ACT No. XLIX of 2021 AN ACT to amend the Regulator for Energy and Water Services Act, BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-

I assent.

(L.S.)

GEORGE VELLA

President

23rd July, 2021

ACT No. XLIX of 2021

AN ACT to amend the Regulator for Energy and Water Services Act,

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1) The short title of this Act is the Regulator for Energy Short title,

and Water Services (Amendment) Act, 2021 and this Act shall be read scope

commencement.

and construed as one with the Regulator for Energy and Water Services Cap. 545.

Act, hereinafter referred to as "the principal Act".

(2) The scope of this Act is to amend the Regulator for Energy

and Water Services Act to strengthen the independence of the

Regulator and to transpose certain provisions of Directive (EU) 2019/

944 of the European Parliament and of the Council of 5 June 2019 on

common rules for the internal market for electricity and amending

Directive 2012/27/EU (recast).

(3) The provisions of this Act shall be deemed to have come into

force on the 31 st December 2020.

Article 3 of the principal Act shall be substituted by the

following new article

"3. (1) There shall be a legally distinct body as

established by this Act, to be known as the Regulator for

Energy and Water Services, hereinafter referred to as the

"Regulator" which shall consist of a Chairman and not

less than four (4) and not more than six (6) other

members.

(2) The Regulator shall be functionally independent

from other public or private entities. The staff and the

persons responsible for the management of the Regulator

shall act independently from any market interest and

shall not seek or take direct instructions from

Government or other public or private entities when

carrying out its regulatory tasks. This requirement shall

be without prejudice to close cooperation, as appropriate,

with other relevant national authorities or to general

policy guidelines issued by the Government not related to

its regulatory powers and duties.

(3) The Regulator shall take autonomous decisions,

independently from any political body.

(4) The Regulator shall have all the necessary

human and financial resources it needs to carry out its

duties and exercise its powers in an effective and efficient

manner.

(5) The Regulator shall have a separate annual

budget and autonomy in the implementation of the

budget.

(6) The members of the Board of the Regulator shall

be appointed based on objective, transparent and

published criteria, in an independent and impartial

procedure, which ensures that the candidates have the

necessary skills and experience.

(7) The members of the Board of the Regulator shall

be appointed by the Minister for a term of five (5) years

or for such longer period as may be specified in the

instrument of appointment subject to a maximum term of

seven (7) years but the members so appointed may be re-

appointed, once only, on the expiration of their term of

office for a term of five (5) years or for such longer

period as may be specified in the instrument of

appointment subject to a maximum term of seven (7)

years.

An appropriate rotation scheme for the appointment of

the members of the Board of the Regulator shall be put in

place, in terms of which the end date of the term of office

of the Board members is not the same for all members.

(8) The Minister may designate one (1) of the other

members of the Board of the Regulator as Deputy

Chairman and the member so designated shall have all

the powers and perform all the functions of the Chairman

during his absence or inability to act as Chairman or

during any vacancy in the office of Chairman; and the

Minister may also, in any of the above circumstances,

appoint another person to act as Chairman and in such a

case the foregoing provisions shall apply in respect of that

person.

(9) A person shall not be qualified to hold office as a

member of the Board of the Regulator if he

(a) is a Minister, Parliamentary Secretary

or a member of the House; or

(b) is a judge or magistrate; or

(c) has a financial or other interest in any

enterprise or activity which is likely to affect the

discharge of his functions as a member of the Board

of the Regulator.

(10) Subject to the provisions of this article, the

office of a member of the Board of the Regulator shall

become vacant

(a) at the expiration of his term of office; or

(b) if any circumstances arise that, if he

were not a member of the Board of the Regulator,

would cause him to be disqualified for appointment

as such.

(11) A member of the Board of the Regulator may

only be removed from office by the Minister if such

member is unfit to continue in office for any one or more

of the following reasons

(a) if the member is found unable to act

independently from any market interests;

(b) if the member is found taking

instructions or directions from any other public or

private entity or person in the exercise of the

regulatory functions assigned to the Regulator;

(c) where such member has been found

guilty of misconduct under any law.

(12) If a member resigns or if the office of a member

of the Board of the Regulator is otherwise vacant or if a

member is for any reason unable to perform the functions

of his office, the Minister shall take all appropriate

measures to fill the vacancy so created, subject to the

provisions of sub-articles (9), (10) and (11).

(13) Any member of the Board of the Regulator who

has any direct or indirect interest in any contract or

business made or proposed to be made by the Regulator,

not being an interest which disqualifies such member

from remaining a member, shall disclose the nature of his

interest at the first meeting of the Board of the Regulator

after the relevant facts have come to his knowledge; such

disclosure shall then be recorded in the minutes of the

meeting of the Board of the Regulator, and the member

having an interest as aforesaid shall withdraw from any

meeting at which such contract is discussed. Where the

interest of the member is such as to disqualify him from

remaining a member, he shall immediately report the fact

to the Board of the Regulator and submit his resignation.

Any disclosure under this sub-article shall be notified by

the Regulator to the Minister without delay.

(14) Any member of the Board of the Regulator shall

avoid any conflict of interest when acting as a member of

the Board. A member of the Board shall preserve

confidentiality on information obtained and matters

pertaining to the Regulator during and beyond the end of

the mandate.

Where the interest of the member is such as to

disqualify him from remaining a member, he shall report

the fact immediately to the Board of the Regulator and

tender his resignation. Any disclosure under this sub-

article shall be communicated by the Regulator to the

Minister without delay.".

Article 4 of the principal Act shall be amended as follows

(a) in paragraph (b) thereof, the words "Directive 2009/

72/ EC" shall be substituted by the words "Directive (EU) 2019/

944"; and

(b) immediately after the words "Energy Charter Treaty."

there shall be added the following new paragraph

"The Regulator is hereby designated as the single

regulatory authority at national level for the purposes of

Directive (EU) 2019/944 and EU Directive 2009/73/EC.".

Article 5 of the principal Act shall be amended as follows

article 5 of the

principal Act.

(a)

sub-article (1) thereof shall be amended as follows

(i) the words "independently and impartially" shall

be substituted by the words "independently, transparently

and impartially";

(ii) in paragraph (m) thereof the words "positions

and actions." shall be substituted by the words "positions

and actions;" and immediately thereafter there shall be

added the following new paragraph

"(n) to carry out investigations into the

functioning of the electricity market, and to decide

upon and impose any necessary and proportionate

measures to promote effective competition and

ensure the proper functioning of the market. Where

appropriate, the Regulator shall also have the power

to cooperate with the national competition authority

and the financial market regulators or the

Commission in conducting an investigation relating

to competition law."; and

(b) in sub-article (2) thereof the words "shall also

independently and impartially" shall be substituted by the words

"independently, transparently and impartially".

In sub-article (1) of article 12 of the principal Act, Amendment of

immediately after the words "Agency for the Cooperation of Energy article

principal Act.

Regulators," there shall be added the words "or infringements of

Regulation (EU) 2019/943, the network codes adopted pursuant to

Article 59 of that Regulation, the guidelines adopted pursuant to

Article 61 of that Regulation and on electricity undertakings not

complying with their obligations under Regulation (EU) 2019/943".

Passed by the House of Representatives at Sitting No. 488 of the

13th July, 2021.

CLAUDETTE BUTTIGIEG

Deputy Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€0.72