EU · eu-demand-response-network-code

EU network code on demand response and related electricity-rule amendments

Regulatory review

FLEXIBILITY MARKETSMULTI-TIMEFRAMEdemand responsedemand-side flexibilitydecentralised assetsinteroperabilityelectricity balancingsystem operation rules

1Problem identified

2Consultation

3Proposal

4Regulatory review

5Decision

6Implementation

7Go-live

8Market impact

What changed

The European Commission is reviewing ACER’s proposal for a new EU-wide network code on demand response, including proposed amendments to the Electricity Balancing Guideline, System Operation Guideline and Demand Connection Network Code. A targeted consultation supporting that review opened on 14 July 2025 and closed on 12 September 2025.

Why it matters

The proposed instrument is intended to establish new demand-response rules, support flexibility and interoperability of decentralised assets, address regulatory barriers, and foster a harmonised framework for integration into the EU electricity system.

Design impact

Price formation○○○

Cross-border capacity○○○

Liquidity●○○

Operational security●○○

Market participants●●○

Affected markets

EU electricity flexibility marketsEU electricity balancing arrangements

Who is affected

Transmission System Operators (TSOs)Distribution System Operators (DSOs)electricity market participantspower exchanges and local market platform operatorsNational Regulatory Authorities (NRAs)consumer groups

MD analysis

This is an EU-level demand-response rulemaking process with potential implications across flexibility participation, balancing arrangements, system operation and demand connection. The source does not specify the final rules or an implementation timetable; the design remains under Commission review.

Rule / framework

Regulation (EU) 2019/943, Article 59(1)(c); proposed amendments concern Regulation (EU) 2017/2195, Regulation (EU) 2017/1485 and Regulation (EU) 2016/1388.

Next milestone

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Primary sources

European Commission · REGULATOR · 2025-07-14

Targeted Consultation to support the establishment of a new network code on demand response

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