L 33/22 Official Journal of the European Union 4.2.2006 DIRECTIVE 2005/89/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 January 2006 concerning measures to safeguard security of electricity supply and infrastructure investment (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO- PEAN UNION, Having regard to the Treaty establishing the European Commu- nity, and in particular Article 95 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Economic and Social Committee (1), After consulting the Committee of the Regions, Acting in accordance with the procedure laid down in Article 251 of the Treaty (?), Whereas: (1)  Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity (?), has made a very impor- tant contribution towards the creation of the internal mar- ket for electricity. The guarantee of a high level of security of electricity supply is a key objective for the successful operation of the internal market and that Directive gives the Member States the possibility of imposing public ser- vice obligations on electricity undertakings, inter alia, in relation to security of supply. Those public service obliga- tions should be defined as precisely and strictly as possible, and should not result in the creation of generation capac- ity that goes beyond what is necessary to prevent undue interruption of distribution of electricity to final customers. (2)  Demand for electricity is usually forecast over a medium- term period on the basis of scenarios elaborated by trans- mission system operators or by other organisations capable of constructing them at the request of a Member State. (3) A competitive single EU electricity market necessitates transparent and non-discriminatory policies on security of electricity supply compatible with the requirements of such a market. The absence of such policies in individual (1) OJ C 120, 20.5.2005, p. 119. (%) Opinion of the European Parliament of 5 July 2005 (not yet published in the Official Journal) and Council Decision of 1 December 2005. (®) OJL 176, 15.7.2003, p. 37. Directive as amended by Council Direc- tive 2004/85/EC (O] L 236, 7.7.2004, p. 10). Member States, or significant differences between the poli- cies of the Member States would lead to distortions of competition. The definition of clear roles and responsibili- ties of the competent authorities, as well as of Member States themselves and all relevant market actors, is there- fore crucial in safeguarding security of electricity supply and the proper functioning of the internal market while at the same time avoiding creating obstacles to market entrants, such as companies generating or supplying elec- tricity in a Member State that have recently started their operations in that Member State, and avoiding creating dis- tortions of the internal market for electricity or significant difficulties for market actors, including companies with small market shares, such as generators or suppliers with a very small share in the relevant Community market. (4)  Decision No 1229/2003/EC of the European Parliament and of the Council (¥), sets out a series of guidelines for Community policy on trans-European energy networks. Regulation (EC) No 1228/2003 of the European Parlia- ment and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity (°) sets out, inter alia, the general principles and detailed rules relating to congestion management. (5)  When promoting electricity from renewable energy sources, it is necessary to ensure the availability of associ- ated back-up capacity, where technically necessary, in order to maintain the reliability and security of the network. (6)  Inorder to meet the Community’s environmental commit- ments and to reduce its dependence on imported energy, it is important to take account of the long-term effects of growth of electricity demand. (7) Cooperation between national transmission system opera- tors in issues relating to network security including defini- tion of transfer capacity, information provision and network modelling is vital to the development of a well- functioning internal market and could be further improved. A lack of coordination regarding network secu- rity is detrimental to the development of equal conditions for competition. (4 OJL 176, 15.7.2003, p. 11. (}) OJ L 176, 15.7.2003, p. 1. Regulation as amended by Council Regu- lation (EC) No 1223/2004 (O] L 233, 2.7.2004, p. 3).