Article 2

For the purposes of this Directive: 1. 'generation` shall mean the production of electricity; 2. 'producer` shall mean a natural or legal person generating electricity; 3. 'autoproducer` shall mean a natural or legal person generating electricity essentially for his own use; 4. 'independent producer` shall mean: a producer who does not carry out electricity transmission or distribution functions in the territory covered by the system where he is established; in Member States in which vertically integrated undertakings do not exist and where a tendering procedure is used, a producer corresponding to the definition of point (a), who may not be exclusively subject to the economic precedence of the interconnected system; 5. 'transmission` shall mean the transport of electricity on the high-voltage interconnected system with a view to its delivery to final customers or to distributors; 6. 'distribution` shall mean the transport of electricity on medium-voltage and low-voltage distribution systems with a view to its delivery to customers; 7. 'customers` shall mean wholesale or final customers of electricity and distribution companies; 8. 'wholesale customers` shall mean any natural or legal persons, if the Member States recognize their existence, who purchase or sell electricity and who do not carry out transmission, generation or distribution functions inside or outside the system where they are established; 9. 'final customer` shall mean a customer buying electricity for his own use; 10. 'interconnectors` shall mean equipment used to link electricity systems; 11. 'interconnected system` shall mean a number of transmission and distribution systems linked together by means of one or more interconnectors; 12. 'direct line` shall mean an electricity line complementary to the interconnected system; 13. 'economic precedence` shall mean the ranking of sources of electricity supply in accordance with economic criteria; 14. 'ancillary services` shall mean all services necessary for the operation of a transmission or distribution system; 15. 'system user` shall mean any natural or legal person supplying to, or being supplied by, a transmission or distribution system; 16. 'supply` shall mean the delivery and/or sale of electricity to customers; 17. 'integrated electricity undertaking` shall mean a vertically or horizontally integrated undertaking; 18. 'vertically integrated undertaking` shall mean an undertaking performing two or more of the functions of generation, transmission and distribution of electricity; 19. 'horizontally integrated undertaking` shall mean an undertaking performing at least one of the functions of generation for sale, or transmission or distribution of electricity, and another non-electricity activity; 20. 'tendering procedure` shall mean the procedure through which planned additional requirements and replacement capacity are covered by supplies from new or existing generating capacity; 21. 'long-term planning` shall mean the planning of the need for investment in generation and transmission capacity on a long-term basis, with a view to meeting the demand for electricity of the system and securing supplies to customers; 22. 'single buyer` shall mean any legal person who, within the system where he is established, is responsible for the unified management of the transmission system and/or for centralized electricity purchasing and selling; 23. 'small isolated system` shall mean any system with consumption of less than 2500 GWh in the year 1996, where less than 5 % of annual consumption is obtained through interconnection with other systems. CHAPTER II General rules for the organization of the sector

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Source: EUR-Lex (Cellar) · retrieved 2026-10-31 · Text as adopted (Official Journal); later amendments are not incorporated in this text.