Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2019/943, as regards future-proofing electricity bills in the Union, through reducing system costs and fostering electrification and digitalisation
Date: 2026-07-17
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, European Union Agency for the Cooperation of Energy Regulators, electrical energy, electricity supply, energy cooperation, energy efficiency, energy grid, energy transition, renewable energy, single market

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   EUROPEAN COMMISSION  Brussels, 17.7.2026  COM(2026) 600 final 2026/0203 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2019/943, as regards future-proofing electricity bills in the Union, through reducing system costs and fostering electrification and digitalisation {SWD(2026) 600 final} (Text with EEA relevance)  
 
EXPLANATORY MEMORANDUM 

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• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  European  Commission  (‘Commission’)  adopted  the  Affordable  Energy  Action  Plan  in 
February 20251, with  measures  aiming  to  decrease energy  costs for citizens and businesses, 
most of them to be delivered in the short-term. The Action Plan examined the factors driving 
up  energy  prices  and  identified  energy  supply  costs  and  taxation  as  well  as  network  and 
system  costs  as  key  areas  to  address  in  order  to  help  reduce  the  energy  bills  for  European 
consumers.  The  Commission  followed  up  on  this  Plan  with  several  initiatives,  including 
Guidelines  on  future-proof  network  charges2,  the  European  Grids  Package3,  the  Citizens 
Energy Package4 and the Strategic Roadmap for digitalisation and AI in the energy sector5.  

In light of events in the Middle East, on 19 March 2026 the European Council called on the 
Commission  to  urgently  present  targeted  measures  for  concrete  actions  to  lower  all 
components of electricity prices.  

The  Commission  responded  with  the  publication  of  AccelerateEU6,  explaining  the  need  to 
reduce  energy  costs  by  accelerating  the  deployment  of  homegrown  clean  energy  and 
increasing  the  rate  of  electrification.  This  should  be  combined  with  further  upgrading  the 
electricity system through measures on the construction of new grid infrastructure, the use of 
existing infrastructure and taxation.  

This  proposal  supports  the  objective  of  AccelerateEU  by  improving  the  design  of  network 
charges to ensure the cost efficiency of transmission and distribution networks and incentivise 
both  system  operators  and  system  users  to  make  better  use  of  the  existing  infrastructure.  In 
addition, it introduces taxation measures, to ensure, among other goals that electricity is taxed 
less  than  natural  gas.  The  proposal  also  clarifies  the  role  of  national  regulatory  authorities 
when it comes to ensuring efficient, transparent and non-discriminatory access to transmission 
and distribution networks7, including in situations of grid congestion which may require  the 
application of measures ensuring maturity and  progress of grid connection requests, as well 
as setting out prioritisation conditions. 

Network charges 

The common electricity market is one of the cornerstones for competitiveness and prosperity 
in  our  Union.  The  Union  is  dedicated  to  pursuing  decarbonisation  while  increasing  energy 
affordability and security. This  is  pivotal  for the competitiveness  of European industries, as 
outlined  in  the  Clean  Industrial  Deal8,  which  also  addresses  the  need  to  support  strategic 
autonomy, secure vital supply chains and maintain economic prosperity. However, in recent 
years,  and  over  two  crises,  the  Union  has  been  facing  rising  energy  costs,  which  puts  our 
competitiveness at risk.  

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COM/2025/79. 
C/2026/126. 
COM/2025/1005. 
COM/2026/115. 
COM/2026/501.  
COM/2026/370. 
Article 3 point (q) of Regulation (EU) 2019/943. 
COM/2025/85. 

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The European electricity network is the most interconnected in the world and a fundamental 
pillar  of  the  European  electricity  market.  Rising  electricity  demand,  the  increasing 
electrification  of  end  uses,  the  decentralisation  of  electricity  production  and  the  accelerated 
deployment of renewables will require significant investment in modernising and expanding 
the  electricity  network,  and  the  optimisation  of  the  way  electricity  grids  are  designed  and 
operated.  At  times  where  a  lot  of  electricity  is  generated  by  renewables,  low  or  negative 
electricity prices – which have become more regular over recent years9 – reflect the need for 
the system to be more flexible. This is crucial to exploit the potential of renewables sources 
and avoid cost-inefficient curtailment, while incentivising consumption at times and locations 
in  which  the  cheapest  energy  sources  are  available  and  the  costs  for  the  operation  of  the 
system are minimised.  

The  electricity  system’s  costs  are  covered  by  network  charges.  They  finance  the  physical 
upgrade  of  grids,  the  maintenance  and  the  operation  of  the  system.  This  is  essential  for  the 
deployment of renewables, electrification and new industrial and business demand. Network 
charges  have,  in  recent  years,  represented,  on  average,  between  24  and  29%10  of  the 
electricity  bill  for  households  (with  the  other  main  factors  being  the  price  of  the  energy 
commodity, taxes and levies and carbon costs). While the energy component of the electricity 
price  is  expected  to  decrease,  grid  costs  are  expected  to  become  an  even  larger  item  on 
electricity  bills.  The  European  Union  Agency  for  the  Cooperation  of  Energy  Regulators 
(ACER)  estimates  that  to  build  a  decarbonised  EU  energy  system,  investments  of  an 
unprecedented  level  will  be  needed  in  the  electricity  transmission  and  distribution  grids11. 
This  would  double  and  even  triple  the  annual  investment  rates  of  the  past  decades.  Rising 
system costs may lead to a significant increase in total grid costs over time of up to by 60% by 
2050 compared to 2022.   

Making  the  best  use  of  the  existing  grid  infrastructure,  and  a  smart  and  efficient  design  of 
network  charges,  will  be  instrumental  in  increasing  the  infrastructure’s  efficiency  and 
optimising  overall  system  costs.  In  particular,  network  charges  that  incentivise  system 
efficiencies can reduce overall system operating costs and the network charges component of 
the  energy  bill,  for  example  by  decreasing  re-dispatching  needs  and  costs,  or  by  lowering 
peak demand and thereby grid investment needs12.  

Therefore,  it  is  important  to  ensure  that  network  charges  incentivise  system  operators  to 
operate  the  grid  efficiently,  to  use  flexibility  and  to  develop  smart  electricity  grids  and  use 
non-wire solutions like grid-enhancing technologies, while maintaining the incentive to invest 
in the grid and ensuring a level playing field. Grid users should be incentivised to behave in a 
system-friendly  way,  adjusting  their  energy  use  or  shifting  it  towards  times  and  places  in 

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ACER (2026) Key developments in EU electricity and gas markets 
https://www.acer.europa.eu/monitoring/electricity-gas-key-developments-2026.  
ACER (2024) Retail market Monitoring report: 
https://www.acer.europa.eu/sites/default/files/documents/Publications/ACER-
CEER_2024_MMR_Retail.pdf. 
ACER Report ‘Electricity infrastructure development to support a competitive and sustainable energy 
system’, ACER_2024_Monitoring_Electricity_Infrastructure.pdf. According to the report, “annual grid 
investment  in  Europe  is  estimated  to  double  until  2050,  reaching  up  to  EUR  100  billion,  with  lower 
estimates at EUR 75 billion.” 
In Slovenia, a tariff reform from 2024 led to a decrease of more than 2.4% in peak load. A study from 
Agora  Energiewende  focusing  on Germany  showed  that dynamic  tariffs  could  significantly  increase 
consumers flexibility, with a potential to shift 10% of the total annual electricity consumption in 2035. 
A report commissioned by SmartEN showed that well-designed tariffs can decrease the peak load above 
20% with high levels of EV adoption.  

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which the cheapest energy sources are available and when it is the most cost efficient for the 
overall  system.  To  achieve  this,  the  Affordable  Energy  Action  Plan  has  suggested  putting 
forward a legislative proposal on network charge design. For this reason, the President of the 
Commission  announced  on  16  March  2026  that  the  Commission  will  prepare  a  legislative 
proposal to improve the productivity of grid infrastructure.  

This proposal addresses concerns about rising energy costs, since they are driven not only by 
high and volatile prices but also by rising system costs. It does so by improving the design of 
network  charges  to  ensure  cost  efficiency  of  transmission  and  distribution  networks  and  by 
ensuring that the necessary incentives are provided to both system operators and system users 
to lower system costs, including through better use of the existing infrastructure.  

The  proposal  is  putting  forward  stronger  incentives  for  system  operators  to  increase  cost-
effectiveness as well as to enable timely grid access, provide incentives for grid users to adapt 
their  consumption  behaviour,  encourage  enhanced  transparency  and  oblige  regulatory 
authorities to set performance indicators to increase efficient grid use and system efficiency. 
All these measures should help ensure that network charges reflect the true costs imposed on 
the system and further support efficient grid use. 

The  proposal  allows  for  special  cost-reflective  network  charge  regimes  to  apply  to  specific 
categories  of  system  users  based  on  their  consumption  pattern,  such  as  energy-intensive 
industries, and data centres. It combines this option with safeguards to avoid adverse effects 
on affordability for households and SMEs. 

To  make  these  changes  operational,  the  proposal  needs  to  be  combined  with  tertiary 
legislation on a common structure and harmonised methodology on network charges, similar 
to existing legislation in the gas sector.  

Smart meters and smart electricity grids 

To  improve  grid  infrastructure  efficiency,  the  electricity  system  must  be  equipped  with  the 
technical  and  digital  capabilities  to  monitor  the grid  status  and  optimise grid  usage  close  to 
real-time,  and  to  incentivise  or  steer  grid  users  to  optimise  their  grid  use,  especially  when 
coupled  with  PV  installation  and  home  batteries  and/or  dynamic  tariffs.  This  may  further 
reduce  system  costs  notably  by  reducing  peak  demands.  These  capabilities  enable  system 
operators  to  respond  faster  and  more  efficiently,  making  better  use  of  the  existing 
infrastructure,  and  allow  system  users  to  react  to  price  signals.  To  achieve  this,  a  broader 
enabling  framework  is  required  combining  smart  metering  systems,  smart  and  digitalised 
grids and more effective re-use of electricity grid data. Without such enabling conditions, the 
scope for consumers, aggregators, suppliers and system operators to respond to price signals, 
including  from  smart  network  charges  to  provide  flexibility  and  optimise  system  operation 
remains structurally limited. 

For  this  reason,  the  proposal  on  network  charges  is  accompanied  by  limited  but  targeted 
measures  on  smart  meters  and  smart  electricity  grids.  It  introduces  a  minimum  Union-wide 
deployment  obligation  for  smart  metering  systems  to  ensure  that,  in  each  Member  State,  at 
least  50 %  of  final  customers  will  be  equipped  with  smart  meters  by  2030.  This  proportion 
should be progressively  increased to  at least  75 % of  final  customers by 2033 to strengthen 
the technical basis for active consumer participation and more granular system visibility. For 
Member  States  with  deployment  levels  below  30 %  at  the  date  of  entry  into  force  of  this 
Regulation,  a  limited  extension  for  the  deadline  of  the  50 %  target  would  be  appropriate. 

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This  approach  reflects  the  current  state  of  play  across  the  Union,  with  overall  smart  meter 
penetration  at  around  60 %  in  202413  and  fifteen  Member  States  already  exceeding  80 % 
coverage, in line with the deployment levels set out in Annex II of Directive (EU) 2019/94414, 
demonstrating  that  higher penetration rates are  achievable, while others remain significantly 
below  this  threshold  or  have  not  yet  initiated  large-scale  deployment.  This  uneven  rollout 
undermines the effective functioning of the internal market and the development of innovative 
products and services. At the same time, the proposed deployment obligation should create a 
sufficient  uptake  across  the  Union  to  support  more  efficient  use  of  the  existing  electricity 
network  infrastructure  and  enable  consumers  to  understand  and  manage  their  energy 
consumption and costs better. In addition, the proposal clarifies that cost-benefit assessments 
under  Directive  (EU)  2019/944  will  apply  only  to  deployment  beyond  the  75 %  level, 
ensuring  a  consistent  Union-wide  approach  while  preserving  flexibility  for  further 
deployment  based  on  economic  considerations.  It  also  provides  for  the  development  of 
common  smart  electricity  grid  indicators  to  support  a  more  consistent  monitoring  of  the 
uptake  of  smart  and  innovative  grid  solutions  and  to  strengthen  the  link  between  network 
regulation,  performance  and  efficient  use  of  existing  infrastructure.  Most  importantly,  it 
establishes a targeted framework to improve the exchange and secure re-use of electricity grid 
data. It also supports the efficient, secure and flexible operation of the electricity system, and 
the  development  of  innovative  digital  and  data-driven  tools,  including  artificial  intelligence 
applications, capable of improving grid performance and optimisation. This in direct response 
to  the  President’s  call  for  grid  operators  to  improve  the  productivity  of  the  existing 
infrastructure by making full use of innovative technologies.15  

Taken  together,  these  measures  are  intended  to  ensure  that  the  incentives  created  through 
smart  network  charges  can  be  translated  into  concrete  operational  efficiencies  and  lower 
overall system costs. 

Taxation 

The  electrification  of  the  European  economy  is  a  strategic  imperative  for  the  Union’s 
competitiveness,  energy  security,  and  decarbonisation  objectives.  Achieving  a  more 
electrified  and  climate-neutral  energy  system  requires  substantial  investments  in  electricity 
grids  and  infrastructure.  Network  charges  and  energy  taxation  together  constitute  the  main 
regulatory  cost  drivers  embedded  in  electricity  bills  and,  as  such,  are  inextricably  linked 
levers  in  incentivising  electrification.  Addressing  network  charges  in  isolation,  without 
simultaneously aligning the principles of taxation of electricity with EU electrification, would 
undermine the coherence and effectiveness  of Union  energy policy. Only by acting on both 
elements in a coordinated manner can this proposal structurally reduce the cost of electricity 
for consumers and meaningfully advance the Union’s electrification goals. 

In line with the objectives of the Affordable Energy Action Plan and AccelerateEU, reforming 
network  charges  should  be  accompanied  by  targeted  measures  on  the  taxation  of  electricity 
and, more specifically, the incentives for electrification embedded therein, or risk falling short 
of  achieving  the  objective  of  durably  reducing  the  cost  drivers  of  electricity  bills.  Such  an 

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ACER/CEER Energy Retail Market Monitoring Report (November 2025); Country Fiches (July 2025). 
Directive  (EU)  2019/944  of  the  European  Parliament  and of  the  Council  of 5  June 2019  on  common 
rules for the internal market for electricity and amending Directive 2012/27/EU (OJ L 158, 14.6.2019, 
p. 125, ELI: http://data.europa.eu/eli/dir/2019/944/oj). 
Letter  of  President  Von  Der  Leyen  ahead  of  European  Council  dated  16  March  2026  ‘While  grid 
charges  are  essential  (..)  Grid  operators  too  can  do  more  to  improve  the  productivity  of  grid 
infrastructure, making full use of innovative technologies’. 

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approach  would  therefore  have  a  significant  adverse  impact  on  affordability  for  Union 
consumers and on the competitiveness of the Union economy. 

To that end this proposal also aligns the principles on taxation of electricity with EU energy, 
environment and climate policies thus contributing to the EU efforts to reduce emissions. To 
increase  the  electrification  of  the  European  energy  system,  as  detailed  in  AccelerateEU, 
incentives for the use of natural gas over electricity in Member State taxation systems should 
be reversed. 

In  addition  to  this  broader  measure,  this  proposal  includes  a  tailored  and  more  targeted 
possibility  to  reduce  electricity  taxation  for  energy  intensive  industries,  so  that  the  taxes  on 
electricity  for  these  users  may  be  further  decreased  and  the  incentive  for  electrification 
enhanced.   

These  measures  will  ensure  that  final  energy  costs  for  consumers  are  reduced  and  that 
regulation of energy costs is better aligned with European electrification objectives.   

The  principles  on  taxation  of  energy  as  laid  out  in  this  amendment  to  Regulation  (EU) 
2019/943  (the  Electricity  Regulation)  focus  on  the  implementation  of  the  EU  provisions 
imposing a minimum rate on electricity and natural gas and regulating the possibility granted 
to  Member  States  to  apply  reduced  taxation  rates  on  electricity  used  by  energy  intensive 
industries  as  set  by  Council  Directive  2003/96/EC.  In  line  with  the  objectives  of  this 
Directive, Member States remain free to set their energy tax levels, provided they follow the 
provisions  in  the  Directive,  while  the  principles  in  the  Electricity  Regulation  will  enable 
existing differences in the electrification incentives in energy taxation frameworks of Member 
States to be reduced.  

This proposal introduces limited and targeted amendments to the Electricity Regulation which 
are strictly  necessary to  achieve the proposal’s objectives. Further possible modifications of 
that  Regulation  are  entirely  outside  of  the  scope  and  aims  of  the  present  proposal.  The 
Commission  will  constructively  engage  with  the  co-legislators,  in  order  to  ensure  that  the 
legislative  process  on  the  present  proposal  fully  preserves  its  essential  scope  and  does  not 
distort it. 

Grid connection measures in case of network congestion 

Timely electricity network access is crucial for the competitiveness and decarbonisation of the 
European  industry,  automotive  and  transport  sectors  –  for  example  recharging  pools  –  and 
digitalisation of the economy including the establishment of data centres.  It is also a crucial 
condition  for  fulfilling  the  goals  of  the  Clean  Industrial  Deal,  Accelerate  EU  and  achieving 
climate  neutrality  by  2050.  It  is  also  critical  for  fulfilling  housing  needs  and  related  basic 
societal  needs.  Delays  in  grid  connections  slow  down  the  clean  transition  and  European 
economic growth. Grid connection queues are present in at least 16 Member States based on 
the  evidence  collected  in  2025.16  This  is  why  tackling  grid  connection  queues  is  becoming 
increasingly urgent throughout the EU. 

While  the  long-term  solution  to  the  challenge  of  insufficient  network  capacity  is  the 
accelerated build out of grids in a forward-looking manner, more short-term solutions can be 

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Fraunhofer  ISI,  Fraunhofer  IEG,  Guidehouse,  REKK,  Study  on network  development planning,  tariff 
structures 
September 
2025, https://op.europa.eu/en/publication-detail/-/publication/08843617-9cf8-11f0-97c8-01aa75ed71a1. 

distribution 

connection 

electricity 

requests 

grids, 

and 

for 

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advanced  in  parallel  to  ensure  timely  grid  connection  of  clean  energy  generation  and 
electrified  loads.  Building  on  existing  legal  framework,  the  Commission  put  forward  a 
Guidance  on  efficient  and  timely  grid  connections17  (“Guidance”)  as  part  of  the  European 
Grids  package.  The  Guidance  provided  concrete  recommendations  for  coordinated  network 
planning involving society and industry, more efficient utilisation of existing grids, including 
through design of network tariffs, connection charges or flexibility, and finally, transparency 
of  grid  hosting  capacity  and  connection  procedures.  Concerning  the  grid  connection 
procedures,  the  Guidance  stresses  the  need  to  move  away  from  first-come  first-served 
allocation  of  network  capacity  towards  a  system  considering  maturity  and  progress  of  grid 
connection  requests,  as  well  as  their  impacts  on  congestion,  or  environmental,  social  or 
economic considerations. 

This  legal  proposal  implements the provisions of the Guidance  related to efficient  and non-
discriminatory grid connection procedures in case of congestion in the EU legal framework, 
further  specifying  the  existing  rules  under  the  Article  6  of  the  Directive  (EU)  2019/944  by 
making explicit mention of the option to prioritise sectors or network users within a sector or 
the  option  to  consider  impacts  on  network  congestion,  economic,  social  or  environmental 
considerations  as  long  as  these  are  based  on  transparent  and  non-discriminatory  criteria. 
Existing  legislation  also  does  not  explicitly  cover  maturity  and  progress  criteria  to  tackle 
speculative  or  immature  connection  requests.  Clarification  is  necessary  to  enable  full 
implementation  of  the  Guidance  provisions  as  well  as  to  clarify  the    role  of  regulatory 
authorities in setting the network access conditions, in line with existing provisions of Articles 
6  and  59  of  the  Directive  (EU)  2019/944.  At  the  same  time,  the  proposal  leaves  space  to 
consider national conditions by leaving full discretion over selection of respective measures to 
the national regulatory authority. They must however ensure that  other measures addressing 
grid congestion, implementing the existing EU legal framework, like cross-sectorial network 
planning involving stakeholders, flexible connection agreement or use of non-wire and digital 
solutions to ensure network efficiency, are in place. 

• 

Consistency  with  existing  policy provisions  in  the  policy  area  and  other  Union 
policies 

This proposed initiative aligns with the objectives of increasing electrification while ensuring 
affordability  as  laid  down  in  AccelerateEU  and  the  Clean  Industrial  Deal.  Hence,  this 
proposal  also  aligns  with  the  objective  of  the  Electrification  Action  Plan18  which  is  the 
acceleration of electrification in the energy sector to ensure cost-efficient and secure energy 
transition  and  decreasing  import  dependency.  The  electrification  action  plan  includes 
horizontal  actions  to  achieve  indicative  electrification  objectives  as  well  as  sector-specific 
actions targeting transport, buildings and industry. Efficient network  charges as well as grid 
use and development is critical for the success of the Action Plan. 

The proposal’s objectives to reduce costs for consumers, improve the competitiveness of EU 
industry, and boost renewables and low-carbon investment are consistent with the framework 
of the European Green Deal and the Clean Industrial Deal, and in line with current initiatives. 
The proposal responds to the issues that were identified in the Commission’s Action Plan for 
Affordable  Energy  in  February  2025,  i.e.,  that  high  energy  costs  put  the  competitiveness  of 
European companies at risk and represent a significant burden for consumers. 

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Commission Notice, ‘Guidance on efficient and timely grid connections’ (C/2025/6703). 
COM(2026)595 Communication from the Commission to the European Parliament, the Council, the 
European Economic and Social Committee and the Committee of the Regions - Electrification Action 
Plan.  

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It is therefore imperative to ensure that an efficient use of the energy system, supported by an 
appropriate tax structure, plays an important role in enabling electricity users to benefit from 
more predictable and lower energy costs.  

The proposed initiative is strongly linked to and works well with the legislative proposals put 
forward  in  the  European  Grids  Package.  It  aims  to  make  the  best  use  of  existing  grid 
infrastructure to  reduce the cost  of grid to  what  is  necessary. Therefore, it complements  the 
European  Grids  Package,  which  aims  to  make  the  planning  of  new  grid  infrastructure  more 
efficient  and  cost-effective.  This  includes  giving  priority  consideration  to  alternatives  to 
network development like non-wire, smart and digital solutions or non-fossil flexibility such 
as demand response and storage in  the network  planning both  at national  and  Union levels.  
The proposal strengthens the regulatory framework for the deployment of non-wire, smart and 
digital  solutions  and  their  use  in  system  operation  on  a  national  level,  while  the  European 
Grids  Package  focuses  more  prominently  on  cross-border  infrastructure.  It  does  so  by 
ensuring  that  such  solutions  are  promoted  whenever  they  can  improve  the  usable  capacity, 
flexibility  and  reliability  of  electricity  networks  in  a  cost-efficient  manner.  It  reinforces  the 
policy direction already taken under the European Grids Package to give priority in network 
planning  to  non-wire  solutions  alongside  non-fossil  flexibility.  On  grid  access,  the  legal 
proposal  is  fully  consistent  with  the  goals  of  the  European  Grids  Package  by  implementing 
the provisions of the Guidance on efficient and timely grid connections related to efficient and 
non-discriminatory grid connection procedures in case of congestion management in the EU 
legal framework, hence reinforcing ongoing work on Guidance implementation. 

In  line  with  the  objectives  of  the  Citizens  Energy  Package19  to  empower  consumers  and 
strengthen  their  participation  in  the  energy  market,  the  proposal  also  seeks  to  reduce  final 
energy  costs  for  consumers  by  providing  the  right  incentives  to  use  European  grids  in  an 
optimal way. This is consistent with findings of the report on market-based electricity supply 
prices  and  promoting  remuneration  of  flexibility  in  retail  contracts20  under  the  Citizens 
Energy Package implementation set, which highlights the importance of smart meter rollout. 
The proposal delivers on this by increasing observability of the grid via smart meters, thereby 
enabling  more  active  consumer  participation  and  facilitating  demand-side  flexibility,  while 
helping to protect consumers against rising energy costs and to safeguard the competitiveness 
of  European  industries.  To  this  end,  it  introduces  a  Union-wide  baseline  for  smart  meter 
deployment,  aimed  at  achieving  sufficient  uptake  to  support  more  responsive  system 
operation and improved use of network capacity. In parallel, it clarifies that the role of cost-
benefit  assessments  is  limited  to  deployment  beyond  that  baseline,  ensuring  a  consistent 
approach across the Union while maintaining flexibility for Member States. 

It is also consistent with the Union’s broader digital and energy policy framework, including 
the  Regulation  on  harmonised  rules  on  fair  access  to  and  use  of  data  (the  Data  Act)21,  the 
Regulation on harmonised rules on fair access to and use of data (the AI Act)22 and existing 
electricity  market  legislation23  on  data  management  and  interoperability.  The  proposal 
complements those instruments by addressing sector-specific needs linked to electricity grid 
data exchange and the development of innovative digital and AI-based solutions for electricity 
grid  system  operation  and  optimisation.  At  the  same  time,  it  ensures  alignment  with  Union 
rules  on  data  protection,  cybersecurity,  transparency  and  lawful  data  use  and  supports  the 

19 
20 
21 
22 
23 

COM(2026)115 final. 
COM(2026)850 final. 
Regulation (EU) 2023/2854. 
Regulation (EU) 2024/1689.   
Directive (EU) 2019/944, Regulation (EU) 2019/943. 

EN 

7 

  EN 

 
development  of  European  digital  and  AI-based  solutions  for  critical  energy  infrastructure, 
thereby contributing to the Union’s strategic autonomy. It also contributes to the objectives of 
the  Cloud  and  AI  Development  Act  (CADA),  notably  by  improving  the  use  of  existing 
infrastructure, hence enabling more timely grid connections and thereby timely deployment of 
cloud and AI infrastructure, including data centres.  

Furthermore,  the  proposal  is  also  consistent  with  the  European  Climate  Law,  as  it  supports 
emissions  reductions  through  improved  energy  efficiency,  demand-side  flexibility  and  the 
integration  of  renewable  energy  sources,  contributing  to  a  more  decarbonised  and  resilient 
energy system. 

This  proposal  also  delivers  on  the  political  commitment  made  by  President  von  der  Leyen, 
who announced in her letter to the Heads of State and Government ahead of the March 2026 
EU  Council,  dated  16  March  2026,  that  there  is  clear  scope  to  reduce  electricity  taxation, 
including  through  legislation.  This  can  be  done  by  ensuring  that  electricity  is  taxed  more 
favourably  than  gas  and  by  facilitating  reductions  on  the  taxation  of  electricity  used  by 
energy-intensive businesses. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposal  is  based  on  Article  194(2)  of  the  Treaty  on  the  Functioning  of  the  European 
Union  (TFEU),  which  provides  the  legal  basis  for  proposing  measures  aiming  inter  alia  to 
ensure the functioning of the energy market, promote energy efficiency and energy saving and 
the development of new and renewable forms of energy24. In the field of energy, the  Union 
has a shared competence pursuant to Article 4(2)(i) TFEU. 

The proposal also includes targeted taxation measures, which are purely ancillary to the main 
energy  system  objective  ensuring  the  functioning  of  the  energy  market  as  listed  in  Article 
194(2) TFEU. Specifically, the taxation measures are designed to support the achievement of 
this  objective  by  complementing  and  reinforcing  the  objective  of  increasing  the  cost-
effectiveness of network charges with targeted measures aiming at lowering electricity costs 
for  consumers,  thereby  increasing  its  affordability,  ensure  a  level  playing  field  between 
energy  consumers  across  the  EU  and  support  the  EU’s  electrification  objectives.  These 
measures  consist  of  general  principles  and  clarifications  and  complement  the  existing  EU 
harmonised framework as set out in Council Directive 2003/96/EU.  

• 

Subsidiarity (for non-exclusive competence)  

The need for EU action 

The growing share of low-cost, variable and decentralised electricity from renewables across 
the Union combined with the goal of increased electrification to secure energy autonomy, puts 
more stress on European grids. This requires significant grid investments, which translate into 
higher grid costs, at least in a short-term horizon until the demand fully materializes and the 
costs  are  spread  across  wider  consumer  base.  Households  and  businesses  across  the  Union 
have been exposed to these higher costs, affecting affordability and competitiveness. 

This  is  an issue of  Union-wide relevance, requiring a consistent  legal  framework within the 
Union,  which  can  only  be  addressed  with  action  at  Union  level.  Uncoordinated  national 

24 

Article 194(1) TFEU. 

EN 

8 

  EN 

 
policies  on  the  principles  for  transmission  and  distribution  tariffs  may  distort  the  internal 
market to the extent that generation, energy storage services or consumers will be under very 
different incentives to participate in the market. The incentives for the use of electricity over 
natural  gas  in  national  taxation  systems  should  be  streamlined  at  Union  level  to  ensure 
consistent  price  signals  across  the  EU  energy  market,  supporting  a  unified  approach  to 
electrification and by extension energy security. 

The  current  rules  leave  national  regulatory  authorities  (NRAs)  a  significant  margin  for 
implementation.  This  has  created  strongly  diverging  network  charge  regimes  between 
different  Member  States.  However,  the  increased  integration  of  EU  electricity  markets 
requires  closer  coordination  between  national  actors.  National  policy  interventions  in  the 
electricity  sector  have  a  direct  impact  on  neighbouring  Member  States  due  to  grid 
interconnections. A common approach is needed for a functioning electricity system, efficient 
cross-border trade and investment and a faster, better coordinated energy transition towards a 
more integrated and energy-efficient energy system based on renewable generation. 

In addition, making network charges more system-friendly should be supported by common 
enabling  conditions  across  the  Union.  Smart  meters,  smart  electricity  grids  and  effective 
electricity  grid  data  exchanges  make  it  easier  for  both  system  operators  and  grid  users  to 
respond to price signals and use the existing infrastructure more efficiently. A minimum level 
of smart meter deployment across the Union supports these conditions by ensuring sufficient 
uptake  for  interoperable  solutions,  while  leaving  further  deployment  subject  to  cost-benefit 
assessments  at  national  level.  Without  a  more  coordinated  Union  framework  in  these  areas, 
national approaches would remain fragmented, slowing down the development of innovative 
and  data-driven  solutions  at  Union  level.  A  pan-EU  system  of  electricity  grid  data  reuse  is 
needed to enable the development, testing and scaling of innovative digital solutions for  EU 
grid  operation  and  management.  These  solutions  depend  on  access  to  sufficiently  diverse, 
high-quality and interoperable grid data across systems and Member States.  

Concerning grid connection measures in case of network congestion, the proposal clarifies the 
scope of application of existing rules under Article 6 of Directive (EU) 2019/944 in situations 
of  grid  congestion,  by  enabling  regulatory  authorities  to  adapt  national  conditions  and 
measures as they see fit to reflect the specific situation in a given Member States or grid area. 
The  proposal  does  not  lead  to  impacts  from  subsidiarity  angle  as  it  fully  maintains  the 
responsibility of national regulatory authorities. 

The amendments proposed strike a balance between the obligations and flexibility left to the 
Member States on how to achieve cost-efficient grid charges, efficient and timely grid access, 
roll out smart meters, establish smart electricity grids and facilitate data exchanges and reuse 
of data for innovation purposes.  

Additionally,  the  proposals  in  this  Regulation  align  with  the  objectives  set  out  in  Council 
Directive (EU) 2003/96, including the proper functioning of the internal market. 

• 

EU added value 

Ensuring  an  appropriate  and  comprehensive  framework  for  energy  costs  covering  network 
charges and taxes at Union level is more efficient than individual Member States taking action 
unilaterally,  as  it  avoids  a  fragmented  approach  that  might  lead  to  unduly  high  network 
charges  or  distortive  differences  in  tax  structures.  The  measures  proposed  to  address  the 
shortcomings identified will be more far reaching and cost-effective, if driven by a common 
legal and policy framework. In addition, actions at Member State level would only be possible 

EN 

9 

  EN 

within the constraints of the existing Union-wide framework for network charges as set out in 
the  Electricity  Regulation  and  would  not  be  able  to  achieve  the  necessary  changes  to  that 
framework.  

At the same time, the proposal puts forward a coherent framework to promote non-wire, smart 
and  digital  solutions  across  all  electricity  system  levels.  This  requires  a  minimum  level  of 
smart meter deployment to support active consumer participation and more efficient network 
use,  a  structured  Union  process  through  ACER  recommendations  and  progress  reporting  to 
anchor  smart  electricity  grid  indicators  in  regulatory  practice,  and  a  coordinated  and 
interoperable approach to electricity grid data exchange and reuse for innovation purposes.  

The  proposed  provisions  on  grid  connection  measures  in  case  of  network  congestion  are 
necessary to provide clarity on the application of Article 6 of Directive (EU) 2019/944 in case 
of  grid  congestion,  by  providing  a  right  to  regulatory  authorities  to  establish  measures  and 
conditions for priority consideration of economic, social, environmental and network impacts, 
maturity  and  progress  of  grid  access  applicants,  and  to  differentiate  between  sectors  and 
within  sectors  or  groups  of  network  users,  as  necessary,  and  based  on  transparent  and  non-
discriminatory criteria.  

Likewise,  supporting  these  changes  by  simultaneously  addressing  energy  taxation  system 
inconsistencies at Union level would ensure their effectiveness across all Member States.  

Consequently, the objectives of this initiative cannot be achieved by Member States on their 
own. This is where action at Union level provides added value. 

• 

Proportionality 

The proposed amendments to the Electricity Regulation are considered proportionate. 

To provide stronger incentives for the efficient use of European grids, the proposed measures 
introduce,  among  other  things,  enhanced  transparency  rules  and  the  use  of  performance 
indicators  by  national  regulatory  authorities.  The  newly  introduced  transparency  rules  may 
lead  to  an  increased  administrative  burden  and  higher  costs,  in  particular  as  regards  the 
additional  elements  that  national  administrations  will  need  to  make  publicly  available. 
However,  the  impact  of  this  will  be  limited  because  the  additional  elements  requiring 
transparency  are  kept  to  a  minimum  and  are  in  line  with  those  elements  that  have  been 
flagged by ACER in its latest best practices report, published on 26 March 2025.25 Moreover, 
their  impact  is  necessary  and  proportionate  for  achieving  the  objectives  of  increasing 
comparability  of  tariff-setting,  enhancing  the  understanding  of  system  users  as  regards  the 
tariffs payable by them, enabling them to adjust their behaviour to a system-friendly one, and 
ultimately reducing system costs. 

The  proposed  measures  on  non-wire,  smart  and  digital  solutions  are  proportionate  because 
they  do  not  impose  a  uniform  technological  model  or  a  centralised  EU  system  for  smart 
electricity grids and data exchange. They are limited to what is necessary to steer more cost-
effective grid operation:  

• 

firstly,  by  requiring  regulatory  authorities  to  promote  non-wire,  smart  and  digital 
solutions where these demonstrably improve grid capacity, flexibility or reliability; 

25 

EN 

ACER 
tariff 
The report is available here: 2025-ACER-Electricity-Network-Tariff-Practices.pdf.  

26  March 

practices 

network 

report 

on 

of 

2025, 

10 

page 

75. 

  EN 

 
• 

• 

secondly,  by  introducing  a  common  framework  for  a  limited  number  of  smart 
electricity  grid  indicators  to  support  more  consistent  monitoring  and  regulatory 
incentives; 

thirdly,  by  establishing  targeted  obligations  on  grid  data  exchange,  combined  with  a 
voluntary Union-level framework for the development of innovative digital tools. 

This  complemented  by  a  baseline  level  of  smart  meter  rollout,  while  leaving  deployment 
beyond that level to Member States on the basis of cost-benefit assessments.  

The proposal therefore combines only those common Union rules that are necessary to reduce 
fragmentation and support the internal market by giving Member States, regulatory authorities 
and system operators great flexibility with its implementation. It limits further harmonisation 
to  implementing  acts  and  only  where  uniform  technical  and  governance  requirements  are 
needed. 

The taxation principles do not exceed what is necessary to  achieve the objective of aligning 
energy taxation systems with the amendments to network charges, and to provide flexibility to 
promote the electrification of energy intensive businesses. 

Concerning  the  provisions  of  the  proposal  on  grid  connection  measures  in  case  of  network 
congestion,  these  leave  full  discretion  to  national  regulatory  authorities  in  line  with  their 
exclusive competence to fix or approve   conditions for access to the grid, hence being fully 
proportionate and aligned with the  objective of enabling efficient grid access. 

Finally,  the  overall  package  of  measures  proposed  is  considered  appropriate  given  the 
overarching  imperative  of  ensuring  affordable  electricity  prices  and  competitiveness  of 
European companies.  

• 

Choice of the instrument 

The  proposal  will  amend  the  Electricity  Regulation.  Given  that  the  proposal  aims  to  add  a 
limited set of new provisions and amend a limited set of existing provisions in this instrument, 
the recourse to an amending act is adequate. On 2 July 2025, the Commission issued a draft 
notice  with  guidelines  on  future  proof  network  charges  for  reduced  system  costs26.  In  that 
notice  the  Commission  proposes  a  design  of  tariff  methodologies  for  network  charges  to 
incentivise the use of flexibility and investments to optimise the use of existing grid, deliver 
grid  expansion  at  least  cost  and  ensure  a  fair  and  cost-reflective  allocation  of  grid  charges 
while  encouraging  European  competitiveness,  deeper  electrification  and  decarbonisation. 
However,  to  achieve  these  objectives,  it  is  of  utmost  importance  that  the  relevant  design 
principles are implemented in all Member States. This can only be achieved through legally 
binding instruments, such as the measures of this proposal.  

The  principles  on  taxation  of  energy  as  laid  out  in  this  amendment  of  the  Electricity 
Regulation  focus  on  the  application  of  the  EU  provisions  imposing  a  minimum  rate  on 
electricity  and  natural  gas  and  providing  practical  guidance  on  the  making  use  of  the 
possibility for Member States to apply reduced taxation rates to electricity used by intensive 
industries  as  set  by  Council  Directive  2003/96/EC.  In  line  with  the  objectives  of  this 
Directive, Member States remain free to set their energy tax levels, provided they follow the 
provisions  in  the  Directive,  while  the  principles  in  this  Regulation  will  enable  existing 

26 

C(2025) 4010.  

EN 

11 

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differences in the electrification incentives in energy taxation frameworks of Member States 
to be reduced.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations and impact assessment 

This  proposal  is  part  of  the  Commission’s  response  to  the  energy  crisis  triggered  by  the 
conflict in the Middle East and the closure of the Strait of Hormuz. Although in recent years, 
the  Union  greatly  accelerated  the  energy  transition  towards  an  efficient,  flexible  and 
interconnected  system  that  is  based  on  homegrown  and  clean  energy  sources,  it  remains 
dependent on fossil fuel imports. Over half (57%) of the energy consumed in Europe is from 
imported fossil fuels. 

Rising  prices  have  been  the  immediate  consequence  of  the  conflict  and  this  has  driven  up 
fossil fuel costs for the Union by 500 million EUR/day. There is no immediate threat to the 
security  of  supply,  although  stocks  of  some  fuels  are  tight.  The  Union  is  in  the  process  of 
reducing  the  share  of  fossil  fuels  in  its  electricity  production,  but  gas  and  oil  continue  to 
dominate in heating, industry and transport and are a key input to industrial value chains (e.g. 
chemicals, plastics and fertilisers). This leaves European households and businesses, notably 
SMEs  and  energy-intensive  industries,  and  their  employees,  exposed  to  global  price  spikes. 
Moreover, the possible effects of the crisis on GDP growth and inflation are significant and its 
impact is likely to  be felt for at  least  several  months and go well beyond the energy sector, 
with economic, employment and social ramifications.  

In  this  context,  swift  Union  action  is  needed  to  avoid  significant  harm  to  EU  electricity 
consumers, in particular to decrease electricity bills and the EU dependence on fossil fuels. In 
March  2026  the  European  Council  called  on  the  Commission  ‘to  urgently  present  targeted 
measures  –  across  all  components  of  electricity  prices  –  for  concrete  actions  to  lower 
electricity  prices  and  to  address  excessive  volatility  in  the  short  term,  including  for  energy-
intensive  sectors,  taking  into  account  the  different  situations  across  Member  States’27.  The 
Commission  responded  with  the  AccelerateEU  Communication28,  which  announced  the 
adoption  of  a  legislative  proposal  on  two  significant  components  of  the  electricity  bill,  i.e. 
network charges and taxation, in May 2026. 

Therefore, due to the need for urgent action and adoption of this proposal within an extremely 
compressed  timeframe,  the  Commissioner  responsible  for  better  regulation  has  granted  a 
specific  derogation  from  carrying  out  an  impact  assessment  and  dedicated  stakeholder 
consultations  prior  to  the  adoption  of  this  proposal.  In  line  with  the  principles  of  better 
regulation  as set  out  in the Communication29 on  ‘A simpler, clearer and better enforced EU 
rulebook’, a staff working document has been prepared to accompany the proposal.  The staff 
working document sets  out the explanation and rationale  behind the Commission’s proposal 
as well as the way in which the measures presented therein will increase the cost-effectiveness 
of the grid operation and foster electrification, ultimately reducing system costs. In addition, 
the  staff  working  document  presents  the  available  evidence  of  relevance  for  the  proposed 
measures. 

27 
28 
29 

en-20260319-european-council-conclusions.pdf. 
7fac9eea-5717-4182-a368-bd68c427ff4c_en. 
https://ec.europa.eu/commission/presscorner/detail/en/qanda_26_902. 

EN 

12 

  EN 

 
However,  this  initiative  drew  upon  the  conclusions  of  recent  public  consultations  on  the 
European  Grids  Package  as  well  as  the  Strategic  Roadmap  for  Digitalisation  and  AI  in  the 
energy  sector.  Under  the  European  Grids  Package  consultation,  76%  of  respondents  agreed 
that further measures are needed to increase the efficiency of the existing grid, with 62% of 
respondents  also  agreeing  that  enhancing  the  visibility  and  quantified  benefits  of  digital, 
innovative, and grid-enhancing technologies is also needed. 

According to the study mandated by the European Commission,30 at least 16 Member States 
face grid connection queues as of mid-2025. Some countries are rarely affected due to slower 
electrification  or  uptake  of  renewable  energy  sources,  while  others  are  experiencing  severe 
grid  congestion.  Other  analysis31  noted  some  queues  were  30  times  the  amount  of  the  peak 
load in 2024, pointing to the presence of speculative and immature requests in the queue. The 
existence  of  speculative  and  immature  requests  hindering  timely  grid  access  was  also 
confirmed  under  a  targeted  stakeholder  consultation  under  the  European  Grids  package, 
running between 25 June and 25 July 2025. Among the respondents which represented system 
operators,  regulatory  authorities,  Member  States,  energy  market  stakeholders  as  well  as 
representatives  of  civil  society,  66  %  agreed  that  there  is  a  problem  with  speculative  and 
immature  requests  in  their  geography  and  in  the  EU,  and  56  %  agreed  that  grid  capacity  is 
locked due to non-maturing requests. Moreover, 82 % of respondents agreed or partly agreed 
that  measures  contributing  to  relieving  congestion  in  the  grid  as  part  of  the  grid  connection 
procedures  could  be  helpful.  Slightly  lower  number  of  respondents  (71  %)  agreed  or  partly 
agreed with added value of measures considering contribution of connection requests to clean 
transition, services of general interest or based on other criteria. 

Under the Open Public Consultation from the Strategic Roadmap for digitalisation and AI in 
the energy sector, most participants agree or strongly agree that a Union-wide initiative for the 
development  of  AI  foundation  models  would  accelerate  the  deployment  of  digital  and  AI 
solutions  in  the  energy  system.  According  to  this  group  of  surveyed  participants,  there  is 
strong confidence in fostering collaboration to accelerate the adoption of digital tools and AI 
solutions  in  the  energy  sector.  About  60%  of  participants  agreed  with  deploying  AI 
foundation models, but most of these (45%) included a caveat: caution should be exercised. 
AI foundation models should  be explored in  specific use cases  – such as  grids  -, with  clear 
safeguards  and  governance  in  place.  Building  partnerships,  in  particular  collaboration 
between grid operators,  academia, and research  was ranked  as main  action (next  to  funding 
and financing) that would most effectively strengthen the Union’s capacity to innovate with 
smart  energy  systems.  In  terms  of  additional  measures,  the  respondents  clearly  aligned  in 
identifying  collaborative  environments  as  key.  “Support  for  creating  ecosystems/hubs  that 
bring  together  developers  and  energy  players  to  build  AI-based  solutions,  applications, 
foundational models, etc.” received 81 mentions. Giving regulatory clarity and importance in 
upcoming  legislation  were  frequently  mentioned  among  the  most  effective  actions  for 
developing  a  coordinated  framework  to  advance  AI  and  digital  technologies  in  the  energy 
sector. 

The  Commission  plans  to  further  engage  with  stakeholders,  to  ensure  the  successful 
implementation of this Regulation.  

30 

31 

EN 

and 

connection 

Fraunhofer  ISI,  Fraunhofer  IEG,  Guidehouse,  REKK,  Study  on network  development planning,  tariff 
structures 
September 
2025, https://op.europa.eu/en/publication-detail/-/publication/08843617-9cf8-11f0-97c8-01aa75ed71a1. 
Boston  Consulting  Group  centre  for  energy  impact:  Mind  the  queue,  Connection  reform  for  the 
electricity  grid,  2025.  https://web-assets.bcg.com/f5/79/77645d12463793d174af9ae00d4a/mind-the-
queue-connection-reform-for-the-electricity-grid-r2.pdf.  

distribution 

electricity 

requests 

grids, 

for 

13 

  EN 

 
• 

Regulatory fitness and simplification 

The  proposed  amendments  to  the  Electricity  Regulation  focus  on  what  is  considered 
necessary to achieve the objective of addressing rising system costs by incentivising system 
operators  and  system  users  to  act  in  a  system-friendly  and  cost-efficient  way.  They  do  not 
constitute a full revision of this instrument. 

The  proposal  to  make  network  charges  more  cost-efficient  may  increase  administrative 
requirements  for national  administrations,  but they are  proportionate as explained above. At 
the  same  time,  the  envisaged  economic  impact  would  benefit  businesses  and  consumers  by 
contributing  to  lower  energy  bills.  The  impact  on  national  administration  is  considered 
minimal  compared  to  the  current  framework,  as  the  economic  gains  of  the  reform  would 
outweigh any short- or long-term administrative reorganisation costs. 

For  smart  electricity  grid  indicators,  the  proposal  builds  on  existing  regulatory  practice. 
National regulatory authorities are already required under Directive (EU) 2019/944 to monitor 
and  assess  smart  electricity  grid  development,  and  ACER  and  the  Council  of  European 
Energy Regulators (CEER) have already developed analytical work in this area. The proposal 
therefore does not create an entirely new reporting logic but rather structures and streamlines 
existing practice at Union level in order to support more coherent monitoring and regulatory 
follow-up. 

For  smart  metering  systems,  the  proposal  builds  on  the  existing  framework  under  Directive 
(EU)  2019/944  by  introducing  a  minimum  level  of  deployment  across  the  Union,  while 
maintaining  the  role  of  cost-benefit  assessments  for  deployment  beyond  that  level,  thereby 
clarifying and refining the current approach without introducing a new regulatory mechanism. 

For grid data exchange between system operators, the proposal builds further on existing but 
more general cooperation and data-sharing obligations in the electricity  acquis, in particular 
on  cooperation  in  network  planning  and  operation  between  transmission  system  operators 
(TSOs)  and  distribution  system  operators  (DSOs).  It  makes  those  obligations  more 
operational  and  purpose-driven  by  specifying  that  data  exchange  must  support  the 
development and effective use of smart electricity grids and innovative data-driven solutions 
for system operation, thereby reducing legal ambiguity and fragmentation rather than creating 
a new layer of obligations. 

For  the  framework  supporting  the  controlled  re-use  of  electricity  grid  data  for  research  and 
innovation,  the  proposal  builds  on  bottom-up  initiatives  already  being  developed  by  grid 
operators  and  their  representative  bodies.  It  does  not  impose  mandatory  participation  but 
provides  a  clearer  legal  and  governance  framework  around  voluntary  cooperation  that  is 
already emerging in practice to enable reaching scale, legal certainty and common safeguards 
across the Union. 

The  proposed  amendments  regarding  taxation  reduce  the  regulatory  burden  for  energy 
intensive businesses and national administrations via the removal of certain pre-conditions for 
the application of lower excise rates. Changes in taxation rates due to the amendments in this 
proposal can be implemented at national level via targeted changes to the domestic framework 
in regular (fiscal) legislative processes and do not influence the regulatory burden. 

Concerning the proposed provisions on  grid  connection measures  in  case of congestion, the 
proposal  fully  builds  on  Article  6  the  Directive  (EU)  2019/944  and  on  the  Guidance  on 
efficient  and  timely  grid  connections  and  clarifies  the  existing  responsibility  of  national 

EN 

14 

  EN 

regulatory authorities to set conditions for non-discriminatory and transparent third-party grid 
access, hence not leading to any additional administrative burden. 

• 

Fundamental rights 

No negative impact on fundamental rights has been identified. 

4. 

BUDGETARY IMPLICATIONS 

The budgetary impact associated with this proposal concerns the resources of ACER and the 
Commission  which  are  described  in  the  Legislative  Financial  Statement  accompanying  the 
proposal. Essentially, for the new tasks to be carried out by ACER, two additional full-time 
equivalents (FTEs) will be required for ACER from 2026 onwards, as well as corresponding 
financial resources. The Commission’s workload will increase by 5 FTEs.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The  Commission  will  monitor  the  compliance  of  Member  States  and  other  actors  with  the 
measures  that  should  ultimately  be  adopted  and  take  enforcement  measures  when  required. 
The Commission will also liaise with ACER and national regulatory authorities. 

Moreover,  to  facilitate  the  implementation  of  the  measures  ultimately  adopted,  the 
Commission will be available for bilateral meetings and calls with Member States for specific 
questions. 

• 

Detailed explanation of the specific provisions of the proposal 

The  amendments  to  the  existing  principles  for  transmission  and  distribution  network  tariffs 
provide  further  details  on  current  and  additional  criteria  for  ensuring  a  cost-efficient  use  of 
electricity grids. They further empower the Commission to adopt delegated acts in the form of 
guidelines  on  a  common  structure  and  harmonised  methodology  on  transmission  and 
distribution  tariffs,  including  detailed  conditions  under  which  regulatory  authorities  may 
introduce separate network charge regimes for specific categories of system users as well as 
harmonised rules on the procedural and substantive requirements for public consultations on 
relevant draft tariff methodologies. 

The  amendments  require  regulatory  authorities  to  promote  non-wire,  smart  and  digital 
solutions  to  support  a  more  cost-effective  use  of  existing  infrastructure  before  resorting  to 
conventional grid expansion.  

The  amendments  further  establish  a  structured  Union-level  framework  for  smart  electricity 
grid  indicators  to  enable  smart  electricity  grids  and  innovative  data-driven  solutions  for 
monitoring, optimisation and coordination of network operation. ACER is tasked with issuing 
a  recommendation  on  a  limited  set  of  indicators  and  with  publishing  regular  Union-level 
progress reports, while the Commission is empowered to adopt implementing acts.  

The  proposed  amendments  also  introduce  a  clearer;  more  operational  obligation  for 
transmission  and  distribution  system  operators  to  manage  and  exchange  grid  data  in  a  way 
that enables the development, deployment and effective use of smart electricity grids.  

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The  amendments  create  a  framework  for  voluntary  cooperation  between  system  operators, 
jointly facilitated by the European Network of Transmission System Operators for Electricity 
ENTSO-E  and  the  EU  DSO  Entity,  to  develop,  test,  integrate  and  deploy  innovative  digital 
tools  for  grid  operation  and  optimisation.  They  formalise  the  key  governance,  access, 
cybersecurity,  compliance  and  lifecycle-management  elements  needed  for  such  cooperation. 
They  also  allow  the  Commission  to  issue  an  opinion  on  the  proposed  arrangement  and  to 
adopt  implementing  acts  establishing  common  requirements  on  data  models,  formats, 
interfaces,  transparency  and  risk  management.  The  purpose  is  to  provide  a  sector-specific 
legal basis for the lawful, secure and controlled reuse of electricity grid data for research and 
innovation in the public interest, including advanced analytics and AI-based solutions. 

The  amendments  introduce  a  minimum  Union-wide  deployment  requirement  for  smart 
metering  systems,  requiring  Member  States  to  ensure  coverage  of  at  least  50 %  of  final 
customers by 31 December 2030 and at least 75 % by 31 December 2033, with a possibility 
for  a  limited  extension  of  the  deadline  for  reaching  the  targets  in  duly  justified  cases. 
It  clarifies  that  cost-benefit  assessments  under  Directive  (EU)  2019/944  may  continue  to 
apply but only beyond the 75 % threshold.  

The proposal concerning the excise taxation of electricity determines that the minimum level 
of  taxation  for  electricity  shall  be  lower  than  the  minimum  level  of  taxation  applicable  to 
natural gas. Additionally, the conditions to apply a reduced rate of up to zero of taxation for 
electricity  for  use  by  energy  intensive  businesses  shall  be  deemed  to  be  met,  given  the 
positive  environmental  and  climate  impact  of  the  uptake  of  electricity  and  its  role  in  the 
achievement of the EU’s Net-Zero targets. 

The  proposal  concerning  grid  connection  measures  in  case  of  network  congestion  provides 
further clarifications to the existing right and responsibility of regulatory authorities to adopt 
measures  and  set  conditions  for  non-discriminatory,  objective  and  transparent  third-party 
access  pursuant  to  Article  6  of  Directive  (EU)  2019/944.  It  does  so  by  clarifying  that 
regulatory  authorities  may  consider  the  impacts  grid  connection  requests  may  have  on 
network  congestion,  and  may  take  into  account  economic,  social  or  environmental 
considerations  as  well  as  the  maturity  of  grid  connection  requests  and  their  progress  during 
their presence in the grid connection queue. Regulatory authorities may also adopt conditions 
to  prioritise  economic  sectors  or  group  of  users,  as  well  as  set  conditions  for  treatment  of 
users within the sectors or  group of users, while  ensuring that any such conditions  are  non-
discriminatory, open and transparent. At the same time, regulatory authorities  should ensure 
that  the  applicable  measures  addressing  grid  congestion  are  duly  implemented,  notably  the 
priority consideration of non-wire, smart and digital solutions, flexible connection agreements 
the  cross-sectorial  network  planning.
in 
or  early 

involvement  of 

stakeholders 

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2026/0203 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) 2019/943, as regards future-proofing electricity bills in the 
Union, through reducing system costs and fostering electrification and digitalisation 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 194(2) thereof, 

Having regard to the proposal from the European Commission, 

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

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

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

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

High  electricity  costs  are  adversely  affecting  households  and  businesses  across  the 
Union,  thereby  undermining  the  competitiveness  of  the  internal  market  and  social 
cohesion.  While  the  cost  of  the  commodity  cost  component  in  the  electricity  bill  is 
determined  by  supply  and  demand  regulatory  cost  components  of  electricity  bills, 
namely  network  charges  and  taxation  may  be  further  aligned  with  the  Union  energy 
and  climate  objectives.  To  provide  tangible  relief  to  electricity  consumers,  it  is 
necessary to adopt a coherent set of measures targeting those components of electricity 
bills. 

The measures concerning network charges set out in this Regulation aim to optimise 
grid  costs  through  a  number  of  measures  including  increased  efficiency  of  the 
network,  improved  cost  allocation  mechanisms,  and  enhanced  demand  flexibility. 
Moreover, in order to further enhance demand flexibility, the deployment and effective 
use  of  smart  grids,  smart  metering  systems  and  interoperable  data  improve 
observability  and  controllability  of  the  electricity  system.  These  tools  enable  more 
efficient grid operation and planning, and the activation of flexibility resources at the 
lowest  cost.  By  reducing  inefficiencies  in  the  transmission  and  distribution  of 
electricity,  including  through  more  data-driven  grid  management  and  more  accurate 
price signals for flexible consumption and generation, these measures will ultimately 
lower the network charges component of electricity bills,  thereby contributing to  the 
overall objective of reducing energy costs for final consumers. 

(3) 

The provisions on taxation contained in this Regulation are ancillary to  the measures 
concerning  network  charges  and  are  necessary  to  support  the  objective  of  reducing 
electricity  bills.    Reductions  in  network  charges  may  not  fully  translate  into  lower 

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(4) 

(5) 

(6) 

(7) 

electricity  bills  for  final  consumers,  if  electricity  remains  subject  to  higher  taxation 
than  fossil  fuels.  Such  a  discrepancy  risks  offsetting  the  benefits  of  lower  network 
charges  and  undermining  the  Union’s  broader  objectives  of  affordability  and 
electrification. 

Accelerating the electrification of the Union’s energy system can help reduce energy 
costs  and  exposure  to  fossil-fuel  price  volatility  by  enabling  greater  use  of  domestic 
renewable  and  low  carbon  electricity,  in  particular  where  electrification  is  supported 
by  appropriate  tariff  design,  efficient  technologies  and  flexibility.  Smart  meters  and 
smart  grids,  supported  by  secure  and  interoperable  data  exchange  between  system 
operators, market participants and final customers, are key enablers of such flexibility, 
as  they  allow  electricity  consumption,  generation  and  storage  to  respond  more 
efficiently to system needs and price signals. However, the transition to electrification 
is  hampered where national  taxation frameworks continue to  favour fossil fuels  over 
electricity, thereby disincentivising the shift to lower-cost, renewable and low-carbon 
energy solutions. 

In  order  to  effectively  lower  electricity  bills  and  support  the  Union’s  energy  and 
climate objectives, it is necessary to adopt a dual approach comprising both increasing 
the  efficiency  of  electricity  networks  and  the  alignment  of  taxation  principles.  The 
measures concerning taxation set out in this Regulation do not harmonise tax rates or 
levels  but  ensure  that  electricity  is  not  subject  to  a  higher  tax  burden  than  gas.  By 
removing  regulatory  barriers  that  could  otherwise  impede  the  affordability  of 
electricity  and  the  transition  to  electrification,  these  provisions  support  the  primary 
objective of this Regulation while respecting the competence of Member States in the 
area of taxation. 

The  primary  objective  of  these  measures,  i.e.  increased  efficiency  of  the  network 
through smarter network charges, smart and digital technologies and streamlined data 
exchanges, should, in turn, also ensure efficient expansion of the electricity grid. Grid 
expansion  is  often  necessary  to  accelerate  grid  connections  and  accommodate  rising 
demand for electricity by system users such as data centres, energy intensive industries 
or market participants in the transport sector. 

Network charges or tariffs comprise connection charges and use charges. Connection 
charges  are  typically  payable  on  a  ‘one-off’  basis  for  connecting  to  the  electricity 
network.  Use  charges  are  linked  to  the  use  of  the  electricity  network.  Use  charges 
include  charges  for  building,  upgrading,  maintaining  and  operating  the  transmission 
and  distribution  infrastructure,  charges  for  transmission  and  distribution  losses, 
charges  for  system  operators’  procurement  of  system  services  and  charges  for 
withdrawing  or  injecting  electricity.  Considering  that  network  charges  are  a 
considerable factor in electricity costs and are an important driver for ensuring a cost-
optimal energy system, harmonised rules can support a level playing field and extend 
good practices to all Member States. This promotes a more efficient approach, which 
can bring down costs and have a positive impact on the affordability of electricity for 
Union consumers and on the competitiveness of the European economy. To that end, 
network  charges  should  be  cost-reflective,  transparent  and  non-discriminatory,  and 
should provide the right incentives to both system operators and system users for the 
cost-efficient functioning of the electricity system. 

(8) 

Cost-reflective network charges should reflect the costs incurred by system operators 
to  develop  and  operate  a  cost-efficient  network,  insofar  as  such  costs  correspond  to 
those  of  an  efficient  and  structurally  comparable  network  operator,  considering 

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operational  and  capital  expenditures.  Network  charges  should  also  include  an 
appropriate return on investment. To achieve a cost-efficient use of the network and in 
line  with  the  energy  efficiency  first  principle,  tariffs  should  incentivise  system 
operators  to  minimise  electricity  losses  and  to  optimise  the  use  of  existing  grids, 
including through the use of flexibility services  and the deployment of non-wire and 
digital  solutions,  smart  electricity  grids  and  smart  metering  systems.  Moreover, 
network  charges  should  be  designed  in  such  a  way  as  to  provide  the  necessary 
incentives to system users to contribute to  a higher flexibility of the network, and to 
avoid  inefficient  curtailment  while  allowing  energy  to  be  used  where  the  cheapest 
energy  sources  are  available  and  when  it  is  the  most  cost  efficient  for  the  overall 
system.  Network  charges  should  also  provide  locational  investment  signals  and 
contain  capacity,  as  well  as  time-of-use  elements.  The  latter  could  be  of  a  static  or 
dynamic nature to incentivise system users to make more efficient use of the network. 
Furthermore, costs created by system users who either inject or withdraw electricity to 
and  from  the  grid  should  also  be  considered  in  the  overall  network  charges 
methodology. 

To  ensure  a  level  playing  field  for  all  market  participants  in  the  interconnected 
European electricity markets, network charges should be applied in a way which does 
not discriminate between production connected at the distribution level and production 
connected  at  the  transmission  level.  Moreover,  network  charges  should  not 
disincentivise  aggregation,  energy  communities,  self-generation,  self-consumption, 
storage  or  participation  in  demand  response  and  should  enable  effective  and  timely 
third-party  access.  With  respect  to  storage,  network  charges  should  be  used  to 
incentivise  grid-friendly  behaviour,  and  they  should  reflect  the  benefits  to  the  grid, 
without  discouraging  deployment  of  storage  assets.  Moreover,  tariff  regimes  should 
account for the particularities of storage facilities, by avoiding ‘double charging’ while 
reflecting the overall cost impact of the storage on network costs. 

(9) 

(10)  Any  special  tariff  regimes  for  specific  categories  of  system  users,  such  as  energy-
intensive industries and data  centres, should respect  the principle of cost-reflectivity. 
While the electricity consumption of data centres is expected to grow significantly in 
the  coming  years,  increasing  pressure  on  electricity  grids  and  tariffs,  their  optimal 
location,  time-of-use  and  consumption  profile  can  support  their  efficient  connection 
and  integration  into  the  electricity  system  and  should  be  incentivised  in  network 
tariffs,  in  particular  when  data  centres  can  render  services  to  the  energy  system,  for 
example  by  bringing  flexibility  services,  additional  energy  storage  and  clean  energy 
production to the grid. 

(11)  Regulatory  authorities  play  a  crucial  role  in  ensuring  that  tariffs  are  designed  in  the 
most  appropriate  way  to  ensure  cost  efficiency  of  the  network  and  ensure  there  is 
sufficient investment for the necessary grid operation and development. In view of the 
need  to  guarantee  a  level  playing  field  and  to  ensure  an  efficient  use  of  European 
electricity  networks,  regulatory  authorities  should  apply  consistent  and  objective 
benchmarking  criteria.  In  this  context,  regulatory  authorities  should  set  performance 
indicators,  including  smart  electricity  grid  indicators,  to  assess  the  extent  to  which 
system operators operate and develop the network cost-efficiently. Given its expertise 
and experience, the European Union Agency for the Cooperation of Energy Regulators 
(ACER) should assist regulatory authorities in this task, including through carrying out 
an  efficiency  comparison  among  transmission  system  operators.  Given  the  very 
diverse  landscape  of  distribution  systems  across  the  Union,  with  more  than  2600 
distribution system operators owning a licence, regulatory authorities are best placed 

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to perform efficiency comparisons among distribution system operators at the national 
level.  

(12)  Given the pressure on electricity bills, the need for significant investments in the grid 
and the necessity to ensure the affordability of electricity and the competitiveness of 
European industry, Member States should be able to allocate funding to the electricity 
network from their general budget, including by allocating specific parts of Cohesion 
funds  or  other  available  Union  funding  to  investment  support  of  grid  development. 
Such  injections  of  public  funds  to  support  overall  network  costs  should  only  be 
allowed  insofar  as  they  are  non-discriminatory,  in  line  with  the  applicable  legal 
requirements  and  the  principle  of  cost-reflectiveness  and  are  not  undermining  the 
internal market. Moreover, it is important to ensure that such public support is targeted 
the  acceleration  of 
and 
decarbonisation,  for  example,  through  electrification  of  industrial  consumers,  and 
market  integration such as investments  into interconnectors, major network upgrades 
or  offshore  grid  connection  infrastructure  and  meets  certain  specific  needs  in  the 
network, such as investments that reduce waiting times for grid connections. However, 
the  use  of  public  funds  should  not  delay  investments  in  necessary  infrastructure  or 
distort the optimal location of power generation units.  

temporary  and  provides  overall  benefits 

through 

(13)  The  ability  to  compare  tariffs  is  instrumental  for  system  users  to  act  in  a  system-
friendly way. Not only does this improve their understanding of the applicable tariffs, 
but  it  also  helps  them  understand  how  to  adjust  their  behaviour  vis-à-vis  the  system 
accordingly  to  pay  lower  tariffs.  To  increase  comparability  in  tariff  setting,  more 
transparency  is  necessary.  Additional  transparency  will  also  enable  regulatory 
authorities  to  adopt  best  practices  and  carry  out  their  respective  cost-effectiveness 
assessments  when  fixing  or  approving  tariff  methodologies.  This  is  particularly 
important  for  the  different  elements  that  need  to  be  considered  in  the  tariff 
methodologies, as well as for the complex trade-offs underlying the assessment on the 
basis  used  to  fix  or  approve  tariff  methodologies.  Prior  to  fixing  or  approving  tariff 
methodologies,  regulatory  authorities  should  publicly  consult  relevant  stakeholders. 
Regulatory authorities should take into account the short-term distributional impacts of 
any  changes  in  the  tariff  methodologies  and  consider  whether  a  gradual  approach  is 
necessary so as  to  give system  users time to  adjust  their behaviour and consumption 
patterns.   

(14)  Since  2019,  ACER  has  issued  several  best  practices  reports  on  tariff  methodologies. 
Those reports provide insight into the challenges and recent developments in network 
tariff setting and specific analyses of national tariff setting practices. The reports have 
also  increased  transparency  and  allowed  for  the  sharing  of  good  practices  and 
comparability in tariff setting. Given these positive outcomes, ACER should continue 
to  issue  such  reports.  Those  reports  should  be  separate  from  ACER’s  reports 
comparing the efficiency of transmission system operators and their costs, because of 
their different subject matter. 

(15) 

In  order  to  lay  down  the  necessary  details  to  ensure  the  effectiveness  of  Regulation 
(EU) 2019/943, the power to adopt acts in accordance with Article 290 of the Treaty 
on the Functioning of the European Union should be delegated to the Commission, in 
respect  of  supplementing  this  Regulation  by  establishing  guidelines  on  a  common 
structure  and  harmonised  methodology  on  tariffs,  detailed  conditions  under  which 
regulatory  authorities  may  introduce  separate  network  charge  regimes  for  specific 
categories  of  system  users  and  harmonised  rules  on  the  procedural  and  substantive 
requirements  for  the  public  consultations  that  need  to  be  carried  out  for  the  relevant 

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draft  tariff  methodologies.  Given  the  long-standing  experience  and  expertise  of 
regulators  in  approving  tariff  methodologies  and  in  the  supervision  and  control  of 
related activities, ACER should provide a recommendation to the Commission before 
the  Commission  issues  delegated  acts  on  a  common  structure  and  harmonised 
methodology  on  tariffs.  It  is  of  particular  importance  that  the  Commission  carry  out 
appropriate  consultations  during  its  preparatory  work,  including  at  expert  level  and 
that those consultations be conducted in  accordance with  the principles laid  down in 
the  Interinstitutional  Agreement  of  13 April  2016  on  Better  Law-Making.1  In 
particular,  to  ensure  equal  participation  in  the  preparation  of  delegated  acts,  the 
European  Parliament  and  the  Council  receive  all  documents  at  the  same  time  as 
Member  States’  experts,  and  their  experts  systematically  have  access  to  meetings  of 
Commission expert groups dealing with the preparation of delegated acts. 

(16)  The  deployment  of  non-wire,  smart  and  digital  solutions  should  be  promoted 
whenever  they  efficiently  enhance  the  usable  capacity,  flexibility  and  reliability  of 
electricity transmission and distribution networks. Complementing the framework for 
smart  electricity  grids  provided  under  Directive  (EU)  2019/944  of  the  European 
Parliament and of the Council2 and under Regulation (EU) 2022/869 of the European 
Parliament and of the Council3, transmission and distribution system operators should 
ensure that non-wire, smart and digital solutions, alongside non-fossil flexibility such 
as  demand  response,  storage  and  other  solutions,  are  considered  with  priority  in 
network  planning  as  well  as  system  operation.  The  efficiency-enhancing  effects  of 
these  solutions  should  be  demonstrated  on  the  basis  of  objective  and  transparent 
criteria,  such  as  their  impact  on  usable  network  capacity,  congestion,  resilience, 
quality  of  supply  or  integration  of  renewable  energy  and  flexibility,  and  cost-
efficiency  in  achieving  these  goals  in  comparison  to  physical  grid  development. 
Regulatory authorities should be able to rely on network development plans including 
related cost-benefit assessments, and relevant performance indicators for that purpose. 

(17)  Efficient  use  of  electricity  infrastructure  increasingly  depends  on  the  ability  of 
transmission and distribution systems to develop the grid efficiently for future power 
system  needs,  including  renewable  acceleration  areas  and  industrial  areas  and  to 
integrate flexibility,  digitalisation and data-driven solutions. In this context, common 
indicators should provide a consistent basis for measuring the performance of system 
operators in  deploying smart  electricity  grid functionalities  and making  effective use 
of existing infrastructure. A limited set of common indicators should be recommended 
by  ACER,  building  on  its  existing  analytical  work    and  that  of  national  regulatory 
authorities,  in  order  to  achieve  a  more  coherent  monitoring  framework,  support 
convergence of regulatory approaches, facilitate the identification of best practices for 
regulatory  approaches  and  measure  progress  in  the  development  of  smart  electricity 
grids, as defined in Article 2, point (9), of Regulation (EU) 2022/869. 

(18) 

In order to improve the efficiency and adaptability of electricity networks and provide 
a consistent analytical basis for the development of regulatory approaches that better 
reflect system performance, benefits for the broader energy system and the uptake of 

1 
2 

3 

OJ L 123, 12.5.2016, p. 1. 
Directive  (EU)  2019/944  of  the  European  Parliament  and of  the  Council  of 5  June  2019  on  common 
rules for the internal market for electricity and amending Directive 2012/27/EU (OJ L 158, 14.6.2019, 
p. 125, ELI: http://data.europa.eu/eli/dir/2019/944/oj). 
Regulation  (EU)  2022/869  of  the  European  Parliament  and  of  the  Council  of  30  May  2022  on 
guidelines  for  trans-European  energy  infrastructure,  amending  Regulations  (EC)  No  715/2009,  (EU) 
2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation 
(EU) No 347/2013 (OJ L 152, 3.6.2022, p. 45, ELI: http://data.europa.eu/eli/reg/2022/869/oj). 

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innovative  solutions,  regular  Union-level  reporting  should  be  carried  out  based  on 
those  indicators.  ACER  should  receive  data  on  deployment  of  smart  electricity  grid 
technologies  as  well  as  on  enabling  regulatory  practices  and  national  smart  grid 
indicators  in  order  to  enable  ACER  to  assess  existing  practices  to  identify  best  case 
examples  from  national  regulatory  authorities.  Currently,  smart  electricity  grid 
indicators are not  being  implemented in  a harmonised manner across the  Union, and 
divergent  approaches  lead  to  a  differing  regulatory  environment,  undermining  the 
consistent  measurement  of  the  uptake  and  performance  of  smart  and  innovative  grid 
technologies and digital solutions in transmission and distribution networks. In order 
to ensure uniform conditions for the implementation of this Regulation, implementing 
powers  should  be  conferred  to  the  Commission  to  establish  smart  electricity  grid 
indicators  to  measure  the  uptake  and  performance  of  smart  and  innovative  grid 
technologies  and  digital  solutions  in  transmission  and  distribution  networks.  The 
Commission should consider ACER’s recommendation.   

(19)  To  reduce  system  costs  and  improve  the  functioning  of  the  internal  energy  market, 
thereby  contributing  to  lower  electricity  prices,  it  is  necessary  to  make  better  use  of 
existing  grid  infrastructure  via  seamless  data  exchange  and  use  of  digital  tools.  This 
requires a more effective and timely exchange of relevant electricity grid data between 
system  operators,  which  will  enable  a  higher  level  of  grid  observability  by  better 
coordination  across  transmission  and  distribution  levels.  Depending  on  the  use  case, 
electricity  grid  data  can  include  network  topology,  grid  parameters  and  asset 
characteristics,  connection  and  capacity  data, 
from 
Supervisory  Control  and  Data  Acquisition  (SCADA)  systems  and  other  operational 
measurements,  state  estimation  and  power  flow  data,  voltage,  load  flow  and 
congestion  data,  outage  and  maintenance  data,  dispatch,  redispatch  and  curtailment 
data,  flexibility  needs,  and  operational  forecasts,  as  well  as  limits  and  constraints 
relevant for transmission and distribution system operation. 

real-time  measurements 

(20)  System  operators  should  improve  the  productivity  of  network  infrastructure  through 
the  deployment  of  innovative  technologies,  supported  by  interoperable  grid  data 
exchange  arrangements.  This  is  because  data-driven  tools  for  grid  operation  will 
contribute  to  reducing  system  constraints,  thereby  limiting  the  scope  of  grid 
reinforcements  and  alleviating  system  stress.  Where  electricity  grid  data  contains 
personal  data, any processing of such data should be in  line with the applicable data 
protection  rules,  in  particular  Regulation  (EU)  2016/679  of  the  European  Parliament 
and of the Council4. For  the purposes of this Regulation,  system  operators should  in 
principle only exchange aggregated or anonymised data. Personal data should only be 
shared when anonymised data are not sufficient for the objective pursued. Where such 
electricity grid data falls within the scope of Chapter II of Regulation (EU) 2023/2854 
of the European Parliament and of the Council5, the rights and obligations laid down 
in  that  Chapter  apply.  This  Regulation  should  not  create  a  parallel  or  conflicting 
regime for access to and sharing of that data. 

4 

5 

EN 

Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27  April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of 
such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, 
p. 1, ELI: http://data.europa.eu/eli/reg/2016/679/oj). 
Regulation (EU) 2023/2854 of the European Parliament and of the Council of 13 December 2023 on 
harmonised  rules  on  fair  access  to  and  use  of  data  and  amending  Regulation  (EU)  2017/2394  and 
Directive 
ELI: 
http://data.europa.eu/eli/reg/2023/2854/oj). 

22.12.2023, 

2023/2854, 

2020/1828 

(EU) 

(OJ 

L, 

22 

  EN 

 
(21)  The  efficient  and  secure  operation  of  electricity  networks  increasingly  depends  on 
developing and deploying advanced digital and data-driven solutions. Availability and 
accessibility of relevant electricity grid data are crucial for the ability to develop, test 
and  scale  innovative  solutions  for  grid  operation  and  optimisation.  In  particular,  the 
use  of  electricity  grid  data  for  analytical,  research  and  innovation  purposes  is 
constrained  by  legal  uncertainty,  high  transaction  costs  and  the  absence  of  common 
arrangements  for  secure  data  access,  processing  and  governance.  It  is  therefore 
appropriate  to  provide  for  a  framework  enabling  transmission  system  operators  and 
distribution  system  operators  to  cooperate,  on  a  voluntary  basis  and  through  a 
coordinated  Union-level  arrangement,  to  cooperate  with  relevant  stakeholders  in 
pooling data, expertise and computing resources to develop, test, integrate and deploy 
innovative digital tools for electricity system operation and optimisation.  

(22)  The  framework  for  cooperation  between 

transmission  system  operators  and 
distribution  system  operators  should  support  the  wider  availability  of  the  solutions 
developed  to  benefit  system  operators  across  the  Union.  It  should  also  ensure 
appropriate  safeguards  for  data  protection,  confidentiality,  safety,  cybersecurity  and 
system  security.  The  Commission  stands  ready  to  provide  informal  guidance  to 
companies  on 
the 
achievement  of  Union  priorities  with  antitrust  rules,  in  particular  projects  related  to 
innovation, decarbonisation and AI development 

the  compatibility  of  cooperation  projects  contributing 

to 

(23)  To  support  the  consistent  development  of  the  coordinated  arrangement  at  scale, 
common  requirements  on  data  models,  data  formats,  data  ontologies,  access 
procedures,  governance,  transparency  and  secure  grid  data  exchange  should  be 
established  at  Union  level.  These  should  build  on  existing  standards  such  as  the 
Common  Grid  Model  Exchange  Standard.  In  order  to  ensure  uniform  conditions  for 
the  implementation  of  the  coordinated  arrangement,  implementing  powers  should  be 
conferred on the Commission to  establish those requirements as well as rules for the 
lawful,  secure  and  controlled  reuse  of  data  for  research  and  innovation  purposes 
supporting the operation and optimisation of the electricity system. 

(24)  The  efficient  use  of  the  electricity  network  relies  on  the  availability  of  accurate  and 
granular consumption data and on final customers’ ability to access and act upon such 
data.  Smart  metering  systems  are  a  key  enabler  of  demand  response  and  dynamic 
electricity  price  contracts,  which  can  help  improve  the  use  of  existing  electricity 
network infrastructure, including by reducing the curtailment of renewable energy and 
facilitating  electrification.  By  enabling  consumers  to  adjust  their  consumption  to 
periods of lower prices and to benefit from more efficient use of the electricity system, 
smart metering systems can contribute to more affordable and predictable energy bills. 
In  order  to  achieve  sufficient  deployment  across  the  Union  and  to  support  more 
efficient  network  usage,  including  across  borders  within  the  internal  energy  market, 
Member  States  should  ensure  that  at  least  50 %  of  final  customers  have  access  to  a 
smart  meter  to  establish  critical  mass  for  consumer  participation  and  flexibility 
services, and progressively increase this level to at least 75 % by 31 December 2033. 
To ensure feasible rollout timelines while keeping the overall EU ambition, Member 
States  with  deployment  levels  below  30 %  at  the  date  of  entry  into  force  of  this 
Regulation should be given additional time to reach these targets.  This addresses the 
current  uneven  state  of  deployment  across  the  Union,  with  overall  penetration  at 
around  60 %  and  several  Member  States  lagging  behind  or  not  yet  having  initiated 
large-scale rollouts, in a proportionate way. Cost-benefit assessments under Directive 
(EU)  2019/944  should  apply  only  to  deployment  beyond  the  75 %  level,  ensuring 

EN 

23 

  EN 

proportionality  while  meeting  the  Union’s  digitalisation  and  flexibility  objectives.  In 
order  to  support  the  effective  implementation  of  these  obligations  as  laid  down  in 
Article 18b of this Regulation, Member States are encouraged to make appropriate use 
of  available  funding  and  financing  opportunities  under  relevant  Union  programmes 
and  instruments,  in  accordance  with  the  rules  governing  those  programmes  and 
instruments. 

(25)  Given  the  critical  role  of  deployed  and  operated  smart  metering  systems  in  an 
increasingly  digitalised  electricity  system,  a  high  level  of  cybersecurity  and 
operational  and  supply  chain  resilience  should  be  ensured  throughout  their  lifetime, 
taking into account relevant European cybersecurity legislation, including Regulation 
(EU) 2024/2847 of the European Parliament and of the Council6, in particular where 
smart  metering  components  fall  within  the  scope  of  critical  products,  certification 
schemes established under Regulation (EU) 2019/881 of the European Parliament and 
of  the  Council7,  as  well  as  the  need  to  avoid  supply  chain  security  risks  and 
dependencies  that  could  undermine  continuity  and  security  of  essential  metering 
functionalities and data protection. As smart metering systems form part of the broader 
electricity grid technology ecosystem, relevant sustainability, resilience and security of 
supply  considerations  reflected  in  Regulation  (EU)  2024/1735  of  the  European 
Parliament  and  of  the  Council8  also  need  to  be  taken  into  account,  including,  where 
appropriate, in procurement practices. 

(26)  The  uptake  of  electrification  is  intrinsically  linked  to  electricity  costs,  which  in  turn 
are  impacted  not  only  by  network  charges  by  also  by  the  taxes  levied  on  electricity 
bills. To support the affordability of electricity, its uptake as an energy source and the 
transition  to  a  low-carbon  economy,  Member  States  should  ensure  that  electricity  is 
taxed more favourably than natural gas, thereby providing a pricing signal to support 
the  electrification  of  the  Union.    This  principle  is  in  line  with  the  Union’s  climate 
goals  and  can  be  enacted  by  Member  States  under  the  current  Union  harmonised 
framework as established by Council Directive 2003/96/EU9. However, where this is 
duly justified by a Member State, based on specific national circumstances, including 
in view of the fiscal situation of the Member State, the Commission should have the 
possibility to authorize Member State, by means of an implementing act,  to defer the 
application  of  the  first  subparagraph  until  a  point  in  time  which strikes  a  balance 
between  the  specific  national  circumstances  concerned  and  the  need  to  reach  the 
Union’s electrification objectives. 

(27)  This  price  signal  is  particularly  relevant  for  energy-intensive  businesses,  where  the 
cost-differential  to  natural  gas  can  hinder  the  transition  to  cleaner  energy  sources.  

6 

7 

8 

9 

Regulation  (EU)  2024/2847  of  the  European  Parliament  and  of  the  Council  of  23  October  2024  on 
horizontal  cybersecurity  requirements  for  products  with  digital  elements  and  amending  Regulations 
(EU) No 168/2013 and (EU) 2019/1020 and Directive (EU) 2020/1828 (Cyber Resilience Act),  (OJ L, 
2024/2847, 20.11.2024, ELI: http://data.europa.eu/eli/reg/2024/2847/oj).  
Regulation (EU) 2019/881 of the European Parliament and of the Council of 17 April 2019 on ENISA 
(the  European  Union  Agency  for  Cybersecurity)  and  on  information  and  communications  technology 
cybersecurity certification and repealing Regulation (EU) No 526/2013 (Cybersecurity Act), (OJ L 151, 
7.6.2019, p.15, ELI: http://data.europa.eu/eli/reg/2019/881/oj). 
Regulation  (EU)  2024/1735  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on 
establishing  a  framework  of  measures  for  strengthening  Europe’s  net-zero  technology  manufacturing 
ecosystem  and  amending  Regulation  (EU)  2018/1724  (OJ  L,  2024/1735,  28.6.2024,  ELI: 
http://data.europa.eu/eli/reg/2024/1735/oj). 
Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the  Community  framework  for  the 
taxation 
51, 
electricity 
ELI: http://data.europa.eu/eli/dir/2003/96/oj).  

31.10.2003, 

(OJ  L 

products 

energy 

283, 

and 

of 

p. 

EN 

24 

  EN 

 
(28) 

Article 17 of Directive 2003/96/EU permits Member States to apply a reduced level of 
taxation,  including  a  rate  of  zero,  to  electricity  used  by  energy-intensive  businesses, 
subject  to  certain  environmental,  water  and  energy  efficiency  conditions.  As 
electrification is a key pillar of the Union’s strategy to reach net-zero greenhouse gas 
emissions,  as  recently  reaffirmed  in  the  Clean  Industrial  Deal,  accelerating  the 
electrification  of  the  economy  will  not  only  contribute  to  climate  objectives  but  can 
also  help  reduce  energy  costs  and  support  the  competitiveness  of  the  Union’s 
manufacturing  sector.  Consequently,  electricity  used  by  energy-intensive  businesses 
should  be  considered  as  meeting  the  environmental  objectives  and  increased  energy 
efficiency conditionality set out in Article 17(4) of Directive 2003/96/EU. 

In case of scarcity in the available capacity of the grid, regulatory authorities should be 
allowed to  approve measures  to  deter speculative requests for connection to  the grid 
and  manage  connection  queues,  to  ensure  that  access  to  the  grid  is  done  in  an 
objective,  transparent  and  non-discriminatory  manner  in  line  with  Article  3  of 
Regulation  (EU)  2019/943  and  Article  6  of  Directive  (EU)  2019/944.  In  addition, 
Member  States  and  regulatory  authorities  should  ensure  the  applicability  of  other 
available  measures  to  address  insufficient  grid  capacity  like  flexible  connection 
agreements  or  cross-sectorial  network  planning.  Member  States  can  also  explore 
further  options  for  considering  maturity  and  progress  of  grid  connection  requests  in 
line  with  the  first  ready  first  serve  principle  or  anticipatory  network  planning,  as 
explained under the Guidance on efficient and timely grid connections10. To this end, 
Member States should be allowed to create conditions to establish specific areas with 
available  or  planned  grid  capacity  upgrades  to  enable  accelerated  access  of  network 
users  like  for  instance  industrial  customers  and  data  centres  to  networks.  When 
approving  measures  and  conditions  on  access  to  grid,  and  especially  for  special 
categories  of  system  users  like  data  centres  or  energy  intensive  industry  considering 
their network impacts, regulatory authorities should also be allowed to prioritise users 
within  the  same  category  with  flexible  consumption  patterns  contributing  to  on-site 
storage  and  on-site  generation  of  additional  clean  energy  and  sustainable  use  of 
resources. 

(29)  Regulation (EU) 2019/943 should therefore be amended accordingly. 

(30)  Since the objective of this Regulation, namely to achieve the cost effectiveness of the 
system operation and foster electrification of the grid, cannot be sufficiently achieved 
by the Member States, but can rather be better achieved at Union level, the Union may 
adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 
of the Treaty on European Union. In accordance with the principle of proportionality, 
as  set  out  in  that  Article,  this  Regulation  does  not  go  beyond  what  is  necessary  to 
achieve those objectives. 

(31)  The  European  Data  Protection  Supervisor  was  consulted  in  accordance  with  Article 
42(1)  of  Regulation  (EU)  2018/1725  of  the  European  Parliament  and  of  the  Council 
and delivered an opinion on [date]. 

(32)  The provisions of this Regulation are without prejudice to the right of Member States 
to  notify  State  aid  measures,  according  to  the  applicable  procedures  and  conditions 
laid down in  State aid  rules. Member States may  for example  introduce measures to 
support industrial  electrification projects  where an effective decarbonization effect  is 
confirmed  and  in  line  with  the  guidelines  on  State  aid  for  climate,  environmental 

10 

Commission notice of 10 December 2025, Guidance on efficient and timely grid connections, C(2025) 
8473 final. 

EN 

25 

  EN 

 
protection and energy (CEEAG)11 and the Clean Industrial Deal State Aid Framework 
(CISAF)12.  Such  State  aid  measures  may  also  provide  support  for  the  additional 
expenditure related to the connection to the electricity grid or to the extension of a pre-
existing  electricity  grid  connection,  including  both  upfront  costs,  for  example  “last-
mile”  grid  connection,  and  yearly  costs,  i.e.  regular  grid  tariff,  while  preserving 
incentives  provided  to  system  users  to  choose  their  location  and  adjust  their 
consumption to lower the overall costs of the transmission and distribution systems, 

HAVE ADOPTED THIS REGULATION: 

11 

12 

Communication from the Commission – Guidelines on State aid for climate, environmental protection 
and energy 2022, C/2022/481. 
Communication  from  the  Commission  –  Framework  for  State  Aid  measures  to  support  the  Clean 
Industrial Deal (Clean Industrial Deal State Aid Framework), C/2025/7600. 

EN 

26 

  EN 

 
 
 
Regulation (EU) 2019/943 is amended as follows:  

(1) Article 18 is replaced by the following: 

Article 1 

‘Article 18 

Network charges 

1.  Network  charges  shall  be  cost-reflective,  transparent  and  non-discriminatory,  shall 
provide incentives  to  system  operators to  develop and operate the transmission and 
distribution networks in a cost-efficient way, and shall provide incentives to system 
users  to  adjust  their  use  of  the  electricity  system  to  support  its  cost-efficient 
functioning.  

2.  Tariff methodologies shall include the design of network charges  applied to system 
users  and  the  determination  of  the  remuneration  that  transmission  and  distribution 
system operators receive through those network charges. They shall: 

(a) 

(b) 

(c) 

(d) 

(e) 

reflect  the  costs  of  transmission  and  distribution  system  operators,  insofar  as 
those  costs  correspond  to  those  of  an  efficient  and  structurally  comparable 
system  operator,  considering  both  capital  and  operational  expenditure, 
including  costs  related  to  anticipatory  investment,  but  not  costs  supporting 
unrelated  policy  objectives.  Regulatory  authorities  shall  set  common 
performance  indicators  as  regards  the  efficient  operation  and  development  of 
the  network,  including  smart  electricity  grid  indicators  in  accordance  with 
Article 18a;  

take account of the payments and receipts resulting from the inter-transmission 
system  operator  compensation  mechanism,  including  actual  payments  made 
and received as well as payments expected for future periods, estimated on the 
basis of previous periods; 

provide  appropriate  incentives  to  transmission  and  distribution  system 
operators for the cost-efficient operation and development of the network over 
both  the  short  and  long  term  and  for  the  optimisation  of  the  existing  grids 
across  all  voltage  levels,  inter  alia  through  the  use  of  flexibility  services,  the 
deployment of non-wire and digital solutions, smart electricity grids and smart 
metering  systems,  including  incentives  to  reach  the  minimum  levels  of 
available capacity for cross-zonal trades set out in Article 16(8); 

reflect the costs  created by system  users which withdraw  electricity  from  and 
inject electricity into the transmission or distribution networks;  

provide appropriate incentives to system users to withdraw electricity from and 
inject electricity into the transmission or distribution networks in a way which 
supports the efficient functioning of these networks; 

(f) 

provide locational investment signals; 

(g)  provide  appropriate  incentives  to  system  users  for  the  reduction  of  peak  load 
consumption,  including  through  adding  a  capacity  element  to  the  tariff 
structure;  

(h) 

contain time-of-use elements to reflect the use of the network; 

EN 

27 

  EN 

(i) 

(j) 

(k) 

not  discriminate between system  users connected at  the distribution level  and 
system users connected at the transmission level; 

not  disincentivise  effective  and  timely  third-party  access,  aggregation,  energy 
communities, self-generation, self-consumption, storage or the participation in 
demand response; 

enable  the  integration  of  renewable  energy  through  the  development  and 
facilitation  of  non-fossil-flexibility  such  as  storage  and  demand  response,  as 
innovation,  non-wire  solutions,  smart  electricity  grids  and 
well  as 
digitalisation; 

(l) 

enable  the  use  of  flexible  connections,  while  ensuring  this  does  not  delay 
needed network reinforcements; 

(m)  not impose specific network charges on individual transactions for cross-zonal 

trading of electricity;  

(n) 

ensure  that  network  charges  applicable  to  storage  installations  reflect  any 
benefits  created  for  the  network  and  are  limited  to  the  costs  that  these 
installations create for the transmission or distribution networks; and 

3.  Special  tariff  regimes  may  apply  to  specific  categories  of  system  users,  such  as 
energy-intensive industries or data centres and energy communities, provided that the 
regulatory  authorities  can  demonstrate  that  the  consumption  profile  of  the  users  in 
question  has  a  proportionally  lower  or  higher  impact  on  the  overall  cost  of  the 
transmission  or  distribution  network  and  that  the  principle  of  cost-reflectivity  is 
respected.     

4.  Member  States  may  partially  cover  network  costs  through  State  funds  to  lower  the 
overall amount of network charges billed to system users provided that the following 
requirements are met:  

(a) 

(b) 

(c) 

the State funds to transmission or distribution system operators are provided in 
a  non-discriminatory  manner,  without  selectively  favouring,  directly  or 
indirectly, specific categories of system users; 

the  provision  of  State  funds  does  not  undermine  any  incentives  provided  to 
system  operators  for  the  efficient  operation  and  development  of  the  network 
and to system users to adjust their consumption to lower the overall costs of the 
transmission and distribution systems;  

the  State  funds  are  temporary,  and  cover  only  the  additional  costs  resulting 
from  measures  to  accelerate  decarbonisation,  electrification  of  production 
processes and market integration;  

(d) 

the  provision  of  State  funds  is  not  to  the  detriment  of  competition  or  the 
effective functioning of the internal market for electricity. 

This  paragraph  is  without  prejudice  to  the  right  of  Member  States  to  notify  under 
applicable State aid rules measures aimed to reduce energy costs, including network 
charges,  for  specific  categories  of  users  while  preserving  incentives  provided  to 
system  users  to  choose  their  location  and  adjust  their  consumption  to  lower  the 
overall costs of the transmission and distribution systems.  

EN 

28 

  EN 

 
5.  From  [first  day  of  the  month  of  entry  into  force  plus  13  months],  regulatory 
authorities shall ensure the transparency of the methodologies, parameters and values 
used to determine or approve the costs that are to be recovered by transmission and 
distribution system operators. From that date, regulatory authorities shall publish, or 
require  that  the  relevant  transmission  system  operators  or  distribution  system 
operator publishes, at least the following information:  

(a) 

transmission infrastructure costs, such as capital  expenditure, including  return 
on capital and depreciation, and operational expenditure; 

(b)  distribution  infrastructure  costs,  such  as  capital  expenditure,  including,  return 

on capital and depreciation, and operational expenditure; 

(c) 

costs of transmission losses; 

(d) 

costs of distribution losses; 

(e) 

(f) 

(g) 

costs of metering services; 

costs  of  withdrawing  or  injecting  reactive  power  outside  the  allowed  limits; 
and 

costs  of  system  operators  purchases  of  ancillary  services  and  congestion 
management services, including re-dispatching costs. 

Regulatory authorities shall furthermore publish at least the following information, or 
shall  require  its  publication  by  the  relevant  transmission  or  distribution  system 
operator: 

(a) 

(b) 

the  assessment  underlying  the  detailed  transmission  and  distribution  tariff 
methodologies; 

the  cost  categories  and  the  amounts  of  such  costs  recovered  by  each  type  of 
tariff they apply; 

(c)  where applicable, the amount of network charges covered through State funds 
or  other  public  funds  pursuant  to  paragraph  4  and  their  share  of  the  total 
network charges; 

(d) 

(e) 

(f) 

(g) 

the  annual  transmission  and  distribution  tariff  values  for  each  system  user 
group; 

any studies relied upon for the available choices for tariff design; 

any special tariff regimes provided to system users together with a justification 
for those regimes;  

the performance indicators as regards the efficient operation and development 
of the network referred to in paragraph 2, point (a). 

The  information  referred  to  in  this  paragraph  shall  be  made  available  in  a freely 
accessible, downloadable and read-only format and, to the extent possible, in one or 
more  commonly  understood  languages,  while  preserving  the  confidentiality  of 
commercially sensitive information.  

6.  Prior  to  fixing  or  approving  the  applicable  tariff  methodologies  in  accordance  with 
Article 59(1), point (a), of Directive (EU) 2019/944, regulatory authorities shall carry 
out one or more public consultations on the relevant draft methodologies.  

7.  ACER  shall  assist  regulatory  authorities  in  determining  performance  indicators  in 
accordance with paragraph 2, point a), and shall carry out an efficiency comparison 

EN 

29 

  EN 

among  transmission  system  operators,  and  their  costs,  considering  those  indicators. 
The regulatory authorities and the transmission system operators shall provide ACER 
with  all the data necessary for that comparison. By [first day of the month  of  entry 
into  force  plus  25  months]  and  every  four years  thereafter,  ACER  shall  publish  a 
report with the efficiency comparison among transmission system operators and their 
costs set out, while protecting commercially sensitive data.  

Regulatory authorities shall carry  out  the efficiency comparison  among  distribution 
system operators in their respective  jurisdictions, and their costs, insofar as there is 
more  than  one  distribution  system  operator  and  taking  into  account  national 
specificities.  The  relevant  distribution  system  operators  shall  provide  regulatory 
authorities with all the data necessary for that comparison. By [first day of the month 
of  entry  into  force  plus  37  months]  and  every  four years  thereafter,  regulatory 
authorities  shall  publish  a  report  building  on  the  results  of  national  efficiency 
comparison among distribution system operators and their costs.  

8.  ACER shall by [first day of the month of the entry into force plus 25 months] provide 
a  best  practice  report  on  transmission  and  distribution  tariff  methodologies  while 
taking account of national specificities. That best practice report shall address at least 
the following: 

(a) 

the ratio of tariffs applied to producers and tariffs applied to final customers; 

(b) 

the costs to be recovered by tariffs; 

(c) 

time-differentiated network tariffs; 

(d) 

locational signals; 

(e) 

the relationship between transmission tariffs and distribution tariffs; 

(f)  methods,  to  be  determined  after  consulting  relevant  stakeholders,  to  ensure 
transparency  in  the  setting  and  structure  of  tariffs,  including  anticipatory 
investment, that are in line with relevant Union and national energy objectives 
and taking into account the acceleration areas as established in accordance with 
Directive (EU) 2018/2001; 

(g)  groups  of  network  users  subject  to  tariffs  including,  where  applicable,  the 
characteristics  of  those  groups,  forms  of  consumption,  and  any  tariff 
exemptions; 

(h) 

losses in high, medium and low-voltage grids;  

(i) 

incentives  for  efficient  investment  in  networks,  and  for  efficient  use  of  the 
existing  network,  including  resources  providing  flexibility  and  flexible 
connection agreements, and use of non-wire, digital and smart solutions. 

ACER shall update the best practice report at least once every two years. 

9.  Regulatory authorities shall duly take the best practice report into consideration when 
fixing or approving transmission tariffs and distribution tariffs or their methodologies 
in accordance with Article 59 of Directive (EU) 2019/944.’; 

(2) the following Articles 18a, 18b,18c and 18d are inserted: 

EN 

30 

  EN 

 
 
‘Article 18a 

Smart electricity grid indicators and innovation 

1.  Regulatory authorities shall promote the deployment of non-wire, smart and digital 
solutions,  whenever  such  technologies  and  solutions  efficiently  enhance  the  usable 
capacity,  flexibility  and  reliability  of  electricity  transmission  and  distribution 
networks, via regulatory incentives pursuant to Article 18 as well as by considering 
those  solutions  with  priority  under  the  network  development  plans  pursuant  to 
Articles 32 and 51 of Directive (EU) 2019/944. 

2.  By [first day of the month following 12 months after  the date of  entry into force of 
this  Regulation],  ACER  shall,  in  close  cooperation  with  the  Commission,  the 
ENTSO  for  Electricity,  the  EU  DSO  entity  and  relevant  stakeholders,  issue  a 
recommendation  addressed  to  regulatory  authorities  on  smart  electricity  grid 
indicators  to  measure  the  uptake  and  performance  of  smart  and  innovative  grid 
technologies  and  digital  solutions  in  transmission  and  distribution  networks. 
Transmission  system  operators  and  distribution  system  operators  shall  provide,  or 
ensure  the  provision  of,  the  data  requested  for  that  purpose  to  the  regulatory 
authorities and to ACER. This data shall not include any personal data. 

3.  At least every three years after the publication of ACER’s recommendation referred 
to  in  paragraph  2,  ACER  shall  publish  a  Union-level  progress  report  assessing  the 
development  and  uptake  of  smart  electricity  grid  solutions  and  the  efficient  use  of 
electricity  infrastructure,  based  on  the  indicators  referred  to  in  paragraph  2  of  this 
Article  and  on  national  reports  under  Article  59(l)  of  Directive  (EU)  2019/944. 
ACER’s  report  shall  identify  best  practices  and,  where  appropriate,  recommend 
further measures to the regulatory authorities and the Commission. 

4.  Transmission  system  operators  and  distribution  system  operators  shall  manage  and 
exchange grid data to enable the development, deployment and effective use of smart 
electricity grids in order to ensure the efficient, secure and flexible operation of the 
electricity system. For that purpose, they shall cooperate, including via establishing 
data sharing agreements, to make use of electricity grid data in a harmonised manner. 
They shall do so in compliance with chapter III of Regulation (EU) 2023/2854 of the 
European Parliament and of the Council*. Where electricity grid data falls within the 
scope of Chapter II of Regulation (EU) 2023/2854 of the European Parliament and of 
the Council*, that Chapter shall apply. They shall also develop and operate state-of-
the  arts  digital  data-driven  solutions  to  support  the  monitoring,  optimisation  and 
coordination  of  network  operation,  including  the  integration  of  demand  response, 
renewable  energy  sources  and  non-fossil  flexibility.  Personal  data  shall  be  shared 
only when anonymised data are not sufficient for the objective pursued. 

5.  By [first day of the month following 12 months after the date of  entry into force of 
this  Regulation]  transmission  system  operators  and  distribution  system  operators 
shall, in cooperation with other system operators through a coordinated arrangement 
jointly facilitated by the ENTSO for Electricity and the EU DSO entity, establish a 
voluntary  secure  electricity  grid  data  exchange  framework.  That  framework  shall 
enable  the  lawful,  secure  and  controlled  reuse  of  data  for  research  and  innovation 
public-interest purposes of  developing, testing, integration and deployment of state-
of-the  arts  technologies  supporting  the  efficient  and  safe  grid  operation  and 
optimisation.  In  applying  the  provisions  in  this  paragraph,  the  transmission  system 
operators and distribution system operators shall: 

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(a) 

(b) 

(c) 

ensure compliance with confidentiality and security requirements; 

cooperate  with  relevant  European  stakeholders,  including  research  and 
technology  organisations  and  industrial  solutions  providers  to  consolidate  in 
expertise, data and digital resources;  

allow  the  use  of  the  developed  state-of-the  arts  solutions,  by  all  European 
transmission  and  distribution  system  operators  filing  a  request  via  the 
coordinated arrangement of the ENTSO for Electricity and the EU DSO entity; 

The ENTSO for Electricity and the EU DSO entity shall, in close cooperation with 
those  transmission  system  operators  and  distribution  system  operators  wishing  to 
establish 
the 
the  coordinated  arrangement,  draw  up,  and  communicate 
Commission, the following: 

to 

(a) 

(b) 

(c) 

(d) 

governance,  decision-making  rules  and  rules  of  participation  of  transmission 
system operators and distribution system operators, including those joining at a 
later  stage,  the  allocation  of  roles  and  responsibilities,  intellectual  property 
management  and  the  means  of  accessing  the  developed  state-of-the  arts 
solutions; 

technical  and  operational  measures 
to  comply  with  relevant  energy, 
cybersecurity  and  data  legislation,  in  particular  Regulation  (EU)  2023/2854  , 
Regulation  (EU)  2016/679  and  Regulation  (EU)  2024/1689  of  the  European 
Parliament and of the Council**; 

safety  and cybersecurity measures to  ensure the safe integration of developed 
solutions  within  the  internal  processes  and  operations  of  transmission  and 
distribution system operators; 

technical  and  operational  measures  to  ensure  the  operation,  maintenance  and 
updates  of  the  digital  tools  resulting  from  the  data  exchange  framework 
throughout  their  overall  lifecycles  towards  deployment  and  operational 
integration into the grid;  

(e)  common frameworks for testing, benchmarking and validation of outputs.  

The Commission shall deliver an opinion on the elements communicated pursuant to 
points  (a)  to  (e)  within  six  months  from  the  day  of  the  receipt  of  the  information. 
Where  these  elements  concern  processing  of  personal  data,  the  Commission  shall 
consult the European Data Protection Supervisor. The ENTSO for Electricity, the EU 
DSO entity and the transmission system operators and distribution system operators 
concerned  shall  take  utmost  account  of  that  opinion  when  establishing  and 
implementing the coordinated arrangement. The ENTSO for Electricity and the EU 
DSO  entity  shall  inform  the  Commission  how  that  opinion  has  been  taken  into 
account. 

All transmission system  operators and distribution system operators  engaged in  the 
coordinated  arrangement  shall,  upon  the  adoption  of  implementing  acts  by  the 
Commission  pursuant  to  Article  61(5),  point  (b),  fully  comply  with  the  technical, 
operational,  cybersecurity,  and  transparency  requirements  set  out  therein.  This 
requirement does not affect the voluntary nature of participation. 

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Article 18b 

Smart metering systems 

1.  Member  States  shall  ensure  the  deployment  in  their  territories  of  smart  metering 
systems covering at least 50 % of all final customers by 31 December 2030 and 75 % 
of  all  final  customers  by  31 December  2033.  Where  a  Member  State’s  deployment 
level is below 30 % at the date of entry into force of this Regulation, the deadline for 
the 50 % target shall be 31 December 2031 and the deadline for the 75% target shall 
be 31 December 2034. The functionalities of these smart metering systems shall meet 
the requirements set out in Article 20 of Directive (EU) 2019/944.  

2.  For  the  purposes  of  Directive  (EU)  2019/944,  any  reference  to  a  cost-benefit 
assessment  in  relation  to  the  deployment  of  smart  metering  systems  shall  be 
understood  as  applying  exclusively  to  deployment  beyond  the  75 %  coverage  level 
referred to in paragraph 1 of this Article.  

Article 18c 

Electricity taxation 

1.  Member  States  shall  promote  the  uptake  of  electricity  as  an  energy  source  by 

adopting a supporting taxation framework. 

2.  Member  States  shall  apply  a  tax  differential  on  the  excise  duties  regulated  under 
Council  Directive  2003/96/EC***  between  electricity  and  natural  gas,  such  that 
electricity is taxed at a rate that is not higher than the rate applied to natural gas, in 
accordance with the principle set forth in paragraph 1. The Commission may, upon a 
duly justified request from a Member State, based on specific national circumstances, 
including in view of the fiscal situation of the Member State, authorise that Member 
State,  by  means  of  an  implementing  act,   to  defer  the  application  of  the  first 
subparagraph  until  a  point  in  time  which  strikes  a  balance  between  the  specific 
national  circumstances  concerned  and  the  need  to  reach  the  Union’s  electrification 
objectives. 

3.  Electricity supplied to energy intensive businesses as defined in Article 17)1), point 
(a), of Directive 2003/96/EC shall be deemed to meet the requirements in paragraph 
4 of that Article. 

* Regulation (EU) 2023/2854 of the European Parliament and of the Council of 13 
December 2023 on harmonised rules on fair access to and use of data and amending 
Regulation  (EU)  2017/2394  and  Directive  (EU)  2020/1828  (OJ  L,  2023/2854, 
22.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2854/oj). 

** Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 
June  2024  laying  down  harmonised  rules  on  artificial  intelligence  and  amending 
Regulations  (EC)  No  300/2008,  (EU)  No  167/2013,  (EU)  No  168/2013,  (EU) 
2018/858,  (EU)  2018/1139  and  (EU)  2019/2144  and  Directives  2014/90/EU,  (EU) 
(OJ  L,  2024/1689,  12.7.2024,  ELI: 
2016/797 
http://data.europa.eu/eli/reg/2024/1689/oj). 

(EU)  2020/1828 

and 

***Council Directive 2003/96/EC of 27 October 2003 restructuring the Community 
framework for the taxation of energy products and electricity (OJ L 283, 31.10.2003, 
p. 51, ELI: http://data.europa.eu/eli/dir/2003/96/oj.’; 

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Article 18d 

Grid connection measures in case of network congestion 

1.  In  order  to  provide  market  participants  with  access  to  the  transmission  and 
distribution  networks  pursuant  to  Article  3,  point  (q),  in  case  of  scarcity  in  the 
available  grid  capacity,  regulatory  authorities  may  approve  measures  to  deter 
speculative requests for connection to the grid, ensure sufficient maturity of projects 
requesting  grid  connection  and  prioritise  categories  of  system  users  such  as  public 
sector,  social  services,  energy  communities,  households,  small  and  medium 
enterprises,  data  centres,  energy  intensive  industries  or  market  participants  in  the 
transport sector as well as set conditions to allow prioritising users within a specific 
category  as  necessary,  based  on  objective,  transparent  and  non-discriminatory 
criteria.  These  criteria  may  consider  the  impact  of  potential  projects  on  solving 
network congestion as well as economic, environmental and social benefits. 

2.  Member States and regulatory authorities shall ensure that other relevant measures to 
address  insufficient grid  capacity are applied, including use of non-wire,  smart  and 
digital solutions pursuant to Article 18a, flexible connection agreements pursuant to 
Article  6a  of  Directive  (EU)  2019/944,  and  cross-sectorial  network  planning  with 
involvement  of  stakeholders  pursuant  to  Article  55  of  Regulation  (EU)  2024/1788 
and Article 51 of Directive (EU) 2019/944.’; 

(3) Article 61 is amended as follows: 

(a) the following paragraphs 5a and 5b are added: 

‘5a.   The  Commission  is  empowered  to  adopt  delegated  acts  in  accordance  with  Article  68 
supplementing  this  Regulation  by  setting  out  guidelines  on  a  common  structure  and 
harmonised methodology on tariffs pursuant to Article 18. Prior to the adoption of such 
acts, or any amendment thereof, ACER shall, upon request of the Commission issue a 
recommendation as referred to in Article 2, point (c), of Regulation (EU) 2019/942 for a 
common  structure  and  harmonised  methodology  on  tariffs.  Those  guidelines  shall  set 
out the rules on harmonised tariff structures for electricity, including detailed conditions 
under which regulatory authorities may introduce separate network charge regimes for 
specific categories of system users as referred to in Article 18(3) and harmonised rules 
on the procedural and substantive requirements for the public consultations referred to 
in Article 18(6). 

The Commission is empowered to adopt implementing acts setting out, for the purpose 
of Article 18a, smart electricity grid indicators to measure the uptake and performance 
of  smart  and  innovative  grid  technologies  and  digital  solutions  in  transmission  and 
distribution networks. The Commission shall consider ACER’s recommendation issued 
pursuant  to  Article  18a(2),  when  preparing,  amending  or  adopting  such  implementing 
acts. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 67(2).’ 

5b.  The  Commission  is  empowered  to  adopt  implementing  acts  setting  out  detailed 
requirements to enable the lawful, secure and controlled reuse of data for research and 
innovation  -interest  purposes  of  public  interest,  supporting  the  operation  and 
optimisation of the electricity system pursuant to Article 18a. These requirements shall: 

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(a)  specify and update technical data models, formats, ontologies, interfaces, and data 

interoperability;    

(b)  specify  conditions  of  transparent  and  accountable  operations  of  secure  processing 
environments enabling data exchange for  innovation purposes and requirements for 
publishing  of  periodic  activity  reports,  including  the  use  cases  supported  and  any 
identified barriers to data sharing; 

(c)  specify liability, cybersecurity, risk mitigation and incident reporting requirements, 
in  accordance  with  existing  Union  legislation,  in  particular  Regulation  (EU) 
2024/1689. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 67(2). The Commission may request data, information 
and  documentation  generated  or  exchanged  within  the  coordinated  arrangement 
established in accordance with Article 18a(5) to the extent necessary and proportionate 
to prepare those implementing acts.’ 

Article 2 

Entry into force 

This Regulation shall enter into force on the [xxx] 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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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT - AGENCIES 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL ....................................................................... 3 

Title of the proposal ..................................................................................................... 3 

Policy area concerned .................................................................................................. 3 

Objectives ..................................................................................................................... 3 

1.3.1.  General objectives ........................................................................................................ 3 

1.3.2.  Specific objectives ....................................................................................................... 4 

1.3.3.  Expected results and impact ......................................................................................... 6 

1.3.4. 

Indicators of performance ............................................................................................ 8 

1.4. 

1.5. 

The proposal relates to: ................................................................................................ 8 

Grounds for the proposal .............................................................................................. 8 

1.5.1.  Requirements to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 8 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action that is additional to the value that would have been otherwise created 
by Member States alone. ............................................................................................ 10 

1.5.3.  Lessons learned from similar experiences in the past ................................................ 10 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ..................................................................................... 11 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment .............................................................................................................. 11 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal and of its financial impact .................................................. 12 

Method(s) of budget implementation planned ........................................................... 12 

MANAGEMENT MEASURES................................................................................. 13 

Monitoring and reporting rules .................................................................................. 13 

Management and control systems .............................................................................. 13 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed ................ 13 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them.......................................................................................................... 13 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 
the control costs and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ......................................... 14 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities .............................................................. 14 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL .................................. 16 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 16 

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3.2. 

Estimated financial impact of the proposal on appropriations ................................... 17 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 20 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 21 

3.2.4.  Estimated requirements of human resources.............................................................. 21 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 25 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 26 

3.2.7.  Third-party contributions ........................................................................................... 26 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

Digital dimensions ..................................................................................................... 30 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 32 

Digital solutions ......................................................................................................... 36 

Interoperability assessment ........................................................................................ 40 

Measures to support digital implementation .............................................................. 41 

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1. 

FRAMEWORK OF THE PROPOSAL  

1.1. 

Title of the proposal 

Legislative  proposal  on  amending  Regulation  (EU)  2019/943  to  future-proof 
electricity bills in the European Union 

1.2. 

Policy area concerned  

Policy area: Energy 

Activity: Action Plan for Affordable Energy 

1.3. 

Objectives 

1.3.1.  General objectives 

The  main  aim  of  the  legal  proposal  in  the  area  of  network  charges  is  to  make  the 
transition  towards  a  more  system-friendly  network  charge  design  and  network 
operation mandatory for national regulatory authorities, while supporting the broader 
Union objective of  accelerating  electrification and ensuring that  the  regulatory cost 
structure  of  electricity  consumption  is  aligned  with  EU  energy,  climate  and 
competitiveness objectives. 

This  would  include  stronger  incentives  for  system  operators  to  increase  cost-
effectiveness  as  well  as  to  enable  timely  grid  access,  incentives  for  grid  users  to 
adapt  their  consumption  behaviour,  enhanced  transparency  and  an  obligation  on 
regulatory authorities to set performance indicators in order to increase efficiency in 
the  use  of  the  grid  and  increase  system  efficiency.  All  these  proposals  should  help 
ensure that network charges reflect the true costs imposed on the system and support 
further an efficient use of the grid. In parallel, the proposal seeks to ensure that the 
combined effect of network charges and electricity taxation supports electrification, 
contributes to lower electricity costs for consumers and industry, and strengthens the 
competitiveness of the Union economy. 

The legal proposal introduces targeted supporting measures to accelerate smart meter 
deployment, require system operators to exchange grid data for smart grid purposes, 
and establish a voluntary EU-level framework for the secure reuse of electricity data 
to  develop  and  test  innovative  digital  tools  for  grid  optimisation  —  all  aimed  at 
improving  the  productivity  of  existing  grid  infrastructure  and  reducing  overall 
system costs. These measures are complemented by targeted principles on electricity 
taxation, aimed at ensuring that taxation frameworks do not discourage electrification 
and  that  electricity  is  taxed  more  favourably  than  competing  fossil  fuels,  notably 
natural  gas,  in  line  with  the  objectives  of  AccelerateEU,  the  Affordable  Energy 
Action Plan and the Union’s decarbonisation objectives. 

The proposal also seeks to contribute to reducing final electricity costs for consumers 
and  energy-intensive  industries  by  enabling  a  more  coherent  interaction  between 
network  charge  design  and  the  incentives  embedded  in  Member  States’  electricity 
taxation frameworks, while fully respecting the competences of Member States under 
Council Directive 2003/96/EC. 

Finally,  the  proposal  provides  a  clarification  concerning  right  of  regulatory 
authorities  to  adopt  grid  connection  measures  in  case  of    network  congestion,  by  a 
way  of  adopting  measures  and  setting  conditions  for  non-discriminatory,  objective 
and  transparent  third-party  access  with  possible  consideration  of  impacts  of  grid 

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connection  requests  on  network  congestion,  economic,  social  or  environmental 
considerations,  and  taking  into  account  their  maturity  and  progress.  Regulatory 
authorities  may  also  adopt  conditions  to  prioritise  economic  sectors  or  group  of 
users, as well as set conditions for treatment of users within the sectors or group of 
users  while  ensuring  that  other  measures  addressing  grid  congestion  are  duly 
implemented. 

For further information see Explanatory Memorandum.  

1.3.2. 

Specific objectives 

The  following  specific  objectives  (SOs)  focus  on  those  which  are  addressed  by 
provisions  which  require  additional  resources  for  the  Commission  (DG  ENER  and 
DG JRC):  

SO1: Improve the efficiency, security and flexibility of electricity system operation 
by  establishing  a  purpose-driven  legal  obligation  for  transmission  and  distribution 
system  operators  to  exchange  grid  data  in  a  harmonised  manner,  enabling  the 
development, deployment and effective use of smart electricity grids and innovative 
data-driven solutions for network monitoring, optimisation and coordination. 

SO2: Enable the development, testing and deployment of innovative digital tools for 
grid operation  and optimisation by requiring grid operators to  establish a  voluntary 
Union-level framework for the secure and controlled reuse of electricity grid data for 
research  and  innovation  purposes,  providing  the  legal  certainty,  framework  and 
common technical requirements. Enable the Commission to adopt implementing acts 
setting out guidelines to enable the lawful, secure and controlled reuse of electricity 
grid data for research and innovation public-interest purposes. 

SO3: Enable the Commission to adopt an implementing act setting out guidelines on 
a  harmonised  methodology  on  tariffs,  thereby  contributing  to  more  coherent 
regulatory approaches across the Union.   

SO4: Enable the Commission to adopt an implementing act on smart grid indicators, 
thereby contributing to more coherent regulatory approaches across the Union. 

SO5:  The  proposal  introduces  a  limited  new  task  for  the  Commission  related  to 
Article 18b on smart metering systems. This task consists essentially in following up 
the implementation by Member States of the minimum deployment requirement for 
smart metering systems and monitoring the application of the clarification that cost-
benefit assessments may only apply beyond the minimum level of coverage. 

SO6:  Proposal  clarifies  rights  of  regulatory  authorities  concerning  adoption  of  grid 
connection measures in case of congestion, to ensure grid connection procedures are 
timely  and  efficient  and  support  electrification.  There  is  no  requirement  for  the 
Commission  or  ACER  in  this  relation,  hence  there  are  no  financial  impacts  on  the 
Commission  or  ACER.  To  this  end,  financial  impacts  on  EU  institutions  are  not 
further assessed as fulfilment of this SO remain fully in hands of national regulatory 
authorities. 

The proposal entails new requirements for the Commission (DG ENER and DG JRC, 
which are linked to the achievement of SO1 and SO2:  

Requirement 1 (linked to SO1 and SO2): To support the grid operators in their data 
exchange activities, the Commission will, on the one hand, develop adequate energy 
data  exchange  provisions  in  the  relevant  instruments  such  as,  for  example,  the 
Demand  Response  Network  Code  (Article  18a(4)),  and,  on  the  other  hand, 

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lifecycle  management  arrangements,  and 

overseeing  the  implementation  of  the  new  framework  for  electricity  grid  data 
exchange for innovation purposes, under which ENTSO for Electricity, the EU DSO 
Entity, and participating TSOs and DSOs are required to establish and communicate 
the governance, participation rules, technical and operational measures, cybersecurity 
safeguards, 
testing  and  validation 
frameworks  of  the  coordinated  arrangement  (Article  18a(5)).  The  Commission  is 
required  to  assess  those  elements,  deliver  an  opinion  within  three  months,  and 
monitor how that opinion has been taken into account.  The JRC provides technical 
and  scientific  support  for  the  development  of  the  voluntary  secure  electricity  data 
exchange framework under Article 18a(5). This includes the provision of guidelines 
on testing and validation approaches, and essential cybersecurity requirements.   

Requirement  2  (linked  to  SO2):  The  Commission  is  empowered  to  adopt 
implementing acts setting out guidelines to enable the lawful, secure and controlled 
reuse  of  electricity  grid  data  for  research  and  innovation  public-interest  purposes 
supporting the operation and optimisation of the electricity system (Article 61(5b)). 
This includes technical and legal preparation, stakeholder consultation, drafting and 
implementation follow-up. The JRC will be involved in providing technical input for 
the  preparation  of  these  implementing  acts  including  on  data  models,  ontologies, 
interfaces, interoperability architectures and technical specifications. 

Requirement 3 (SO3): The Commission is empowered to adopt an implementing act 
setting out guidelines on a harmonised methodology on tariffs pursuant to Article 18. 
This  task  supports  the  development  of  a  more  coherent  and  harmonised  regulatory 
framework across Member States. 

Requirement 4 (SO4): The Commission is empowered to adopt an implementing act 
on smart  grid indicators  pursuant  to  Article 18a.  For that purpose, the Commission 
will  need  to  assess  ACER’s  recommendation  on  smart  grid  indicators,  prepare  and 
manage  stakeholder  consultations  and 
the 
implementing act where appropriate, and support its adoption and subsequent review. 
These tasks support the development of a more coherent and harmonised regulatory 
framework across Member States. 

interservice  coordination,  draft 

Requirement 5 (linked to SO5): The related follow-up task would fall to DG ENER 
only  and  is  expected  to  remain  limited,  given  that  progress  on  smart  metering 
deployment is already covered through existing monitoring exercises. 

The  following  specific  objectives  (SOs)  focus  on  those  which  are  addressed  by 
provisions which require additional resources for ACER: 

SO6:  Promote  the  uptake  of  smart  and  innovative  grid  technologies  and  digital 
solutions  in  transmission  and  distribution  networks  by  establishing  smart  grid 
indicators,  thereby  supporting  the  digitalisation  and  modernisation  of  electricity 
infrastructure. 

SO7:  Strengthen  Union-level  monitoring  of  the  development  and  uptake  of  smart 
grid solutions and the efficient use of electricity infrastructure by publishing regular 
progress  reports,  thereby  improving  regulatory  oversight  and  evidence-based 
decision-making. 

SO8: Further strengthen the objective of increasing efficiency in the use of the grid 
and  increase  system  efficiency,  through  assisting  regulatory  authorities  in  setting 
performance  indicators  as  regards  the  efficient  operation  and  development  of  the 
network. 

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SO9: Further strengthen the objective of increasing efficiency in the use of the grid 
and increase system efficiency, through carrying out efficiency comparisons among 
transmission system operators.  

S10:  Contributing  to  the  objective  of  achieving  harmonisation  in  tariff-setting 
methodologies, through developing a recommendation addressed to the Commission 
on  a  proposal  for  a  harmonised  methodology  on  tariffs,  prior  to  the  Commission 
adopting an implementing act on the topic.   

The  proposal  entails  new  requirements  for  ACER,  which  are  linked  to  the 
achievement of SO6, SO7, SO8, SO8 and S10: 

Requirement  6  (linked  to  SO6):  ACER  is  required,  in  close  cooperation  with  the 
ENTSO  for  Electricity,  the  EU  DSO  Entity  and  relevant  stakeholders,  to  issue  a 
recommendation  addressed  to  regulatory  authorities  on  smart  grid  indicators  to 
measure the uptake of smart and innovative grid technologies and digital solutions in 
transmission and distribution networks (Article 18a(2)). 

Requirement 7 (linked to SO7): ACER is required to publish a Union-level progress 
report assessing the development and uptake of smart grid solutions and the efficient 
use of electricity infrastructure (Article 18a(3)). This report is to be published at least 
every  three  years  following  the  publication  of  ACER’s  recommendation  on  smart 
grid indicators. 

Requirement 8 (linked to SO8): ACER is tasked with assisting regulatory authorities 
in determining performance indicators (Article 18(7)). 

Requirement  9  (linked  to  SO9):  ACER  is  tasked  with  publishing  a  report  on  the 
efficiency  comparison  among  transmission  system  operators  and  their  costs,  by  the 
first day of the month following 12 months after the date of entry into force of the 
Regulation and every four years thereafter (Article 18(7)). 

Requirement  10  (linked  to  S10):  ACER  is  tasked  with  issuing  a  recommendation 
addressed to the Commission on a proposal for a harmonised methodology on tariffs 
(Article 61(5a)). 

1.3.3.  Expected results and impact 

The  resources  will  allow  the  Commission  (DG  ENER  and  DG  JRC)  and  ACER  to 
carry out the tasks necessary to fulfil their mandate under EU legislation as per the 
requirements under this proposal.  

The proposal is expected to strengthen the cost-efficient, secure and digital operation 
of the electricity system by improving the regulatory framework for smart electricity 
grids,  electricity  grid  data  exchange  and  smart  metering  systems.  The  resources 
linked to the proposal are intended to ensure effective implementation of these new 
elements and to deliver tangible benefits for regulatory authorities, system operators, 
market participants and electricity users.   

The Commission (DG ENER and JRC) 

Requirement  1  and  2:  Tasking  the  Commission  with  responsibilities  related  to  the 
implementation  of  the  provisions  on  electricity  grid  data  exchange  is  expected  to 
deliver  a  more  coherent  Union-wide  framework  for  the  uptake  of  smart  and  digital 
grid  solutions.  This  should  support  more  consistent  monitoring  of  progress  across 
Member  States,  better  identification  of  best  practices,  and  a  stronger  basis  for 
regulatory  incentives  encouraging  efficient  grid  operation  and  development.  In 

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particular  it  is  expected  to  facilitate  the  development,  testing  and  scaling  of 
innovative digital and AI-based solutions for grid operation and optimisation, thereby 
improving  grid  observability,  system  efficiency  and  the  integration  of  renewable 
energy sources, demand response and non-fossil flexibility. 

Requirement  3:  Tasking  the  Commission  with  the  preparation  and  adoption  of  an 
implementing  act  on  harmonised  methodology  on  tariffs  to  support  a  more 
harmonised and predictable framework for national regulatory implementation. This 
should  reduce  fragmentation  in  national  approaches,  improve  legal  certainty  for 
regulatory  authorities  and  system  operators,  and  strengthen  the  effectiveness  of  the 
broader reform in lowering system costs.  

Requirement  4:  Tasking  the  Commission  with  the  preparation  and  adoption  of  an 
implementing act on smart grid indicators is expected to support a more harmonised 
and  predictable  framework  for  national  regulatory  implementation.  This  should 
reduce fragmentation in  national  approaches, improve legal  certainty for regulatory 
authorities  and  system  operators,  and  strengthen  the  effectiveness  of  the  broader 
reform  in  lowering  system  costs.  In  addition,  common  implementing  rules  on  grid 
data  reuse  are  expected  to  support  secure  and  interoperable  innovation  across  the 
Union, to the benefit of electricity system operators and users. 

Requirement  5:  Tasking  the  Commission  (DG  ENER)  with  following  up  the 
implementation  of  Article 18b  on  smart  metering  systems  is  expected  to  support  a 
more  consistent  application  of  the  minimum  deployment  requirement  for  smart 
metering  systems  across  Member  States.  This  includes  monitoring  Member  States’ 
compliance  with  the  minimum  level  of  deployment  and  the  application  of  the 
clarification  that  cost-benefit  assessments  may  only  apply  beyond  that  minimum 
level  of  coverage.  This  should  contribute  to  greater  legal  certainty,  improve  the 
rollout  of  smart  metering  systems,  and  support  a  more  effective  and  harmonised 
framework  for  consumer  participation  and  system  efficiency,  to  the  benefit  of 
consumers, system operators and regulatory authorities. 

ACER  

Requirement  6:  Entrusting  ACER  with  the  development  of  a  recommendation  on 
smart grid indicators is expected to promote a more coherent approach to measuring 
digitalisation  and  innovation  in  electricity  networks  across  the  Union.  This  should 
improve  the  monitoring  of  progress,  support  the  wider  deployment  of  smart  and 
innovative grid technologies and digital solutions, and contribute to a more efficient 
and  modern  use  of  electricity  infrastructure,  to  the  benefit  of  transmission  and 
distribution system operators, regulatory authorities and network users. 

Requirement  7:  Tasking  ACER  with  reporting  on  progress  in  the  development  and 
uptake  of  smart  grid  solutions  and  the  efficient  use  of  electricity  infrastructure  is 
expected  to  strengthen  Union-level  monitoring  of  smart  grid  deployment  and 
infrastructure  efficiency.  This  should  support  better-informed  regulatory  oversight 
and contribute to a more efficient and modern use of electricity infrastructure, to the 
benefit of transmission and distribution system operators, regulatory authorities and 
network users. 

Requirement  8:  Tasking  ACER  with  assisting  regulatory  authorities  in  determining 
performance  indicators  is  expected  to  improve  the  transparency,  consistency  and 
evidence base of regulatory oversight across the Union. This should support better-
informed  regulatory  decisions  and  strengthen  incentives  for  efficient  network 

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operation  and  investment,  to  the  benefit  of  regulatory  authorities,  system  operators 
and electricity users. 

Requirement  9:  Tasking  ACER  with  carrying  out  and  publishing  an  efficiency 
comparison among transmission system operators and their costs is expected to help 
identify good practices and inefficiencies across transmission system operators. This 
should  strengthen  benchmarking  across  the  Union  and  support  more  efficient 
network operation and investment decisions, to the benefit of regulatory authorities, 
system operators and electricity users. 

Requirement 10: Tasking ACER with issuing a recommendation to the Commission 
on a proposal for a harmonised methodology on tariffs is expected to support greater 
consistency  and  predictability  in  tariff-setting  approaches  across  Member  States. 
This  should  contribute  to  a  more  harmonised  regulatory  framework,  reduce 
fragmentation in national approaches, and support a clearer and more coherent basis 
for  network  tariff  design,  to  the  benefit  of  regulatory  authorities,  system  operators 
and market participants. 

1.3.4. 

Indicators of performance 

Please  see  Explanatory  Memorandum  as  regards  monitoring  progress  and 
achievements of the initiative. 

1.4. 

The proposal relates to:  

 a new action  
 a new action following a pilot project / preparatory action1  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal  

1.5.1.  Requirements  to  be  met  in  the  short  or  long  term  including  a  detailed  timeline  for 

roll-out of the implementation of the initiative 

The Commission (DG ENER and DG JRC) 

Requirement  1:  DG  ENER  is  tasked  with  overseeing  the  implementation  of  the 
electricity  grid  data  exchange  framework  for  innovation  purposes,  including 
coordinating the overall implementation process with ACER, ENTSO for Electricity, 
the  EU  DSO  Entity,  TSOs,  DSOs,  Member  States  and  other  relevant  stakeholders, 
and  ensuring  coherence  with  the  broader  Union  framework  (Article  18a(5)).  In 
addition, the Commission is required to receive, assess and follow up on the elements 
communicated by ENTSO for Electricity, the EU DSO Entity and participating TSOs 
and  DSOs  concerning  governance,  participation  rules,  technical  and  operational 
measures,  cybersecurity  safeguards, lifecycle arrangements and testing frameworks, 
deliver  a  Commission  opinion  within  three  months,  and  monitor  how  that  opinion 
has been taken into account. Dedicated resources would in particular support overall 
coordination of the implementation process with ACER, ENTSO for Electricity, the 
EU  DSO  Entity,  system  operators,  Member  States  and  other  stakeholders; 
preparation of the Commission opinion under Article 18a(5); policy and legal follow-
up,  including  on  ACER  recommendations  and  data  governance,  cybersecurity,  AI 

1 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

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and  critical  infrastructure  issues;  and  stakeholder  engagement,  monitoring  and 
possible future updates of the implementing framework. 

The  JRC  provides  technical  and  scientific  advice  for  the  development  of  the 
voluntary  secure  electricity  data  exchange  framework  under  Article  18a(5).  This 
includes  the  provision  of  guidelines  on  testing  and  validation  approaches,  and 
essential cybersecurity requirements. Where appropriate JRC could contribute to the 
formulation of timely, policy relevant  use cases  related to  electricity grid planning, 
operation  and  optimisation.  The  JRC  would  also  provide  technical  input  for  the 
implementing  acts  under  Article  61.5b,  supporting  the  technical  assessment  of  the 
voluntary secure electricity grid data exchange framework under Article 18a(5).  

Requirement  2:  The  Commission  is  empowered  to  adopt  implementing acts  setting 
out  guidelines  to  enable  the  lawful,  secure  and  controlled  reuse  of  electricity  grid 
data  for  research  and  innovation  public-interest  purposes  supporting  the  operation 
and  optimisation  of  the  electricity  system  pursuant  to  Article  18a  (Article  61(5b)). 
This includes technical and legal preparation, stakeholder consultation, drafting and 
implementation follow-up. This task requires a combined effort from DG ENER and 
the  JRC,  the  latter  in  providing  technical  input  for  the  preparation  of  these 
implementing  acts  including  on  data  models,  ontologies,  interfaces,  interoperability 
architectures and technical specifications. These resources would cover in particular 
preparing,  drafting  and  steering  the  adoption  of  implementing  acts  under  Article 
61.5a and 5b, including interservice consultation and consultation of Member States 
under the relevant comitology procedure.  

Requirement  3:  The  Commission  may  adopt  an  implementing  act  setting  out 
guidelines  on  a  harmonised  methodology  on  tariffs  pursuant  to  Article  18  (Article 
61(5a)).  This  task  requires  analytical,  regulatory  and  coordination  capacity  within 
DG  ENER.  These  required  resources  would  cover  in  particular  policy  and  legal 
follow-up. 

Requirement  4:  The  Commission  may  adopt  an  implementing  act  on  smart  grid 
indicators  pursuant  to  Article  18a  (Article  61(5a)).  This  task  requires  analytical, 
regulatory  and  coordination  capacity  within  DG  ENER.  These  required  resources 
would cover in particular policy and legal follow-up. 

Requirement  5:  No  separate  human  resources  are  considered  necessary  for  DG 
ENER in relation to Article 18b, given that progress on smart metering deployment 
is already covered through existing monitoring exercises. 

ACER 

Requirement  6:  ACER  is  required,  in  close  cooperation  with  transmission  and 
distribution  system  operators  and  relevant  stakeholders,  to  issue  a  recommendation 
addressed to regulatory authorities on smart grid indicators to measure the uptake of 
smart  and  innovative  grid  technologies  and  digital  solutions  in  transmission  and 
distribution networks (Article 18a(2)). This  recommendation is  to  be issued by one 
year after the entry into force of the Regulation and constitutes a one-off task.  

Requirement 7: ACER is required to publish a Union-level progress report assessing 
the development and uptake of smart grid solutions and the efficient use of electricity 
infrastructure  (Article  18a(3)).  This  report  is  to  be  published  at  least  every  three 
years following the publication of ACER’s recommendation on smart grid indicators 
and constitutes a recurring task.  

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For Requirements 6 and 7 combined ACER thus requires additional staff to lead and 
conduct the expert work including initial recommendation and regular monitoring on 
both TSOs and DSOs, as well as to assist on data collection and other clerical tasks 
inherent to this activity.  

Requirement 8: ACER is tasked with assisting regulatory authorities in determining 
performance indicators (Article 18(7)).  

Requirement 9: ACER is tasked with publishing a report with efficiency comparison 
among  transmission  system  operators  and  their  costs,  by  first  day  of  the  month 
following  12 months  after the date of entry into force of this Regulation and every 
four years thereafter (Article 18(7)).  

Requirement  10:  ACER  is  tasked  with  issuing  a  recommendation  addressed  to  the 
Commission on a proposal for a harmonised methodology on tariffs (Article 61(5a)). 

For  Requirements  8,  9  and  10,  ACER  requires  additional  staff  resources  for 
horizontal  support  and  overhead,  as  well  as  an  operational  budget  for  specialised 
consultancy and developments.  

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

An  EU-level  framework  for  energy  costs,  including  network  charges,  is  more 
effective  than  separate  national  measures  because  it  avoids  fragmentation.  Member 
States  alone  cannot  achieve  the  necessary  reforms  within  the  limits  of  the  existing 
EU  framework  under  the  Electricity  Regulation.  A  common  legal  and  policy 
framework also enables more ambitious and cost-effective action. 

The  proposal  establishes  a  coherent  EU  approach  for  non-wire,  smart,  and  digital 
solutions across electricity systems, including minimum smart metering deployment, 
stronger consumer participation,  ACER-led smart grid indicators,  and interoperable 
grid data exchange. 

The proposed measures are proportionate because they introduce only the measures 
necessary  to  improve  grid  efficiency,  transparency,  and  electrification  incentives 
without imposing a uniform technological model or excessive administrative burden. 
Since the initiative mainly adds and adjusts provisions in existing EU legislation, an 
amending act is the appropriate legal instrument.  

1.5.3.  Lessons learned from similar experiences in the past 

Experience from the implementation of the existing electricity market framework has 
shown  that  increasing  electrification,  the  rapid  deployment  of  renewables  and  the 
growing  digitalisation  of  the  electricity  system  require  a  more  system-oriented  and 
efficient  approach  to  the  operation  and  use  of  electricity  networks.  Existing 
regulatory  frameworks  have  not  always  provided  sufficiently  strong  incentives  for 
efficient  grid  use,  flexibility,  timely  grid  access  or  the  deployment  of  smart  and 
digital solutions. 

Recent  policy  initiatives,  including  the  Action  Plan  for  Affordable  Energy,  the 
European  Grids  Package  and  AccelerateEU,  also  highlighted  the  need  for  a  more 
coherent  approach  to  the  regulatory  components  contributing  to  electricity  costs, 

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including  network  charges  and  taxation,  in  order  to  support  electrification, 
affordability and competitiveness objectives.  

Previous experience with the implementation of Union electricity market legislation 
has  furthermore  shown  that  increasingly  technical  and  data-intensive  regulatory 
frameworks require adequate technical, regulatory and monitoring capacity at Union 
level, including within ACER and the Commission. 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The  proposal  aligns  with  the  objectives  detailed  in  AccelerateEU  and  the  Clean 
Industrial Deal.  

The  proposal’s  objectives  to  protect  consumers,  improve  competitiveness  of  EU 
industry and boost renewables and low carbon investment are also wholly consistent 
with  the  framework  of  the  European  Green  Deal,  the  Clean  Industrial  Deal  and 
coherent and complementary to current initiatives. It responds to the issues that were 
identified  in  the  Commission’s  Action  Plan  for  Affordable  Energy  in  February 
2025, namely  that  high  energy  costs  put  at  risk  the  competitiveness  of  European 
companies  and  represent  a  significant  burden  for  consumers.  It  is  therefore 
imperative  to  ensure  an  efficient  use  of  the  energy  system,  supported  by  an 
appropriate structure of taxes, will play an important role to enable electricity users 
to benefit from more predictable and lower energy costs.   

The  proposed  initiative  is  strongly  linked  and  complementary  to  the  legislative 
proposals brought forward in the Grids Package, which is a key deliverable under the 
Clean Industrial  Deal  and the Action Plan for Affordable Energy, being  part of the 
2025 Commission Work Program.  

The  Commission  proposal  for  the  new  Multiannual  Financial  Framework  (MFF) 
2028-2034  highlights  “the  vital  importance  of  a  genuine  Energy  Union  and  well 
integrated EU infrastructure networks”, which is reflected in a substantially increased 
budget proposed for the Connecting Europe Facility (CEF) for Energy.  

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

The  FTE  are  needed  for  additional  tasks  being  performed  by  ACER  while  existing 
tasks will not decrease in the foreseeable future.  

As  far  as  legally  possible,  additional  FTEs  requested  for  ACER  will  be  financed 
from  a  relevant  programme  envelope  under  the  same  MFF  heading,  subject  to  the 
agreement on the MFF 2028-2034.  

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1.6. 

Duration of the proposal and of its financial impact 

 limited duration  

 in effect from [DD/MM]YYYY to [DD/MM]YYYY  

 financial impact from YYYY to YYYY for commitment appropriations and from 
YYYY to YYYY for payment appropriations.  

 unlimited duration 

Implementation with a start-up period from YYYY to YYYY, 

followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned  

 Direct management by the Commission 

 by its departments, including by its staff in the Union delegations;  

 by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

 third countries or the bodies they have designated 

 international organisations and their agencies (to be specified) 

 the European Investment Bank and the European Investment Fund 

 bodies referred to in Articles 70 and 71 of the Financial Regulation 

 public law bodies 

 bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

 bodies governed by the private law of a Member State that are entrusted with 
the implementation  of a  public-private partnership and that are provided  with 
adequate financial guarantees 

 bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

 bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees, to the extent that such bodies are controlled by public law bodies or 
by  bodies  governed  by  private  law  with  a  public  service  mission,  and  are 
provided  with  adequate  financial  guarantees  in  the  form  of  joint  and  several 
liability by the controlling bodies or equivalent financial guarantees and which 
may be, for each action, limited to the maximum amount of the Union support. 

Comments  

N.A. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

According  to  its  financial  regulation,  ACER  has  to  provide,  in  the  context  of  its 
Programming Document, an annual Work Programme including details on resources, 
both financial and human, per each of the activities carried out.  

ACER reports monthly to DG ENER on budget execution, including commitments, 
and payments by budget title, and vacancy rates by type of staff.  

In  addition,  DG  ENER  is  directly  represented  in  the  governance  bodies  of  ACER. 
Through its representatives in the Administrative Board, DG ENER will be informed 
of the use of the budget and the establishment plan at each of its meetings during the 
year.  

Finally, also in line with financial rules, ACER is subject to annual requirements for 
reporting on activities and the use of resources through the Administrative Board and 
its Annual Activity Report.  

The tasks directly implemented by DG ENER, where appropriate with support from 
the JRC, will follow the annual cycle of planning and monitoring, as implemented in 
the Commission and the executive  agencies, including reporting the results through 
the Annual Activity Report of DG ENER and the JRC. 

2.2.  Management and control systems 

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

Regarding requirements falling within the scope of the Commission, these tasks will 
be carried out primarily by DG ENER, with scientific and technical support from the 
JRC. Subject to implementation needs, some supporting activities may be carried out 
through public procurement, including expert studies, technical support, workshops, 
prototyping  or  validation  exercises.  In  such  cases,  procurement  would  be 
implemented  under  direct  management  in  full  compliance  with  the  Financial 
Regulation.  The  control  strategy  for 
the 
Commission’s standard ex ante and ex post legal, financial and operational controls. 

these  expenditures  would  follow 

Regarding requirements falling within the scope of ACER, the Agency is best placed 
to carry out the tasks related to the preparation of recommendations and Union-level 
progress  reports  on  smart  grid  indicators.  While  ACER  will  have  to  develop  new 
expertise,  it  is  nevertheless  most  cost-effective  to  allocate  the  new  tasks  under  this 
proposal to an existing agency which already works on similar tasks.  

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

DG Energy  

The  elements  directly  managed  by  DG  Energy  may  be  subject  to  the  usual  risks 
affecting  public  procurement  procedures.  These  risks  are  considered  low  level  as 
regards legality and regularity of the expenditure. Appropriate and effective controls 
are  in  place  at  corporate  and  DG  level.  Concerning  performance,  the  main  risk  are 
wrong  estimates  as  regards  the  workload  created  by  this  proposal,  given  that  it 
introduces new tasks. This risk needs to be accepted, since, as experience has shown, 

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if  additional  resources  needs  are  not  included  in  the  initial  proposal,  it  is  very 
difficult to remedy this situation later on.  

DG JRC  

As part of the risk assessment process for its scientific activities, the JRC identifies 
potential  risks,  evaluates  their  level  and  plans  necessary  mitigating  actions  and 
identifies existing controls. The key risk identified refers to a) the estimation of the 
related workload for the new tasks associated to this proposal (the workload for some 
of the tasks might be underestimated); b) insufficient quantity or quality of the data 
to  support  the  various  new  tasks.  For  a)  the  risk  needs  to  be  accepted;  mitigation 
measures  include  careful  staff  planning  throughout  the  duration  of  the  activities  to 
ensure  appropriate  expertise.  For  b)  the  actions  include  an  early  participation  in 
designing and framing the data  collection processes, as well as early identification, 
within  each  task  requiring  data  intense  activities,  of  the  potential  barriers  to  get 
access to the data of interest and early communication with DG ENER and relevant 
stakeholders to raise the issue of data availability.  

ACER  

As  regards  new  tasks  for  ACER,  the  proposal  includes  several  new  tasks  which 
mitigates  this  risk,  since  while  the  workload  of  some  future  tasks  may  be 
underestimated,  others  may  be  overestimated,  providing  scope  for  possible  future 
redeployment. 

2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure)  

DG Energy and DG JRC  

The  tasks  assigned  for  DG  Energy  will  be  implemented  following  already  existing 
control system and the cost of control ratio is expected to remain stable (5 to 6% of 
the funds managed based on recent exercises).  

ACER  

The allocation of additional tasks for the existing mandate of ACER is not expected 
to generate specific additional controls at Agency level, therefore, the ratio of control 
costs over value of funds managed will remain unaltered for ACER. 

2.3.  Measures to prevent fraud and irregularities  

DG Energy  

DG  Energy  adopted  a  revised  Anti-fraud  Strategy  in  2020  and,  in  2023,  a  revised 
action plan covering the years 2023-2025. DG Energy is is currently revising its AFS 
for  the  years  2026-2028,  in  accordance  with  the  OLAF  methodology.  The  Energy 
AFS  are  based  on  the  Commission  Antifraud  Strategy  and  on  a  specific  risk 
assessment carried out  internally to  identify the  areas most vulnerable to fraud, the 
controls already in place and the actions necessary to improve DG Energy’s capacity 
to prevent, detect and correct fraud.  

DG JRC  

The  JRC  Anti-Fraud  Strategy,  along  with  its  accompanying  Action  Plan,  was 
adopted in  2020 and modified in  2024 to revise  and update the plan for  the period 
2025-2027.  The  updated  plan  includes  three  new  actions:  an  awareness-raising 

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campaign  focusing  on  Commission  ethics  issues  and  anti-fraud  measures,  with 
relevant examples tailored for JRC scientific staff, launched in the first half of 2025; 
an  expanded  training  programme  featuring  thematic  sessions  on  topics  such  as 
conflict of interest, authorship, the use of AI, whistleblowing and reporting channels, 
among  others;  updated  Sharepoint  pages  dedicated  to  ethics  issues  and  anti-fraud 
measures.  These  new  actions  complement  the  ongoing  efforts  from  the  2021-2024 
Action  Plan  and  JRC  participation  in  the  Commission  Antifraud  Strategy  Action 
Plan. The JRC values its cooperation with OLAF, the internal control team, and other 
stakeholders in our collective efforts to combat fraud.  

ACER  

ACER  applies  the  anti-fraud  principles  of  decentralised  EU  Agencies,  in  line  with 
the  Commission  approach  and  the  Guidelines  by  OLAF  of  2024  for  decentralised 
agencies and JUs. In December 2024 the Agency adopted a new Anti-Fraud Strategy, 
repealing  Decision  15/2021  of  the  Administrative  Board  of  the  Agency.  The  new 
strategy,  spanning  the  period  2025-2027,  is  based  on  the  following  strategic 
objectives:  optimise  existing  fraud  prevention  measures,  enhance  timeliness  and 
accuracy  of  existing  detection  systems,  strengthen  investigation  protocols,  and 
optimise corrective actions for swift recoveries. 

EN 

15 

  EN 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

• 

Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditur
e 

Contribution  

Heading of 
multiannu
al financial 
framework 

Number  

Diff./Non-
diff.1 

from 
EFTA 
countries
2 

from 
candidate 
countries 
and 
potential 
candidates
3 

From 
other 
third 
countries 

other assigned 
revenue 

1 

02.10.03  European  Union  Agency  for 
the  Cooperation  of  Energy  Regulators 
(ACER) 

Diff. 

YES 

NO 

NO 

NO 

1 
2 
3 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

16 

  EN 

 
 
3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations 

 

The proposal/initiative does not require the use of operational appropriations  

  The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

Heading of multiannual financial  framework  

Number 

1 

DG: JRC 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

TOTAL MFF 
2028-2034 

EUR million (to three decimal places) 

Operational appropriations  

Budget line 

Budget line 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

line  01  01  01  Support 

Appropriations of an administrative nature financed from the envelope of specific programmes  
Budget 
expenditure for Horizon Europe 
TOTAL appropriations 
for DG JRC 

Commitments 

0.000 

Payments 

=1a+1b+3 

=2a+2b+3 

(3) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.255 

0.255 

0.255 

1.782 

1.782 

1.782 

0.255  

0.255 

0.255 

0.000 

0.000 

The appropriations identified as needed under the support line of Horizon Europe (Direct Research) will be redeployed from the envelope of the programme allocated to JRC and do not 
constitute an additional request to the current level of appropriations requested in the context of the Draft Budget 2027. 

ACER 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
MFF 2021-
2027 

TOTAL 
MFF 2028-
2034 

EUR million (to three decimal places) 

EN 

17 

EN 

 
 
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
 
  
  
  
  
 
Budget line: 02.10.03 / EU Budget contribution to the agency 

0.391 

0.391 

10.0391 

The  appropriations  /  EU  budget  contribution  to  the  agency  will  be  compensated  by  a  reduction  of  the  envelope  of  the  following 
programme Connecting Europe Facility - Energy / budget line: 02.03.01 / in the year: 2027 

The amount of appropriations to be allocated to the agency in the next MFF is indicative and subject to the agreement on the  MFF. It 
should  be  integrated  into  the  Agency’s  subsidy  due  to  the  permanent  nature  of  the  tasks  allocated  by  this  proposal  and  will  be 
compensated, if relevant, by an equivalent reduction of a relevant programme envelope under the same MFF heading. If a compensatory 
reduction is needed, the resources allocated to the Agency may also need to be revised through the annual budgetary procedure. 

appropriations  
TOTAL  operational 
(including contribution to decentralised 
agency) 

Commitments 

Payments 

TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

0.000 

0.000 

0.000 

0.391 

0.000 

0.000 

0.000 

0.391 

0.000 

0.000 

0.000 

0.255 

(4) 

(5) 

(6) 

TOTAL appropriations under 
HEADING 1 
of the multiannual financial 
framework 

Commitments 

=4+6 

0.000 

0.000 

0.000 

0.645 

Payments 

=5+6 

0.000 

0.000 

0.000 

0.645 

TOTAL MFF 2021-2027  TOTAL MFF 2028-2034 

0.391 

0.391 

0.255 

0.645 

0.645 

10.039 

10.039 

1.782 

11.821 

11.821 

•  TOTAL  operational  appropriations  (all 
operational headings) 

Commitments 

Payments 

(4) 

(5) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
MFF 2021-
2027 

TOTAL 
MFF 2028-
2034 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.391 

0.391 

0.391 

0.391 

10.039 

10.039 

1 

This figure takes into account the cummulated 2% annual indexation. 

EN 

18 

EN 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
•  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes (all 
operational headings) 

TOTAL appropriations under           

Commitments 

Headings 1 to 6 

of the multiannual financial framework 
(Reference amount) 

Payments 

(6) 

=4+6 

=5+6 

0.000 

0.000 

0.000 

0.255 

0.255 

1.782 

0.000 

0.000 

0.000 

0.645 

0.391 

11.821 

0.000 

0.000 

0.000 

0.645 

0.391 

11.821 

Heading of multiannual financial framework  

7 

‘Administrative expenditure’ 

DG: ENER 

 Human resources  
 Other administrative expenditure  

TOTAL DG ENER 

Year 

Year 

2024 

2025 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2026 

0.000 

0.000 

0.000 

Year 

2027 

TOTAL 
MFF 
2021-2027 
0.404 

0.018 

0.422 

TOTAL 
MFF 2028-
2034 

2.828 
0.126 
2.954 

0.404 

0.018 

0.422 

TOTAL appropriations under HEADING 7 of the multiannual 
financial framework  

(Total 
commitments 
= Total 
payments) 

0.000 

0.000 

0.000 

0.422 

0.422 

2.954 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
MFF 2021-
2027 

TOTAL 
MFF 2028-
2034 

EUR million (to three decimal places) 

TOTAL appropriations under HEADINGS 1 to 7 

Commitments 

0.000 

0.000 

0.000 

1.067 

1.067 

14.775 

of the multiannual financial framework  

Payments 

0.000 

0.000 

0.000 

1.067 

1.067 

14.775 

3.2.2.  Estimated output funded from operational appropriations 

Indicate 

Year  

Year  

Year  

Year  

Enter as many years as necessary to show the 

TOTAL 

Commitment appropriations in EUR million (to three decimal places) 

EN 

19 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
2024 

2025 

2026 

2027 

duration of the impact (see Section 1.6) 

OUTPUTS 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

objectives and 
outputs  

 

Type2 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 13… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

2 
3 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.3.2. ‘Specific objective(s)’  

EN 

20 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3. 

Summary of estimated impact on administrative appropriations 

The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

 
administrative nature  

  The proposal/initiative requires the use of appropriations of an administrative 
nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED APPROPRIATIONS 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
2021 - 
2027 

TOTAL 
MFF 
2028-2034 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.404 

0.018 

0.422 

0.255 

0.000 

0.255 

0.404 

0.018 

0.422 

0.255 

0.000 

0.255 

2.828 

0.126 

2.954 

1.782 

0.000 

1.782 

TOTAL 

0.000 

0.000 

0.000 

0.677 

0.677 

4.736 

In 2027, the appropriations required for human resources and other expenditure of an administrative 
nature  will  be  met  by  appropriations  from  the  DG  that  are  already  assigned  to  management  of  the 
action  and/or  have  been  redeployed  within  the  DG,  together,  if  necessary,  with  any  additional 
allocation which may be granted to the managing DG under the annual allocation procedure and in the 
light of budgetary constraints.  

The  estimated  impact  on  expenditure  and  staffing  for  2028  and  beyond  is  added  for 
illustrative purposes only and does not pre-judge the next Multiannual Financial Framework. 
The  source  of  financing  and  scope  of  Union  financial  commitment  in  the  post-2027  period 
remain  subject  to  the  outcome  of  interinstitutional  negotiations  on  the  MFF  2028-2034  and 
thereafter shall be determined through the annual budgetary procedure. All appropriations and 
staffing allocations as of 2028 are indicative. 

3.2.4.  Estimated requirements of human resources 

 

The proposal/initiative does not require the use of human resources  

  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 
below 

EN 

21 

  EN 

 
 
 
  
 
 
 
3.2.4.1.  Financed from voted budget 

VOTED APPROPRIATIONS 

Estimate to be expressed in full-time equivalent units (FTEs) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

Post 
2027 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (in FTEs) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

Current staff 
available in the 
Commission 
services 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

0 

0 

0.5 

0 

2 

0 

0 

0 

0 

1 

0 

0 

0.5 

0 

2 

0 

0 

0 

0 

1.5 

1.5 

0 

0 

5 

0 

0 

5 

Additional staff* 

To be financed 
under Heading 
7 / Research 

To be financed 
from BA line 

To be financed 
from fees 

N/A 

Establishment  plan 
posts 

1 DG ENER 

0.5 AD DG JRC 

External  staff  (CA, 
SNEs, INT) 

2 CA DG ENER 

1.5 CA DG JRC 

The  estimated  impact  on  expenditure  and  staffing  for  2028  and  beyond  is  added  for 
illustrative purposes only and does not pre-judge the next Multiannual Financial Framework. 
The  source  of  financing  and  scope  of  Union  financial  commitment  in  the  post-2027  period 
remain  subject  to  the  outcome  of  interinstitutional  negotiations  on  the  MFF  2028-2034  and 
thereafter shall be determined through the annual budgetary procedure. All appropriations and 
staffing allocations as of 2028 are indicative. 

EN 

22 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
Description of tasks to be carried out by: 

Officials and temporary staff 

The  implementation  of  the  provisions  on  network  charges,  smart  grid 
indicators, electricity grid data exchange and the reuse of electricity grid 
data for research and innovation purposes introduces a set of new tasks 
for  the  Commission,  which  require  resources  to  ensure  effective  and 
timely  implementation.  These  tasks  are  of  a  cross-cutting  nature, 
combining  energy 
regulation,  digital  policy,  data  governance, 
cybersecurity  and  innovation  support,  and  require  sustained  interaction 
with a wide range of actors at Union and national level.  

DG ENER 

the 

to  ensure 

The allocation of 1 permanent official (AD) FTE within DG ENER is 
long-term  governance,  coordination  and 
required 
regulatory  oversight  of  the  new  framework  established  under  Article 
18a.  This  includes  steering  the  implementation  of  the  electricity  grid 
data  exchange  framework,  ensuring  coherence  with  the  broader  Union 
legal  framework  (including  the  Data  Act,  AI  Act  and  cybersecurity 
legislation),  coordinating  with  ACER,  ENTSO-E,  the  EU  DSO  Entity 
and  Member  States,  and  overseeing  the  follow-up  to  the  Commission 
opinion on the coordinated arrangement. 

These  resources  would  be  related  to  Requirement  1  and  cover  in 
particular: 

Process steering and regulatory coordination 

-  Coordinate 

the  overall 

implementation  process  with 
ACER, ENTSO for Electricity, the EU DSO Entity, TSOs, 
DSOs, Member States and other relevant stakeholders.  

-  Manage  the  preparation  of  a  Commission  opinion  on  the 
coordinated  arrangement  communicated  under  Article 
assessment  of  governance, 
18a(5), 
participation, 
transparency  and 
cybersecurity elements.  

technical,  operational, 

including 

the 

-  Ensure coherence of the initiative with the broader Union 
digitalisation, 

framework 
cybersecurity, data protection, AI and industrial policy. 

electricity  markets, 

on 

Policy and legal follow-up 

-  Assess 

the 

regulatory 

of  ACER 
recommendations  and  progress  reports  on  smart  grid 
indicators.  

implications 

-  Follow  up  on  the  implementation  of  the  voluntary 
electricity  grid  data  exchange  framework,  including  how 
the Commission opinion is taken into account.  

-  Coordinate  with 
particular  on 
cybersecurity, AI, and critical infrastructure.  

related 

issues 

in 
to  data  governance, 

relevant  Commission  services, 

Stakeholder engagement and monitoring 

-  Organise  and  follow  up  meetings,  expert  workshops  and 
targeted  consultations  with  TSOs,  DSOs,  ENTSO-E,  the 
EU DSO Entity, ACER, industry, research actors and other 

EN 

23 

  EN 

 
stakeholders.  

-  Monitor  implementation  progress  and  support  future 
updates of the implementing framework where necessary.  

These tasks are structural and long-term in nature, as they relate to the 
continuous monitoring, evolution and governance of the digitalisation of 
electricity networks at Union level. They go beyond the current scope of 
DG ENER’s activities, which do not include the operational oversight of 
a Union-level framework for grid data exchange and innovation.  

This  would  also  include  limited  implementation  follow-up  related  to 
Article 18b on smart metering systems. 

DG JRC 

internal  redeployment.  Considering 

DG  JRC  has  conducted  a  detailed  assessment  of  the  technical  and 
scientific support required to implement the proposal and has reviewed 
that  some 
the  possibility  of 
synergies exist with ongoing activities in the areas of digitalisation of the 
energy  system  and  cybersecurity,  to  implement  these  additional 
activities, with an effort of 0.5 AD FTE – redeployed from its internal 
resources - which will be dedicated to the support to the development of 
implementing  acts.    This  includes  providing  technical  input  for  the 
preparation of implementing acts under Article 61.5b, including on data 
models,  ontologies, 
interoperability  architectures  and 
technical specifications. 

interfaces, 

External staff 

DG ENER 

2  temporary  Contract  Agent  (CA)  FTEs  are  required  to  support  the 
preparation,  drafting  and  adoption  of  implementing  acts  under  Article 
61 (tariff methodology and smart grid indicators & data reuse) related to 
the following requirements: 

-  Requirement  2:  The  Commission  is  empowered  to  adopt 
implementing  acts  setting  out  guidelines  to  enable  the 
lawful, secure and controlled reuse of electricity grid data 
for  research  and 
innovation  public-interest  purposes 
supporting the operation and optimisation of the electricity 
system  pursuant  to  Article  18a  (Article  61(5b)).  This 
includes  technical  and  legal  preparation,  stakeholder 
consultation, drafting  and  implementation  follow-up. This 
task requires an estimated 0.5 FTE from DG ENER. These 
resources would cover in particular preparing, drafting and 
steering  the  adoption  of  implementing  acts  under  Article 
61.5a  and  5b,  including  interservice  consultation  and 
relevant 
consultation  of  Member  States  under 
comitology procedure.  

the 

-  Requirement  3:  The  Commission  may  adopt  an 
implementing  act  setting  out  guidelines  on  a  harmonised 
methodology  on  tariffs  pursuant  to  Article  18  (Article 
61(5a)). This task requires additional analytical, regulatory 
and coordination capacity within DG ENER, including an 
estimated  1  FTE  for  the  preparation  of  an  implementing 
act.  These  resources  would  cover  in  particular  policy  and 
legal follow-up. 

EN 

24 

  EN 

 
 
-  Requirement  4:  The  Commission  may  adopt  an 
implementing  act  on  smart  grid  indicators  pursuant  to 
Article  18a  (Article  61(5a)).  This  task  requires  nalytical, 
regulatory  and  coordination  capacity  within  DG  ENER, 
including  an  estimated  0.5  FTE  for  the  preparation  of  an 
in 
implementing  act.  These  resources  would  cover 
particular policy and legal follow-up. 

These  activities  are  more  concentrated 
initial  phase  of 
implementation  and  during  periodic  updates  of  the  implementing 
framework. They require significant analytical and coordination capacity 
over  a  defined  period,  but  are  not  expected  to  require  permanent 
reinforcement once the main implementing framework is established.  

the 

in 

internal  redeployment.  Considering 

JRC 
DG  JRC  has  conducted  a  detailed  assessment  of  the  technical  and 
scientific support required to implement the proposal and has reviewed 
the  possibility  of 
that  some 
synergies exist with ongoing activities in the areas of digitalisation of the 
energy  system  and  cybersecurity,  to  implement  these  additional 
activities,  with  an  effort  of  1.5  CA  FTEs,  the  JRC  will  redeploy  its 
internal  resources  to  provide  technical  and  scientific  advice  for  the 
the  voluntary  secure  electricity  data  exchange 
development  of 
framework  under  Article  18a(5).  This  includes  the  provision  of 
guidelines  on 
testing  and  validation  approaches,  and  essential 
cybersecurity requirements.  

Regarding  the  data  exchange  framework,  the  JRC support  would focus 
in particular on: 

-  Support  the  formulation  of  timely,  policy  relevant  use  cases 
and 

electricity  grid  planning,  operation 

to 

related 
optimisation.  

-  Supporting the voluntary secure electricity grid data exchange 
framework through  providing methodologies for independent 
testing,  benchmarking  and  validation  methodologies  for 
innovative  digital  tools  to  be  developed  under  article  18a(5) 
relevant to electricity grid operation and optimisation.  

3.2.5.  Overview of estimated impact on digital technology-related investments 

Compulsory: the best estimate of the digital technology-related investments entailed 
by the proposal/initiative should be included in the table below.  

Exceptionally,  when  required  for  the  implementation  of  the  proposal/initiative,  the 
appropriations under Heading 7 should be presented in the designated line.  

The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure 
on operational programmes”. This expenditure refers to the operational budget to be 
used to re-use/ buy/ develop IT platforms/tools directly linked to the implementation 
of the initiative and their associated investments (e.g. licences, studies, data storage 
etc).  The  information  provided  in  this  table  should  be  consistent  with  details 
presented under Section 4 “Digital dimensions”. 

EN 

25 

  EN 

 
 
TOTAL Digital and IT appropriations 

Year 

Year 

Year 

Year 

2024 

2025 

2026 

2027 

TOTAL 
MFF 
2021 - 
2027 

HEADING 7 

IT expenditure (corporate)  

Subtotal HEADING 7 

Outside HEADING 7 

Policy IT expenditure on operational 
programmes 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.6.  Compatibility with the current multiannual financial framework 

The proposal/initiative: 

can be fully financed through redeployment within the relevant heading of the 

 
multiannual financial framework (MFF) 

requires use of the unallocated margin under the relevant heading of the MFF 

 
and/or use of the special instruments as defined in the MFF Regulation 

 

requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

 

 

does not provide for co-financing by third parties 

provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 2024 

Year 2025 

Year 2026 

Year 2027 

Total 

Specify the co-financing body  

TOTAL appropriations co-
financed  

EN 

26 

  EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.8.  Estimated  human  resources  and  the  use  of  appropriations  required  in  a 
decentralised agency  

Staff requirements (fulll-time equivalent units) 

Agency: ACER 

Year 2024 

Year 2025 

Year 2026 

Year 2027 

MFF 2028-
2034 

Temporary agents (AD Grades) 

Temporary agents (AST grades) 

Temporary agents (AD+AST) 
subtotal 

Contract agents 

Seconded national experts 

Contract agents and seconded 
national experts subtotal 

TOTAL staff 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

2 

2 

0 

2 

2 

2 

Appropriations covered by the EU budget contribution in EUR million (to three decimal places) 

Agency: ACER 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 
2021 - 
2027 

TOTAL 
2028-2034 

Title 1: Staff expenditure 

0.0911 

0.091 

1.379 

Title 2: Infrastructure and operating 
expenditure 

0.000 

Title 3: Operational expenditure 

0.300 

0.300 

8.660 

TOTAL of appropriations 
covered by the EU budget  

0.000 

0.000 

0.000 

0.391 

0.391 

10.0392 

1 

2 

Staff  expenditure  adapted  to  take  into  account  the  assumption  that  recruitment  occurs  in  July. 
As such, only 50% of the average cost is taken into account in 2027. 
This figure includes the accumulated effect of 2% annual indexation. 

EN 

27 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
Overview/summary  of  human  resources  and  appropriations  (in  EUR  million)  required  by  the 
proposal/initiative in a decentralised agency  

Agency: ACER 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 
2021 - 
2027 

TOTAL 
2028-2034 

Temporary agents (AD+AST) 

Contract agents 

Seconded national experts 

Total staff 

Appropriations covered by the EU 
budget 

Appropriations covered by fees  
(if applicable) 

Appropriations co-financed  
(if applicable) 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

2 

0 

2 

0 

2 

0 

2 

0 

2 

0.000 

0.000 

0.000 

0.391 

0.391 

10.039 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL appropriations 

0.000 

0.000 

0.000 

0.391 

0.391 

10.039 

Description of the Tasks to be carried out by ACER: 

Requirement  6:  ACER  is  required,  in  close  cooperation  with  transmission  and  distribution 
system  operators  and  relevant  stakeholders,  to  issue  a  recommendation  addressed  to 
regulatory authorities on smart grid indicators to measure the uptake of smart and innovative 
grid  technologies  and  digital  solutions  in  transmission  and  distribution  networks  (Article 
18a(2)).  This  recommendation  is  to  be  issued  by  one  year  after  the  entry  into  force  of  the 
Regulation and constitutes a one-off task.  

Requirement  7:  ACER  is  required  to  publish  a  Union-level  progress  report  assessing  the 
development  and  uptake  of  smart  grid  solutions  and  the  efficient  use  of  electricity 
infrastructure  (Article  18a(3)).  This  report  is  to  be  published  at  least  every  three  years 
following the publication of ACER’s recommendation on smart grid indicators and constitutes 
a recurring task.  

For  Requirements  6  and  7  combined  ACER  thus  requires  additional  staff  to  lead  and 
conduct  the  expert  work  including  initial  recommendation  and  regular  monitoring  on 
both TSOs and DSOs, as well as to assist on data collection and other clerical tasks inherent 
to this activity.  

Requirement  8:  ACER  is  tasked  with  assisting  regulatory  authorities  in  determining 
performance indicators (Article 18(7)).  

Requirement 9: ACER is tasked with publishing a report with efficiency comparison among 
transmission system operators and their costs, by first day of the month following 12 months 
after  the  date  of  entry  into  force  of  this  Regulation  and  every  four years  thereafter  (Article 
18(7)).  

EN 

28 

  EN 

 
Requirement  10:  ACER  is  tasked  with  issuing  a  recommendation  addressed  to  the 
Commission on a proposal for a harmonised methodology on tariffs (Article 61(5a)). 

For Requirements 8, 9 and 10, ACER requires additional staff resources for horizontal support 
and overhead, as well as an operational budget for specialised consultancy and developments.  

3.3. 

Estimated impact on revenue  

  The proposal/initiative has no financial impact on revenue. 

 

The proposal/initiative has the following financial impact: 

 

 

 

Budget revenue line: 

Article …………. 

on own resources  

on other revenue 

please indicate, if the revenue is assigned to expenditure lines 

Appropriations 
available for the 
current financial 
year 

     EUR million (to three decimal places) 

Impact of the proposal/initiative3 

Year 2024 

Year 2025  Year 2026 

Year 2027 

For assigned revenue, specify the budget expenditure line(s) affected. 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or 
any other information). 

3  As  regards  traditional  own  resources  (customs  duties,  sugar  levies),  the  amounts  indicated  must  be  net 

amounts, i.e. gross amounts after deduction of 20 % for collection costs. 

EN 

29 

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4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

High-level  description  of  the  requirements  of  digital  relevance  and  related  categories  (data,  process  digitalisation  &  automation,  digital  solutions 
and/or digital public services)  

Reference to the requirement 

Requirement description 

Requirement  1  (R1)  –  Article 
18a(2), (3), (6) and Article 61.5a: 
Smart grid indicators and related 
governance framework 

requirement 
of 

This 
concerns 
the 
a  Union-level 
establishment 
framework  for  smart  grid  indicators, 
including  an  ACER  recommendation, 
progress 
Union-level 
periodic 
reporting,  and  the  possibility  for  the 
Commission 
implementing 
to  adopt 
acts on a harmonised methodology. It is 
digitally  relevant  because  it  concerns 
the measurement and monitoring of the 
uptake  of  smart  and  innovative  grid 
technologies  and  digital  solutions  in 
transmission and distribution networks. 

Actors affected or 
concerned by the 
requirement 

ACER,  

The Commission,  

National 
authorities  

regulatory 

Transmission 
system 
operators and distribution 
system operators. 

High-level Processes 

Categories 

reporting, 
assessment 
of 

development 

Monitoring, 
regulatory 
and 
harmonised 
methodologies. 

Data. 

Requirement  2  (R2)  –  Article 
18a(4):  Management 
and 
exchange  of  grid  data  for  smart 
grid operation 

concerns 
the 
requirement 
This 
transmission  system 
for 
obligation 
operators 
system 
and  distribution 
operators to manage and exchange grid 
data  in  a  harmonised  manner  so  as  to 
enable  the  development,  deployment 
and  effective  use  of  smart  electricity 

system 
Transmission 
distribution 
operators, 
system  operators  and, 
indirectly,  other  relevant 
actors involved in system 
operation  and  flexibility 
integration. 

 Data  exchange,  network 
operation,  monitoring, 
and 
optimisation 
of 
coordination 
electricity 
system 
operation. 

Data  

Process 
digitalisation 
and 
automation. 

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30 

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and 

grids  and  of  innovative  data-driven 
solutions  supporting  the  monitoring, 
coordination  of 
optimisation 
network  operation. 
is  digitally 
It 
the 
relevant  because 
exchange  and  use  of  network,  market 
and  operational  data  and  supports  the 
digitalisation of system operation. 

it  governs 

for 

grid 

data 

concerns 

requirement 

related  empowerment 

This 
the 
voluntary  establishment  of  a  secure 
exchange 
electricity 
framework,  jointly  facilitated  by  the 
ENTSO for Electricity and the EU DSO 
Entity,  to  support  the  development, 
testing,  integration  and  deployment  of 
innovative 
grid 
technologies 
operation  and  optimisation,  as  well  as 
the 
the 
for 
Commission 
implementing 
to  adopt 
acts  setting  out  guidelines  on  lawful, 
secure  and  controlled  data  reuse  for 
research  and  innovation  public-interest 
purposes. It is digitally relevant because 
it  concerns  structured  data  exchange, 
common 
formats, 
data  models, 
ontologies  and  interfaces,  as  well  as 
testing, 
digital 
validation, 
benchmarking, 
lifecycle 
interoperability 
management of digital tools. 

arrangements 

and 

for 

Requirement  3  (R3)  –  Article 
61.5b: 
and  Article 
18a(5) 
Voluntary  secure  electricity  grid 
data  exchange  framework  for 
innovation 

system 
 Transmission 
distribution 
operators, 
system  operators, 
the 
ENTSO  for  Electricity, 
the  EU  DSO  Entity,  the 
Commission, 
and 
participating 
relevant 
stakeholders 
as 
research  and  technology 
and 
organisations 
industrial 
solutions 
providers. 

such 

testing 
of 

Data sharing, secure data 
and 
access, 
validation 
digital 
interoperability 
tools, 
governance, 
and 
innovation support. 

digital 
and 

Data, 
solutions, 
process 
digitalisation 
and 
automation. 

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31 

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4.2. 

Data 

High-level description of the data in scope 

Type of data  

The  data  concerned  relate  to  the  uptake  of  smart  and  innovative  grid 
technologies  and  digital  solutions  in  transmission  and  distribution 
networks, as well as to the efficient use of electricity infrastructure. These 
data  are  expected  to  build  primarily  on  existing  national  reports  under 
Article 59(l) of Directive (EU) 2019/944, complemented where necessary 
by additional data specified through ACER’s recommendation and, where 
adopted, through Commission implementing acts on smart grid indicators.  

solutions 

The  data  concerned  are  electricity  grid  data  necessary  for 
the 
development, deployment and effective use of smart electricity grids and 
innovative  data-driven 
supporting  network  operation. 
Depending on the use case, these data may include network topology and 
asset data, operational measurements, load flows, voltage and congestion 
data,  outage  and  maintenance  data,  dispatch  and  curtailment  data, 
connection  and  capacity  data,  flexibility-related  data,  and  operational 
forecasts and constraints relevant for transmission and distribution system 
operation.  

Reference to the 
requirement(s) 

Requirement  1 
indicators) 

(smart  grid 

Standard and/or specification  

At this stage, no specific 
technical standard is prescribed in 
the legal text; any further 
harmonisation of methodology, 
indicators or reporting formats 
would be addressed in the 
recommendation and potentially 
in an implementing act. 

Requirement 2 (grid data 
exchange for smart grid 
operation) 

The legal text does not itself 
prescribe detailed technical 
standards. 

Existing sectoral specifications 
and models, including where 
relevant Common Grid Model 
Exchange Standard (CGMES) or 
other electricity-sector 
interoperability solutions, may be 
relevant at implementation stage. 

The proposal provides that 
Commission implementing acts 
may specify or update the data 
models, formats, ontologies and 
interfaces relevant for the 

The  data  concerned  are  electricity  grid  data  and  related  technical 
information  used  within  a  voluntary  secure  framework  for  research  and 
the  operation  and 
innovation  public-interest  purposes  supporting 
optimisation  of  the  electricity  system.  Depending  on  the  concrete  use 
case,  such  data  may  include  operational,  planning,  asset,  flexibility  and 

Requirement 3 (secure 
electricity grid data exchange 
framework for innovation) 

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system-performance data contributed by participating transmission system 
operators  and  distribution  system  operators,  as  well  as  metadata, 
benchmark  data  and  outputs  generated  through  testing  and  validation 
activities.  

Alignment with the European Data Strategy 

Explanation of how the requirement(s) are aligned with the European Data Strategy 

framework, together with 
conditions on transparency, 
accountability, cybersecurity and 
risk mitigation. 

The Requirement 1 (smart grid indicators) is aligned with the European Data Strategy insofar as it supports consistent and fair use of data for 
regulatory monitoring and policy development within the energy sector, while relying on existing sectoral reporting structures. 

The Requirement 2 (grid data exchange for smart grid operation) is aligned with the European Data Strategy because it supports sector-specific 
data sharing and interoperability in a way that is consistent with Union rules on data protection, cybersecurity and fair access to data. It also 
complements the existing energy data framework without duplicating the Data Act, as it concerns regulated grid data and cooperation between 
regulated entities for system operation. 

The  Requirement  3 (secure electricity grid data  exchange framework for innovation) is  aligned  with  the European Data  Strategy because  it 
aims to enable lawful, secure and controlled data reuse within a sector-specific framework, while respecting EU rules on GDPR, the Data Act, 
the  AI  Act  and  other  applicable  legislation.  In  practice,  this  framework  would  also  underpin  the  development  and  deployment  of  AI-based 
solutions  supporting  the  operation  and  optimisation  of  the  electricity  system.  Any  such  development  and  deployment  should  take  place  in 
compliance with Regulation (EU) 2024/1689 (AI Act) and other applicable Union legislation, in particular as regards risk management, data 
governance, transparency, human oversight, robustness and cybersecurity. 

Alignment with the once-only principle 

Explanation of how the once-only principle has been considered and how the possibility to reuse existing data has been explored 

For Requirement 1 (smart grid indicators) the proposal follows the once-only principle by building, to the extent possible, on already existing 
national reporting obligations rather than creating a wholly new reporting system. 

For  Requirement  2  (grid  data  exchange  for  smart  grid  operation)  the  once-only  principle  is  respected  in  that  the  provision  builds  on  data 
already generated and used by system operators in the normal course of system operation; it does not create a general obligation to re-collect 

EN 

33 

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the same information from new sources, but rather aims to improve the way existing data are exchanged and used. 

For Requirement 3 (secure electricity grid data exchange framework for innovation) the once-only principle should guide implementation of 
the  framework,  notably  by  reusing  existing  sectoral  datasets,  reporting  channels  and  technical  solutions  where  possible,  and  by  avoiding 
unnecessary duplication of collection or transmission obligations. 

Explanation of how newly created data is findable, accessible, interoperable and reusable, and meets high-quality standards 

N/A. 

Data flows 

High-level description of the data flows 

Type of data 

Reference(s) 
to the 
requirement(s) 

Actors who 
provide the 
data 

Actors who receive 
the data 

Trigger for the 
data exchange 

Frequency (if 
applicable) 

Data  related  to  the  uptake  of  smart 
and  innovative  grid  technologies  and 
digital solutions 

Requirement 1 
(smart grid 
indicators) 

Data concerned are electricity grid 
data necessary for the development, 
deployment and effective use of smart 
electricity grids and innovative data-
driven solutions supporting network 
operation 

Requirement 2 
(grid data 
exchange for 
smart grid 
operation) 

National 
regulatory 
authorities, and 
where relevant 
system 
operators, 

ACER for the 
preparation of its 
recommendation and 
progress reports, and 
from ACER to the 
Commission in the 
form of those 
outputs. 

Grid operators 

Grid operators 

The initial trigger 
would be the entry 
into force of the 
Regulation 

followed by the 
preparation of 
ACER’s 
recommendation 
within one year, 
and thereafter by 
the regular three-
year reporting cycle 

operational system 
needs to be linked 
to monitoring, 
optimisation and 
coordination of 
network operation, 

The  frequency  of 
such 
exchanges 
would  depend  on 
the  operational  use 
case and may range 
from  near  real-time 

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34 

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Electricity grid data and related 
technical information used within a 
voluntary secure framework for 
research and innovation public-
interest purposes supporting the 
operation and optimisation of the 
electricity system 

Requirement 3 
(secure 
electricity grid 
data exchange 
framework for 
innovation) 

including the 
integration of 
demand response, 
renewable energy 
sources and non-
fossil flexibility 

The trigger would 
be the voluntary 
establishment of the 
coordinated 
arrangement by 
interested operators, 
followed by the 
communication of 
the relevant 
governance and 
technical elements 
to the Commission. 

to 
exchanges 
periodic  sharing  of 
static  or  planning-
related data. 

Subsequent data 
exchanges would 
depend on 
participation in the 
framework and on 
the concrete 
research, testing, 
benchmarking and 
deployment 
activities carried 
out within it. 

The main data flows would be from 
participating transmission system 
operators and distribution system 
operators into the coordinated 
arrangement, between participants 
within that framework under agreed 
governance rules, from the ENTSO for 
Electricity and the EU DSO Entity to 
the Commission when communicating 
the governance and technical 
arrangements, and from the 
Commission back to participants 
through its opinion and, where adopted, 
through implementing acts. 

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Responsible body 

ACER is responsible 
for the Union-level 
recommendation and 
progress report. 
National regulatory 
authorities are 
responsible for national 
monitoring and 
reporting. 

Use of AI 
technologies 
(if 
applicable) 

At present, 
the proposal 
does not 
require the 
use of AI for 
this digital 
solution. 

How is 
accessibility 
catered for? 

How is reusability 
considered? 

No specific accessibility 
requirements are set, as these are 
primarily regulatory and expert-
facing systems rather than public-
facing digital services. Outputs such 
as ACER reports should 
nevertheless remain publicly 
accessible in line with existing 
transparency practices. Reusability 
is ensured by building on existing 
regulatory reporting and analytical 
tools rather than creating a new 
solution from scratch. 

4.3. 

Digital solutions 

High-level description of digital solutions 

Digital 
solution 

Reference(s) 
to the 
requirement(s) 

Main mandated 
functionalities 

Digital 
solution #1 

Existing 
reporting, 
monitoring and 
analytical 
systems for 
smart grid 
indicators 

Requirement 1  The proposal does not 

create a standalone new 
Union digital platform. 
The relevant digital 
solutions are the existing 
reporting, monitoring and 
analytical systems used 
by ACER and national 
regulatory authorities to 
collect, process and assess 
information on network 
performance and on the 
uptake of smart and 
digital grid solutions. 
Depending on future 
implementing acts, those 
existing systems may 
need to be updated to 
support a more 
harmonised indicator 
methodology, common 
reporting structures and 
comparable analytical 
outputs. 

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36 

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Digital 
solution #2 

Grid data 
exchange 
interfaces, 
systems and 
interoperability 
components 
for smart grid 
operation 

Requirement 2  The relevant digital 

solutions are the 
interfaces, systems and 
interoperability 
components used by 
transmission system 
operators and distribution 
system operators to 
exchange and process grid 
data in a harmonised 
manner. These may 
include machine-to-
machine interfaces, data 
exchange gateways, 
shared semantic models, 
data management 
systems, and other digital 
tools supporting 
monitoring, optimisation 
and coordination of 
network operation. 

Transmission system 
operators and 
distribution system 
operators, acting within 
their existing 
operational 
responsibilities. 

The proposal does not establish a 
citizen-facing digital service and 
therefore does not raise specific 
accessibility issues for the general 
public. The digital solutions are 
intended to support interoperability 
and reuse of data and should, where 
possible, build on existing sectoral 
solutions and standards rather than 
require entirely new architectures. 

The text 
envisages the 
development 
and operation 
of innovative 
data-driven 
solutions, 
which may 
include AI-
enabled tools 
for 
forecasting, 
optimisation 
or system 
observability. 

Digital 
solution #3 

Secure 
electricity grid 
data exchange 
framework for 
innovation 

Requirement 3  The relevant digital 

solution is the secure 
electricity grid data 
exchange framework 
established on a voluntary 
basis through a 
coordinated arrangement 
jointly facilitated by the 
ENTSO for Electricity 

The participating 
transmission system 
operators and 
distribution system 
operators are primarily 
responsible, with the 
ENTSO for Electricity 
and the EU DSO Entity 
jointly facilitating the 

The proposal does not prescribe a 
specific technological architecture, 
which preserves flexibility to build 
on existing or pilot infrastructures. 
Reusability is a central feature, 
since the framework is intended to 
enable developed innovative 
solutions to be used by other 
European transmission and 

The 
framework is 
expressly 
designed to 
support 
innovative 
technologies 
and may 
include AI-

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37 

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distribution system operators 
requesting access via the 
coordinated arrangement. No 
specific accessibility requirements 
arise, as this is not a public-facing 
service. 

based tools, 
including for 
modelling, 
testing, 
optimisation 
or validation. 

coordinated 
arrangement. The 
Commission exercises 
oversight through its 
opinion on the 
communicated 
governance and 
technical arrangements 
and through possible 
implementing acts 
under Article 61.5b. 

and the EU DSO Entity. 
This framework may rely 
on digital platforms, 
secure processing 
environments, shared 
testing and benchmarking 
environments, validation 
tools, and other digital 
infrastructures necessary 
to support the 
development, testing, 
integration and 
deployment of innovative 
technologies for grid 
operation and 
optimisation. 

For each digital solution, explanation of how the digital solution complies with applicable digital policies and legislative enactments 

EN 

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Digital solution #1 

Digital and/or sectorial policy (when these are 
applicable) 

Explanation on how it aligns 

AI Act 

EU Cybersecurity framework 

eIDAS 

Single Digital Gateway and IMI 

Others 

Any future use of AI-based analytical tools by ACER or national regulatory 
authorities would need to comply with the AI Act.  

The solution must also remain consistent with the general Union framework on data 
protection and cybersecurity. 

No specific link 

No specific link 

Digital solution #2 Grid data exchange interfaces, systems and interoperability components for smart grid operation 

Digital and/or sectorial policy (when these are 
applicable) 

Explanation on how it aligns 

AI Act 

EU Cybersecurity framework 

Where such tools are used, they would need to comply with the applicable Union 
framework, in particular the AI Act where relevant 

Where such tools are used, they would need to comply with the applicable Union 
framework, in particular the NIS2-related obligations applicable to the entities 
concerned, and other cybersecurity requirements under sectoral law 

eIDAS 

Single Digital Gateway and IMI 

No specific link 

No specific link 

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39 

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Others 

Digital solution #3 Secure electricity grid data exchange framework for innovation 

Digital and/or sectorial policy (when these are 
applicable) 

Explanation on how it aligns 

AI Act 

Where AI-based tools are used, compliance with the AI Act is expressly relevant, 
alongside GDPR, the Data Act, cybersecurity rules and other applicable Union 
legislation 

EU Cybersecurity framework 

Where AI-based tools are used, compliance with cybersecurity rules and other 
applicable Union legislation 

eIDAS 

Single Digital Gateway and IMI 

Others 

4.4. 

Interoperability assessment 

No specific link 

No specific link 

For  this  legislative  initiative,  the  requirements  concerning  data  exchange,  smart  grid  indicators,  the  coordinated  innovation  framework  and  smart 
metering systems do not establish or affect a trans-European digital public service within the meaning of the Interoperable Europe Act. They primarily 
concern regulatory obligations, operational data exchange arrangements  and digital infrastructures of regulated electricity sector entities, rather than 
digital services provided by Union entities or public sector bodies to one another or to citizens or businesses. No cross-border digital public service is 
affected by the policy initiative, and, therefore, the interoperability assessment section does not apply. 

EN 

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4.5.  Measures to support digital implementation 

High-level description of measures supporting digital implementation 

Description of the measure 

Reference(s) to the 
requirement(s)  

Commission role  

(if applicable) 

For Requirement 1, an important 
implementation measure is the 
preparation by ACER of a 
recommendation on smart grid indicators, 
followed, where appropriate, by 
Commission implementing acts setting 
out a harmonised methodology. This 
measure supports the gradual 
development of a more coherent Union-
level framework for measuring the uptake 
of smart and digital grid solutions and 
their contribution to the efficient use of 
electricity infrastructure. 

For Requirement 2, the main 
implementation measure is the gradual 
adaptation by transmission system 
operators and distribution system 
operators of their data management, 
exchange and interoperability 
arrangements so that grid data can be 
used in a more harmonised way to 
support smart grid deployment and 
innovative data-driven solutions. This is 

EN 

Requirement 1 (smart 
grid indicators) 

The Commission’s 
role would be to 
assess the need for 
further harmonisation 
and, where 
appropriate, adopt 
implementing acts. 

Requirement 2 (grid 
data exchange for smart 
grid operation) 

The Commission’s 
role would mainly 
consist of policy 
monitoring and 
follow-up in the 
context of 
implementation of the 
Regulation. 

41 

Actors to be 
involved 

(if applicable) 

The actors involved 
would include 
ACER, the 
Commission, 
national regulatory 
authorities, 
transmission 
system operators, 
distribution system 
operators and 
relevant 
stakeholders. 

The actors involved 
would include 
transmission 
system operators, 
distribution system 
operators, national 
regulatory 
authorities and, 
where relevant, 
ENTSO for 

Expected timeline 

(if applicable) 

first  milestone 
The 
would 
be  ACER’s 
recommendation within 
one  year  after  entry 
into  force,  followed  by 
possible 
implementing 
acts  at  a  later  stage  if 
needed. 

Implementation would 
begin from the date of 
application of the 
Regulation and 
proceed progressively 
as operators adapt 
existing systems and 
processes. 

EN 

 
 
 
primarily an operational implementation 
measure at sector level rather than a 
measure to be specified by a Commission 
act. 

For Requirement 3, a key 
implementation measure is the 
establishment of the coordinated 
arrangement jointly facilitated by 
ENTSO for Electricity and the EU DSO 
Entity, including the development of 
governance, participation, technical, 
operational and cybersecurity rules for 
the voluntary secure electricity grid data 
exchange framework. A further 
supporting measure is the adoption by the 
Commission of implementing acts under 
Article 61.5b, setting out common 
guidelines on data models, formats, 
ontologies, interfaces, transparency and 
risk-management requirements. 

Requirement 3 (secure 
electricity grid data 
exchange framework 
for innovation) 

The Commission’s 
role would therefore 
include receiving the 
communicated 
arrangements, issuing 
an opinion on them, 
and, where 
appropriate, adopting 
implementing acts to 
support a more 
consistent and secure 
rollout. 

Electricity and the 
EU DSO Entity. 

The actors involved 
would include the 
Commission, 
ENTSO for 
Electricity, the EU 
DSO Entity, 
participating 
transmission 
system operators 
and distribution 
system operators, 
and relevant 
European 
stakeholders such 
as research and 
technology 
organisations and 
industrial solutions 
providers. 

The coordinated 
arrangement would be 
expected to be 
developed after entry 
into force of the 
Regulation, while 
implementing acts 
would follow 
subsequently, 
depending on the 
progress of the 
framework and the need 
for further 
specification. 

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ANNEX 
to the LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

Name of the proposal: 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) 2019/943, as regards future-proofing electricity bills in the European 
Union, through reducing system costs and fostering electrification and digitalisation 

1. 

2. 

3. 

4. 

4.1. 

4.2. 

NUMBER and COST of HUMAN RESOURCES CONSIDERED NECESSARY 

COST of OTHER ADMINISTRATIVE EXPENDITURE 

TOTAL ADMINISTRATIVE COSTS 

METHODS of CALCULATION USED for ESTIMATING COSTS 

Human resources 

Other administrative expenditure 

EN 

1 

  EN 

 
1.  Cost of human resources considered necessary 

 The proposal/initiative does not require the use of human resources 
The proposal/initiative requires the use of human resources, as explained below: 

1.1. Financed from voted budget 

1.1.1 DG ENER 

HEADING 7 

of the multiannual financial 
framework 

2024 

2025 

2026 

2027 

TOTAL 2021-2027 

TOTAL 2028-2034 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

EUR million (to three decimal places) 

Establishment plan posts (officials and temporary staff) 
20  01  02  01  - 
Headquarters  and 
Representation 
offices 

0.000 

0.000 

AST 

AD 

20  01  02  03  - 
Union Delegations 

External staff  
20  02  01  and  20 
02  02  –  External 
personnel 
– 
Headquarters  and 
Representation 
offices 

– 

03 

02 
20 
External 
personnel  -  Union 
Delegations 

AD 

AST 

AC 

END 

AC 

AL  

END 

JPD 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000  

0.000 

 0.000 

EN 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

1 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0.194 

0.000 

0.000 

0.000 

0.210 

0.000 

0.000 

0.000 

0.000 

0.000 

1 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0.194 

0.000 

0.000 

0.000 

0.210 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

1  

0.194 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

2  

0.210 

0.000 

0.000 

 0.000 

0.000 

 0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

2 

EN 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Other HR related 
budget lines 
(specify) 

AC 

END 

Subtotal HR – HEADING 
7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0.000 

0 

0.000 

0 

0.000 

3 

0.404 

0 

0 

3 

0.000 

0.000 

0.404 

0 

0 

3 

0.000 

0.000 

0.404 

Outside HEADING 7 

2024 

2025 

2026 

2027 

TOTAL 2021-2027 

TOTAL 2028-2034 

of the multiannual financial framework 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

Establishment plan posts (officials and temporary staff)  

01 01 01 01 Indirect Research 

01 01 01 11 Direct Research 

Other (please specify) 

External staff  

- 
Headquarters 

at 

- 
in 
delegations 

Union 

External  staff 
from 
operational 
appropriations 

AD 

AST 

AD 

AST 

AD 

AST 

AC 

END 

AC 

AL  

END 

JPD 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

3 

EN 

 
 
  
  
  
  
  
  
  
  
 
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
  
  
  
  
 
 
01 01 01 02 Indirect Research 

01 01 01 12 Direct research 

Other budget lines HR related 
(specify) 

AC 

END 

AC 

END 

AC 

END 

Subtotal HR – Outside HEADING 7 
Total HR (all MFF Headings) 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

EN 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.404 

0 

0 

0 

0 

0 

0 

0 

3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.404 

0 

3 

3 

0.404 

0 

0 

4 

EN 

 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
 
 
 
 
1.1.2 DG JRC 

HEADING 7 

of the multiannual 
financial framework 

2024 

2025 

2026 

2027 

TOTAL 2021-2027 

TOTAL 2028-2034 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

EUR million (to three decimal places) 

Establishment plan posts (officials and temporary staff) 
20  01  02  01  - 
Headquarters 
and 
Representation 
offices 

0.000 

0.000 

AST 

AD 

20  01  02  03  - 
Union 
Delegations 

AD 

AST 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

External staff  
20  02  01  and  20 
02  02  –  External 
personnel 
– 
Headquarters 
and 
Representation 
offices 

20  02  03  – 
External 
personnel 
Union 
Delegations 

- 

Other HR related 
budget lines 

AC 

END 

AC 

AL  

END 

JPD 

AC 

EN 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

 0.000 

0.000 

0.000  

0.000 

0.000 

 0.000 

0.000 

0.000  

0.000 

0.000 

 0.000 

0.000 

0.000  

0.000 

0.000 

 0.000 

0.000 

 0.000 

0.000 

5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

 
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
 
  
  
  
 
 
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
(specify) 

END 

0.000 

0.000 

0.000 

0.000 

Subtotal HR – 
HEADING 7 

0 

0.000 

0 

0.000 

0 

0.000 

0 

0.000 

0 

0 

0.000 

0.000 

0 

0 

0.000 

0.000 

Outside HEADING 7 
of the multiannual financial 
framework 

2024 

2025 

2026 

2027 

TOTAL 2021-2027 

TOTAL 2028-2034 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

Establishment plan posts (officials and temporary staff) 

01 01 01 01 Indirect Research 

01 01 01 11 Direct Research 

Other (please specify) 

External staff 

- 
Headquarters 

at 

in  Union 

- 
delegations 

External  staff 
from 
operational 
appropriations 

AD 

AST 

AD 

AST 

AD 

AST 

AC 

END 

AC 

AL  

END 

JPD 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

0.000 

0.000 

0.000 

0.000 

0 

0 

0.000 

0.000 

0.000 

0.5  

0.097 

0.5 

0.097 

0.5 

0.679 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

6 

EN 

 
 
  
  
  
  
 
 
  
 
  
  
  
 
 
 
  
  
  
  
 
 
  
  
  
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
  
  
  
  
 
 
01 01 01 02 Indirect Research 

01 01 01 12 Direct research 

Other budget lines HR related 
(specify) 

AC 

END 

AC 

END 

AC 

END 

Subtotal HR – Outside HEADING 7 
Total HR (all MFF Headings) 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0.000 

0.000 

0.000 

0.000 

0 

0 

0.000 

0.000 

0.000 

1.5  

0.158 

1.5 

0.158 

1.5 

1.103 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.255 

0.255 

0 

0 

0 

2 

2 

0.000 

0.000 

0.000 

0.255 

0.255 

2 

2 

0 

0 

2 

2 

1.782 

1.782 

EN 

7 

EN 

 
 
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
  
  
  
 
 
  
  
  
  
 
 
  
  
  
  
 
 
 
  
 
 
 1.1.3 Total  

HEADING 7 

of the multiannual financial 
framework 

2024 

2025 

2026 

2027 

TOTAL 2021-2027 

TOTAL 2028-2034 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

Establishment plan posts (officials and temporary staff) 
20  01  02  01 
- 
Headquarters  and 
Representation 
offices 

0.000 

0.000 

AST 

AD 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

20  01  02  03 
- 
Union Delegations 

– 

External staff 
20 02 01 and 20 02 
External 
02 
personnel 
– 
Headquarters  and 
Representation 
offices 

03 

02 

– 
20 
External  personnel 
- 
Union 
Delegations 

Other HR related 
budget lines 
(specify) 

AD 

AST 

AC 

END 

AC 

AL  

END 

JPD 

AC 

END 

Subtotal HR – HEADING 7 

EN 

1 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0 

0 

3 

0.194 

0.000 

0.000 

0.000 

0.210 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.404 

1 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0 

0 

3 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

8 

1 

1.358 

0.194 

0.000 

0.000 

0.000 

0.210 

2 

1.470 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.404 

3 

2.828 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outside HEADING 7 
of the multiannual financial framework 
Establishment plan posts (officials and temporary staff) 

Appropriations 

2024 

FTE 

2025 

2026 

2027 

TOTAL 2021-2027 

TOTAL 2028-2034 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

01 01 01 01 Indirect Research 

01 01 01 11 Direct Research 

Other (please specify) 

External staff 

- 
Headquarters 

at 

in  Union 

- 
delegations 

External  staff 
from 
operational 
appropriations 

01 01 01 02 Indirect Research 

01 01 01 12 Direct research 

AD 

AST 

AD 

AST 

AD 

AST 

AC 

END 

AC 

AL  

END 

JPD 

AC 

END 

AC 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0 

0 

0.000 

0.000 

0 

0 

0.000 

0.000 

0.000 

0.5 

0.097 

0.5 

0.097 

0.5 

0.679 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

1.5 

0.158 

1.5 

0.158 

1.5 

1.103 

EN 

9 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other budget lines HR related 
(specify) 

END 

AC 

END 

Subtotal HR – Outside HEADING 7 
Total HR (all MFF Headings) 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

0 

0 

0.000 

0.000 

0.000 

0.000 

0.000 

0 

0 

0 

2 

5 

0.000 

0.000 

0.000 

0.255 

0.659 

0 

0 

0 

2 

5 

0.000 

0.000 

0.000 

0.255 

0.659 

2 

5 

1.782 

4.610 

2.  Cost of other administrative expenditure 

 

The proposal/initiative does not require the use of administrative appropriations 

  The proposal/initiative requires the use of administrative appropriations, as explained below: 

2.1. Financed from voted budget 

2.1.1 DG ENER 

HEADING 7 
of the multiannual financial framework 

At headquarters or within EU territory: 

20 02 06 01 - Mission and representation expenses 

20 02 06 02 - Conference and meeting costs 

20 02 06 03 - Committees 

20 02 06 04 - Studies and consultations 

20 04 – IT expenditure (corporate)1   

Other budget lines non-HR related (specify where necessary) 

In Union delegations 

2024 

2025 

2026 

2027 

EUR million (to three decimal places) 

TOTAL 
2021-2027 

TOTAL 2028-
2034 

0.018 

0.126 

0.018 

0.000 

0.000 

0.000 

0.000 

0.000 

1 

The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020

) 6126 final of 10.9.2020, page 7). 

EN 

10 

EN 

 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
 
 
 
20 02 07 01 - Missions, conferences and representation expenses 

20 02 07 02 - Further training of staff 

20 03 05 – Infrastructure and logistics 

Other budget lines non-HR related (specify where necessary) 

Subtotal Other - HEADING 7 
of the multiannual financial framework 

0.000 

0.000 

0.000 

0.018 

Outside HEADING 7 
of the multiannual financial framework 

2024 

2025 

2026 

2027 

Expenditure  on  technical  and  administrative  assistance  (not  including 
external staff) from operational appropriations (former 'BA' lines): 

0.000 

0.000 

0.000 

0.000 

- at Headquarters 

- in Union delegations 

Other management expenditure for research 

Policy IT expenditure on operational programmes2  

Corporate IT expenditure on operational programmes3 

Other budget lines non-HR related (specify where necessary) 

Sub-total Other – Outside HEADING 7 
of the multiannual financial framework 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.018 

0.126 

EUR million (to three decimal places) 

TOTAL 
2021-2027 

POST 2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Total Other admin expenditure (all MFF Headings) 

0.000 

0.000 

0.000 

0.018 

0.018 

0.126 

2 

3 

The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020

) 6126 final of 10.9.2020, page 7). 

This item includes local administrative systems and contributions to the co-financing of corporate IT systems (see the Guidelines on Financing of IT, C(2020) 6126 final of 10.9.2020). 

EN 

11 

EN 

 
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
  
  
  
  
 
 
 
 
 
 
2.1.3. Total 

HEADING 7 
of the multiannual financial framework 

2024 

2025 

2026 

2027 

TOTAL 
2021-2027 

POST 2027 

At headquarters or within EU territory: 

20 02 06 01 - Mission and representation expenses 

20 02 06 02 - Conference and meeting costs 

20 02 06 03 - Committees 

20 02 06 04 - Studies and consultations 

20 04 – IT expenditure (corporate)4  

Other budget lines non-HR related (specify where necessary) 

In Union delegations 

20 02 07 01 - Missions, conferences and representation expenses 

20 02 07 02 - Further training of staff 

20 03 05 – Infrastructure and logistics 

Other budget lines non-HR related (specify where necessary) 

Subtotal Other - HEADING 7 
of the multiannual financial framework 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.018 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.018 

0.018 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.018 

0.126 

0.126 

4 

The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020) 6126 final of 10.9.2020, page 7). 

EN 

12 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outside HEADING 7 
of the multiannual financial framework 

2024 

2025 

2026 

2027 

TOTAL 
2021-2027 

POST 2027 

Expenditure  on  technical  and  administrative  assistance  (not  including 
external staff) from operational appropriations (former 'BA' lines): 

- at Headquarters 

- in Union delegations 

Other management expenditure for research 

Policy IT expenditure on operational programmes5   

Corporate IT expenditure on operational programmes6 

Other budget lines non-HR related (specify where necessary) 

Sub-total Other – Outside HEADING 7 
of the multiannual financial framework 
Total Other admin expenditure (all MFF Headings) 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.018 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.018 

0.126 

5 

6 

The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020) 6126 final of 10.9.2020, page 7). 
This item includes local administrative systems and contributions to the co-financing of corporate IT systems (see the Guidelines on Financing of IT, C(2020) 6126 final of 10.9.2020). 

EN 

13 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
3.  Total administrative costs (all Headings MFF) 

3.1. Appropriations from voted budget 

3.1.1. DG ENER 

EUR million (to three decimal places) 

Summary 

2024 

2025 

2026 

2027 

Heading 7 - Human Resources 

Heading 7 – Other administrative expenditure 

Sub-total Heading 7 
Outside Heading 7 – Human Resources 

Outside Heading 7 – Other administrative expenditure 
Sub-total Other Headings 
TOTAL HEADING 7 and Outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0,404 

0,180 

0,584 

0,000 

0,000 

0,000 

0,584 

3.1.2. DG JRC 

Summary 

2024 

2025 

2026 

2027 

Heading 7 - Human Resources 

Heading 7 – Other administrative expenditure 

Sub-total Heading 7 
Outside Heading 7 – Human Resources 

Outside Heading 7 – Other administrative expenditure 
Sub-total Other Headings 
TOTAL HEADING 7 and Outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.255 

0.000 

0.255 

0.255 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

14 

EN 

TOTAL 
2021-
2027 
0,404 

0,180 

0,584 

0,000 

0,000 

0,000 

0,584 

TOTAL 
2021-
2027 
0.000 

0.000 

0.000 

0.255 

0.000 

0.255 

0.255 

TOTAL 
2028-
2034 
2,828 

0,126 

2,954 

0,000 

0,000 

0,000 

2,954 

TOTAL 
2028-
2034 
0.000 

0.000 

0.000 

1.782 

0.000 

1.782 

1.782 

EN 

 
 
 
 
 
3.1.3. TOTAL 

Summary 

2024 

2025 

2026 

2027 

Heading 7 - Human Resources 

Heading 7 – Other administrative expenditure 

Sub-total Heading 7 
Outside Heading 7 – Human Resources 

Outside Heading 7 – Other administrative expenditure 

Sub-total Other Headings 
TOTAL HEADING 7 and Outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.404 

0.018 

0.422 

0.255 

0.000 

0.255 

0.677 

TOTAL 
2021-
2027 
0.404 

0.018 

0.422 

0.255 

0.000 

0.255 

0.677 

TOTAL 
2028-
2034 
2.828 

0.126 

2.954 

1.782 

0.000 

1.782 

4.736 

The other administrative appropriations required will be met by the appropriations which are already assigned to management of the action and/or which have been redeployed, together 
if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of existing budgetary constraints.  

EN 

15 

EN 

 
 
 
 
4. 

Methods of calculation used to estimate costs 

4.1. 

Human resources 

DG ENER has carefully assessed the human resources required for the implementation of this 
proposal  and  conducted  an  internal  review  to  determine  whether  any  of  the  new  activities 
could be covered through redeployment within the Directorate-General. This assessment has 
confirmed  that  these  tasks  cannot  be  absorbed  through  internal  redeployment  without 
negatively  affecting  the  delivery  of  existing  core  priorities,  in  particular  given  the  already 
high  workload  related  to  the  implementation  of  the  Electricity  Market  Design  reform,  the 
Grids  Package  and  the  broader  digitalisation  agenda  in  the  energy  sector.  The  proposal 
therefore requires targeted additional resources to ensure effective and timely implementation. 
This assessment concluded that internal redeployment is not a viable option. The proposal 
gives rise to  a substantial  increase in  workload, particularly  under Requirements 1 to  5 (see 
section  1.5.1),  without  any  corresponding  reduction  in  existing  activities. At  the  same  time, 
the  tasks  linked  to  the  proposal  require  specialised  technical  expertise  and  sustained  input 
over the long term. 

the  energy  crisis, 

Existing staff are already operating at full capacity and are overextended by concurrent policy 
priorities  and 
to  absorb  additional 
responsibilities.  Temporary  arrangements  would  therefore  not  provide  a  credible  or 
sustainable  solution.  In  this  context,  the  implementation  of  the  legislative  proposal  requires 
dedicated  reinforcement  to  ensure  that  DG  ENER  is  properly  equipped  to  manage  the 
complexity and continuity of the new tasks. 

limited  scope 

leaving  very 

To support the effective  implementation  of the proposal,  the allocation of additional staff is 
therefore necessary, namely 1 additional official FTE for the data exchange framework, which 
will  constitute  a  permanent,  long-term  activity,  and  2  additional  Contract  Agent  FTEs  to 
support the development and preparation of the implementing acts. Through these roles, DG 
ENER  will  be  able  to  meet  the  new  legislative  obligations  in  an  effective  and  sustainable 
manner. 

DG JRC has  conducted a thorough evaluation  of the  additional human resources necessary 
for this proposal and has performed an internal review to ascertain whether the new activities 
could  be  managed  through  internal  redeployment  within  the  Directorate-General,  also 
considering  any  synergies  with  ongoing  activities.  To  implement  these  additional  activities 
internal  resources.
(with  an  effort  of  2  FTEs), 

the  JRC  will  redeploy 

its 

EN 

16 

  EN 

 
The staff required to implement the proposal (in FTEs):  

Internally redeployed  

Exceptional additional staff  

Within the 
implementing 
DGs* 

Exceptionally, 
from the 
Commission 
redeployment pool 
after orientation 
from the CMB** 

To be 
financed 
from 
Heading 
7*** / 
Research 

To be 
financed 
from BA 
line 

To be 
financed 
from fees 

Establishment 
plan posts 

0.5 AD JRC 

1 DG ENER 

N/A 

External  staff 
SNEs, 
(CA, 
INT) 

1.5  CA  DG 
JRC 

2 CA DG ENER 

HEADING 7 of the multiannual financial framework 

NB: The average costs for each category of staff at Headquarters are available on BUDGpedia: 
https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-implementation/Pages/financial-statement.aspx 

 Officials and temporary staff 

The implementation of the provisions on network charges, smart grid indicators, electricity grid data 
exchange and the reuse of electricity grid data for research and innovation purposes introduces a set of 
new tasks for the Commission, which require resources to ensure effective and timely implementation. 
These tasks are of a cross-cutting nature, combining energy regulation, digital policy, data governance, 
cybersecurity and innovation support, and require sustained interaction with a wide range of actors at 
Union and national level. 

DG ENER 

The allocation of 1 permanent official (AD) FTE within DG ENER is required to ensure the long-
term  governance,  coordination  and  regulatory  oversight  of  the  new  framework  established  under 
Article 18a. This includes steering the implementation of the electricity grid data exchange framework, 
ensuring  coherence  with  the  broader  Union  legal  framework  (including  the  Data  Act,  AI  Act  and 
cybersecurity  legislation),  coordinating  with  ACER,  ENTSO-E,  the  EU  DSO  Entity  and  Member 
States, and overseeing the follow-up to the Commission opinion on the coordinated arrangement. 

These resources would be related to Requirement 1 and cover in particular: 

Process steering and regulatory coordination 

-  Coordinate the overall implementation process with ACER, ENTSO for Electricity, the 

EU DSO Entity, TSOs, DSOs, Member States and other relevant stakeholders.  

-  Manage  the  preparation  of  a  Commission  opinion  on  the  coordinated  arrangement 
the  assessment  of  governance, 

communicated  under  Article  18a(5), 
participation, technical, operational, transparency and cybersecurity elements.  

including 

-  Ensure  coherence  of  the  initiative  with  the  broader  Union  framework  on  electricity 

markets, digitalisation, cybersecurity, data protection, AI and industrial policy. 

Policy and legal follow-up 

-  Assess the regulatory implications of ACER recommendations and progress reports on 

EN 

17 

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smart grid indicators.  

-  Follow  up  on  the  implementation  of  the  voluntary  electricity  grid  data  exchange 

framework, including how the Commission opinion is taken into account.  

-  Coordinate  with  relevant  Commission  services,  in  particular  on  issues  related  to  data 

governance, cybersecurity, AI, and critical infrastructure.  

Stakeholder engagement and monitoring 

-  Organise  and  follow  up  meetings,  expert  workshops  and  targeted  consultations  with 
TSOs, DSOs, ENTSO-E, the EU DSO Entity, ACER, industry, research actors and other 
stakeholders.  

-  Monitor  implementation  progress  and  support  future  updates  of  the  implementing 

framework where necessary.  

These  tasks  are  structural  and  long-term  in  nature,  as  they  relate  to  the  continuous  monitoring, 
evolution and governance of the digitalisation of electricity networks at Union level. They go beyond 
the current scope of DG ENER’s activities, which do not include the operational oversight of a Union-
level  framework  for  grid  data  exchange  and  innovation.  Existing  staff  are  already  fully  engaged  in 
ongoing legislative implementation and policy development, and do not have the capacity to take on 
these additional horizontal and coordination-intensive responsibilities. 

This  would  also  include  limited  implementation  follow-up  related  to  Article 18b  on  smart  metering 
systems. 

 External staff 

DG ENER 

2  temporary  Contract  Agent  (CA)  FTEs  are  required  to  support  the  preparation,  drafting  and 
adoption of implementing acts under Article 61 (tariff methodology and smart grid indicators & data 
reuse) related to the following requirements: 

innovation  public-interest  purposes  supporting 

-  Requirement 2: The Commission is empowered to adopt implementing acts setting out 
guidelines  to  enable  the  lawful,  secure  and  controlled  reuse  of  electricity  grid  data  for 
research  and 
the  operation  and 
optimisation  of  the  electricity  system  pursuant  to  Article  18a  (Article  61(5b)).  This 
includes  technical  and  legal  preparation,  stakeholder  consultation,  drafting  and 
implementation  follow-up.  This  task  requires  an  estimated  0.5  FTE  from  DG  ENER. 
These resources would cover in particular preparing, drafting and steering the adoption 
of implementing acts under Article 61.5a and 5b, including interservice consultation and 
consultation of Member States under the relevant comitology procedure.  

-  Requirement 3: The Commission may adopt implementing acts setting out guidelines on 
a  harmonised methodology  on  tariffs pursuant to  Article 18 (Article 61(5a)).  This task 
requires  additional  analytical,  regulatory  and  coordination  capacity  within  DG  ENER, 
including an estimated 1 FTE for the preparation of implementing acts. These resources 
would cover in particular policy and legal follow-up. 

-  Requirement 4: The Commission may adopt implementing acts on smart grid indicators 
pursuant  to  Article  18a  (Article  61(5a)).  This  task  requires  additional  analytical, 
regulatory and coordination capacity within DG ENER, including an estimated 0.5 FTE 
for  the  preparation  of  implementing  acts.  These  resources  would  cover  in  particular 
policy and legal follow-up. 

These  activities  are  more  concentrated  in  the  initial  phase  of  implementation  and  during  periodic 
updates of the implementing framework. They require significant analytical and coordination capacity 
over  a  defined  period,  but  are  not  expected  to  require  permanent  reinforcement  once  the  main 
implementing framework is established.  

EN 

18 

  EN 

 
 
Outside HEADING 7 of the multiannual financial framework 

 Only posts financed from the research budget  

DG JRC 

DG  JRC  has  conducted  a  detailed  assessment  of  the  technical  and  scientific  support  required  to 
implement  the  proposal  and  has  reviewed  the  possibility  of  internal  redeployment.  Considering  that 
some  synergies  exist  with  ongoing  activities  in  the  areas  of  digitalisation  of  the  energy  system  and 
cybersecurity,  to  implement  these  additional  activities,  with  an  effort  of  0.5  AD  FTE  –  redeployed 
from  its  internal  resources  -  which  will  be  dedicated  to  the  support  to  the  development  of 
implementing acts.  This includes providing technical input for the preparation of implementing acts 
under Article 61.5b, including on data models, ontologies, interfaces, interoperability architectures and 
technical specifications. 

 External staff 

JRC 
DG  JRC  has  conducted  a  detailed  assessment  of  the  technical  and  scientific  support  required  to 
implement  the  proposal  and  has  reviewed  the  possibility  of  internal  redeployment.  Considering  that 
some  synergies  exist  with  ongoing  activities  in  the  areas  of  digitalisation  of  the  energy  system  and 
cybersecurity, to implement these additional activities, with an effort of 1.5 CA FTEs, the JRC will 
redeploy its internal resources to provide technical and scientific advice for the development of the 
voluntary secure electricity data exchange framework under Article 18a(5). This includes the provision 
of guidelines on testing and validation approaches, and essential cybersecurity requirements.  

Regarding the data exchange framework, the JRC support would focus in particular on: 

-  Support  the  formulation  of  timely,  policy  relevant  use  cases  related  to  electricity  grid 

planning, operation and optimisation.  

-  Supporting the voluntary secure electricity grid data exchange framework through providing 
methodologies  for  independent  testing,  benchmarking  and  validation  methodologies  for 
innovative  digital  tools  to  be  developed  under  article  18a(5)  relevant  to  electricity  grid 
operation and optimisation.  

4.2. 

Other administrative expenditure 

HEADING 7 of the multiannual financial framework 

DG Energy: The costs for missions and meetings for each post are foreseen to be around EUR 6 000 

per person per year 

Outside HEADING 7 of the multiannual financial framework 

EN 

19 

  EN