EDSO Reaction to MEP Kariņš’ Market Design Reports (Electricity Directive & Electricity Regulation)

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As the centre piece of the Clean Energy Package, the Electricity Regulation and Directive are crucial legislative proposals for DSOs. Rapporteur Kariņš has published his draft report on the Market Design in June. In his amendment proposals he introduced important changes to the Commission’s original proposal.

One element representing a positive step ahead is to reduce the obligation on member states for adopting a common data format, which would have disproportionately affected customers by introducing additional burdens and costs. Nevertheless, there are some points that can still be improved. The shift towards a decentralised energy system implies a more active role by the DSOs to enhancing system flexibility and facilitating the deployment of distributed energy. Despite this trend, the reports extend a significant importance to the TSOs (i.e. data management, storage), whereas the recognition of DSOs’ changing roles and needs is largely ignored. This imbalance fails to reflect the challenges of the transition towards decarbonisation, decentralisation and digitalisation.

As far as the DSO entity is concerned, the new changes should not unduly overrule the Commission’s original efforts to create a single, strong voice for DSOs in their representation with the EU and other institutions across Europe. The EDSO response comments on these issues in more detail and makes recommendations how the Market Design can be further improved.