Commissioner for Energy Dan Jørgensen, in a written answer on 12 June 2026, signalled openness to simplifying EU electricity market rules for small-scale, geographically limited local electricity supply facilities, such as tenant electricity models, business parks, and hospitals, while stressing the need to balance administrative burden reduction with consumer protection.
The answer responds to a parliamentary question submitted on 6 March 2026 by MEPs Andrea Wechsler (PPE), Christian Ehler (PPE), Jens Geier (S&D), Hildegard Bentele (PPE), and Jens Gieseke (PPE). The MEPs warned that following the Court of Justice ruling in Case C-293/23 (ENGIE Deutschland) and subsequent German case-law, many local supply models are being reclassified as distribution systems under Directive (EU) 2019/944, imposing heavy regulatory obligations on operators of short internal lines without measurable benefits for competition or system security.
Jørgensen acknowledged that unnecessary administrative burden should be avoided and pointed to existing special regimes for Citizens Energy Communities, Renewable Energy Communities, Closed Distribution Systems, and energy sharing. However, he cautioned that regulatory oversight of network operators remains a crucial consumer protection tool. The Commission, he said, is working with national governments and regulators to assess whether additional cases of smaller and local grids could be simplified.
The answer contains no concrete legislative proposal or timeline, but signals a policy orientation toward targeted simplification. The Commission's ongoing assessment could lead to a future amendment of Directive (EU) 2019/944 or accompanying legal acts. The response leaves open whether the Commission will propose a new exemption framework or rely on existing provisions, and does not specify when the assessment will conclude.
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