This judgment concerns the interpretation of EU electricity market rules, specifically regarding the concept of electricity distribution systems and their operators. The Court analyzes whether an energy facility that supplies electricity to residential buildings can be excluded from being classified as a distribution system under EU law. The key elements examined are the definition of ‘distribution system’ and ‘distribution system operator’ under Directive 2019/944. The main provisions establish that:
- A distribution system is defined solely based on two criteria: the voltage level of transported electricity and the category of customers it serves
- Member States cannot exclude facilities from being classified as distribution systems based on additional criteria like size, ownership, or method of electricity generation
- Operators of such systems must comply with all obligations under EU law unless they qualify for specific exemptions explicitly provided in the Directive
The Court ruled that national legislation cannot exempt an energy facility operator from distribution system operator obligations if the facility transports electricity at any voltage level for sale to customers, unless it qualifies for explicit exemptions under EU law. This interpretation aims to ensure integrated, competitive and consumer-centered electricity markets across the EU.
