WHAT IS THE AIM OF THE DIRECTIVE?
Directive (EU) 2024/1788 is part of a package designed to facilitate the decarbonisation of the European Union’s (EU) energy systems by integrating renewable and low-carbon gases, particularly hydrogen, focusing on:
- creating fully operational and integrated internal markets for natural gas and hydrogen;
- supporting the EU’s climate goals, specifically climate neutrality by 2050;
- strengthening consumer rights and protections in the gas market;
- ensuring vulnerable consumers and those affected by energy poverty1 are particularly protected, including during the energy transition.
KEY POINTS
The directive, which is a recast of Directive 2009/73/EC (part of the third energy package), is part of a broader effort, which also includes the corresponding Regulation (EU) 2024/1789, to decarbonise the EU’s energy systems, focusing on the natural gas and hydrogen markets. It is an essential piece of the fit for 55 package, which aims to reduce carbon emissions by 55 % by 2030 and ultimately reach climate neutrality by 2050.
Decarbonisation
The decarbonisation framework introduced in the directive seeks to contribute to the EU’s climate and energy targets by:
- facilitating the integration of renewable and low-carbon gases within the energy system;
- setting common rules for transporting, supplying and storing natural gas and hydrogen, helping to establish a functioning hydrogen market;
- including rules that facilitate transitioning from a natural gas-based system to one based on renewable and low-carbon gases.
Market-based supply pricing
- Suppliers can freely determine the price for natural gas and hydrogen.
- EU Member States are responsible for ensuring effective competition among suppliers to keep prices fair for end consumers.
- Member States must ensure the protection of vulnerable consumers and those affected by energy poverty. The new rules set clear criteria for when Member States may intervene in price setting for natural gas.
Managing natural gas price crises
Where there is a significant price spike in natural gas markets, the Council of the European Union can declare a regional or an EU-wide natural gas price crisis under the following conditions:
- average prices in wholesale natural gas markets must be at least 2.5 times the average price during the last five years and at least €180/MWh, with the expectation that this will persist for at least six months;
- retail gas prices must have risen by around 70 % and be expected to stay high for at least three months.
Once a crisis is declared and certain conditions are fulfilled, temporary targeted public interventions in price setting for the supply of natural gas can be implemented for small and medium-sized enterprises, households and essential social services.
Consumer rights and protections
The directive introduces several measures to ensure consumer rights and protections in the gas market, aligning them with those already established in the electricity market.
- Free choice of supplier. All customers will have the right to choose their natural gas and hydrogen suppliers, regardless of where the supplier is located within the EU. Member States must ensure there is a supplier of last resort regime in place to ensure continuity of supply at least for household customers.
- Better information for consumers. All customers will receive better information on offers, in contracts and bills. They will be able to choose the best deal for them thanks to reliable comparison tools, and switch suppliers easily. They will gain greater control over their gas consumption through smart metering systems.
- Better protection in the case of a dispute with an energy supplier. All customers will be able to turn to out-of-court dispute mechanisms, such as an energy ombudsman, including when having problems with products or services that are tied to or bundled with gas supply.
- Particular focus on vulnerable customers and those affected by energy poverty. Vulnerable customers and those affected by energy poverty will be particularly protected from disconnections of gas supply, including during the planned phase-out of fossil gas.
Network development and planning
The directive outlines measures to develop and coordinate energy networks, including:
- ensuring more specialised management and the development of hydrogen infrastructure through separating transmission system operators and distribution system operators specifically for hydrogen;
- projecting future supply and demand in the so-called joint scenarios developed by the relevant infrastructure operators of at least natural gas, hydrogen and electricity;
- gas and hydrogen transmission system operators submitting a 10-year network development plan every two years, ensuring that the right infrastructure is in place to accommodate the future supply and demand projected in the joint scenarios;
- hydrogen distribution network operators submitting a four-year infrastructure plan detailing the future development of the network;
- distribution system operators developing decommissioning plans when natural gas demand is expected to fall and parts of the natural gas distribution network or the entire system need to be shut down or repurposed for hydrogen.
FROM WHEN DO THE RULES APPLY?
The directive has to be transposed into national law by 5 August 2026. The rules contained in the directive should apply from the same date.
BACKGROUND
For further information, see:
KEY TERMS
- Energy poverty. A household’s lack of access to essential energy services that ensure basic levels and decent standards of living and health (e.g. heating, hot water, lighting, etc.), caused by factors such as non-affordability, insufficient disposable income, high energy expenditure and poor energy efficiency of homes.
MAIN DOCUMENT
Directive (EU) 2024/1788 of the European Parliament and of the Council of 13 June 2024 on common rules for the internal markets for renewable gas, natural gas and hydrogen, amending Directive (EU) 2023/1791 and repealing Directive 2009/73/EC (recast) (OJ L, 2024/1788, 15.7.2024).
RELATED DOCUMENTS
Regulation (EU) 2024/1787 of the European Parliament and of the Council of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (OJ L, 2024/1787, 15.7.2024).
Regulation (EU) 2024/1789 of the European Parliament and of the Council of 13 June 2024 on the internal markets for renewable gas, natural gas and hydrogen, amending Regulations (EU) No 1227/2011, (EU) 2017/1938, (EU) 2019/942 and (EU) 2022/869 and Decision (EU) 2017/684 and repealing Regulation (EC) No 715/2009 (recast) (OJ L, 2024/1789, 15.7.2024).
Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency and amending Regulation (EU) 2023/955 (recast) (OJ L 231, 20.9.2023, pp. 1–111).
Commission Recommendation (EU) 2023/2407 of 20 October 2023 on energy poverty (OJ L, 2023/2407, 23.10.2023).
Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February 2021 establishing a Technical Support Instrument (OJ L 57, 18.2.2021, pp. 1–16).
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (European Climate Law) (OJ L 243, 9.7.2021, pp. 1–17).
Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty (OJ L 357, 27.10.2020, pp. 35–41).
Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast) (OJ L 158, 14.6.2019, pp. 22–53).
Successive amendments to Regulation (EU) 2019/942 have been incorporated into the original text. This consolidated version is of documentary value only.
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, pp. 1–77).
See consolidated version.
Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast) (OJ L 328, 21.12.2018, pp. 82–209).
See consolidated version.
Directive (EU) 2018/2002 of the European Parliament and of the Council of 11 December 2018 amending Directive 2012/27/EU on energy efficiency (OJ L 328, 21.12.2018, pp. 210–230).
Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, pp. 1–56).
See consolidated version.
Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, pp. 1–16).
See consolidated version.
Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (recast) (OJ L 153, 18.6.2010, pp. 13–35).
See consolidated version.
