No L 27/20 Official Journal of the European Communities 30. 1. 97 DIRECTIVE 96/92/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 December 1996 concerning common rules for the internal market in electricity THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 57 (2), Article 66 and Article 100a thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the Economic and Social Committee (%), Acting in accordance with the procedure laid down in Article 189b of the Treaty (%), (1) Whereas it is important to adopt measures to ensure the smooth running of the internal market; whereas the internal market is to comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured; (2) Whereas the completion of a competitive electricity market is an important step towards completion of the internal energy market; (3) Whereas the provisions of this Directive should not affect the full application of the Treaty, in particular the provisions concerning the internal market and competition; (4) Whereas establishment of the internal market in electricity is particularly important in order to increase efficiency in the production, transmission and distribution of this product, while reinforcing security of supply and the competitiveness of the European economy and respecting environmental protection; (5) Whereas the internal market in electricity needs to be established gradually, in order to enable the industry to adjust in a flexible and ordered manner to its new environment and to take account of the () OJ No C 65, 14.3.1992, p. 4 and OJ No C 123, 4. 5. 1994, p. 1. () OJ No C 73, 15. 3. 1993, p. 31. (') Opinion of the European Parliament of 17 November 1993 (OJ No C 329, 6. 12. 1993, p. 150). Council common position of 25 July 1996 (OJ No C 315, 24. 10. 1996, p. 18) and De- cision of the European Parliament of 11 December 1996 (not yet published in the Official Journal). Council Decision of 19 December 1996. different ways in which electricity systems are orga- nized at present; (6) Whereas the establishment of the internal market in the electricity sector must favour the interconnection and interoperability of systems; (7) Whereas Council Directive 90/547/EEC of 29 October 1990 on the transit of electricity through transmission  grids () and Council Directive 90/377/EEC of 29 June 1990 concerning a Com- munity procedure to improve the transparency of gas and electricity prices charged to industrial end- users (*), provide for a first phase for the completion of the internal market in electricity; (8) Whereas it is now necessary to take further measures with a view to establishing the internal market in electricity; (9) Whereas, in the internal market, electricity under- takings must be able to operate, without prejudice to compliance with public service obligations, with a view to achieving a competitive market in electricity; (10) Whereas Member States, because of the structural differences in the Member States, currently have different systems for regulating the electricity sector; (11) Whereas, in accordance with the principle of subsid- larity, general principles providing for a framework must be established at Community level, but their detailed implementation should be left to Member States, thus allowing each Member State to choose the regime which corresponds best to its particular situation; (12) Whereas, whatever the nature of the prevailing market organization, access to the system must be open in accordance with this Directive and must lead to equivalent economic results in the States and hence to a directly comparable level of opening-up of markets and to a directly comparable degree of access to electricity markets; (13) Whereas for some Member States the imposition of public service obligations may be necessary to ensure security of supply and consumer and environmental protection, which, in their view, free competition, left to itself, cannot necessarily guarantee; () OJ No L 313, 13. 11. 1990, p. 30. Directive as last amended by Commission Decision 95/162/EC (O] No L 107, 12. 5. 1995, p. 53). () OJ No L 185, 17. 7. 1990, p. 16. Directive as last amended by Commission Directive 93/87/EEC (OJ No L 277, 10. 11. 1993, p. 32).