Resolutsiooni liik: Riigikantselei resolutsioon Viide: Kliimaministeerium /  / ; Riigikantselei /  / 2-5/26-01545

Resolutsiooni teema: Elektrisüsteemi kulude vähendamine ning elektrifitseerimise ja digitaliseerimise edendamine

Adressaat: Kliimaministeerium Ülesanne: Tulenevalt Riigikogu kodu- ja töökorra seaduse § 152` lg 1 p 2 ning Vabariigi Valitsuse reglemendi § 3 lg 4 palun valmistada ette Vabariigi Valitsuse seisukoha ja otsuse eelnõu järgneva algatuse kohta, kaasates seejuures olulisi huvigruppe ja osapooli: - 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, COM(2026)600. EISi toimiku nr 26-0322 Tähtaeg: 25.09.2026

Adressaat: Justiits- ja Digiministeerium, Majandus- ja Kommunikatsiooniministeerium, Rahandusministeerium Ülesanne: Palun esitada oma sisend Kliimaministeeriumile seisukohtade kujundamiseks antud eelnõu kohta (eelnõude infosüsteemi (EIS) kaudu). Tähtaeg: 11.09.2026

Lisainfo: Eelnõu on kavas arutada valitsuse 08.10.2026 istungil ja Vabariigi Valitsuse reglemendi § 6 lg 6 kohaselt sellele eelneval nädalal (30.09.2026) EL koordinatsioonikogus. Esialgsed materjalid EL koordinatsioonikoguks palume esitada hiljemalt 25.09.2026.

Kinnitaja: Merli Vahar, Euroopa Liidu asjade direktori asetäitja Kinnitamise kuupäev: 06.08.2026 Resolutsiooni koostaja: Mari-Ann Järve [email protected],  

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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)

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EXPLANATORY MEMORANDUM

1. 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.

1 COM/2025/79. 2 C/2026/126. 3 COM/2025/1005. 4 COM/2026/115. 5 COM/2026/501. 6 COM/2026/370. 7 Article 3 point (q) of Regulation (EU) 2019/943. 8 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

9 ACER (2026) Key developments in EU electricity and gas markets

https://www.acer.europa.eu/monitoring/electricity-gas-key-developments-2026. 10 ACER (2024) Retail market Monitoring report:

https://www.acer.europa.eu/sites/default/files/documents/Publications/ACER-

CEER_2024_MMR_Retail.pdf. 11 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.” 12 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 functioningof 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

13 ACER/CEER Energy Retail Market Monitoring Report (November 2025); Country Fiches (July 2025). 14 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). 15 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

16 Fraunhofer ISI, Fraunhofer IEG, Guidehouse, REKK, Study on network development planning, tariff

structures and connection requests for electricity distribution grids, September

2025, https://op.europa.eu/en/publication-detail/-/publication/08843617-9cf8-11f0-97c8-01aa75ed71a1.

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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.

17 Commission Notice, ‘Guidance on efficient and timely grid connections’ (C/2025/6703). 18 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 COM(2026)115 final. 20 COM(2026)850 final. 21 Regulation (EU) 2023/2854. 22 Regulation (EU) 2024/1689. 23 Directive (EU) 2019/944, Regulation (EU) 2019/943.

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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.

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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

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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 ACER report on network tariff practices of 26 March 2025, page 75.

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

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• 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.

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differences in the electrification incentives in energy taxation frameworks of Member States

to be reduced.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER

CONSULTATIONS AND IMPACT ASSESSMENTS

• 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 en-20260319-european-council-conclusions.pdf. 28 7fac9eea-5717-4182-a368-bd68c427ff4c_en. 29 https://ec.europa.eu/commission/presscorner/detail/en/qanda_26_902.

EN 13 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 Fraunhofer ISI, Fraunhofer IEG, Guidehouse, REKK, Study on network development planning, tariff

structures and connection requests for electricity distribution grids, September

2025, https://op.europa.eu/en/publication-detail/-/publication/08843617-9cf8-11f0-97c8-01aa75ed71a1. 31 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.

EN 14 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 15 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.

EN 16 EN

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

or early involvement of stakeholders in the cross-sectorial network planning.

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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) 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.

(2) 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

EN 18 EN

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.

(4) 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.

(5) 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.

(6) 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.

(7) 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

EN 19 EN

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.

(9) 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.

(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

EN 20 EN

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

and temporary and provides overall benefits through the acceleration of

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.

(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

EN 21 EN

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 OJ L 123, 12.5.2016, p. 1. 2 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). 3 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).

EN 22 EN

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, real-time measurements 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.

(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 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). 5 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).

EN 23 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 compatibility of cooperation projects contributing to the

achievement of Union priorities with antitrust rules, in particular projects related to

innovation, decarbonisation and AI development

(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 24 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 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). 7 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). 8 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). 9 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).

EN 25 EN

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.

(28) 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 26 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 Communication from the Commission – Guidelines on State aid for climate, environmental protection

and energy 2022, C/2022/481. 12 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 27 EN

Article 1

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

(1) Article 18 is replaced by the following:

‘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) 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;

(b) 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;

(c) 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);

(d) reflect the costs created by system users which withdraw electricity from and

inject electricity into the transmission or distribution networks;

(e) 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 28 EN

(i) not discriminate between system users connected at the distribution level and

system users connected at the transmission level;

(j) not disincentivise effective and timely third-party access, aggregation, energy

communities, self-generation, self-consumption, storage or the participation in

demand response;

(k) enable the integration of renewable energy through the development and

facilitation of non-fossil-flexibility such as storage and demand response, as

well as innovation, non-wire solutions, smart electricity grids and

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) 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;

(b) 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;

(c) 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 29 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) costs of metering services;

(f) costs of withdrawing or injecting reactive power outside the allowed limits;

and

(g) 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) the assessment underlying the detailed transmission and distribution tariff

methodologies;

(b) 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) the annual transmission and distribution tariff values for each system user

group;

(e) any studies relied upon for the available choices for tariff design;

(f) any special tariff regimes provided to system users together with a justification

for those regimes;

(g) 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 30 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 31 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:

EN 32 EN

(a) ensure compliance with confidentiality and security requirements;

(b) cooperate with relevant European stakeholders, including research and

technology organisations and industrial solutions providers to consolidate in

expertise, data and digital resources;

(c) 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 coordinated arrangement, draw up, and communicate to the

Commission, the following:

(a) 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;

(b) 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**;

(c) safety and cybersecurity measures to ensure the safe integration of developed

solutions within the internal processes and operations of transmission and

distribution system operators;

(d) 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.

EN 33 EN

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)

2016/797 and (EU) 2020/1828 (OJ L, 2024/1689, 12.7.2024, ELI:

http://data.europa.eu/eli/reg/2024/1689/oj).

***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.’;

EN 34 EN

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:

EN 35 EN

(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 For the Council

The President The President

EN 1 EN

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT - AGENCIES

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

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

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

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

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

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

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

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

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

2.2.1. Justification of the budget implementation method(s), the funding implementation

mechanism(s), the payment modalities and the control strategy proposed ................ 13

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

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

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

affected ....................................................................................................................... 16

EN 2 EN

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

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

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

4.2. Data ............................................................................................................................ 32

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

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

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

EN 3 EN

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

EN 4 EN

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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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, lifecycle management arrangements, and 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 interservice coordination, draft 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.

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.

EN 6 EN

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 JRCprovides 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.

EN 10 EN

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.

EN 12 EN

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.

EN 13 EN

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 these expenditures would follow the

Commission’s standard ex ante and ex post legal, financial and operational controls.

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,

EN 14 EN

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

EN 15 EN

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 16 EN

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. 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.

Heading of

multiannu

al financial

framework

Budget line Type of

expenditur

e Contribution

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 Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 2 EFTA: European Free Trade Association. 3 Candidate countries and, where applicable, potential candidates from the Western Balkans.

EN 17 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

EUR million (to three decimal places)

Heading of multiannual financial framework Number 1

DG: JRC Year Year Year Year TOTAL MFF

2021-2027

TOTAL MFF

2028-2034 2024 2025 2026 2027

Operational appropriations

Budget line Commitments (1a) 0.000

Payments (2a) 0.000

Budget line Commitments (1b) 0.000

Payments (2b) 0.000

Appropriations of an administrative nature financed from the envelope of specific programmes

Budget line 01 01 01 Support

expenditure for Horizon Europe (3) 0.255 0.255 1.782

TOTAL appropriations

for DG JRC

Commitments =1a+1b+3 0.000 0.000 0.000 0.255 0.255 1.782

Payments =2a+2b+3 0.000 0.000 0.000 0.255 0.255 1.782

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.

EUR million (to three decimal places)

ACER Year

2024

Year

2025

Year

2026

Year

2027

TOTAL

MFF 2021-

2027

TOTAL

MFF 2028-

2034

EN 18 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.

Year Year Year Year

TOTAL MFF 2021-2027 TOTAL MFF 2028-2034 2024 2025 2026 2027

TOTAL operational appropriations

(including contribution to decentralised

agency)

Commitments (4) 0.000 0.000 0.000 0.391 0.391 10.039

Payments (5) 0.000 0.000 0.000 0.391 0.391 10.039

TOTAL appropriations of an administrative nature

financed from the envelope for specific programmes (6) 0.000 0.000 0.000 0.255 0.255 1.782

TOTAL appropriations under

HEADING 1 Commitments =4+6 0.000 0.000 0.000 0.645 0.645 11.821

of the multiannual financial

framework Payments =5+6 0.000 0.000 0.000 0.645 0.645 11.821

Year Year Year Year TOTAL

MFF 2021-

2027

TOTAL

MFF 2028-

2034 2024 2025 2026 2027

• TOTAL operational appropriations (all

operational headings)

Commitments (4) 0.000 0.000 0.000 0.391 0.391 10.039

Payments (5) 0.000 0.000 0.000 0.391 0.391 10.039

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

EN 19 EN

• TOTAL appropriations of an administrative nature

financed from the envelope for specific programmes (all

operational headings)

(6) 0.000 0.000 0.000 0.255 0.255 1.782

TOTAL appropriations under

Headings 1 to 6 Commitments =4+6 0.000 0.000 0.000 0.645 0.391 11.821

of the multiannual financial framework

(Reference amount) Payments =5+6 0.000 0.000 0.000 0.645 0.391 11.821

Heading of multiannual financial framework 7 ‘Administrative expenditure’

DG: ENER Year Year Year Year TOTAL

MFF

2021-2027

TOTAL

MFF 2028-

2034 2024 2025 2026 2027

 Human resources 0.000 0.000 0.000 0.404 0.404 2.828

 Other administrative expenditure 0.000 0.000 0.000 0.018 0.018 0.126

TOTAL DG ENER 0.000 0.000 0.000 0.422 0.422 2.954

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

EUR million (to three decimal places)

Year Year Year Year TOTAL

MFF 2021-

2027

TOTAL

MFF 2028-

2034 2024 2025 2026 2027

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

Commitment appropriations in EUR million (to three decimal places)

Indicate Year Year Year Year Enter as many years as necessary to show the TOTAL

EN 20 EN

objectives and

outputs



2024 2025 2026 2027 duration of the impact (see Section 1.6)

OUTPUTS

Type2

Avera

ge

cost

N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost Total

No

Total

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 Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 3 As described in Section 1.3.2. ‘Specific objective(s)’

EN 21 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 Year Year Year Year TOTAL

2021 -

2027

TOTAL

MFF

2028-2034 2024 2025 2026 2027

HEADING 7

Human resources 0.000 0.000 0.000 0.404 0.404 2.828

Other administrative expenditure 0.000 0.000 0.000 0.018 0.018 0.126

Subtotal HEADING 7 0.000 0.000 0.000 0.422 0.422 2.954

Outside HEADING 7

Human resources 0.000 0.000 0.000 0.255 0.255 1.782

Other expenditure of an administrative nature 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal outside HEADING 7 0.000 0.000 0.000 0.255 0.255 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 22 EN

3.2.4.1. Financed from voted budget

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

VOTED APPROPRIATIONS Year Year Year Year Post

2027 2024 2025 2026 2027

 Establishment plan posts (officials and temporary staff)

20 01 02 01 (Headquarters and Commission’s Representation Offices) 0 0 0 1 1

20 01 02 03 (EU Delegations) 0 0 0 0 0

01 01 01 01 (Indirect research) 0 0 0 0 0

01 01 01 11 (Direct research) 0 0 0 0.5 0.5

Other budget lines (specify) 0 0 0 0 0

• External staff (in FTEs)

20 02 01 (AC, END from the ‘global envelope’) 0 0 0 2 2

20 02 03 (AC, AL, END and JPD in the EU Delegations) 0 0 0 0 0

Admin. Support

line [XX.01.YY.YY]

- at Headquarters 0 0 0 0 0

- in EU Delegations 0 0 0 0 0

01 01 01 02 (AC, END - Indirect research) 0 0 0 0 0

01 01 01 12 (AC, END - Direct research) 0 0 0 1.5 1.5

Other budget lines (specify) - Heading 7 0 0 0 0 0

Other budget lines (specify) - Outside Heading 7 0 0 0 0 0

TOTAL 0 0 0 5 5

Current staff

available in the

Commission

services

Additional staff*

To be financed

under Heading

7 / Research

To be financed

from BA line

To be financed

from fees

Establishment plan

posts

1 DG ENER

0.5 AD DG JRC

N/A

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 23 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 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 communicated under Article

18a(5), including the assessment of governance,

participation, technical, operational, transparency and

cybersecurity elements.

- 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 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

EN 24 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

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 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

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 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 25 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

implementing act. 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.

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.

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 26 EN

TOTAL Digital and IT appropriations

Year Year Year Year TOTAL

MFF

2021 -

2027 2024 2025 2026 2027

HEADING 7

IT expenditure (corporate) 0.000 0.000 0.000 0.000 0.000

Subtotal HEADING 7 0.000 0.000 0.000 0.000 0.000

Outside HEADING 7

Policy IT expenditure on operational programmes

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 27 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 0 0 0 0 0

Contract agents 2 2

Seconded national experts

Contract agents and seconded

national experts subtotal 0 0 0 2 2

TOTAL staff 0 0 0 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 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. 2 This figure includes the accumulated effect of 2% annual indexation.

EN 28 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) 0 0 0 0 0 0

Contract agents 0 0 0 2 2 2

Seconded national experts 0 0 0 0 0 0

Total staff 0 0 0 2 2 2

Appropriations covered by the EU

budget 0.000 0.000 0.000 0.391 0.391 10.039

Appropriations covered by fees

(if applicable) 0.000 0.000 0.000 0.000 0.000 0.000

Appropriations co-financed

(if applicable) 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 29 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:

 on own resources

 on other revenue

 please indicate, if the revenue is assigned to expenditure lines

EUR million (to three decimal places)

Budget revenue line:

Appropriations

available for the

current financial

year

Impact of the proposal/initiative3

Year 2024 Year 2025 Year 2026 Year 2027

Article ………….

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 30 EN

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

Actors affected or

concerned by the

requirement

High-level Processes Categories

Requirement 1 (R1) – Article

18a(2), (3), (6) and Article 61.5a:

Smart grid indicators and related

governance framework

This requirement concerns the

establishment of a Union-level

framework for smart grid indicators,

including an ACER recommendation,

periodic Union-level progress

reporting, and the possibility for the

Commission to adopt implementing

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.

ACER,

The Commission,

National regulatory

authorities

Transmission system

operators and distribution

system operators.

Monitoring, reporting,

regulatory assessment

and development of

harmonised

methodologies.

Data.

Requirement 2 (R2) – Article

18a(4): Management and

exchange of grid data for smart

grid operation

This requirement concerns the

obligation for transmission system

operators and distribution system

operators to manage and exchange grid

data in a harmonised manner so as to

enable the development, deployment

and effective use of smart electricity

Transmission system

operators, distribution

system operators and,

indirectly, other relevant

actors involved in system

operation and flexibility

integration.

Data exchange, network

operation, monitoring,

optimisation and

coordination of

electricity system

operation.

Data

Process

digitalisation

and

automation.

EN 31 EN

grids and of innovative data-driven

solutions supporting the monitoring,

optimisation and coordination of

network operation. It is digitally

relevant because it governs the

exchange and use of network, market

and operational data and supports the

digitalisation of system operation.

Requirement 3 (R3) – Article

18a(5) and Article 61.5b:

Voluntary secure electricity grid

data exchange framework for

innovation

This requirement concerns the

voluntary establishment of a secure

electricity grid data exchange

framework, jointly facilitated by the

ENTSO for Electricity and the EU DSO

Entity, to support the development,

testing, integration and deployment of

innovative technologies for grid

operation and optimisation, as well as

the related empowerment for the

Commission to adopt implementing

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 data models, formats,

ontologies and interfaces, as well as

digital arrangements for testing,

benchmarking, validation,

interoperability and lifecycle

management of digital tools.

Transmission system

operators, distribution

system operators, the

ENTSO for Electricity,

the EU DSO Entity, the

Commission, and

relevant participating

stakeholders such as

research and technology

organisations and

industrial solutions

providers.

Data sharing, secure data

access, testing and

validation of digital

tools, interoperability

governance, and

innovation support.

Data, digital

solutions, and

process

digitalisation

and

automation.

EN 32 EN

4.2. Data

High-level description of the data in scope

Type of data Reference to the

requirement(s)

Standard and/or specification

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.

Requirement 1 (smart grid

indicators)

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.

The 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.

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.

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 data concerned are 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. 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)

The proposal provides that

Commission implementing acts

may specify or update the data

models, formats, ontologies and

interfaces relevant for the

EN 33 EN

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.

framework, together with

conditions on transparency,

accountability, cybersecurity and

risk mitigation.

Alignment with the European Data Strategy

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

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 34 EN

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)

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.

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

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)

Grid operators Grid operators 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

EN 35 EN

including the

integration of

demand response,

renewable energy

sources and non-

fossil flexibility

exchanges to

periodic sharing of

static or planning-

related data.

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)

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.

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.

Subsequent data

exchanges would

depend on

participation in the

framework and on

the concrete

research, testing,

benchmarking and

deployment

activities carried

out within it.

EN 36 EN

4.3. Digital solutions

High-level description of digital solutions

Digital

solution

Reference(s)

to the

requirement(s)

Main mandated

functionalities Responsible body

How is

accessibility

catered for?

How is reusability

considered?

Use of AI

technologies

(if

applicable)

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.

ACER is responsible

for the Union-level

recommendation and

progress report.

National regulatory

authorities are

responsible for national

monitoring and

reporting.

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.

At present,

the proposal

does not

require the

use of AI for

this digital

solution.

EN 37 EN

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-

EN 38 EN

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.

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.

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.

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

EN 39 EN

Digital solution #1

Digital and/or sectorial policy (when these are

applicable)

Explanation on how it aligns

AI Act Any future use of AI-based analytical tools by ACER or national regulatory

authorities would need to comply with the AI Act.

EU Cybersecurity framework The solution must also remain consistent with the general Union framework on data

protection and cybersecurity.

eIDAS No specific link

Single Digital Gateway and IMI No specific link

Others

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 Where such tools are used, they would need to comply with the applicable Union

framework, in particular the AI Act where relevant

EU Cybersecurity framework 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 No specific link

Single Digital Gateway and IMI No specific link

EN 40 EN

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 No specific link

Single Digital Gateway and IMI No specific link

Others

4.4.Interoperability assessment

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 41 EN

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)

Actors to be

involved

(if applicable)

Expected timeline

(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.

Requirement 1 (smart

grid indicators)

The Commission’s

role would be to

assess the need for

further harmonisation

and, where

appropriate, adopt

implementing acts.

The actors involved

would include

ACER, the

Commission,

national regulatory

authorities,

transmission

system operators,

distribution system

operators and

relevant

stakeholders.

The first milestone

would be ACER’s

recommendation within

one year after entry

into force, followed by

possible implementing

acts at a later stage if

needed.

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

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.

The actors involved

would include

transmission

system operators,

distribution system

operators, national

regulatory

authorities and,

where relevant,

ENTSO for

Implementation would

begin from the date of

application of the

Regulation and

proceed progressively

as operators adapt

existing systems and

processes.

EN 42 EN

primarily an operational implementation

measure at sector level rather than a

measure to be specified by a Commission

act.

Electricity and the

EU DSO Entity.

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.

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.

EN 1 EN

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. NUMBER and COST of HUMAN RESOURCES CONSIDERED NECESSARY

2. COST of OTHER ADMINISTRATIVE EXPENDITURE

3. TOTAL ADMINISTRATIVE COSTS

4. METHODS of CALCULATION USED for ESTIMATING COSTS

4.1. Human resources

4.2. Other administrative expenditure

EN 2 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

EUR million (to three decimal places)

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)

20 01 02 01 - Headquarters and Representation offices

AD 0.000 0.000 0.000 1 0.194 1 0.194 1 0.194

AST 0.000 0.000 0.000 0.000 0 0.000 0 0.000

20 01 02 03 - Union Delegations

AD 0.000 0.000 0.000 0.000 0 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000 0 0.000

External staff

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

AC 0.000 0.000 0.000 2 0.210 2 0.210 2 0.210

END 0.000 0.000 0.000 0.000 0 0.000 0 0.000

20 02 03 – External personnel - Union Delegations

AC 0.000 0.000 0.000 0.000 0 0.000 0 0.000

AL 0.000 0.000 0.000 0.000 0 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000 0 0.000

JPD 0.000 0.000 0.000 0.000 0 0.000 0 0.000

EN 3 EN

Other HR related budget lines

(specify)

AC 0.000 0.000 0.000 0.000 0 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000 0 0.000

Subtotal HR – HEADING 7

0 0.000 0 0.000 0 0.000 3 0.404 3 0.404 3 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

AD 0.000 0.000 0.000 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000

01 01 01 11 Direct Research

AD 0.000 0.000 0.000 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000

Other (please specify)

AD 0.000 0.000 0.000 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000

External staff

External staff from operational appropriations

- at Headquarters

AC 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

- in Union delegations

AC 0.000 0.000 0.000 0.000 0 0.000

AL 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

JPD 0 0.000

EN 4 EN

01 01 01 02 Indirect Research

AC 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

01 01 01 12 Direct research

AC 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

Other budget lines HR related (specify)

AC 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

Subtotal HR – Outside HEADING 7 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

Total HR (all MFF Headings) 0 0.000 0 0.000 0 0.000 3 0.404 3 0.404 3 0.404

EN 5 EN

1.1.2 DG JRC

EUR million (to three decimal places)

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)

20 01 02 01 - Headquarters and Representation offices

AD 0.000 0.000 0.000 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000

20 01 02 03 - Union Delegations

AD 0.000 0.000 0.000 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000

External staff

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

AC 0.000 0.000 0.000 0.000 0.000

END 0.000 0.000 0.000 0.000 0 0.000

20 02 03 – External personnel - Union Delegations

AC 0.000 0.000 0.000 0.000 0 0.000

AL 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

JPD 0.000 0.000 0.000 0.000 0 0.000

Other HR related budget lines

AC 0.000 0.000 0.000 0.000 0 0.000

EN 6 EN

(specify) END 0.000 0.000 0.000 0.000 0 0.000 0 0.000

Subtotal HR – HEADING 7

0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

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

AD 0.000 0.000 0.000 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000

01 01 01 11 Direct Research

AD 0.000 0.000 0.000 0.5 0.097 0.5 0.097 0.5 0.679

AST 0.000 0.000 0.000 0.000 0 0.000

Other (please specify)

AD 0.000 0.000 0.000 0.000 0 0.000

AST 0.000 0.000 0.000 0.000 0 0.000

External staff

External staff from operational appropriations

- at Headquarters

AC 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

- in Union delegations

AC 0.000 0.000 0.000 0.000 0 0.000

AL 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

JPD 0 0.000

EN 7 EN

01 01 01 02 Indirect Research

AC 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

01 01 01 12 Direct research

AC 0.000 0.000 0.000 1.5 0.158 1.5 0.158 1.5 1.103

END 0.000 0.000 0.000 0.000 0 0.000

Other budget lines HR related (specify)

AC 0.000 0.000 0.000 0.000 0 0.000

END 0.000 0.000 0.000 0.000 0 0.000

Subtotal HR – Outside HEADING 7 0 0.000 0 0.000 0 0.000 2 0.255 2 0.255 2 1.782

Total HR (all MFF Headings) 0 0.000 0 0.000 0 0.000 2 0.255 2 0.255 2 1.782

EN 8 EN

1.1.3 Total

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)

20 01 02 01 - Headquarters and Representation offices

AD 0 0.000 0 0.000 0 0.000 1 0.194 1 0.194 11.358

AST 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

20 01 02 03 - Union Delegations

AD 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

AST 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

External staff

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

AC 0 0.000 0 0.000 0 0.000 2 0.210 2 0.210 21.470

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

20 02 03 – External personnel - Union Delegations

AC 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

AL 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

JPD 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

Other HR related budget lines

(specify)

AC 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

Subtotal HR – HEADING 7 0 0.000 0 0.000 0 0.000 3 0.404 3 0.404 3 2.828

EN 9 EN

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

AD 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

AST 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

01 01 01 11 Direct Research

AD 0 0.000 0 0.000 0 0.000 0.5 0.097 0.5 0.097 0.5 0.679

AST 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

Other (please specify)

AD 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

AST 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

External staff

External staff from operational appropriations

- at Headquarters

AC 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

- in Union delegations

AC 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

AL 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

JPD 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

01 01 01 02 Indirect Research

AC 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

01 01 01 12 Direct research AC 0 0.000 0 0.000 0 0.000 1.5 0.158 1.5 0.158 1.5 1.103

EN 10 EN

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

Other budget lines HR related (specify)

AC 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

END 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

Subtotal HR – Outside HEADING 7 0 0.000 0 0.000 0 0.000 2 0.255 2 0.255 2 1.782

Total HR (all MFF Headings) 0 0.000 0 0.000 0 0.000 5 0.659 5 0.659 5 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

EUR million (to three decimal places)

HEADING 7 of the multiannual financial framework

2024 2025 2026 2027 TOTAL

2021-2027 TOTAL 2028-

2034

At headquarters or within EU territory:

20 02 06 01 - Mission and representation expenses 0.018 0.018 0.126

20 02 06 02 - Conference and meeting costs 0.000

20 02 06 03 - Committees 0.000

20 02 06 04 - Studies and consultations 0.000

20 04 – IT expenditure (corporate)1 0.000

Other budget lines non-HR related (specify where necessary) 0.000

In Union delegations

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 11 EN

20 02 07 01 - Missions, conferences and representation expenses 0.000

20 02 07 02 - Further training of staff 0.000

20 03 05 – Infrastructure and logistics 0.000

Other budget lines non-HR related (specify where necessary) 0.000

Subtotal Other - HEADING 7 of the multiannual financial framework

0.000 0.000 0.000 0.018 0.018 0.126

EUR million (to three decimal places)

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):

0.000 0.000 0.000 0.000 0.000

- at Headquarters 0.000

- in Union delegations 0.000

Other management expenditure for research 0.000

Policy IT expenditure on operational programmes2 0.000

Corporate IT expenditure on operational programmes3 0.000

Other budget lines non-HR related (specify where necessary) 0.000

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

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 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).

3 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 12 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 0.000 0.000 0.000 0.018 0.018 0.126

20 02 06 02 - Conference and meeting costs 0.000 0.000 0.000 0.000 0.000

20 02 06 03 - Committees 0.000 0.000 0.000 0.000 0.000

20 02 06 04 - Studies and consultations 0.000 0.000 0.000 0.000 0.000

20 04 – IT expenditure (corporate)4 0.000 0.000 0.000 0.000 0.000

Other budget lines non-HR related (specify where necessary) 0.000 0.000 0.000 0.000 0.000

In Union delegations

20 02 07 01 - Missions, conferences and representation expenses 0.000 0.000 0.000 0.000 0.000

20 02 07 02 - Further training of staff 0.000 0.000 0.000 0.000 0.000

20 03 05 – Infrastructure and logistics 0.000 0.000 0.000 0.000 0.000

Other budget lines non-HR related (specify where necessary) 0.000 0.000 0.000 0.000 0.000

Subtotal Other - HEADING 7 of the multiannual financial framework

0.000 0.000 0.000 0.018 0.018 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 13 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):

0.000 0.000 0.000 0.000 0.000

- at Headquarters 0.000 0.000 0.000 0.000 0.000

- in Union delegations 0.000 0.000 0.000 0.000 0.000

Other management expenditure for research 0.000 0.000 0.000 0.000 0.000

Policy IT expenditure on operational programmes5 0.000 0.000 0.000 0.000 0.000

Corporate IT expenditure on operational programmes6 0.000 0.000 0.000 0.000 0.000

Other budget lines non-HR related (specify where necessary) 0.000 0.000 0.000 0.000 0.000

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

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

5 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).

6 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 14 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 TOTAL 2021- 2027

TOTAL 2028- 2034

Heading 7 - Human Resources 0.000 0.000 0.000 0,404 0,404 2,828

Heading 7 – Other administrative expenditure 0.000 0.000 0.000 0,180 0,180 0,126

Sub-total Heading 7 0.000 0.000 0.000 0,584 0,584 2,954

Outside Heading 7 – Human Resources 0.000 0.000 0.000 0,000 0,000 0,000

Outside Heading 7 – Other administrative expenditure 0.000 0.000 0.000 0,000 0,000 0,000

Sub-total Other Headings 0.000 0.000 0.000 0,000 0,000 0,000

TOTAL HEADING 7 and Outside HEADING 7 0.000 0.000 0.000 0,584 0,584 2,954

3.1.2. DG JRC

Summary 2024 2025 2026 2027 TOTAL 2021- 2027

TOTAL 2028- 2034

Heading 7 - Human Resources 0.000 0.000 0.000 0.000 0.000 0.000

Heading 7 – Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000

Sub-total Heading 7 0.000 0.000 0.000 0.000 0.000 0.000

Outside Heading 7 – Human Resources 0.000 0.000 0.000 0.255 0.255 1.782

Outside Heading 7 – Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000

Sub-total Other Headings 0.000 0.000 0.000 0.255 0.255 1.782

TOTAL HEADING 7 and Outside HEADING 7 0.000 0.000 0.000 0.255 0.255 1.782

EN 15 EN

3.1.3. TOTAL

Summary 2024 2025 2026 2027 TOTAL 2021- 2027

TOTAL 2028- 2034

Heading 7 - Human Resources 0.000 0.000 0.000 0.404 0.404 2.828

Heading 7 – Other administrative expenditure 0.000 0.000 0.000 0.018 0.018 0.126

Sub-total Heading 7 0.000 0.000 0.000 0.422 0.422 2.954

Outside Heading 7 – Human Resources 0.000 0.000 0.000 0.255 0.255 1.782

Outside Heading 7 – Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000

Sub-total Other Headings 0.000 0.000 0.000 0.255 0.255 1.782

TOTAL HEADING 7 and Outside HEADING 7 0.000 0.000 0.000 0.677 0.677 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 16 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.

Existing staff are already operating at full capacity and are overextended by concurrent policy

priorities and the energy crisis, leaving very limited scope 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.

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

(with an effort of 2 FTEs), the JRC will redeploy its internal resources.

EN 17 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

(CA, SNEs,

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

communicated under Article 18a(5), including the assessment of governance,

participation, technical, operational, transparency and cybersecurity elements.

- 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 18 EN

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:

- 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

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 19 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