Network Codes and new challenges for midstream

Sergio Ascari

Chapter 8 in European Gas Markets in Transition, 2026, pp 128-153 from Edward Elgar Publishing

Abstract: This chapter starts with a brief history of the development of European gas TSOs to outline their outlook and challenges, as the current energy transition envisages a significant reduction in the role of natural gas, only partly offset by the development of new, renewable gases. The current regulatory system, largely based on guaranteed allowed revenues, partly protects TSOs but may lead to delayed reckoning if gas demand falls as expected. The chapter summarises the approval and implementation of EU Network Codes (NCs) and their main obstacles. The performance of the European gas transmission system, shaped by NCs, during the 2021–2022 crisis is assessed, as gas demand fell and flows were overwhelmingly inverted in much of Europe towards a dominant West-East direction. Finally, the chapter discusses NCs from the perspective of regulatory theory, finding that a prescriptive “command and control” approach has prevailed, instead of usually more efficient solutions based on incentives and penalties.

Keywords: European gas transmission system operators; Energy transition in natural gas; EU gas Network Codes; Gas market regulation; Gas demand decline (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035382958
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