EDSO jointly with Eurelectric and GEODE publishes a side letter on EU-DSO entity

EDSO jointly with Eurelectric and GEODE publishes a side letter on EU-DSO entity

The recast of the Electricity Regulation will establish a new EU institution, called “EU DSO Entity”, to foster cooperation between Distribution System Operators (DSOs) who are taking centre stage in the energy transition. The creation of the DSO Entity is a major development and it is warmly welcomed by the DSOs since it not only promotes the completion and functioning of the internal market for electricity but also contributes to the optimal management and coordinated operation of distribution and transmission systems.

Representing almost 100% of European DSOs, the European associations EDSO, Eurelectric and GEODE are closely following the legislative process and it is our firm belief that this crucial topic deserves further attention in the course of the negotiations on the electricity market design.

The Council and the Parliament have strengthened the provisions setting out in great detail a range of matters that should be more adequately reflected in the Entity’s Statutes. Consequently, the DSOs have agreed upon a joint side letter outlining how the EU DSO Entity should be regulated. It establishes a clear distinction between the principles, rules and guidelines to be defined in the Electricity Regulation and the detailed application to be included in the Entity’s Statutes drafted and approved by the Entity’s members (DSOs). Finally, as stated in the Regulation, the Statutes will be submitted to the European Commission for approval under the scrutiny of ACER.

As a general principle, the specific governance rules and voting procedures should rather be described in the Statutes. If such details were defined in the Regulation, it would indeed require amending the EU law if changes were necessary at a later stage in the Entity’s governance. A Regulation that is too prescriptive would undermine the efficient functioning of the Entity. This can be avoided by specifying the necessary details in the Statutes. We therefore recommend to remove the proposed detailed provisions of the Article 50a.

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