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


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


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


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


### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . ### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions , and after consulting natural gas undertakings . such arrangements shall cover , among others , gas prices to be applied , use of interconnectors , including guaranteed bi - directional capacity , gas volumes , gas prices to be applied and the compensation mechanism to be implemented in order to refund the overall costs incurred because of the interruption of gas supplies , with a detrimental effect on the electricity sector . acer should act as a facilitator in calculating compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly .


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


### natural gas remains an essential component of the energy supply of the union . a large proportion of such gas is imported into the union from third countries . ### natural gas is an essential component of the energy supply of the union . this makes security of gas supply a key element of the union ' s overall energy security , with relevance to the union ' s competitiveness and growth . even though more than 50&#8239 ; % of gas consumption in the union and the rest of the european economic area is currently covered by domestic production , a growing proportion of gas is imported from third countries . enhancing the union ' s energy security and making its gas market more resilient thus requires creating a stable , market - based regulatory framework for developing gas production from domestic sources . furthermore , increasing energy efficiency as well as the use of renewable energy sources reduces the union ' s reliance on gas imports , thereby also addressing dependence on dominant external suppliers .


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


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


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


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


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


### if the member states do not agree on the necessary technical , legal and financial arrangements , the commission may propose a framework for such measures in its opinion and decision on the plans . ### if the member states do not agree on the necessary technical , legal and financial arrangements , the commission may propose a framework for such measures in its opinion and decision on the plans by taking special care to ensure that uniform supply standards are actually respected and that supply shortages of the member states concerned are resolved as soon as possible . within the framework of the financial arrangement governing member states , the commission could also make proposals for burden - sharing mechanisms so that adverse economic consequences are not borne solely by the neighbouring countries concerned .


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


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


### the commission communication ' framework strategy for a resilient energy union with a forward - looking climate change policy ' 14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for implementing the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final . ### energy security constitutes one of the objectives of the energy union strategy , as set out in the commission communication of 25 february 2015 , entitled ' framework strategy for a resilient energy union with a forward - looking climate change policy ' . the communication highlighted the fact that the energy union rests on solidarity , a principle enshrined in article 194 teu , and trust , which are necessary features of energy security . this regulation is intended to boost solidarity and trust between the member states , and support the eu climate and energy objectives , thus paving the way for a secure and climate - friendly energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final .


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


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


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


### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of supply and competitiveness aspects must be taken into account . ### demand - side measures , such as encouraging the use of renewable energy sources , reducing heating and cooling demand in buildings by coordinated energy efficiency and demand response measures , fuel switching or reducing the gas supply to large industrial consumers in an economically efficient manner , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . much more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment and the climate . at the same time , security of gas supply should remain a priority for measures undertaken in the case of disruption to supply , while competitiveness aspects should also be properly taken into account .


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


### a regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states . ### a regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , taking both gas and electricity systems into account , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states . as preparation for a coordinated and pre - agreed approach , it is important that member states , have also assessed and implemented the cost - effective demand reduction measures available in their areas , especially for the reduction of heating and cooling demand in buildings , but also by improving industrial processes using gas . the regional approach should not lift the responsibility from individual member states to comply with their national security of supply standards , and should not prevent inter - regional cooperation outside the regions established in annex i of this regulation .


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


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


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


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


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


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


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


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


### the commission communication ' framework strategy for a resilient energy union with a forward - looking climate change policy ' 14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for implementing the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final . ### energy security constitutes one of the objectives of the energy union strategy , as set out in the commission communication of 25 february 2015 , entitled ' framework strategy for a resilient energy union with a forward - looking climate change policy ' . the communication highlighted the fact that the energy union rests on solidarity , a principle enshrined in article 194 teu , and trust , which are necessary features of energy security . this regulation is intended to boost solidarity and trust between the member states and put in place the measures needed to achieve these aims , thus paving the way for achieving a vital objective of the energy union .


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


### the competent authority shall require the natural gas undertakings , that it identifies , to take measures to ensure the supply of gas to the protected customers of the member state in each of the following cases : ### the national regulatory authority shall require the natural gas undertakings , that it identifies , to take measures to ensure the supply of gas to the protected customers of the member state in each of the following cases :


### detail the reporting obligations imposed on natural gas undertakings at alert and emergency levels ; ### detail the reporting obligations imposed on natural gas and , where appropriate , electricity undertakings at alert and emergency levels ;


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


### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . such arrangements may cover , among others , gas prices to be applied , use of interconnectors , including bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . ### the technical , legal and financial arrangements for the application of paragraph 3 shall be agreed among the member states which are directly connected to each other and described in the emergency plans of their respective regions . for each of the regional groupings , the commission shall prepare a minimum framework for the proposed mechanisms , which will cover , among others , gas prices to be applied , use of interconnectors , including guaranteed availability of bi - directional capacity , gas volumes and the coverage of compensation costs . market - based measures such as auctions shall be preferred for the implementation of the obligation laid down in paragraph 3 . in case the technical , legal and financial arrangements necessary to apply paragraph 3 are amended , the relevant emergency plan shall be updated accordingly . the commission shall prepare a solidarity arrangements template , including model clauses , and publish it .


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


### to provide input to the risk assessments , the european network of transmission system operators for gas , in consultation with the gas coordination group and with the european network of transmission system operators for electricity , should carry out union - wide simulations similar to the stress test conducted in 2014 . ### to provide input to the risk assessments , the european network of transmission system operators for gas , after consulting the gas coordination group and the european network of transmission system operators for electricity , should carry out union - wide simulations similar to the stress test conducted in 2014 . such simulations should be updated at least every two years . as a means of strengthening regional cooperation by providing information about gas flows as well as providing technical and operational expertise , the regional coordination system for gas , established by the entso for gas and composed of standing expert groups , should be involved in carrying out simulations .


### member states may comply with the obligation laid down in the first subparagraph by replacing the gas with different source of energy to the extent that the same level of protection is achieved . ### member states may comply with the obligation laid down in the first subparagraph of this paragraph by reducing the demand for gas through the implementation of energy efficiency measures or by replacing the gas with a different source of energy , in particular renewable energy , to the extent that the same level of protection is achieved .


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


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


### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of supply and competitiveness aspects must be taken into account . ### demand - side measures , such as encouraging the use of renewable energy sources , reducing heating and cooling demand in buildings by coordinated energy efficiency and demand response measures , fuel switching or reducing the gas supply to large industrial consumers in an economically efficient manner , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . much more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment and the climate . at the same time , security of gas supply should remain a priority for measures undertaken in the case of disruption to supply , while competitiveness aspects should also be properly taken into account .


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


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


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


### the risk assessment shall be prepared in accordance with the template in annex iv . the commission shall be empowered to adopt delegated acts in accordance with article 18 to amend those templates . ### the risk assessment shall be prepared in accordance with the template in annex iv . the commission shall be empowered to adopt delegated acts in accordance with article 18 to amend those templates taking into account member state implementation timeframes .


### an emergency plan containing the measures to be taken to remove or mitigate the impact of a gas supply disruption in the region , including events of purely national dimension , in accordance with article 9 . ### an emergency plan containing the measures , including demand - side measures , for example through closer coordination with the electricity sector , to be taken to remove or mitigate the impact of a gas supply disruption in the region , including events of purely national dimension , in accordance with article 9 .


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


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


### describe other measures adopted for reasons other than the risk assessment but with a positive impact for the security of supply of the region / member state ### describe other measures , including energy efficiency measures , adopted for reasons other than the risk assessment but with a positive impact for the security of supply of the region / member state


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


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


### identify , if appropriate , the measures and actions to be taken to mitigate the potential impact of a gas supply disruption on district heating and the supply of electricity generated from gas ; ### identify , if appropriate , the measures and actions to be taken to mitigate the potential impact of a gas supply disruption on district heating and the supply of electricity generated from gas , notably through an integrated view of energy systems operations across electricity and gas ;


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


### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . firstly , all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . secondly , if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be triggered to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation of the natural gas undertakings . ### as demonstrated by the october 2014 stress test , solidarity is needed to ensure security of supply across the union and to keep overall costs to a minimum . if an emergency is declared in any member state , a two - step approach should be applied to strengthen solidarity . all member states which have introduced a higher supply standard should reduce it to default values to make the gas market more liquid . if the first step fails to provide the necessary supply , further measures by neighbouring member states , even if not in an emergency situation , should be taken to ensure the supply to households , essential social services and district heating installations in the member state experiencing the emergency . member states should identify and describe the details of these solidarity measures in their emergency plans , ensuring fair and equitable compensation for the natural gas undertakings .


### national regulatory authorities shall take into account the efficiently incurred costs of fulfilling the obligation set out in paragraph 1 and the costs of enabling permanent bi - directional capacity so as to grant appropriate incentives when fixing or approving , in a transparent and detailed manner , the tariffs or methodologies in accordance with article 41 of directive 2009 / 73 / ec and article 13 of regulation no 715 / 2009 . ### national regulatory authorities shall take into account the efficiently incurred costs of fulfilling the obligation set out in paragraph 1 , including how energy efficiency measures to reduce gas demand may contribute to the most cost - effective approach to fulfilling the n - 1 formula , and the costs of enabling permanent bi - directional capacity so as to grant appropriate incentives when fixing or approving , in a transparent and detailed manner , the tariffs or methodologies in accordance with article 41 of directive 2009 / 73 / ec and article 13 of regulation no 715 / 2009 .


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


### the other preventive measures designed to address the risks identified in the risk assessment , such as those relating to the need to enhance interconnections between neighbouring member states and the possibility to diversify gas routes and sources of supply , if appropriate , to address the risks identified in order to maintain gas supply to all customers as far as possible ; ### the other preventive measures designed to address the risks identified in the risk assessment , such as those relating to the need to enhance interconnections between neighbouring member states and the possibility to diversify gas routes and sources of supply , to initiate or increase supply from alternative suppliers , inter alia , by way of voluntary demand aggregation and to pool gas reserves , inter alia , via common virtual gas reserves composed of different flexibility options available in different member states , if appropriate , to address the risks identified in order to maintain gas supply to all customers for as long as possible ;


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


### taking into account all relevant national and regional circumstances , in particular market size , network configuration , actual flows , including outflows from the member states concerned , the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system , the presence of production and storage and the role of gas in the energy mixes , in particular with respect to district heating and electricity generation and for the operation of industries , and safety and gas quality considerations ; ### taking into account all relevant national and regional circumstances , in particular market size , the potential for gas demand reduction through energy efficiency measures and the deployment of renewable energy sources , network configuration , gas consumption trends , the utilisation rate of existing infrastructure , actual flows , including outflows from the member states concerned , the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system , the presence of production and storage and the role of gas in the energy mixes , in particular with respect to district heating and electricity generation and for the operation of industries , and safety and gas quality considerations ;


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


### information on existing and future interconnections , including those providing access to the gas network of the union , cross - border flows , cross - border access to storage and lng facilities and the bi - directional capacity , in particular in the event of an emergency ; ### information on existing and future interconnections , including those providing access to the gas network of the union , cross - border flows , cross - border access to storage and lng facilities and the bi - directional capacity , in particular in the event of an emergency , as well as calculations and impact assessments to compare the possibility through demand - side measures to cost - effectively reduce or eliminate the need for these supply - side infrastructural investments ;


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


### the measures to ensure the security of supply contained in the preventive action plans and in the emergency plans shall be clearly defined , transparent , proportionate , non - discriminatory and verifiable , shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other member states or of the union as a whole . ### the measures to ensure the security of gas supply contained in the preventive action plans and in the emergency plans shall be clearly defined , transparent , proportionate , non - discriminatory and verifiable , shall not unduly distort competition and the effective functioning of the internal market in gas and shall not endanger the security of gas supply of other member states , regions or the union .


### in duly justified circumstances irrespective of a declaration of emergency , the competent authority may require gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in the member state or other member states , including contractual information . the commission may request from the competent authorities the information provided by natural gas undertakings . ### in duly justified circumstances irrespective of a declaration of emergency , the national competent authority may require gas undertakings to provide the information referred to in paragraph 1 to assess the overall situation of the gas supply in the member state , including contractual information on volumes . the commission may request from the competent authorities the information provided by natural gas undertakings


### the preventive action plan and the emergency plan shall be developed in accordance with the templates contained in annex v . the commission shall be empowered to adopt delegated acts in accordance with article 18 to amend those templates . ### the preventive action plan and the emergency plan shall be developed in accordance with the templates contained in annex v . the commission shall be empowered to adopt delegated acts in accordance with article 18 to amend those templates taking into account member state implementation timeframes .


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


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


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


### the commission communication ' framework strategy for a resilient energy union with a forward - looking climate change policy ' 14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for implementing the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final . ### energy security constitutes one of the objectives of the energy union strategy , as set out in the commission communication of 25 february 2015 , entitled ' framework strategy for a resilient energy union with a forward - looking climate change policy ' . the communication highlighted the fact that the energy union rests on solidarity , a principle enshrined in article 194 teu , and trust , which are necessary features of energy security . this regulation is intended to boost solidarity and trust between the member states and put in place the measures needed to achieve these aims , thus paving the way for achieving a vital objective of the energy union .


### as long as the supply to households , essential social services and district heating installations in the member state having declared the emergency is not satisfied , despite the application of the measure in paragraph 1 , the gas supply to customers other than households , essential social services and district heating installations in any other member state , directly connected to the member state which declared the emergency , shall not continue to the extent necessary to supply the households , essential social services and district heating installations in the member states having declared the emergency . ### as long as the supply to households , essential social services and district heating installations in the member state having declared the emergency is not satisfied , despite the application of the measure in paragraph 1 , the gas supply to customers other than households , essential social services and district heating installations in any other member state , directly linked to one another or indirectly connected via a third country to the member state which declared the emergency , shall not continue to the extent necessary to supply the households , essential social services and district heating installations in the member states having declared the emergency .


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