ACER Opinion 08-2026 on the derogation request submitted by the Estonian Competition Authority (ECA) from the application of the network codes and guidelines

No 08/2026

OPINION

on the derogation request submitted by the Estonian Competition Authority (ECA) from the application of the network codes and guidelines, 2024/1789, at the entry point from and the exit point to Russia

30 April 2026

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Executive summary

Pursuant to Article 70(3) of Regulation (EU) 2024/1789 (‘Gas Regulation’), ACER is required to provide the European Commission with a reasoned opinion within three months of the date of receipt of a request for a derogation, submitted by a national regulatory authority (‘NRA’) in line with the aforementioned provision, from the implementation of network codes or guidelines, referred to in Article 70(1) of the Gas Regulation, or specific elements of them. On 2 February 2026, the Estonian Competition Authority (‘ECA’) submitted a derogation request to the European Commission and to ACER asking for a derogation from the application of all network codes and guidelines with reference to the Luhamaa entry point from and exit point to the Russian Federation (‘Luhamaa point’) for an undetermined period, yet conditioned on that the current prohibition to import gas from Russian origin remains in place.

The Estonian gas transportation network is linked to the network of the Russian Federation through three points, i.e. Narva, Värska, Luhamaa. Only the Luhamaa point is still operational. Its sole purpose is to allow gas originating from the Russian Federation reaching the Kaliningrad region as a backup route.

Conclusion

ECA’s derogation request concerns the application of all network codes and guidelines at the Luhamaa point for an undetermined period yet conditioned on that the current prohibition to import gas from Russian origin remains in place.

ACER acknowledges the existence of an exceptional situation in Estonia, in which ECA is required to enforce the prohibition to import gas from Russia to Estonia and to ensure that gas of Russian origin reaches exclusively the Kaliningrad region as a back-up route through the Luhamaa entry point.

ACER notes that the Gas Directive and the Gas Regulation aim at creating a fully operational internal market for natural gas. In the case under consideration, the gas flowing from the Russian Federation via the Luhamaa entry point is not destined to the internal market itself, as it is transported through the infrastructure of Estonia.

The regulatory framework established by ECA correctly reflects the specific circumstances affecting the Luhamaa entry point.

ACER acknowledges the limited usage of such point while also noticing that implementing the provisions of the TAR NC in the same way as they apply to the other points of the Estonian gas network and the provisions of INT NC Article 16 would further support the avoidance of cross-subsidisation and guarantee equal treatment of network users of the Union internal gas market

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1. Background

1 Regulation (EU) 2024/1789 (‘Gas Regulation’) extends the application of network codes and guidelines, referred to in Article 70(2) of the Gas Regulation (‘network codes and guidelines’), to the entry points from and exit points to third countries, namely countries that are not members of the European Union. The principle embedded in the Regulation at issue is the enhancement of the internal gas market by supporting cross-border trade and efficient operations also at the borders with third countries. Applying network codes and guidelines at these border points helps to avoid market fragmentation and ensures the seamless functioning of the internal market, in particular by guaranteeing consistent rules, non-discriminatory access and efficient cross-border trading conditions, even at the borders of the Union.

2 Article 70(2)(d) of the Gas Regulation lays down that network codes and guidelines, adopted in accordance with paragraph 1 of the same provision, shall apply to all interconnection points within the Union and to entry points from and exit points to third countries from 5 August 2026.

3 Furthermore, Article 70(3) thereof states that until 5 February 2026 national regulatory authorities (‘NRAs’) may submit a request to the European Commission and ACER for a derogation from the application of the network codes and guidelines at entry points from and exit points to third countries pursuant to Article 70(2)(d).

4 ACER shall provide a reasoned opinion to the European Commission within three months of the date of receipt of the request for a derogation. In its reasoned opinion ACER provides an assessment on the request submitted by the NRA. The European Commission shall adopt a decision on the request for a derogation, taking into account ACER’s reasoned opinion and after assessing the existence of the conditions listed in Article 70(3)(a), (b) and (c).

5 Notably, whether the NRA has demonstrated that provisions of a network code or guideline cannot be effectively implemented at an entry point from or exit point to a third country; has taken measures to alleviate obstacles to such implementation; and has shown that the derogation is not detrimental to the internal gas market or to the security of supply of the Union or of a Member State. The derogation shall be limited to specific provisions that cannot be effectively implemented and shall be granted by the European Commission for a limited period of time.

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6 Furthermore, Recital 95 of the Gas Regulation acknowledges that specific circumstances, including the existence of long-term contractual arrangements or legal difficulties in establishing dispute resolution procedures with transmission system operators or natural gas suppliers established in third countries, may prevent the effective application of network codes in the short term.

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2. Procedure

8 On 2 February 2026, ACER received from the Estonian Competition Authority (‘ECA’) in written form via electronic post a request for a derogation from the application of network codes and guidelines pursuant to Article 70 (3) of the Gas Regulation.

9 Upon the submission of the derogation request, and after an in-depth analysis thereof, ACER has interacted with ECA to further clarify elements included in the derogation request. ACER has thus taken due account of the additional information provided by the NRA in its assessment.

10 On 1 April 2026, ACER shared the draft version of the reasoned opinion with ECA for a factual check and to verify the completeness of the information provided.

11 On 30 April 2026, ACER adopted this reasoned opinion and sent it to the European Commission in accordance with Article 70(3) of the Gas Regulation following the prescribed timeline.

3. Summary of Derogation Request

12 ECA’s derogation request concerns the application of all network codes and guidelines at the Luhamaa entry point from and exit point to the Russian Federation (‘Luhamaa point’). ECA states that the Luhamaa point is only used as a back-up route for transit purposes from the Russian Federation to the Russian Federation’s Kaliningrad region neighbouring Lithuania and Poland.

13 According to ECA’s derogation request, it is not possible that the Estonian TSO, Elering SA (‘Elering’), cooperates with the Russian TSO - nor with any Russian-controlled entity - due to safety and security reasons deriving from the Russian invasion of Ukraine, and the related provisions of the Estonian legislation forbidding the import of gas of Russian origin in Estonia since 1 January 2023.

14 ECA informs that the Estonian gas transportation network is linked to the network of the Russian Federation through three points, i.e. Narva, Värska, and Luhamaa. ECA states that in 2024 it had removed the Narva and Värska points from the relevant regional cooperation arrangements due to their inactivity , whereas the Luhamaa point remains operational, as backup line, with the sole purpose of allowing gas originating from the Russian Federation reaching the Kaliningrad region of the Russian Federation. Therefore, ECA highlights that the gas flowing at the Luhamaa point is not destined to the Union gas market.

15 ECA requests a derogation from the application of all network codes and guidelines at the Luhamaa point for un undetermined period yet conditioned on that the current prohibition to import gas from Russian origin remains in place.

16 Furthermore, ECA seeks clarification from the European Commission as to whether, if a derogation were to be granted for the Luhamaa point and changes were subsequently made to the type of capacity products offered at that point, such operational changes would fall within the scope of the existing derogation or whether a supplementary derogation request would be required notwithstanding the expiry of the initial application deadline.

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17 In addition, ECA requests clarification from the European Commission regarding the possibility of requesting a derogation for the Narva and Värska points in the future, should those points become operational again. In this reasoned opinion, ACER will not analyse this additional element included in ECA request to the European Commission.

4. ACER assessment

4.1. Application of network codes and guidelines at the Luhamaa point

18 The Luhamaa point has two sides, i.e. an entry side and an exit side. As stated in ECA’s derogation request, since 2023 such point is operational solely to ensure that gas originating from the Russian Federation is transported to the Russian Federation’s region of Kaliningrad.

19 Given the absence of any prohibition to export gas from Estonia to Russia, both under the Estonian law and under Regulation (EU) 2026/216 , ACER is of the opinion that all the provisions of network codes and guidelines not requiring mutual implementation with the adjacent TSO shall apply at Luhamaa exit point, should the point become operational again.

20 Therefore, ACER considers ECA’s derogation request as solely related to the entry side of the Luhamaa interconnection point.

21 In this section, ACER analyses the current framework on capacity allocation, balancing, congestion management, interoperability, and tariffs applying at the Luhamaa entry point.

Capacity allocation

22 ACER understands that only firm capacity products are offered at the Luhamaa entry point. This transportation capacity is allocated exclusively through daily capacity products, and specifically through a transportation notification submitted by the third-country TSO at least two weeks prior to the day of delivery.

23 Such transportation notification must be confirmed by a third-party network user holding capacity both at the Luhamaa entry point and at the Kiemenai exit point (connecting the Latvian gas network to the Lithuanian gas network).

24 Therefore, this framework partially implements the provisions of Commission Regulation (EU) 2017/459 (‘CAM NC’).

25 The capacity booked and the physical flows at the Luhamaa entry point have been scattered since 2023, with capacity only booked for a few days in 2023 and in 2024. Still, the Luhamaa entry point can potentially ensure the flow of high volumes of gas compared to the size of the Estonian network.

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Balancing

27 ACER understand that all the provisions of Commission Regulation (EU) 312/2014 (‘BAL NC’) apply at the Luhamaa entry point (including those established in BAL NC Chapter VI, i.e. regarding daily imbalance charges, and those established in Chapter VII, i.e. regarding neutrality arrangements), excluding the following two ad-hoc provisions.

28 First, the entry nominations and physical flows at Luhamaa entry point must equal the exit nominations and physical flows at the Kiemenai exit point. Second, the imbalance volume in the event of discrepancies between the gas nominated and the gas physically injected at the Luhamaa entry point is allocated on a monthly basis and pro-rata on the basis of the share of capacity bookings at the Luhamaa entry point (while at other interconnection points of the common zone, the imbalance volumes are allocated on a daily basis and pro-rata on the basis of the share of network users’ nominations).

Congestion management

29 None of the provisions established in Annex I, paragraph 2.2. of the Gas Regulation, i.e. regarding congestion management procedures in the event of contractual congestion, apply at Luhamaa entry point. ACER notes that it is unlikely that measures to manage contractual congestions would be needed at Luhamaa entry point under the current specific circumstances.

Interoperability

30 Articles 16 of Commission Regulation (EU) 2015/703 (‘INT NC’) establish that TSOs shall publish on their website for each interconnection point, with a frequency of at least once per hour during the gas day, the Wobbe-index and the gross calorific value for gas directly entering their networks. This provision is not implemented at the Luhamaa entry point. ACER acknowledges the technical difficulties in implementing such provision at these points as well as the relatively stable values of the Wobbe-index and gross calorific value of the gas entering at the Kotlovka entry point from the Russian Federation.

Tariffs

31 ACER understands that the implementation of Commission Regulation (EU) 2017/460 (‘TAR NC’) at the Luhamaa entry point was not completed by ECA when setting the reference price methodology for the Estonian gas network points for the regulatory period 2025-2029. In fact, in 2024 ECA foresaw a null level of bookings at such point.

32 Still, as Estonia is part of the FinEstLat gas zone, the tariff applying at the Luhamaa entry point is the same as the tariff applying at all the other entry points of the FinEstLat zone. For 2026, such tariff is set at 142.77 EUR/MWh/day, and the corresponding daily multiplier is set at 1.5.

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4.2. ACER considerations

33 ACER acknowledges the existence of an exceptional situation in Estonia, in which ECA is required to ensure both that the prohibition on importing gas originating from the Russian Federation into Estonia is respected and that gas originating from the Russian Federation reaches the Kaliningrad region as a back-up route via the Luhamaa entry point.

34 ACER acknowledges the role and the need for ECA to guarantee that the gas system is kept safe and secure.

35 ACER notes that the Gas Directive and the Gas Regulation aim at creating a fully operational internal market for natural gas. In the case under consideration, the gas flowing from the Russian Federation via the Luhamaa entry point is not destined to the internal market itself, as it is transported through the infrastructure of Estonia.

36 The Luhamaa entry point can potentially guarantee high levels of gas flows compared to the size of the Estonian network. Such point is not a standalone element of the integrated Estonian natural gas network. Common infrastructure elements are used to provide both transmission services for transporting gas through the system from the Luhamaa entry point and services for transporting gas to end-users within the Union, making it difficult to establish a clear separation at asset level. Lacking such a clear separation of assets and costs, any exclusion of network costs would have to rely on assumptions and modelling. The modelling may not reduce the risk of crosssubsidisation and decreased cost-reflectivity, both ultimately affecting the internal market for natural gas. This would pose a risk of cross-subsidisation and decreased cost-reflectivity, due to the non-application of the TAR NC provisions.

37 Therefore, while acknowledging that the transportation capacity is rarely booked and the corresponding network usage is low, ACER highlights the need to implement at Luhamaa entry point the TAR NC in the same way as to all the other points of Elering’s network.

5. Conclusions

38 ECA’s derogation request concerns the application of all network codes and guidelines at the Luhamaa point for an undetermined period yet conditioned on that the current prohibition to import gas from Russian origin remains in place.

39 ACER acknowledges the existence of an exceptional situation in Estonia, in which ECA is required to enforce the prohibition to import gas from Russia to Estonia and to ensure that gas of Russian origin reaches exclusively the Kaliningrad region as a back-up route through the Luhamaa entry point.

40 ACER notes that the Gas Directive and the Gas Regulation aim at creating a fully operational internal market for natural gas. In the case under consideration, the gas flowing from the Russian Federation via the Luhamaa entry point is not destined to the internal market itself, as it is transported through the infrastructure of Estonia.

41 The regulatory framework established by ECA correctly reflects the specific circumstances affecting the Luhamaa entry point.

42 ACER acknowledges the limited usage of such point while also noticing that implementing the provisions of the TAR NC in the same way as they apply to the other points of the Estonian gas network and the provisions of INT NC Article 16 would further support the avoidance of crosssubsidisation and guarantee equal treatment of network users of the Union internal gas market.

A C E R O P I N I O N N O 0 8 / 2 0 2 6 This Opinion is addressed to the European Commission. Done at Ljubljana, on 30 April 2026. — SIGNED — V. ZULEGER, ACER Director ad interim