Final answer:
Directive 2014/25/EU, also known as the Utilities Directive, applies to entities that provide public utility services, such as water and electrical services, to ensure competitive and non-discriminatory procurement processes.
Step-by-step explanation:
Entities Bound by Directive 2014/25/EU
The procedures set out in Directive 2014/25/EU, known as the Utilities Directive, predominantly apply to entities operating in the field of utility services. These services include water, energy, transport, and postal services. Specifically, the directive is concerned with entities that provide public services and are either public utilities or have special or exclusive rights granted by a member state. The Utilities Directive aims to ensure that the procurement process for these services follows competitive and non-discriminatory principles.
Entities such as traditional utility companies, which are often seen as natural monopolies, are bound by these regulations. This includes providers of water and electrical services which, due to the infrastructure required, generally function more efficiently as monopolies rather than competitive businesses. The directive addresses the unique nature of these types of services that would become excessively costly and inefficient if multiple competing providers were to set up parallel networks.
Local governments, schools, universities, as well as state and national governing bodies that oversee the procurement for utilities, are also subjects of this directive. The guidelines ensure that standardized procedures are followed, promoting fairness and efficiency in the allocation of utility contracts and services.