2006/859/EC: Commission Decision of 28 November 2006 granting Malta a derogation from certain provisions of Directive 2003/54/EC of the European Parliament and of the Council (notified under document number C(2006) 5642)
Date: 2006-11-28
Institutions: European Commission
Subjects: Malta, derogation from EU law, electrical energy, energy distribution, energy production, energy supply, energy transport, single market

L 332/32

EN

Official Journal of the European Union

30.11.2006

COMMISSION DECISION

of 28 November 2006

granting Malta a derogation from certain provisions of Directive 2003/54/EC of the European
Parliament and of the Council

(notified under document number C(2006) 5642)

(Only the English text is authentic)

(2006/859/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(3)

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
in electricity and
the internal market
common rules
repealing Directive 96/92/EC (1), and in particular Article
26(1) thereof,

for

Having regard to the application submitted by Malta on 15
November 2005,

After informing the Member States of the application,

Whereas:

(4)

(5)

(6)

On 15 November 2005, Malta submitted an application
to the Commission for a derogation for an indefinite
period of time from the provisions of Chapter IV of
Directive 2003/54/EC and from Article 20(1) and
thereof.
Article 21(1)
the
submission of
such an application is contained in
Article 26(1) of that Directive.

authority

Express

for

(1)

(2)

The documents annexed to the application provide
sufficient evidence that it is impossible or impractical
for the time being to achieve the objective of a compe-
titive market in electricity given the size and structure of
In such circum-
the electricity market on the island.
the market would create
stances an opening up of
substantial problems
to the
relating
in
security of supply of electricity and would result
higher costs for consumers. In addition, there is no trans-
mission system and therefore no operator can be
designated; without competition in supply,
there also
requirements of
ceases
Directive 2003/54/EC regarding third party access to
distribution systems.

justification for

in particular

to be

the

The Commission, having examined the grounds put
forward in support of Malta's application,
is satisfied
that the derogation and the conditions for its application
will not prejudice the eventual achievement of
the
objectives of Directive 2003/54/EC.

The derogation requested by Malta should therefore be
granted.

application gives

the present situation,

However, whilst Malta’s
fair
description of
take
into consideration possible technological developments
in the medium- and long-term, which are liable to lead
to substantial changes. The situation should therefore be
monitored regularly,

a
it does not

‘small

Malta qualifies as a ‘small isolated system’ as defined in
(26) of Article 2 of Directive 2003/54/EC.
point
isolated system’
According to that provision,
than
less
means any system with consumption of
3 000 GWh in 1996, where less than 5 % of annual
consumption is obtained through interconnection with
other systems.
In 1996, Malta consumed 1 695 GWh.
Malta is an isolated not interconnected power system
and these derogations are requested for as long as it
remains an isolated system.

HAS ADOPTED THIS DECISION:

Article 1

A derogation from Chapter IV of Directive 2003/54/EC and
from Article 20(1) and Article 21(1) thereof is granted to Malta.

Article 2

(1) OJ L 176, 15.7.2003, p. 37. Directive amended by Council Directive

2004/85/EC (OJ L 236, 7.7.2004, p. 10).

The derogation may be withdrawn or
Commission if substantial changes occur
sector of Malta.

revised by
the
in the electricity

30.11.2006

EN

Official Journal of the European Union

L 332/33

To that end, Malta shall monitor the evolution of the electricity sector and shall report to the Commission
any substantial changes therein, in particular information on new generating licenses, new entrants in the
market and new infrastructure plans that may necessitate a review of the derogation.

In addition, Malta shall submit a general report to the Commission every two years, starting no later than
31 December 2008. The reports shall set out tarification and pricing policy together with measures taken to
protect customers’ interests in the light of the derogation.

This Decision is addressed to the Republic of Malta.

Article 3

Done at Brussels, 28 November 2006.

For the Commission

Andris PIEBALGS
Member of the Commission