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DSO Entity

Moving towards the creation of DSO Entity: statutes submitted for approval to ACER and European Commission

On 24 June 2020, the DSO Entity Statutes containing the rules of governance were formally submitted to the Agency for the Cooperation of Energy Regulators (ACER) and the European Commission.

The Electricity Regulation (Regulation (EU) 2019/943 of the European Parliament and the European Council of 5 June 5, 2019) of the internal market for electricity establishes a new European body for DSOs at the European level called “EU DSO Entity”. It is mandated to be an expert body working for the common interest of the EU to increase efficiencies in the electricity distribution networks of the EU, while ensuring close cooperation with transmission system operators (TSOs) and the European Network of Transmission System Operators for Electricity (ENTSO-E). Notably, DSO Entity will be a genuine counterpart to ENTSO-E in the drafting of EU regulations – the network codes that affect distribution grids.

The creation of DSO Entity has been warmly welcomed by DSOs, which are taking center stage in the energy transition that combines decentralisation and digitalisation with decarbonisation. This meaningful step contributes to the coordinated planning and operation of distribution and transmission systems in the electricity sector.

The governance of DSO Entity will consider the large number and diversity of electricity DSOs in the EU – there are more than 2,500 DSOs, with substantial differences in scale, scope, shareholder type and activity portfolio.

Within two months of receiving them, ACER will provide the European Commission with its opinion of the Statutes and accompanying documents. On this basis, the European Commission will deliver its own opinion within the three months afterwards.

The DSOs and the European associations that represent them are now eagerly awaiting the opinions of ACER and the European Commission to finalise the creation of DSO Entity, which is expected to become operational by Spring 2021.