What is the
utilities directive
Also known as: Directive 2014/25/EU
The Utilities Directive is the EU framework governing procurement in the water, energy, transport, and postal services sectors. Based on Directive 2014/25/EU, it establishes dedicated procurement rules for these sectors — separate from the standard Public Procurement Directive (2014/24/EU) — with more flexibility and higher thresholds. In Norway, the directive is transposed as forsyningsforskriften.
How does the Utilities Directive work?
The directive applies when contracting entities award supply, service, or works contracts linked to utility activities. What determines applicability is the activity the procurement relates to — not the identity of the contracting authority.
Covered activities include the supply of gas and heating, electricity, drinking water, transport services, ports and airports, and postal services. For example, if a public transport operator procures new vehicles, the Utilities Directive applies — even if the same entity uses standard procurement rules for other purchases.
Beyond traditional public authorities, the directive also covers public undertakings and entities operating under exclusive or special rights granted by a member state.
What sets the Utilities Directive apart?
The most important difference is flexibility. Unlike under the standard directive, negotiated procedures with a prior contract notice are always permitted under the Utilities Directive. In practice, negotiation is the norm rather than the exception.
Threshold values are also substantially higher:
- Supply and service contracts: €443,000 (compared to €143,000 for central government under the standard directive)
- Works contracts: €5,538,000
- Special services: €1,000,000
(EU/EEA thresholds for 2024–2025, excl. VAT)
The directive also features unique mechanisms such as qualification schemes — standing lists of pre-approved suppliers that can serve as a call for competition. Tools like Cobrief help suppliers track tenders published under utilities procurement rules, making it easier to identify opportunities in infrastructure sectors.
The Utilities Directive governs a significant share of procurement spending in sectors that underpin critical infrastructure across the EU/EEA. For suppliers targeting the water, energy, or transport sectors, understanding these distinct rules and their greater flexibility is key to competing effectively.