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1. Member States shall achieve cumulative end-use energy savings at least equivalent to:

(a) new savings each year from 1 January 2014 to 31 December 2020 of 1,5 % of annual energy sales to final customers by volume, averaged over the most recent three-year period preceding 1 January 2013. Sales of energy, by volume, used in transport may be excluded, in whole or in part, from that calculation;

(b) new savings each year from 1 January 2021 to 31 December 2030 of:

(i) 0,8 % of annual final energy consumption from 1 January 2021 to 31 December 2023, averaged over the most recent three-year period preceding 1 January 2019;

(ii) 1,3 % of annual final energy consumption from 1 January 2024 to 31 December 2025, averaged over the most recent three-year period preceding 1 January 2019;

(iii) 1,5 % of annual final energy consumption from 1 January 2026 to 31 December 2027, averaged over the most recent three-year period preceding 1 January 2019;

(iv) 1,9 % of annual final energy consumption from 1 January 2028 to 31 December 2030, averaged over the most recent three-year period preceding 1 January 2019. By way of derogation from point (b)(i) of the first subparagraph, Cyprus and Malta shall achieve new savings each year from 1 January 2021 to 31 December 2023, equivalent to 0,24 % of annual final energy consumption, averaged over the most recent three-year period prior to 1 January 2019. By way of derogation from points (b)(ii), (iii) and (iv) of the first subparagraph, Cyprus and Malta shall achieve new savings each year from 1 January 2024 to 31 December 2030 equivalent to 0,45 % of annual FEC, averaged over the most recent three-year period preceding 1 January 2019. Member States shall decide how to phase the calculated quantity of new savings over each period referred to in points (a) and (b) of the first subparagraph, provided that the required total cumulative end-use energy savings have been achieved by the end of each obligation period. Member States shall continue to achieve new annual savings in accordance with the savings rate provided for in point (b)(iv) of the first subparagraph for ten-year periods after 2030.

2. Member States shall achieve the amount of energy savings required under paragraph 1 of this Article either by establishing an energy efficiency obligation scheme as referred to in Article 9 or by adopting alternative policy measures as referred to in Article 10. Member States may combine an energy efficiency obligation scheme with alternative policy measures. Member States shall ensure that energy savings resulting from the policy measures referred to in Articles 9 and 10 and Article 30(14) are calculated in accordance with Annex V.

3. Member States shall implement energy efficiency obligation schemes, alternative policy measures, or a combination of both, or programmes or measures financed under a national energy efficiency fund, as a priority among, but not limited to, people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing. Member States shall ensure that policy measures implemented pursuant to this Article have no adverse effect on those persons. Where applicable, Member States shall make the best possible use of funding, including public funding, funding facilities established at Union level, and revenues from allowances pursuant to Article 24(3), point (b), with the aim of removing adverse effects and ensuring a just and inclusive energy transition. For the purpose of achieving the energy savings required under paragraph 1 and without prejudice to Regulation (EU) 2019/943 and Directive (EU) 2019/944, Member States shall, for the purpose of designing such policy measures, consider and promote the role of renewable energy communities and citizen energy communities in the contribution to the implementation towards those policy measures. Member States shall establish and achieve a share of the required amount of cumulative end-use energy savings among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing. This share shall at least be equal to the proportion of households in energy poverty as assessed in their national energy and climate plans established in accordance with Article 3(3), point (d), of Regulation (EU) 2018/1999. Member States shall, in their assessment of the share of energy poverty in their national energy and climate plans, consider the following indicators:

(a) the inability to keep the home adequately warm (Eurostat, SILC [ilc_mdes01]);

(b) the arrears on utility bills (Eurostat, SILC [ilc_mdes07]);

(c) the total population living in a dwelling with a leaking roof, damp walls, floors or foundation, or rot in window frames or floor (Eurostat, SILC [ilc_mdho01]);

(d) at-risk-of-poverty rate (Eurostat, SILC and ECHP surveys [ilc_li02]) (cutoff point: 60 % of median equivalised income after social transfers). If a Member State has not notified the share of households in energy poverty as assessed in their national energy and climate plan, the share of the required amount of cumulative end-use energy savings among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing, shall be at least equal to the arithmetic average share of the indicators referred to in the third subparagraph for the year 2019 or, if not available for 2019, for the linear extrapolation of their values for the last three years that are available.

4. Member States shall include information about the indicators applied, the arithmetic average share and the outcome of policy measures established in accordance with paragraph 3 of this Article in the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, in their subsequent integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of that Regulation, and in the related national energy and climate progress reports submitted pursuant to Article 17 of that Regulation.

5. Member States may count energy savings that stem from policy measures, whether introduced by 31 December 2020 or after that date, provided that those measures result in new individual actions that are carried out after 31 December 2020. Energy savings achieved in any obligation period shall not count towards the amount of required energy savings for the previous obligation periods set out in paragraph 1.

6. Provided that Member States achieve at least their cumulative end-use energy savings obligation referred to in paragraph 1, first subparagraph, point (b)(i), they may calculate the required amount of energy savings referred to in that point by one or more of the following means:

(a) applying an annual savings rate on energy sales to final customers or on final energy consumption, averaged over the most recent three-year period preceding 1 January 2019;

(b) excluding, in whole or in part, energy used in transport from the calculation baseline;

(c) making use of any of the options set out in paragraph 8.

7. Where Member States make use of any of the possibilities provided for in paragraph 6 regarding the required energy savings referred to in paragraph 1, first subparagraph, point (b)(i), they shall establish:

(a) their own annual savings rate that will be applied in the calculation of their cumulative end-use energy savings, which shall ensure that the final amount of their net energy savings is no lower than those required under that point;

(b) their own calculation baseline, which may exclude, in whole or in part, energy used in transport.

8. Subject to paragraph 9, each Member State may:

(a) carry out the calculation required under paragraph 1, first subparagraph, point (a), using values of 1 % in 2014 and 2015, 1,25 % in 2016 and 2017, and 1,5 % in 2018, 2019 and 2020;

(b) exclude from the calculation all or part of the sales of energy used, by volume, with respect to the obligation period referred to in paragraph 1, first subparagraph, point (a), or final energy consumed, with respect to the obligation period referred to in point (b)(i), of that subparagraph, by industrial activities listed in Annex I to Directive 2003/87/EC;

(c) count towards the amount of required energy savings in paragraph 1, first subparagraph, points (a) and (b)(i), energy savings achieved in the energy transformation, distribution and transmission sectors, including efficient district heating and cooling infrastructure, as a result of implementing the requirements set out in in Article 25(4), point (a), of Article 26(7), and Article 27(1), (5) to (9) and (11). Member States shall inform the Commission about their intended policy measures under this point for the period from 1 January 2021 to 31 December 2030 as part of their integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12. The impact of those measures shall be calculated in accordance with Annex V and included in those plans;

(d) count towards the amount of required energy savings, energy savings resulting from individual actions newly implemented since 31 December 2008 that continue to have an impact in 2020 with respect to the obligation period referred to in paragraph 1, first subparagraph, point (a), and beyond 2020 with respect to the period referred to in point (b)(i), of that subparagraph, and which can be measured and verified;

(e) count towards the amount of required energy savings, energy savings that stem from policy measures, provided that it can be demonstrated that those measures result in individual actions carried out from 1 January 2018 to 31 December 2020 which deliver savings after 31 December 2020;

(f) exclude from the calculation of the amount of required energy savings pursuant to paragraph 1, first subparagraph, points (a) and (b)(i), 30 % of the verifiable amount of energy generated on or in buildings for own use as a result of policy measures promoting new installation of renewable energy technologies;

(g) count towards the amount of required energy savings pursuant to paragraph 1, first subparagraph, points (a) and (b)(i), energy savings that exceed the energy savings required for the obligation period from 1 January 2014 to 31 December 2020, provided that those savings result from individual actions carried out under policy measures referred to in Articles 9 and 10, notified by Member States in their national energy efficiency action plans and reported in their progress reports in accordance with Article 26.

9. Member States shall apply and calculate the effect of the options chosen under paragraph 8 for the period referred to in paragraph 1, first subparagraph, points (a) and (b)(i), separately:

(a) for the calculation of the amount of energy savings required for the obligation period referred to in paragraph 1, first subparagraph, point (a), Member States may make use of the options listed in paragraph 8, points (a) to (d). All the options chosen under paragraph 8 taken together shall amount to no more than 25 % of the amount of energy savings referred to in paragraph 1, first subparagraph, point (a);

(b) for the calculation of the amount of energy savings required for the obligation period referred to in paragraph 1, first subparagraph, point (b)(i), Member States may make use of the options listed in paragraph 8, points (b) to (g), provided that the individual actions referred to in paragraph 8, point (d), continue to have a verifiable and measurable impact after 31 December 2020. All the options chosen under paragraph 8 taken together shall not lead to a reduction of more than 35 % of the amount of energy savings calculated in accordance with paragraphs 6 and 7. Regardless of whether Member States exclude, in whole or in part, energy used in transport from their calculation baseline or make use of any of the options listed in paragraph 8, they shall ensure that the calculated net amount of new savings to be achieved in final energy consumption during the obligation period referred to in paragraph 1, first subparagraph, point (b)(i), from 1 January 2021 to 31 December 2023 is not lower than the amount resulting from applying the annual savings rate referred to in that point.

10. Member States shall describe in the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, in their subsequent integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999 and in accordance with Annex III to Regulation (EU) 2018/1999, and respective progress reports the calculation of the amount of energy savings to be achieved over the period from 1 January 2021 to 31 December 2030 and shall, if relevant, explain how the annual savings rate and the calculation baseline were established, and how and to what extent the options referred to in paragraph 8 of this Article were applied.

11. Member States shall notify the Commission of the amount of the required energy savings referred to in paragraph 1, first subparagraph, point (b), and paragraph 3 of this Article, a description of the policy measures to be implemented to achieve the required total amount of the cumulative end-use energy savings and their calculation methodologies pursuant to Annex V to this Directive, as part of the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, and as part of their integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999. Member States shall use the reporting template provided to the Member States by the Commission.

12. Where on the basis of the assessment of the integrated national energy and climate progress reports pursuant to Article 29 of Regulation (EU) 2018/1999, or of the draft or final update of the latest notified integrated national energy and climate plan submitted pursuant to Article 14 of Regulation (EU) 2018/1999, or of the assessment of the subsequent draft and final integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999, the Commission concludes that policy measures do not ensure the achievement of the required amount of cumulative end-use energy savings by the end of the obligation period, the Commission may issue recommendations in accordance with Article 34 of Regulation (EU) 2018/1999 to the Member States whose policy measures it deems to be insufficient to ensure the fulfilment of their energy savings obligations.