The European Commission is taking Germany and Hungary to court for failing to implement two key laws – the Gas Directive and the Electricity – that are included in the bloc’s Third Energy Package.
According to a Commission press release, Germany has not ensured full respect of rules concerning the powers and independence of the national regulatory authority. In particular, the regulator does not enjoy full discretion in the setting of network tariffs and other terms and conditions for access to networks and balancing services, since many elements for setting these tariffs and terms and conditions are to a large extent laid down in detailed regulations adopted by the federal government.
In the case of Hungary, the Commission is calling for the correct implementation of the Third Energy Package’s requirements on network tariffs. It requires that tariffs applied by network operators for the use of electricity and gas networks are regulated in order to prevent anti-competitive behaviours, and entrusts national regulatory authorities with the task of setting these tariffs or their methodologies.
Hungarian legislation excludes certain types of costs from the calculation of network electricity and gas tariffs, in violation of the principle of cost-recovery of tariffs provided for in the Electricity and Gas Regulations. Also, the Commission found that Hungary adopted amendments to its energy legislation which jeopardise the right of market operators to a full judicial review of the national regulator’s decisions on network tariffs.
According to the Commission, a core element of the electricity and gas market framework is the stronger independence and the powers of national regulators under the Electricity and Gas Directive.
