October infringement package – key decisions on energy

In its regular package of infringement decisions, the European Commission pursues legal action against Member States for failing to comply with their obligations under EU law. These decisions, covering various sectors and EU policy areas, aim to ensure the proper application of EU law for the benefit of citizens and businesses.

In the list of October infringements, there are 2 energy-related letters of formal notice and 2 energy-related reasoned opinions. 

Letters of formal notice and additional letter of formal notice

The Commission calls on ROMANIA to remove restrictions on the pricing and export of electricity and gas
Today, the European Commission decided to open an infringement procedure by sending a letter of formal notice to Romania (INFR(2024)2194) for restricting the freedom of market participants to determine their wholesale prices of electricity and gas as well as the export of gas. More specifically, Romania introduced national measures that require certain electricity producers to contribute all revenues above a specific price threshold to an energy transition fund and oblige gas producers to sell part of their production at fixed prices to certain customers. These national measures are incompatible with Directive (EU) 2019/944 and Regulation (EU) 2019/943 on the internal market for electricity as well as with Directive 2009/73/EC concerning common rules for the internal market on natural gas. The measures at issue limit the freedom of the electricity and gas producers to determine their wholesale prices in Romania. The Commission therefore considers that these measures restrict the fundamental principles of free price formation as well as free cross-border trade in wholesale electricity and gas markets. Romania now has two months to reply and address the shortcomings identified by the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.

The Commission calls again on ROMANIA to remove restrictions on the pricing and export of electricity
Today, the Commission also decided to follow up on an open infringement procedure by sending an additional letter of formal notice to Romania (INFR(2023)2032) for restricting the export of electricity and limiting the freedom of market participants to determine their wholesale prices. The Commission considers the national measure at issue to be incompatible with Articles 35 and 36 of the Treaty on the Functioning of the European Union (TFEU), as well as Directive (EU) 2019/944 and Regulation (EU) 2019/943 on the internal market for electricity. The Commission considers that the measure has an equivalent effect to a quantitative restriction on exports. For the same reasons, the measure is also considered to violate the above-mentioned Electricity Directive and the Electricity Regulation. The Commission further considers that the measure restricts the fundamental principle of free price formation in wholesale electricity markets. Today's additional letter of formal notice follows the opening of the infringement procedure in April 2023. Following changes to the legislation in Romania that did not address the Commission's concerns, and which raised new issues, the Commission has decided to send an additional letter of formal notice. Romania now has two months to reply and address the shortcomings identified by the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.

Reasoned opinions

The Commission urges CZECHIA and FRANCE to fully transpose EU rules on the internal electricity market
Today, the European Commission decided to send a reasoned opinion to Czechia (INFR(2022)2033) and France (INFR(2022)2103) for not having fully transposed EU rules for the internal electricity market set out in the Directive (EU) 2019/944, amending Directive 2012/27/EU. The Directive lays down key rules regarding the organisation and functioning of the EU electricity sector to create integrated, competitive, consumer-centred, flexible, fair and transparent electricity markets across the EU. The deadline to transpose the Directive into national law was 31 December 2020. The Commission sent a letter of formal notice to Czechia in May 2022 and to France in September 2022, after concluding that not all the provisions of the Directive had been transposed into their national legislation. Having examined the replies from the Member States concerned as well as the national transposition measures notified, the Commission considers that these Member States have still not fully transposed the Directive. The two Member States concerned now have two months to take the necessary measures and notify the Commission. Otherwise, the Commission may decide to refer the cases to the Court of Justice of the European Union.

The Commission urges AUSTRIA to fully transpose the Renewable Energy Directive              
Today, the European Commission decided to send a reasoned opinion to Austria (INFR(2021)0133) for not having fully transposed EU rules on the promotion of the use of energy from renewable sources set out in Directive (EU) 2018/2001. This Directive provides the legal framework for the development of renewable energy in electricity, heating and cooling, and transport in the EU. It sets an EU-level binding target for 2030 of at least 32% renewable energy and includes measures to ensure support for renewable energy to be cost-effective, and to simplify administrative procedures for renewable energy projects. It also facilitates the participation of citizens in the energy transition and sets specific targets to increase the share of renewables in the heating and cooling, and transport sectors by 2030. The deadline to transpose the Directive into national law was 30 June 2021. In July 2021, the Commission sent Austria a letter of formal notice for not having transposed the Directive on time. After that, Austria has notified legislative measures aimed at transposing the Directive. Still, after having examined them, the Commission considers that several provisions of the Directive are still not transposed, or not fully transposed, at federal and regional level. The Commission has therefore decided to issue a reasoned opinion. Austria now has two months to take the necessary measures and notify the Commission. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union.

For more information on the EU infringement procedure, see the full press release and Q&A. For more detail on the history of a case, you can consult the infringement decisions' register.