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h2. Article

1.	Member States may provide for national regulatory authori­ ties or other competent authorities to classify a system which dis­ tributes electricity within a  geographically  confined industrial, commercial or shared services site and does not, without preju­ dice to paragraph 4, supply household customers, as a closed dis­ tribution system if:


(a)  for specific technical or safety reasons, the operations or the production process of the users of that system are integrated; or


(b)  that system distributes electricity primarily to the owner or operator of the system or their related undertakings.


2.	Member States may provide for national regulatory authori­
ties to exempt the operator of a closed distribution system from:


(a)  the requirement under Article 25(5) to procure the energy it uses to cover energy losses and reserve capacity in its system according to  transparent,  non-discriminatory and  market based procedures;


(b)  the requirement under Article 32(1) that tariffs, or the meth­ odologies underlying their calculation, are approved prior to their entry into force in accordance with Article 37.


3.	Where an exemption is granted under paragraph 2,  the applicable tariffs, or the methodologies underlying their calcula­ tion,  shall  be  reviewed  and  approved  in   accordance  with Article 37  upon  request by a user of  the  closed distribution system.


4.	Incidental use by  a  small number  of  households  with employment or similar associations with the owner of the distri­ bution system and located within the area served by a closed dis­ tribution   system  shall  not   preclude  an   exemption  under paragraph 2 being granted.

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[Directive 2009/72/EC concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC|http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:211:0055:0093:EN:PDF]\\
Date 21.10.2011.
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