More Margins of Freedom for Energy Utilities and Public Transport Operators

The Federal Government facilitated contract awards in the utilities and transportation industries. On September 29, 2009, the new Sector Regulation has come into force; it creates new margins of freedom.

While special rules for awarding contracts have already applied to what are known as the sector areas of energy, water and transportation for years, however, to the annoyance of many municipal utilities and transportation companies, they had to apply more stringent provisions than their private competitors. This is now a thing of the past.

"The Sector Regulation will open up new margins of freedom for municipal companies," Dr. Ute Jasper, Procurement Law expert in the Düsseldorf office of law firm HEUKING KÜHN LÜER WOJTEK, explains the legal change. "The cumbersome differentiation by individual areas was connected with large uncertainties. Furthermore, it was not even required under European law. With the new legal situation, the Federal Government reverts to the European minimum requirements."