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1. Member States shall ensure, on the basis of their institutional organisation and with due regard to the principle of subsidiarity, that, without prejudice to paragraph 2, natural gas and hydrogen undertakings are operated in accordance with the principles of this Directive with a view to achieving competitive, secure and environmentally sustainable markets for natural gas and hydrogen. Member States shall not discriminate between those undertakings as regards their rights or obligations.

2. Having full regard to the relevant provisions of the TFEU, in particular Article 106 thereof, Member States may impose on natural gas and hydrogen undertakings, in the general economic interest, public service obligations which may relate to security, including security of supply, regularity and quality of supplies, and environmental protection, including energy efficiency, energy from renewable sources and climate protection and to the price of natural gas supply. Such obligations shall be clearly defined, transparent, non-discriminatory, verifiable and shall guarantee equality of access for natural gas undertakings and hydrogen undertakings of the Union to national consumers. Public service obligations which concern public interventions in the price setting for the supply of natural gas shall comply with the requirements set out in Articles 4 and 5 of this Directive.

3. Public service obligations related to the security of gas supply shall ensure compliance of natural gas undertakings with the gas supply standard pursuant to Article 6 of Regulation (EU) 2017/1938 and shall be consistent with the results of the national risk assessments carried out pursuant to Article 7(3) of that Regulation, as detailed in the preventive action plans prepared pursuant to Article 9(1), points (c), (d) and (k), of that Regulation. Public service obligations going beyond what is necessary to ensure compliance with Article 6 of Regulation (EU) 2017/1938 shall comply with the criteria set out in Article 8(1) of that Regulation.

4. Where financial compensation or other forms of compensation are granted by a Member State for the fulfilment of the obligations set out in this Article, it shall be done in a non-discriminatory and transparent manner.

5. Member States shall, upon transposition of this Directive, inform the Commission of all measures adopted to fulfil public service obligations, including consumer and environmental protection, and their possible effect on national and international competition, whether or not such measures require a derogation from this Directive. They shall notify the Commission subsequently every two years of any changes to such measures, whether or not they require a derogation from this Directive.

6. When imposing public service obligations pursuant to paragraph 2, Member States shall consult the relevant stakeholders at an early stage and in an open, inclusive and transparent manner. All official documents related to the consultations and documents used for development of the public service obligation shall be made public while preserving the confidentiality of commercially sensitive information and data protection.