Proposal for a Regulation of the European Parliament and of the Council concerning measures to safeguard security of gas supply and repealing Directive 2004/67/EC {SEC(2009) 977} {SEC(2009) 978} {SEC(2009) 979} {SEC(2009) 980}
Date: 2009-07-16
Institutions: European Commission
Subjects: accident prevention, gas, gas supply, natural gas, resolution, security of supply

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.7.2009 
COM(2009) 363 final 

2009/0108 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

concerning measures to safeguard security of gas supply  
and repealing Directive 2004/67/EC 

{SEC(2009) 977} 
{SEC(2009) 978} 
{SEC(2009) 979} 
{SEC(2009) 980} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The Commission proposes a Regulation which will repeal the existing Directive 2004/67/EC 
concerning measures to safeguard security of natural gas supply1. This Directive is no longer 
sufficient in a context of growing import dependence and increased supply and transit risks in 
third countries as well as increasing gas flows and the development of the internal gas market 
within the Community.  

In  response  to  the  Russian-Ukrainian  gas  crisis  in  January  2009  causing  an  unprecedented 
disruption  of  gas  supplies  to  the  Community  via  Ukraine,  the  European  Council  and  the 
European Parliament have called for an accelerated revision of the existing Directive. Another 
major gas supply disruption cannot be excluded and may even occur in the near future. The 
Community therefore has to prepare for the event of future gas supply disruptions.  

The January crisis demonstrated to need to define more clearly the roles of the gas industry, 
Member States and the Community institutions to deal with a supply disruption in the short 
term  and  to  provide  for  the  necessary  infrastructure  in  the  longer  term.  A  lesson  from  the 
crisis  is  that  for  measures  to  be  consistent  and  effective,  they  have  to  be  prepared  well  in 
advance and to be coordinated at Community level.  

This proposal for a Regulation is consistent with the objective of the Union, especially those 
concerning  the  establishment  of  a  functioning  internal  market  for  gas  and  the  security  of 
energy supply.  

2. 

CONSULTATIONS WITH INTERESTED PARTIES AND IMPACT ASSESSMENT  

Public consultations 

On 13 November 2008, the Commission published a Communication on the implementation 
of  the  existing  Directive  -  COM(2008)  769.  The  publication  was  followed  by  the  public 
consultation of the interested parties (Member States, industry, regulators, and citizens) which 
took  place  between  November  2008  and  March  2009.  Detailed  consultations  on  a  revised 
legislation  for  security  of  gas  supply  have  also  taken  place  in  the  Gas  Coordination  Group, 
consisting  of  the  representatives  of  Member  States,  the  gas  industry  and  customers  through 
their European associations (Eurogas, OGP, GIE, IFIEC, BEUC, Eurelectric) at its meeting on 
23 February, 2 April, and 13 May. Member States gave their views at the Energy Council on 
12 January  and  19  February  2009  and  several  Member  States  have  subsequently  submitted 
written observations to the Commission.  

Impact assessment 

The impact assessment has considered five policy options: 1) No new Community action; 2) 
Better  enforcement  of  the  2004/67/EC  Directive;  3)  Voluntary  approach  by  industry;  4)  A 
revised directive; 5) A new regulation.  

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OJ L 127, 29.4.2004, p. 92. 

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With  regard  to  option  1  and  2  the  Commission  carried  out  an  evaluation  of  the 
implementation  of  the  existing  Directive.  It  concluded  that  the  existing  Directive  is 
insufficient  given  the  growing  import  dependence  and  increased  supply  and  transit  risks  in 
third countries as well as, increasing gas flows and the development of the internal gas market 
within the Community. With regard to option 3, a major disadvantage of a voluntary approach 
is that participation of all players in a consistent manner cannot be guaranteed. Moreover, the 
extra capacity to ensure security of supply is not necessarily provided for by market forces. 
With regard to options 4 and 5 (choice of legal instrument) the Commission considers that a 
Regulation is a more appropriate instrument than a Directive for the following main reasons: 
A  Regulation  is  directly  applicable  to  the  competent  authorities  in  the  Member  States,  to 
natural gas undertakings and to customers; it does not require lengthy transposition; it ensures 
clarity  and  coherence  of  standards  and  obligations  across  the  Community  and  it  defines 
directly the involvement of Community institutions.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Legal basis 

The  legal  basis  for  the  proposal  is  Article  95  of  the  Treaty  establishing  the  European 
Community. The main objective of the proposal is to increase the security of gas supply by 
creating  the  incentives  to  invest  in  necessary  interconnections  to  meet  the  N-1  indicator,  as 
well  as  the  reverse  flows.  Those  interconnections  are  at  the  same  time  necessary  for  the 
proper functioning of the internal gas market. 

The Regulation places the main emphasis on the role of the internal gas market to ensure the 
security of gas supply. The provisions aim at enabling natural gas undertakings to supply their 
customers across the Community for as long as possible and without restrictions at national 
level.  The  Regulation  allows  the  recourse  to  non-market  based  measures  decided  by  the 
competent  authority  only  as  the  last  resort  in  emergency  situations  when  all  market  based 
measures  are  exhausted  and  the  natural  gas  undertakings  are  no  longer  able  to  deal  with  a 
supply  disruption.  The  Commission  is  also  given  a  stronger  role  to  ensure  that  the  internal 
market  works  for  as  long  as  possible  and  that  measures  decided  at  national  level  are 
compatible with this principle. 

Subsidiarity principle 

therefore 

justifying 

This proposal aims at strengthening Community security of supply. With the realisation of the 
internal  energy  market  and  as  illustrated  by  the  gas  supply  disruption  of  January  2009,  the 
security of gas supply is a concern whose Community dimension is becoming more and more 
important, 
the 
Commission  in  particular.  In  a  Community  emergency  situation,  the  Commission  is  best 
placed  to  coordinate  the  actions  of  the  Competent  Authorities  of  the  Member  States  and  to 
facilitate the dialogue with third countries. To prevent and prepare for gas supply disruption, 
the  best  guarantee  for  security  of  supply  is  a  large,  well  interconnected  and  competitive 
internal  market,  offering  diverse  supply  sources  and  routes  and  dispersing  the  impact  of  a 
supply disruption on individual Member States or supply undertakings.  

involvement  of  Community 

institutions  and 

the 

Proportionality principle 

The  proposal  complies  with  the  proportionality  principle;  it  does  not  go  beyond  what  is 
necessary  in  order  to  achieve  the  objectives.  Member  States  will  continue  to  be  responsible 

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for  their  security  of  supply  and  will  enjoy  considerable  flexibility  in  the  choice  of 
arrangements and instruments to ensure security of supply, taking into account their national 
characteristics in the field of gas.  

4. Budgetary implications 

The proposal will have a limited impact on the Community budget, in particular to cover the 
costs of meetings of the Gas Coordination Group and, in the case of deployment, the costs of 
the monitoring task force which can be deployed to monitor and report the gas flows within 
and outside the Community. Missions outside the Community in the moments of crisis may 
draw on funds from the Instrument for Stability.  

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2009/xxxx (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

concerning measures to safeguard security of gas supply  
and repealing Directive 2004/67/EC 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
95 thereof, 

Having regard to the proposal from the Commission2, 

Having regard to the opinion of the European Economic and Social Committee3, 

Having regard to the opinion of the Committee of the Regions4, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty5, 

Whereas: 

(1) 

(2) 

(3) 

Natural  gas  (hereinafter:  gas)  is  an  essential  component  in  the  energy  supply  of  the 
Community,  constituting  one  quarter  of  primary  energy  supply  and  contributing 
mainly to power generation, heating, feedstock for industry and fuel for transportation. 

Gas  consumption  in  Europe  has  increased  rapidly  during  the  last  ten  years.  With 
decreasing  domestic  production,  gas  imports  have  increased  even  more  rapidly,  thus 
creating  a  higher  import  dependence  and  the  need  to  address  security  of  supply 
aspects. 

Council  Directive  2004/67/EC  established  for  the  first  time  a  legal  framework  at 
Community level to safeguard security of natural gas supply and to contribute to the 
proper functioning of the internal gas market also in the case of supply disruptions. It 
established  the  Gas  Coordination  Group  which  has  shown  to  be  useful  to  exchange 
information and define common actions between Member States, the Commission, the 
gas  industry  and  consumers.  The  Network  of  Energy  Security  Correspondents 
(NESCO)  endorsed  by  the  European  Council  in  December  2006  has  improved  the 
capacity to collect information and has provided early warning of potential threats to 
the security of energy supply. The new internal energy market legislation adopted by 

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OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

the Council in June 2009 constitutes an important step to complete the internal energy 
market  and  has  an  explicit  objective  to  enhance  the  Community's  security  of  energy 
supply.  

However,  under  the  current  measures  regarding  the  security  of  gas  supply  that  have 
been taken at Community level, Member States still enjoy a large margin of discretion 
as  to  the  choice  of  measures.  Where  the  security  of  supply  of  a  Member  State  is 
threatened, there is a clear risk that measures developed unilaterally by that Member 
State  may  jeopardise  the  proper  functioning  of  the  internal  gas  market.  Recent 
experience has demonstrated the reality of that risk. To allow the internal gas market 
to function even in the face of a shortage of supply, it is therefore necessary to provide 
for  a  more  coordinated  response  to  supply  crises,  both  concerning  preventive  action 
and the reaction to concrete disruptions of supply.  

Gas routes and sources for the Community should support the security of supply of the 
Community  as  a  whole  and  its  Member  States  individually.  Security  of  supply  will 
depend in the future on the evolution of the fuel mix, the development of production in 
the  Community  and  in  third  countries  supplying  the  Community,  investments  in 
storage facilities and in routes within and outside the Community including Liquefied 
Natural Gas facilities. 

A major disruption of gas supply to the Community can affect all Member States and 
Contracting  Parties  of  the  Energy  Community  Treaty  and  lead  to  severe  economic 
damages across the Community economy. Likewise, the disruption of gas supply can 
have severe social impacts in particular on vulnerable groups of customers. 

The December 2008 report on the implementation of the European Security Strategy 
highlights the growing reliance on imported energy as a significant additional risk for 
the Community's security of energy supply and stresses energy security as one of the 
new  challenges  for  security  policy.  The  internal  gas  market  is  a  central  element  to 
increase the security of energy supply in the Community and to reduce the exposure of 
individual Member States to the harmful effects of supply disruptions.  

The failure of the largest single gas infrastructure or gas supply source, the so-called 
N-1 principle, is a realistic scenario. Using the failure of such infrastructure or supply 
source as a benchmark of what Member States should be able to compensate is a valid 
starting point for ensuring their security of gas supply.  

Sufficient  gas  infrastructure  within  a  Member  State  and  across  the  Community  is 
essential  for  tackling  supply  interruptions.  Common  minimum  criteria  on  security  of 
gas  supply  should  ensure  a  level  playing  field  for  security  of  gas  supply  and  should 
create  significant  incentives  to  build  the  necessary  infrastructure  and  to  improve  the 
level of preparedness in case of crisis. Demand side measures such as fuel switching 
may have a valuable role to play in ensuring energy security where they can be applied 
quickly and reduce demand appreciably to react to a supply disruption.  

(10) 

Investments  in  new  gas  infrastructure  should  be  strongly  promoted.  They  should 
enhance  the  security  of  gas  supply  while  ensuring  the  proper  functioning  of  the 
internal  market  in  natural  gas.  Where  an  infrastructure  investment  is  of  cross-border 
nature the Agency for the Cooperation of Energy Regulators established by Regulation 
(EC)  No  .../…  of  the  European  Parliament  and  of  the  Council  ("ACER")  and  the 

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European  Network  of  Transmission  System  Operators  for  Gas  ("ENTSO-G")  should 
be closely involved in order to take better account of the cross-border implications. 

(11)  Different  sources  of  Community  funding  are  available  to  support  Member  States  to 
finance the necessary investment in indigenous production and infrastructure, notably 
loans  and  guarantees  from  the  European  Investment  Bank  or  funding  from  regional, 
structural  or  cohesion  funds.  The  European  Investment  Bank  as  well  as  the 
Community external instruments such as ENPI, IPA and DCI can also finance actions 
in third countries in order to improve security of energy supply. 

(12)  This  Regulation  should  enable  natural  gas  undertakings  and  customers  to  rely  on 
market  mechanisms  for  as  long  as  possible  when  coping  with  disruptions.  It  should 
also provide for emergency mechanisms to be used when markets are no longer able to 
deal  adequately  with  a  gas  supply  disruption.  Even  in  an  Emergency,  market  based 
instruments should be given priority to mitigate the effects of the supply disruption.  

(13)  Following the adoption of the third internal energy market package6, new provisions 
will apply to the gas sector, creating clear roles and responsibilities for Member States, 
regulators,  transmission  system  operators  and  ACER,  as  well  as  improving  the 
transparency  of  the  market  for  the  benefit of  its  well-functioning  and  the  security  of 
supply. 

(14)  The completion of the internal gas market and effective competition within that market 
offer  the  Community  the  highest  level  of  security  of  supply  for  all  Member  States, 
provided  that  the  market  is  allowed  to  work  fully  in  case  of  disruption  of  supply 
affecting a part of the Community, whatever the cause of the disruption. To this end, a 
comprehensive  and  effective  common  approach  to  security  of  supply  is  required, 
particularly  through  transparent  and  non-discriminatory  policies  compatible  with  the 
requirements  of  the  market,  avoiding  market  distortions  and  undermining  of  market 
responses to disruptions.  

(15)  The precise definition of the roles and responsibilities of all natural gas undertakings 
and Competent Authorities is therefore crucial in maintaining the well-functioning of 
the internal market, particularly in supply disruptions and crisis situations. 

(16)  Sufficiently harmonised security of supply standards covering at least the situation that 
occurred in January 2009, taking into account the difference between Member States, 
should  be  defined,  without  imposing  unreasonable  and  disproportionate  burdens  on 
natural gas undertakings including new entrants and small undertakings. 

(17) 

It is essential for the well-functioning of the market that the necessary investments in 
indigenous  production  and  infrastructures,  such  as  interconnections,  equipment 
allowing  physical  bidirectional  flows  on  pipelines,  storage,  and  LNG  re-gasification 
facilities, are made by the natural gas undertakings in time, bearing in mind possible 
supply disruptions such as the one that occurred in January 2009. 

(18) 

It  is  important  that  gas  supply  is  maintained,  particularly  as  regards  household 
customers, as well as other protected customers such as schools and hospitals, in cases 

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in which the market cannot continue to supply them. It is essential that the measures to 
be taken during a crisis are defined in advance of any crisis. 

(19)  A  large  choice  of  instruments  is  available  to  comply  with  security  of  supply 
obligations. These instruments should be used in a national, regional and Community 
context,  as  appropriate,  to  ensure  that  they  deliver  a  consistent  and  cost-effective 
result. 

(20)  The  security  of  supply  aspects  of  long-term  planning  of  investments  in  sufficient 
cross-border capacities and other infrastructures, ensuring the long-term ability of the 
system to guarantee security of supply and meet reasonable demands, are addressed by 
Directive  .../…/EC  of  the  European  Parliament  and  of  the  Council  [concerning 
common  rules  for  the  internal  market  in  natural  gas  and  repealing  Directive 
2003/55/EC]7.  Meeting  the  security  of  supply  standards  may  require  a  transitional 
period  to  allow  the  necessary  investments  to  be  made.  The  10-year  network 
development  plan  drawn  up  by  the  ENTSO-G  and  supervised  by  ACER  is  a 
fundamental tool to identify the required investments needed at Community level.  

(21)  The  ENTSO-G  and  ACER,  as  members  of  the  Gas  Coordination  Group,  should  be 

fully involved in the process of cooperation and consultations at Community level. 

(22) 

In  order  to  ensure  the  highest  level  of  preparedness  in  case  of  supply  disruption, 
Emergency Plans should be established by all natural gas undertakings together with 
the  Competent  Authorities.  Such  plans  should  be  mutually  consistent.  Their  content 
should  follow  best  practices  among  existing  plans  and  should  define  clear  roles  and 
responsibilities for all concerned natural gas undertakings and Competent Authorities. 
Joint  emergency  plans  at  regional  level,  should  be  established  where  possible  and 
necessary.  

(23)  To  strengthen  the  solidarity  between  Member  States  in  the  case  of  a  Community 
Emergency  and  in  particular  to  support  Member  States  which  are  exposed  to  less 
favourable  geographical  or  geological  conditions,  Member  States  should  devise 
specific  measures  to  exercise  solidarity,  including  measures  such  as  commercial 
agreements  between  natural  gas  undertakings,  compensation  mechanisms,  increased 
gas  exports  or  increased  releases  from  storages.  Solidarity  measures  may  be 
particularly  appropriate  between  Member  States  for  which 
the  Commission 
recommends the establishment of joint preventive actions plans or emergency plans at 
regional level. 

(24)  European  solidarity  should  also,  where  needed,  take  the  form  of  civil  protection 
assistance provided by Community and its Member States. Such assistance should be 
facilitated and coordinated by the Community Civil Protection Mechanism established 
by Council Decision 2007/779/EC, Euratom8. 

(25)  The  sovereign  rights  of  Member  States  over  their  own  natural  resources  are  not 

affected by this Regulation.  

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Directive XXX  
OJ L 314, 1.12.2007, p. 9 

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(26)  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 protection9 lays down a process with a view to enhancing the security of 
designated  European  Critical  Infrastructures,  including  certain  gas  infrastructures,  in 
the  Community.  Directive  2008/114/EC  together  with  the  present  Regulation 
contribute  to  creating  a  comprehensive  approach  to  the  energy  security  of  the 
Community. 

(27)  Emergency Plans should be updated regularly and published. They should be subject 

to peer review and tested. 

(28)  The Gas Coordination Group, established by Directive 2004/67/EC of 26 April 2004 
concerning  the  measures  to  safeguard  security  of  natural  gas  supply10,  should  act  as 
adviser to the Commission to facilitate the coordination of security of supply measures 
in  the  case  of  a  Community  emergency.  It  should  also  monitor  the  adequacy  and 
appropriateness of measures to be taken according to this Regulation. 

(29)  This  Regulation  aims  at  empowering  natural  gas  undertakings  and  Competent 
Authorities  of  the  Member  States  to  ensure  that  the  internal  gas  market  works 
effectively for as long as possible in the case of a supply disruption, prior to measures 
being taken by Competent Authorities to address the situation in which the market can 
no longer deliver the required gas supplies. Such exceptional measures should be fully 
compliant with Community rules and should be notified to the Commission. 

(30)  Since gas supplies from third countries are central to the security of gas supply of the 
Community,  the  Commission  should  coordinate  the  actions  with  regard  to  third 
countries,  working  with  producer  and  transit  countries  on  arrangements  to  handle 
crisis situations and to ensure a stable gas flow to the Community. The Commission 
should be entitled to deploy a task force to monitor gas flows in crisis situations within 
and,  in  consultation  with  the  third  countries  involved,  outside  the  Community  and, 
where a crisis arises due to difficulties in a third country, to assume a mediation and 
facilitation role.  

(31) 

In  February  2009,  the  Energy  Council  concluded  that  transparency  and  reliability 
should  be  increased  through  meaningful  exchange  of  information  between  the 
Commission and Member States level on energy relations, including long term supply 
arrangements,  with 
third  countries  while  preserving  commercially-sensitive 
information. 

(32)  Since  the  objectives  of  the  action  to  ensure  the  security  of  gas  supply  in  the 
Community  cannot  be  sufficiently  achieved  by  the  Member  States  only  and  can 
therefore,  by  reason  of  the  scale  or  effects  of  the  action,  better  be  achieved  at 
Community  level,  the  Community  may  adopt  measures  in  accordance  with  the 
principle of subsidiarity as set  out  in  Article  5 of  the Treaty. 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 those objectives. 

(33)  Directive 2004/67/EC should be repealed. 

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OJ L 345, 23.12.2008, p. 75. 
OJ L 127, 29.4.2004, p. 92. 

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HAVE ADOPTED THIS REGULATION: 

Article 1 
Subject-matter 

This Regulation establishes measures aimed at safeguarding the security of gas supply so as to 
ensure the proper and continuous functioning of the internal market for gas by providing for a 
clear definition and attribution of responsibilities and for a coordination of the response at the 
level  of  the  Member  States  and  the  Community  regarding  both  preventive  action  and  the 
reaction to concrete disruptions of supply.  

Article 2 
Definitions 

For  the  purpose  of  this  Regulation  the  definitions  of  Directive  2009/xxx/EC11  (the  "Gas 
Directive") and the Regulation 2009/xxx/EC12 (the "Agency Regulation") shall apply. 

In addition the following definitions shall apply: 

(1) 

(2) 

1. 

2. 

11 

12 

"protected  customers"  means  all  household  customers  already  connected  to  a  gas 
distribution network, and, if the Member State concerned so decides, can also include 
small  and  medium-sized  enterprises,  schools  and  hospitals  provided  that  they  are 
already connected to a gas distribution network; 

“Competent  Authority”  means 
the  national  regulatory  authority  or  national 
governmental authority designated by the Member States to be responsible for security 
of  gas  supply.  This  is  without  prejudice  to  the  choice  of  Member  States  to  allocate 
certain  tasks  in  this  Regulation  to  other  authorities  than  the  Competent  Authority. 
These tasks shall be performed under the supervision of the Competent Authority and 
shall be specified in the plans referred to in Article 4.  

Article 3 
Responsibility for security of gas supply 

Security  of  gas  supply  is  a  task  of  the  natural  gas  undertakings,  Competent 
Authorities of the Member States, the industrial gas customers, and the Commission 
within  their  respective  areas  of  responsibility.  It  requires  a  high  degree  of 
cooperation between them.  

Each  Member  State  shall  designate  a  Competent  Authority  responsible  for  the 
implementation of the security of gas supply measures provided in this Regulation. 
The  measures  shall  include  the  biennial  risk  assessment,  the  establishment  of  the 
Preventive  Action  Plans,  the  establishment  of  the  Emergency  Plan,  and  the 
continuous  monitoring  of  security  of  gas  supply  at  national  level.  Competent 

Directive  2009/xxx/EC  of  the  European  Parliament  and  of  the  Council  amending  the  Directive 
2003/55/EC concerning the common rules for the internal market in natural gas (OJ L [ ]). 
Regulation of the European Parliament and of the Council establishing an Agency for the Cooperation 
of Energy Regulators (OJ L [ ]). 

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3. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

6. 

Authorities shall cooperate with each other to prevent a supply disruption and to limit 
damages in case it occurs. 

Each  Member  State  shall  notify  to  the  Commission  the  designated  Competent 
Authority by [30 June 2010; 3 months from entry into force] at the latest. 

The Commission shall coordinate the Competent Authorities at the Community level 
through  the  Gas  Coordination  Group  in  particular  in  the  case  of  a  Community 
Emergency.  

The  measures  to  ensure  the security  of  supply  shall be clearly defined, transparent, 
proportionate,  non-discriminatory,  verifiable,  and  shall  not  unduly  distort 
competition and the effective functioning of the internal market. 

Article 4 
Establishment of Preventive Action Plan and Emergency Plan 

By  [31  March  2011;  12  months  from  entry  into  force]  at  the  latest,  the  Competent 
Authority,  after  consultation  of  the  natural  gas  undertakings,  of  the  relevant 
organisations representing the interests of household and industrial customers and of 
the regulatory authority, where it is not the Competent Authority, shall establish:  

(a)  A Preventive Action Plan containing the measures needed to mitigate the risks 

identified; and 

(b)  An Emergency Plan containing the measures to be taken to mitigate the impact 

of a gas supply disruption.  

Before  adopting  those  Plans  the  Competent  Authorities  shall  exchange  information 
and consult each other and the Commission to ensure that their Plans and measures 
are  mutually  consistent  at  the  appropriate  regional  level.  These  consultations  shall 
cover, as a minimum, interconnections, cross-border supplies, storage across borders 
and the physical capacity to transport gas in both directions. 

During  the  process  mentioned  in  paragraph  2  the  Commission  may  recommend  at 
which regional level the exchange of information and consultations shall take place. 
The  Commission,  after  consultation  of  the  European  Network  of  Transmission 
System  Operators  for  Gas  ("ENTSO-G")  and  the  Agency  for  the  Cooperation  of 
Energy Regulators ("ACER"), may also recommend the establishment of a joint Plan 
at regional level.  

Member States may also decide to establish joint Plans at regional level, instead of or 
in addition to separate national Plans.  

The  Competent  Authority  shall  publish  its  Plans,  including  amended  versions 
according to paragraph 6, and notify them to the Commission without delay. 

Within six months after the notification of the Plans by the Competent Authorities, 
the Commission shall assess the Plans of all Member States. The Commission shall 
consult  ENTSO-G,  ACER,  the  Gas  Coordination  Group  and  other  concerned 
stakeholders  on  those  plans.  Where  the  Commission  considers  that  a  Plan  is  not 

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effective to mitigate the risks as identified in the risk assessment or inconsistent with 
the  risk  scenarios  or  the  Plans  of  other  Member  States,  or  that  it  does  not  comply 
with the provisions of this Regulation or other provisions of Community law, it shall 
require the revision of the Plan.  

Within  2  months  from  notification  of  the  Commission's  request,  the  Competent 
Authority  concerned  shall  amend  its  Plan  and  notify  the  amended  Plan  to  the 
Commission  or  shall  set  out  to  the  Commission  why  it  does  not  agree  with  the 
request. In that case, the Commission may amend or withdraw its request. 

If within 2 months the Commission decides not to amend or withdraw its request, the 
Competent  Authority  shall  comply  with  the  Commission's  request  within  3  months 
after notification of the Commission's decision.  

Article 5 
Content of the Preventive Action Plan 

1. 

The Preventive Action Plan shall contain:  

(a) 

the measures to fulfil the infrastructure and supply standards, as laid down in 
Articles 6 and 7; these measures shall include at least the planning to meet the 
N-1 standard, volumes and capacities needed to supply the protected customers 
in the defined high demand periods, the demand side measures and obligations 
imposed on natural gas undertakings and other relevant bodies; 

(b) 

the risk assessment as laid down in Article 8; 

(c) 

the preventive measures to address the risks identified; 

(d) 

information on the relevant Public Service Obligations.  

The  Preventive  Action  Plan,  in  particular  the  actions  to  meet  the  infrastructure 
standard as laid down in Article 6, shall be based on and consistent with the ten year 
network development plan to be elaborated by the ENTSO-G13.  

The  Preventive  Action  Plan  shall  take  into  account  economic  effectiveness,  effects 
on the functioning of the internal energy market and environmental impact. 

The Preventive Action Plan shall be updated every two years.  

Article 6 
Infrastructure standard 

By  [31  March  2014;  3  years  after  entry  into  force]  at  the  latest,  the  Competent 
Authority  shall  ensure  that  in  the  event  of  a  disruption  of  the  largest  gas  supply 
infrastructure,  the  remaining  infrastructure  (N-1)  has  the  capacity  to  deliver  the 
necessary volume of gas to satisfy total gas demand of the calculated area during a 

2. 

3. 

4. 

1. 

13 

Article XX of Directive OJ L  

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2. 

3. 

4. 

5. 

6. 

7. 

period  of  sixty  days  of  exceptionally  high  gas  demand  during  the  coldest  period 
statistically occurring every twenty years.  

Following  the  recommendation  of  the  Commission  referred  to  in  Article  4(3)  or  in 
situation  referred  to  in  Article  4(4),  the  obligation  set  out  in  paragraph 1  may  be 
fulfilled  at  the  regional  level.  The  N-1  standard  shall  also  be  considered  to  be 
fulfilled where the Competent Authority demonstrates in the Preventive Action Plan 
referred  to  in  Article 5  that  a  supply  disruption  may  be  sufficiently  and  timely 
compensated for by demand side measures. 

The  methodology  for  calculating  the  N-1  standard  as  provided  in  Annex  I  shall  be 
used. It should take into consideration the network configuration and actual gas flows 
as well as the presence of production and storage capacities. The calculated area as 
referred  to  in  Annex  I  shall  be  extended  to  the  appropriate  regional  level,  where 
necessary.  

Each  Competent  Authority  shall  report  to  the  Commission  without  delay  any  non-
compliance with the N-1 standard. 

The  transmission  system  operators  shall  enable  permanent  physical  capacity  to 
transport  gas  in  both  directions  on  all  interconnections  within  two  years  from  the 
entry  into  force  of  this  Regulation,  except  in  cases  where  at  the  request  of  a 
Competent  Authority,  the  Commission  decides  that  the  addition  of  a  bi-directional 
flow capacity would not enhance the security of supply of any Member State. Such 
decision  may  be  reviewed  if  circumstances  change.  The  level  of  the  bi-directional 
flow capacity shall be reached in a cost efficient way and at least take into account 
the  capacity  required  to  meet  the  supply  standard  set  in  Article 7.  Within  that  two 
year period, the gas transmission system operator shall adapt the functioning of the 
transmission system as a whole so as to enable bi-directional gas flows. 

Member States shall ensure that any new transmission infrastructure provides for the 
security  of  supply  by  means  of  sufficient  number  of  entry  and  exit  points,  and 
contributes to the development of a well connected infrastructure.  

National Regulatory Authorities shall take into account the costs of fulfilling the N-1 
standard and the costs of enabling the permanent physical capacity to transport gas in 
both  directions  in  their  approval  of  tariffs  in  line  with  Article  41(8)  of  Directive 
[…/…EC]. In the case of costs incurred in more than one Member State, the national 
regulatory  authorities  of  all  Member  States  concerned  shall  jointly  decide  on  cost 
allocation. Article 8(1) of Regulation (EC) No …/… shall apply. 

Article 7 
Supply standard 

1. 

The  Competent  Authority  shall  take  the  measures  to  ensure  the  gas  supply  to  the 
protected customers of the Member State in the case of: 

a) 

extremely  cold  temperatures  during  a  seven  days  peak  period  statistically 
occurring once every twenty years; and 

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2. 

3. 

4. 

5. 

b) 

any period of sixty days of exceptionally high gas demand during the coldest 
weather periods statistically occurring every twenty years. 

The  Competent  Authority  shall  take  the  measures  to  ensure  the  gas  supply  to  the 
protected customers for the period of sixty days also in the event of an Emergency as 
defined  in  Article  9(2).  The  Competent  Authority  shall  endeavour  to  maintain  the 
supply for the protected customers as long as necessary.  

The obligations imposed on natural gas undertakings for the fulfilment of the supply 
standard  as  laid  down  in  paragraph  1  and  2  ,  shall  be  non-discriminatory  and  shall 
not impose an undue burden on market entrants and small undertakings.  

The  Competent  Authority  shall  allow  the  natural  gas  undertakings  to  meet  these 
criteria on a regional or Community level and shall not require that these standards 
are met based on infrastructure located only within its territory. 

The  Competent  Authority  shall  ensure  that  conditions  for  supplies  to  protected 
customers are established without prejudice to the proper functioning of the internal 
gas market and at a price respecting the market value of the commodity. 

Article 8 
Risk assessment  

1. 

By [30 September 2010; 6 months after entry into force] each Competent Authority 
shall fully assess the risks affecting the security of gas supply in its Member State by: 

a) 

using the standards specified in Articles 6 and 7;  

b) 

taking into account all relevant national and regional circumstances;  

c) 

running various scenarios of exceptionally high demand and supply disruption, 
such  as  failure  of  main  transmission  infrastructures,  storages,  LNG  terminals, 
and disruption of supplies from third country suppliers; 

d) 

identifying the interaction and correlation of risks with other Member States.  

2. 

3. 

The natural gas undertakings, the relevant organisations representing the interests of 
household and industrial customers and the regulatory authority, where it is not the 
Competent Authority, shall cooperate and provide all necessary information for the 
risk assessment.  

The risk assessment shall be repeated every two years before 30 September of that 
year. 

Article 9 
Emergency Plan and Crisis Levels 

1. 

The Emergency Plan shall:  

(1) 

Build upon the crisis levels according to paragraph 2;  

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(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Define the role and responsibilities of the natural gas undertakings and of the 
industrial customers, and their interaction with the Competent Authority and 
where appropriate with the regulatory authority;  

Define the role and responsibilities of the Competent Authority; 

Establish  detailed  procedures  to  be  followed  for  each  crisis  level,  including 
the corresponding schemes on information flows; 

Designate a crisis manager or team and define its role;  

Identify the contribution of the market based measures listed in Annex II for 
coping with the situation in the Alert level and mitigating the situation in the 
Emergency level; 

Identify the contribution of the non-market based measures planned or to be 
implemented  for  the  Emergency  level  listed  in  Annex  III  and  assess  the 
degree to which the use of non-market based measures is necessary to cope 
with  the  crisis,  assess  their  effects  and  define  the  procedures  to  implement 
them; 

Describe  the  mechanisms  used  to  cooperate  with  other  Member  States  for 
each crisis level; 

Detail  the  reporting  obligations  imposed  on  the  natural  gas  undertakings  in 
the Alert and Emergency level; 

(10)  A  list  of  predefined  actions  to  make  gas  available  in  the  case  of  an 
Emergency,  including  the  compensation  mechanisms  and  commercial 
agreements  between  the  parties  involved  in  such  actions.  Such  actions  may 
involve  cross-border  agreements  between  Member  States  and/or  natural  gas 
undertakings. 

2. 

The three main crisis levels shall be as follows: 

(1) 

(2) 

(3) 

Early  warning  level  (Early  Warning):  when  there  is  concrete,  serious  and 
reliable information, possibly triggered by an Early Warning Mechanism, that 
an event may occur which will deteriorate the supply conditions; 

Alert  level  (Alert):  when  a  supply  disruption  or  exceptionally  high  demand 
occurs  but  the  market  is  still  able  to  resolve  the  situation  without  the 
intervention of the Competent Authority;  

Emergency level (Emergency): when an exceptionally high demand occurs or 
when  there  is  a  disruption  of  the  supply  through  or  from  the  largest 
infrastructure or source and there is a credible risk that the supply standard to 
the protected customers can no longer be met with market based instruments 
alone.  

3. 

The Emergency Plan shall ensure that cross-border access to the storage facilities is 
maintained also in case of emergency. The Emergency Plan shall not introduce any 
measure unduly restricting the flow of gas across the borders.  

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4. 

5. 

6. 

1. 

2. 

3. 

4. 

The  Competent  Authority  shall  immediately inform the Commission and provide it 
with  all  the  necessary  information  when  it  declares  any  of  the  crisis  levels.  In  the 
event of an emergency which may result in a call for assistance from the EU and its 
Member  States  the  Competent  Authority  of  the  Member  State  concerned  shall 
without delay notify the Commission’s Civil Protection Monitoring and Information 
Centre. 

When  the  Competent  Authority  declares  an  Emergency  it  shall  follow  the  pre-
defined  actions  as  defined  in  its  Emergency  Plan  and  shall  immediately  inform  the 
Commission in particular of the actions it intends to take according to Article 9(1). 
The Commission may convene the Gas Coordination Group.  

The  Commission  shall  verify  within  one  week  whether  the  declaration  of  an 
Emergency  is  justified  and  whether  it  does  not  impose  an  undue  burden  on  the 
natural  gas  undertakings  and  on  the  functioning  of  the  internal  market.  The 
Commission  may,  in  particular,  ask  the  Competent  Authority  to  modify  measures 
imposing an undue burden on natural gas undertakings and to lift its declaration of 
Emergency if the Commission considers it not or no longer justified. 

Article 10 
Community emergency responses 

The  Commission  may  declare  a  Community  Emergency  at  the  request  of  one 
Competent Authority or when the Community loses more than 10% of its daily gas 
import from third countries as calculated by ENTSO-G. It shall declare a Community 
Emergency  where  more  than  one  Competent  Authority  has  declared  Emergency 
following  the  verification  in  accordance  with  Article  9(6).  It  may  declare  a 
Community  Emergency  for  specifically  affected  geographical  regions  comprising 
more than one Member State. 

The  Commission  shall  convene  the  Gas  Coordination  Group  as  soon  as  it  declares 
Community Emergency.  

In  a  Community  Emergency,  the  Commission  shall  coordinate  the  actions  of  the 
Competent  Authorities.  In  particular  the  Commission  shall  ensure  the  exchange  of 
information, ensure the consistency and effectiveness of the actions at Member State 
and  regional  level  in  relation  to  the  Community  level,  and  shall  coordinate  the 
actions  with  regard  to  third  countries.  The  Commission  may  convene  a  crisis 
management group composed in particular of representatives of the industry and the 
Member States concerned by the Emergency.  

When  the  Commission  considers  that  in  a  Community  Emergency,  an  action  taken 
by a Competent Authority or natural gas undertakings is inappropriate  to deal with 
the Emergency, or that it seriously endangers the situation in another Member State, 
the Commission shall require the Competent Authority or natural gas undertaking to 
change its action. 

Within  three  days  from  notification  of  the  Commission's  request,  the  Competent 
Authority concerned shall change its action and notify the Commission or shall set 
out  to  the  Commission  why  it  does  not  agree  with  the  request.  In  that  case,  the 
Commission may amend or withdraw its request. 

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5. 

6. 

7. 

8. 

1. 

If, within three days, the Commission decides not to amend or withdraw its request, 
the Competent Authority shall comply with the Commission's request without delay.  

The  Competent  Authority  or  natural  gas  undertakings  shall  not  introduce  any 
measure restricting the flow of gas within the internal market at any time. 

In a Community Emergency, the Member States shall ensure that cross-border access 
to  the  storage  facilities  is  maintained  and  shall  not  introduce  any  legal  provisions 
which unduly restrict the flows of gas to the affected markets.  

The Commission shall establish a permanent reserve list for a monitoring task force 
consisting  of  industry  experts  and  representatives  of  the  Commission.  This 
monitoring task force may be deployed when necessary and shall monitor and report 
on  the  gas  flows  within  and  outside  the  Community,  in  cooperation  with  the 
supplying and transiting countries.  

The  Competent  Authority  shall  provide  to  the  Commission’s  Civil  Protection 
Monitoring and Information Centre the information on any need for assistance. The 
Civil Protection Monitoring and Information Centre shall assess the overall situation 
and  provide  advice  on  the  assistance  that  should  be  provided  to  the  most  affected 
Member States, and where appropriate to third countries. 

Article 11 
Gas Coordination Group 

A  Gas  Coordination  Group  is  established  to  facilitate  the  coordination of  measures 
concerning the security of supply. The Group shall be composed of representatives of 
the  Competent  Authorities,  ACER,  ENTSO-G  and  representative  bodies  of  the 
industry  concerned  and  relevant  customers.  The  Commission  shall  decide  on  the 
composition of the Group ensuring its representativity and shall chair the Group. The 
Group shall establish its rules of procedure. 

2. 

The  Gas  Coordination  Group  shall  assist  the  Commission  in  particular  on  issues 
related to:  

(a) 

security of gas supply, at any time and more especially in times of Emergency; 

(b) 

all  information  relevant  for  security  of  gas  supply  at  national,  regional  and 
Community levels; 

(c) 

best practices and possible guidelines to all the parties concerned; 

(d) 

the level of security of supply, benchmarks and assessment methodologies; 

(e) 

(f) 

national,  regional  and  Community  scenarios  and  testing  the  levels  of 
preparedness; 

coordination  of  measures  to  deal  with  Emergency  within  the  Community, 
Energy Community Treaty Countries and with third Countries; 

(g) 

implementation of the Plans; 

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(h) 

assistance needed by the most affected Member States. 

3. 

The Commission shall convene the Gas Coordination Group on a regular basis. 

Article 12 
Information exchange 

1. 

The  Competent  Authority  during  the  Emergency  shall  have  in  particular  the 
following information available on a daily basis: 

(a) 

daily gas demand and supply forecasts for the following three days; 

(b)  hourly flow of gas at all cross-border entry and exit points as well as all points 
connecting a production facility to the network, storage, LNG in mcm/d; 

(c) 

period, expressed in days, during  which  it is possible to ensure gas supply to 
the protected customers 

2. 

The Commission is entitled, in the case of a Community Emergency, to request the 
Competent Authority to provide it without delay at least:  

(a) 

the information as laid down in paragraph 1; 

(b) 

to  be  undertaken  and  already 
information  on 
implemented by the Competent Authority to mitigate the Emergency, and their 
effectiveness; 

the  measures  planned 

(c) 

the  requests  made  for  additional  measures  to  be  taken  by  other  Competent 
Authorities; 

(d) 

the measures implemented at the request of other Competent Authorities. 

The  Competent  Authorities  and  the  Commission  shall  ensure  the  confidentiality  of 
commercially sensitive information. 

The  Competent  Authority  shall  provide  to  the  Commission  information  on  the 
deployment of its Emergency Plan and the measures taken.  

After  an  Emergency,  the  Competent  Authority  shall  without  delay  provide  to  the 
Commission  a  detailed  assessment  of  the  Emergency  and  the  effectiveness  of  the 
implemented  measures,  including  the  assessment  of  economic  impact  of  the 
Emergency,  the  impact  of  the  fuel  switching  on  the  levels  of  the  emissions,  the 
impact on the electricity sector and the assistance provided to and/or received from 
the Community and its Member States.  

By  [30  September  2010;  6  months  after  entry  into  force]  at  the  latest  in  order  to 
allow the Commission to assess the situation of the security of supply at Community 
level: 

a)  Member States shall submit to the Commission the existing inter-governmental 
agreements  concluded  with  third  countries  which  have  an  impact  on  the 
development of gas infrastructures and supplies; before concluding new inter-

3. 

4. 

5. 

6. 

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governmental agreements, the Member States shall inform the Commission to 
assess their compliance with the internal market legislation;  

b)  Natural gas undertakings shall notify the Commission of the following details 

of the contracts concluded with suppliers from third countries: 

- 

- 

- 

- 

Contract duration and extension provisions; 

Contracted volumes in total, on an annual basis and the average volume 
per month; 

Flexibility of contracted volumes, including provisions related to take-or-
pay obligations. 

Contracted delivery points. 

Article 13 
Monitoring and reporting of security of gas supply 

1. 

(a) 

(b) 

(c) 

(d) 

2. 

In addition to the monitoring and reporting obligations provided for in Article 5 of 
the  Gas  Directive  the  Competent  Authority  shall  publish  and  forward  to  the 
Commission a report by 31 July each year containing the following data:  

calculation of N-1 indicator and data necessary for such calculation, progress made 
in investments needed to cope with N-1, country specific difficulties encountered in 
the implementation new alternative solutions;  

annual  amounts,  durations  and  supply  country  covered  by  gas  supply  import 
contracts; 

maximal interconnection capacity of each entry and exit points to and from the gas 
systems; 

the main elements of the relevant intergovernmental agreements concluded with third 
countries.  

The  Competent  Authorities  and  the  Commission  shall  ensure  the  confidentiality  of 
commercially sensitive information.  

Article 14 
Monitoring  

By  […]  the  Commission,  having  assessed  the  notified  Plans  and  after  consulting  the  Gas 
Coordination  Group,  shall  draw  conclusions  as  to  possible  means  to  enhance  security  of 
supply  at  Community  level  and  shall  report  to  the  European  Parliament  and  the  Council  on 
the  implementation  of  this  Regulation.  The  report  shall  include,  where  appropriate, 
recommendations for improvement of this Regulation. 

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Directive 2004/67/EC is repealed. 

Article 15 
Repeal 

Article 16 

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

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX I: CALCULATION OF THE N-1 INDICATOR" 

1. Calculation of the N-1 indicator  

The N-1 indicator describes the ability of the gas infrastructure's capacity to supply the gas for 
maximal demand in the calculated area in case of disruption of the largest infrastructure.  

"Calculated  area"  means  a  geographical  area  for  which  the  application  of  N-1  indicator  is 
calculated. 

Technical  capacity14  of  all  remaining  available  gas  supply  infrastructure  in  the  event  of 
disruption of the largest infrastructure should be at least equal to the total gas demand of the 
calculated  area  during  a  period  of  sixty  days  of  exceptionally  high  gas  demand  during  the 
coldest  period  statistically  occurring  every  twenty  years.  The  N-1  indicator,  calculated  as 
below, should be at least equal to 100%.  

……………………….IPm+Pm+Sm+LNGm – Im -Tout 

N-1[%] = --------------------------------------------- * 100, N-1 ≥ 100%  

……………………………………….Dmax  

Definitions required for the calculation of the N-1 indicator: 

Supply side definitions 

IPm  –  Maximal  technical  capacity  of  import  pipelines  (mcm/d)  means  a  sum  of  maximal 
technical capacity of gas pipelines supplying gas to the calculated area.  

Pm  –  Maximal  production  capacity  (mcm/d)  means  the  sum  of  maximal  possible  rates  of 
production in the calculated area from all gas production facilities taking into account critical 
elements like field recovery; 

Sm – Crisis deliverability (mcm/d) means the maximal rate of withdrawal of all storages in 
the  calculated  area  which  is  possible  to  maintain  during  each  of  the  sixty  days  of  the 
disruption period. This rate could be established by a combination of the withdrawal rates of 
various types of all storages of the calculated area used during the sixty days period.  

LNGm  –  Maximal  LNG  facility  capacity  (mcm/d)  means  the  sum  of  maximal  possible 
capacities  at  all  LNG  terminals  for  the  liquefaction  of  natural  gas  or  the  importation, 
offloading,  ancillary  services,  temporary  storage  and  re-gasification  of  LNG,  taking  into 
account critical elements like maximal ships and storage capacities availability and technical 
send-out capacity to the system, providing gas in a 60 days period to the calculated area.  

Im  –  Capacity  of  the  largest  gas  infrastructure  (mcm/d),  which  supplies  the  calculated  area 
with the highest share of gas.  

14 

Draft Regulation (EC) No …/… of the European Parliament and of the Council on conditions for access 
to  the  natural  gas  transmission  networks  and  repealing  Regulation  (EC)  No  1775/2005  Article  2(18) 
"technical capacity" means the maximum firm capacity that the transmission system operator can offer 
to  the  network  users,  taking  account  of  system  integrity  and  the  operational  requirements  of  the 
transmission network. 

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Where  the  calculated  area  provides  a  transmission  capacity  from  more  than  one  pipeline  or 
entry  point  and  it  is  not  the  largest  infrastructure  (Ipm  ≠  Im),  the  remaining  transmission 
capacity of the calculated area also needs to be subtracted in the numerator.  

Tout – Transmission outflow capacity (mcm/d) is the sum of remaining technical capacity for 
transmission  of  gas  via  the  calculated  area  in  the  event  of  disruption  of  the  largest 
infrastructure.  

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Demand calculation 

Dmax  –  means  a  capacity  to  supply  the  relevant  daily  gas  demand  of  the  calculated  area 
which is related to the coldest day with exceptionally high gas demand statistically occurring 
every twenty years. 

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ANNEX II: LIST OF MARKET BASED SECURITY OF GAS SUPPLY MEASURES 

In  developing  the  Preventive  and  Emergency  Plans  the  Competent  Authority  shall  take  into 
account the following indicative and non-exhaustive list of measures:  

Supply side 

•  Increased production flexibility  

•  Increased import flexibility  

•  Commercial gas storage – withdrawal capacity and volume of gas in storage 

•  LNG terminal capacity and maximal send-out capacity 

•  Diversification of supplies and routes 

•  Reverse flows 

•  Coordinated dispatching by transmission system operators 

•  Long-term and short-term contracts 

•  Investments in infrastructure 

•  Contractual arrangements to ensure security of gas supply 

Demand side  

•  Interruptible contracts 

•  Fuel switch possibility – alternative back-up fuels in industrial and power generation plants 

•  Increased efficiency  

•  Increased use of renewable energy sources 

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ANNEX III: LIST OF NON-MARKET BASED SECURITY OF GAS SUPPLY 
MEASURES 

In  developing  the  Preventive  and  Emergency  Plans  the  Competent  Authority  shall 
consider the contribution of the following measures only in the case of an Emergency: 

Supply side 

•  Strategic gas storage  

•  Forced fuel switch  

•  Use  of  stocks  of  alternative  fuels  (e.g.  in  line  with  90  days  of  oil  stocks 

obligation) 

•  Use of electricity generated from other sources other than gas 

Demand side 

•  Various steps of compulsory demand reduction 

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LEGISLATIVE FINANCIAL STATEMENT 

This document is intended to accompany and complement the Explanatory Memorandum. 
As such, when completing this Legislative Financial Statement, and without prejudice to 
its legibility, an attempt should be made to avoid repeating information contained in the 
Explanatory  Memorandum.  Before  filling  in  this  template,  please  refer  to  the  specific 
Guidelines  that  have  been  drafted  to  provide  guidance  and  clarification  for  the  items 
below.  

1. 

NAME OF THE PROPOSAL : 

"Regulation  of  the  European  Parliament  and  the  Council  concerning  measures  to 
safeguard security of gas supply" (Activity related to missions of monitoring experts) 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

06: Energy and transport 

06 04: Conventional and renewable energies  

3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B..A lines)) including headings : 

06  01  01:  Expenditure  related  to  staff  in  active  employment  of  ‘Energy  and 
transport‚ policy area’  

06 04 03: Security of conventional energy supplies 

06  01  02:  External  and  other  management  expenditures  in  support  of  ‘Energy 
and transport‚ policy area’  

3.2. 

Duration of the action and of the financial impact: 

Start: 2010  End not determined 

3.3. 

Budgetary characteristics (add rows if necessary) : 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

EN 

26 

   EN 

06.01.01 

Non-comp 

Non-
diff15 

06.04.03 

Non comp 

Diff  

06.01.02 

Non cmp 

Non diff 

 NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO  

N°5 

N°1a 

N°5 

15 

Non-differentiated appropriations hereafter referred to as NDA 

EN 

27 

   EN 

 
                                                 
4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1.  Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Section 
no. 

Expenditure type 

n + 1 

n + 2 

n + 3 

n + 4 

Year 
n 

n + 5 
and 
later 

Total 

Operational expenditure16 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

Administrative expenditure within reference amount17 

Technical 
& 
administrative  assistance 
(NDA) 

8.2.4 

c 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

a+c  0.5 

b+c  0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

Administrative expenditure not included in reference amount18 

3 

3 

3 

3 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

8.2.5 

d 

0.24
4 

0.24
4 

0.24
4 

0.24
4 

0.24
4 

0.24
4 

1.464 

Administrative  costs,  other 
than  human  resources  and 
associated 
not 
included in reference amount 
(NDA) 

costs, 

8.2.6 

e 

0.15  0.15 

0.15 

0.15 

0.15 

0.15 

0.9 

16 
17 
18 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

EN 

28 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
 
 
 
 
                                                 
Total indicative financial cost of intervention  

TOTAL  CA 
cost 
Resources 

of 

TOTAL  PA 
cost 
Resources 

of 

including 
Human 

including 
Human 

Co-financing details 

a+c
+d+
e 

b+c
+d+
e 

0.89  0.89 

0.89 

0.89 

0.89 

0.89 

5.364 

0.89  0.89 

0.89 

0.89 

0.89 

0.89 

5.364 

If the proposal involves co-financing by Member States, or other bodies (please specify 
which),  an  estimate  of  the  level  of  this  co-financing  should  be  indicated  in  the  table 
below (additional lines may be added if different bodies are foreseen for the provision of 
the co-financing): 

EUR million (to 3 decimal places) 

n + 1 

n + 2 

n + 3 

n + 4 

Year 
n 

n  +  5 
and 
later 

Total 

Co-financing body 

…………………… 

TOTAL CA including co-
financing 

f 

a+c
+d+
e+f 

4.1.2.  Compatibility with Financial Programming 

x 

Proposal is compatible with existing financial programming. 

Proposal will entail reprogramming of the relevant heading in the financial 

(cid:133) 
perspective. 

(cid:133) 
Proposal may require application of the provisions of the Interinstitutional 
Agreement19 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

x 

Proposal has no financial implications on revenue 

(cid:133) 

Proposal has financial impact – the effect on revenue is as follows: 

19 

See points 19 and 24 of the Interinstitutional agreement. 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
NB:  All  details  and  observations  relating  to  the  method  of  calculating  the 
effect on revenue should be shown in a separate annex. 

EN 

30 

   EN 

Budget line 

Revenue 

EUR million (to one decimal place) 

Prior to
action 
[Year n-
1] 

[Year 
n] 

Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5]20

a) Revenue in absolute terms 

b) Change in revenue 

 ∆ 

(Please  specify  each  revenue  budget  line  involved,  adding  the  appropriate 
number of rows to the table if there is an effect on more than one budget line.) 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

Year n 

n + 1 

n + 2 

n + 3 

n + 4 

n + 5 
and 
later 

Total 
number 
human resources 

of 

2 

2 

2 

2 

2 

2 

5. 

CHARACTERISTICS AND OBJECTIVES 

in  the  Explanatory 
Details  of  the  context  of  the  proposal  are  required 
Memorandum.  This  section  of  the  Legislative  Financial  Statement  should  include 
the following specific complementary information: 

5.1. 

Need to be met in the short or long term 

As proposed in the "Regulation of the European Parliament and the Council concerning 
measures  to  safeguard  security  of  gas  supply",  the  Commission  shall  establish  a 
permanent monitoring task force consisting of industry experts and representatives of the 
Commission.  The  monitoring  task  force  shall  be  deployed  in  case  of  disruption  or 
potential disruption of gas supplies and shall monitor and report on the gas flows within 
or  outside  the  European  Union,  in  cooperation  with  the  supplying  and  transiting 
countries.  

20 

Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

As  demonstrated  in  the  recent  gas  crisis  of  January  2009,  the  issue  of  security  of  gas 
supply  cannot  be  tacked  only  with  initiatives  at  Member  States  level.  Community 
involvement is needed to ensure a coordinated action within the Union to minimize the 
impact  of  the  crisis  as  well  as  implementing  coherent  initiatives  vis-à-vis  suppliers  and 
transit countries. 

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

As is has been outlined in the January 2009 gas crisis the Community need to be provided 
with  tool  to  deploy,  at  very  short  notice  a  monitoring  team  including  expert  from  the 
industry to assist Commission officials during gas crisis. 

5.4.  Method of Implementation (indicative) 

Show below the method(s)21 chosen for the implementation of the action. 

X Centralised Management 

x 

ٱ 

ٱ 

Directly by the Commission 

Indirectly by delegation to: 

Executive Agencies 

Bodies  set  up  by  the  Communities  as  referred  to  in  art.  185  of  the  Financial 

ٱ 
Regulation 

ٱ 

National public-sector bodies/bodies with public-service mission 

ٱ Shared or decentralised management 

ٱ 

ٱ 

With Member states 

With Third countries 

ٱ Joint management with international organisations (please specify) 

Relevant comments: 

21 

If more than one method is indicated please provide additional details in the "Relevant comments" 
section of this point 

EN 

32 

   EN 

                                                 
6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

The activity of the monitoring team will assessed and included in a report produced every 
year.  

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

Not applicable 

6.2.2.  Measures  taken  following  an  intermediate/ex-post  evaluation  (lessons  learned 

from similar experiences in the past) 

Not applicable 

6.2.3.  Terms and frequency of future evaluation 

Not applicable 

7. 

ANTI-FRAUD MEASURES 

The  monitoring  activity  will  be  assessed  once  a  year  and  report  will  be  produced.  The 
activity  of  the  monitoring  team  will  be  subject  to  standard  antifraud  controls  measures 
implemented in the Commission.  

EN 

33 

   EN 

8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

of 
(Headings 
Objectives,  actions  and 
outputs 
be 
provided) 

should 

Type of output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 and 
later 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

Commitment appropriations in EUR million (to 3 decimal places) 

10 

0.5 

10 

0.5 

10 

0.5 

10 

0.5 

10 

0.5 

10 

0.5 

50 

2.5 

for 
Payments 
mission  of  experts 
(estimated 
10 
mission for 50 days 
each) 

OPERATIONAL 
OBJECTIVE 
22……… 

No.1 

Action  1  mission  of  the 
monitoring team 

- Output 1 

- Output 2 

Action 2………………. 

- Output 1 

Sub-total Objective 1 

OPERATIONAL 
OBJECTIVE 
1……… 

No.2 

Action 1………………. 

- Output 1 

22 

As described under Section 5.3 

EN 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Sub-total Objective 2 

OPERATIONAL 
OBJECTIVE No.n 1 

Sub-total Objective n 

TOTAL COST 

10 

0.5 

10 

0.5 

10 

0.5 

10 

0.5 

10 

0.5 

10 

0.5 

50 

2.5 

EN 

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of 
post 

Staff to be assigned to management of the action using existing and/or additional 
resources (number of posts/FTEs) 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 

A*/AD 

2 

2 

2 

2 

2 

2 

B*, 
C*/AST 

Officials 
or 
temporary 
staff23 
(XX 01 
01) 

Staff  financed24  by 
art. XX 01 02 

staff25 
Other 
financed  by  art.  XX 
01 04/05 

TOTAL 

2 

2 

2 

2 

2 

2 

8.2.2.  Description of tasks deriving from the action 

Implementation of monitoring missions in Member States and or third countries as necessary 
on  the  occasion  of  gas  crisis.  The  results  of  the  mission  will  be  reported  back  to  Members 
States through mission reports and in meetings of the Gas Coordination Group.  

8.2.3.  Sources of human resources (statutory) 

(When more than one source is stated, please indicate the number of posts originating from 
each of the sources) 

Posts currently allocated to the management of the programme to be replaced 

x 
or extended 

(cid:133) 

Posts pre-allocated within the APS/PDB exercise for year n 

(cid:133) 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 

(cid:133) 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 

(cid:133) 
year in question 

23 
24 
25 

Cost of which is NOT covered by the reference amount 
Cost of which is NOT covered by the reference amount 
Cost of which is included within the reference amount 

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.4.  Other  Administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

Budget line 

(number and heading) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5  

and 
later 

TOTAL 

Technical 

1 
and 
assistance (including related staff costs) 

administrative 

Executive agencies26 

Other 

technical 

and 

administrative 

assistance 

- intra muros  

- extra muros 

Total  Technical  and  administrative 
assistance 

8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

Type of human resources 

Year n 

Year n+1  Year n+2  Year n+3  Year n+4 

Year n+5 

and later 

EUR million (to 3 decimal places) 

Officials and temporary staff (XX 01 
01) 

Staff  financed  by  Art  XX  01  02 
(auxiliary, END, contract staff, etc.) 

(specify budget line) 

Total cost of Human Resources 
and associated costs (NOT in 
reference amount) 

0.244 

0.244 

0.244 

0.244 

0.244 

0.244 

0.244 

0.244 

0.244 

0.244 

0.244 

0.244 

Calculation– Officials and Temporary agents 

Reference should be made to Point 8.2.1, if applicable 

26 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

EN 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2 AD FTE (full time equivalent) 122.000 €/official/year* 2= 244.000 €  

Calculation– Staff financed under art. XX 01 02 

Reference should be made to Point 8.2.1, if applicable 

8.2.6.  Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places) 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n 

Year 
n+5 

and 
later 

TOTAL 

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & Conferences 

0.15 

0.15 

0.15 

0.15 

0.15 

0.15 

0.9 

XX 01 02 11 03 – Committees27  

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

 2 

Total 

Other  Management 

Expenditure (XX 01 02 11) 

3 

Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

Total Administrative expenditure, other 
than human resources and associated 
costs (NOT included in reference 
amount) 

0.15 

0.15 

0.15 

0.15 

0.15 

0.15 

0.9 

Calculation - Other administrative expenditure not included in reference amount 

Periodic  meeting  of  the  Gas  Coordination  Group  in  which  issues  related  to  gas  security  of 
supply are discussed (30 experts x 1000€ x 5 meetings).  

27 

Specify the type of committee and the group to which it belongs. 

EN 

38 

   EN