Utilities Activity in Procurement Law 2026 – Definition and Examples

Utilities activities are the economic activities in water, energy, transport and postal services regulated in the Utilities Directive that trigger special procurement obligations.

Definition: A utilities activity is one of the economic activities exhaustively listed in Directive 2014/25/EU in the water, energy, transport and postal services sectors, the pursuit of which triggers the application of the utilities procurement regime.

Last updated: January 2026 · Legal basis: Arts. 8–14 Directive 2014/25/EU; §§ 102 et seq. GWB; SektVO; BVergG 2018 § 170

What is a utilities activity?

The utilities activity is the central trigger for the application of the utilities procurement regime: only those who carry out a utilities activity are utilities contracting entities and must observe the Utilities Directive. The definition of utilities activities is conclusively regulated in Directive 2014/25/EU; extensive interpretation is not possible. The decisive question is always whether the specific activity falls under one of the activity descriptions in Arts. 8–14 of the Directive.

Overview of utilities activities

Gas and heat (Art. 8)

Provision or operation of fixed networks intended to supply the public with gas or heat, and the supply of gas or heat to those networks. Not covered: production of gas or heat without grid connection.

Electricity (Art. 9)

Provision or operation of fixed networks intended to supply the public with electricity, and the supply of electricity to those networks. Producers of renewable electricity may be exempt under certain conditions.

Water (Arts. 10–12)

Activities in:

Drinking water supply: provision or operation of networks and supply of drinking water
Hydraulic projects: irrigation, drainage or hydro-power, where water > 20% of the total volume
Discharge and treatment of waste water

Transport (Art. 11)

Provision or operation of networks providing transport services by rail, metro, tram, trolley-bus, bus or cable. A network is deemed to exist where the service is provided under operating conditions laid down by a competent authority.

Postal services (Art. 13)

Activities in:

Postal services: collection, sorting, transport and delivery of postal items up to 2 kg
Courier services (with stricter requirements)
Under certain conditions also other services (e.g. direct marketing, financial services)

Extraction of oil and gas and of coal (Art. 14)

Activities for the extraction of oil, gas, coal or other solid fuels and for the exploration of the relevant areas.

Consequences of classification as a utilities activity

Anyone pursuing a utilities activity that is either a public contracting authority or holds special state rights for it must award all contracts connected with that utilities activity, and above the thresholds, in accordance with the Utilities Directive.

This also applies, under certain conditions, to affiliated undertakings and joint ventures (Arts. 29–31 of Directive 2014/25/EU).

Exception: exemption under Art. 34

Where a utilities activity is directly exposed to competition in a Member State on markets to which access is not restricted, the Commission may exempt that activity from the Directive. This exemption possibility is a unique feature of the Utilities Directive.

Related terms

FAQ

Can an undertaking be both a classic public contracting authority and a utilities contracting entity? Yes. In such cases, mixed contracts must be assessed by reference to whether their main subject relates to a utilities activity or a classic activity.

Does utilities procurement law also apply to contracts unrelated to the utilities activity? No. Only contracts intended for, or directly connected with, the pursuit of the utilities activity are subject to the utilities procurement regime.

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