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Framework Guidelines and Network Codes

Network Codes are specific tools for implementation of a single energy market in the EU. They include common rules for functioning and managing energy systems and are aimed at eliminating technical barriers for further market integration. These codes are formulated by ENTSO-E and ENTSO-G and must be consistent with non-binding Framework Guidelines set out by ACER.

The process of establishing Network Codes

  1. Within a period of time not exceeding 6 months from the European Commission’s request, ACER draws up non-binding Framework Guidelines. These guidelines set out clear and objective principles for formulating Network Codes and contribute to non-discrimination, effective competition and efficient functioning of the market.
  2. Within a period of time not exceeding 12 months from the European Commission’s request, ENTSO-E and ENTSO-G formulate a Network Code in line with appropriate Framework Guidelines. Network Codes include detailed principles of systems and market functioning and harmonization.
  3. Within a period of time not exceeding 3 months from receiving the code, ACER reviews the code and provides ENTSO-E and ENTSO-G with a justified opinion on it. Following ACER’s justified opinion, ENTSO-E and ENTSO-G may amend the code and resubmit it to the Agency.
  4. If ACER finds the code in line with the relevant Framework Guidelines, it submits the code to the European Commission and may recommend its adoption within a reasonable time period. Codes are accepted through a committee procedure, i.e. they must be approved by experts from all EU Member States.
  5. Once the comitology procedure has been completed, the code becomes legally binding and does not require implementation to national law (it has a legal force of a Regulation).

All parties that participate in the process of drawing up Network Codes are obligated to comply with the transparency requirements of this process and consult other market participants on the draft codes.

The requirements set down in Network Codes formulated by ENTSO-E/ENTSO-G should be also included in national network codes.

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