Directive 2005/89/EC concerning measures to safeguard security of electricity supply and infrastructure investment, referred to as SoS directive, was published in the EU Official Journal of 4 February 2006.

Objectives

The main objective of the directive is to specify activities aiming at safeguarding security of electricity supply and ensuring proper functioning of the internal market. This is to be accomplished by an appropriate level of power generating capacities, marinating balance between demand and supply of electricity and an appropriate number of interconnections between Member States power systems. Member States are responsible to ensure a high level of security of electricity supply by taking necessary measures to facilitate a stable investment climate. The directive sets out aspects which may and which must be taken into account They include: importance of ensuring continuity of electricity supplies, transparent and stable regulatory framework, internal market and cross-border co-operation, need to ensure sufficient transmission and generation reserve capacity for stable operation, encouraging the establishment of liquid wholesale markets, encouraging energy efficiency and the adoption of new technologies or removing administrative barriers for investments in infrastructure and generation capacity.

Network Security

For the most part, the provisions of the directive stipulate that Member States shall ensure the minimum operational rules and obligations on network security that must be complied with by transmission system operators and distribution system operators in some cases as well. They include: maintenance of an appropriate level of technical transmission reserve capacity, exchange of information relating to the operation of networks between operators or predefining criteria relating to the management of imbalances by transmission system operators in emergency situations. Member States shall establish a regulatory framework that provides investment signals for both the transmission and distribution system network operators to develop their networks (...) facilitates maintenance and, where necessary, renewal of their networks.

Balance between supply and demand

Member States shall take appropriate measures to maintain a balance between the demand for electricity and the availability of generation capacity. This issue was settled in Article 5 of the directive. It directly refers to availability of generation power capacity and obliges Member States to ensure the establishment of a wholesale market framework that provides suitable price signals for generation and consumption and requires transmission system operators to ensure that an appropriate level of generation reserve capacity is available. Additional measures that may be taken by Member States include: removal of barriers that prevent the conclusion of contracts of varying lengths for both producers and customers, provisions facilitating new generation capacity and encouragement of energy conservation measures.

The directive obliges Member States to report on operational network security, the projected balance of supply and demand and investment intentions under Directive 2003/54/EC. The section of the report relating to investment intentions shall in particular take account of interconnection information.

The directive entered into force on 24 February 2006, whereas Member States shall provide for their own legal regulations following the directive until 24 February 2008.

STANISŁAW TOKARSKI
JERZY JANIKOWSKI