Article 27 3.

Member States shall ensure that transmission and distribution system operators monitor and quantify the overall volume of network losses and, where it is technically and financially feasible, optimise networks and improve network efficiency. Transmission and distribution system operators shall report those measures and expected energy savings through the reduction of network losses to the national energy regulatory authority. Member States shall ensure that transmission and distribution system operators assess energy efficiency improvement measures with regard to their existing gas or electricity transmission or distribution systems and improve energy efficiency in infrastructure design and operation, especially in terms of smart grid deployment. Member States shall encourage transmission and distribution system operators to develop innovative solutions to improve the energy efficiency of existing and future systems through incentive-based regulations in accordance with the tariff principles set out in Article 18 of Regulation (EU) 2019/943 and Article 13 of Regulation (EC) No 715/2009.