defined at least at the national level . distribution system operators shall , in a transparent and participatory process that includes all potential system users , the national regulator and the transmission system operator , define standardised market products for the services procured ensuring effective participation of all market participants including renewable energy sources , demand response , storage aggregators and local energy communities . distribution system operators shall define such products based on the needs in their respective control areas and take into account the specific capabilities of distributed energy resources . the products shall be defined at least 18 months after the transposition of the directive . distribution system operators shall exchange all necessary information and coordinate with transmission system operators in order to ensure the optimal utilisation of resources , ensure the secure and efficient operation of the system and facilitate market development . distribution system operators shall be adequately remunerated for the procurement of such services in order to recover at least the corresponding expenses , including the necessary information and communication technologies expenses , including expenses which correspond to the necessary information and communication infrastructure .


### this directive establishes common rules for the generation , transmission , distribution , storage and supply of electricity , together with consumer protection provisions , with a view to creating truly integrated competitive , consumer - centered and flexible electricity markets in the union . using the advantages of an integrated market , the directive aims at ensuring affordable energy prices for consumers , a high degree of security of supply and a smooth transition towards a decarbonised energy system . it lays down key rules relating to the organisation and functioning of the european electricity sector , in particular rules on consumer empowerment and protection , on open access to the integrated market , on third party access to transmission and distribution infrastructure , unbundling rules , and on independent national energy regulators . . ### this directive establishes common rules for the generation , transmission , distribution , storage and supply of electricity , together with consumer protection provisions , with a view to creating truly integrated competitive , renewables ready , consumer - centered and flexible electricity markets in the union . using the advantages of an integrated market , the directive aims at ensuring affordable , transparent energy costs for consumers , a high degree of security of supply and a smooth transition towards a highly energy efficient and fully renewables - based energy system . it lays down key rules relating to the organisation and functioning of the european electricity sector , in particular rules on consumer empowerment and protection , on open access to the integrated market , on third party access to transmission and distribution infrastructure , unbundling rules , and on independent national energy regulators . consumer interests shall be at the heart of this directive and quality of service shall be a central responsibility of electricity undertakings . existing rights of consumers need to be strengthened and guaranteed , and shall include greater transparency . consumer protection shall ensure that all consumers in the wider remit of the community benefit from a competitive market . consumer rights shall be enforced by member states or , where a member state has so provided , the regulatory authorities .


### ‘ active customer’ means a customer or a group of jointly acting customers who consume , store or sell electricity generated on their premises , including through aggregators , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ; ### ‘ active customer’ means a final customer or a group of jointly acting final customers who consume , store or generated electricity on their premises and sell surplus electricity , including through aggregators or suppliers or traders , or participate in demand response or energy efficiency schemes provided that these activities do not constitute their primary commercial or professional activity ;


### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , regulatory authorities shall make available to market parties the detailed methodology and underlying costs used for the calculation of the relevant network tariffs . ### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , national regulatory authorities shall make available to market parties the detailed methodology and underlying assumptions used for the calculation of the relevant network tariffs , which shall include a cost benefit analysis for distributed energy resources , including an assessment of their potential value to the grid and the contribution to other energy policy objectives , in particular those provided by active customers and local energy communities .


### when elaborating the ten - year network development plan , the transmission system operator shall make reasonable assumptions about the evolution of the generation , supply , energy storage , consumption and exchanges with other countries , taking into account investment plans for regional and union - wide networks . ### when elaborating the ten - year network development plan , the transmission system operator shall make reasonable assumptions about the evolution of the generation , supply , energy storage , demand response , consumption and exchanges with other countries , taking into account investment plans for regional and union - wide networks .


### monitoring the level and effectiveness of market opening and competition at wholesale and retail levels , including on electricity exchanges , prices for household customers including prepayment systems , switching rates , disconnection rates , charges for and the execution of maintenance services , and complaints by household customers , as well as any distortion or restriction of competition , including providing any relevant information , and bringing any relevant cases to the relevant competition authorities ; ### actively monitoring the level and effectiveness of market opening and competition at wholesale and retail levels , including on electricity exchanges , prices for household customers including prepayment systems , and dynamic price contracts , price spikes and their impact on retail and consumer prices , switching rates , including collective switching , disconnection rates , charges for and the execution of maintenance services , number of final customers in contracts with aggregators , barriers to the exercise of the activities listed in article 15 , and acting on complaints by household customers , as well as any distortion or restriction of competition , including providing any relevant information , and bringing any relevant cases to the relevant competition or consumer authorities ; share of energy efficiency measures implemented as a priority in households affected by energy poverty and in social housing ;


### provisions of chapter iv apply to local energy communities that perform activities of a distribution system operator ; ### where a local energy community performs activities of a distribution system operator , including of a physical community network , provisions of chapter iv apply .


### are entitled to generate , store , consume and sell self - generated electricity in all organised markets either individually or through aggregators without being subject to disproportionately burdensome procedures and charges that are not cost reflective ; ### generate , store and consume electricity without using the public grid and sell self - generated electricity in all organised markets , including but not limited to wholesale energy markets , ancillary services markets , capacity mechanisms and retail energy markets , either individually or collectively through aggregators or power purchase agreements , or participate in demand response or energy efficiency schemes without being subject to discriminatory or disproportionate burdensome procedures , obligations and charges .


### member states shall ensure that their national legislation does not unduly hamper cross - border flows of electricity , consumer participation including through demand&#8211 ; side response , investments into flexible energy generation , energy storage , the deployment of electro - mobility or new interconnectors , and that electricity prices reflect actual demand and supply . ### member states shall ensure that their national legislation promotes a renewables ready market , does not unduly hamper cross - border flows of electricity , consumer participation including through demand&#8211 ; side response , investments into flexible energy generation , energy storage , the deployment of electro - mobility or new interconnectors , and that electricity prices reflect actual demand and supply and the full life cycle cost of the different generators .


### where relevant system users that are not shareholders or members of the local energy community connected to the distribution network operated by a local energy community shall be subject to fair and cost - reflective network charges . if such system users and local energy communities cannot reach an agreement on network charges , both parties may request the regulatory authority to determine the level of network charges in a relevant decision ; ### where relevant system users that are not shareholders or members of the local energy community responsible for the community network connected to the distribution network shall be subject to fair , non - discriminatory and cost - reflective network charges . if such system users and local energy communities cannot reach an agreement on network charges , both parties may request the regulatory authority to determine the level of network charges in a relevant decision ;


### is equipped where technically feasible with functionalities referred to in article 20 , or with a minimum set of functionalities to be defined and published by member states at national level and in line with the provisions in annex iii , ### is equipped with functionalities referred to in article 20 , or with a minimum set of functionalities to be defined and published by member states at national level and in line with the provisions in annex iii ,


### member states shall ensure the protection of energy poor or vulnerable customers in a targeted manner by other means than public interventions in the price - setting for the supply of electricity . ### member states shall ensure the protection of energy poor or vulnerable household customers in a targeted manner by other means than public interventions in the price - setting for the supply of electricity .


### such facilities are necessary for the distribution system operators to fulfil their obligations under this directive for the efficient , reliable and secure operation of the distribution system ; and ### such facilities are used by the distribution system operator exclusively for the purpose of fulfilling its obligations under this directive for the efficient , reliable and secure operation of the distribution system , and they are not used to sell electricity to the market .


### ensuring that customers benefit through the efficient functioning of their national market , promoting effective competition and helping to ensure consumer protection ; ### ensuring that customers benefit through the efficient functioning of their national market , promoting effective competition and ensuring consumer protection in close cooperation with relevant consumer protection authorities ;


### distributed energy technologies and consumer empowerment have made community energy and energy cooperatives an effective and cost - efficient way to meet citizens ' needs and expectations regarding energy sources , services and local participation . community energy offers an inclusive option for all consumers to have a direct stake in producing , consuming or sharing energy between each other within a geographically confined community network that may operate in an isolated mode or be connected to the public distribution network . community energy initiatives focus primarily on providing affordable energy of a specific kind , such as renewable energy , for their members or shareholders rather than prioritising profit - making like a traditional energy company . by directly engaging with consumers community energy initiatives are demonstrating their potential in facilitating the up - take of new technologies and consumption patterns , including smart distribution grids and demand response , in an integrated manner . community energy can also advance energy efficiency at household level and help fight energy poverty through reduced consumption and lower supply tariffs . community energy also enables certain groups of household consumers to participate in the energy market who otherwise might not have been able to do so . where they have been successfully operated such initiatives have delivered economic , social and environmental value to the community that goes beyond the mere benefits derived from the provision of energy services . local energy communities should be allowed to operate on the market on a level - playing field without distorting competition . household consumers should be allowed to voluntarily participate in a community energy initiative as well as to leave it , without losing access to the network operated by the community energy initiative or their rights as consumers . access to a local energy community ' s network should be granted on fair and cost - reflective terms . ### distributed energy technologies and consumer empowerment have made community energy and energy cooperatives an effective and cost - efficient way to meet citizens ' needs and expectations regarding energy sources , services and local participation . community energy initiatives , or local energy communities , focus primarily on providing affordable energy of a specific kind , such as renewable energy , for their members or shareholders , or to alleviate problems concerning a decreasing standard of living or to strengthen community interaction , rather than prioritising profit - making like a traditional energy company . by directly engaging with consumers community energy initiatives are demonstrating their potential in facilitating the up - take of new technologies and consumption patterns , including smart distribution grids and demand response , in an integrated manner . community energy can also advance energy efficiency at household level and help fight energy poverty through reduced consumption and lower supply tariffs . community energy also enables certain groups of household consumers to participate in the energy market who otherwise might not have been able to do so . where they have been successfully operated such initiatives have delivered economic , social and environmental value to the community that goes beyond the mere benefits derived from the provision of energy services . local energy communities should be allowed to operate on the market on a level - playing field without distorting competition . household consumers should be allowed to voluntarily participate in a community energy initiative while maintaining all their rights as a consumer , including their right to choice and to a good quality of supply . individuals should be able to leave a local energy community , without losing access to the network operated by the community energy initiative or their rights as consumers .


### . member states shall take appropriate measures to protect customers and shall , in particular , ensure that there are adequate safeguards to protect vulnerable customers . in this context , each member state shall define the concept of vulnerable customers which may refer to energy poverty and , inter alia , to the prohibition of disconnection of electricity to such customers in critical times . member states shall ensure that rights and obligations linked to vulnerable customers are applied . in particular , they shall take measures to protect customers in remote areas . they shall ensure high levels of consumer protection , particularly with respect to transparency regarding contractual terms and conditions , general information and dispute settlement mechanisms . ### member states shall take appropriate measures to protect customers and shall , in particular , ensure that there are adequate safeguards to protect vulnerable household customers . in this context , the concept of vulnerable customers which may refer to energy poverty shall herewith be defined as : ' the inability of a household to maintain an adequate energy supply so as to guarantee basic levels of comfort and health , owing to a combination of low income , high energy prices and low quality housing stock . ' member states shall ensure that rights and obligations linked to vulnerable customers are applied , in particular the prohibition of disconnection of electricity to such customers in critical times , as during cold spells or heat waves , and to receive supply from a supplier of last resort in accordance with article 27 . further , member states shall take measures to protect customers in remote areas . they shall ensure high levels of consumer protection , particularly with respect to transparency regarding contractual terms and conditions , general information and dispute settlement mechanisms . disconnection shall be prohibited until the dispute between the supplier and the customer is settled .


### no additional costs shall be charged to final customers for access to their data . member states shall be responsible for setting the relevant costs for access to data by eligible parties . regulated entities which provide data services shall not profit from that activity . ### no additional costs shall be charged to final customers for access to their data or requesting a transfer of their data . member states shall be responsible for setting the relevant costs for access to data by eligible parties . regulated entities which provide data services shall not profit from that activity .


### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , regulatory authorities shall make available to market parties the detailed methodology and underlying costs used for the calculation of the relevant network tariffs . ### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , regulatory authorities shall publish in an accessible manner for all citizens and market parties the detailed methodology and underlying assumptions used for the calculation of the relevant network tariffs . such methodology shall ensure that environmental , social and economic benefits deriving from customers’ activities are reflected in network tariffs . the methodology shall include a cost benefit analysis of locational benefits and costs of distributed energy resources located on the distribution system , including reductions or increases in local generation capacity needs , avoided or increased investments in distribution infrastructure , safety benefits , reliability benefits , and any other savings the distributed energy resources provide to the grid or costs to final customers . the methodology shall include a cost - benefit analysis , based on open and participatory procedure , aiming at identifying the value added by active final customers to the grid , and the contribution of distributed energy resources to objectives of general interest


### ' local energy community ' means : an association , a cooperative , a partnership , a non - profit organisation or other legal entity which is effectively controlled by local shareholders or members , generally value rather than profit - driven , involved in distributed generation and in performing activities of a distribution system operator , supplier or aggregator at local level , including across borders ; ### ' local energy community ' means : a sme or a non - for - profit organisation , which is based on open participation , is effectively controlled by local shareholders or members that are participating collectively as final customers and have equal decision making rights , whose predominant aim is to provide environmental , economic or social community benefits for their members or the local area or areas where they operate rather than profit driven , that carries out or is involved in at least one or more of the following activities : distributed generation , storage , supply , provision of energy efficiency services , aggregation , electro - mobility , or distribution system operation ;


### the energy installation required for the activities of the active customer may be managed by a third party for installation , operation , including metering and maintenance . ### the energy installation required for the activities of the active customer may be managed or owned by a third party subject to instructions of the active customer for installation , operation , including metering and maintenance .


### this directive establishes common rules for the generation , transmission , distribution , storage and supply of electricity , together with consumer protection provisions , with a view to creating truly integrated competitive , consumer - centered and flexible electricity markets in the union . using the advantages of an integrated market , the directive aims at ensuring affordable energy prices for consumers , a high degree of security of supply and a smooth transition towards a decarbonised energy system . it lays down key rules relating to the organisation and functioning of the european electricity sector , in particular rules on consumer empowerment and protection , on open access to the integrated market , on third party access to transmission and distribution infrastructure , unbundling rules , and on independent national energy regulators . . ### this directive establishes common rules for the generation , transmission , distribution , storage and supply of electricity , together with consumer protection provisions , with a view to creating truly integrated competitive , renewables ready , consumer - centered and flexible electricity markets in the union . using the advantages of an integrated market , the directive aims at ensuring affordable , transparent energy costs for consumers , a high degree of security of supply and a smooth transition towards a highly energy efficient and fully renewables - based energy system . it lays down key rules relating to the organisation and functioning of the european electricity sector , in particular rules on consumer empowerment and protection , on open access to the integrated market , on third party access to transmission and distribution infrastructure , unbundling rules , and on independent national energy regulators . consumer interests shall be at the heart of this directive and quality of service shall be a central responsibility of electricity undertakings . existing rights of consumers need to be strengthened and guaranteed , and shall include greater transparency . consumer protection shall ensure that all consumers in the wider remit of the community benefit from a competitive market . consumer rights shall be enforced by member states or , where a member state has so provided , the regulatory authorities .


### . member states shall take appropriate measures to protect customers and shall , in particular , ensure that there are adequate safeguards to protect vulnerable customers . in this context , each member state shall define the concept of vulnerable customers which may refer to energy poverty and , inter alia , to the prohibition of disconnection of electricity to such customers in critical times . member states shall ensure that rights and obligations linked to vulnerable customers are applied . in particular , they shall take measures to protect customers in remote areas . they shall ensure high levels of consumer protection , particularly with respect to transparency regarding contractual terms and conditions , general information and dispute settlement mechanisms . ### member states shall take appropriate measures to protect final customers and shall , in particular , ensure that there are adequate safeguards to protect vulnerable customers . in this context , each member state shall define the concept of vulnerable customers which shall refer to energy poverty and ensure the prohibition of disconnection of electricity to such customers in critical times . member states shall ensure that rights and obligations linked to vulnerable customers are applied . in particular , they shall take measures to protect customers in remote areas . they shall ensure high levels of consumer protection , particularly with respect to transparency regarding contractual terms and conditions , general information and dispute settlement mechanisms . member states shall ensure that the eligible customer is in fact able easily to switch to a new supplier . as regards at least household customers , those measures shall include those set out in annex i .


### member states should maintain a wide discretion to impose public service obligations on electricity undertakings in pursuing objectives of general economic interest . member states should ensure that household customers and , where member states deem it appropriate , small enterprises , enjoy the right to be supplied with electricity of a specified quality at clearly comparable , transparent and competitive prices . nevertheless , public service obligations in the form of supply price regulation constitute a fundamentally distortive measure that often leads to the accumulation of tariff deficits , limitation of consumer choice , poorer incentives for energy saving and energy efficiency investments , lower standards of service , lower levels of consumer engagement and satisfaction , restriction of competition as well as fewer innovative products and services on the market . consequently , member states should apply other policy tools , and in particular targeted social policy measures , to safeguard the affordability of electricity supply to their citizens . interventions in price setting should only be applied in limited exceptional circumstances . a fully liberalised retail electricity market would stimulate price and non - price competition among existing suppliers and incentivise new market entries therefore improving consumers ' choice and satisfaction . ### member states should maintain a wide discretion to impose public service obligations on electricity undertakings in pursuing objectives of general economic interest . member states should ensure that household customers and , where member states deem it appropriate , small enterprises , enjoy the right to be supplied with electricity of a specified quality at clearly comparable , transparent and competitive prices . nevertheless , public service obligations in the form of supply price regulation constitute a fundamentally distortive measure that often leads to the accumulation of tariff deficits , limitation of consumer choice , poorer incentives for energy saving and energy efficiency investments , lower standards of service , lower levels of consumer engagement and satisfaction , restriction of competition as well as fewer innovative products and services on the market . consequently , member states should apply other policy tools , and in particular targeted social policy measures , to safeguard the affordability of electricity supply to their citizens . interventions in price setting should be limited to social tariffs to be offered by energy suppliers and only be applied in limited exceptional circumstances , in order to support the most vulnerable . in case the market does not generate enough competition and suppliers exploit the fact that customers are not willing to switch , national regulatory authorities should protect customers by introducing a reasonable cap on the profits of the suppliers operating on the retail market


### by way of derogation from paragraph 2 , member states may choose to permit suppliers to charge contract termination fees to customers willingly terminating fixed term supply contracts before their maturity . such fees may only be charged if customers receive a demonstrable advantage from these contracts . in addition , such fees shall not exceed the direct economic loss to the supplier of the customer terminating the contract , including the cost of any bundled investments or services already provided to the customer as part of the contract . ### by way of derogation from paragraph 2 , member states may choose to permit suppliers to charge contract termination fees to customers willingly terminating fixed term fixed price supply contracts before their maturity . such fees may only be charged if customers receive a demonstrable advantage from these contracts . in addition , such fees shall be proportionate to the advantage provided to the customer and shall not exceed the direct economic loss to the supplier of the customer terminating the contract , including the cost of any bundled investments or services already provided to the customer as part of the contract . the burden of proof of the direct economic loss shall always be on the supplier and monitored by the national regulatory authority .


### provisions of chapter iv apply to local energy communities that perform activities of a distribution system operator ; ### where a local energy community performs activities of a distribution system operator , including of a physical community network , provisions of chapter iv apply .


### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , regulatory authorities shall make available to market parties the detailed methodology and underlying costs used for the calculation of the relevant network tariffs . ### with a view to increasing transparency in the market and provide to all interested parties all necessary information , decisions or proposals for a decision concerning transmission and distribution tariffs as referred in article 60 , national regulatory authorities shall make available to market parties the detailed methodology and underlying assumptions used for the calculation of the relevant network tariffs , which shall include a cost benefit analysis for distributed energy resources , including an assessment of their potential value to the grid and the contribution to other energy policy objectives , in particular those provided by active customers and local energy communities .


### member states shall perform at regular intervals or at least every five years a public consultation in order to re - assess the potential interest of market parties to own , develop , operate or manage recharging points for electric vehicles . in case the public consultation indicates that third parties are able to own , develop , operate or manage such points , member states shall ensure that distribution system operators ' activities in this regard are phased - out . ### member states shall perform at regular intervals or at least every four years a public consultation in order to re - assess the potential interest of market parties to own , develop , operate or manage recharging points for electric vehicles . in case the public consultation indicates that third parties are able to own , develop , operate or manage such points , member states shall ensure that distribution system operators ' activities in this regard are phased - out .


### benefit from a non - discriminatory treatment with regard to their activities , rights and obligations as final customers , generators , distribution system operators or aggregators ; ### benefit from a non - discriminatory treatment with regard to their activities , rights and obligations as final customers , suppliers , generators , distribution system operators or aggregators ;


### member states shall ensure that final customers are entitled to receive all relevant demand response data or data on supplied and sold electricity at least once per year . ### member states shall ensure that final customers are entitled to receive all relevant demand response data at least once a month and upon request also in an electronic format .


### in order to promote energy efficiency and empower customers , member states or , where a member state has so provided , the regulatory authority shall strongly recommend that electricity undertakings and aggregators optimise the use of electricity , inter alia by providing energy management services , developing innovative pricing formulas , or introducing interoperable smart metering systems or smart grids , where appropriate . ### in order to promote energy efficiency and empower customers , member states or , where a member state has so provided , the regulatory authority shall strongly recommend that electricity undertakings and aggregators optimise the use of electricity , inter alia by providing energy management services , developing innovative pricing formulas , and introducing interoperable smart metering systems or smart grids , where appropriate .


### billing shall take place on the basis of actual consumption at least once a year . billing information shall be made available at least once every three months , upon request or where the final customers have opted to receive electronic billing or else twice a year . ### billing shall take place on the basis of actual consumption at least once a year . billing and consumption information shall be made available continuously online where a smart meter has been installed , or else at least once a month .


### ensuring that customers benefit through the efficient functioning of their national market , promoting effective competition and helping to ensure consumer protection ; ### ensuring that customers benefit through the efficient functioning of their national market and their participation therein is not restricted , promoting effective competition and to guarantee consumer protection in close cooperation with relevant consumer protection authorities ;


### member states may require the comparison tools referred to in paragraph 1 to include comparative determinants relating to the nature of the services offered by the suppliers . ### member states shall require the comparison tools referred to in paragraph 1 to include comparative determinants relating to the nature of the type of energy provided and the services offered by the suppliers as set out in annex i .


### member states shall ensure that . customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive . where the costumer is a consumer within the meaning of directive 2013 / 11 / eu of the european parliament and of the council46 , such out - of - court mechanisms shall comply with the quality requirements established in directive 2013 / 11 / eu and provide , where warranted , for a system of reimbursement and / or compensation . __________________ 46 oj l 165 , 18 . 6 . 2013 , p . 63–79 ### member states shall ensure that customers have access to simple , fair , transparent , independent , effective and efficient out - of - court dispute resolution mechanisms for the settlement of disputes concerning rights and obligations established under this directive through an independent mechanism such as an energy ombudsman or a consumer body is in place to ensure efficient treatment of complaints and out of court dispute settlements . those mechanisms shall be able to address all consumer complaints , in particular household costumers in the energy market , including on bundled offers , new products and services providers such as aggregators and local energy communities . where the customer is an active consumer or consumer within the meaning of directive 2013 / 11 / eu of the european parliament and of the council [ 1 ] , such out - of - court mechanisms shall comply with the quality requirements established in directive 2013 / 11 / eu and provide , where warranted , for a system of reimbursement and / or compensation defined by the regulator and the ombudsman or consumer body . those mechanisms shall be extended to all energy service providers and all contracts with energy components , including bundled offers and contracts with aggregators and local energy communities . __________________ 46 oj l 165 , 18 . 6 . 2013 , p . 63–79


### the internal market has to continuously adapt to a rapidly changing environment of digital revolution and globalisation . a new era of digital innovation continues to provide opportunities for businesses and individuals , creates new products and business models but equally constitutes a challenge to regulation and enforcement . ### the internal market has to continuously adapt to rapidly changing environment of digital revolution , globalisation and the increasing pressures of climate change . a new era of digital and eco - innovation and new collaborative business models continue to provide opportunities for businesses and individuals , create new sustainable , more resource and energy efficient products , services and business models but equally constitutes a challenge to regulation and enforcement .


### smes share common challenges that do not affect larger firms to the same extent to obtain finance , to find skilled work force , to alleviate administrative burden , to take - up creativity and innovation , to access markets and foster internationalisation activities . the programme should address such market failures proportionally , while not unduly distorting competition in the internal market . ### smes share common challenges that do not affect larger firms to the same extent to obtain finance , to find skilled work force , to alleviate administrative burden , to take - up creativity and innovation , to access markets and foster internationalisation activities . the programme should address such market failures proportionally , while not unduly distorting competition in the internal market , and enhance sme’s role in achieving a net - zero carbon emission economy by 2050 at the latest . particular attention should be paid to micro enterprises , enterprises engaged in craft activities , the self - employed , the liberal professions and social enterprises . attention should also be paid to potential , new , young and female entrepreneurs , as well as to other specific target groups , such as older people , migrants and entrepreneurs belonging to socially disadvantaged or vulnerable groups such as persons with disabilities .


### improving the competitiveness of enterprises with special emphasis on smes and achieving additionality through the provision of measures that provide various forms of support to smes , access to markets including the internationalisation of smes , favourable business environment for smes , the competitiveness of sectors , the modernisation of industry and the promotion of entrepreneurship ; ### strengthening both the competitiveness and sustainability of enterprises with special emphasis on smes , paying particular attention to their specific needs , promoting their creation , and achieving additionality through the provision of measures that provide various forms of support to smes , reduced administrative burden , improved access to finance for smes in their start - up and growth phase , access to markets including the internationalisation of smes , favourable business environment for smes and , improved framework conditions for enhancing the competitiveness and sustainability of sectors , the accelerating the modernisation of industry and enterprises , in order to be compatible with a net - zero carbon , climate - resilient , energy and resource efficient economy and the promotion of entrepreneurship ;


### facilitating the growth of businesses , including skills development , and industrial transformation across manufacturing and service sectors ; ### facilitating the development and growth of sustainable businesses , raising smes’ awareness of environmental and energy - related issues and to assist them implementing legislation , assessing their environmental and energy performance , including upgrading their skills and qualifications development , and to develop new sustainable business models and resource - efficient value - chains fostering sustainable industrial transformation across manufacturing and service sectors ;


### several programmes for union action exist currently in the fields of competitiveness of enterprises including smes , consumer protection , customers and end - users in financial services , policy making in financial services and food chain . some additional activities are financed directly under the internal market budget lines . it is necessary to streamline and exploit synergies between various actions and provide for a more flexible and agile framework to finance activities aiming to achieve a well - functioning internal market in the most cost - efficient manner . it is therefore necessary to establish a new programme bringing together activities financed previously under those other programmes and other relevant budget lines . the programme should also include new initiatives which aim to improve the functioning of the internal market . ### several programmes for union action exist currently in the fields of competitiveness and sustainability of enterprises including smes , consumer protection , customers and end - users in financial services , policy making in financial services and food chain . some additional activities are financed directly under the internal market budget lines . it is necessary to streamline and exploit synergies between various actions and provide for a more flexible and agile framework to finance activities aiming to achieve a well - functioning internal market in the most cost - efficient manner . it is therefore necessary to establish a new programme bringing together activities financed previously under those other programmes and other relevant budget lines . the programme should also include new initiatives which aim to improve the functioning of the internal market .


### a modern internal market promotes competition and benefits consumers , businesses and employees . making better use of the ever evolving internal market in services should help european businesses create jobs and grow across borders , offer wider choice of services at better prices , and maintain high standards for consumers and workers . to achieve this , the programme should contribute to the removal of remaining barriers , and to ensure a regulatory framework that can accommodate new innovative business models . ### a modern internal market promotes promote highly qualitative services for the benefit of consumers and society as a whole , preserves employment and working conditions of employees , and ensures a better functioning of high - quality services of general economic interest . . making better use of the ever evolving internal market in services should help european businesses create jobs and grow across borders , offer wider choice of services at better prices , and maintain high standards for consumers and workers . to achieve this , the programme should contribute to the removal of remaining barriers , and to ensure a regulatory framework that can accommodate new innovative business models whilst ensuring a high level of social protection .


### european standards play an important role in the internal market . they are of vital interest for the competitiveness of undertakings , and especially smes . they are also a crucial tool to support union legislation and policies in a number of key areas such as energy , climate change , information and communication technology , sustainable use of resources , innovation , product safety , consumer protection , worker’s safety and working conditions and ageing population , thus positively contributing to the society as a whole . ### european standards play an important role in the internal market . they are of vital interest for the competitiveness of undertakings , and especially smes . they are also a crucial tool to support union legislation and policy goals in a number of key areas such as accelerating the energy transition , tackling climate change , environmental protection , improved air quality , information and communication technology , sustainable use and recycling of resources , innovation , product safety , consumer protection , worker’s safety and working conditions and ageing population , thus positively contributing to the society as a whole .


### strengthening the competitiveness of european enterprises while reassuring an effective level playing field and an open and competitive internal market is of outmost importance . smes are the engine of the european economy making up 99% of all businesses in europe , providing two thirds of jobs , and contributing substantially to the creation of new jobs with a regional and local dimension . ### strengthening the competitiveness and sustainability of european enterprises while reassuring an effective level playing field and an open and competitive internal market is of outmost importance . european enterprises need to distinguish themselves on the global market by providing high quality products and services that are smarter , customised and adhere to highest environmental and sustainability standards creating less waste and pollution . improved productivity , in particular through increased resource efficiency , energy savings and the implementation of the ‘ energy efficiency first’ principle are the primary source of sustainable income and competitiveness . smes are the engine of the european economy making up 99% of all businesses in europe , providing two thirds of jobs , and contributing substantially to the creation of new jobs with a regional and local dimension , and hence social cohesion . smes are key drivers in the context of the energy transition , the fight against climate change , the eu’s competitiveness on green tech and a major source of innovation in the eu . bearing this in mind , specific actions under this programme should include promoting the development of sustainable products , services , technologies , non - technical solutions and processes , as well as enhanced resource - and energy - efficiency and corporate social responsibility .


### the internal market is a cornerstone of the union . since its inception , it has proved a major contributor to growth , competitiveness and employment . it has generated new opportunities and economies of scale for european businesses , notably micro , small and medium sized enterprises , and strengthened their industrial competitiveness . the internal market contributed to the creation of jobs and offered greater choice at lower prices for consumers . it continues to be an engine for building a stronger , more balanced and fairer economy . it is one of the union ' s major achievements and its best asset in an increasingly global world . ### the internal market is a cornerstone of the union . since its inception , it has proved a major contributor to economic development , prosperity , competitiveness and employment . it has generated new opportunities and economies of scale for european businesses , notably micro , small and medium sized enterprises , and strengthened their industrial competitiveness . the internal market contributed to the creation of jobs and offered greater diversification for consumers in terms of products and services offered . it continues to be an engine for building a sustainable , stronger , more balanced and transparent , inclusive and fairer economy . it is one of the union ' s major achievements and its best asset in an increasingly global world and a core element in succeeding in the transformation into a net - zero carbon emission , resource - and energy efficient sustainable economy .


### by derogation from article 10a to , member states which had in 2013 a gdp per capita in &#8364 ; at market prices below 60% of the union average may give a transitional free allocation to installations for electricity production for the modernisation of the energy sector . 2 . the member state concerned shall organise a competitive bidding process for projects with a total amount of investment exceeding €10 million to select the investments to be financed with free allocation . this competitive bidding process shall : comply with the principles of transparency , non - discrimination , equal treatment and sound financial management ; ensure that only projects which contribute to the diversification of their energy mix and sources of supply , the necessary restructuring , environmental upgrading and retrofitting of the infrastructure , clean technologies and modernisation of the energy production , transmission and distribution sectors are eligible to bid ; define clear , objective , transparent and non - discriminatory selection criteria for the ranking of projects , so as to ensure that projects are selected which : on the basis of a cost - benefit analysis , ensure a net positive gain in terms of emission reduction and realise a pre - determined significant level of co2 reductions ; are additional , clearly respond to replacement and modernisation needs and do not supply a market - driven increase in energy demand ; offer best value for money ; by 30 june 2019 , any member state intending to make use of optional free allocation shall publish a detailed national framework setting out the competitive bidding process and selection criteria for public comment . where investments with a value of less than €10 million are supported with free allocation , the member state shall select projects based on objective and transparent criteria . the results of this selection process shall be published for public comment . on this basis , the member state concerned shall establish and submit a list of investments to the commission by 30 june 2019 . 3 . the value of the intended investments shall at least equal the market value of the free allocation , while taking into account the need to limit directly linked price increases . the market value shall be the average of the price of allowances on the common auction platform in the preceding calendar year . 4 . transitional free allocations shall be deducted from the quantity of allowances that the member state would otherwise auction . the total free allocation shall be no more than 40% of the allowances which the member state concerned receives in the period 2021 - 30 pursuant to article 10 spread out in equal annual volumes over the period from 2021 - 30 . 5 . allocations to operators shall be made upon demonstration that an investment selected according to the rules of the competitive bidding process has been carried out . 6 . member states shall require benefiting electricity generators and network operators to report by 28 february of each year on the implementation of their selected investments . member states shall report on this to the commission , and the commission shall make such reports public . ### deleted deleted deleted deleted deleted deleted


### the fund shall be governed by an investment board and a management committee , which shall be composed of representatives from the beneficiary member states , the commission , the eib and three representatives elected by the other member states for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund . ### the fund shall be governed by an investment board and a management committee , which shall be composed of one representative from each of the beneficiary member states , the commission and the eib , and three representatives elected by the other member states , for a period of 5 years . the investment board shall be responsible to determine an union - level investment policy , appropriate financing instruments and investment selection criteria . the management committee shall be responsible for the day - to - day management of the fund .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . eligible low - carbon industrial projects shall contribute to emissions reductions of at least 20% below the updated benchmark set out in paragraph 2 and shall enhance competitiveness and productivity . technologies shall compete on ghg saving and on subsidy requirements . eligible innovative renewable energy projects shall be defined in the delegate act referred to in article 23 , which will also specify a process for updating that list . those technologies shall compete by their cost - per - unit performance . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed , except for the ccs projects , with regard to which up to 20% of the grant shall not be dependent on verified avoidance of greenhouse gas emissions .


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . however , in order to ensure the application of the ' polluter pays ' principle , no sector , however much exposed to a risk of carbon leakage , should receive 100% free allowances . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . sectors and sub - sectors that are not exposed to the risk of carbon leakage should not receive allowances free of charge . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits .


### the auctioning of allowances remains the general rule , with free allocation as the exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec . ### the auctioning of allowances remains the general rule , with free allocation as the temporary exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . from 2021 onwards , the share of allowances to be auctioned should be at least 57% with a view to increasing it to 100% over time the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / . . . of the european parliament and of the council19 . allowances from the maximum amount referred to in this directive which were not allocated free of charge up to 2020 and allowances not allocated free of charge to installations up to 2030 should be cancelled permanently in order to ensure that unused surplus pollution permits do not undermine post - 2020 greenhouse emission reductions . __________________ 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec .