# Regulation (EU) No 347/2013 of the European Parliament and of the CouncilShow full title

Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European            energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and            (EC) No 715/2009 (Text with EEA relevance)         

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# Regulation (EU) No 347/2013 of the European Parliament and of the Council

# of 17 April 2013

# on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC)                        No 713/2009, (EC) No 714/2009 and (EC) No 715/2009                     

# (Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 172 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee(1),                        

Having regard to the opinion of the Committee of the Regions(2),                        

Acting in accordance with the ordinary legislative procedure(3),                        

Whereas:

(1)On 26 March 2010, the European Council agreed to the Commission’s proposal to launch a new strategy ‘Europe 2020’. One of                              the priorities of the Europe 2020 strategy is sustainable growth to be achieved by promoting a more resource-efficient, more                              sustainable and more competitive economy. That strategy put energy infrastructures at the forefront as part of the flagship                              initiative ‘Resource efficient Europe’, by underlining the need to urgently upgrade Europe’s networks, interconnecting them                              at the continental level, in particular to integrate renewable energy sources.

(2)The target agreed in the conclusions of the March 2002 Barcelona European Council for Member States to have a level of electricity                              interconnections equivalent to at least to 10 % of their installed production capacity has not yet been achieved.

(3)The communication from the Commission entitled ‘Energy infrastructure priorities for 2020 and beyond — A Blueprint for an                              integrated European energy network’, followed by the Council conclusions of 28 February 2011 and the European Parliament resolution(4), called for a new energy infrastructure policy to optimise network development at European level for the period up to 2020                              and beyond, in order to allow the Union to meet its core energy policy objectives of competitiveness, sustainability and security                              of supply.

(4)The European Council of 4 February 2011 underlined the need to modernise and expand Europe’s energy infrastructure and to                              interconnect networks across borders, in order to make solidarity between Member States operational, to provide for alternative                              supply or transit routes and sources of energy and to develop renewable energy sources in competition with traditional sources.                              It insisted that no Member State should remain isolated from the European gas and electricity networks after 2015 or see its                              energy security jeopardised by lack of the appropriate connections.

(5)Decision No 1364/2006/EC of the European Parliament and of the Council(5) lays down guidelines for trans-European energy networks (TEN-E). Those guidelines have as objectives to support the completion                              of the Union internal energy market while encouraging the rational production, transportation, distribution and use of energy                              resources, to reduce the isolation of less-favoured and island regions, to secure and diversify the Union’s energy supplies,                              sources and routes, including through cooperation with third countries, and to contribute to sustainable development and protection                              of the environment.

(6)Evaluation of the current TEN-E framework has clearly shown that this framework, while making a positive contribution to selected                              projects by giving them political visibility, lacks vision, focus, and flexibility to fill identified infrastructure gaps.                              The Union should therefore increase its efforts to meet future challenges in this field, and due attention should be paid                              to identifying potential future gaps in energy demand and supply.

(7)Accelerating the refurbishment of existing energy infrastructure and the deployment of new energy infrastructure is vital                              to achieve the Union’s energy and climate policy objectives, consisting of completing the internal market in energy, guaranteeing                              security of supply, in particular for gas and oil, reducing greenhouse gas emissions by 20 % (30 % if the conditions are right),                              increasing the share of renewable energy in final energy consumption to 20 %(6) and achieving a 20 % increase in energy efficiency by 2020 whereby energy efficiency gains may contribute to reducing the                              need for construction of new infrastructures. At the same time, the Union has to prepare its infrastructure for further decarbonisation                              of its energy system in the longer term towards 2050. This Regulation should therefore also be able to accommodate possible                              future Union energy and climate policy objectives.

(8)Despite the fact that Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common                              rules for the internal market in electricity(7) and Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal                              market in natural gas(8) provide for an internal market in energy, the market remains fragmented due to insufficient interconnections between national                              energy networks and to the suboptimal utilisation of existing energy infrastructure. However, Union-wide integrated networks                              and deployment of smart grids are vital for ensuring a competitive and properly functioning integrated market, for achieving                              an optimal utilisation of energy infrastructure, for increased energy efficiency and integration of distributed renewable                              energy sources and for promoting growth, employment and sustainable development.

(9)The Union’s energy infrastructure should be upgraded in order to prevent technical failure and to increase its resilience                              against such failure, natural or man-made disasters, adverse effects of climate change and threats to its security, in particular                              as regards European critical infrastructures as set out in Council Directive 2008/114/EC of 8 December 2008 on the identification                              and designation of European critical infrastructures and the assessment of the need to improve their protection(9).

(10)Transporting oil through land pipelines rather than over water can make an important contribution to lowering the environmental                              risk associated with the transportation of oil.

(11)The importance of smart grids in achieving the Union’s energy policy objectives has been acknowledged in the communication                              from the Commission of 12 April 2011 entitled ‘Smart grids: from innovation to deployment’.

(12)Energy storage facilities and reception, storage and regasification or decompression facilities for liquefied natural gas                              (LNG) and compressed natural gas (CNG) have an increasingly important role to play in the European energy infrastructure.                              The expansion of such energy infrastructure facilities forms an important component of a well-functioning network infrastructure.

(13)The communication from the Commission of 7 September 2011 entitled ‘The EU Energy Policy: Engaging with Partners beyond Our                              Borders’ underlined the need for the Union to include the promotion of energy infrastructure development in its external relations                              with a view to supporting socio-economic development beyond the Union borders. The Union should facilitate infrastructure                              projects linking the Union’s energy networks with third-country networks, in particular with neighbouring countries and with                              countries with which the Union has established specific energy cooperation.

(14)To ensure voltage and frequency stability, particular attention should be focused on the stability of the European electricity                              network under the changing conditions caused by the growing inflow of energy from renewable resources that are variable in                              nature.

(15)The investment needs up to 2020 in electricity and gas transmission infrastructures of European relevance have been estimated                              at about EUR 200 billion. The significant increase in investment volumes compared to past trends and the urgency of implementing                              the energy infrastructure priorities requires a new approach in the way energy infrastructures, and in particular those of                              a cross-border nature, are regulated and financed.

(16)The Commission Staff Working Paper for the Council of 10 June 2011 entitled ‘Energy infrastructure investment needs and financing                              requirements’ stressed that approximately half of the total investments needed for the decade up to 2020 are at risk of not                              being delivered at all or not in time due to obstacles related to the granting of permits, regulatory issues and financing.

(17)This Regulation lays down rules for the timely development and interoperability of trans-European energy networks in order                              to achieve the energy policy objectives of the Treaty on the Functioning of the European Union (TFEU) to ensure the functioning                              of the internal energy market and security of supply in the Union, to promote energy efficiency and energy saving and the                              development of new and renewable forms of energy, and to promote the interconnection of energy networks. By pursuing these                              objectives, this Regulation contributes to smart, sustainable and inclusive growth and brings benefits to the entire Union                              in terms of competitiveness and economic, social and territorial cohesion.

(18)It is essential for the development of trans-European networks and their effective interoperability to ensure operational                              coordination between electricity transmission system operators (TSOs). In order to ensure uniform conditions for the implementation                              of the relevant provisions of Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on                              conditions for access to the network for cross-border exchanges in electricity(10) in this respect, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance                              with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and                              general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers(11). The examination procedure should be used for the adoption of the guidelines on the implementation of operational coordination                              between electricity TSOs at Union level, given that those guidelines will apply generally to all TSOs.

(19)The Agency for the Cooperation of Energy Regulators (the ‘Agency’) established by Regulation (EC) No 713/2009 of the European                              Parliament and of the Council(12) is allocated important additional tasks under this Regulation and should be given the right to levy fees for some of these                              additional tasks.

(20)Following close consultations with all Member States and stakeholders, the Commission has identified 12 strategic trans-European                              energy infrastructure priorities, the implementation of which by 2020 is essential for the achievement of the Union’s energy                              and climate policy objectives. These priorities cover different geographic regions or thematic areas in the field of electricity                              transmission and storage, gas transmission, storage and liquefied or compressed natural gas infrastructure, smart grids, electricity                              highways, carbon dioxide transport and oil infrastructure.

(21)Projects of common interest should comply with common, transparent and objective criteria in view of their contribution to                              the energy policy objectives. For electricity and gas, in order to be eligible for inclusion in the second and subsequent                              Union lists, projects should be part of the latest available 10-year network development plan. This plan should notably take                              account of the conclusions of the European Council of 4 February 2011 with regard to the need to integrate peripheral energy                              markets.

(22)Regional groups should be established for the purpose of proposing and reviewing projects of common interest, leading to the                              establishment of regional lists of projects of common interest. In order to ensure broad consensus, these regional groups                              should ensure close cooperation between Member States, national regulatory authorities, project promoters and relevant stakeholders.                              The cooperation should rely as much as possible on existing regional cooperation structures of national regulatory authorities                              and TSOs and other structures established by the Member States and the Commission. In the context of this cooperation, national                              regulatory authorities should, when necessary, advise the regional groups, inter alia on the feasibility of the regulatory                              aspects of proposed projects and on the feasibility of the proposed timetable for regulatory approval.

(23)In order to ensure that the Union list of projects of common interest (‘Union list’) is limited to projects which contribute                              the most to the implementation of the strategic energy infrastructure priority corridors and areas, the power to adopt and                              review the Union list should be delegated to the Commission in accordance with Article 290 of the TFEU, while respecting the                              right of the Member States to approve projects of common interest related to their territory. According to analysis carried                              out in the impact assessment accompanying the proposal that has led to this Regulation, the number of such projects is estimated                              at some 100 in the field of electricity and 50 in the field of gas. Taking into account this estimate, and the need to ensure                              the achievement of the objectives of this Regulation, the total number of projects of common interest should remain manageable,                              and therefore should not significantly exceed 220. The Commission, when preparing and drawing up delegated acts, should ensure                              the simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

(24)A new Union list should be established every two years. Projects of common interest that are completed or that no longer fulfil                              the relevant criteria and requirements as set out in this Regulation should not appear on the next Union list. For that reason,                              existing projects of common interest that are to be included in the next Union list should be subject to the same selection                              process for the establishment of regional lists and for the establishment of the Union list as proposed projects; however,                              care should be taken to minimise the resulting administrative burden as much as possible, for example by using to the extent                              possible information submitted previously, and by taking account of the annual reports of the project promoters.

(25)Projects of common interest should be implemented as quickly as possible and should be closely monitored and evaluated, while                              keeping the administrative burden for project promoters to a minimum. The Commission should nominate European coordinators                              for projects facing particular difficulties.

(26)Permit granting processes should neither lead to administrative burdens which are disproportionate to the size or complexity                              of a project, nor create barriers to the development of the trans-European networks and market access. The conclusions of                              the Council of 19 February 2009 highlighted the need to identify and remove barriers to investment, including by means of                              streamlining of planning and consultation procedures. Those conclusions were reinforced by the conclusions of the European                              Council of 4 February 2011 which again underlined the importance of streamlining and improving permit granting processes while                              respecting national competences.

(27)The planning and implementation of Union projects of common interest in the areas of energy, transport and telecommunication                              infrastructure should be coordinated to generate synergies whenever to do so makes sense from an overall economic, technical,                              environmental or spatial planning point of view and with due regard to the relevant safety aspects. Thus, when the various                              European networks are being planned, preference could be given to integrating transport, communication and energy networks                              in order to ensure that as little land as possible is taken up, whilst ensuring, where possible, that existing or disused                              routes are reused, in order to reduce to a minimum any negative social, economic, environmental and financial impact.

(28)Projects of common interest should be given ‘priority status’ at national level to ensure rapid administrative treatment.                              Projects of common interest should be considered by competent authorities as being in the public interest. Authorisation should                              be given to projects which have an adverse impact on the environment, for reasons of overriding public interest, when all                              the conditions under Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna                              and flora(13) and Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community                              action in the field of water policy(14) are met.

(29)The establishment of a competent authority or authorities integrating or coordinating all permit granting processes (‘one-stop                              shop’) should reduce complexity, increase efficiency and transparency and help enhance cooperation among Member States. Upon                              their designation, the competent authorities should be operational as soon as possible.

(30)Despite the existence of established standards for the participation of the public in environmental decision-making procedures,                              additional measures are needed to ensure the highest possible standards of transparency and public participation for all relevant                              issues in the permit granting process for projects of common interest.

(31)The correct and coordinated implementation of Directive 2011/92/EU of the European Parliament and of the Council of 13 December                              2011 on the assessment of the effects of certain public and private projects on the environment(15), of Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of                              certain plans and programmes on the environment(16), where applicable, of the Convention on access to information, public participation in decision-making and access to justice                              in environmental matters, signed in Aarhus on 25 June 1998(17) (the ‘Aarhus Convention’), and of the Espoo Convention on environmental impact assessment in a transboundary context (the                              ‘Espoo Convention’) should ensure the harmonisation of the main principles for the assessment of environmental effects, including                              in a cross-border context. Member States should coordinate their assessments for projects of common interest, and provide                              for joint assessments, where possible. Member States should be encouraged to exchange best practice and administrative capacity-building                              for permit granting processes.

(32)It is important to streamline and improve permit granting processes, while respecting — to the extent possible with due regard                              to the principle of subsidiarity — national competences and procedures for the construction of new infrastructure. Given the                              urgency of developing energy infrastructures, the simplification of permit granting processes should be accompanied by a clear                              time-limit for the decision to be taken by the respective authorities regarding the construction of the project. That time                              limit should stimulate a more efficient definition and handling of procedures, and should under no circumstances compromise                              the high standards for the protection of the environment and public participation. With regard to the maximum time limits                              established by this Regulation, Member States could nevertheless strive to further shorten them if feasible. The competent                              authorities should ensure compliance with the time limits, and Member States should endeavour to ensure that appeals challenging                              the substantive or procedural legality of a comprehensive decision are handled in the most efficient way possible.

(33)Where Member States consider it appropriate, they may include in the comprehensive decision decisions taken in the context                              of: negotiations with individual landowners to granting access to, ownership of, or a right to occupy property; spatial planning                              which determines the general land use of a defined region, includes other developments such as highways, railways, buildings                              and nature protection areas, and is not undertaken for the specific purpose of the planned project; granting of operational                              permits. In the context of the permit granting processes, a project of common interest could include related infrastructure                              to the extent that it is essential for the construction or functioning of the project.

(34)This Regulation, in particular the provisions on permit granting, public participation and the implementation of projects                              of common interest, should apply without prejudice to international and Union law, including provisions to protect the environment                              and human health, and provisions adopted under the Common Fisheries and Maritime Policy.

(35)The costs for the development, construction, operation and maintenance of projects of common interest should in general be                              fully borne by the users of the infrastructure. Projects of common interest should be eligible for cross-border cost allocation                              when an assessment of market demand or of the expected effects on the tariffs have indicated that costs cannot be expected                              to be recovered by the tariffs paid by the infrastructure users.

(36)The basis for the discussion on the appropriate allocation of costs should be the analysis of the costs and benefits of an                              infrastructure project on the basis of a harmonised methodology for energy-system-wide analysis, in the framework of the 10-year                              network development plans prepared by the European Networks of Transmission System Operators under Regulation (EC) No 714/2009                              and Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to                              the natural gas transmission networks(18), and reviewed by the Agency. That analysis could take into consideration indicators and corresponding reference values for                              the comparison of unit investment costs.

(37)In an increasingly integrated internal energy market, clear and transparent rules for cost allocation across borders are necessary                              in order to accelerate investment in cross-border infrastructure. The European Council of 4 February 2011 recalled the importance                              of promoting a regulatory framework attractive to investment in networks, with tariffs set at levels consistent with financing                              needs and the appropriate cost allocation for cross-border investments, while enhancing competition and competitiveness and                              taking account of the impact on consumers. When deciding on cross-border cost allocation, national regulatory authorities                              should ensure that its impact on national tariffs does not represent a disproportionate burden for consumers. The national                              regulatory authorities should also avoid the risks of double support for projects by taking into account actual or estimated                              charges and revenues. Those charges and revenues should be taken into account only insofar as they are designed to cover the                              costs concerned and as much as possible related to the projects. When an investment request takes into account benefits beyond                              the borders of the Member States concerned, the national regulatory authorities should consult the TSOs concerned on the project-specific                              cost-benefit analysis.

(38)The existing internal energy market law requires that tariffs for access to gas and electricity networks provide appropriate                              incentives for investment. When applying the internal energy market law, national regulatory authorities should ensure a stable                              and predictable regulatory framework with incentives for projects of common interest, including long-term incentives, that                              are commensurate with the level of specific risk of the project. This applies in particular to innovative transmission technologies                              for electricity allowing for large scale integration of renewable energy, of distributed energy resources or of demand response                              in interconnected networks, and to gas transmission infrastructure offering advanced capacity or additional flexibility to                              the market to allow for short-term trading or back-up supply in case of supply disruptions.

(39)This Regulation applies only to the granting of permits for, public participation in, and the regulatory treatment of projects                              of common interest within the meaning set out herein. Member States may nevertheless apply, by virtue of their national law,                              the same or similar rules to other projects which do not have the status of projects of common interest within the scope of                              this Regulation. As regards the regulatory incentives, Member States may apply, by virtue of their national law, the same                              or similar rules to projects of common interest falling under the category of electricity storage.

(40)Member States that currently do not provide for a legal status of the highest national significance possible that is attributable                              to energy infrastructure projects in the context of permit granting processes should consider introducing such a status, in                              particular by evaluating if this would lead to a quicker permit granting process.

(41)The European Energy Programme for Recovery (EEPR), established by Regulation (EC) No 663/2009 of the European Parliament and                              of the Council(19) has demonstrated the added value of leveraging private funding through significant Union financial assistance to allow the                              implementation of projects of European significance. The European Council of 4 February 2011 recognised that some energy infrastructure                              projects may require limited public finance to leverage private funding. In the light of the economic and financial crisis                              and budgetary constraints, targeted support, through grants and financial instruments, should be developed under the next                              multiannual financial framework, which will attract new investors into the energy infrastructure priority corridors and areas,                              while keeping the budgetary contribution of the Union to a minimum. The relevant measures should draw on the experience gained                              during the pilot phase following the introduction of project bonds to finance infrastructure projects.

(42)Projects of common interest in the fields of electricity, gas and carbon dioxide should be eligible to receive Union financial                              assistance for studies and, under certain conditions, for works as soon as such funding becomes available under the relevant                              Regulation on a Connecting Europe Facility in the form of grants or in the form of innovative financial instruments. This                              will ensure that tailor-made support can be provided to those projects of common interest which are not viable under the existing                              regulatory framework and market conditions. It is important to avoid any distortion of competition, in particular between                              projects contributing to the achievement of the same Union priority corridor. Such financial assistance should ensure the                              necessary synergies with the Structural Funds, which will finance smart energy distribution networks of local or regional                              importance. A three-step logic applies to investments in projects of common interest. First, the market should have the priority                              to invest. Second, if investments are not made by the market, regulatory solutions should be explored, if necessary the relevant                              regulatory framework should be adjusted, and the correct application of the relevant regulatory framework should be ensured.                              Third, where the first two steps are not sufficient to deliver the necessary investments in projects of common interest, Union                              financial assistance could be granted if the project of common interest fulfils the applicable eligibility criteria.

(43)Since the objective of this Regulation, namely the development and interoperability of trans-European energy networks and                              connection to such networks, cannot be sufficiently achieved by the Member States and can therefore be better achieved at                              Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the                              Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation                              does not go beyond what is necessary in order to achieve that objective.

(44)Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 should therefore be amended accordingly.

(45)Decision No 1364/2006/EC should therefore be repealed,

HAVE ADOPTED THIS REGULATION:

## CHAPTER IU.K.**GENERAL PROVISIONS**

### Article 1U.K.Subject matter and scope

1.This Regulation lays down guidelines for the timely development and interoperability of priority corridors and areas of trans-European                        energy infrastructure set out in Annex I (‘energy infrastructure priority corridors and areas’).                  

2.In particular, this Regulation:                  

(a)addresses the identification of projects of common interest necessary to implement priority corridors and areas falling under                        the energy infrastructure categories in electricity, gas, oil, and carbon dioxide set out in Annex II (‘energy infrastructure                        categories’);                  

(b)facilitates the timely implementation of projects of common interest by streamlining, coordinating more closely, and accelerating                        permit granting processes and by enhancing public participation;                  

(c)provides rules and guidance for the cross-border allocation of costs and risk-related incentives for projects of common interest;                  

(d)determines the conditions for eligibility of projects of common interest for Union financial assistance.                  

### Article 2U.K.Definitions

For the purpose of this Regulation, in addition to the definitions provided for in Directives 2009/28/EC, 2009/72/EC and 2009/73/EC,                     Regulations (EC) No 713/2009, (EC) No 714/2009, and (EC) No 715/2009, the following definitions shall apply:                  

‘energy infrastructure’ means any physical equipment or facility falling under the energy infrastructure categories which                              is located within the Union or linking the Union and one or more third countries;                           

‘comprehensive decision’ means the decision or set of decisions taken by a Member State authority or authorities not including                              courts or tribunals, that determines whether or not a project promoter is to be granted authorisation to build the energy                              infrastructure to realise a project without prejudice to any decision taken in the context of an administrative appeal procedure;                           

‘project’ means one or several lines, pipelines, facilities, equipments or installations falling under the energy infrastructure                              categories;                           

‘project of common interest’ means a project necessary to implement the energy infrastructure priority corridors and areas                              set out in Annex I and which is part of the Union list of projects of common interest referred to in Article 3;                           

‘energy infrastructure bottleneck’ means limitation of physical flows in an energy system due to insufficient transmission                              capacity, which includes inter alia the absence of infrastructure;                           

‘project promoter’ means one of the following:

a TSO, distribution system operator or other operator or investor developing a project of common interest;

where there are several TSOs, distribution system operators, other operators, investors, or any group thereof, the entity                                       with legal personality under the applicable national law, which has been designated by contractual arrangement between them                                       and which has the capacity to undertake legal obligations and assume financial liability on behalf of the parties to the contractual                                       arrangement;                                    

‘smart grid’ means an electricity network that can integrate in a cost efficient manner the behaviour and actions of all users                              connected to it, including generators, consumers and those that both generate and consume, in order to ensure an economically                              efficient and sustainable power system with low losses and high levels of quality, security of supply and safety;                           

‘works’ means the purchase, supply and deployment of components, systems and services including software, the carrying out                              of development and construction and installation activities relating to a project, the acceptance of installations and the                              launching of a project;                           

‘studies’ means activities needed to prepare project implementation, such as preparatory, feasibility, evaluation, testing                              and validation studies, including software, and any other technical support measure including prior action to define and develop                              a project and decide on its financing, such as reconnaissance of the sites concerned and preparation of the financial package;                           

‘national regulatory authority’ means a national regulatory authority designated in accordance with Article 35(1) of Directive                              2009/72/EC or Article 39(1) of Directive 2009/73/EC;                           

‘commissioning’ means the process of bringing a project into operation once it has been constructed.

## CHAPTER IIU.K.**PROJECTS OF COMMON INTEREST**

### Article 3U.K.Union list of projects of common interest

1.This Regulation establishes twelve Regional Groups (‘Groups’) as set out in Annex III.1. The membership of each Group shall                        be based on each priority corridor and area and their respective geographical coverage as set out in Annex I. Decision-making                        powers in the Groups shall be restricted to Member States and the Commission, who shall, for those purposes, be referred to                        as the decision-making body of the Groups.                  

2.Each Group shall adopt its own rules of procedure, having regard to the provisions set out in Annex III.                  

3.The decision-making body of each Group shall adopt a regional list of proposed projects of common interest drawn up according                        to the process set out in Annex III.2, according to the contribution of each project to implementing the energy infrastructure                        priority corridors and areas and according to their fulfilment of the criteria set out in Article 4.                  

When a Group draws up its regional list:

(a)each individual proposal for a project of common interest shall require the approval of the Member States, to whose territory                        the project relates; if a Member State decides not to give its approval, it shall present its substantiated reasons for doing                        so to the Group concerned;                  

(b)it shall take into account advice from the Commission that is aimed at having a manageable total number of projects of common                        interest.                  

4.The Commission shall be empowered to adopt delegated acts in accordance with Article 16 that establish the Union list of projects                        of common interest (‘Union list’), subject to the second paragraph of Article 172 of the TFEU. The Union list shall take the                        form of an annex to this Regulation.                  

In exercising its power, the Commission shall ensure that the Union list is established every two years, on the basis of the                     regional lists adopted by the decision-making bodies of the Groups as established in Annex III.1(2), following the procedure                     set out in paragraph 3 of this Article.                  

The first Union list shall be adopted by 30 September 2013.

5.The Commission shall, when adopting the Union list on the basis of the regional lists:                  

(a)ensure that only those projects that fulfil the criteria referred to in Article 4 are included;                  

(b)ensure cross-regional consistency, taking into account the opinion of the Agency as referred to in Annex III.2(12);                  

(c)take into account any opinions of Member States as referred to in Annex III.2(9); and                  

(d)aim for a manageable total number of projects of common interest on the Union list.                  

6.Projects of common interest included on the Union list pursuant to paragraph 4 of this Article shall become an integral part                        of the relevant regional investment plans under Article 12 of Regulations (EC) No 714/2009 and (EC) No 715/2009 and of the                        relevant national 10-year network development plans under Article 22 of Directives 2009/72/EC and 2009/73/EC and other national                        infrastructure plans concerned, as appropriate. Those projects shall be conferred the highest possible priority within each                        of those plans.                  

### Article 4U.K.Criteria for projects of common interest

1.Projects of common interest shall meet the following general criteria:                  

(a)the project is necessary for at least one of the energy infrastructure priority corridors and areas;                  

(b)the potential overall benefits of the project, assessed according to the respective specific criteria in paragraph 2, outweigh                        its costs, including in the longer term; and                  

(c)the project meets any of the following criteria:                  

involves at least two Member States by directly crossing the border of two or more Member States;

is located on the territory of one Member State and has a significant cross-border impact as set out in Annex IV.1;

crosses the border of at least one Member State and a European Economic Area country.

2.The following specific criteria shall apply to projects of common interest falling within specific energy infrastructure categories:                  

(a)for electricity transmission and storage projects falling under the energy infrastructure categories set out in Annex II.1(a)                        to (d), the project is to contribute significantly to at least one of the following specific criteria:                  

market integration, inter alia through lifting the isolation of at least one Member State and reducing energy infrastructure                              bottlenecks; competition and system flexibility;                           

sustainability, inter alia through the integration of renewable energy into the grid and the transmission of renewable generation                              to major consumption centres and storage sites;                           

security of supply, inter alia through interoperability, appropriate connections and secure and reliable system operation;

(b)for gas projects falling under the energy infrastructure categories set out in Annex II.2, the project is to contribute significantly                        to at least one of the following specific criteria:                  

market integration, inter alia through lifting the isolation of at least one Member State and reducing energy infrastructure                              bottlenecks; interoperability and system flexibility;                           

security of supply, inter alia through appropriate connections and diversification of supply sources, supplying counterparts                              and routes;                           

competition, inter alia through diversification of supply sources, supplying counterparts and routes;

sustainability, inter alia through reducing emissions, supporting intermittent renewable generation and enhancing deployment                              of renewable gas;                           

(c)for electricity smart grid projects falling under the energy infrastructure category set out in Annex II.1(e), the project                        is to contribute significantly to all of the following specific criteria:                  

integration and involvement of network users with new technical requirements with regard to their electricity supply and demand;

efficiency and interoperability of electricity transmission and distribution in day-to-day network operation;

network security, system control and quality of supply;

optimised planning of future cost-efficient network investments;

market functioning and customer services;

involvement of users in the management of their energy usage;

(d)for oil transport projects falling under the energy infrastructure categories set out in Annex II.3, the project is to contribute                        significantly to all of the following specific criteria:                  

security of supply reducing single supply source or route dependency;

efficient and sustainable use of resources through mitigation of environmental risks;

interoperability;

(e)for carbon dioxide transport projects falling under the energy infrastructure categories set out in Annex II.4, the project                        is contribute significantly to all of the following specific criteria:                  

the avoidance of carbon dioxide emissions while maintaining security of energy supply;

increasing the resilience and security of carbon dioxide transport;

the efficient use of resources, by enabling the connection of multiple carbon dioxide sources and storage sites via common                              infrastructure and minimising environmental burden and risks.                           

3.For projects falling under the energy infrastructure categories set out in Annex II.1 to 3, the criteria listed in this Article                        shall be assessed in accordance with the indicators set out in Annex IV.2 to 5.                  

4.In order to facilitate the assessing of all projects that could be eligible as projects of common interest and that could                        be included in a regional list, each Group shall assess each project’s contribution to the implementation of the same priority                        corridor or area in a transparent and objective manner. Each Group shall determine its assessment method on the basis of the                        aggregated contribution to the criteria referred to in paragraph 2; this assessment shall lead to a ranking of projects for                        internal use of the Group. Neither the regional list nor the Union list shall contain any ranking, nor shall the ranking be                        used for any subsequent purpose except as described in Annex III.2(14).                  

When assessing projects, each Group shall furthermore give due consideration to:

(a)the urgency of each proposed project in order to meet the Union energy policy targets of market integration, inter alia through                        lifting the isolation of at least one Member State and competition, sustainability and security of supply;                  

(b)the number of Member States affected by each project, whilst ensuring equal opportunities for projects involving peripheral                        Member States;                  

(c)the contribution of each project to territorial cohesion; and                  

(d)complementarity with regard to other proposed projects.                  

For smart grids projects falling under the energy infrastructure category set out in Annex II.1(e), ranking shall be carried                     out for those projects that affect the same two Member States, and due consideration shall also be given to the number of                     users affected by the project, the annual energy consumption and the share of generation from non-dispatchable resources in                     the area covered by these users.                  

### Article 5U.K.Implementation and monitoring

1.Project promoters shall draw up an implementation plan for projects of common interest, including a timetable for each of                        the following:                  

(a)feasibility and design studies;                  

(b)approval by the national regulatory authority or by any other authority concerned;                  

(c)construction and commissioning;                  

(d)the permit granting schedule referred to in Article 10(4)(b).                  

2.TSOs, distribution system operators and other operators shall co-operate with each other in order to facilitate the development                        of projects of common interest in their area.                  

3.The Agency and the Groups concerned shall monitor the progress achieved in implementing the projects of common interest and,                        if necessary, make recommendations to facilitate the implementation of projects of common interest. The Groups may request                        that additional information be provided in accordance with paragraphs 4, 5 and 6, convene meetings with the relevant parties                        and invite the Commission to verify the information provided on site.                  

4.By 31 March of each year following the year of inclusion of a project of common interest on the Union list pursuant to Article                        3, project promoters shall submit an annual report, for each project falling under the categories set out in Annex II.1 and                        2, to the competent authority referred to in Article 8 and either to the Agency or, for projects falling under the categories                        set out in Annex II.3 and 4, to the respective Group. That report shall give details of:                  

(a)the progress achieved in the development, construction and commissioning of the project, in particular with regard to permit                        granting and consultation procedures;                  

(b)where relevant, delays compared to the implementation plan, the reasons for such delays and other difficulties encountered;                  

(c)where relevant, a revised plan aiming at overcoming the delays.                  

5.Within three months of the receipt of the annual reports referred to in paragraph 4 of this Article, the Agency shall submit                        to the Groups a consolidated report for the projects of common interest falling under the categories set out in Annex II.1                        and 2, evaluating the progress achieved and make, where appropriate, recommendations on how to overcome the delays and difficulties                        encountered. That consolidated report shall also evaluate, in accordance with Article 6(8) and (9) of Regulation (EC) No 713/2009,                        the consistent implementation of the Union-wide network development plans with regard to the energy infrastructure priority                        corridors and areas.                  

6.Each year, the competent authorities referred to in Article 8 shall report to the respective Group on the progress and, where                        relevant, on delays in the implementation of projects of common interest located on their respective territory with regard                        to the permit granting processes, and on the reasons for such delays.                  

7.If the commissioning of a project of common interest is delayed compared to the implementation plan, other than for overriding                        reasons beyond the control of the project promoter:                  

(a)in so far as measures referred to in Article 22(7)(a), (b) or (c) of Directives 2009/72/EC and 2009/73/EC are applicable according                        to respective national laws, national regulatory authorities shall ensure that the investment is carried out;                  

(b)if the measures of national regulatory authorities according to point (a) are not applicable, the project promoter shall choose                        a third party to finance or construct all or part of the project. The project promoter shall do so before the delay compared                        to the date of commissioning in the implementation plan exceeds two years;                  

(c)if a third party is not chosen according to point (b), the Member State or, when the Member State has so provided, the national                        regulatory authority may, within two months of the expiry of the period referred to in point (b), designate a third party                        to finance or construct the project which the project promoter shall accept;                  

(d)if the delay compared to the date of commissioning in the implementation plan exceeds two years and two months, the Commission,                        subject to the agreement and with the full cooperation of the Member States concerned, may launch a call for proposals open                        to any third party capable of becoming a project promoter to build the project according to an agreed timeline;                  

(e)when points (c) or (d) are applied, the system operator in whose area the investment is located shall provide the implementing                        operators or investors or third party with all the information needed to realise the investment, shall connect new assets                        to the transmission network and shall generally make its best efforts to facilitate the implementation of the investment and                        the secure, reliable and efficient operation and maintenance of the project of common interest.                  

8.A project of common interest may be removed from the Union list according to the procedure set out in Article 3(4) if its                        inclusion in that list was based on incorrect information which was a determining factor for that inclusion, or the project                        does not comply with Union law.                  

9.Projects which are no longer on the Union list shall lose all rights and obligations linked to the status of project of common                        interest arising from this Regulation.                  

However, a project which is no longer on the Union list but for which an application file has been accepted for examination                     by the competent authority shall maintain the rights and obligations arising from Chapter III, except where the project is                     no longer on the list for the reasons set out in paragraph 8.                  

10.This Article shall be without prejudice to any Union financial assistance granted to any project of common interest prior                        to its removal from the Union list.                  

### Article 6U.K.European coordinators

1.Where a project of common interest encounters significant implementation difficulties, the Commission may designate, in agreement                        with the Member States concerned, a European coordinator for a period of up to one year renewable twice.                  

2.The European coordinator shall:                  

(a)promote the projects, for which he has been designated European coordinator and the cross-border dialogue between the project                        promoters and all concerned stakeholders;                  

(b)assist all parties as necessary in consulting concerned stakeholders and obtaining necessary permits for the projects;                  

(c)if appropriate, advise project promoters on the financing of the project;                  

(d)ensure that appropriate support and strategic direction by the Member States concerned are provided for the preparation and                        implementation of the projects;                  

(e)submit every year, and if appropriate, upon completion of their mandate, a report to the Commission on the progress of the                        projects and on any difficulties and obstacles which are likely to significantly delay the commissioning date of the projects.                        The Commission shall transmit the report to the European Parliament and the Groups concerned.                  

3.The European coordinator shall be chosen on the basis of his experience with regard to the specific tasks assigned to him                        for the projects concerned.                  

4.The decision designating the European coordinator shall specify the terms of reference, detailing the duration of the mandate,                        the specific tasks and corresponding deadlines, and the methodology to be followed. The coordination effort shall be proportionate                        to the complexity and estimated costs of the projects.                  

5.The Member States concerned shall fully cooperate with the European coordinator in his execution of the tasks referred to                        in paragraphs 2 and 4.                  

## CHAPTER IIIU.K.**PERMIT GRANTING AND PUBLIC PARTICIPATION**

### Article 7U.K.‘Priority status’ of projects of common interest

1.The adoption of the Union list shall establish, for the purposes of any decisions issued in the permit granting process, the                        necessity of these projects from an energy policy perspective, without prejudice to the exact location, routing or technology                        of the project.                  

2.For the purpose of ensuring efficient administrative processing of the application files related to projects of common interest,                        project promoters and all authorities concerned shall ensure that the most rapid treatment legally possible is given to these                        files.                  

3.Where such status exists in national law, projects of common interest shall be allocated the status of the highest national                        significance possible and be treated as such in permit granting processes — and if national law so provides, in spatial planning                        — including those relating to environmental assessments, in the manner such treatment is provided for in national law applicable                        to the corresponding type of energy infrastructure.                  

4.By 16 August 2013, the Commission shall issue non-binding guidance to support Member States in defining adequate legislative                        and non-legislative measures to streamline the environmental assessment procedures and to ensure the coherent application                        of environmental assessment procedures required under Union law for projects of common interest.                  

5.Member States shall assess, taking due account of the guidance referred to in paragraph 4, which measures to streamline the                        environmental assessment procedures and to ensure their coherent application are possible, and shall inform the Commission                        of the result.                  

6.By nine months from the date of issue of the guidance referred to in paragraph 4, Member States shall take the non-legislative                        measures that they have identified under paragraph 5.                  

7.By 24 months from the date of issue of the guidance referred to in paragraph 4, Member States shall take the legislative measures                        that they have identified under paragraph 5. These measures shall be without prejudice to obligations resulting from Union                        law.                  

8.With regard to the environmental impacts addressed in Article 6(4) of Directive 92/43/EEC and Article 4(7) of Directive 2000/60/EC,                        projects of common interest shall be considered as being of public interest from an energy policy perspective, and may be                        considered as being of overriding public interest, provided that all the conditions set out in these Directives are fulfilled.                  

Should the opinion of the Commission be required in accordance with Directive 92/43/EEC, the Commission and the competent                     authority referred to in Article 9 of this Regulation shall ensure that the decision with regard to the overriding public                     interest of a project is taken within the time limit pursuant to Article 10(1) of this Regulation.                  

### Article 8U.K.Organisation of the permit granting process

1.By 16 November 2013, each Member State shall designate one national competent authority which shall be responsible for facilitating                        and coordinating the permit granting process for projects of common interest.                  

2.The responsibility of the competent authority referred to in paragraph 1 and/or the tasks related to it may be delegated to,                        or carried out by, another authority, per project of common interest or per particular category of projects of common interest,                        provided that:                  

(a)the competent authority notifies the Commission of that delegation and the information therein is published by either the                        competent authority or the project promoter on the website referred to in Article 9(7);                  

(b)only one authority is responsible per project of common interest, is the sole point of contact for the project promoter in                        the process leading to the comprehensive decision for a given project of common interest, and coordinates the submission of                        all relevant documents and information.                  

The competent authority may retain the responsibility to establish time limits, without prejudice to the time limits set in                     accordance with Article 10.                  

3.Without prejudice to relevant requirements under international and Union law, the competent authority shall take actions to                        facilitate the issuing of the comprehensive decision. The comprehensive decision shall be issued within the time limit referred                        to in Article 10(1) and (2) and according to one of the following schemes:                  

:

the comprehensive decision shall be issued by the competent authority and shall be the sole legally binding decision resulting                        from the statutory permit granting procedure. Where other authorities are concerned by the project, they may, in accordance                        with national law, give their opinion as input to the procedure, which shall be taken into account by the competent authority;                     

:

the comprehensive decision comprises multiple individual legally binding decisions issued by several authorities concerned,                        which shall be coordinated by the competent authority. The competent authority may establish a working group where all concerned                        authorities are represented in order to draw up a permit granting schedule in accordance with Article 10(4)(b), and to monitor                        and coordinate its implementation. The competent authority shall, in consultation with the other authorities concerned, where                        applicable in accordance with national law, and without prejudice to time limits set in accordance with Article 10, establish                        on a case-by-case basis a reasonable time limit within which the individual decisions shall be issued. The competent authority                        may take an individual decision on behalf of another national authority concerned, if the decision by that authority is not                        delivered within the time limit and if the delay cannot be adequately justified; or, where provided under national law, and                        to the extent that this is compatible with Union law, the competent authority may consider that another national authority                        concerned has either given its approval or refusal for the project if the decision by that authority is not delivered within                        the time limit. Where provided under national law, the competent authority may disregard an individual decision of another                        national authority concerned if it considers that the decision is not sufficiently substantiated with regard to the underlying                        evidence presented by the national authority concerned; when doing so, the competent authority shall ensure that the relevant                        requirements under international and Union law are respected and shall duly justify its decision;                     

:

the comprehensive decision shall be coordinated by the competent authority. The competent authority shall, in consultation                        with the other authorities concerned, where applicable in accordance with national law, and without prejudice to time limits                        set in accordance with Article 10, establish on a case-by-case basis a reasonable time limit within which the individual decisions                        shall be issued. It shall monitor compliance with the time limits by the authorities concerned.                     

If an individual decision by an authority concerned is not expected to be delivered within the time limit, that authority                     shall inform the competent authority without delay and include a justification for the delay. Subsequently, the competent                     authority shall reset the time limit within which that individual decision shall be issued, whilst still complying with the                     overall time limits set in accordance with Article 10.                  

Acknowledging the national specificities in planning and permit granting processes, Member States may choose among the three                     schemes referred to in points (a), (b) and (c) of the first subparagraph to facilitate and coordinate their procedures and                     shall opt to implement the most effective scheme. Where a Member State chooses the collaborative scheme, it shall inform the                     Commission of its reasons therefor. The Commission shall undertake an evaluation of the effectiveness of the schemes in the                     report referred to in Article 17.                  

4.Member States may apply different schemes as set out in paragraph 3 to onshore and offshore projects of common interest.                  

5.If a project of common interest requires decisions to be taken in two or more Member States, the respective competent authorities                        shall take all necessary steps for efficient and effective cooperation and coordination among themselves, including as regards                        the provisions referred to in Article 10(4). Member States shall endeavour to provide for joint procedures, particularly with                        regard to the assessment of environmental impacts.                  

### Article 9U.K.Transparency and public participation

1.By 16 May 2014, the Member State or competent authority shall, where applicable in collaboration with other authorities concerned,                        publish a manual of procedures for the permit granting process applicable to projects of common interest. The manual shall                        be updated as necessary and made available to the public. The manual shall at least include the information specified in Annex                        VI.1. The manual shall not be legally binding, but it may refer to or quote relevant legal provisions.                  

2.Without prejudice to any requirements under the Aarhus and Espoo Conventions and relevant Union law, all parties involved                        in the permit granting process shall follow the principles for public participation set out in of Annex VI.3.                  

3.The project promoter shall, within an indicative period of three months of the start of the permit granting process pursuant                        to Article 10(1)(a), draw up and submit a concept for public participation to the competent authority, following the process                        outlined in the manual referred to in paragraph 1 and in line with the guidelines set out in Annex VI. The competent authority                        shall request modifications or approve the concept for public participation within three months; in so doing, the competent                        authority shall take into consideration any form of public participation and consultation that took place before the start                        of the permit granting process, to the extent that such public participation and consultation has fulfilled the requirements                        of this Article.                  

Where the project promoter intends to make significant changes to an approved concept, it shall inform the competent authority                     thereof. In that case the competent authority may request modifications.                  

4.At least one public consultation shall be carried out by the project promoter, or, where required by national law, by the                        competent authority, before submission of the final and complete application file to the competent authority pursuant to Article                        10(1)(a). This shall be without prejudice to any public consultation to be carried out after submission of the request for                        development consent according to Article 6(2) of Directive 2011/92/EU. The public consultation shall inform stakeholders referred                        to in Annex VI.3(a) about the project at an early stage and shall help to identify the most suitable location or trajectory                        and the relevant issues to be addressed in the application file. The minimum requirements applicable to this public consultation                        are specified in Annex VI.5.                  

The project promoter shall prepare a report summarising the results of activities related to the participation of the public                     prior to the submission of the application file, including those activities that took place before the start of the permit                     granting process. The project promoter shall submit that report together with the application file to the competent authority.                     Due account shall be taken of these results in the comprehensive decision.                  

5.For projects crossing the border of two or more Member States, the public consultations pursuant to paragraph 4 in each of                        the Member States concerned shall take place within a period of no more than two months from the date on which the first public                        consultation started.                  

6.For projects likely to have significant adverse cross-border impacts in one or more neighbouring Member States, where Article                        7 of Directive 2011/92/EU and the Espoo Convention are applicable, the relevant information shall be made available to the                        competent authority of the neighbouring Member States. The competent authority of the neighbouring Member States shall indicate,                        in the notification process where appropriate, whether it, or any other authority concerned, wishes to participate in the                        relevant public consultation procedures.                  

7.The project promoter, or, where national law so provides, the competent authority, shall establish and regularly update a                        website with relevant information about the project of common interest, which shall be linked to the Commission website and                        which shall meet the requirements specified in Annex VI.6. Commercially sensitive information shall be kept confidential.                  

Project promoters shall also publish relevant information by other appropriate information means to which the public has open                     access.                  

### Article 10U.K.Duration and implementation of the permit granting process

1.The permit granting process shall consist of two procedures:                  

(a)The pre-application procedure, covering the period between the start of the permit granting process and the acceptance of                        the submitted application file by the competent authority, shall take place within an indicative period of two years.                  

This procedure shall include the preparation of any environmental reports to be prepared by the project promoters.

For the purpose of establishing the start of the permit granting process, the project promoters shall notify the project to                     the competent authority of the Member States concerned in written form, and shall include a reasonably detailed outline of                     the project. No later than three months following the receipt of the notification, the competent authority shall, including                     on behalf of other authorities concerned, acknowledge or, if it considers the project as not mature enough to enter the permit                     granting process, reject the notification in written form. In the event of a rejection, the competent authority shall justify                     its decision, including on behalf of other authorities concerned. The date of signature of the acknowledgement of the notification                     by the competent authority shall serve as the start of the permit granting process. Where two or more Member States are concerned,                     the date of the acceptance of the last notification by the competent authority concerned shall serve as the date of the start                     of the permit granting process.                  

(b)The statutory permit granting procedure, covering the period from the date of acceptance of the submitted application file                        until the comprehensive decision is taken, shall not exceed one year and six months. Member States may set an earlier date                        for the time-limit, if considered appropriate.                  

2.The combined duration of the two procedures referred to in paragraph 1 shall not exceed a period of three years and six months.                        However, where the competent authority considers that one or both of the two procedures of the permit granting process will                        not be completed before the time limits as set out in paragraph 1, it may decide, before their expiry and on a case by case                        basis, to extend one or both of those time limits by a maximum of nine months for both procedures combined.                  

In that case, the competent authority shall inform the Group concerned and present to the Group concerned the measures taken                     or to be taken to conclude the permit granting process with the least possible delay. The Group may request the competent                     authority to report regularly on progress achieved in this regard.                  

3.In Member States where the determination of a route or location undertaken solely for the specific purpose of a planned project,                        including the planning of specific corridors for grid infrastructures, cannot be included in the process leading to the comprehensive                        decision, the corresponding decision shall be taken within a separate period of six months, starting on the date of submission                        of the final and complete application documents by the promoter.                  

In that case, the extension period referred to in paragraph 2 shall be reduced to six months, including for the procedure                     referred to in this paragraph.                  

4.The pre-application procedure shall comprise the following steps:                  

(a)upon the acknowledgement of the notification pursuant to paragraph 1(a), the competent authority shall identify, in close                        cooperation with the other authorities concerned, and where appropriate on the basis of a proposal by the project promoter,                        the scope of material and level of detail of information to be submitted by the project promoter, as part of the application                        file, to apply for the comprehensive decision. The checklist referred to in Annex VI.1(e) shall serve as a basis for this                        identification;                  

(b)the competent authority shall draw up, in close cooperation with the project promoter and other authorities concerned and                        taking into account the results of the activities carried out under point (a), a detailed schedule for the permit granting                        process in line with the guidelines set out in Annex VI.(2);                  

For projects crossing the border between two or more Member States, the competent authorities of the Member States concerned                     shall prepare a joint schedule, in which they endeavour to align their timetables;                  

(c)upon receipt of the draft application file, the competent authority shall, if necessary, and including on behalf of other                        authorities concerned, make further requests regarding missing information to be submitted by the project promoter, which                        may only address subjects identified under point (a). Within three months of the submission of the missing information, the                        competent authority shall accept for examination the application in written form. Requests for additional information may                        only be made if they are justified by new circumstances.                  

5.The project promoter shall ensure the completeness and adequate quality of the application file and seek the competent authority’s                        opinion on this as early as possible during the pre-application procedure. The project promoter shall cooperate fully with                        the competent authority to meet deadlines and comply with the detailed schedule as defined in paragraph 4(b).                  

6.The time limits laid down in this Article shall be without prejudice to obligations arising from international and Union law,                        and without prejudice to administrative appeal procedures and judicial remedies before a court or tribunal.                  

## CHAPTER IVU.K.**REGULATORY TREATMENT**

### Article 11U.K.Energy system wide cost-benefit analysis

1.By 16 November 2013, the European Network of Transmission System Operators (ENTSO) for Electricity and the ENTSO for Gas shall                        publish and submit to Member States, the Commission and the Agency their respective methodologies, including on network and                        market modelling, for a harmonised energy system-wide cost-benefit analysis at Union level for projects of common interest                        falling under the categories set out in Annex II.1(a) to (d) and Annex II.2. Those methodologies shall be applied for the                        preparation of each subsequent 10-year network development plan developed by the ENTSO for Electricity or the ENTSO for Gas                        pursuant to Article 8 of Regulation (EC) No 714/2009 and Article 8 of Regulation (EC) No 715/2009. The methodologies shall                        be drawn up in line with the principles laid down in Annex V and be consistent with the rules and indicators set out in Annex                        IV.                  

Prior to submitting their respective methodologies, the ENTSO for Electricity and the ENTSO for Gas shall conduct an extensive                     consultation process involving at least the organisations representing all relevant stakeholders — and, if deemed appropriate,                     the stakeholders themselves — national regulatory authorities and other national authorities.                  

2.Within three months of the day of receipt of the methodologies, the Agency shall provide an opinion to Member States and the                        Commission on the methodologies and publish it.                  

3.Within three months of the receipt of the opinion of the Agency, the Commission shall, and Member States may, deliver an opinion                        on the methodologies. The opinions shall be submitted to the ENTSO for Electricity or the ENTSO for Gas.                  

4.Within three months of the day of receipt of the last opinion received under paragraph 3, the ENTSO for Electricity and the                        ENTSO for Gas shall adapt their methodologies taking due account of the opinions received from Member States, the Commission’s                        opinion and the Agency’s opinion, and submit them to the Commission for approval.                  

5.Within two weeks of the approval by the Commission, the ENTSO for Electricity and the ENTSO for Gas shall publish their respective                        methodologies on their websites. They shall transmit the corresponding input data sets as defined in Annex V.1 and other relevant                        network, load flow and market data in a sufficiently accurate form according to national law and relevant confidentiality                        agreements to the Commission and the Agency, upon request. The data shall be valid at the date of the request. The Commission                        and the Agency shall ensure the confidential treatment of the data received, by themselves and by any party carrying out analytical                        work for them on the basis of those data.                  

6.The methodologies shall be updated and improved regularly in accordance with paragraphs 1 to 5. The Agency, on its own initiative                        or upon a duly reasoned request by national regulatory authorities or stakeholders, and after formally consulting the organisations                        representing all relevant stakeholders and the Commission, may request such updates and improvements with due justification                        and timescales. The Agency shall publish the requests by national regulatory authorities or stakeholders and all relevant                        non-commercially sensitive documents leading to a request from the Agency for an update or improvement.                  

7.By 16 May 2015, national regulatory authorities cooperating in the framework of the Agency shall establish and make publicly                        available a set of indicators and corresponding reference values for the comparison of unit investment costs for comparable                        projects of the infrastructure categories included in Annex II.1 and 2. Those reference values may be used by the ENTSO for                        Electricity and the ENTSO for Gas for the cost-benefit analyses carried out for subsequent 10-year network development plans.                  

8.By 31 December 2016, the ENTSO for Electricity and the ENTSO for Gas shall jointly submit to the Commission and the Agency                        a consistent and interlinked electricity and gas market and network model including both electricity and gas transmission                        infrastructure as well as storage and LNG facilities, covering the energy infrastructure priority corridors and areas and                        drawn up in line with the principles laid down in Annex V. After approval of this model by the Commission according to the                        procedure set out in paragraphs 2 to 4, it shall be included in the methodologies.                  

### Article 12U.K.Enabling investments with cross-border impacts

1.The efficiently incurred investment costs, which excludes maintenance costs, related to a project of common interest falling                        under the categories set out in Annex II.1(a), (b) and (d) and Annex II.2 shall be borne by the relevant TSO or the project                        promoters of the transmission infrastructure of the Member States to which the project provides a net positive impact, and,                        to the extent not covered by congestion rents or other charges, be paid for by network users through tariffs for network access                        in that or those Member States.                  

2.For a project of common interest falling under the categories set out in Annex II.1(a), (b) and (d) and Annex II.2, paragraph                        1 shall apply only if at least one project promoter requests the relevant national authorities to apply this Article for all                        or parts of the costs of the project. For a project of common interest falling under the categories set out in Annex II.2,                        paragraph 1 shall apply only where an assessment of market demand has already been carried out and indicated that the efficiently                        incurred investment costs cannot be expected to be covered by the tariffs.                  

Where a project has several project promoters, the relevant national regulatory authorities shall without delay request all                     project promoters to submit the investment request jointly in accordance with paragraph 3.                  

3.For a project of common interest to which paragraph 1 applies, the project promoters shall keep all concerned national regulatory                        authorities regularly informed, at least once per year, and until the project is commissioned, of the progress of that project                        and the identification of costs and impacts associated with it.                  

As soon as such a project has reached sufficient maturity, the project promoters, after having consulted the TSOs from the                     Member States to which the project provides a significant net positive impact, shall submit an investment request. That investment                     request shall include a request for a cross-border cost allocation and shall be submitted to all the national regulatory authorities                     concerned, accompanied by the following:                  

(a)a project-specific cost-benefit analysis consistent with the methodology drawn up pursuant to Article 11 and taking into account                        benefits beyond the borders of the Member State concerned;                  

(b)a business plan evaluating the financial viability of the project, including the chosen financing solution, and, for a project                        of common interest falling under the category referred to in Annex II.2, the results of market testing; and                  

(c)if the project promoters agree, a substantiated proposal for a cross-border cost allocation.                  

If a project is promoted by several project promoters, they shall submit their investment request jointly.

For projects included in the first Union list, project promoters shall submit their investment request by 31 October 2013.

A copy of each investment request shall be transmitted for information without delay by the national regulatory authorities                     to the Agency on receipt.                  

The national regulatory authorities and the Agency shall preserve the confidentiality of commercially sensitive information.

4.Within six months of the date on which the last investment request was received by the national regulatory authorities concerned,                        the national regulatory authorities shall, after consulting the project promoters concerned, take coordinated decisions on                        the allocation of investment costs to be borne by each system operator for the project, as well as their inclusion in tariffs.                        The national regulatory authorities may decide to allocate only part of the costs, or may decide to allocate costs among a                        package of several projects of common interest.                  

When allocating the costs, the national regulatory authorities shall take into account actual or estimated:
          -  congestion rents or other charges, 
          -  revenues stemming from the inter-transmission system operator compensation mechanism established under Article 13 of Regulation                           (EC) No 714/2009.                         

In deciding to allocate costs across borders, the economic, social and environmental costs and benefits of the projects in                     the Member States concerned and the possible need for financial support shall be taken into account.                  

In deciding to allocate costs across borders, the relevant national regulatory authorities, in consultation with the TSOs                     concerned, shall seek a mutual agreement based on, but not limited to, the information specified in paragraph 3(a) and (b).                  

If a project of common interest mitigates negative externalities, such as loop flows, and that project of common interest                     is implemented in the Member State at the origin of the negative externality, such mitigation shall not be regarded as a cross-border                     benefit and shall therefore not constitute a basis for allocating costs to the TSO of the Member States affected by those                     negative externalities.                  

5.National regulatory authorities shall, based on the cross-border cost allocation as referred to in paragraph 4 of this Article,                        take into account actual costs incurred by a TSO or other project promoter as a result of the investments when fixing or approving                        tariffs in accordance with Article 37(1)(a) of Directive 2009/72/EC and Article 41(1)(a) of Directive 2009/73/EC, insofar                        as these costs correspond to those of an efficient and structurally comparable operator.                  

The cost allocation decision shall be notified, without delay, by the national regulatory authorities to the Agency, together                     with all the relevant information with respect to the decision. In particular, the information shall contain detailed reasons                     on the basis of which costs were allocated among Member States, such as the following:                  

(a)an evaluation of the identified impacts, including concerning network tariffs, on each of the concerned Member States;                  

(b)an evaluation of the business plan referred to in paragraph 3(b);                  

(c)regional or Union-wide positive externalities, which the project would generate;                  

(d)the result of the consultation of the project promoters concerned.                  

The cost allocation decision shall be published.

6.Where the national regulatory authorities concerned have not reached an agreement on the investment request within six months                        of the date on which the request was received by the last of the national regulatory authorities concerned, they shall inform                        the Agency without delay.                  

In this case or upon a joint request from the national regulatory authorities concerned, the decision on the investment request                     including cross-border cost allocation referred to in paragraph 3 as well as the way the cost of the investments are reflected                     in the tariffs shall be taken by the Agency within three months of the date of referral to the Agency.                  

Before taking such a decision, the Agency shall consult the national regulatory authorities concerned and the project promoters.                     The three-month period referred to in the second subparagraph may be extended by an additional period of two months where                     further information is sought by the Agency. That additional period shall begin on the day following receipt of the complete                     information.                  

The cost allocation decision shall be published. Articles 19 and 20 of Regulation (EC) No 713/2009 shall be applicable.

7.A copy of all cost allocation decisions, together with all the relevant information with respect to each decision, shall be                        notified, without delay, by the Agency to the Commission. That information may be submitted in aggregate form. The Commission                        shall preserve the confidentiality of commercially sensitive information.                  

8.This cost allocation decision shall not affect the right of TSOs to apply and national regulatory authorities to approve charges                        for access to networks in accordance with Article 32 of Directive 2009/72/EC and of Directive 2009/73/EC, Article 14 of Regulation                        (EC) No 714/2009, and Article 13 of Regulation (EC) No 715/2009.                  

9.This Article shall not apply to projects of common interest having received:                  

(a)an exemption from Articles 32, 33, 34 and Article 41(6), (8) and (10) of Directive 2009/73/EC pursuant to Article 36 of Directive                        2009/73/EC;                  

(b)an exemption from Article 16(6) of Regulation (EC) No 714/2009 or an exemption from Article 32 and Article 37(6) and (10)                        of Directive 2009/72/EC pursuant to Article 17 of Regulation (EC) No 714/2009;                  

(c)an exemption under Article 22 of Directive 2003/55/EC(20); or                  

(d)an exemption under Article 7 of Regulation (EC) No 1228/2003(21).                  

### Article 13U.K.Incentives

1.Where a project promoter incurs higher risks for the development, construction, operation or maintenance of a project of common                        interest falling under the categories set out in Annex II.1(a), (b) and (d) and Annex II.2, compared to the risks normally                        incurred by a comparable infrastructure project, Member States and national regulatory authorities shall ensure that appropriate                        incentives are granted to that project in accordance with Article 37(8) of Directive 2009/72/EC, Article 41(8) of Directive                        2009/73/EC, Article 14 of Regulation (EC) No 714/2009, and Article 13 of Regulation (EC) No 715/2009.                  

The first subparagraph shall not apply where the project of common interest has received:

(a)an exemption from Articles 32, 33, 34 and Article 41(6), (8) and (10) of Directive 2009/73/EC pursuant to Article 36 of Directive                        2009/73/EC;                  

(b)an exemption from Article 16(6) of Regulation (EC) No 714/2009 or an exemption from Article 32 and Article 37(6) and (10)                        of Directive 2009/72/EC pursuant to Article 17 of Regulation (EC) No 714/2009;                  

(c)an exemption under Article 22 of Directive 2003/55/EC; or                  

(d)an exemption under Article 7 of Regulation (EC) No 1228/2003.                  

2.The decision of the national regulatory authorities for granting the incentives referred to in paragraph 1 shall consider                        the results of the cost-benefit analysis on the basis of the methodology drawn up pursuant to Article 11 and in particular                        the regional or Union-wide positive externalities generated by the project. The national regulatory authorities shall further                        analyse the specific risks incurred by the project promoters, the risk mitigation measures taken and the justification of                        this risk profile in view of the net positive impact provided by the project, when compared to a lower-risk alternative. Eligible                        risks shall notably include risks related to new transmission technologies, both onshore and offshore, risks related to under-recovery                        of costs and development risks.                  

3.The incentive granted by the decision shall take account of the specific nature of the risk incurred and may cover inter alia:                  

(a)the rules for anticipatory investment; or                  

(b)the rules for recognition of efficiently incurred costs before commissioning of the project; or                  

(c)the rules for providing additional return on the capital invested for the project; or                  

(d)the any other measure deemed necessary and appropriate.                  

4.By 31 July 2013, each national regulatory authority shall submit to the Agency its methodology and the criteria used to evaluate                        investments in electricity and gas infrastructure projects and the higher risks incurred by them, where available.                  

5.By 31 December 2013, taking due account of the information received pursuant to paragraph 4 of this Article, the Agency shall                        facilitate the sharing of good practices and make recommendations in accordance with Article 7(2) of Regulation (EC) No 713/2009                        regarding:                  

(a)the incentives referred to in paragraph 1 on the basis of a benchmarking of best practice by national regulatory authorities;                  

(b)a common methodology to evaluate the incurred higher risks of investments in electricity and gas infrastructure projects.                  

6.By 31 March 2014, each national regulatory authority shall publish its methodology and the criteria used to evaluate investments                        in electricity and gas infrastructure projects and the higher risks incurred by them.                  

7.Where the measures referred to in paragraphs 5 and 6 are not sufficient to ensure the timely implementation of projects of                        common interest, the Commission may issue guidelines regarding the incentives laid down in this Article.                  

## CHAPTER VU.K.**FINANCING**

### Article 14U.K.Eligibility of projects for Union financial assistance

1.Projects of common interest falling under the categories set out in Annex II.1, 2 and 4 are eligible for Union financial assistance                        in the form of grants for studies and financial instruments.                  

2.Projects of common interest falling under the categories set out in Annex II.1(a) to (d) and Annex II.2, except for hydro-pumped                        electricity storage projects, are also eligible for Union financial assistance in the form of grants for works if they fulfil                        all of the following criteria:                  

(a)the project specific cost-benefit analysis pursuant to Article 12(3)(a) provides evidence concerning the existence of significant                        positive externalities, such as security of supply, solidarity or innovation;                  

(b)the project has received a cross-border cost allocation decision pursuant to Article 12; or, for projects of common interest                        falling under the category set out in Annex II.1(c) and that therefore do not receive a cross-border cost allocation decision,                        the project shall aim to provide services across borders, bring technological innovation and ensure the safety of cross-border                        grid operation;                  

(c)the project is commercially not viable according to the business plan and other assessments carried out, notably by possible                        investors or creditors or the national regulatory authority. The decision on incentives and its justification referred to                        in Article 13(2) shall be taken into account when assessing the project’s commercial viability.                  

3.Projects of common interest carried out in accordance with the procedure referred to in Article 5(7)(d) shall also be eligible                        for Union financial assistance in the form of grants for works if they fulfil the criteria set out in paragraph 2 of this                        Article.                  

4.Projects of common interest falling under the categories set out in Annex II.1(e) and 4 shall be also eligible for Union financial                        assistance in the form of grants for works, if the concerned project promoters can clearly demonstrate the significant positive                        externalities generated by the projects and their lack of commercial viability, according to the business plan and other assessments                        carried out, notably by possible investors or creditors or, where applicable, a national regulatory authority.                  

### Article 15U.K.Guidance for the award criteria of Union financial assistance

The specific criteria set out in Article 4(2) and the parameters set out in Article 4(4) shall also fulfil the role of objectives                     for the purpose of establishing award criteria for Union financial assistance in the relevant Regulation on a Connecting Europe                     Facility.                  

### Article 16U.K.Exercise of the delegation

1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.                  

2.The power to adopt delegated acts referred to in Article 3 shall be conferred on the Commission for a period of four years                        from 15 May 2013. The Commission shall draw up a report in respect of the delegation of power not later than nine months before                        the end of this period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the                        European Parliament or the Council opposes such extension not later than three months before the end of each period.                  

3.The delegation of power referred to in Article 3 may be revoked at any time by the European Parliament or by the Council.                        A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the                        day following the publication of the decision in the *Official Journal of the European Union* or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.                  

4.As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the                        Council.                  

5.A delegated act adopted pursuant to Article 3 shall enter into force only if no objection has been expressed either by the                        European Parliament or the Council within a period of two months of notification of that act to the European Parliament and                        the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission                        that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of                        the Council.                  

## CHAPTER VIU.K.**FINAL PROVISIONS**

### Article 17U.K.Reporting and evaluation

Not later than 2017, the Commission shall publish a report on the implementation of projects of common interest and submit                     it to the European Parliament and the Council. This report shall provide an evaluation of:                  

the progress achieved for the planning, development, construction and commissioning of projects of common interest selected                              pursuant to Article 3, and, where relevant, delays in implementation and other difficulties encountered;                           

the funds engaged and disbursed by the Union for projects of common interest, compared to the total value of funded projects                              of common interest;                           

for the electricity and gas sectors, the evolution of the interconnection level between Member States, the corresponding evolution                              of energy prices, as well as the number of network system failure events, their causes and related economic cost;                           

permit granting and public participation, in particular:

the average and maximum total duration of permit granting processes for projects of common interest, including the duration                                       of each step of the pre-application procedure, compared to the timing foreseen by the initial major milestones referred to                                       in Article 10(4);                                    

the level of opposition faced by projects of common interest (notably number of written objections during the public consultation                                       process, number of legal recourse actions);                                    

an overview of best and innovative practices with regard to stakeholder involvement and mitigation of environmental impact                                       during permit granting processes and project implementation;                                    

the effectiveness of the schemes foreseen in Article 8(3) regarding compliance with the time limits set under Article 10;

regulatory treatment, in particular:

the number of projects of common interest having been granted a cross-border cost allocation decision pursuant to Article                                       12;                                    

the number and type of projects of common interest having received specific incentives pursuant to Article 13;

the effectiveness of this Regulation in contributing to the goals for market integration by 2014 and 2015, to the climate                              and energy targets for 2020, and, in the longer term, to the move toward a low-carbon economy by 2050.                           

### Article 18U.K.Information and publicity

The Commission shall establish by six months after the date of adoption of the first Union list an infrastructure transparency                     platform easily accessible to the general public, including via the internet. This platform shall contain the following information:                  

general, updated information, including geographic information, for each project of common interest;

the implementation plan as set out in Article 5(1) for each project of common interest;

the main results of the cost-benefit analysis on the basis of the methodology drawn up pursuant Article 11 for the projects                              of common interest concerned, except for any commercially sensitive information;                           

the Union list;

the funds allocated and disbursed by the Union for each project of common interest.

### Article 19U.K.Transitional provisions

This Regulation shall not affect the granting, continuation or modification of financial assistance awarded by the Commission                     on the basis of calls for proposals launched under Regulation (EC) No 680/2007 of the European Parliament and of the Council                     of 20 June 2007 laying down general rules for the granting of Community financial aid in the field of the trans-European transport                     and energy networks(22) to projects listed in Annexes I and III to Decision No 1364/2006/EC or in view of the targets, based on the relevant categories                     of expenditure for TEN-E, as defined in Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions                     on the European Regional Development Fund, the European Social Fund and the Cohesion Fund(23).                  

For projects of common interest in the permit granting process for which a project promoter has submitted an application file                     before 16 November 2013, the provisions of Chapter III shall not apply.                  

### Article 20U.K.Amendments to Regulation (EC) No 713/2009

In Regulation (EC) No 713/2009, paragraph 1 of Article 22 is replaced by the following:

‘1.Fees shall be due to the Agency for requesting an exemption decision pursuant to Article 9(1) and for decisions on cross border                           cost allocation provided by the Agency pursuant to Article 12 of Regulation (EU) No 347/2013 of the European Parliament and                           of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure(24).’.                  

### Article 21U.K.Amendments to Regulation (EC) No 714/2009

Regulation (EC) No 714/2009 is hereby amended as follows:

Article 8 is amended as follows:

in paragraph 3, point (a) is replaced by the following:

common network operation tools to ensure coordination of network operation in normal and emergency conditions, including a                                                   common incident classification scale, and research plans. These tools shall specify inter alia:                                             

the information, including appropriate day ahead, intra-day and real-time information, useful for improving operational coordination,                                                            as well as the optimal frequency for the collection and sharing of such information;                                                      

the technological platform for the exchange of information in real time and where appropriate, the technological platforms                                                            for the collection, processing and transmission of the other information referred to in point (i), as well as for the implementation                                                            of the procedures capable of increasing operational coordination between transmission system operators with a view to such                                                            coordination becoming Union-wide;                                                      

how transmission system operators make available the operational information to other transmission system operators or any                                                            entity duly mandated to support them to achieve operational coordination, and to the Agency; and                                                      

that transmission system operators designate a contact point in charge of answering inquiries from other transmission system                                                            operators or from any entity duly mandated as referred to in point (iii), or from the Agency concerning such information.                                                      

The ENTSO for Electricity shall submit the adopted specifications on points (i) to (iv) above to the Agency and to the Commission                                                   by 16 May 2015.                                             

Within 12 months of the adoption of the specifications, the Agency shall issue an opinion in which it considers whether they                                                   sufficiently contribute to the promotion of cross-border trade and to ensuring the optimal management, coordinated operation,                                                   efficient use and sound technical evolution of the European electricity transmission network.’;                                             

in paragraph 10 point (a) is replaced by the following:

build on national investment plans, taking into account regional investment plans as referred to in Article 12(1), and, if                                                   appropriate, Union aspects of network planning as set out in Regulation (EU) No 347/2013 of the European Parliament and of                                                   the Council of 17 April 2013 on guidelines for trans-European energy infrastructure(25); it shall be subject to a cost-benefit analysis using the methodology established as set out in Article 11 of that Regulation;’;                                             

Article 11 is replaced by the following:

#### ‘Article 11Costs

The costs related to the activities of the ENTSO for Electricity referred to in Articles 4 to 12 of this Regulation, and in                                 Article 11 of Regulation (EU) No 347/2013 shall be borne by the transmission system operators and shall be taken into account                                 in the calculation of tariffs. Regulatory authorities shall approve those costs only if they are reasonable and appropriate.’;                           

in Article 18, the following paragraph is inserted:

‘4a.The Commission may adopt guidelines on the implementation of operational coordination between transmission system operators                                    at Union level. Those guidelines shall be consistent with and build upon the network codes referred to in Article 6 of this                                    Regulation and build upon the adopted specifications and the Agency opinion referred to in Article 8(3)(a) of this Regulation.                                    When adopting those guidelines, the Commission shall take into account differing regional and national operational requirements.                           

Those guidelines shall be adopted in accordance with the examination procedure referred to in Article 23(3).’;                           

in Article 23 the following paragraph is inserted:

‘3.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 of the European Parliament and of the                                    Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States                                    of the Commission’s exercise of implementing powers(26) shall apply.’.                           

### Article 22U.K.Amendments to Regulation (EC) No 715/2009

Regulation (EC) No 715/2009 is amended as follows:

in Article 8(10), point (a) is replaced by the following:

build on national investment plans, taking into account regional investment plans as referred to in Article 12(1), and, if                                          appropriate, Union aspects of network planning as set out in Regulation (EU) No 347/2013 of the European Parliament and of                                          the Council of 17 April 2013 on guidelines for trans-European energy infrastructure(27); it shall be the subject to a cost-benefit analysis using the methodology established as set out in Article 11 of that Regulation.’;                                    

Article 11 is replaced by the following:

#### ‘Article 11Costs

The costs related to the activities of the ENTSO for Gas referred to in Articles 4 to 12 of this Regulation, and in Article                                 11 of Regulation (EU) No 347/2013 shall be borne by the transmission system operators and shall be taken into account in the                                 calculation of tariffs. Regulatory authorities shall approve those costs only if they are reasonable and appropriate.’.                           

### Article 23U.K.Repeal

Decision No 1364/2006/EC is hereby repealed from 1 January 2014. No rights shall arise under this Regulation for projects                     listed in Annexes I and III to Decision No 1364/2006/EC.                  

### Article 24U.K.Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the *Official Journal of the European Union*.                  

It shall apply from 1 June 2013 with the exception of Articles 14 and 15 which shall apply as from the date of application                     of the relevant Regulation on a Connecting Europe Facility.                  

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg, 17 April 2013.

*For the European Parliament*                            

*The President*                            

M. Schulz                            

*For the Council*                            

*The President*                            

L. Creighton                            

## ANNEX IU.K.**ENERGY INFRASTRUCTURE PRIORITY CORRIDORS AND AREAS**

This Regulation shall apply to the following trans-European energy infrastructure priority corridors and areas:

### 1.PRIORITY ELECTRICITY CORRIDORSU.K.

#### (1)Northern Seas offshore grid (‘NSOG’): integrated offshore electricity grid development and the related interconnectors in                        the North Sea, the Irish Sea, the English Channel, the Baltic Sea and neighbouring waters to transport electricity from renewable                        offshore energy sources to centres of consumption and storage and to increase cross-border electricity exchange.U.K.

Member States concerned: Belgium, Denmark, France, Germany, Ireland, Luxemburg, the Netherlands, Sweden, the United Kingdom;

#### (2)North-South electricity interconnections in Western Europe (‘NSI West Electricity’): interconnections between Member States                        of the region and with the Mediterranean area including the Iberian peninsula, notably to integrate electricity from renewable                        energy sources and reinforce internal grid infrastructures to foster market integration in the region.U.K.

Member States concerned: Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Malta, Portugal, Spain,                     the United Kingdom;                  

#### (3)North-South electricity interconnections in Central Eastern and South Eastern Europe (‘NSI East Electricity’): interconnections                        and internal lines in North-South and East-West directions to complete the internal market and integrate generation from renewable                        energy sources.U.K.

Member States concerned: Austria, Bulgaria, Croatia(28), Czech Republic, Cyprus, Germany, Greece, Hungary, Italy, Poland, Romania, Slovakia, Slovenia;                  

#### (4)Baltic Energy Market Interconnection Plan in electricity (‘BEMIP Electricity’): interconnections between Member States in                        the Baltic region and reinforcing internal grid infrastructures accordingly, to end isolation of the Baltic States and to                        foster market integration inter alia by working towards the integration of renewable energy in the region.U.K.

Member States concerned: Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland, Sweden.

### 2.PRIORITY GAS CORRIDORSU.K.

#### (5)North-South gas interconnections in Western Europe (‘NSI West Gas’): gas infrastructure for North-South gas flows in Western                        Europe to further diversify routes of supply and for increasing short-term gas deliverability.U.K.

Member States concerned: Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,                     Spain, the United Kingdom;                  

#### (6)North-South gas interconnections in Central Eastern and South Eastern Europe (‘NSI East Gas’): gas infrastructure for regional                        connections between and in the Baltic Sea region, the Adriatic and Aegean Seas, the Eastern Mediterranean Sea and the Black                        Sea, and for enhancing diversification and security of gas supply.U.K.

Member States concerned: Austria, Bulgaria, Croatia(28), Cyprus, Czech Republic, Germany, Greece, Hungary, Italy, Poland, Romania, Slovakia, Slovenia;                  

#### (7)Southern Gas Corridor (‘SGC’): infrastructure for the transmission of gas from the Caspian Basin, Central Asia, the Middle                        East and the Eastern Mediterranean Basin to the Union to enhance diversification of gas supply.U.K.

Member States concerned: Austria, Bulgaria, Croatia(29), Czech Republic, Cyprus, France, Germany, Hungary, Greece, Italy, Poland, Romania, Slovakia, Slovenia;                  

#### (8)Baltic Energy Market Interconnection Plan in gas (‘BEMIP Gas’): gas infrastructure to end the isolation of the three Baltic                        States and Finland and their dependency on a single supplier, to reinforce internal grid infrastructures accordingly, and                        to increase diversification and security of supplies in the Baltic Sea region.U.K.

Member States concerned: Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland, Sweden.

### 3.PRIORITY OIL CORRIDORU.K.

#### (9)Oil supply connections in Central Eastern Europe (‘OSC’): interoperability of the oil pipeline network in Central Eastern                        Europe to increase security of supply and reduce environmental risks.U.K.

Member States concerned: Austria, Croatia(29), Czech Republic, Germany, Hungary, Poland, Slovakia.                  

### 4.PRIORITY THEMATIC AREASU.K.

#### (10)Smart grids deployment: adoption of smart grid technologies across the Union to efficiently integrate the behaviour and actions                        of all users connected to the electricity network, in particular the generation of large amounts of electricity from renewable                        or distributed energy sources and demand response by consumers.U.K.

Member States concerned: all;

#### (11)Electricity highways: first electricity highways by 2020, in view of building an electricity highways system across the Union                        that is capable of:U.K.

accommodating ever-increasing wind surplus generation in and around the Northern and Baltic Seas and increasing renewable                              generation in the East and South of Europe and also North Africa;                           

connecting these new generation hubs with major storage capacities in the Nordic countries, the Alps and other regions with                              major consumption centres; and                           

coping with an increasingly variable and decentralised electricity supply and flexible electricity demand.

Member States concerned: all;

#### (12)Cross-border carbon dioxide network: development of carbon dioxide transport infrastructure between Member States and with                        neighbouring third countries in view of the deployment of carbon dioxide capture and storage.U.K.

Member States concerned: all.

## ANNEX IIU.K.**ENERGY INFRASTRUCTURE CATEGORIES**

The energy infrastructure categories to be developed in order to implement the energy infrastructure priorities listed in                     Annex I are the following:                  

concerning electricity:

high-voltage overhead transmission lines, if they have been designed for a voltage of 220 kV or more, and underground and                                       submarine transmission cables, if they have been designed for a voltage of 150 kV or more;                                    

concerning in particular electricity highways; any physical equipment designed to allow transport of electricity on the high                                       and extra-high voltage level, in view of connecting large amounts of electricity generation or storage located in one or several                                       Member States or third countries with large-scale electricity consumption in one or several other Member States;                                    

electricity storage facilities used for storing electricity on a permanent or temporary basis in above-ground or underground                                       infrastructure or geological sites, provided they are directly connected to high-voltage transmission lines designed for a                                       voltage of 110 kV or more;                                    

any equipment or installation essential for the systems defined in (a) to (c) to operate safely, securely and efficiently,                                       including protection, monitoring and control systems at all voltage levels and substations;                                    

any equipment or installation, both at transmission and medium voltage distribution level, aiming at two-way digital communication,                                       real-time or close to real-time, interactive and intelligent monitoring and management of electricity generation, transmission,                                       distribution and consumption within an electricity network in view of developing a network efficiently integrating the behaviour                                       and actions of all users connected to it — generators, consumers and those that do both — in order to ensure an economically                                       efficient, sustainable electricity system with low losses and high quality and security of supply and safety;                                    

concerning gas:

transmission pipelines for the transport of natural gas and bio gas that form part of a network which mainly contains high-pressure                                       pipelines, excluding high-pressure pipelines used for upstream or local distribution of natural gas;                                    

underground storage facilities connected to the above-mentioned high-pressure gas pipelines;

reception, storage and regasification or decompression facilities for liquefied natural gas (LNG) or compressed natural gas                                       (CNG);                                    

any equipment or installation essential for the system to operate safely, securely and efficiently or to enable bi-directional                                       capacity, including compressor stations;                                    

concerning oil:

pipelines used to transport crude oil;

pumping stations and storage facilities necessary for the operation of crude oil pipelines;

any equipment or installation essential for the system in question to operate properly, securely and efficiently, including                                       protection, monitoring and control systems and reverse-flow devices;                                    

concerning carbon dioxide:

dedicated pipelines, other than upstream pipeline network, used to transport anthropogenic carbon dioxide from more than one                                       source, i.e. industrial installations (including power plants) that produce carbon dioxide gas from combustion or other chemical                                       reactions involving fossil or non-fossil carbon-containing compounds, for the purpose of permanent geological storage of carbon                                       dioxide pursuant to Directive 2009/31/EC of the European Parliament and of the Council(30);                                    

facilities for liquefaction and buffer storage of carbon dioxide in view of its further transportation. This does not include                                       infrastructure within a geological formation used for the permanent geological storage of carbon dioxide pursuant to Directive                                       2009/31/EC and associated surface and injection facilities;                                    

any equipment or installation essential for the system in question to operate properly, securely and efficiently, including                                       protection, monitoring and control systems.                                    

## ANNEX IIIU.K.**REGIONAL LISTS OF PROJECTS OF COMMON INTEREST**

### 1.RULES FOR GROUPSU.K.

#### (1)For electricity projects falling under the categories set out in Annex II.1, each Group shall be composed of representatives                        of the Member States, national regulatory authorities, TSOs, as well as the Commission, the Agency and the ENTSO for Electricity.U.K.

For gas projects falling under the categories set out in Annex II.2, each Group shall be composed of representatives of the                     Member States, national regulatory authorities, TSOs, as well as the Commission, the Agency and the ENTSO for Gas.                  

For oil and carbon dioxide transport projects falling under the categories referred to in Annex II.3 and 4, each Group shall                     be composed of the representatives of the Member States, project promoters concerned by each of the relevant priorities designated                     in Annex I and the Commission.                  

#### (2)The decision-making bodies of the Groups may merge. All Groups or decision-making bodies shall meet together, when relevant,                        to discuss matters common to all Groups; such matters may include issues relevant to cross-regional consistency or the number                        of proposed projects included on the draft regional lists at risk of becoming unmanageable.U.K.

#### (3)Each Group shall organise its work in line with regional cooperation efforts pursuant Article 6 of Directive 2009/72/EC, Article                        7 of Directive 2009/73/EC, Article 12 of Regulation (EC) No 714/2009, and Article 12 of Regulation (EC) No 715/2009 and other                        existing regional cooperation structures.U.K.

#### (4)Each Group shall invite, as appropriate in view of implementing the relevant priority designated in Annex I, promoters of                        a project potentially eligible for selection as a project of common interest as well as representatives of national administrations,                        of regulatory authorities, and TSOs from EU candidate countries and potential candidates, the member countries of the European                        Economic Area and the European Free Trade Association, representatives from the Energy Community institutions and bodies,                        countries covered by the European Neighbourhood policy and countries, with which the Union has established specific energy                        cooperation. The decision to invite third country-representatives shall be based on consensus.U.K.

#### (5)Each Group shall consult the organisations representing relevant stakeholders — and, if deemed appropriate, stakeholders directly                        — including producers, distribution system operators, suppliers, consumers, and organisations for environmental protection.                        The Group may organise hearings or consultations, where relevant for the accomplishments of its tasks.U.K.

#### (6)The internal rules, an updated list of member organisations, regularly updated information on the progress of work, meeting                        agendas, as well as final conclusions and decisions of each Group shall be published by the Commission on the transparency                        platform referred to in Article 18.U.K.

#### (7)The Commission, the Agency and the Groups shall strive for consistency between the different Groups. For this purpose, the                        Commission and the Agency shall ensure, when relevant, the exchange of information on all work representing an interregional                        interest between the Groups concerned.U.K.

The participation of national regulatory authorities and the Agency in the Groups shall not jeopardise the fulfilment of their                     objectives and duties under this Regulation or under Articles 36 and 37 of Directive 2009/72/EC and Articles 40 and 41 of                     Directive 2009/73/EC, or under Regulation (EC) No 713/2009.                  

### 2.PROCESS FOR ESTABLISHING REGIONAL LISTSU.K.

#### (1)Promoters of a project potentially eligible for selection as a project of common interest wanting to obtain the status of                        projects of common interest shall submit an application for selection as project of common interest to the Group that includes:U.K.

          -  an assessment of their projects with regard to the contribution to implementing the priorities set out in Annex I, 
          -  an analysis of the fulfilment of the relevant criteria defined in Article 4, 
          -  for projects having reached a sufficient degree of maturity, a project-specific cost-benefit analysis in accordance with Articles                           21 and 22 based on the methodologies developed by the ENTSO for electricity or the ENTSO for gas pursuant to Article 11, and                         
          -  any other relevant information for the evaluation of the project. 

#### (2)All recipients shall preserve the confidentiality of commercially sensitive information.U.K.

#### (3)After adoption of the first Union list, for all subsequent Union lists adopted, proposed electricity transmission and storage                        projects falling under the categories set out in Annex II.1(a), (b) and (d) shall be part of the latest available 10-year                        network development plan for electricity, developed by the ENTSO for Electricity pursuant Article 8 of Regulation (EC) No                        714/2009.U.K.

#### (4)After adoption of the first Union list, for all subsequent Union lists adopted, proposed gas infrastructure projects falling                        under the categories set out in Annex II.2 shall be part of the latest available 10-year network development plan for gas,                        developed by the ENTSO for Gas pursuant Article 8 of Regulation (EC) No 715/2009.U.K.

#### (5)The project proposals submitted for inclusion in the first Union list which were not previously evaluated pursuant to Article                        8 of Regulation (EC) No 714/2009 shall be assessed at Union-wide system level by:U.K.

          -  the ENTSO for Electricity in line with the methodology applied in the latest available 10-year network development plan for                           projects falling under Annex II.1(a), (b) and (d),                         
          -  the ENTSO for Gas or by a third party in a consistent manner based on an objective methodology for projects falling under                           Annex II.2.                         

By 16 January 2014, the Commission shall issue Guidelines on criteria to be applied by the ENTSO for electricity and the ENTSO                     for gas when developing their respective 10-year network development plans referred to in points (3) and (4), in order to                     ensure equal treatment and transparency of the process.                  

#### (6)Proposed carbon dioxide transport projects falling under the category set out in Annex II.4 shall be presented as part of                        a plan, developed by at least two Member States, for the development of cross-border carbon dioxide transport and storage                        infrastructure, to be presented by the Member States concerned or entities designated by those Member States to the Commission.U.K.

#### (7)For proposed projects falling under the categories set out in Annex II.1 and 2, national regulatory authorities, and if necessary                        the Agency, shall, where possible in the context of regional cooperation (Article 6 of Directive 2009/72/EC, Article 7 of                        Directive 2009/73/EC), check the consistent application of the criteria/ cost-benefit analysis methodology and evaluate their                        cross-border relevance. They shall present their assessment to the Group.U.K.

#### (8)For proposed oil and carbon dioxide transport projects falling under the categories set out in Annex II.3 and 4, the Commission                        shall evaluate the application of the criteria set out in Article 4. For proposed carbon dioxide projects falling under the                        category set out in Annex II.4, the Commission shall also take into account the potential for future extension to include                        additional Member States. The Commission shall present its assessment to the Group.U.K.

#### (9)Each Member State to whose territory a proposed project does not relate, but on which the proposed project may have a potential                        net positive impact or a potential significant effect, such as on the environment or on the operation of the energy infrastructure                        on its territory, may present an opinion to the Group specifying its concerns.U.K.

#### (10)The decision-making body of the Group shall examine, at the request of a Member State of the Group, the substantiated reasons                        presented by a Member State pursuant to Article 3(3) for not approving a project of common interest related to its territory.U.K.

#### (11)The Group shall meet to examine and rank the proposed projects taking into account the assessment of the regulators, or the                        assessment of the Commission for oil and carbon dioxide transport projects.U.K.

#### (12)The draft regional lists of proposed projects falling under the categories set out in Annex II.1 and 2 drawn up by the Groups,                        together with any opinions as specified in point (9), shall be submitted to the Agency six months before the adoption date                        of the Union list. The draft regional lists and the accompanying opinions shall be assessed by the Agency within three months                        of the date of receipt. The Agency shall provide an opinion on the draft regional lists, in particular on the consistent application                        of the criteria and the cost-benefit analysis across regions. The opinion of the Agency shall be adopted in accordance with                        the procedure referred to in Article 15(1) of Regulation (EC) No 713/2009.U.K.

#### (13)Within one month of the date of receipt of the Agency’s opinion, the decision-making body of each Group shall adopt its final                        regional list, respecting the provisions set out in Article 3(3), based on the Groups’ proposal and taking into account the                        opinion of the Agency and the assessment of the national regulatory authorities submitted in accordance with point (7), or                        the assessment of the Commission for oil and carbon dioxide transport projects proposed in accordance with point (8). The                        Groups shall submit the final regional lists to the Commission, together with any opinions as specified in point (9).U.K.

#### (14)If, based on the regional lists received, and after having taken into account the Agency opinion, the total number of proposed                        projects of common interest on the Union list would exceed a manageable number, the Commission shall consider, after having                        consulted each Group concerned, not to include in the Union list projects that were ranked lowest by the Group concerned according                        to the ranking established pursuant to Article 4(4).U.K.

## ANNEX IVU.K.**RULES AND INDICATORS CONCERNING CRITERIA FOR PROJECTS OF COMMON INTEREST**

### (1)A project with significant cross-border impact is a project on the territory of a Member State, which fulfils the following                        conditions:U.K.

for electricity transmission, the project increases the grid transfer capacity, or the capacity available for commercial flows,                              at the border of that Member State with one or several other Member States, or at any other relevant cross-section of the                              same transmission corridor having the effect of increasing this cross-border grid transfer capacity, by at least 500 Megawatt                              compared to the situation without commissioning of the project;                           

for electricity storage, the project provides at least 225 MW installed capacity and has a storage capacity that allows a                              net annual electricity generation of 250 Gigawatt-hours/year;                           

for gas transmission, the project concerns investment in reverse flow capacities or changes the capability to transmit gas                              across the borders of the Member States concerned by at least 10 % compared to the situation prior to the commissioning of                              the project;                           

for gas storage or liquefied/compressed natural gas, the project aims at supplying directly or indirectly at least two Member                              States or at fulfilling the infrastructure standard (N-1 rule) at regional level in accordance with Article 6(3) of Regulation                              (EU) No 994/2010 of the European Parliament and of the Council(31);                           

for smart grids, the project is designed for equipments and installations at high-voltage and medium-voltage level designed                              for a voltage of 10 kV or more. It involves transmission and distribution system operators from at least two Member States,                              which cover at least 50 000 users that generate or consume electricity or do both in a consumption area of at least 300 Gigawatthours/year,                              of which at least 20 % originate from renewable resources that are variable in nature.                           

### (2)Concerning projects falling under the categories set out in Annex II.1(a) to (d), the criteria listed in Article 4 shall be                        evaluated as follows:U.K.

Market integration, competition and system flexibility shall be measured in line with the analysis made in the latest available                              Union-wide 10-year network development plan in electricity, notably by:                           
                -  calculating, for cross-border projects, the impact on the grid transfer capability in both power flow directions, measured                                    in terms of amount of power (in megawatt), and their contribution to reaching the minimum interconnection capacity of 10 %                                    installed production capacity or, for projects with significant cross-border impact, the impact on grid transfer capability                                    at borders between relevant Member States, between relevant Member States and third countries or within relevant Member States                                    and on demand-supply balancing and network operations in relevant Member States,                                  
                -  assessing the impact, for the area of analysis as defined in Annex V.10, in terms of energy system-wide generation and transmission                                    costs and evolution and convergence of market prices provided by a project under different planning scenarios, notably taking                                    into account the variations induced on the merit order.                                  

Transmission of renewable energy generation to major consumption centres and storage sites shall be measured in line with                              the analysis made in the latest available 10-year network development plan in electricity, notably by:                           
                -  for electricity transmission, by estimating the amount of generation capacity from renewable energy sources (by technology,                                    in megawatts), which is connected and transmitted due to the project, compared to the amount of planned total generation capacity                                    from these types of renewable energy sources in the concerned Member State in 2020 according to the national renewable energy                                    action plans as defined in Article 4 of Directive 2009/28/EC,                                  
                -  for electricity storage, by comparing new capacity provided by the project with total existing capacity for the same storage                                    technology in the area of analysis as defined in Annex V.10.                                  

Security of supply, interoperability and secure system operation shall be measured in line with the analysis made in the latest                              available 10-year network development plan in electricity, notably by assessing the impact of the project on the loss of load                              expectation for the area of analysis as defined in Annex V.10 in terms of generation and transmission adequacy for a set of                              characteristic load periods, taking into account expected changes in climate-related extreme weather events and their impact                              on infrastructure resilience. Where applicable, the impact of the project on independent and reliable control of system operation                              and services shall be measured.                           

### (3)Concerning projects falling under the categories set out in Annex II.2, the criteria listed in Article 4 shall be evaluated                        as follows:U.K.

Market integration and interoperability shall be measured by calculating the additional value of the project to the integration                              of market areas and price convergence, to the overall flexibility of the system, including the capacity level offered for                              reverse flows under various scenarios.                           

Competition shall be measured on the basis of diversification, including the facilitation of access to indigenous sources                              of supply, taking into account, successively: diversification of sources; diversification of counterparts; diversification                              of routes; the impact of new capacity on the Herfindahl-Hirschmann index (HHI)calculated at capacity level for the area of                              analysis as defined in Annex V.10.                           

Security of gas supply shall be measured by calculating the additional value of the project to the short and long-term resilience                              of the Union’s gas system and to enhancing the remaining flexibility of the system to cope with supply disruptions to Member                              States under various scenarios as well as the additional capacity provided by the project measured in relation to the infrastructure                              standard (N-1 rule) at regional level in accordance with Article 6(3) of Regulation (EU) No 994/2010.                           

Sustainability shall be measured as the contribution of a project to reduce emissions, to support the back-up of renewable                              electricity generation or power-to-gas and biogas transportation, taking into account expected changes in climatic conditions.                           

### (4)Concerning projects falling under the category set out in Annex II.1(e), each function listed in Article 4 shall be evaluated                        against the following criteria:U.K.

:

This criterion shall be measured by assessing the reduction of greenhouse gas emissions, and the environmental impact of electricity                        grid infrastructure.                     

:

This criterion shall be measured by estimating the installed capacity of distributed energy resources in distribution networks,                        the allowable maximum injection of electricity without congestion risks in transmission networks, and the energy not withdrawn                        from renewable sources due to congestion or security risks.                     

:

This criterion shall be measured by assessing the methods adopted to calculate charges and tariffs, as well as their structure,                        for generators, consumers and those that do both, and the operational flexibility provided for dynamic balancing of electricity                        in the network.                     

:

This criterion shall be measured by assessing the ratio of reliably available generation capacity and peak demand, the share                        of electricity generated from renewable sources, the stability of the electricity system, the duration and frequency of interruptions                        per customer, including climate related disruptions, and the voltage quality performance.                     

:

This criterion shall be measured by assessing the level of losses in transmission and in distribution networks, the ratio                        between minimum and maximum electricity demand within a defined time period, the demand side participation in electricity                        markets and in energy efficiency measures, the percentage utilisation (i.e. average loading) of electricity network components,                        the availability of network components (related to planned and unplanned maintenance) and its impact on network performances,                        and the actual availability of network capacity with respect to its standard value.                     

:

This criterion shall be estimated by assessing the ratio between interconnection capacity of a Member State and its electricity                        demand, the exploitation of interconnection capacities, and the congestion rents across interconnections.                     

### (5)Concerning oil transport projects falling under the categories set out in Annex II.3, the criteria listed in Article 4 shall                        be evaluated as follows:U.K.

Security of oil supply shall be measured by assessing the additional value of the new capacity offered by a project for the                              short and long-term resilience of the system and the remaining flexibility of the system to cope with supply disruptions under                              various scenarios.                           

Interoperability shall be measured by assessing to what extent the project improves the operation of the oil network, in particular                              by providing the possibility of reverse flows.                           

Efficient and sustainable use of resources shall be measured by assessing the extent to which the project makes use of already                              existing infrastructure and contributes to minimising environmental and climate change burden and risks.                           

## ANNEX VU.K.**ENERGY SYSTEM-WIDE COST-BENEFIT ANALYSIS**

The methodology for a harmonised energy system-wide cost-benefit analysis for projects of common interest shall satisfy the                     following principles laid down in this Annex.                  

### (1)The methodology shall be based on a common input data set representing the Union’s electricity and gas systems in the years                        n+5, n+10, n+15, and n+20, where n is the year in which the analysis is performed. This data set shall comprise at least:U.K.

:

scenarios for demand, generation capacities by fuel type (biomass, geothermal, hydro, gas, nuclear, oil, solid fuels, wind,                        solar photovoltaic, concentrated solar, other renewable technologies) and their geographical location, fuel prices (including                        biomass, coal, gas and oil), carbon dioxide prices, the composition of the transmission and, if relevant, the distribution                        network, and its evolution, taking into account all new significant generation (including capacity equipped for capturing                        carbon dioxide), storage and transmission projects for which a final investment decision has been taken and that are due to                        be commissioned by the end of year n+5;                     

:

scenarios for demand, imports, fuel prices (including coal, gas and oil), carbon dioxide prices, the composition of the transmission                        network and its evolution, taking into account all new projects for which a final investment decision has been taken and that                        are due to be commissioned by the end of year n+5.                     

### (2)The data set shall reflect Union and national law in force at the date of analysis. The data sets used for electricity and                        gas respectively shall be compatible, notably with regard to assumptions on prices and volumes in each market. The data set                        shall be elaborated after formally consulting Member States and the organisations representing all relevant stakeholders.                        The Commission and the Agency shall ensure access to the required commercial data from third parties when applicable.U.K.

### (3)The methodology shall give guidance for the development and use of network and market modelling necessary for the cost- benefit                        analysis.U.K.

### (4)The cost-benefit analysis shall be based on a harmonised evaluation of costs and benefits for the different categories of                        projects analysed and cover at least the period of time referred to in point (1).U.K.

### (5)The cost-benefit analysis shall at least take into account the following costs: capital expenditure, operational and maintenance                        expenditure over the technical lifecycle of the project and decommissioning and waste management costs, where relevant. The                        methodology shall give guidance on discount rates to be used for the calculations.U.K.

### (6)For electricity transmission and storage, the cost-benefit analysis shall at least take into account the impact and compensations                        resulting from the application of Article 13 of Regulation (EC) No 714/2009, the impacts on the indicators defined in Annex                        IV, and the following impacts:U.K.

greenhouse gas emissions and transmission losses over the technical lifecycle of the project;

future costs for new generation and transmission investment over the technical lifecycle of the project;

operational flexibility, including optimisation of regulating power and ancillary services;

system resilience, including disaster and climate resilience, and system security, notably for European critical infrastructures                              as defined in Directive 2008/114/EC.                           

### (7)For gas, the cost-benefit analysis shall at least take into account the results of market testing the impacts on the indicators                        defined in Annex IV and the following impacts:U.K.

disaster and climate resilience, and system security, notably for European critical infrastructures as defined in Directive                              2008/114/EC;                           

congestion in the gas network.

### (8)For smart grids, the cost-benefit analysis shall take into account the impacts on the indicators defined in Annex IV.U.K.

### (9)The detailed method used to take into account the indicators referred to in points 6 to 8 shall be elaborated after formally                        consulting Member States and the organisations representing all relevant stakeholders.U.K.

### (10)The methodology shall define the analysis to be carried out, based on the relevant input data set, by determining the impacts                        with and without each project. The area for the analysis of an individual project shall cover all Member States and third                        countries, on whose territory the project shall be built, all directly neighbouring Member States and all other Member States                        significantly impacted by the project.U.K.

### (11)The analysis shall identify the Member States on which the project has net positive impacts (beneficiaries) and those Member                        States on which the project has a net negative impact (cost bearers). Each cost-benefit analysis shall include sensitivity                        analyses concerning the input data set, the commissioning date of different projects in the same area of analysis and other                        relevant parameters.U.K.

### (12)Transmission, storage system and compressed and liquefied natural gas terminal operators and distribution system operators                        shall exchange the information necessary for the elaboration of the methodology, including the relevant network and market                        modelling. Any transmission or distribution system operator collecting information on behalf of other transmission or distribution                        system operators shall give back to the participating transmission and distribution system operators the results of the collection                        of data.U.K.

### (13)For the common electricity and gas market and network model set out in paragraph 8 of Article 11, the input data set referred                        to in point (1) shall cover the years n+10, n+20 and n+30 and the model shall allow for a full assessment of economic, social                        and environmental impacts, notably including external costs such as those related to greenhouse gas and conventional air pollutant                        emissions or security of supply.U.K.

## ANNEX VIU.K.**GUIDELINES FOR TRANSPARENCY AND PUBLIC PARTICIPATION**

### (1)The manual of procedures referred to in Article 9(1) shall at least specify:U.K.

the relevant law upon which decisions and opinions are based for the different types of relevant projects of common interest,                              including environmental law;                           

the relevant decisions and opinions to be obtained;

the names and contact details of the Competent Authority, other authorities and major stakeholders concerned;

the work flow, outlining each stage in the process, including an indicative time frame and a concise overview of the decision-making                              process;                           

information about the scope, structure and level of detail of documents to be submitted with the application for decisions,                              including a checklist;                           

the stages and means for the general public to participate in the process.

### (2)The detailed schedule referred to in Article 10(4)(b) shall specify as a minimum the following:U.K.

the decisions and opinions to be obtained;

the authorities, stakeholders, and the public likely to be concerned;

the individual stages of the procedure and their duration;

major milestones to be accomplished and their deadlines in view of the comprehensive decision to be taken;

the resources planned by the authorities and possible additional resource needs.

### (3)To increase public participation in the permit granting process and ensure in advance information and dialogue with the public,                        the following principles shall be applied:U.K.

The stakeholders affected by a project of common interest, including relevant national, regional and local authorities, landowners                              and citizens living in the vicinity of the project, the general public and their associations, organisations or groups, shall                              be extensively informed and consulted at an early stage, when potential concerns by the public can still be taken into account                              and in an open and transparent manner. Where relevant, the competent authority shall actively support the activities undertaken                              by the project promoter.                           

Competent authorities shall ensure that public consultation procedures for projects of common interest are grouped together                              where possible. Each public consultation shall cover all subject matters relevant to the particular stage of the procedure,                              and one subject matter relevant to the particular stage of the procedure shall not be addressed in more than one public consultation;                              however, one public consultation may take place in more than one geographical location. The subject matters addressed by a                              public consultation shall be clearly indicated in the notification of the public consultation.                           

Comments and objections shall be admissible from the beginning of the public consultation until the expiry of the deadline                              only.                           

### (4)The concept for public participation shall at least include information about:U.K.

the stakeholders concerned and addressed;

the measures envisaged, including proposed general locations and dates of dedicated meetings;

the timeline;

the human resources allocated to the respective tasks.

### (5)In the context of the public consultation to be carried out before submission of the application file, the relevant parties                        shall at least:U.K.

publish an information leaflet of no more than 15 pages, giving, in a clear and concise manner, an overview of the purpose                              and preliminary timetable of the project, the national grid development plan, alternative routes considered, expected impacts,                              including of cross-border nature, and possible mitigation measures, which shall be published prior to the start of the consultation;                              The information leaflet shall furthermore list the web addresses of the transparency platform referred to in Article 18 and                              of the manual of procedures referred to in point (1);                           

inform all stakeholders affected about the project through the website referred to in Article 9(7) and other appropriate information                              means;                           

invite in written form relevant affected stakeholders to dedicated meetings, during which concerns shall be discussed.

### (6)The project website shall make available as a minimum the following:U.K.

the information leaflet referred to in point (5);

a non-technical and regularly updated summary of no more than 50 pages reflecting the current status of the project and clearly                              indicating, in case of updates, changes to previous versions;                           

the project and public consultation planning, clearly indicating dates and locations for public consultations and hearings                              and the envisaged subject matters relevant for those hearings;                           

contact details in view of obtaining the full set of application documents;

contact details in view of conveying comments and objections during public consultations.

U.K.

# Statement by the European Commission as regards the eligibility of projects of common interest for EU financial assistance                              in the context of trans-European energy infrastructures (Chapter V of Regulation (EU) No 347/2013 of the European Parliament                              and of the Council(32))                           

The Commission underlines that it considers important that the support from EU and national sources extends to grants for                           works to enable the implementation of projects of common interest enhancing the diversification of energy supply sources,                           routes and counterparts. The Commission reserves the right to make proposals in this direction based on the experience gained                           from the monitoring of the implementation of projects of common interest in the context of the report foreseen in Article                           17 of the Regulation on guidelines for trans-European energy infrastructures.                        

1

OJ C 143, 22.5.2012, p. 125.                           

2

OJ C 277, 13.9.2012, p. 137.                           

3

Position of the European Parliament of 12 March 2013 (not yet published in the Official Journal) and decision of the Council                              of 21 March 2013.                           

4

European Parliament resolution of 5 July 2011 on energy infrastructure priorities for 2020 and beyond (OJ C 33 E, 5.2.2013, p. 46).                           

5

OJ L 262, 22.9.2006, p. 1.                           

6

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy                              from renewable sources (OJ L 140, 5.6.2009, p. 16).                           

7

OJ L 211, 14.8.2009, p. 55.                           

8

OJ L 211, 14.8.2009, p. 94.                           

9

OJ L 345, 23.12.2008, p. 75.                           

10

OJ L 211, 14.8.2009, p. 15.                           

11

OJ L 55, 28.2.2011, p. 13.                           

12

OJ L 211, 14.8.2009, p. 1.                           

13

OJ L 206, 22.7.1992, p. 7.                           

14

OJ L 327, 22.12.2000, p. 1.                           

15

OJ L 26, 28.1.2012, p. 1.                           

16

OJ L 197, 21.7.2001, p. 30.                           

17

OJ L 124, 17.5.2005, p. 4.                           

18

OJ L 211, 14.8.2009, p. 36.                           

19

OJ L 200, 31.7.2009, p. 31.                           

20

Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal                              market in natural gas (OJ L 176, 15.7.2003, p. 57).                           

21

Regulation (EC) No 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the                              network for cross-border exchanges in electricity (OJ L 176, 15.7.2003, p. 1).                           

22

OJ L 162, 22.6.2007, p. 1.                           

23

OJ L 210, 31.7.2006, p. 25.                           

24

OJ L 115, 25.4.2013, p. 39.’.                           

25

OJ L 115, 25.4.2013, p. 39.’;                           

26

OJ L 55, 28.2.2011, p. 13.’.                           

27

OJ L 115, 25.4.2013, p. 39.’;                           

28

Subject to and as of the date of accession of Croatia.

29

Subject to and as of the date of accession of Croatia.

30

OJ L 140, 5.6.2009, p. 114.                           

31

OJ L 295, 12.11.2010, p. 1.                           

32

See page 39 of this Official Journal.