### before proposing the adoption of any measure pursuant to this regulation , the commission should inform the member state concerned why it considers that a generalised deficiency regarding the rule of law might exist in that member state . the member state should be allowed to submit its observations . the commission and the council should take those observations into account . ### before proposing the adoption of any measure pursuant to this regulation , the commission should inform the member state concerned why it considers that a generalised deficiency regarding the rule of law might exist in that member state . the commission should immediately inform the european parliament and the council about the notification and its content . the member state concerned should be allowed to submit its observations . the commission should take those observations into account .


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


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


### the member state concerned shall provide all required information and may make observations within a time limit specified by the commission , which shall not be less than 1 month from the date of notification of the finding . in its observations , the member state may propose the adoption of remedial measures . ### the member state concerned shall provide all required information and may make observations within a time limit specified by the commission , which shall not be less than 1 month or more than 3 months from the date of notification of the finding . in its observations , the member state may propose the adoption of remedial measures .


### the commission shall take into account the information received and any observations made by the member state concerned , as well as the adequacy of any proposed remedial measures , when deciding whether or not to submit a proposal for a decision on the appropriate measures . ### the commission shall take into account the information received and any observations made by the member state concerned , as well as the adequacy of any proposed remedial measures , when deciding whether or not to adopt a decision on the appropriate measures .


### the commission shall assess the situation in the member state concerned . once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part , the commission shall submit to the council a proposal for a decision lifting those measures in full or in part . the procedure set out in paragraphs 2 , 4 , 5 , 6 and 7 of article 5 shall apply . ### the commission shall assess the situation in the member state concerned . once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part , the commission shall adopt a decision lifting those measures in full or in part . at the same time , the commission shall submit to the european parliament and the council a proposal to lift in full or in part , the budgetary reserve referred to the measures adopted . the procedure set out in paragraphs 2 , 4 , 5 , 6 and 6a of article 5 shall apply .


### where no technical measures are in place at regional level then defined baseline standards should apply . those baseline standards should be derived from existing technical measures , taking account of stecf advice and the opinions of stakeholders . they should consist of baseline mesh sizes for towed gears and static nets , minimum conservation reference sizes , closed or restricted areas , nature conservation measures to mitigate against bycatches of marine mammals and seabirds in certain areas and any other regionally specific measures currently in existence that are still required to ensure conservation objectives continue to be met until such times measures are put in place under regionalisation . ### where no technical measures are in place at regional level then defined baseline standards should apply . those baseline standards should be derived from existing technical measures , taking account of stecf advice and the opinions of stakeholders . baseline mesh sizes for towed gears and static nets , minimum conservation reference sizes , closed or restricted areas , nature conservation measures to mitigate against bycatches of marine mammals and seabirds in certain areas and any other specific measures are , in any case , subject to rules adopted at regional level in accordance with the provisions of article 18 of regulation 1380 / 2013 .


### where no technical measures are in place at regional level then defined baseline standards should apply . those baseline standards should be derived from existing technical measures , taking account of stecf advice and the opinions of stakeholders . they should consist of baseline mesh sizes for towed gears and static nets , minimum conservation reference sizes , closed or restricted areas , nature conservation measures to mitigate against bycatches of marine mammals and seabirds in certain areas and any other regionally specific measures currently in existence that are still required to ensure conservation objectives continue to be met until such times measures are put in place under regionalisation . ### where no technical measures are in place at regional level then defined baseline standards should apply . those baseline standards should be derived from existing technical measures , taking account of stecf advice and the opinions of stakeholders . they should consist of baseline mesh sizes for towed gears and static nets , minimum conservation reference sizes , closed or restricted areas , nature conservation measures to mitigate against and , where possible , eliminate , bycatches of marine mammals and seabirds in certain areas and any other regionally specific measures currently in existence that are still required to ensure conservation objectives continue to be met until such times measures are put in place under regionalisation .


### member states in conjunction with stakeholders can develop joint recommendations for appropriate technical measures that deviate from the baselines in accordance with the regionalisation process set out in the cfp . ### member states , in conjunction with stakeholders , should develop joint recommendations for appropriate technical measures , in accordance with the regionalisation process set out in the cfp , even where there is no multiannual plan .


### in developing joint recommendations to adopt alternative size and species selective gears to the baseline mesh sizes in multiannual plans regional groups of member states should ensure that such gears result in , as a minimum , similar or improved selectivity patterns as the baseline gears . ### in developing joint recommendations to adopt alternative size and species selective gears to the baseline mesh sizes , regional groups of member states should ensure that such gears result in , as a minimum , similar or improved selectivity patterns as the baseline gears .


### in developing joint recommendations to amend or establish new closed or restricted areas in multiannual plans to protect juveniles and spawning aggregations , regional groups of member states should define the specifications , extent , duration , gear restrictions and control and monitoring arrangements in their joint recommendations . ### in developing joint recommendations to amend or establish new closed or restricted areas to protect juveniles and spawning aggregations , regional groups of member states should define the specifications , extent , duration , gear restrictions and control and monitoring arrangements in their joint recommendations .


### in developing joint recommendations to amend or establish minimum conservation reference sizes in multiannual plans , regional groups of member states should ensure the objectives of the cfp are not jeopardised by ensuring that the protection of juveniles of marine species should be respected while ensuring that no distortion is introduced into the market and that no market for fish below minimum conservation reference sizes is created . ### in developing joint recommendations to amend or establish minimum conservation reference sizes , regional groups of member states should ensure the objectives of the cfp are not jeopardised by ensuring that the protection of juveniles of marine species should be respected while ensuring that no distortion is introduced into the market and that no market for fish below minimum conservation reference sizes is created .


### in developing joint recommendations to amend or establish minimum conservation reference sizes in multiannual plans , regional groups of member states should ensure the objectives of the cfp are not jeopardised by ensuring that the protection of juveniles of marine species should be respected while ensuring that no distortion is introduced into the market and that no market for fish below minimum conservation reference sizes is created . ### in developing joint recommendations to amend or establish minimum conservation reference sizes in multiannual plans , regional groups of member states should ensure the objectives of the cfp are achieved by ensuring that the protection of juveniles of marine species is respected while ensuring that no distortion is introduced into the market and that no market for fish below minimum conservation reference sizes is created .


### as tools to support the implementation of the common fisheries policy , technical measures shall contribute to the objectives of the cfp set out in article 2 of regulation no 1380 / 2013 and in particular in paragraphs 2 , 3 and 5 and of that article . ### as tools to support the implementation of the common fisheries policy , technical measures shall contribute to the objectives of the cfp set out in article 2 of regulation no 1380 / 2013 and in particular in paragraphs 1 , 2 , 3 and 5 , and of that article .


### ' recreational fisheries ' means non - commercial fishing activities exploiting marine living aquatic resources for recreation , tourism or sport ; ### ' recreational fisheries ' means non - commercial fishing activities exploiting marine living biological resources for recreation , tourism or sport ;


### in accordance with the procedure set out in article 18 of regulation no 1380 / 2013 member states may submit joint recommendations defining appropriate technical measures at the regional level that deviate from the measures set out in paragraph 1 . ### in accordance with the procedure set out in article 18 of regulation no 1380 / 2013 member states may submit , jointly or individually , common recommendations defining appropriate technical measures at the regional level that deviate from the measures set out in paragraph 1 .


### technical measures recommended in accordance with paragraph 2 shall as a minimum be equivalent in terms of exploitation patterns and level of protection provided for sensitive species and habitats as those measures referred to in paragraph 1 . ### technical measures recommended in accordance with paragraph 2 shall ensure the same level of protection as the measures referred to in paragraph 1 in terms of exploitation patterns and the protection of sensitive species and habitats .


### regional measures under multiannual plans ### technical measures in the context of regionalisation


### the commission shall be empowered to establish technical measures at regional level with the aim of achieving objectives of multiannual plans referred to in articles 9 and 10 of regulation no 1380 / 2013 . such measures shall be established by means of delegated acts adopted in accordance with article 32 of this regulation and article 18 of regulation no 1380 / 2013 . ### the commission shall be empowered to establish technical measures at regional level with the aim of achieving objectives of multiannual plans referred to in articles 9 and 10 of regulation no 1380 / 2013 . nevertheless , even in the absence of multiannual plans and where reasons relating to conservation of marine resources and protection of ecosystems so require , such measures shall be established by means of delegated acts adopted in accordance with article 32 of this regulation and article 18 of regulation no 1380 / 2013 .


### horizontal principles as set out in article 3 of the treaty on european union and in article 10 of the tfeu , including principles of subsidiarity and proportionality as set out in article 5 of the teu , should be respected in the implementation of the erdf and the cohesion fund , taking into account the charter of fundamental rights of the european union . member states should also respect the obligations of the un convention on the rights of persons with disabilities and ensure accessibility in line with its article 9 and in accordance with the union law harmonising accessibility requirements for products and services . member states and the commission should aim at eliminating inequalities and at promoting equality between men and women and integrating the gender perspective , as well as at combating discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation . the funds should not support actions that contribute to any form of segregation . the objectives of the erdf and the cohesion fund should be pursued in the framework of sustainable development and the union ' s promotion of the aim of preserving , protecting and improving the quality of the environment as set out in articles 11 and 191 of the tfeu , taking into account the polluter pays principle . in order to protect the integrity of the internal market , operations benefitting undertakings shall comply with state aid rules as set out in articles 107 and 108 of the tfeu . ### horizontal principles as set out in article 3 of the treaty on european union , with a special focus on combating social exclusion and discrimination , and in article 10 of the tfeu , including principles of subsidiarity and proportionality as set out in article 5 of the teu , should be respected in the implementation of the erdf and the cohesion fund , taking into account the charter of fundamental rights of the european union . member states should also respect the obligations of the un convention on the rights of persons with disabilities and ensure accessibility in line with its article 9 and in accordance with the union law harmonising accessibility requirements for products and services . member states and the commission should aim at eradicating poverty , at eliminating inequalities and at promoting equality between men and women and integrating the gender perspective , as well as at combating discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation . the funds should not support actions that contribute to any form of segregation . the objectives of the erdf and the cohesion fund should be pursued in the framework of sustainable development and the union ' s promotion of the aim of preserving , protecting and improving the quality of the environment as set out in articles 11 and 191 of the tfeu , taking into account the polluter pays principle . in order to protect the integrity of the internal market , operations benefitting undertakings shall comply with state aid rules as set out in articles 107 and 108 of the tfeu .


### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the economic , environmental , climate , demographic and social challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review . ### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the economic , environmental , climate , geographic , demographic and social challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages and linkages to remote island regions . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review .


### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the economic , environmental , climate , demographic and social challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review . ### within the framework of sustainable urban development , it is considered necessary to support integrated territorial development in order to more effectively tackle the social , demographic , economic , environmental and climate challenges affecting urban areas , including functional urban areas , while taking into account the need to promote urban - rural linkages . the principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented , and the indicative amounts for those actions , should be set out in the programmes under the investment for jobs and growth goal with a minimum target of 6% of the erdf resources allocated at national level for that purpose . it should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes , including at the mid - term review .


### a smarter europe by promoting innovative and smart economic transformation ### a smarter europe by promoting inclusive innovative and smart economic transformation


### ' a greener , low - carbon europe by promoting clean and fair energy transition , green and blue investment , the circular economy , climate adaptation and risk prevention and management by : ### ' a greener , low - carbon europe for all by promoting clean and fair energy transition , green and blue investment , the circular economy , climate adaptation and risk prevention and management by :


### a greener , low - carbon europe by promoting clean and fair energy transition , green and blue investment , the circular economy , climate adaptation and risk prevention and management ### a greener , low - carbon europe for all by promoting clean and fair energy transition , green and blue investment , the circular economy , climate adaptation and risk prevention and management


### ' a more connected europe by enhancing mobility and regional ict connectivity ' by : ### ' a more connected europe for all by enhancing mobility and regional ict connectivity ' by :


### a more connected europe by enhancing mobility and regional ict connectivity ### a more connected europe for all by enhancing mobility and regional ict connectivity


### ' a more social europe implementing the european pillar of social rights ' by : ### ' a non - discriminatory , inclusive and more social europe implementing the european pillar of social rights , and eliminating poverty and social exclusion ' by :


### ensuring equal access to health care through developing infrastructure , including primary care ; ### ensuring equal access to high - quality health care through developing infrastructure , including primary care , with a special focus on disadvantaged social groups , such as the roma ;


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


### rco 65 - capacity of rehabilitated housing - other ### capacity of rehabilitated housing - roma


### capacity of supported health care infrastructure ### capacity of supported health care infrastructure - roma


### capacity of supported social infrastructure ### capacity of supported social infrastructure - roma


### occupancy of rehabilitated housing - other ### occupancy of rehabilitated housing - roma


### people with access to improved health care services ### people with access to improved health care services - roma


### annual number of persons using the health care facilities supported ### annual number of persons using the health care facilities supported - roma


### annual number of persons using the social care facilities supported ### annual number of persons using the social care facilities supported - roma


### the communication from the commission of 15 july 2015 ' delivering a new deal for energy consumers30 ' put forward the commission ' s vision for a retail market that better serves energy consumers , including by better linking wholesale and retail markets . taking advantage of new technology , new and innovative energy service companies should enable all consumers to fully participate in the energy transition , managing their consumption to deliver energy efficient solutions which save them money and contribute to overall reduction of energy consumption . __________________ 30 com 339 final of 15 . 7 . 2015 . ### the communication from the commission of 15 july 2015 ' delivering a new deal for energy consumers ' put forward the commission ' s vision for a retail market that better serves energy consumers , including by better linking wholesale and retail markets . taking advantage of new technologies , new and innovative energy service companies should enable all consumers to raise their awareness of their energy consumption and to fully participate in the energy transition , managing their consumption to deliver energy efficient solutions which save them money and contribute to overall reduction of energy consumption . __________________ 30 com 339 final of 15 . 7 . 2015 .


### the communication from the commission of 15 july 2015 ' launching the public consultation process on a new energy market design ' 31 highlighted that the move away from generation in large central power plants towards de - centralized production from renewable energy sources and decarbonized markets requires an adaptation of the current rules of electricity trading and changes to the existing market roles . it underlined needs to organise electricity markets in a more flexible manner and to fully integrate all market players – including renewable energy producers , new energy service providers , energy storage and flexible demand . __________________ 31 com 340 final of 15 . 7 . 2015 . ### the communication from the commission of 15 july 2015 ' launching the public consultation process on a new energy market design ' highlighted that the move away from generation in large central power plants towards de - centralized production from renewable energy sources and decarbonized markets requires an adaptation of the current rules of electricity trading and changes to the roles of existing market participants . it underlined needs to organize electricity markets in a more flexible manner and to fully integrate all market players – including renewable energy producers , new energy service providers , energy storage and flexible demand . __________________ 31 com 340 final of 15 . 7 . 2015 .


### consumers are essential to achieving the flexibility necessary to adapt the electricity system to variable , distributed renewable generation . technological progress in grid management and renewable generation has unlocked many opportunities for consumers , and healthy competition on retail markets will be essential to ensuring the market - driven deployment of innovative new services that cater to the consumers ' changing needs and abilities , while increasing system flexibility . by empowering consumers to participate in the energy market more , and participate in new ways , citizens should benefit from the internal market in electricity and the union ' s renewable targets should be attained . ### consumers are essential to achieving the flexibility necessary to adapt the electricity system to variable and distributed renewable generation . technological progress in grid management and renewable generation has unlocked many opportunities for consumers . healthy competition on retail markets will be essential to ensuring the market - driven deployment of innovative new services that address consumers ' changing needs and abilities , while increasing system flexibility . by empowering consumers to participate in the energy market more , and participate in new ways , citizens should benefit from the internal market in electricity and the union ' s renewable targets should be attained .


### the freedoms which the treaty guarantees the citizens of the union — inter alia , the free movement of goods , the freedom of establishment and the freedom to provide services — are achievable only in a fully open market , which enables all consumers freely to choose their suppliers and all suppliers freely to deliver to their customers . ### the freedoms which the treaty guarantees the citizens of the union — inter alia , the free movement of goods , the freedom of establishment and the freedom to provide services — are achievable only in a fully open and interconnected market , which enables all consumers freely to choose their suppliers and all suppliers freely to deliver to their customers .


### in order to secure competition and the supply of electricity at the most competitive price , member states and national regulatory authorities should facilitate cross - border access for new suppliers of electricity from different energy sources as well as for new providers of power generation , storage and demand response . ### in order to secure competition and the supply of electricity at the most competitive price , member states and national regulatory authorities should facilitate a sufficient level of interconnection capacity , along with cross - border access for new suppliers of electricity from different energy sources as well as for new providers of power generation , storage and demand response .


### all consumers should be able to benefit from directly participating in the market , in particular by adjusting their consumption according to market signals and in return benefit from lower electricity prices or other incentive payments . the benefits of this active participation are likely to increase over time when electric vehicles , heat pumps and other flexible loads become more competitive . consumers should be enabled to participate in all forms of demand response and therefore should have the possibility to opt for having a smart metering system and a dynamic electricity pricing contract . this should allow them to adjust their consumption according to real time price signals that reflect the value and cost of electricity or transportation in different time periods , while member states should ensure a reasonable exposure of consumers to the wholesale price risk . member states should also ensure that those consumers who choose not to actively engage in the market are not penalised but instead their informed decision making on the options available to them should be facilitated in the manner that is the most suitable for domestic market conditions . ### all consumers should be able to benefit from directly participating in the market , in particular by adjusting their consumption according to market signals and in return benefit from lower electricity prices or other incentive payments . the benefits of this active participation are likely to increase over time when the awareness of otherwise passive consumers is raised about their possibilities as active consumers and when the information on the possibilities of active participation are better accessible and known . consumers should be enabled to participate in all forms of demand response and therefore should have the possibility to opt for having a smart metering system and a dynamic electricity pricing contract . this should allow them to adjust their consumption according to real time price signals that reflect the value and cost of electricity or transportation in different time periods , while member states should ensure a reasonable exposure of consumers to the wholesale price risk . consumers should be informed about potential price risk of dynamic price contracts . member states should also ensure that those consumers who choose not to actively engage in the market are not penalised but instead their informed decision making on the options available to them should be facilitated in the manner that is the most suitable for domestic market conditions .


### energy bills and annual statements are an important means through which customers are informed . as well as data on consumption and costs , they can also convey other information that helps consumers to compare their current deal with other offers . however , considering that bill - related disputes are a very common source of consumer complaints , a factor which contributes to persistently low levels of consumer satisfaction and engagement in the energy sector , it is necessary to make bills and annual statements clearer and easier to understand , as well as to ensure that bills contain all the information necessary to enable consumers to regulate their energy consumption , compare offers and switch suppliers . ### energy bills and annual statements are an important means through which customers are informed . energy bills and annual statements provide data on consumption and costs , while they can also convey other information that helps consumers to compare their current deal with other offers . however , considering that bill - related disputes are a very common source of consumer complaints , bills and annual statements contribute to persistently low levels of consumer satisfaction and engagement in the energy sector . therefore it is necessary to make bills and annual statements clearer and easier to understand , as well as to ensure that bills contain all the information necessary to enable consumers to regulate their energy consumption , compare offers and switch suppliers .


### energy services are fundamental to safeguard the well - being of the union citizens . adequate warmth , cooling , lighting and the energy to power appliances are essential services to guarantee a decent standard of living and citizens ' health . furthermore , access to these energy services empowers european citizens to fulfil their potential and it enhances social inclusion . energy poor households are unable to afford these energy services due to a combination of low income , high energy expenditure and poor energy efficiency of their homes . member states should collect the right information to monitor the number of households in energy poverty . accurate measurement should assist member states to identify those households affected by energy poverty in order to provide targeted support . the commission should actively support the implementation of the provisions on energy poverty by facilitating the sharing of good practices between member states . ### energy services are fundamental to safeguard the well - being of the union citizens . adequate warmth , cooling , lighting and the energy to power appliances are essential services to guarantee a decent standard of living and citizens ' health . furthermore , access to these energy services empowers european citizens to fulfil their potential and it enhances social inclusion . energy poor households are unable to afford these energy services due to a combination of low income , high energy expenditure and poor energy efficiency of their homes . member states should provide mechanisms to support the development of more efficient heating and cooling technologies to tackle energy poverty . member states should collect the right and comparable information to monitor the number of households in energy poverty . accurate measurement using unified standards should assist member states to identify those households at risk of energy poverty in order to provide targeted support . member states should also use the energy poverty measurement figures when reporting on the sustainable development goals , namely goal 7 . 1 on universal access to affordable , reliable and modern energy services . the commission should , taking into account , inter alia , the european energy poverty observer , actively and as a priority support the implementation of the provisions on energy poverty by facilitating the sharing of good practices between member states .


### energy services are fundamental to safeguard the well - being of the union citizens . adequate warmth , cooling , lighting and the energy to power appliances are essential services to guarantee a decent standard of living and citizens ' health . furthermore , access to these energy services empowers european citizens to fulfil their potential and it enhances social inclusion . energy poor households are unable to afford these energy services due to a combination of low income , high energy expenditure and poor energy efficiency of their homes . member states should collect the right information to monitor the number of households in energy poverty . accurate measurement should assist member states to identify those households affected by energy poverty in order to provide targeted support . the commission should actively support the implementation of the provisions on energy poverty by facilitating the sharing of good practices between member states . ### energy supply is fundamental to safeguard the well - being of the union citizens . heating , cooling , lighting and the energy to power appliances are essential to guarantee a decent standard of living and citizens ' health . furthermore , access to energy empowers european citizens to fulfil their potential and it enhances social inclusion . energy poor households are unable to afford these energy services due to a combination of low income , high energy expenditure and poor energy efficiency of their homes . member states should collect the right information to monitor the number of households in energy poverty . accurate measurement should assist member states to identify those households affected by energy poverty in order to provide targeted support through their social welfare systems or other policy measures . the commission should actively support the implementation of the provisions on energy poverty by facilitating the sharing of good practices between member states .


### where a closed distribution system is used to ensure the optimal efficiency of an integrated energy supply requiring specific operational standards , or a closed distribution system is maintained primarily for the use of the owner of the system , it should be possible to exempt the distribution system operator from obligations which would constitute an unnecessary administrative burden because of the particular nature of the relationship between the distribution system operator and the users of the system . industrial , commercial or shared services sites such as train station buildings , airports , hospitals , large camping sites with integrated facilities or chemical industry sites can include closed distribution systems because of the specialised nature of their operations . ### where a closed distribution system is used to ensure the optimal efficiency of an integrated energy supply requiring specific operational standards , or a closed distribution system is maintained primarily for the use of the owner of the system , it should be possible to exempt the distribution system operator from obligations which would constitute an unnecessary administrative burden because of the particular nature of the relationship between the distribution system operator and the users of the system . industrial , commercial or shared services sites such as train station buildings , airports , hospitals , campuses of schools and universities , large camping sites with integrated facilities or chemical industry sites can include closed distribution systems because of the specialised nature of their operations .


### where a closed distribution system is used to ensure the optimal efficiency of an integrated energy supply requiring specific operational standards , or a closed distribution system is maintained primarily for the use of the owner of the system , it should be possible to exempt the distribution system operator from obligations which would constitute an unnecessary administrative burden because of the particular nature of the relationship between the distribution system operator and the users of the system . industrial , commercial or shared services sites such as train station buildings , airports , hospitals , large camping sites with integrated facilities or chemical industry sites can include closed distribution systems because of the specialised nature of their operations . ### where a closed distribution system is used to ensure the optimal efficiency of an integrated energy supply requiring specific operational standards , or when a closed distribution system is maintained primarily for the use of the owner of the system , it should be possible to exempt the distribution system operator from obligations which would constitute an unnecessary administrative burden because of the particular nature of the relationship between the distribution system operator and the users of the system . industrial , commercial or shared services sites such as train station buildings , airports , hospitals , large camping sites with integrated facilities or chemical industry sites can include closed distribution systems because of the specialised nature of their operations .


### ' energy storage ' means , in the electricity system , deferring an amount of the electricity that was generated to the moment of use , either as final energy or converted into another energy carrier . ### ' energy storage ' means , in the electricity system , deferring an amount of electricity , over an amount of time , from the moment of generation to the moment of use , either as final energy or converted into another energy carrier . ‘ energy storage’ is able to offer multiple services to energy markets at the same time , using the same or multiple unit .


### member states shall ensure that their national legislation does not unduly hamper cross - border flows of electricity , consumer participation including through demand&#8211 ; side response , investments into flexible energy generation , energy storage , the deployment of electro - mobility or new interconnectors , and that electricity prices reflect actual demand and supply . ### member states shall ensure that their national legislation promotes cross - border transactions relating to electricity , consumer participation including through market - based demand&#8211 ; side response , investments into flexible energy generation , energy storage , the deployment of electro - mobility or new interconnectors , smart grid technology , and that electricity prices reflect actual demand and supply . member states shall ensure open and accessible consumer participation in the electricity market .


### member states shall ensure that their national legislation does not unduly hamper cross - border flows of electricity , consumer participation including through demand&#8211 ; side response , investments into flexible energy generation , energy storage , the deployment of electro - mobility or new interconnectors , and that electricity prices reflect actual demand and supply . ### member states shall ensure that their national legislation does not unduly hamper cross - border flows of electricity , consumer participation including through demand&#8211 ; side response , investments into flexible energy generation , energy storage , clean energy , for now and in the future , the deployment of electro - mobility or new interconnectors , and that electricity prices reflect actual demand and supply .


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


### all electricity producers and electricity supply undertakings established within their territory to supply their own premises , subsidiaries and customers through a direct line ; ### all electricity producers and electricity supply undertakings established within their territory to supply their own premises , subsidiaries and customers through a direct line without being subject to disproportionate administrative procedures or costs related for instance to the need for a supply licence ;


### - the duration of the contract , the conditions for renewal and termination of services and of the contract , ### - the duration of the contract , the conditions for renewal and termination of services including additional products and / or services and of the contract and whether withdrawal from the contract without charge is permitted ,


### - the duration of the contract , the conditions for renewal and termination of services and of the contract , ### - the duration of the contract , the conditions for renewal and termination of services including additional products and / or services and of the contract


### member states shall ensure that final customers are fully informed by the suppliers of the opportunities and risks of such dynamic electricity price contract . ### member states shall ensure that final customers are fully informed by the suppliers of the opportunities and risks of such dynamic electricity price contract , including , where appropriate , the installation of a smart meter at a reasonable cost , and that final consumers can terminate the contract if it proves to be too expensive .


### member states shall ensure that final customers are fully informed by the suppliers of the opportunities and risks of such dynamic electricity price contract . ### member states shall ensure that final customers are fully informed by the suppliers of the opportunities and risks of such dynamic electricity price contracts and that suppliers take reasonable steps to ensure that customers do not sign up to unsuitable contracts .


### member states shall ensure that customers have access , free of charge , to at least one tool comparing the offers of suppliers that meets the certification criteria set out in annex i . the comparison tools may be operated by any entity , including private companies and public authorities or bodies . customers should be informed of the availability of such tools . ### member states shall ensure that customers have access , free of charge , to at least one tool comparing the offers from both individual and bundled contracts , including dynamic price contracts , offers from electricity suppliers , electricity service providers and independent aggregators that meets at least the certification criteria set out in annex i . the comparison tools may be operated by any entity , including private companies and public authorities or bodies . at least one tool per member states shall cover the whole of the market . customers should be informed of the availability of such tools including in or alongside their bills .


### the energy installation required for the activities of the active customer may be managed by a third party for installation , operation , including metering and maintenance . ### the energy installation required for the activities of the active customer may be managed by a third party for installation , operation , including metering and maintenance . member states shall ensure that active customers owning a storage facility : have the right to a grid connection within a reasonable time following the request ; are not subject to additional taxes , surcharges , and fees for the electricity stored in the storage facility ; are distinguished from generators and not subject to related licensing requirements and fees ; are allowed to provide several services simultaneously , if technically feasible ;


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


### transparent rules clearly assigning roles and responsibilities to all market participants ; ### transparent rules clearly assigning roles and responsibilities to all market participants ; including the need to respect operational security of distribution and transmission grid by all market participants ;


### if final customers request it , metering data on their electricity input and off - take shall be made available to them , via a local standardised communication interface and / or remote access , or to a third party acting on their behalf , in an easily understandable format as provided for in article 24 , allowing them to compare deals on a like - for - like basis ; ### if final customers request it , unvalidated near real - time metering data on their electricity input and off - take shall be made available to them , via a local standardised communication interface and / or remote access , or to a third party acting on their behalf , in an easily understandable format as provided for in article 24 , allowing them to compare deals on alike - for - like basis and shall be transferred to a third party upon the request of final customers without being charged fees ;


### if final customers request it , metering data on their electricity input and off - take shall be made available to them , via a local standardised communication interface and / or remote access , or to a third party acting on their behalf , in an easily understandable format as provided for in article 24 , allowing them to compare deals on a like - for - like basis ; ### if final customers request it , metering data on their electricity input and off - take shall be made available to them , via a local standardised communication interface and / or remote access , or to a third party acting on their behalf , as close as possible to real time , in an easily understandable format as provided for in article 24 , allowing them to compare deals on a like - for - like basis


### when setting up the rules regarding the management and exchange of data , member states or , where a member state has so provided , the designated competent authorities shall specify the eligible parties which may have access to data of the final customer with their explicit consent in accordance with regulation 2016 / 679 of the european parliament and of the council44 . for the purpose of this directive , data shall include metering and consumption data as well as data required for consumer switching . eligible parties shall include at least customers , suppliers , transmission and distribution system operators , aggregators , energy service companies , and other parties which provide energy or other services to customers . __________________ 44 regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec . ### when setting up the rules regarding the management and exchange of data , member states or , where a member state has so provided , the designated competent authorities shall specify the eligible parties which may have access to data of the final customer with their explicit consent in accordance with regulation 2016 / 679 of the european parliament and of the council44 . for the purpose of this directive , data shall include metering and consumption data as well as data required for consumer switching . eligible parties shall include at least customers , suppliers , transmission and distribution system operators , aggregators , energy service companies , and other parties which provide energy or other services to customers . upon request , eligible parties shall provide customers with an overview of the parties who have access to their data . __________________ 44 regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec .


### no additional costs shall be charged to final customers for access to their data . member states shall be responsible for setting the relevant costs for access to data by eligible parties . regulated entities which provide data services shall not profit from that activity . ### no additional costs shall be charged to final customers for access to their data . member states shall be responsible for setting the relevant costs for access to data by eligible parties . regulated entities which provide data services shall be able to fully recover costs related to metering infrastructure .


### member states shall ensure the provision of single points of contact to provide customers with all necessary information concerning their rights , current legislation and the means of dispute settlement available to them in the event of a dispute . such contact points may be part of general consumer information points . ### member states shall ensure the provision of single points of contact to provide customers consumers with all necessary information concerning their rights , current legislation , accredited comparison tools and the means of dispute settlement available to them in the event of a dispute between the final customer and the electricity supplier , energy service provider , aggregator or any other intermediary . such contact points may be part of general consumer information points .


### member states shall take appropriate measures , such as formulating national energy action plans , providing benefits in social security systems to ensure the necessary electricity supply to vulnerable customers , or providing for support for energy efficiency improvements , to address energy poverty where identified , including in the broader context of poverty . such measures shall not impede the effective opening of the market set out in article 4 or market functioning and shall be notified to the commission , where relevant , in accordance with the provisions of article 9 . such notification may also include measures taken within the general social security system . ### member states shall take appropriate measures , such as formulating national energy action plans , providing benefits in social security systems to ensure the necessary electricity supply to vulnerable customers , providing support for the development of more efficient heating and cooling technologies , and providing for support for energy efficiency improvements , to address energy poverty where identified , including in the broader context of poverty . such measures shall not impede the effective opening of the market set out in article 4 or market functioning and shall be notified to the commission , where relevant , in accordance with the provisions of article 9 . such notification may also include measures taken within the general social security system .


### each distribution system operator shall procure the energy it uses to cover energy losses and the non - frequency ancillary services in its system according to transparent , non - discriminatory and market based procedures , whenever it has such a function . unless justified by a cost - benefit analysis , the procurement of non - frequency ancillary services by a distribution system operator shall be transparent , non - discriminatory and market - based ensuring effective participation of all market participants including renewable energy sources , demand response , energy storage facilities and aggregators , in particular by requiring regulatory authorities or distribution system operators in close cooperation with all market participants , to define technical modalities for participation in these markets on the basis of the technical requirements of these markets and the capabilities of all market participants . ### each distribution system operator shall act as a neutral market facilitator in procuring the energy it uses to cover energy losses and reserve capacity the non - frequency ancillary services in its system according to transparent , non - discriminatory and market based procedures , whenever it has such a function . unless justified by a cost - benefit analysis , the procurement of non - frequency ancillary services by a distribution system operator shall be transparent , non - discriminatory and market - based ensuring effective participation of all market participants including renewable energy sources , demand response , energy storage facilities and aggregators , in particular by requiring regulatory authorities or distribution system operators in close cooperation with all market participants , to define technical modalities for participation in these markets on the basis of the technical requirements of these markets and the capabilities of all market participants .


### member states shall provide the necessary regulatory framework to allow and incentivise distribution system operators to procure services in order to improve efficiencies in the operation and development of the distribution system , including local congestion management . in particular , regulatory frameworks shall enable distribution system operators to procure services from resources such as distributed generation , demand response or storage and consider energy efficiency measures , which may supplant the need to upgrade or replace electricity capacity and which support the efficient and secure operation of the distribution system . distribution system operators shall procure these services according to transparent , non - discriminatory and market based procedures . ### member states shall provide the necessary regulatory framework to allow and incentivise distribution system operators to procure and use services in order to improve efficiencies in the operation and development of the distribution system , including local congestion management . in particular , regulatory frameworks shall enable distribution system operators to procure and use services from resources such as distributed generation , demand response or storage and consider energy efficiency measures , which may supplant the need to upgrade or replace electricity capacity and which support the efficient and secure operation of the distribution system . distribution system operators shall procure these services according to transparent , non - discriminatory and market based procedures .


### member states shall provide the necessary regulatory framework to facilitate the connection of publicly accessible and private recharging points to the distribution networks . member states shall ensure that distribution system operators cooperate on a non - discriminatory basis with any undertaking that owns , develops , operates or manages recharging points for electric vehicles , including with regard to connection to the grid . ### member states , also taking into account investments already made , shall provide the necessary regulatory framework to facilitate the connection of publicly accessible and private recharging points to the distribution networks . member states shall ensure that distribution system operators cooperate on a non - discriminatory basis with any undertaking that owns , develops , operates or manages recharging points for electric vehicles , including with regard to connection to the grid .


### by way of derogation from paragraph 1 , member states may allow distribution system operators to own , develop , manage or operate storage facilities only if the following conditions are fulfilled : ### distribution system operators shall be allowed to own , develop , manage or operate energy storage facilities only if such facilities are necessary for the distribution system operator to fulfil its obligations under this directive for efficient , reliable and secure operation of the distribution system and the following conditions are fulfilled :


### adopting a framework for the cooperation and coordination between regional operational centres . ### cooperating with the agency , regional coordination centres and the entso for electricity on the adoption of a framework for the cooperation and coordination between regional coordination centres


### monitoring the availability of comparison websites , including comparison tools that fulfil the criteria set out in article 14 and annex i . ### monitoring the availability of comparison tools , including comparison websites , apps and other interactive means that fulfil the criteria set out in article 14 and annex i .


### be operationally independent and ensure that suppliers are given equal treatment in search results ; ### be independent from all market players and ensure that all suppliers are given equal treatment in search results ;


### include an as complete a range of electricity offers as practicable covering a significant part of the market and , where the information presented is not a complete overview of the market , a clear statement to that effect , before displaying results ; and ### include an as complete a range of energy offers as practicable covering a significant part of the market and both dynamic and non - dynamic tariffs , individual and bundled contracts , from suppliers , aggregators and service providers , where the information presented is not a complete overview of the market , a clear statement to that effect , before displaying results ; and


### the following information shall be prominently displayed to final customers in their bills and periodical settlement bills : ### the following key information shall be prominently displayed to final customers in their bills and periodical settlement bills distinctly apart from other parts of the bill :


### the following information shall be prominently displayed to final customers in their bills and periodical settlement bills : ### the following billing information shall be made available to final customers :


### it is therefore appropriate to establish a programme for the internal market , competitiveness of enterprises , including micro , small and medium - sized enterprises , and european statistics . the programme should be established for the duration of seven years from 2021 to 2027 . ### it is therefore appropriate to establish a programme for the internal market , competitiveness of enterprises , including micro , small and medium - sized enterprises , clusters , enterprise networks , consortium of companies and european statistics . the programme should be established for the duration of seven years from 2021 to 2027 .


### the programme should support the design , implementation and enforcement of union legislation underpinning the proper functioning of the internal market . the programme should support the creation of the right conditions to empower all actors of the internal market : businesses , citizens including consumers , civil society and public authorities . to that end , the programme should aim to ensure the competitiveness of businesses , notably smes , but also supporting the enforcement of consumer protection and safety rules and by raising the awareness of businesses and individuals by providing them with the right tools , knowledge and competence to make informed decisions and strengthen their participation in union’s policy - making . furthermore , the programme should aim to enhance regulatory and administrative cooperation , notably through exchange of best practices , building of knowledge and competence bases , including the use of strategic public procurement . the programme should also aim to support the development of high - quality international standards that underpin the implementation of union legislation . this also includes standard setting in the field of financial reporting and audit , thereby contributing to the transparency and well - functioning of the union’s capital markets and to enhancing investor protection . the programme should support rulemaking and standard setting also by ensuring the broadest possible stakeholder involvement . the objective of the programme should also be to support the implementation and enforcement of union legislation providing for a high level of health for humans , animals and plants along the food chain and the improvement of the welfare of animals . ### the programme should support the design , implementation and enforcement of union legislation underpinning the proper functioning of the internal market . the programme should support the creation of the right conditions to empower all actors of the internal market : businesses , citizens including consumers , civil society and public authorities building on the success of the current program for competitiveness small and medium enterprises . to that end , the programme should aim to ensure the competitiveness of businesses , notably smes , but also supporting the enforcement of consumer protection and safety rules and by raising the awareness of businesses and individuals by providing them with the right tools , knowledge and competence to make informed decisions and strengthen their participation in union’s policy - making . furthermore , the programme should aim to enhance regulatory and administrative cooperation , notably through exchange of best practices , building of knowledge and competence bases , including the use of strategic public procurement . the programme should also aim to support the development of high - quality international standards that underpin the implementation of union legislation . this also includes standard setting in the field of financial reporting and audit , thereby contributing to the transparency and well - functioning of the union’s capital markets and to enhancing investor protection . the programme should support rulemaking and standard setting also by ensuring the broadest possible stakeholder involvement . the objective of the programme should also be to support the implementation and enforcement of union legislation providing for a high level of health for humans , animals and plants along the food chain and the improvement of the welfare of animals .


### smes share common challenges that do not affect larger firms to the same extent to obtain finance , to find skilled work force , to alleviate administrative burden , to take - up creativity and innovation , to access markets and foster internationalisation activities . the programme should address such market failures proportionally , while not unduly distorting competition in the internal market . ### smes share common challenges that do not affect larger firms to the same extent to obtain finance , to find skilled work force , to alleviate administrative burden , to take - up creativity and innovation , to access markets and to create ecosystems aiming at introducing technological and organisational innovation in the production processes , which are essential to stay and grow in the market , and to foster internationalisation activities .


### the programme should provide effective support for smes throughout their life - cycle . it should build on the unique knowledge and expertise developed with regard to smes and industrial sectors and on a long experience in working with european , national and regional stakeholders . this support should build on the successful experience of the enterprise europe network as a one - stop - shop to improve smes competitiveness and develop their business in the single market and beyond . the network plans to continue delivering services on behalf of other union programmes , notably for the horizon2020 programme , using the financial resources of these programmes . also the mentoring scheme for new entrepreneurs should remain the tool to enable new or aspiring entrepreneurs to gain business experience by matching with an experienced entrepreneur from another country and thus allow strengthening entrepreneurial talents . the programme should further strive to grow and extend its geographical coverage and thus offer wider range of matching possibilities to entrepreneurs in complementarity with other union initiatives where relevant . ### the programme should provide effective support for smes throughout their life - cycle . it should build on the unique knowledge and expertise developed with regard to smes and industrial and entrepreneurial sectors and on a long experience in working with european , national and regional stakeholders . this support should build on the successful experience of the enterprise europe network as a one - stop - shop to improve smes competitiveness and develop their business in the single market and beyond . the network plans to continue delivering services on behalf of other union programmes , notably for the horizon2020 programme , using the financial resources of these programmes . also the mentoring scheme for new entrepreneurs - erasmus for entrepreneurs - should remain the tool to enable new or aspiring entrepreneurs to gain business experience by matching with an experienced entrepreneur from another country and thus allow strengthening entrepreneurial talents . the programme should further strive to grow and extend its geographical coverage and thus offer wider range of matching possibilities to entrepreneurs in complementarity with other union initiatives where relevant .


### clusters are a strategic tool for supporting the competitiveness and scaling - up of smes as they offer favourable business environments . joint cluster initiatives should achieve critical mass to accelerate the growth of smes . by connecting specialised eco - systems , clusters create new business opportunities for smes and integrate them better in european and global strategic value chains . support should be provided for the development of transnational partnership strategies and the implementation of joint activities , supported by the european cluster collaboration platform . sustainable partnering should be encouraged with continuation funding if performance and participation milestones are reached . direct support to smes should be channelled through cluster organisations for the following : uptake of advanced technologies , new business models , low - carbon and resource - efficient solutions , creativity and design , skills upgrading , talent attraction , entrepreneurship acceleration , and internationalisation . other specialised sme support actors should be associated to facilitate industrial transformation and implementations of smart specialisation strategies . the programme should thus contribute to growth and build linkages with the union’s innovation hubs and investments made under cohesion policy and horizon europe . synergies with the erasmus programme can also be explored . ### clusters are a strategic tool for supporting the competitiveness and scaling - up of smes as they offer favourable business environments , increase competitiveness and sustainable development of industry and services and strengthen the economic development of the regions through the creation of jobs . joint cluster initiatives should achieve critical mass to accelerate the growth of smes . by connecting specialised eco - systems , clusters create new business opportunities for smes and integrate them better in european and global strategic value chains . support should be provided for the development of transnational partnership strategies and the implementation of joint activities , supported by the european cluster collaboration platform . sustainable partnering should be encouraged with continuation funding if performance and participation milestones are reached . direct support to smes should be channelled through cluster organisations for the following : uptake of advanced technologies , new business models , low - carbon and resource - efficient solutions , creativity and design , skills upgrading , talent attraction , entrepreneurship acceleration , and internationalisation . other specialised sme support actors should be associated to facilitate industrial transformation and implementations of smart specialisation strategies . the programme should thus contribute to growth and build linkages with the union’s innovation hubs and investments made under cohesion policy and horizon europe . synergies with the erasmus programme can also be explored .


### making the internal market more effective , facilitating the prevention and removal of obstacles , supporting the development , implementation and enforcement of the union law in the areas of the internal market for goods and services , public procurement , market surveillance as well as in the areas of company law and contract and extra - contractual law , anti - money laundering , free movement of capital , financial services and competition , including the development of governance tools ; ### making the internal market more effective , promoting local economic development , facilitating the prevention and removal of obstacles , supporting the development , implementation and enforcement of the union law in the areas of the internal market for goods and services , social economy and social entrepreneurship , public procurement , market surveillance as well as in the areas of company law and contract and extra - contractual law , anti - money laundering , free movement of capital , financial services and competition , including the development of governance tools ;


### eur 1 000 000 000 to the objective referred to in article 3 ; ### eur 2 772 000 000 in 2018 prices to the objective referred to in article3 ;


### facilitating smes’ access to markets , supporting them in addressing global and societal challenges and business internationalisation , and strengthening union industrial leadership in global value chains , including the enterprise europe network ; ### facilitating smes’ access to markets , supporting them in addressing global and societal challenges and business internationalisation , and strengthening union entrepreneurial and industrial leadership in global value chains , including the enterprise europe network ;


### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 2 % from 2021 onwards , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable . ### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , so as to prevent discrimination against any energy producer , while earmarking funding for technological modernisation designed to cut emissions , with an annual reduction factor of 2 . 2 % from 2021 onwards , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable .


### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 2% from 2021 onwards , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable . ### the european council confirmed that a well - functioning , reformed eu ets with an instrument to stabilise the market will be the main european instrument to achieve this target , with an annual reduction factor of 2 . 2% from 2021 onwards , free allocation not expiring but existing measures continuing after 2020 to prevent the risk of carbon leakage due to climate policy , as long as no comparable efforts are undertaken in other major economies , without reducing the share of allowances to be auctioned . the auction share should be expressed as a percentage figure in the legislation , to enhance planning certainty as regards investment decisions , to increase transparency and to render the overall system simpler and more easily understandable . however , those orientations decided by the european council may not be sufficient to fulfil the eu ' s commitments taken during the cop21 , therefore an annual reduction factor of 2 . 4% is advisable .


### it is a key union priority to establish a resilient energy union to provide secure , sustainable , competitive and affordable energy to its citizens . achieving this requires continuation of ambitious climate action with the eu ets as the cornerstone of europe’s climate policy , and progress on the other aspects of energy union17 . implementing the ambition decided in the 2030 framework contributes to delivering a meaningful carbon price and continuing to stimulate cost - efficient greenhouse gas emission reductions . __________________ 17 com80 , establishing a framework strategy for a resilient energy union with a forward - looking climate change policy ### it is a key union priority to establish a resilient energy union to provide secure , sustainable , competitive and affordable energy to its citizens . achieving this requires continuation of ambitious climate action with the eu ets as the cornerstone of europe’s climate policy , and progress on the other aspects of energy union17 . implementing the ambition decided in the 2030 framework contributes to delivering a meaningful carbon price and continuing to stimulate cost - efficient greenhouse gas emission reductions . regrets that the carbon price signal is right now too weak to induce low carbon investment in eu for industries . whereas the eu is facing a serious investment leakage to third countries , whereas on the other hand a number of undertakings have been pursuing strategies focusing on short - term financial returns at the detriment of innovation , investments in r&d , employment and skills ' renewal ; whereas production innovation has a positive effect on employment growth in all phases of the business cycle of industries ; whereas involving workers in innovation and strategy definition is the best way to guarantee economic and environmental success . __________________ 17 com80 , establishing a framework strategy for a resilient energy union with a forward - looking climate change policy


### the auctioning of allowances remains the general rule , with free allocation as the exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec . ### the share of allowances to be auctioned should be the 52% . this 52% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / 1814 of the european parliament and of the council 19 . __________________ 19 decision 2015 / 1814 of the european parliament and of the council of 6 october 2015 concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec .


### the main long - term incentive from this directive for the capture and storage of co2 , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project . ### the main long - term incentive from this directive for the capture and storage of co2 , capture and re - use of co2 , new renewable energy and substitution technologies and breakthrough innovation in low - carbon technologies , bio - based materials and products substituting carbon intensive materials and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs / ccu facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs / ccu facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project .


### eu ets funding should be coherent with other union funding programmes , including european structural and investment funds , so as to ensure the effectiveness of public spending . ### eu ets funding should be consistent with the with the european and member states ' climate and energy policy objectives and in line with the goals of the energy union with forward looking climate policy and other union funding programmes , so as to ensure the effectiveness of public spending .


### eu ets funding should be coherent with other union funding programmes , including european structural and investment funds , so as to ensure the effectiveness of public spending . ### eu ets funding should be coherent with other union funding programmes , including european structural and investment funds , horizon 2020 and the european fund for strategic investments so as to ensure the effectiveness of public spending .


### the existing provisions which are in place for small installations to be excluded from the eu ets allow the installations which are excluded to remain so , and it should be made possible for member states to update their list of excluded installations and for member states currently not making use of this option to do so at the beginning of each trading period . ### the existing provisions which are in place for small installations to be excluded from the eu ets allow the installations which are excluded to remain so , and it should be made possible for member states to update their list of excluded installations and for member states currently not making use of this option to do so at the beginning and in the middle of each trading period .


### allowances from the maximum amount referred to article 10a of this directive which were not allocated for free up to 2020 shall be set aside for new entrants and significant production increases , together with 250 million allowances placed in the market stability reserve pursuant to article 1 of decision 2015 / … of the european parliament and of the council . ### any allowances from the maximum amount referred to article 10a which were not allocated for free up to 2020 because of the application of article 10a shall be placed into a reserve , together with 250 million allowances placed in the market stability reserve pursuant to article 1 of decision 2015 / … of the european parliament and of the council . in the event that this reserve is exhausted , the commission shall be empowered to adopt a delegated act in accordance with article 23 transferring allowances into this reserve from the market stability reserve established by decision 2015 / . . . .


### allowances from the maximum amount referred to article 10a of this directive which were not allocated for free up to 2020 shall be set aside for new entrants and significant production increases , together with 250 million allowances placed in the market stability reserve pursuant to article 1 of decision 2015 / … of the european parliament and of the council . ### allowances from the maximum amount referred to article 10a of this directive which were not allocated for free up to 2020 shall be set aside for new entrants and significant production increases , and for adjusting the maximum level of free allocation laid down in paragraph 5 together with allowances placed in the market stability reserve pursuant to article 1 of decision 2015 / … of the european parliament and of the council .


### allowances from the maximum amount referred to article 10a of this directive which were not allocated for free up to 2020 shall be set aside for new entrants and significant production increases , together with 250 million allowances placed in the market stability reserve pursuant to article 1 of decision 2015 / … of the european parliament and of the council . ### allowances from the maximum amount referred to article 10a of this directive which were not allocated for free up to 2020 shall be set aside for new entrants and significant production increases , together with the allowances placed in the market stability reserve pursuant to article 1 of decision 2015 / … of the european parliament and of the council , and for adjusting the maximum level of free allocations , as set out in the second sentence of paragraph 5 .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 600 million allowances shall be available to leverage investment in support innovation in low - carbon products , technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration and pilot projects that aim at the environmentally safe capture and geological storage of co2 or the environmentally safe capture and re - use of co2 , as well as demonstration and pilot projects of innovative renewable energy technologies and energy storage , in the territory of the union . the leveraging can take the form of future contracts based on an anticipated co2 price of 30 euros / t by 2030 and guaranteed / refundable by the ecb .


### 400 million allowances shall be available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union . ### 400 million allowances from the share of allowances to be allocated for free shall be made available to support innovation in low - carbon technologies and processes in industrial sectors listed in annex i , and to help stimulate the construction and operation of commercial demonstration projects that aim at the environmentally safe capture and geological storage of co2 as well as demonstration projects of innovative renewable energy technologies , in the territory of the union .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial products , technologies and processes in existing and new installations and support for demonstration and pilot projects for the development of a wide range of ccs , ccu and innovative renewable energy technologies that are not yet commercially viable , ensuring a degree of geographical and sectoral balance in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed .


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for the entire range of innovation in low - carbon industrial technologies and processes and concepts for existing and new installations as well as support for demonstration projects for the development of a wide range of ccs , ccu and innovative renewable energy technologies and concepts that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 75% of the relevant costs of projects may be supported , out of which up to 55% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed .


### by 31 december 2019 , the commission shall adopt a delegated act for the preceding paragraphs for activities at a 4 - digit level as concerns paragraph 1 , in accordance with article 23 , based on data for the three most recent calendar years available . ### by 31 december 2019 , the commission shall adopt a delegated act for the preceding paragraphs for activities at a 4 - digit level as concerns paragraph 1 , in accordance with article 23 . as concern paragraph 1 , the product calculated shall be based on data for the three most recent calendar years available using for each sector or sub - sector the 4 - , 6 - , 8 - digit level code , or the most appropriated level of disaggregation based on public and sectors specific data


### the investments supported shall be consistent with the aims of this directive and the european fund for strategic investments . ### the investments supported shall be proposed by beneficiary member states and be consistent with the aims and criteria of this directive and of the european fund for strategic investments , as well as with the global eu energy and climate goals for 2030 and 2050 .


### a list of installations covered by this directive for the five years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent five years shall be submitted every five years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . free allocations shall only be given to installations where such information is provided . ### a list of installations covered by this directive for the five years beginning on 1 january 2021 shall be submitted by 30 september 2018 , and lists for the subsequent five years shall be submitted every five years thereafter . each list shall include information on production activity , transfers of heat and gases , electricity production and emissions at sub - installation level over the five calendar years preceding its submission . production activity shall be updated yearly in order to allow for a more dynamic allocation . free allocations shall only be given to installations where such information is provided .


### the commission shall be empowered to adopt delegated acts for such a regulation for the monitoring and reporting of emissions and activity data in accordance with article 23 ### the commission shall be empowered to adopt delegated acts for such a regulation for the monitoring and reporting of emissions and activity data in accordance with article 23 . as regards monitoring , reporting and verification of emissions , the commission shall monitor the effective and coherent application and enforcement of penalty procedures at national level . the commission shall establish an effective monitoring system for cross - border transactions of emission allowances at eu level to mitigate the risk of abuse and fraudulent activities .


### appropriate safeguard measures should be envisaged in case the stock size falls below these levels . safeguard measures should include the reduction of fishing opportunities and specific conservation measures when scientific advice states that remedial measures are needed . these measures should be supplemented by all other measures , as appropriate , such as commission measures in accordance with article 12 of regulation no 1380 / 2013 or member state measures in accordance with article 13 of regulation no 1380 / 2013 . ### appropriate safeguard measures should be envisaged in case the stock size falls below these levels . safeguard measures should include the reduction of fishing opportunities and specific conservation measures when the best available scientific advice states that remedial measures are needed . these measures should be supplemented by all other measures , as appropriate , such as commission measures in accordance with article 12 of regulation no 1380 / 2013 or member state measures in accordance with article 13 of regulation no 1380 / 2013 .


### it is appropriate to set the tac for norway lobster in ices zones iia and iv as the sum of the catch limits established for each functional unit and of the statistical rectangles outside the functional units within that tac area . however , this does not preclude the adoption of measures to protect specific functional units . ### it is appropriate to define a separate tac for norway lobster for each functional unit wherever possible . separate measures to protect the respective functional units may be taken .


### thresholds should be established for the demersal stocks that a fishing vessel is required to land in a designated port or a place close to the shore , in accordance with article 43 of regulation no 1224 / 2009 . moreover , when designating these ports or places close to the shore , member states should apply the criteria provided in article 43 of that regulation in such a way as to ensure effective control of the stocks covered by this regulation . ### thresholds should be established for the demersal stocks that a fishing vessel is required to land in a designated port or a place close to the shore , in accordance with article 43 of regulation no 1224 / 2009 . moreover , when designating those ports or places close to the shore , member states should apply the criteria provided for in article 43 of that regulation in such a way as to ensure effective control of the landing of catches covered by this regulation .