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General principles Member States, regulatory authorities designated pursuant to Article 76 of Directive (EU) 2024/1788 (the ‘regulatory authorities’), operators of natural gas systems or hydrogen systems and delegated operators such as market area managers or booking platform operators shall ensure that markets for natural gas and hydrogen are operated in accordance with the following principles:

(a) prices for natural gas and hydrogen shall be formed on the basis of demand and supply;

(b) transmission system operators and distribution system operators, and hydrogen transmission network operators and hydrogen distribution network operators shall cooperate with each other to provide network users with the freedom to book entry and exit capacity independently; natural gas and, from 2033, hydrogen shall be transported by means of the entry-exit system, rather than contractual paths;

(c) tariffs charged at the entry and exit points in the natural gas system and in the hydrogen system shall be structured in such a way as to contribute to market integration, enhancing security of supply and promoting the interconnection between natural gas networks and between hydrogen networks;

(d) undertakings that are active in the same entry-exit system shall exchange natural gas and, from 2033, hydrogen at the virtual trading point; producers of renewable gas and low-carbon gas shall have equal access to the virtual trading point, irrespective of whether they are connected to the distribution system or transmission system; natural gas and, from 2033, hydrogen may be exchanged physically at entry points from or exit points to third countries;

(e) network users shall be responsible for balancing their balancing portfolios in order to minimise the need for transmission system operators and hydrogen transmission network operators to undertake balancing actions;

(f) balancing actions shall be performed on the basis of standardised products in accordance with the network code on balancing established pursuant to this Regulation and conducted on a trading platform or by means of balancing services in accordance with that network code;

(g) market rules shall avoid actions which prevent price formation on the basis of demand and supply for natural gas and hydrogen;

(h) market rules shall ensure a consumer-centred and energy efficient approach in the markets for natural gas and hydrogen;

(i) market rules shall foster the emergence and functioning of liquid trading for natural gas and hydrogen, fostering price formation and price transparency;

(j) market rules shall enable the decarbonisation of the natural gas systems and hydrogen systems, including by enabling the integration into the markets of natural gas and hydrogen from renewable energy sources and by providing incentives for energy savings and efficiency, demand reduction, demand flexibility and energy system integration and facilitating the achievement of the Union’s climate and energy targets;

(k) market rules shall deliver appropriate investment incentives, in particular for long-term investments in a decarbonised and sustainable natural gas system and hydrogen system, for energy storage, energy efficiency, demand reduction and demand response to meet market needs and system integration needs, and shall facilitate fair competition and security of supply, while implementing the energy efficiency first principle in avoiding investment incentives that lead to stranded assets;

(l) rules on network planning shall, where appropriate, target the use of hydrogen for hard-to-decarbonise sectors, taking into account greenhouse gas abatement potential, encourage measures to reduce fossil gas demand, and contribute to the prudent and rational use of natural resources and the achievement of the Union’s climate and energy targets;

(m) barriers to cross-border natural gas and hydrogen flows, if existing, between entry-exit systems shall be removed;

(n) market rules shall facilitate regional cooperation and integration.