The Industry Committee is insisting that the Agency for the Cooperation of Energy Regulators - proposed as part of the energy package - should have regulatory powers, contrary to the Commission's original plan. On Wednesday 28th May 2008, Committee voted on three related first-reading reports, overwhelming majorities on the committee backed a strong decision-making role for the Agency.

The Commission, in its original proposals, proposed creating two bodies to bring together the various entities running power distribution networks: the European Network of Transmission System Operators for electricity (ENTSOE) and gas (ENTSOG), endowing each with the power to adopt:

1. Network codes on:

• Security rules, including interoperability rules and procedures for emergency situations.
• Grid connection and access rules.
• Cross-border capacity allocation and congestion management rules.
• Network-related transparency rules.
• Energy efficiency rules.

and

• A 10-year investment plan.
• An annual work programme.
• Research plans.

The Agency would only have played an advisory role to these two bodies. The Committee, however, turned this situation around.  There was wide agreement among the political groups that it ought to be the ENTSOs who, on the basis of Agency guidelines, propose the rules, plans and codes cited above, and the Agency which adopts them. Moreover, MEPs decided, the Agency should monitor the ENTSOs' implementation of the network codes. It should also have a considerable say in defining "issues of prime importance" for the development of the internal market in electricity and gas.
 
With new competences come new responsibilities. The Agency, MEPs decided, should therefore be made more accountable. Its director should be subject to a vote of approval by the European Parliament and should regularly report back to the EP on the performance of his or her duties.
 
The seat of the Agency, according to the committee, should be in Brussels.