Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL Repealing Regulation (EU) No 256/2014 of the European Parliament and of the Council concerning the notification to the Commission of investment projects in energy infrastructure within the European Union
Date: 2017-12-19
Institutions: Directorate-General for Energy, European Commission
Subjects: biofuel, carbon capture and storage, electrical energy, energy grid, energy industry, energy production, exchange of information, gas industry, investment project, oil industry

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   EUROPEAN COMMISSION  Brussels, 19.12.2017  COM(2017) 769 final 2017/0347 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL Repealing Regulation (EU) No 256/2014 of the European Parliament and of the Council concerning the notification to the Commission of investment projects in energy infrastructure within the European Union     
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  following  proposal  for  repealing  Regulation  (EU)  No  256/2014  (‘the 
Regulation’)  is  put  forward  in  the  context  of  the  Commission's  REFIT  programme 
and  commitment  on  better  regulation.  The  objective  is  to  ensure  a  legislative 
framework that is fit for purpose and high-quality, as stated in the Interinstitutional 
Agreement  between  the  European  Parliament,  the  Council  of  the  European  Union 
and  the  European  Commission  on  Better  Law-Making1.  The  Commission  has 
identified  this  Regulation  as  no  longer  fit  for  purpose  and  proposes  that  it  be 
repealed. 

On  26  February  2014,  Regulation  (EU)  No  256/2014  on  the  notification  of 
investment  projects  in  energy  infrastructure  within  the  European  Union  to  the 
Commission  was  adopted  to  ensure  that  the  EU’s  energy  policy  develops  in  an 
effective way and responds to the EU’s real needs. This Regulation was supported by 
Commission  implementing  Regulation  (EU)  No  1113/2014  of  16  October  2014, 
which set out the form and technical details of the notification referred to in Articles 
3 and 5 of Regulation (EU) No 256/20142. 

Based  on  Article  194  of  the  Treaty  on  the  Functioning  of  the  European  Union, 
Regulation  (EU)  No  256/2014  and  Commission  implementing  Regulation  (EU)  No 
1113/2014 required Member States to notify the Commission of investment projects 
on  which  construction  or  decommissioning  work  had  started  or  on  which  a  final 
investment decision had been taken. In this way, the Commission was meant to gain 
access to data and information on planned developments in production, transmission 
and storage capacities, as well as on projects in the various energy sectors of interest 
to the EU and important for future energy and investment policies. 

Therefore,  the  Regulation  aimed  to  give  the  Commission  an  overall  picture  of  the 
development of investment in energy infrastructure in the EU so that it could better 
fulfil its responsibilities in the field of energy.  

The  obligations  under  this  Regulation  were  already  in  force  under  Council 
Regulation (EU, Euratom) No 617/2010 of 24 June 2010 concerning the notification 
to  the  Commission  of  investment  projects  in  energy  infrastructure  within  the 
European  Union  and  repealing  Regulation  (EC)  No  736/963.    The  Court  of  Justice 
annulled  Council  Regulation  No  617/20104
  due  to  its  wrong  legal  basis,  but  its 
effects remained until Regulation (EU) No 256/2014 was adopted.  

Member States  have  gone through three reporting exercises (2011,  2013 and  2015) 
since the obligations  under this Regulation and  its  predecessor, Council Regulation 
No  617/2010,  have  been  in  place.  Therefore,  enough  time  has  elapsed  for  the 
Commission to be able to carry out an evidence-based critical analysis of whether the 
Regulation has had the expected results.  

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Interinstitutional Agreement between the European Parliament, the Council of the European Union and 
the European Commission on Better Law-Making. OJ L 123, 12.5.2016, p. 1–14. 
OJ L 302, 22.10.2014, p. 26,  
OJ L 180, 15.7.2010, p. 7 
Judgment of the Court of Justice of 6 September 2012 in Case C-490/10, Parliament v Council (ECR 
2012, p. I-0000)). 

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2. 

• 

1. 

2. 

3. 

4. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations, regulatory fitness and simplification 

The Commission ordered three external studies after the three Member State reporting 
exercises  took  place  under  this  Regulation  and  its  predecessor.  In  the  light  of  their 
findings,  in  2016  the  Commission  reviewed  Regulation  (EU)  No  256/2014  as  per 
Article 11 of the Regulation itself. This was part of a wider fitness check that covered 
the  planning  and  reporting  obligations  under  the  body  of  energy  legislation.  The 
Commission published it in November 20165, along with its proposal for a Regulation 
on the Governance of the Energy Union6.  

This exercise revealed that: 

There were significant overlaps between reporting obligations under this Regulation 
and reporting obligations to ENTSO-E7 and ENTSO-G8, with little to no value added 
by obligations under this Regulation.  

Most of the information provided by the Member States under this Regulation can be 
easily  obtained  from  other  sources:  ENTSOs  (European  Network  of  Transmission 
System  Operators),  TYNDPs  (ten-year  network  development  plans),  the  annual 
reports  of  Transmission  System  Operators  and  utility  companies,  national  sectoral 
development plans (e.g. renewables action plans), etc. Furthermore, the Commission 
regularly collects market information through its Energy Market Observation System 
(EMOS). 

Across  all  three  exercises  completed,  data  collected  only  covered  about  half  of  the 
EU's energy sector. 

Inherent  difficulties  in  implementing  some  of  the  Regulation’s  requirements, 
especially  in  relation  to  information  to  be  provided  regarding  future  capacity, 
undermined the usefulness of the three reporting exercises carried out. 

Consequently, the Commission concluded that Regulation (EU) No 256/2014 did not 
have the expected results. It should, therefore, be proposed that it be repealed. 

• 

Stakeholder consultations 

As  part  of  the  preparatory  work  for  its  proposal  for  a  legislative  initiative  on  the 
Governance  of  the  Energy  Union9,  the  Commission  carried  out  an  extensive 

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Staff Working Document(2016) 396 final. 
http://ec.europa.eu/energy/sites/ener/files/documents/1_en_autre_document_travail_service_part1_v4.p
df 
COM/2016/0759  final/2  - 2016/0375  (COD).  Commission  proposal for  a  Regulation  of  the  European 
Parliament and of the Council on the Governance of the Energy Union, amending Directive 94/22/EC, 
Directive  98/70/EC,  Directive  2009/31/EC,  Regulation (EC)  No  663/2009,  Regulation (EC)  No 
715/2009,  Directive  2009/73/EC,  Council Directive  2009/119/EC,  Directive  2010/31/EU,  Directive 
2012/27/EU,  Directive  2013/30/EU  and  Council  Directive  (EU)  2015/652  and  repealing  Regulation 
(EU) No 525/2013.  
European Network of Transmission System Operator for Electricity 
European Network or Transmission System Operator for Gas 
COM/2016/0759 final/2  - 2016/0375  (COD).  Commission  proposal for  a  Regulation  of  the  European 
Parliament and of the Council on the Governance of the Energy Union, amending Directive 94/22/EC, 
Directive  98/70/EC,  Directive  2009/31/EC,  Regulation (EC)  No  663/2009,  Regulation (EC)  No 
715/2009,  Directive  2009/73/EC,  Council Directive  2009/119/EC,  Directive  2010/31/EU,  Directive 

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consultation  to  collect  views  and  input  from  stakeholders,  citizens  and  Member 
States. The consultation asked how existing planning and reporting arrangements in 
the energy field could be improved to meet the objectives of the Energy Union and to 
reduce administrative burden. 

The public consultation was launched on 11 January 2016, lasted over 12 weeks and 
closed  on  22  April  2016.  The  responses  fed  into  the  Commission's  evaluation  and 
fitness check of existing planning and reporting obligations as well as into the impact 
assessment of its legislative proposal on the Governance of the Energy Union. 

Respondents to the consultation identified the obligations under Regulation (EU) No 
256/2014 as ones which could be repealed10. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The proposal repeals Regulation (EU) No 256/2014 of the European Parliament and 
of the Council of 26 February 2014 concerning the notification to the Commission of 
investment  projects  in  energy  infrastructure  within  the  European  Union,  replacing 
Council  Regulation  (EU,  Euratom)  No  617/2010  and  repealing  Council  Regulation 
(EC) Nº 736/96. 

The legal basis of Regulation (EU) No 256/2014, namely, Article 194 of the Treaty 
on  the  functioning  of  the  European  Union,  is  subject  to  the  ordinary  legislative 
procedure.  The  Commission  is  therefore  proposing  the  repeal  of  this  Regulation  to 
the European Parliament and to the Council. 

4. 

BUDGETARY IMPLICATIONS  

The  Regulation  had  very  limited  budgetary  implications,  which  related  to  expenditure  on 
information  technology,  data  purchasing  and  reimbursement  of  experts.  No  major  direct 
impact was expected for Member State budgets either. 

The  repeal  of  this  Regulation  will  put  an  end  to  the  limited  expenditure  linked  to  it.  It  will 
help  rationalise  the  use  of  Commission  and  Member  State  resources  by  removing  double 
reporting obligations and processing of data which have become available via other, higher-
quality sources. 

2012/27/EU,  Directive  2013/30/EU  and  Council  Directive  (EU)  2015/652  and  repealing  Regulation 
(EU) No 525/2013.  
See ibid SWD(2016) 396 final, p. 118. 

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2017/0347 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

Repealing Regulation (EU) No 256/2014 of the European Parliament and of the Council 
concerning the notification to the Commission of investment projects in energy 
infrastructure within the European Union  

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 194 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 Committee11, 
Having regard to the opinion of the Committee of the Regions12,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Parliament,  the  Council  of  the  European  Union  and  the  European 
Commission confirmed their joint commitment to updating and simplifying legislation 
in the Interinstitutional Agreement on Better Law-Making of 13 April 201613. 

In order to clean -up and reduce the volume of legislation, it is necessary to identify 
legislation  that  is  obsolete  or  no  longer  fit-for-purpose.  Repealing  such  legislation 
keeps the legislative framework transparent, clear and easy to use. 
Regulation  (EU)  No  256/2014  of  the  European  Parliament  and  of  the  Council14 
required  Member  States  to  notify  the  Commission  of  investment  projects  on  which 
construction  or  decommissioning  work  had  started  or  on  which  a  final  investment 
decision had been taken.  

(4) 

The  obligations  under  Regulation  (EU)  No  256/2014  concerning  the  notification  of 
investment  projects  and  certain  information  and  data  relating  to  it  already  existed 

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OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 123, 12.5.2016, p. 1. 
Regulation  (EU)  No  256/2014  of  the  European  Parliament  and  of  the  Council  of  26  February  2014 
concerning the notification to the Commission of investment projects in energy infrastructure within the 
European  Union,  replacing  Council  Regulation  (EU,  Euratom)  No  617/2010  and  repealing  Council 
Regulation (EC) No 736/96 (OJ L 84, 20.3.2014, p.61). 

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(5) 

(6) 

(7) 

under  Council  Regulation  (EU,  Euratom)  No  617/201015.  The  Court  of  Justice 
annulled  Regulation  (EU,  Euratom)  No  617/201016  due  to  it  not  having  the  correct 
legal basis, but its effects were maintained until Regulation No 256/2014 was adopted.  

The previous legislative framework was intended to provide the Commission with data 
and  information  on  planned  developments  in  production,  transmission  and  storage 
capacities  as  well  as  on  projects  in  the  energy  sectors.  It  was  intended  to  give  the 
Commission  an  overall  picture  of  the  development  of  investment  in  energy 
infrastructure in the Union. 

There have been three reporting exercises since the creation of the obligations under 
Regulation  (EU)  No  256/2014  and  Council  Regulation  (EU,  Euratom)  No  617/2010 
(in 2011, 2013 and 2015). Furthermore, the Commission ordered three external studies 
after the three Member States' reporting exercises which took place under Regulation 
(EU) No 256/2014. Consequently, enough time has elapsed and sufficient experience 
has been gained for the Commission to be able to carry out an evidence-based critical 
analysis of whether the Regulation has delivered the expected results.  

In  2016  the  Commission  carried  out  the  review  provided  for  in  Article  11  of 
Regulation  (EU)  No  256/2014,  including  a  stakeholder  consultation  covering  all 
planning and reporting obligations in the energy sector. The Commission came to the 
conclusion  that  there  were  significant  overlaps  between  reporting  obligations  under 
Regulation  (EU)  No  256/2014  and  the  reporting  obligations  to  the  Energy 
Transmission  System  Operators  ENTSO-E  and  ENTSO-G.  It  also  became  apparent 
that  the  quality  and  appropriateness  of  the  information  and  data  received  were  often 
poor, and that this information and data had become available to the Commission via 
other  sources,  such  as  ENTSOs  (European  Network  of  Transmission  System 
Operators),  TYNDPs  (ten-year  network  development  plans),  the  annual  reports  of 
Transmission  System  Operators  and  utility  companies,  national  development  plans, 
etc. Furthermore, it was noted that the Commission had direct access to  market data 
via its Energy Market Observation System (EMOS). 

(8) 

Regulation (EU) No 256/2014 has therefore not delivered the expected results in terms 
of  quantity,  quality  and  appropriateness  of  data  and  information  received  by  the 
Commission. 

(9) 

Consequently, Regulation (EU) No 256/2014 should be repealed, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EU) No 256/2014 is repealed. 

Article 1 

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Council  Regulation  (EU,  Euratom)  No  617/2010  of  24  June  2010  concerning  the  notification  to  the 
Commission of investment projects in energy infrastructure within the European Union and repealing 
Regulation (EC) No 736/96 (OJ L 180, 15.7.2010, p. 7). 
Judgment  of  the  Court  of  Justice  of  6  September  2012  in  Case  C-490/10,  Parliament  v  Council, 
ECLI:EU:C:2012:525 

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

Article 2 

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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