EU Commission Issues New Rules on Concluding Energy Supply Agreements with non EU Member States

Brussels, 5 April 2017

Recently the EU Commission has passed certain rules, as adopted by the EU Parliament on 2 March 2017, related to negotiating and concluding energy supply agreements with non-EU member states. The new rules require EU member states to inform the EU Commission of their plans to negotiate energy supply deals with third countries before opening up such negotiations. At present, EU member states are required to submit such agreements to the Commission only after signature.

The Commission may respond to a member state’s notification by advising it on how to ensure that the agreement to be negotiated is compatible with EU law, including optional model clauses and guidance that the Commission will develop in consultation with member states.

Upon request of the relevant member state, the Commission may also take part in the negotiation as an observer. If the Commission has concerns about the deal, it shall inform the member state within 5 weeks. Within an additional period of 12 weeks, the Commission gives its opinion whether the deal is compliant with the EU laws and principles.

If a member state fails to take account of the Commission’s opinion in the ratified version of the agreement, it should, without undue delay, explain to the Commission in writing the reasons for its decision.