Third Energy Package and Its Revision


The European Union's Third Energy Package, adopted in 2009, is a set of legislative measures aimed at further liberalising and integrating the EU's internal electricity and gas markets. Building upon previous energy packages, its primary objectives are to enhance competition, ensure non-discriminatory access to energy networks, and strengthen consumer rights across Member States.

Key Components

The Third Energy Package comprises two directives and three regulations:

  • Directive 2009/72/EC: Establishes common rules for the internal market in electricity.
  • Directive 2009/73/EC: Sets out common rules for the internal market in natural gas.
  • Regulation (EC) No 713/2009: Establishes the Agency for the Cooperation of Energy Regulators (ACER).
  • Regulation (EC) No 714/2009: Concerns conditions for access to the network for cross-border exchanges in electricity.
  • Regulation (EC) No 715/2009: Deals with conditions for access to the natural gas transmission networks.

​Core Objectives
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  1. Unbundling of Energy Supply and Transmission: To prevent conflicts of interest and promote competition, the package mandates the separation of energy production and supply activities from transmission network operations. Member States can choose among three models:
    • Ownership Unbundling: Complete separation of supply and transmission ownership.
    • Independent System Operator (ISO): Transmission networks remain under the same ownership, but their operation is managed by an independent entity.
    • Independent Transmission Operator (ITO): Allows vertically integrated companies to retain ownership of transmission networks, provided that the transmission activities are operated independently.
    • Strengthening National Regulatory Authorities (NRAs): Each Member State is required to establish an independent NRA with the authority to oversee energy markets, ensure fair competition, and protect consumer interests.
  2. Establishment of ACER: The Agency for the Cooperation of Energy Regulators facilitates collaboration among NRAs, monitors the internal energy market, and provides regulatory oversight at the EU level.
  3. Creation of ENTSO-E and ENTSOG: The European Network of Transmission System Operators for Electricity (ENTSO-E) and for Gas (ENTSOG) are tasked with promoting the integration and coordination of European transmission networks, developing network codes, and enhancing cross-border infrastructure.

Impact and Evolution

Clean Energy for All Europeans Package
In 2019, the EU introduced the "Clean Energy for All Europeans" package, updating the energy policy framework to facilitate the transition away from fossil fuels towards a carbon-neutral economy. This package built upon the Third Energy Package, focusing on electricity market design, renewable energy, energy efficiency, and governance rules for the Energy Union. Notably, it did not include specific legislation for the gas sector, anticipating a separate proposal in 2020.

Electricity Market Design
​In 2019, the electricity market design replaced the electricity part of the 2009 third energy package, and was further amended in 2024. 

Hydrogen and Decarbonised Gas Market Package
Also in 2024, new EU legislation on internal markets for renewable gas, natural gas and hydrogen replaced the gas part of the third energy package. Recognizing the need to decarbonize the gas sector, the European Commission proposed the "Hydrogen and Decarbonised Gas Market Package" in December 2021. This new legislation aims to integrate renewable and low-carbon gases, such as hydrogen and biomethane, into the EU energy market.

Key objectives include:

  • Establishing a dedicated regulatory framework for hydrogen, including network planning and market rules.
  • Facilitating the repurposing of existing gas infrastructure for hydrogen transport.
  • Implementing unbundling rules to ensure fair access and competition in hydrogen networks.
  • Enhancing consumer engagement and protection in the gas market.

These measures are designed to support the EU's climate goals, reduce dependency on fossil fuels, and promote energy security.
The revision of the Third Energy Package through these initiatives reflects the EU's commitment to a sustainable and integrated energy system, addressing both current challenges and future needs.