'Distribution' means the transport of electricity on high-voltage, medium-voltage and low-voltage distribution systems with a view to its delivery to customers, but does not include supply (Article 2(28) of Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU).
This definition is left unchanged in comparison with the previous Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity (Article 2(5)).
In contrast to the electricity supply, which is a competitive market, electricity distribution networks are natural monopolies, consequently, the respective tariffs are not determined by markets, but regulated.
“There is no standard which describes the separation of distribution from transmission from a technical point of view. Any separation appears to be related to the voltage levels managed by DSOs. According to European Standard EN 50160, a nominal voltage can be classified as “medium voltage” (MV) if it is comprised between 1 and 35 kV. Below 1 kV, a nominal voltage is classified “Low voltage” (LV), and above 35 kV “High voltage” (HV).
Generally, DSOs operate MV and LV networks, that are typically radial. In many Member States, DSOs also operate some high voltage (HV) networks where the transmission grid does not comprise the whole HV network. In these cases, DSOs not only manage radial networks, but also meshed networks. This has implications on the market as DSOs could be involved in HV congestion management after the day-ahead market session. In other countries, like Italy, and France, DSOs manage only MV and LV grids, and in the same countries the TSO manages all meshed networks, which contributes to a simplification of roles and procedures for solving HV congestions“ (CEER Conclusions Paper of 22 March 2019, New Services and DSO Involvement, Ref: C18-DS-46-08, p. 12).
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Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU, Article 2(28)
Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC, Article 2(5)
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Distribution System Operator (DSO)