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Report on Company and Market Structures in the European part of the UNECE area
Public Service Obligations

In almost all EU and non-EU countries, there are Public Service Obligations (PSOs) ) in effect. A Public Service Obligation is a decision made by the government of a EU country, imposing on a gas company a way of operating which is in the general economic interest. It may relate to security (of supply), regularity, quality and price, environmental protection, and it initiates measures to protect final customers or vulnerable customers

These PSOs are only applicable to specific parts of the gas market (natural gas transport, small customers or indigenous production) although the impact can be extensive, for instance, regulating consumer prices. In some EU and non-EU countries, PSOs have an impact on more than 50% of the total gas market. In almost all countries it is expected that PSOs will remain applicable even after the year 2010. PSOs are often considered necessary for social or economic reasons. Almost all gas companies are in favour of limiting PSOs in scope and in time as much as possible.