WHAT IS THE AIM OF THE DECISION?
- Decision (EU) 2017/684 sets up a system for sharing information between European Union (EU) Member States and the European Commission about energy agreements signed between one or several Member States, on the one side, and non-EU countries or international organisations, on the other side.
- The aim is to ensure that intergovernmental agreements signed by Member States with non-EU countries or international organisations are consistent with EU law. This should ensure proper functioning of the internal market, enhance the security of the energy supply in the EU and lead to better transparency and coordination in energy matters between Member States and with the Commission.
- Regulation (EU) 2024/1789 amends the decision to include intergovernmental agreements relating to hydrogen, including hydrogen compounds such as ammonia and liquid organic hydrogen carriers within the scope of the decision, establishing notification obligations similar to those applicable to the international agreements in the field of gas.
- The decision repeals Decision No 994/2012/EU.
KEY POINTS
- The decision primarily covers legally binding agreements between Member States and non-EU countries (or international organisations) concerning the purchase, trade, sale, transit, storage or supply of energy in or to a Member State or involving any energy infrastructure within the EU.
- When starting such negotiations, Member States must inform the Commission as early as possible before they begin and keep the Commission informed on a regular basis.
- Before finalising an intergovernmental agreement or amendment, the Member State concerned must take utmost account of the Commission’s opinion on the compatibility of the agreement with EU law.
- Following the ratification of any energy agreement, the Member State concerned must notify the Commission. If the Commission has issued a legal opinion on the agreement, the Member State must also notify the reasons for any departure from that opinion.
- Member States may optionally notify the Commission about non-binding instruments. These are arrangements that are not legally binding, typically memoranda of understanding, joint declarations or joint codes of conduct, which set out prices, for example, or the development of infrastructure.
- All notifications need to be made through a dedicated web-based application.
Oil, gas and hydrogen
Where an international agreement concerns gas, oil or hydrogen, the draft agreement must be provided to the Commission for an ex ante assessment. The Commission must inform the Member State concerned within five weeks of any doubts it has about the compatibility of the agreement with EU law, in particular with internal energy market rules and competition law. The Commission will follow up with a full opinion within 12 weeks of the original notification.
Electricity
- Member States can make their own assessment of the legal compatibility of electricity agreements with EU law at the draft agreement stage.
- Where the Member State has not been able to come to a firm conclusion on this compatibility, it must provide the draft agreement to the Commission, and the same procedure that is used for the oil, gas and hydrogen ex ante assessment will be followed.
- Where the Member State has notified the Commission about an international agreement in the field of electricity upon its ratification, the Commission must inform the Member State within nine months of the notification if it has doubts as to the agreement's compatibility with EU law.
Time periods
The time periods for the assessment of any of the abovementioned agreements may be extended with the approval of the Member State, or shortened with the approval of the Commission to ensure that negotiations are not unduly delayed.
Existing agreements
By 3 August 2017, Member States had to notify the Commission of all existing intergovernmental energy agreements, including those related to electricity. Where the Commission had initial doubts about the legal compatibility with EU laws of these agreements, Member States were to be informed accordingly by the Commission within nine months of notification.
Information sharing
- Where a Member State has not indicated that certain information is confidential, the Commission will make it available in secure electronic form to all other Member States. A Member State may indicate whether any part of the information is to be regarded as confidential. Where the information is confidential, the Member State shall provide a summary, including at least the agreement’s subject matter, aim, scope, duration, parties involved and information on the main elements.
- Requests for confidentiality do not restrict the Commission’s access to confidential information.
- This information sharing aims to encourage coordination among Member States to:
- review developments and achieve consistency in EU external energy relations;
- identify common problems and appropriate action to address them, proposing guidance and solutions;
- support the development of multilateral intergovernmental agreements involving groups of Member States or the EU as a whole.
Guidance
By 3 May 2018, the Commission, consulting with Member States, was to develop model clauses and guidance to improve the compliance of future intergovernmental energy agreements with EU law.
FROM WHEN DOES THE DECISION APPLY?
Decision (EU) 2017/684 has applied since 2 May 2017.
BACKGROUND
For further information, see:
MAIN DOCUMENTS
Decision (EU) 2017/684 of the European Parliament and of the Council of 5 April 2017 on establishing an information exchange mechanism with regard to intergovernmental agreements and non-binding instruments between Member States and third countries in the field of energy, and repealing Decision No 994/2012/EU (OJ L 99, 12.4.2017, pp. 1–9).
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).
