(3)

The following articles ║ shall be inserted after Article 2: ‘Article 2a European Network of Transmission System Operators for Gas All transmission system operators shall cooperate at Community level through a European network of transmission system operators for gas in order to ensure the optimal management , coordinated operation and sound technical evolution of the European gas transmission network and to promote the completion of the internal market for gas, cross-border trade and the functioning of the energy markets . Article 2b Establishment of the European Network for Transmission System Operators for Gas 1. By […] ║ the transmission system operators for gas shall submit to the Commission and to the Agency ║ draft ║ statutes, a list of future members and draft rules of procedure ▐ with a view to establishing a European network of transmission system operators for gas ║. 2. Within two months from receipt, the Agency , after formally consulting the organisations representing all stakeholders, in particular the system users and customers, shall provide an opinion to the Commission on the draft statutes, list of members and draft rules of procedure. 3. The Commission shall deliver an opinion on the draft statutes, list of members and draft rules of procedure , taking into account the opinion of the Agency provided for in paragraph 2 and within three months of receipt thereof. 4. Within three months of receipt of the Commission's opinion, the transmission system operators shall establish the European Network for Transmission System Operators for Gas, adopt its statutes and rules of procedure and publish them. Article 2c Tasks of the European Network of Transmission System Operators for Gas 1. In order to achieve the objectives set out in Article 2a, the European Network of Transmission System Operators for Gas shall agree and submit to the Agency for approval following the procedure provided for in Article 2d in conjunction with Article 6(3) of Regulation (EC) No …/2008 [establishing the Agency for the Cooperation of Energy Regulators], the following : (a) draft network codes in the areas mentioned in paragraph 3 , elaborated in cooperation with market participants and network users ; (b) common network operation tools and research plans; (c) a 10-year investment plan including a supply and demand adequacy report, every two years; (d) measures to ensure the real-time coordination of grid operation in normal and emergency conditions; (e) guidelines on the coordination of technical cooperation between Community and third-country transmission system operators; (f) an annual work programme based on the priorities set by the Agency ; (g) an annual report; and (h) annual summer and winter supply outlooks. 2. The annual work programme referred to in paragraph 1(f) shall contain a list and description of the network codes, a plan on coordination of operation of the network and research and development activities, to be drawn up in that year and an indicative calendar. 3. The detailed network codes shall cover the following areas, according to the priorities defined in the annual work programme: (a) security and reliability rules including interoperability rules and operational procedures for emergency situations ; (b) grid connection and access rules; ▐ (c) cross-border capacity allocation and congestion management rules; ▐ (d) network-related transparency rules; (e) balancing and settlement rules ▐; ▐ (f) energy efficiency regarding gas networks. 4. The Agency shall monitor the implementation of the network codes by the European Network of Transmission System Operators for Gas . 5. The European Network of Transmission System Operators for Gas shall publish a Community-wide 10-year network investment plan every two years following its approval by the Agency . The investment plan shall include the modelling of the integrated network, taking into account storage and LNG facilities, scenario development, a supply and demand adequacy report and an assessment of the resilience of the system. The investment plan shall, in particular, build on national investment plans taking into account Community and regional aspects of network planning, including the Guidelines for Trans-European energy networks in accordance with Decision No 1364/2006/EC of the European Parliament and of the Council (10) . The investment plan shall identify investment gaps, notably with respect to cross-border capacities , and shall include investments in interconnection, in particular, and as a priority, connections between energy islands and gas networks in the Community and investments in other infrastructure necessary for effective trading, competition and security of supply. A review of barriers to the increase of cross-border capacity of the network arising from different approval procedures or practices shall be annexed to the investment plan . The transmission system operators shall implement the published investment plan . 6. ▐ The European Network of Transmission System Operators for Gas , on its own initiative, may propose to the Agency draft network codes in any area other than those listed in paragraph 3, with a view to achieving the objectives set out in Article 2a. The Agency shall adopt the network codes following the procedure set out in Article 2f while ensuring that those codes are not in contradiction with the guidelines adopted under Article 2e. Article 2d Monitoring by the Agency 1. The Agency shall monitor the execution of the tasks referred to in Article 2c(1) of the European Network of Transmission System Operators for Gas. 2. The European Network of Transmission System Operators for Gas shall submit the draft network codes and the documents referred to in Article 2c(1) , to the Agency for approval . The European Network of Transmission System Operators for Gas shall collect all relevant information regarding the implementation of the network codes and submit it to the Agency for evaluation. 3. The Agency shall monitor the implementation of the technical codes, the 10-year investment plan and the ▐ annual work programme and shall include the results of that monitoring in its annual report. In the event of non-compliance with the network codes by the transmission system operators, the ▐ 10-year investment plan or the annual work programme of the European Network of Transmission System Operators for Gas the Agency shall provide information thereof to the Commission . Article 2e Development of guidelines 1. The Commission shall, after consulting the Agency, establish an annual priority list identifying issues of primary importance for the development of the internal market for gas. 2. Having regard to the priority list, the Commission shall mandate the Agency to develop, within six months, draft guidelines establishing basic, clear and objective principles for the harmonisation of rules, as set out in Article 2c. 3. In drafting those guidelines, the Agency shall formally consult the European Network of Transmission System Operators for Gas and other stakeholders in an open and transparent manner. 4. The Agency shall adopt draft guidelines on the basis of that consultation. It shall specify the observations received during the consultation and explain how they were taken into account. It shall give reasons where observations have not been taken into account. 5. On its own initiative or at the request of the Agency, the Commission may initiate the same procedure to update the guidelines. Article 2f Development of network codes 1. Within six months of the adoption of the guidelines by the Agency and in accordance with Article 2e, the Commission shall mandate the European Network of Transmission System Operators for Gas to develop draft network codes in full compliance with the principles established in the guidelines. 2. In drafting those network codes, the European Network of Transmission System Operators for Gas shall take into consideration technical expertise from market participants and network users and shall keep them informed of progress. 3. The European Network of Transmission System Operators for Gas shall submit the draft network codes to the Agency. 4. The Agency shall conduct a formal consultation in relation to the draft network codes in an open and transparent manner. 5. The Agency shall adopt the draft network codes on the basis of that consultation. It shall specify the observations received during the consultation and explain how they were taken into account. It shall give reasons where observations have not been taken into account. 6. On the Agency's own initiative or at the request of the European Network of Transmission System Operators for Gas, a revision of the existing network codes may be undertaken following the same procedure. 7. The Commission may, on the recommendation of the Agency, submit the network codes to the Committee referred to in Article 14(1) for its final adoption in accordance with the procedure referred to in Article 14(2). Article 2g Consultations 1. In carrying out its tasks, the Agency shall formally consult, ▐ in an open and transparent manner, ▐ all appropriate market participants. The consultation shall include supply undertakings, customers, system users, distribution system operators, LNG system operators and storage system operators, including relevant (industry) associations, technical bodies and stakeholder platforms. 2. All documents and minutes of meetings related to the issues referred to in paragraph 1 shall be made public. 3. Before adopting the guidelines and network codes, the Agency shall specify the observations received during the consultation and explain how they were taken into account. The Agency shall provide reasons where observations have not been taken into account. 4. The European Network of Transmission System Operators for Gas shall cooperate with market participants and network users in accordance with Article 2f(2). Article 2h Costs The costs relating to the activities of the European Network of Transmission System Operators for Gas mentioned in Articles 2a to 2i shall be borne by the transmission system operators and shall be taken into account in the calculation of tariffs. Article 2i Regional cooperation of transmission system operators 1. Transmission system operators shall establish regional cooperation within the European Network of Transmission System Operators for Gas to contribute to the tasks mentioned in Article 2c(1). In particular, they shall publish a regional investment plan every two years, and may take investment decisions based thereon. The regional investment plan may not be contradictory to the 10 year investment plan referred to in Article 2c(1)(c). 2. Transmission system operators shall promote operational arrangements in order to ensure optimum management of the network, and promote the development of energy exchanges, the coordinated allocation of cross-border capacity ▐ and the compatibility of cross-border balancing mechanisms. 3. The national regulatory authorities and other relevant national authorities shall cooperate at all levels for the purpose of harmonising the market design and integrating their national markets at least at one or more regional levels, as a first and intermediate step towards a fully liberalised internal market. In particular, they shall promote the cooperation of transmission network operators at a regional level and facilitate their regional integration with a view to creating a competitive internal market, facilitating harmonisation of their regulatory and technical frameworks and, in particular, integrating persisting gas islands.