Today’s deal means that six out of the eight legislative proposals of the 2016 Clean Energy for All Europeans package have been politically endorsed by the co-legislators, after the agreements on the Governance of the Energy Union proposal, the revised Energy Efficiency Directive, the revised Renewable Energy Directive, the Energy Performance in Buildings Directive and the Regulation on Risk Preparedness. It is clear progress and momentum towards completing the Energy Union and combatting climate change are well under way. The Juncker Commission, working under its political priority “a resilient Energy Union and a forward-looking climate change policy“, is delivering.

Commissioner for Climate Action and Energy Miguel Arias Cañete said: “Today’s deal is another important achievement in our transition to a clean and secure energy system. ACER,the Agency for the Cooperation of Energy Regulators, will have an enhanced role in the energy market and in the area of security of supply. This Regulation will adapt the Agency’s competences to the new challenges the electricity sector is facing, for example in the context of increased regional cooperation. We are now approaching the finishing line to complete the Clean Energy for All Europeans proposals before the end of this year. With the completion of the Package, we will be on the right path towards the Energy Union”.

ACER’s main role currently is confined to coordination, advising and monitoring. Regulatory oversight remains fragmented, leading to a risk of diverging decisions and unnecessary delays. ACER is the body established to provide regulatory oversight for situations which cover more than one Member State. The role of ACER as coordinator of the action of national energy regulators has been preserved and additional competences have been assigned to ACER in those areas where fragmented national decisions of cross-border relevance would lead to problems for the internal Energy Market. For example, ACER will have oversight on the future regional entities (“Regional Coordination Centers”) where TSOs (Transmission System Operators) will be able to decide on those issues where fragmented and uncoordinated national actions could negatively affect the market and consumers. The proposed approach will also streamline regulatory procedures (by introducing direct approval by ACER instead of separate approvals by all national regulators). National regulators, deciding within ACER on those issues through majority voting, will remain fully involved in the process.

The proposal also contains further provisions that, together with those proposed in the other elements of the Clean Energy Package, will put consumers at the heart of the energy market.

Next steps

Following this provisional political agreement, the text of the Regulation will have to be formally approved by the European Parliament and the Council. Once endorsed by both co-legislators in the coming months, the Regulation will be published in the Official Journal of the Union and will immediately enter into force.

Background

On 30 November 2016, the Commission proposed a Regulation on adapting the rules that govern the Agency for the Cooperation of Energy Regulators (ACER).

Energy Union

ACER

An important element of the EU’s scaled up response to cybercrime, the new rules will help Member States to crack down on cyber-criminals while better assisting victims of online payment fraud. 

Welcoming the agreement, Commissioner for Home Affairs, Migration and Citizenship Dimitris Avramopoulos said: “We are building a safer Europe for our citizens – offline as well as online, and today we deliver on this commitment. These new rules will help us crack down on those who steal from our citizens through online fraud, and ensure that our citizens are better protected.”

Commissioner for the Security Union Julian King said: “Strengthening deterrence is crucial to tackling cybercrime – malicious cyber actors need to know that they face serious consequences. Today’s agreement gives Member States a stronger tool to effectively fight online fraud, and provides a forceful disincentive to would-be cyber-criminals.”

Fraud and counterfeiting of non-cash means of payment is an important source of income for organised crime, often enabling other criminal activities such as terrorism, drug trafficking and trafficking in human beings. The new rules will boost Member States’ capacity to deter, prosecute and sanction cyber-criminals:

• Expanded scope of offences: non-cash transactions carried out with any kind of payment instrument, whether physical such as bank cards, or virtual such as mobile payments, are now included in the scope of offences. Stealing and misappropriation of payment credentials, as well as the further sale and distribution of those credentials will also be criminalised;
• Harmonised rules on penalties: the new rules set minimum penalties ranging from 1 to 5 years. This will stop “forum shopping”, such as when criminals choose a jurisdiction with more lenient penalties, and will also facilitate cooperation between national authorities by clarifying which activities are considered as crimes;
• Stronger protection of victims: victims of non-cash fraud will now have better access to information, advice and support to limit consequences of identity theft;
• Greater cross-border cooperation: dedicated national contact points and the involvement of Europol will improve exchange of information and cross-border cooperation;
• Better reporting: financial institutions and other private entities will report on relevant crimes to law enforcement authorities.

Next steps

The Directive will now have to be formally adopted by the European Parliament and the Council. Once it enters into force Member States will have 2 years to transpose the rules into national legislation.

Background

Technological developments, such as the increasing use of mobile payments or virtual currencies, have brought about substantial changes in the area of non-cash payments and the increase in online fraud. It is estimated that the criminal market for payment card fraud may be profiting from at least €1.8 billion per year.

The current rules on criminalisation of non-cash payment fraud are set out in the Council Framework Decision (2001/413/JHA) dating back to 2001. It has become clear that those rules no longer reflect today’s realities and do not sufficiently address new challenges and technological developments such as virtual currencies and online payments. In order to ensure that crimes committed with new methods of payment can be effectively deterred and prosecuted, President Juncker proposed to update the existing rules in his 2017 State of the Union Address. Today’s agreement on combating fraud and counterfeiting of non-cash means of payment follows the agreement reached yesterday by the EU negotiators on the Cybersecurity Act, reinforcing the mandate of the EU Agency for Cybersecurity and establishing an EU framework for cybersecurity certification – the key elements of the EU’s scaled up response to cybercrime presented by the Commission in September 2017.

For More Information

Factsheet: Combating fraud and counterfeiting of non-cash means of payment

Press Release: State of the Union 2017 – Cybersecurity: Commission scales up EU’s response to cyber-attacks

Questions and Answers: State of the Union 2017: The Commission scales up its response to cyber-attacks