Legal background
At the heart of the 3rd Package legislation is the development of EU-wide network codes on 12 topic areas for the integration of European electricity and gas markets and to enable cross-border trade and competition to develop across the EU energy markets. The process for developing these codes is stipulated in the legislation and includes the elaboration by energy regulators of framework guidelines (FG), which set out the key principles for the development of the network codes by the transmission system operators (ENTSOs). The new Agency for the Cooperation of Energy Regulators (ACER) will have an important role in developing the FG, which are non-binding by nature and with which network codes must comply. ACER will also have a role in reviewing draft network codes, including their compliance with the FG, and may recommend them for adoption by the Commission. This process, which should take 6 months including a mandatory public consultation, is set out in Article 6 of the new Electricity and Gas Regulations (EC/714/2009 and EC/715/2009, respectively). 

Interim period until the creation of ACER
The 3rd Package provisions will not be applicable until approximately March 2011. During this interim period, European energy regulators have committed to making as much progress as possible in preparing the work on FG and will therefore provide input to the European Commission and the new Agency on the preparatory work on framework guidelines.

In order to fully prepare for the new legislative provisions, we have committed to running two pilot exercises (electricity - grid connection, gas - capacity allocation) to test the end-to-end process and to allow for adjustments if there are problems in implementing the legal process. In parallel, regulators will continue to work on other priority topic areas.

Framework Guideline development process
It is important that the process for the development of Framework Guidelines and network codes meets the best regulatory practice, which includes undertaking impact assessments when necessary and at the appropriate stages. As we defined in our “next steps" paper (C09-GA-52-06a), the framework guidelines will be developed in two steps: Initial Impact Assessment justification (step 1); and drafting of a framework guideline, including 2 months of public consultation (step 2). We aim to have as open and transparent a process as possible and this website will serve to disseminate information to all interested stakeholders. A major objective of the European energy regulators is to ensure that stakeholders are properly involved and consulted. In particular, good coordination with the ENTSOs and with the European Commission is needed to develop an effective, efficient and flexible process producing legally-binding network codes.

Ad hoc expert groups
Where necessary and depending on the specific area for the framework guideline, an ad hoc expert group might be set up. The purpose of this group should be to provide an input/assistance to the European energy regulators/Agency in relation to certain issues relevant to a particular area/group.