Written question – Commission guidance on the compensation models for electricity demand response through aggregation – E-002465/2025

Source: European Parliament

Question for written answer  E-002465/2025
to the Commission
Rule 144
Bruno Tobback (S&D)

The Commission has announced that a white paper on electricity market integration will be published in late 2025. It will address governance issues while also exploring flexibility compensation.

With regard to electricity demand response through aggregation, European legislation[1] establishes that countries ‘may require electricity undertakings or participating final customers to pay financial compensation to other market participants or to the market participants’ balance responsible parties, if those market participants or balance responsible parties are directly affected by demand response activation’. At the same time, this financial compensation must not create a barrier to market entry for market participants who are engaged in aggregation, nor a barrier to flexibility. However, when this is read in conjunction with the proposed Article 55A of the Electricity Balancing Regulation[2], within the newly proposed draft network code on demand response, it is unclear which model should be used to ensure correct compensation. This has raised issues in countries such as France, where direct compensation models have created barriers to market access.

Will the Commission publish guidance on compensation models so that countries can fulfil their obligations under Article 17(4) of Directive (EU) 2019/944?

Submitted: 18.6.2025

  • [1] Article 17(4) of Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (OJ L 158, 14.6.2019, p. 125, ELI: http://data.europa.eu/eli/dir/2019/944/oj).
  • [2] Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (OJ L 312, 28.11.2017, p. 6, ELI: http://data.europa.eu/eli/reg/2017/2195/oj).
Last updated: 26 June 2025