2006/375/EC: Commission Decision of  23 May 2006  derogation from certain provisions of Directive 2003/54/EC concerning the archipelago of Madeira  (notified under document number C(2006) 2008)
Date: 2006-05-23
Institutions: European Commission
Subjects: Madeira, approximation of laws, derogation from EU law, electrical energy, energy distribution, energy production, energy supply, energy transport, single market

30.5.2006

EN

Official Journal of the European Union

L 142/35

COMMISSION DECISION

of 23 May 2006

derogation from certain provisions of Directive 2003/54/EC concerning the archipelago of Madeira

(notified under document number C(2006) 2008)

(Only the Portuguese text is authentic)

(2006/375/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(5)

Having regard to the Treaty
Community,

establishing the European

Having regard to Directive 2003/54/EC of
the European
Parliament and of the Council of 26 June 2003 concerning
common rules
in electricity and
the internal market
repealing Directive 96/92/EC (1), and in particular Article
26(1) thereof,

for

Whereas:

size of

the presence of

The documents annexed to the Portuguese application
give sufficient evidence that the objective of a compe-
titive market in electricity is impossible or impractical to
achieve given the very small level of production and the
fact that the islands are also isolated from one another.
In such a very small system, it is often not possible to
have more than one generating facility per island, which
makes
competing generators very
the market will hardly
impractical. The
stimulate the application for authorisations or bids for
tenders; in addition the level of consumption fluctuates
widely: the infrastructures need to be sized according to
the maximum demand, which is much higher than the
In other words in such peculiar electric
average one.
systems,
supply issues have
absolute priority. Finally, there is no high voltage trans-
mission system, and without competition in production
the Directive’s requirements regarding the unbundling of
distribution systems lose their justification. The same
considerations are valid concerning third party access
to the system.

security and quality of

into force,

Article 26(1) of Directive 2003/54/EC provides that
after
Member States which can demonstrate,
the
there are
Directive has been brought
substantial problems for the operation of
their small
isolated systems, may apply for derogations from the
relevant provisions of Chapters IV, V, VI, VII, as well
as Chapter III, in the case of micro isolated systems, as
far as refurbishing, upgrading and expansion of existing
capacity are concerned, which may be granted to them
by the Commission.

that

Portugal submitted to the Commission on 18 August
2005 an application for derogation for an indefinite
period of time from the provisions of Chapters III, IV,
V, VI, VII under Article 26(1) of Directive 2003/54/EC
concerning the archipelago of Madeira.

(6)

(7)

The Commission, having examined the justification of
Portugal's request,
is satisfied that the derogation and
the conditions for its application will not prejudice the
achievement of the objectives of the Directive.

However, possible technological developments in the
medium and long term that may bring about substantial
changes need to be taken into account.

(8)

The Commission has consulted all Member States as
prescribed in Article 26(1) of Directive 2003/54/EC,

The archipelago of Madeira qualifies as a ‘micro isolated
system’
as defined in Article 2(27) of Directive
2003/54/EC.

HAS ADOPTED THIS DECISION:

The archipelago of Madeira’s peculiar characteristics of
remoteness,
topography
insularity, small size, difficult
and climate, have been acknowledged in Article 299(2)
of the EC Treaty.

(1) OJ L 176, 15.7.2003, p. 37.

Article 1

A derogation from the relevant provisions of Chapters IV, V, VI,
VII, as well as Chapter III, as far as refurbishing, upgrading and
expansion of existing capacity are concerned, is granted to the
Republic of Portugal for the isles of the archipelago of Madeira.

(1)

(2)

(3)

(4)

L 142/36

EN

Official Journal of the European Union

30.5.2006

Article 2

Article 4

the

electricity sector of Madeira

The Portuguese national authorities shall monitor the evolution
of
to the
Commission any substantial change therein that may require
the review of the granted derogation. A first report shall be
submitted four years after the date of
this decision and a
second one nine years after that date.

and report

This Decision is addressed to the Republic of Portugal.

Done at Brussels, 23 May 2006.

Article 3

This derogation is valid for an indefinite period of time. It can
be reviewed by the Commission if substantial changes occur in
the electricity sector of Madeira.

For the Commission

Andris PIEBALGS
Member of the Commission