Agency for the Cooperation of Energy Regulators Regulation

Introduction

Regulation (EU) 2019/942 establishes the European Union Agency for the Cooperation of Energy Regulators (ACER). This regulation is a recast of the original Regulation (EC) No 713/2009, strengthening ACER's role to better address the challenges of the clean energy transition under the EU Green Deal. ACER is a central EU body with legal personality, designed to act independently and objectively in the interest of the Union.

Its primary purpose is to complement and coordinate the work of national energy regulatory authorities (NRAs) at the EU level. It provides a framework for NRAs to cooperate, ensures the consistent application of EU energy legislation, and helps create a more integrated, competitive, secure, and sustainable internal energy market for electricity and natural gas.

Main Goal

The main goal of ACER is to assist national regulatory authorities in exercising their regulatory tasks and, where necessary, to coordinate their actions and settle disagreements. It aims to foster the establishment of high-quality common regulatory and supervisory practices, contributing to the consistent, efficient, and effective application of Union law to achieve the EU's climate and energy goals, such as decarbonization and ensuring security of supply.

Who It Applies To

This regulation primarily establishes and defines the functions of ACER. However, its work and decisions directly affect a wide range of actors in the energy sector, including:

• National Regulatory Authorities (NRAs) of EU Member States.
• Transmission System Operators (TSOs) for electricity, gas, and hydrogen.
• The European Network of Transmission System Operators for Electricity (ENTSO-E).
• The European Network of Transmission System Operators for Gas (ENTSO-G).
• The European Network of Network Operators for Hydrogen (ENNOH).
• The EU DSO entity (representing Distribution System Operators).
• Regional Coordination Centres (RCCs).
• Nominated Electricity Market Operators (NEMOs).
• Energy market participants involved in wholesale energy markets.

Key Dates

• Entry into Force: The regulation entered into force on July 4, 2019, and was directly applicable from this date.
• Evolving Mandate: ACER's tasks and deadlines evolve with new legislation. For example, Regulation (EU) 2024/1787 on methane emissions, which entered into force in July 2024, amends the ACER regulation to include new responsibilities. ACER must establish indicators for methane reduction investment costs every three years.
• Reporting Deadlines: Various articles within the regulation and related network codes set specific deadlines for TSOs, NEMOs, and other entities to submit proposals (e.g., for methodologies or terms and conditions) to ACER or NRAs for approval. These deadlines are typically within months of the relevant network code's entry into force.

Exemptions

The regulation itself does not provide exemptions for actors from its scope. However, a key task for ACER is to decide on exemption requests for new energy infrastructure (e.g., new electricity interconnectors or gas infrastructure) from certain provisions of EU energy law, such as rules on third-party access and tariff regulation, as stipulated in Article 63 of Regulation (EU) 2019/943 and Article 36 of Directive 2009/73/EC.

Key Provisions

• Establishment and Objectives: Formally establishes ACER as an independent EU agency to foster cooperation among NRAs and ensure the proper functioning of the internal energy market.
• Tasks and Powers: ACER has a range of powers, including issuing non-binding opinions and recommendations, as well as legally binding individual decisions on specific technical and cross-border issues.
• Network Codes and Guidelines: ACER plays a crucial role in the development, revision, and monitoring of EU-wide network codes and guidelines, which set harmonized technical, operational, and market rules.
• Cross-Border Dispute Settlement: ACER is empowered to settle disagreements between NRAs on cross-border issues, such as cost allocation for infrastructure projects or terms for cross-zonal capacity. If NRAs cannot reach a unanimous agreement within a set timeframe (typically six months), the matter is referred to ACER for a binding decision.
• Market Monitoring: ACER is responsible for monitoring the internal electricity and natural gas markets, particularly wholesale market integrity and transparency under the REMIT Regulation (Regulation (EU) No 1227/2011). This includes collecting and analyzing market data to detect potential abuse.
• Infrastructure Oversight: It monitors the progress of trans-European energy infrastructure projects (Projects of Common Interest) and can decide on cross-border cost allocation for such projects.
• Organizational Structure: The regulation defines ACER's structure, comprising an Administrative Board, a Board of Regulators (the main decision-making body on regulatory matters), a Director, and a Board of Appeal.

Obligations & Requirements

• For NRAs: Must cooperate through the ACER framework, provide necessary information to ACER, and are bound by ACER's individual decisions.
• For TSOs, ENTSOs, EU DSO entity: Must develop and submit draft network codes, methodologies, and regional plans to ACER and NRAs for review and approval. They must provide ACER with all necessary information upon request.
• For Market Participants: Must comply with the network codes and guidelines implemented under this framework and are subject to ACER's market monitoring activities under REMIT.
• For ACER: Must act independently and transparently, consult stakeholders extensively, and carry out its tasks as defined in the regulation, including monitoring, reporting, and decision-making.

Affected Products/Types/Actors/Processes

• Actors: National regulators, TSOs, DSOs, NEMOs, energy producers, suppliers, traders, and large consumers.
• Processes: Cross-border electricity and gas trading, network access and tariff setting, capacity allocation, congestion management, balancing, infrastructure planning and investment, and wholesale market monitoring.
• Products: Wholesale electricity, natural gas, and increasingly, hydrogen.

Penalties

The regulation itself does not directly set penalties on market participants. Enforcement is primarily handled by NRAs at the national level. However, ACER's decisions are legally binding on the entities they are addressed to (e.g., NRAs, TSOs). Failure to comply can lead to infringement procedures by the European Commission against the relevant Member State.

Furthermore, under the related REMIT regulation, which ACER oversees, amendments have given ACER the power to impose periodic penalty payments to compel compliance with its investigatory powers.