Transmission system operator

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A transmission system operator (TSO) is an entity entrusted with transporting energy in the form of natural gas^[1] or electrical power on a national or regional level, using fixed infrastructure. The term is defined by the European Commission. The certification procedure for transmission system operators is listed in Article 10 of the Electricity and Gas Directives of 2009.^[2]

Due to the cost of establishing a transmission infrastructure, such as main power lines or gas main lines and associated connection points, a TSO is usually a natural monopoly, and as such is often subjected to regulations.

In electrical power business, a TSO is an operator that transmits electrical power from generation plants over the electrical grid to regional or local electricity distribution operators.

In natural gas business, a TSO receives gas from producers, transports it via pipeline through an area and delivers to gas distribution companies.

The United States has similar organizational categories: independent system operator (ISO) and regional transmission organization (RTO).