Executive Summary:
This decision of the EEA Joint Committee amends Annex IV to the EEA Agreement to incorporate Commission Regulation EU 2016/1719 regarding forward capacity allocation in the energy sector. The regulation will not apply to Iceland and Liechtenstein. The decision emphasizes information protection and stakeholder involvement, and it entered into force on December 12, 2020, or the day following the last notification to the EEA Joint Committee.
Key Points / Main Content:
* **Incorporation of Regulation EU 2016/1719:**
* Commission Regulation EU 2016/1719 on forward capacity allocation is incorporated into the EEA Agreement.
* **Exemptions:**
* The Regulation does not apply to Iceland and Liechtenstein.
* **Application to Norway:**
* References to Transmission System Operators (TSOs), regulatory authorities, and stakeholders include those representing Norway.
* Norway's population is considered when determining qualified majority thresholds in relevant articles.
* Regions including Norway are factored into calculations regarding the number of member states.
* Norwegian TSO should participate in stakeholder decision-making.
* Norwegian regulatory authority should be involved in consultations.
* **Information Protection and Cooperation:**
* Agreements may ensure protection of confidential or sensitive information and timely submission of necessary information.
* Close cooperation between TSOs and regulatory authorities is essential to protect sensitive information.
Impact Analysis:
**TSOs (Including Norwegian TSO)**
* Impact: Must cooperate closely to develop terms, conditions, and methodologies, ensuring sensitive information is protected. The Norwegian TSO should participate in the stakeholder decision-making process.
* Action Required: Participate in the development of proposals for terms, conditions, and methodologies; ensure information exchange and protection of sensitive information.
**Regulatory Authorities (Including Norwegian Regulatory Authority)**
* Impact: Must consult and cooperate to reach agreements on proposals from TSOs. The Norwegian regulatory authority should be involved in such cooperation.
* Action Required: Cooperate on decisions, protect sensitive information, and consult with their Norwegian counterpart.
**Stakeholders (Including Norwegian Stakeholders)**
* Impact: Stakeholder input is crucial for effective regulatory cross-border framework.
* Action Required: Participate in the processes for the development of proposals for terms, conditions and methodologies.
Key Entities Referenced
EEA Joint Committee: The decision-making body responsible for amending the EEA Agreement.
EEA Agreement: Agreement on the European Economic Area
Commission Regulation EU 2016/1719: A European Union regulation establishing a guideline on forward capacity allocation.
Iceland: An island country in the North Atlantic. The regulation EU 2016/1719 does not apply to Iceland.
Liechtenstein: A small country in Europe. The regulation EU 2016/1719 does not apply to Liechtenstein.
Norway: A country in Northern Europe. Represented by its Transmission System Operator (TSO), regulatory authorities and stakeholders.
Regulation EC No 714/2009: Regulation of the European Parliament and of the Council on conditions for access to the network for cross-border exchanges in electricity.
Brussels: The city where the decision was made.
L 240/60 EN Official Journal of the European Union 28.9.2023
DECISION OF THE EEA JOINT COMMITTEE No 205/2020
of 11 December 2020
amending Annex IV (Energy) to the EEA Agreement [2023/2007]
THE EEA JOINT COMMITTEE,
Having regard to the Agreement on the European Economic Area (“the EEA Agreement”), and in particular Article 98
thereof,
Whereas:
(1) Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity
allocation(1)is to be incorporated in the EEA Agreement.
(2) Commission Regulation (EU) 2016/1719 does not apply to transmission systems on islands which are not
connected to other transmission systems via interconnections.
(3) As the transmission system of Iceland is not connected with another transmission system, Commission Regulation
(EU) 2016/1719 should not apply to Iceland.
(4) Due to its small size and the limited number of electricity customers, Liechtenstein does not have its own
transmission electricity network. Commission Regulation (EU) 2016/1719 should therefore not apply to
Liechtenstein.
(5) References to Transmission System Operators (“TSOs”), regulatory authorities and stakeholders should be
understood to include the TSO, regulatory authorities and stakeholders representing Norway.
(6) When jointly developing terms, conditions and methodologies pursuant to Commission Regulation
(EU) 2016/1719, it is essential that all necessary information be submitted without delay. Close cooperation
between TSOs and regulatory authorities should ensure that sensitive information, such as detailed information
about electrical substations, exact location of underground transmission, information about control systems and
detailed vulnerability analyses that can be used for sabotage, is effectively protected in the process of developing
terms, conditions or methodologies. To ensure the effective implementation of Commission Regulation
(EU) 2016/1719, the same level of cooperation regarding information exchange and protection of sensitive
information should be established for the purposes of the cooperation with Norway.
(7) Input from all main stakeholders in the development of regional or EEA-wide terms, conditions and methodologies,
that could become binding through regulatory approval, is crucial for an effective regulatory cross-border
framework. The TSOs and other stakeholders should therefore participate in the processes for the development of
proposals for terms, conditions and methodologies as set out in the various provisions in Commission Regulation
(EU) 2016/1719. The Norwegian TSO should, in particular, participate in the stakeholder decision-making in a
similar manner as TSOs representing an EU Member State.
(8) For regional or Union-wide proposals, where the approval of proposals from TSOs requires a decision by more than
one regulatory authority, regulatory authorities should consult and closely cooperate in order to reach agreement
before the regulatory authorities adopt a decision. The Norwegian regulatory authority should be involved in such
cooperation.
(1) OJ L 259, 27.9.2016, p. 42.28.9.2023 EN Official Journal of the European Union L 240/61
(9) As Commission Regulation (EU) 2016/1719 has been adopted on the basis of Regulation (EC) No 714/2009 of the
European Parliament and of the Council of 13 July 2009on conditions for access to the network for cross-border
exchanges in electricity and repealing Regulation (EC) No 1228/2003(2), the adaptation texts elaborated and
adopted under Decision of the EEA Joint Committee No 93/2017 of 5 May 2017amending Annex IV (Energy) to
the EEA Agreement(3) for the implementation of Regulation (EC) No 714/2009, in particular the provisions in
points (1) and (5) of Article 1 thereof, which provide for adaptations concerning the role of the Agency for the
Cooperation of Energy Regulators in the EEA context, are relevant for the application of Commission Regulation
(EU) 2016/1719 in the EEA, in particular for the application of Article 4 (8) and (10) thereof.
(10) Annex IV to the EEA Agreement should therefore be amended accordingly,
HAS ADOPTED THIS DECISION:
Article 1
The following is inserted after point 49 (Commission Regulation (EU) 2015/1222) of Annex IV to the EEA Agreement:
‘50. 32016 R 1719: Commission Regulation (EU) 2016/1719 of 26 September 2016establishing a guideline on forward
capacity allocation (OJ L 259, 27.9.2016, p. 42).
The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations:
(a) The Regulation shall not apply to Iceland and Liechtenstein.
(b) In Article 4:
(i) The references to “the population of the Union” in Article 4(2)(b), to “the population of the concerned region”
in Article 4(3)(b) and to “the population of the participating Member States” in Article 4(3), second
subparagraph, shall be understood as including the population of Norway when considering whether the
relevant population threshold for attaining qualified majority is attained.
(ii) The references to “regions composed of more than five Member States” in Article 4(3), first subparagraph and
to “regions composed of five Member States or less” in Article 4(3), third subparagraph, shall be read as
“regions composed of more than four Union Member States and Norway” and as “regions composed of four
Union Member States and Norway or less”, respectively.
(c) The following shall be added to Article 7:
“Agreements between TSOs and / or regulatory authorities may ensure that confidential or sensitive information is
effectively protected and help guaranteeing that all information which is necessary to develop the common terms,
conditions and methods is submitted without delay”.’
Article 2
The text of Regulation (EU) 2016/1719 in the Norwegian language, to be published in the EEA Supplement to the Official
Journal of the European Union, shall be authentic.
Article 3
This Decision shall enter into force on 12 December 2020, or on the day following the last notification to the EEA Joint
Committee under Article 103(1) of the EEA Agreement*, whichever is the later.
(2) OJ L 211, 14.8.2009, p. 15.
(3) OJ L 36, 7.2.2019, p. 44.
* Constitutional requirements indicated.L 240/62 EN Official Journal of the European Union 28.9.2023
Article 4
This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European
Union.
Done at Brussels, 11 December 2020.
For the EEA Joint Committee
The President
Sabine MONAUNI