Sectors Procurement Ordinance (SektVO) in German Procurement Law

The German Sectors Procurement Ordinance (SektVO) regulates above-threshold procurement by utilities contracting entities in water, energy, transport and postal services. Implements Directive 2014/25/EU.

Definition: The Sectors Procurement Ordinance (SektVO) is the German statutory instrument implementing Directive 2014/25/EU for procurement by utilities contracting entities in water, energy, transport and postal services above the EU thresholds, issued under §§ 100 et seq., 113 GWB.

Last updated: January 2026 · Legal basis: SektVO of 12 April 2016 (BGBl. I p. 624); GWB §§ 100–109; Directive 2014/25/EU

What is the Sectors Procurement Ordinance (SektVO)?

The SektVO is the utilities equivalent of the Procurement Ordinance (VgV) and entered into force together with the VgV on 18 April 2016. It transposes Directive 2014/25/EU (the Utilities Directive) into German law and applies to contracting entities operating in the so-called utilities sectors – water, energy, transport and postal services.

Under § 100 GWB, utilities contracting entities are:

Public contracting authorities under § 99 GWB that pursue utilities activities
Public undertakings that pursue utilities activities
Private undertakings that pursue utilities activities on the basis of special or exclusive rights

The enabling provision is § 113 GWB in conjunction with §§ 100–109 GWB.

Significance and function

Compared with the VgV, the SektVO gives utilities contracting entities considerably more flexibility in procedural design because the markets concerned in energy, water, transport and postal services are shaped by particular competitive conditions.

Higher thresholds

The EU thresholds under the SektVO are significantly above those of the VgV:

Supplies and services: EUR 443,000 (net; status 2024/2025)
Works: EUR 5,538,000 (net; same as the classic sector)

More flexible procedural design

Negotiated procedure as the standard procedure – In the utilities sector the contracting entity may, in principle, choose the negotiated procedure with prior call for competition without having to meet the strict conditions of the VgV (§ 13 SektVO)
Qualification systems – Utilities contracting entities can set up and maintain their own qualification systems for bidders (§§ 14–17 SektVO), enabling efficient suitability assessment across multiple procurement procedures
Periodic indicative notice – Can be used as a call for competition, shortening time limits (§ 38 SektVO)
Framework agreements – Extensive possibilities for using framework agreements (§ 22 SektVO)

Sector-specific exemptions

Not all activities of utilities contracting entities fall under the SektVO. Activities that do not belong to the utilities sectors are subject to the VgV. In addition, the European Commission may, on application by a Member State, exempt certain activities from the scope where the market is deemed sufficiently exposed to competition (Art. 34 of Directive 2014/25/EU; § 109 GWB).

Utilities activities in detail

The SektVO applies to contracting entities pursuing the following activities (§ 102 GWB):

Water – provision or operation of networks for drinking-water supply or waste-water disposal
Energy – supply of natural gas, heat or electricity; oil and gas extraction; coal and other solid-fuel extraction
Transport – operation of networks for rail, tram, trolley-bus, bus or cable transport
Postal services – provision of postal services and parcel and courier services

Legal basis

Directive 2014/25/EU – Utilities Directive, EU-law basis
§§ 100–109 GWB – substantive utilities procurement law (DE)
§ 113 GWB – enabling provision for the SektVO
SektVO (BGBl. I 2016, p. 624) – statutory ordinance
Implementing Regulation (EU) 2023/1770 – threshold adjustment

Austrian equivalent

In Austria, utilities procurement law is set out in Part 4 of the BVergG 2018 (§§ 175–264). The BVergG 2018 distinguishes between the classic sector (Part 1) and the utilities sector (Part 4) and transposes both directives in a single statute. The Austrian thresholds and procedural rules for utilities contracting entities correspond in substance to the EU requirements.

Related terms

FAQ

Can utilities contracting entities use the negotiated procedure as a matter of course? Yes. Unlike the classic sector (VgV), the negotiated procedure with prior call for competition is open to utilities contracting entities without special conditions under § 13(1) SektVO. This is one of the key reliefs compared with the VgV.

What are qualification systems under the SektVO? Qualification systems allow utilities contracting entities to pre-assess undertakings for suitability and to maintain a register of qualified bidders. Contracts can then be awarded from this pool without a new suitability check being needed for each contract (§§ 14–17 SektVO).

Does the SektVO also apply where a utilities supplier procures non-utility-specific services? No. An energy supplier procuring IT services for its general administration is subject to the VgV for that procurement (if it is also a public contracting authority under § 99 GWB) or to no procurement regime at all (if it is a utilities contracting entity only by virtue of special or exclusive rights). The rule of factual allocation applies.

Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.