Executive summary
Pursuant to Article 70 (3) of Regulation (EU) 2024/1789 (‘recast Gas Regulation’)1, ACER is required to provide the European Commission with a reasoned opinion within three months of the date of receipt of a request for a derogation submitted by a national regulatory authority in line with the aforementioned provision.
On 2 February 2026, the Estonian Competition Authority (‘ECA’) submitted a derogation request both to the European Commission and to ACER asking for a derogation from the application of all the gas Network Codes and Guidelines with reference to the Luhamaa interconnection point with the Russian Federation for an undetermined period, yet conditioned on that the current prohibition to import gas from Russian origin remains in place.
The Estonian gas transportation network is linked to the network of the Russian Federation through three points, i.e. Narva, Värska, Luhamaa. Only the Luhamaa interconnection point is still operational. Its sole purpose is to allow gas originating from the Russian Federation reaching the Kaliningrad region as a backup route.
Conclusion
ECA's derogation request pertains to all EU gas Network Codes and Guidelines.
ACER acknowledges the existence of an exceptional situation in Estonia, in which ECA is required to enforce the prohibition to import gas from Russia to Estonia and to ensure that gas of Russian origin reaches exclusively the Kaliningrad region via the Luhamaa entry point.
ACER notes that Directive 2024/17882 (‘recast Gas Directive) and the recast Gas Regulation aim at creating a fully operational Union internal market for natural gas. In the case under consideration, the gas flowing from the Russian Federation via the Luhamaa entry point is not destined to the internal market itself, as it is transported through the infrastructure of Estonia.
The regulatory framework established by ECA deviates from the full set of the respective EU network codes and guidelines to correctly reflect the specific circumstances affecting the Luhamaa entry point.
ACER acknowledges the limited usage of such interconnection point while also noticing that implementing the provisions of the TAR NC in the same way as they apply to the other points of the Estonian gas network and the provisions of INT NC Article 16 would further support the avoidance of cross-subsidisation and guarantee equal treatment of network users of the Union internal gas market.
1. Background
1 Regulation (EU) 2024/1789 extends the application of network codes and guidelines to the entry points from, and exit points to, third countries, namely countries that are not members of the European Union. The principle embedded in the Regulation at issue is the enhancement of the internal gas market by supporting cross-border trade and efficient operations also at the borders with third countries. Applying EU network codes at these border points helps to avoid market fragmentation and ensures the seamless functioning of the internal market, in particular by guaranteeing consistent rules, non-discriminatory access and efficient cross-border trading conditions, even at the borders of the Union.
2 Article 70(2)(d) of the recast Gas Regulation lays down that network codes and guidelines, adopted in accordance with paragraph 1 of the same provision, shall apply to all interconnection points within the Union and to entry points from and exit points to third countries from 5 August 2026.
3 Furthermore, Article 70(3) thereof states that until 5 February 2026 national regulatory authorities (NRAs) may submit a request to the European Commission and ACER for a derogation from the application of the network codes and guidelines, referred to in the aforementioned Article 70(1), at entry points from and exit points to third countries pursuant to Article 70(2)(d).
4 ACER shall provide a reasoned opinion to the European Commission within three months of the date of receipt of the request for a derogation. In its reasoned opinion ACER provides an assessment on the request submitted by a NRA. The European Commission shall adopt a decision on the request for a derogation, taking into account ACER’s reasoned opinion and after assessing the existence of the conditions listed in Article 70(3)(a), (b) and (c).
5 Notably, whether the NRA has demonstrated that provisions of a network code or guideline cannot be effectively implemented at an entry point from or exit point to a third country; has taken measures to alleviate obstacles to such implementation; and has shown that the derogation is not detrimental to the internal gas market or to the security of supply of the Union or of a Member State. The derogation shall be limited to specific provisions that cannot be effectively implemented and shall be granted by the European Commission for a limited period of time.
6 Furthermore, Recital 95 of the recast Gas Regulation acknowledges that specific circumstances, including the existence of long-term contractual arrangements or legal difficulties in establishing dispute resolution procedures with transmission system operators or natural gas suppliers established in third countries, may prevent the effective application of network codes in the short term.
7 This Opinion is addressed to the European Commission and issued in accordance with Article 70(3) of the recast Gas Regulation.
8
2. Procedure
9 On 2 February 2026 ACER received from the Estonian Competition Authority (‘ECA;) in written form via electronic post a request for a derogation from the application of Network Codes and Guidelines pursuant to Article 70 (3) of the Gas Regulation.
10 Upon the submission of the derogation request, and after an in-depth analysis thereof, ACER has interacted with ECA to further clarify elements included in the derogation request. ACER has thus taken due account of the additional information provided by the NRA in its assessment.
11 On 1 April 2026 ACER shared the draft version of the reasoned opinion with the involved NRAs for a factual check and to verify the completeness of the information provided.
12 On XX ACER sent this reasoned opinion to the European Commission in accordance with Article 70(3) of the recast Gas Regulation following the prescribed timeline.
3. Summary of Derogation Request
13 ECA’s derogation request concerns the application of all EU Gas Network Codes and Guidelines at the Luhamaa interconnection point, which connects the gas transmission system of Estonia with the gas transmission system of the Russian Federation, and, as ECA states, is only used as a back-up route for transit purposes from the Russian Federation to the Russian Federation’s Kaliningrad region neighbouring Lithuania and Poland.
14 According to ECA’s derogation request, it is not possible that the Estonian TSO, Elering SA (‘Elering’), cooperates with the Russian TSO - nor with any Russian-controlled entity - due to safety and security reasons deriving from the Russian invasion of Ukraine, and the relating provisions of the Estonian legislation forbidding the import of gas of Russian origin in Estonia3 since 1 January 2023.
15 ECA informs that the Estonian gas transportation network is linked to the network of the Russian Federation through three points, i.e. Narva, Värska, and Luhamaa. ECA states that in 2024 it had removed the Narva and Värska interconnection points from the relevant regional cooperation arrangements due to their inactivity4, whereas the Luhamaa interconnection point remains operational, as backup line, with the sole purpose of allowing gas originating from the Russian Federation reaching the Kaliningrad region of the Russian Federation.
16 ECA therefore requests a derogation from the application of all gas Network Codes and Guidelines at the Luhamaa interconnection point for un undetermined period yet conditioned on that the current prohibition to import gas from Russian origin remains in place.
17 Furthermore, ECA seeks clarification from the European Commission as to whether, if a derogation were to be granted for the Luhamaa interconnection point and changes were subsequently made to the type of capacity products offered at that point, such operational changes would fall within the scope of the existing derogation or whether a supplementary derogation request would be required notwithstanding the expiry of the initial application deadline.
18 In addition, ECA requests clarification from the European Commission regarding the possibility of requesting a derogation for the Narva and Värska interconnection points in the future, should those interconnection points become operational again. In this reasoned opinion, ACER will not analyse this additional element included in ECA request to the European Commission.
4. ACER assessment
4.1. Application of Union Gas network codes and Guidelines at the Luhamaa interconnection point
19 The Luhamaa interconnection point has two sides, i.e. an entry side and an exit side. As stated in ECA’s derogation request, since 2023 such interconnection point is operational solely to ensure that gas originating from the Russian Federation is transported to the Russian Federation’s region of Kaliningrad.
20 Given the absence of any prohibition to export gas from Estonia to Russia, both under the Estonian law and under Regulation (EU) 2026/2165, ACER is of the opinion that all the provisions of EU gas network codes and guidelines not requiring mutual implementation with the adjacent TSO6 shall apply at Luhamaa exit point, should the point become operational again.
21 Therefore, ACER considers ECA’s derogation request as solely related to the entry side of the Luhamaa interconnection point.
22 In this section, ACER analyses the current framework on capacity allocation, balancing, congestion management, interoperability, and tariffs applying at the Luhamaa entry point.
Capacity allocation
23 ACER understands that only firm capacity products are offered at the Luhamaa entry point. This transportation capacity is allocated exclusively through daily capacity products, and specifically through a transportation notification submitted by the third-country TSO at least two weeks prior to the day of delivery.
24 Such transportation notification must be confirmed by a third-party network user holding capacity both at the Luhamaa entry point and at the Kiemenai exit point (connecting the Latvian gas network to the Lithuanian gas network).
25 Therefore, this framework partially implements the provisions of Regulation (EU) 2017/459 (‘CAM NC’)7.
26 The capacity booked and the physical flows at the Luhamaa entry point have been scattered since 2023, with capacity only booked for a few days in 2023 and in 2024. Still, the Luhamaa entry point can potentially ensure the flow of high volumes of gas compared to the size of the Estonian network.
Balancing
27 ACER understand that all the provisions of Regulation (EU) 312/20148 (‘BAL NC’) apply at the Luhamaa entry point (including those established in BAL NC Chapter VI, i.e. regarding daily imbalance charges, and those established in Chapter VII, i.e. regarding neutrality arrangements), excluding the following two ad-hoc provisions.
28 First, the entry nominations and physical flows at Luhamaa entry point must equal the exit nominations and physical flows at the Kiemenai exit point. Second, the imbalance volume in the event of discrepancies between the gas nominated and the gas physically injected at the Luhamaa entry point is allocated on a monthly basis and pro-rata on the basis of the share of capacity bookings at the Luhamaa entry point (while at other interconnection points of the common zone, the imbalance volumes are allocated on a daily basis and pro-rata on the basis of the share of network users’ nominations).
Congestion management
29 None of the provisions established in Annex I, paragraph 2.2. of the recast Gas Regulation, i.e. regarding congestion management procedures in the event of contractual congestion, apply at Luhamaa entry point. ACER notes that it is unlikely that measures to manage contractual congestions would be needed at Luhamaa entry point under the current specific circumstances.
Interoperability
30 Articles 16 of Regulation (EU) 2015/7039 (‘INT NC’) establish that TSOs shall publish on their website for each interconnection point, with a frequency of at least once per hour during the gas day, the Wobbe-index and gross calorific value for gas directly entering their networks. This provision is not implemented at the Luhamaa entry point.
Tariffs
31 ACER understands that the implementation of Regulation (EU) 2017/46010 (‘TAR NC’) at the Luhamaa entry point was not completed by ECA when setting the reference price methodology for the Estonian gas network points for the regulatory period 2025-2029. In fact, in 2024 ECA foresaw a null level of bookings at such interconnection point.
32 Still, as Estonia is part of the FinEstLat gas zone, the tariff applying at the Luhamaa entry point is the same as the tariff applying at all the other entry points of the FinEstLat zone. For 2026, such tariff is set at 142.77 EUR/MWh/day, and the relating daily multiplier is set at 1.5.
4.2. ACER considerations
33 ACER acknowledges the existence of an exceptional situation in Estonia, in which ECA is required to ensure both that the prohibition on importing gas originating from the Russian Federation into Estonia is respected and that gas originating from the Russian Federation reaches the Kaliningrad region as a back-up route via the Luhamaa entry point.
34 ACER acknowledges the role and the need for ECA to guarantee that the gas system is kept safe and secure.
35 ACER notes that the recast Gas Directive and the recast Gas Regulation aim at creating a fully operational Union internal market for natural gas. In the case under consideration, the gas flowing from the Russian Federation via the Luhamaa entry point is not destined to the internal market itself, as it is transported through the infrastructure of Estonia.
36 The Luhamaa entry point can potentially guarantee high levels of gas flows compared to the size of the Estonian network. Such point is not a standalone element of the integrated Estonian natural gas network. Common infrastructure elements are used to provide both transmission services for transporting gas through the system from the Luhamaa entry point and services for transporting gas to end-users within the Union, making it difficult to establish a clear separation at asset level. Lacking such a clear separation of assets and costs, any exclusion of network costs would have to rely on assumptions and modelling. The modelling may not reduce the risk of cross-subsidisation and decreased cost-reflectivity, both ultimately affecting the internal market for natural gas. This which would pose a risk of cross-subsidisation and decreased cost-reflectivity, due to the non-application of the TAR NC provisions.
37 Therefore, while acknowledging that the transportation capacity is rarely booked and the corresponding network usage is low, ACER highlights the need to implementing at Luhamaa entry point the TAR NC in the same way as to all the other points of the Elering network.
5. Conclusions
38 ECA’s derogation request concerns the application of all EU Gas Network Codes and Guidelines at the Luhamaa interconnection point for an undetermined period yet conditioned on that the current prohibition to import gas from Russian origin remains in place.
39 ACER acknowledges the existence of an exceptional situation in Estonia, in which ECA is required to enforce the prohibition to import gas from Russia to Estonia and to ensure that gas of Russian origin reaches exclusively the Kaliningrad region as a back-up route through the Luhamaa entry point.
40 The regulatory framework established by ECA deviates from the full set of the EU network codes and guidelines to correctly reflect the specific circumstances affecting the Luhamaa entry point.
41 ACER acknowledges the limited usage of such interconnection point while also noticing that implementing the provisions of the TAR NC in the same way as they apply to the other points of the Estonian gas network and the provisions of INT NC Article 16 would further support the avoidance of cross-subsidisation and guarantee equal treatment of network users of the Union internal gas market.
This Opinion is addressed to the EU Commission
Done at Ljubljana, on XX Month YYYY.
Annex I: Legal Background
CHAPTER IV NETWORK CODES AND GUIDELINES
Article 70 Adoption of network codes and guidelines
1. The Commission may, subject to the empowerments laid down in Articles 71 to 74, adopt delegated or implementing acts. Such acts may either be adopted as network codes on the basis of text proposals developed by the ENTSO for Gas or the ENNOH, or, where so provided for in the priority list established pursuant to Article 71(3), by the EU DSO entity, where relevant in cooperation with the ENTSO for Gas, the ENNOH and ACER, pursuant to the procedure laid down in Articles 71, 72 and 73, or as guidelines pursuant to the procedure laid down in Article 74.
2. The network codes and guidelines shall:
(a) provide the minimum degree of harmonisation required to achieve the objectives of this Regulation;
(b) take into account regional specificities, where appropriate;
(c) not go beyond what is necessary for the purposes of point (a); and (d) apply to all interconnection points within the Union and entry points from and exit points to third countries from 5 August 2026.
3. Until 5 February 2026, regulatory authorities may submit a request to the Commission for a derogation from the application of the network codes and guidelines referred to in paragraph 1 at entry points from and exit points to third countries pursuant to paragraph 2, point (d). The request for a derogation shall be submitted simultaneously to the Commission and to ACER. Within three months of the date of receipt of the request for a derogation ACER shall provide a reasoned opinion to the Commission.
The Commission shall adopt a decision on the request for a derogation, taking into account ACER’s reasoned opinion and after assessing whether the regulatory authority has:
(a) demonstrated that a network code or guideline, or specific element of those acts, cannot be effectively implemented at entry points from and exit points to third countries; in the case of interconnection points with third countries which have the obligation to adapt to the Union energy acquis, including this Regulation, pursuant to an agreement concluded between the Union and those third countries, but where application or implementation has not been completed, the request for a derogation shall specify which provisions of this Regulation have not been effectively applied or implemented in the third country concerned or which technical rules or lack of technical rules in the third country impede the application of the specific provisions of the relevant network code or guideline;
(b) explained which measures were taken to alleviate the obstacles to the application of the specific provisions of the relevant network code or guideline;
(c) demonstrated that the derogation is not detrimental to the proper functioning of the internal market for natural gas, or to the security of supply of the Union or of a Member State. The derogation shall be limited to the specific provisions that cannot be effectively implemented and shall be granted for a limited period of time.