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Network Code Overview



​​​​​​“Looking forward, we will continue our work on developing network codes. Common rules will enable network operators, generators, suppliers, and consumers to operate more effectively across the market. As a result we will have well-functioning, cross-border wholesale markets.” Günther H. Oettinger – EU Commissioner for Energy.

The slideshow below presents an overview on ENTSO-E’s work on network codes: the process of developing network codes, the content and level of development of each code, and how these different codes will fit together when implemented.

 

  Click on the image to see or download the presentation 


Useful background and more general information on what network codes are about, why they are useful and how they are developed can be found on ENTSO-E's dedicated Network Codes mini website.

What are Network Codes?

Network codes are sets of rules which apply to one or more parts of the energy sector. The need for them was identified during the course of developing the Third Energy Package. More specifically, Regulation (EC) 714/2009 sets out the areas in which network codes will be developed and a process for developing them. 

At present, ENTSO-E is working on 10 network codes: for an update on progress, detailed information, documents and material relating to workshops and public consultations, visit the pages listed below:

Status of the Network Codes

For an overview of the most significant recent developments for all network codes, please click here.

 

Why do we Need Network Codes?

The European Commission, together with many stakeholders, have established that greater effort is needed to create a secure, competitive and low carbon European energy sector and a pan-European Internal Energy Market. Network codes are intended as a tool to reach this objective by complementing existing national rules to tackle cross-border issues in a systematic manner. 

 

What is ENTSO-E’s Role in Network Code Development?

Following a request from the European Commission, the Agency for the Cooperation of Energy Regulators (ACER) develops a vision on changes needed on a particular energy subject. This results in ACER issuing a framework guideline, after which ENTSO-E is invited to draft a related network code. During the drafting procedure, which can last up to twelve months, ENTSO-E gathers national experts on the subject to draft the network code. In order to ensure the support of all branches of the energy sector, ENTSO-E works in close cooperation with stakeholders and holds to a set of principles in the development of on-going and future codes. In summary we are committed to:

  • Transparency: We will strive to publish all relevant material, e.g. early drafts and important issues for feedback;
  • Open engagement: We are committed to listening to all viewpoints from all interested parties;
  • Explanation: We will clearly explain the rationale for the choices made in the development of the network codes;
  • Consistency: Our goal is that each part of the overall project will mutually work towards the same ambition; consistency is key.

The network codes are assessed by ACER to ensure they are in line with the framework guidelines and, after which they are submitted to the European Commission. Finally the network codes go through the Comitology procedure, in which they are scrutinised and agreed by Member States, before becoming directly applicable legislation across the EU.