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1. When setting tariffs, a discount for renewable gas and low-carbon gas shall be applied to:

(a) entry points from renewable gas and low-carbon gas production facilities;

(b) capacity-based transmission tariffs at entry points from and exit points to natural gas storage facilities, unless such a storage facility is connected to more than one transmission or distribution network and is used to compete with an interconnection point. The discount pursuant to the first subparagraph, point (a), shall be set at 100 % with regard to the relevant capacity-based tariffs for the purpose of scaling-up the injection of renewable gas and a discount of 75 % to low-carbon gas. The discount pursuant to the first subparagraph, point (b), shall be set at 100 % in the Member States where the renewable gas or low-carbon gas was first injected into the system.

2. Details on the discounts granted in accordance with paragraph 1 of this Article may be laid down in the network code on tariff structures as referred to in Article 71(2), first subparagraph, point (d).

3. By 5 August 2029 and every five years thereafter, the Commission shall re-examine the level of the discounts laid down in paragraphs 1 and 4. The Commission shall issue a report providing an overview of the implementation of the discounts and assess whether the level of those discounts is still adequate in view of the latest market developments. The Commission shall be empowered to adopt delegated acts in accordance with Article 80 to amend this Regulation by changing the level of the discounts laid down in paragraphs 1 and 4 of this Article.

4. From 5 August 2025, network users shall obtain a discount of 100 % on the capacity-based tariff from the transmission system operator at interconnection points between Member States, for renewable gas and 75 % for low-carbon gas, after providing the transmission system operator concerned with a proof of sustainability, on the basis of a valid sustainability certificate obtained for renewable gas pursuant to Articles 29 and 30 of Directive (EU) 2018/2001 and registered in the Union database referred to in Article 31a of that Directive, and for low-carbon gas on the basis of a valid certificate obtained pursuant to Article 9 of Directive (EU) 2024/1788. With regard to the discounts referred to in the first subparagraph:

(a) transmission system operators shall be required to provide the discount only for the shortest possible route in terms of border crossings between the location of where the specific proof of sustainability declaration, on the basis of a certificate referred to in the first subparagraph, was first recorded in the Union database and where it has been cancelled as considered consumed, provided that any potential auction premium is not covered by the discount;

(b) transmission system operators shall provide the relevant regulatory authority with information on actual and expected volumes of renewable gas and low-carbon gas and the effect of applying the tariff discount on their revenue and regulatory authorities shall monitor and assess the impact of the discount on tariff stability;

(c) once the revenue of a transmission system operator from those specific tariffs is reduced by 10 % as a result of applying the discount, the affected and all neighbouring transmission system operators shall negotiate an inter-transmission-system-operator compensation mechanism;

(d) further details required to implement the discount for renewable gas and low-carbon gas, such as the calculation of the eligible capacity for which the discount applies and the required processes, shall be set in a network code established pursuant to Article 71. The transmission system operators concerned shall agree on an inter-transmission-system-operator compensation mechanism within three years of their revenue from specific tariffs being reduced by 10 % as referred to in the second subparagraph, point (c), of this paragraph. Where, within that period, no agreement is reached, the relevant regulatory authorities shall decide jointly on an appropriate inter-transmission-system-operator compensation mechanism within two further years. In the absence of an agreement among the regulatory authorities, Article 6 of Regulation (EU) 2019/942 shall apply. Where the regulatory authorities are not able to reach an agreement within two years, or upon their joint request, ACER shall adopt an individual decision, in accordance with Article 6(10) of Regulation (EU) 2019/942.

5. By way of derogation from paragraphs 1 and 4 of this Article, regulatory authorities may decide not to apply discounts or to lay down discounts lower than those laid down in paragraphs 1 and 4 of this Article, provided that such a derogation is in line with the general tariff principles as set out in Article 17 and in particular the principle of cost-reflectiveness, where one of the following criteria is met:

(a) the derogation is necessary for the efficient operation of the transmission system, to ensure a stable financial framework for existing investments or to avoid undue cross-subsidies, distortion to cross-border trade or an ineffective inter-transmission-system-operator compensation mechanism;

(b) the application of discounts laid down in paragraphs 1 and 4 is not necessary due to the degree of advancement of the roll-out of renewable gas and low-carbon gas in the Member State concerned or the existence of alternative support mechanisms for scaling-up the use of renewable gas or low-carbon gas.