65. Notes that a more decentralised and flexible energy system, with power and heat sources being placed closer to the point of consumption, can facilitate small-scale energy generation and therefore empowers consumers to be more involved in the energy market and control their own energy use, diminishes transmission and distribution losses, improves the resilience of energy infrastructure, and simultaneously provides local business opportunities for small and medium-sized enterprises; calls on the Commission and the Member States, th ...[+++]erefore, to facilitate further development and expansion of local and regional renewable energy sources and of local and regional distribution networks and district heating networks through policies that tackle existing barriers and help bring about market transformation; calls on the Commission to propose guidelines on energy self-consumption in order to promote its use and protect the rights of consumers;

smart grids, defined as any equipment, line, cable or installation, both at transmission and low and medium voltage distribution level, aiming at two-way digital communication, real-time or close to real-time, interactive and intelligent monitoring and management of electricity generation, transmission, distribution and consumption within an electricity network in view of developing a network efficiently integrating the behaviour and actions of all users connected to it — generators, consumers and those that do both — in order to ensure an economically efficient, sustainable electricity system ...[+++] with low losses and high quality and security of supply and safety;

smart grids, defined as any equipment, line, cable or installation, both at transmission and low and medium voltage distribution level, aiming at two-way digital communication, real-time or close to real-time, interactive and intelligent monitoring and management of electricity generation, transmission, distribution and consumption within an electricity network in view of developing a network efficiently integrating the behaviour and actions of all users connected to it — generators, consumers and those that do both — in order to ensure an economically efficient, sustainable electricity system ...[+++] with low losses and high quality and security of supply and safety;

Further loss allocation methods which may benefit the financial system as a whole by diffusing losses, should follow principles set out and agreed with regulators, so as to avoid unfavourable terms for the clients of clearing members which may be a result of unequal power relationships.