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Energy Union governance – planning and reporting obligations

Overall state of play

Fitness check finalised: SWD(2016) 397 final and SWD(2016) 396 final, 30 November 2016
Commission proposal: adopted on 30 November 2016, COM(2016) 759
Legal Act: Adopted Regulation (EU) 2018/1999; Date of effect: 24 December 2018

State of play, main conclusions, outlook

The Fitness Check (FC) evaluation assessed 91 planning, reporting and monitoring obligations within the EU energy acquis, both at Member States and at the Commission level in order to check whether there is a potential for simplification and reduction of administrative burden and to assess the extent to which the obligations are fit for purpose.

Main conclusions of the FC were that, while overall the existing regulatory framework relating to planning, reporting and monitoring obligations within the EU energy acquis delivered good results, there was potential for significant improvement of these obligations as well as regarding interlinkages with the EU climate acquis.

Following inter alia the results of the FC, the Commission proposed as part of the Clean Energy for all Europeans package of 30 November 2016 a Regulation on the Governance of the Energy Union and the repeal of Regulation 256/2014. The proposed Regulation was adopted by the legislators and entered into force in December 2018.

Estimated savings and benefits

The legislative proposal on the Governance of the Energy Union intended to streamline reporting by a single legislative act, which - as identified by the respective Impact Assessment - was estimated to generate cost savings of €3.4 million. In addition, it was estimated to bring significant benefits to Member States, citizens and business through more stable policy frameworks and better informed policies across the five dimensions of the Energy Union. The Governance Regulation is expected to generate substantial benefits in terms of a timely and more efficient achievement of the Energy Union objectives, promoting investor certainty while synchronising and harmonising with the intrernational reporting requirements under the UNFCCC and Paris Climate Agreement.

The transition towards a more secure and sustainable energy system was estimated to require some €200 billion annual investments in the next decade and the Energy Union Governance would allow for the necessary certainty and predictability to facilitate such investments and make them more efficient.