Court of Justice (Fifth Chamber) 28 November 2024, C-293/23 (ENGIE Deutschland GmbH v Landesregulierungsbehörde beim Sächsischen Staatsministerium für Wirtschaft, Arbeit und Verkehr.)

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The Court of Justice of the European Union ruled that Directive (EU) 2019/944 precludes national legislation exempting an undertaking from the obligations of a distribution system operator when it operates an energy facility supplying electricity to residential complexes, provided the facility transports electricity at high, medium, or low voltage for sale to customers. The Court held that Member States may not introduce additional criteria, such as the size of the facility or the method of generation, to exclude such systems from the scope of the Directive unless an express derogation applies. Consequently, an entity responsible for operating such a system must be classified as a distribution system operator to ensure a level playing field and the integration of the internal market for electricity.AI