​​​​​​Network Codes and Guidelines are important instruments to organise access to the European Union's gas market. They aim at lowering barriers to entry for market participants, promoting market integration and improving market efficiency to the benefit of all EU citizens.

Why are the Network Codes important ?​

The gas industry is based on a vast interconnected physical network consisting of pipelines, LNG terminals, and gas storage facilities. Access to the EU gas market depends on access to the cross-border gas networks. To facilitate networks' access across EU Member States, the Union law foresaw to harmonise the relevant market rules in a number of Network Codes and Guidelines.

There are currently four gas Network Codes covering capacity allocation, tariffs, balancing rules, interoperability and data exchange rules, along with a Guideline on congestion management.

• Capacity Allocation: ensures auctioning of standard capacity products across the EU. The allocation rules foresee bundling of pipeline capacities at both sides of a border and selling them as a single product, thus simplifying trades between neighbouring systems.
• Harmonised Transmission Tariffs: provides transparent and harmonised measures for the charging methodologies, revenue recovery, reserve and payable price across the EU. These rules facilitate competition and promote the efficient use and development of the gas transmission network.
• Balancing Rules: market-based balancing rules financially incentivise network users to balance their positions with short-term products. In doing so, balancing rules contribute to the creation and development of short-term gas wholesale markets in the EU.
• Interoperability and Data Exchange Rules: create operational, technical, communication and business rules for the proper operation and interoperability of gas transmission systems.
• Congestion Guidelines​: facilitate the efficient use and maximisation of capacities in the gas transmission networks.​

​​​​​​Currently, gaseous fuels used in the European Union are dominated by natural gas, a fuel of fossil origin. Natural gas is composed mostly of methane and is consequently associated with greenhouse gas emissions of carbon dioxide when the natural gas is used as fuel or as methane when the natural gas is produced, processed, transported and used.

Decarbonisation of gas can be achieved by different ways and means. In other words, decarbonisation entails different ways by which the greenhouse gas emissions associated with the life cycle of natural gas from its source to the end user can be avoided, eradicated, or mitigated.

On 15 December 2021, the European Commission published its hydrogen and decarbonised gas market legislative proposals. See the ACER-CEER Position Paper on Key Regulatory Requirements to Achieve Gas Decarbonisation (20 December 2021).

​The Network Code on Emergency and Restoration (NC ER) provides the rules and standards for safeguarding a good level of operational security, preventing the propagation or deterioration of an incident to avoid a blackout, as well as allowing for an efficient and rapid restoration of the electricity system. The NC ER entered into force on 14 September 2017.

The NC ER's development was closely coordinated among ENTSO-E, ACER and the stakeholders.

As the NC ER does not foresee approvals by more than one regulatory authority, ACER will not be called upon to adopt decisions when regulatory authorities cannot agree on terms, conditions and methodologies. ​

​​​​​ACER and ENTSO-E have established the System Operations European Stakeholder Committee (SO ESC), to organise stakeholders' involvement on the implementation of the operation codes.

The SO ESC meets regularly to:

• Contribute to a more informed decision-making process regarding the implementation's methodologies and rules;

• Monitor the progress in the implementation, as well as in the operation and functioning of all the processes – at local, regional and pan-European level;

• Serve as a platform to share general views on the implementation, fostering stakeholders' engagements, receiving feedback and proposing amendments.

​​ACER and ENTSO-E monitor the implementation of the SO Regulation and of the NC ER​.The purpose of these tasks is generally twofold. 

First, ACER and ENTSO-E monitor the implementation of the operation codes in terms of requirements and provisions by TSOs. 

Second, once the specific req​​​​uirements have been implemented, ACER must monitor and analyse the implementation of the network codes and their effect on the harmonisation of applicable rules aimed at facilitating market integration, as well as on non-discrimination, effective competition and the efficient functioning of the market, and report to the Commission. 

ACER and ENTSO-E will publish different monitoring reports addressing the implementation.

​​​​​Network codes and guidelines are binding rules governing connection requirements to the electricity networks in an effective and transparent manner. They were established in 2009 by the EU Regulation on conditions for access to the network for cross-border exchanges in electricity  and recast in 2019 by the Regulation on the internal market for electricity .

The codes are crucial for ensuring the safety of system operation and the efficiency of the European Union's power grid.​

​Development and amendments to the FCA Regulation

The FCA Regulation has been developed in close cooperation with the Agency, ENTSO-E and stakeholders, in order to adopt effective, balanced and proportionate rules in a transparent and participative manner. In accordance with Article 18(3) of the Regulation (EC) No 714/2009, the Commission will consult the Agency, ENTSO-E and other relevant stakeholders, before proposing any amendment to the FCA Regulation.

Development of terms and conditions or methodologies

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Every proposal for the terms and conditions or methodologies should be submitted to public consultation before its submission for regulatory approval, in accordance with Article 6 of the FCA Regulation. The entities responsible for performing the consultation should duly consider the views of stakeholders resulting from the consultation, prior to its submission for regulatory approval. In all cases, a clear and robust justification for including or not the views resulting from the consultation should be developed and published in a timely manner before or simultaneously with the publication of the respective proposal.​

Implementation of the FCA Regulation​

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Pursuant to Article 5 of the FCA Regulation, the Agency, in close cooperation with ENTSO-E, has established the Market European Stakeholder Committee (MESC), in order to organise stakeholder involvement regarding the aspects of the implementation of the FCA Regulation and holds regular meetings with stakeholders to identify problems and propose improvements notably related to the operation and development of the issues described in the FCA Regulation.

Details of the activities of MESC can be found here.​

​​The FCA Regulation together with Regulation (EU) 2019/942 sets out the obligations for TSOs, ENTSO-E, regulatory authorities and ACER regarding the development and approval of terms and conditions or methodologies. The terms and conditions or methodologies should be consulted on, contain a timescale for implementation and the expected impact on the objectives of the FCA Regulation.

While terms and conditions or methodologies developed by all TSOs are directly submitted to ACER for approval, regional terms and conditions or methodologies are submitted to the relevant national regulatory authorities for a regional approval process. Once submitted, the relevant regulatory authorities or ACER should take decisions concerning the proposed terms and conditions or methodologies within six months after the receipt of the proposal. 

Where the regulatory authorities are not able to agree on the approval of the proposal, they can request an amendment, which gives TSOs an extra two months for amending the proposal and another two months for the regulatory authorities to approve the amended proposal. If, in case of a regional approval process, the regulatory authorities are not able to reach unanimous agreement or upon their joint request, ACER shall adopt a decision within six months from the referral.

After the adoption of the terms and conditions or methodologies, the TSOs responsible for developing the respective proposals or the regulatory authorities responsible for their adoption, may request amendments of these terms and conditions or methodologies. In that case the proposals for amendment to the terms and conditions or methodologies shall be submitted to consultation and follow the approval procedure as described above.​