164 tal-2003 - Regolamenti tal-2003 dwar l-Elettriku

L.N. 164 of 2003

MALTA RESOURCES AUTHORITY ACT, 2000

(ACT NO. XXV OF 2000)

Electricity Regulations, 2003

BY virtue of the powers conferred by article 28 of the Malta

Resources Authority Act, 2000 hereinafter referred to as “the Act”, the

Minister for Resources and Infrastructure, after consultation with the

Malta Resources Authority, has made the following Regulations>-

(1) The title of these Regulations is the Electricity

Regulations, 2003.

(2) (i) These Regulations shall come into force on such

date as the Minister for resources and infrastructure may by notice

in the Government Gazette appoint, and different dates may be so

appointed for different provisions and different purposes of these

Regulations.

(ii) A notice under paragraph (i) of this sub-regulation

may make such transitional provisions as appear to the Minister to

be necessary or expedient in connection with the provisions thereby

brought into force.

(3) These Regulations establish rules for the licensing of

activities in the electricity sector and lay down the rules relating to the

organisation and functioning of the electricity sector in Malta, access to

the market, the operation of system and the regulation of electricity

tariffs.

For the purposes of these Regulations>

“ancillary services” shall mean all services necessary for

the operation of the network<

“autoproducer” shall mean a natural or legal person

generating electricity essentially for his own use<

“authorisation” shall mean any act whereby the competent

authority permits the carrying out of actions and functions subject

to these Regulations<

“competent authority” shall mean the Malta Resources

Authority<

“convey” shall include transmit and distribute, and shall mean

the transport of electricity on the network with a view to supply to

customers< and “transmission” and “conveyance” shall be construed

accordingly<

“customers” shall mean wholesale or final customers of

electricity<

“direct line” shall mean an electricity line complementary to

the network, intended for the conveyance of electricity for delivery

to customers<

“economic precedence” shall mean the ranking of sources

of electricity supply in accordance with economic criteria<

“final customer” shall mean a customer buying electricity

for his own use<

“generation” shall mean the production of electricity<

“horizontally integrated undertaking” shall mean an

undertaking performing at least one of the functions of generation

for sale, or conveyance of electricity, and another non-electricity

activity<

“independent producer” shall mean a producer who does not

carry out electricity conveyance and supply functions<

“integrated electricity undertaking” shall mean a vertically

or horizontally integrated undertaking<

“interconnected system” shall mean a number of transmission

and distribution systems linked together by means of one or more

interconnectors<

“interconnectors” shall mean equipment used to link

electricity systems<

“licence” shall include an authorisation, permit, permission,

concession, consent or approval<

“long-term planning” shall mean the planning of the need for

investment in generation and the conveyance capacity on a long-

term basis, with a view to meeting the demand for electricity of

the system and securing supplies to customers<

“Minister” shall mean the Minister responsible for resources<

“network” shall mean the high medium and low voltage

conveyance system of electricity<

“person” shall include both a physical and a legal person<

“producer” shall mean a natural or legal person generating

electricity<

“public service obligations” shall mean obligations imposed

on electricity undertakings operating in the electricity sector, by

the competent authority in order to ensure security, including

security of supply, regularity, quality, price and environmental

protection in the general economic interest< which take account

of general social, economic and environmental factors<

“single buyer” shall mean any legal person who is

responsible for the unified management of the network and#or for

centralized electricity purchasing and selling<

“system user” shall mean any natural or legal person

supplying to, or being supplied by the network<

“supply” shall mean the delivery and sale of electricity to

customers<

“tendering procedure” shall mean the procedure through

which planned additional requirements and replacement capacity

are covered by supplies from new or existing generating capacity<

“vertically integrated undertaking” shall mean an

undertaking performing two or more of the functions of generation,

conveyance and supply of electricity<

“wholesale customers” shall mean any natural or legal

person, recognized by the competent authority, who purchase and

sell electricity and who do not carry out generation and conveyance

functions.

(1) No person shall>

(i) generate electricity for the purpose of giving supply to

any premises or enabling a supply to be so given or for any other

purpose<

(ii) develop an electricity network or direct line<

(iii) convey electricity through the electricity network for

that purpose, or<

(iv) supply electricity to eligible customers and#or to any

premises except under licence of the competent authority and on

such terms and conditions as may be specified in such licence>

Provided that a person or undertaking conducting more than one

of the above activities shall require separate licences for each different

activity.

(2) Any person or undertaking who has been granted a

licence by or under the Enemalta Act, shall apply for a licence under Cap. 272.

these Regulations within three months of their coming into force.

(1) The Minister may, after consultation with the competent Exemptions.

authority and after having regard to the objectives of these Regulations,

by direction grant an exemption from the provisions of regulation 3.

(2) An exemption under sub-regulation (1)>

(i) may be granted to a particular person or particular class

of persons<

(ii) may be granted subject to such conditions as the Minister

may deem fit<

(iii) when granted to a particular class of persons, shall be

published in the Government Gazette< and

(iv) unless previously revoked in accordance with any term

or condition contained in the exemption, shall continue in force

for such period as may be specified in or determined by or under

the exemption.

(1) An application for a new licence or for its renewal shall Applications.

(i) in writing and in such form and contain such information

as the competent authority may request<

(ii) accompanied by such fees, bank guarantees and#or

insurances as the competent authority may determine and prescribe

to be appropriate. All fees shall be payable on application and any

bank guarantees and#or insurance shall be effective as from the

date of the issue of the licence and must subsist throughout the

duration of such licence. Interests and penalties, as established by

the competent authority, shall be payable in the event of default in

the due payment of fees>

Provided that a licence granted under these Regulations shall not

relieve the licensee from the requirement to obtain any other licence or

from any obligation arising from any other law.

(2) A licence granted under these Regulations may include

such conditions as appear to the competent authority to be requisite or

expedient, having regard to the duties of the competent authority and to

international obligations of Malta.

The refusal of the competent authority to grant a licence shall

be communicated to the applicant in writing not later than 28 days from

its decision together with a statement of the reasons for its refusal.

(1) The competent authority shall monitor the activities of

licensees and ensure that they conform to the conditions and

requirements of the licence.

(2) A licensee shall allow the competent authority, and any

other person authorised by it for such purpose, full access to any

premises, installations, accounting and other records and any information

under the control of the licensee as the competent authority may

reasonably require and as it may request for the purpose of investigating

any matter relevant to the licensee’s compliance with these Regulations,

the Act, the terms and conditions of the licence or any directive issued

by or given by the competent authority>

When allowing access to or providing documentation or

information to the competent authority, the licensee may indicate

what information he considers to be of a commercially sensitive

nature and may request the competent authority to keep such

information confidential. It shall be the competent authority to

decide whether the information is of commercially sensitive nature.

Provided further that the competent authority shall, with relation

to the commercially sensitive information obtained from the licensee,

be under the obligation of confidentiality and shall not divulge such

information unless required to do so by law or by a court order.

In order to prevent anti-competitive practices prohibited under the

Competition Act in particular.

(3) Without prejudice to the aforementioned, all information

provided by the licensee under sub-regulation (2) shall be treated as

confidential and may only be published, other than in an aggregate or

collated form, with the consent of the licensee.

Where the licensee fails to comply with any condition or Withdrawal,

amendment or

conditions of the licence, the competent authority may withdraw, amend suspension of

or suspend such licence or impose specific measures, which it deems licence or the

imposition of

necessary and appropriate to achieve compliance>

specific measures.

Provided that such measures must be proportionate to the degree

of non-compliance with the conditions of the licence.

The licensee shall monitor, record and maintain all such Monitoring and

maintenance of

technical, financial, administrative, and operational information and records.

records concerning licensed activities that are prescribed in the licence

or that the competent authority may deem necessary>

Provided that the competent authority may also prescribe the

manner in which the licensee keeps records and documents which fall

under this regulation.

(1) The licensee may not transfer or assign the licence to Transfer of licences.

any other person or undertaking without the prior written approval of

the competent authority and unless such transfer fees, as may be

prescribed by the competent authority are paid>

Provided that the competent authority may only refuse its consent

to such transfer for a good and valid reason and that such refusal is

communicated to the licensee and the proposed transferee in writing.

(2) Where the licensee is a body corporate or any other body

of persons, a change in the control of the ownership of that body shall

be deemed to be equivalent to the transfer of the licence, and shall be

subject to the conditions set in sub-regulation (1). For the purpose of

this sub-regulation, a transfer in the control of the ownership of a body

corporate or other body of persons shall be deemed to occur in any case

where a transfer of the capital, shares, stock or other rights held in the

body corporate or other body of persons leads to a change in the person

holding the controlling interest therein.

(1) A licence granted by the competent authority shall be

subject to modification, revocation or termination in accordance with

these Regulations.

(2) A licence shall be modified as follows>

(i) where the licensee so requests, in which case the

competent authority may modify the conditions or requirements

of the said licence< and

(ii) where the competent authority is of the opinion that a

licence should be amended, it may amend such licence even without

the consent of the licensee>

Provided that, other than in the case of a modification or

modifications pursuant to paragraph (ii) and required urgently in the

general economic interest, the competent authority shall issue a notice

in the Government Gazette before modifying a licence stating the

proposed modification or modifications, the nature of such modification

or modifications and the reasons therefor. Representations or objections

with respect to the proposed modification or modifications may be made

to the competent authority within 28 days of the publication of such

notice.

(3) A licence shall cease to be valid, in whole or in part,

upon>

(i) the expiration of the term therein specified<

(ii) the occurrence of an event or of circumstances which

under the terms and conditions of the licence result in its

termination<

(iii) the renunciation thereto by the licensee, provided that

the licensee gives notice as stipulated in the licence conditions to

the competent authority of the intention to do so<

(iv) the insolvency, liquidation or bankruptcy of the licensee,

or a composition with his creditors.

(4) Without prejudice to the provisions of regulation 8, the

competent authority may revoke the licence, in whole or in part, for

any of the following reasons<

(i) if the licence has been granted on the basis of information

which was incomplete, misleading or incorrect in any material

aspect<

(ii) if the licensee fails to act on the licence by failing to

provide the service or product for which he was licensed to for a

period exceeding 180 days from the date of issue of the licence, or

if he suspends such activity for a period exceeding 180 days in

any twelve month period>

Provided that the competent authority may extend or curtail the

period aforesaid for a good and valid reason which shall be

communicated to the licensee as stipulated in the licence conditions<

(iii) if the licensee is in breach of an obligation imposed by

or under these Regulations or contained in the licence which, in

the opinion of the competent authority, is of a sufficient degree of

severity to justify the revocation of the licence, and, in such case

where the breach is capable of remedy, where the licensee has

failed to remedy the breach within such time as the competent

authority may have given him for that purpose>

Provided that in any action taken further to this paragraph, the

competent authority shall respect the principle of proportionality and

that it shall communicate its intention to revoke the licence and the

reasons therefor to the licensee in writing<

(iv) in the case of the occurrence of any event or

circumstance which, in accordance with the terms and conditions

of the licence, these Regulations and, or the Act, authorise the

competent authority to revoke it.

(5) Upon revocation of the whole licence, such licence shall

cease to be a valid licence>

Provided that where the licence is revoked only in part, the validity

of the licence as a whole shall only be effected if the part of the licence

revoked appears to the competent authority not to be severable from

the entire licence>

Provided furthermore that the revocation of a licence shall not

relieve the licensee of any liability arising from any act or omission

which occurred prior to such revocation.

(1) A generating plant shall not be constructed or Generation.

reconstructed without a licence granted by the competent authority in

accordance with regulation 3, in conformity with the tendering and

authorisation procedures set by these Regulations.

(2) On the basis of the estimate referred to in regulation

13(6), the competent authority shall determine the need for generating

capacity and the magnitude thereof, including replacement capacity

requirements. The competent authority shall allocate the construction

and reconstruction of generating capacity by means of a tendering

procedure in accordance with the procedures laid down in these

Regulations.

(3) It shall be possible for auto-producers and independent

producers to obtain authorisation for the construction and operation of

generating capacity, on the basis of objective, transparent and non-

discriminatory criteria, which the competent authority shall establish.

These criteria may relate to those in sub-regulation (5)>

Provided that the Minister may, after consultation with the

competent authority, limit the number of individual authorisations that

may be granted and#or the total generation capacity that may be met by

the authorisation procedure. These limits shall apply to the extent that

the Minister may deem necessary and shall be set in accordance with

transparent, objective and nondiscriminatory criteria that shall be

published in the Government Gazette.

(4) Details of the tendering procedure for means of

generation shall be published in the Government Gazette at least six

months prior to the closing date for tenders. A notice of the tender

specifications shall be made available to any interested person or

undertaking established in Malta in sufficient time to enable the

submission of a tender.

(5) The tender specifications shall contain a detailed

description of the contract specifications and of the procedure to be

followed by all tenderers together with an exhaustive list of criteria

governing the selection of tenderers and the award of the contract. These

specifications may also relate to>

(i) the safety and security of the electricity system, electric

plant and domestic lines, installations and associated equipment<

(ii) the protection of the environment, including the

limitation of emissions to the atmosphere, water and land<

(iii) the siting of generating plant and associated land use<

(iv) the use of public property<

(v) the efficient use of energy<

(vi) the nature of the primary sources of energy to be used

by the generating plant<

(vii) the characteristics of the applicant, including his

technical, economic and financial capabilities<

(viii) the provisions of these Regulations and of the Act.

(6) The competent authority, or any other person or body

which it may nominate for the purpose, shall be responsible for the

organisation, monitoring and control of the tendering procedure. It shall

take all the necessary steps to ensure confidentiality of the information

contained in the tenders. The information contained in the tenders

submitted shall be treated as confidential unless, and to the extent that,

the tenderer is notified to the contrary in the issuing of the tender.

(1) Having regard to considerations of efficiency and Network operation.

economic balance, and until such time as the Minister may determine,

Enemalta Corporation, shall be the network operator responsible for

operating, ensuring the maintenance and the development of the network

as necessary, or, as may be prescribed from time to time, in order to

guarantee secure, adequate, quality and regular supply of electricity in

Malta.

(2) The network operator shall also be responsible for

operating interconnectors with generators and with other systems, which

may be outside national territory.

(3) The network operator shall provide the operator of any

other system with which its system is interconnected with sufficient

information to ensure the secure and efficient operation, coordinated

development and interoperability of the interconnected system.

(4) The competent authority shall ensure that the rules

establishing the basic technical and operational requirements for

connection of the network to generating installations, consumers’

installations and interconnector circuits, to be known as the “network

code”, are developed and published without delay, but not later than six

months from the entry into force of these Regulations in the Government

Gazette. These requirements shall be objective and non-discriminatory

and shall allow for the interoperability of the electricity systems in Malta

and its interoperability with other systems outside national territory as

may be applicable. The network code shall be reviewed and revised at

regular intervals and#or as may be necessary to meet the objectives of

these Regulations.

(5) The network operator shall be responsible for managing

energy flows on the system. To that end, the network operator shall be

responsible for ensuring a secure, reliable and efficient electricity system

and, in that context, for ensuring the availability of all necessary ancillary

services, as may be prescribed by the competent authority.

(6) Pursuant to sub-regulation (5) at least every two years,

the network operator shall draw up, under the supervision of the

competent authority, a regular estimate of the available generating and

conveyance capacity, the interconnectors with other systems, the actual

conveyance capacity, all ancillary services and the current demand for

electricity as well as the generating and conveyance capacity which is

likely to be connected to the system, of the need for interconnectors

with other systems, of potential conveyance capacity, of all ancillary

services and of the demand for electricity. The estimate shall be

published in the Government Gazette by the competent authority and

shall cover the period of the subsequent five years.

Without prejudice to the supply of electricity on the basis of

contractual obligations, including those which derive from the tendering

specifications, public service obligations, the dispatching of generating

installations and the use of interconnectors shall be determined on the

basis of criteria which shall be approved by the competent authority

and which shall be objective, published in the Government Gazette and

applied in a non-discriminatory manner in order to ensure the proper

functioning of the electricity system and sector in Malta. They shall

take into account the economic precedence of electricity from available

generating installations and the technical constraints on the system.

(1) The competent authority shall lay down provisions

requiring the network operator to operate with the greatest possible

independence from any generation and electricity supply activities and

other activities not relating to the operation of the network. It shall also

ensure that there is no flow of information between the single buyer

activities that may be designated to the network operator, of an integrated

electricity undertaking under regulation 16 and its generation and other

activities, except for the information necessary to conduct the single

buyer functions and responsibilities.

(2) Without prejudice to the generality of sub-regulation

(1), the network operator shall not discriminate between system users,

particularly in favour of its subsidiaries or shareholders.

(3) The competent authority shall regularly review the

functions and operational conduct of the network operator and may, for

the purpose of achieving the objectives of these Regulations, modify

its functions and the degree of independence required from other

activities.

(1) A single buyer procedure shall be adopted for the Organisation of

access to the

organisation of access to the system for the period of time to be network.

determined by the competent authority. Such procedure shall be operated

in accordance with objective, transparent and non-discriminatory criteria.

(2) The designated network operator shall be the single

buyer in Malta.

(3) The competent authority shall take those measures which

it deems appropriate, to ensure>

(i) the establishment and publication of a non-discriminatory

tariff for the use of the network in accordance with regulation 25<

(ii) that eligible customers, defined in regulation 21, are free

to auto-produce electricity or conclude supply agreements to cover

their needs with independent producers<

(iii) that auto-production and supply and purchase

agreements under paragraph (b) are implemented through access

to the network on the basis of the published tariff referred to in

paragraph (a) and the requirements of the network code established

under regulation 13<

(iv) that the single buyer is obliged to purchase the electricity

contracted by an eligible customer from its producer.

The network operator shall not be required to enter into an Cases where the

network operator is

agreement where>

not obliged to enter

into an agreement.

(i) it demonstrates, to the satisfaction of the competent

authority, that it lacks the necessary conveyance capacity<

(ii) it demonstrates, to the satisfaction of the competent

authority that it is not in the public interest to provide additional

capacity to meet the requirements which would be imposed by

that agreement, or

(iii) entering such an agreement would be likely to involve

the network operator into>

(a) a breach of the requirement of these Regulations

or of the Act< or

(b) a breach of the network code, or

(c) a breach of the conditions of the licence granted to

him under these Regulations, or

(iv) the person making the application does not undertake

to be bound by the terms of the network code in so far as those

terms are applicable to that person.

Where the network operator refuses to enter into an

agreement under regulation 16, it shall serve a notice on the applicant

stating the reasons for such refusal.

(1) Any dispute between the network operator and any

person who is, or claims to be, a person to whom the network operator

is obliged to make an offer for connection to and use of the network or

relating to an offer made by the network operator or to the refusal of an

offer by the network operator may, upon the application of that person,

be determined by the competent authority. The network operator shall

comply with all the conditions set in such determination.

(2) Without prejudice to the generality of regulation 15 and

where providing for the use of the network or where setting the terms

for the carrying out of works for the purpose of connection to the

network, the network operator shall not unjustly discriminate between

persons, particularly in favour of its subsidiaries or shareholders.

(1) Where access to the network for holders of licences or

authorisations, granted under these Regulations, or eligible customers

under regulation 21 hereof, is refused by the network operator due to a

lack of capacity, the competent authority may authorise such person to

construct a direct line not connected to the network for the purpose of

facilitating the supply of electricity for which the application for use of

the network was made and refused.

(2) The competent authority may refuse to authorise the

construction of a direct line if the granting of such an authorisation

would obstruct the application of the provisions of these Regulations.

Duly substantiated reasons shall be given for such refusal.

(3) An authorisation to construct a direct line granted by

the competent authority under this regulation shall require the person

to whom the authorisation is granted to comply with such technical and

other conditions, including those which may be necessary to ensure

that direct lines are compatible with the network, to such extent as the

competent authority may specify in the authorisation.

(1) The competent authority shall specify eligible Eligible customers.

customers, meaning those customers having the legal capacity to auto-

produce, contract for, or to be sold electricity by an independent producer

in accordance with regulation 17.

(2) The competent authority shall establish and publish in the

Government Gazette the criteria for the definition of eligible customers

referred to in sub-regulation (1) together with all other appropriate

information, by the 31st January, 2004, and by the 31st January of each

year thereafter, in order to achieve the progressive opening of the electricity

sector in accordance with the National Plan for the Opening up of the

Electricity Sector in Malta under regulation 28>

Provided that the competent authority may prescribe and publish

the means by which the consumption of electricity is estimated and

calculated in any twelve-month period and the other criteria to be fulfilled

for the purpose of qualifying as an eligible customer.

The competent authority shall create appropriate and efficient Ensuring fair

competition.

mechanisms for the regulation, control and transparency of the electricity

sector in order to prevent abuse of dominant position, to the detriment

of consumers. These mechanisms shall take account of the provisions

of the Competition Act and of any other relevant legislation.

The competent authority shall take those measures, which it Protection of

system.

considers appropriate, to secure and protect the interests of all system

and shall exercise its functions under these Regulations in a manner

that ensures maximum economic efficiency with maximum benefit to

consumers.

(1) Without prejudice to regulation 7 hereof, the competent Separation and

authority shall have right of access to the accounts of electricity transparency

accounts.

undertakings which it may need to consult in order to carry out any

verifications relating to its functions under these Regulations.

(2) The competent authority shall take the necessary steps

to ensure that the accounts of electricity undertakings are kept in

accordance with sub-regulations (3) to (6).

(3) Electricity undertakings, whatever their system of

ownership or legal form, shall draw up, submit to audit and publish

their annual accounts in accordance with the rules set by the Companies

Act concerning the preparation of the annual accounts of limited liability

companies. Undertakings, which are not legally obliged to publish their

annual accounts, shall keep a copy of such accounts at the disposal of

the public in their head office.

(4) Integrated electricity undertakings shall, in their internal

accounting, keep separate accounts for their generation, and conveyance

activities and, where appropriate, consolidated accounts for other, non-

electricity, activities as they would be required to do if the activities in

question were carried out by separate undertakings, with a view to

avoiding discrimination, cross-subsidisation and distortion of

competition. They shall include a balance sheet and a profit and loss

account for each activity in notes to their accounts>

Provided that separate internal accounts shall be kept for each

activity requiring a separate licence under these Regulations, the Act or

any other law.

(5) Undertakings shall specify in notes to the annual

accounts the rules for the allocation of assets and liabilities and

expenditure and income which they follow in drawing up the separate

accounts referred to in sub-regulation (4). These rules may be amended

only in exceptional cases and subject to the prior approval of the

competent authority. Such amendments must be mentioned in the notes

and must be duly substantiated.

(6) The annual accounts shall indicate in notes any

transaction of a certain size conducted with affiliated undertakings, or

with associated undertakings or with undertakings, which belong to the

same shareholders.

(7) A provider licensed to conduct one or more activities

subject to these Regulations shall not engage in any cross subsidisation

with respect to other activities licensed under these Regulations or the

Act.

(1)

Tariffs in the electricity sector shall be regulated as

follows>

(i) in market segments which are, in the opinion of the

competent authority, subject to effective competition, tariffs shall

be established by the operation of the market<

(ii) in market segments, which in the opinion of the

competent authority, lack effective competition, tariffs shall be

subject to such controls and regulation as may be prescribed by

the competent authority<

(iii) where no regulations are issued or are in force in terms

of paragraph (ii) and no order has been published in the Government

Gazette by the competent authority stating that tariffs in a particular

market segment are to be regulated in accordance with paragraph

(i), tariffs shall be regulated in accordance with tariff structures

and mechanisms in terms of sub-regulations (2) to (5).

(iv) where an order has been published by the competent

authority in terms of paragraphs (i) to (iii) of this sub-regulation or

where regulations are prescribed in terms of paragraph (ii), any

tariff structure and mechanism in force at the time of the publication

of the said order or of the said regulations shall cease to have effect,

without prejudice to its validity in respect of any preceding period,

with regard to the market segments to which such order or

regulations referred.

(2) Subject to the provisions of sub-regulation (1), the

competent authority shall establish tariff structures and mechanisms

allowing for the establishment and changes in the tariffs to be set in

respect of electricity. Tariff structures and mechanisms may be

established for such period as may be determined by the competent

authority and shall be published in the Government Gazette.

(3) Where the tariff and, or tariff rate mechanism has not

yet been established, or where a licensee, person or undertaking wishes

to make a change in an existing tariff not provided for in an existing

tariff mechanism, the licensee shall submit the tariffs it proposes to

charge in respect of any service or product it is licensed to provide, to

the competent authority for its approval.

If the competent authority approves the proposed tariffs, it shall

communicate such approval to the licensee, and those tariffs shall be

the rates, which the licensee may charge.

If the competent authority does not approve the proposed tariffs it

shall notify its decision to the licensee, person or undertaking, in writing,

setting out the reasons for its decision. The licensee may propose other

rates acceptable to the competent authority.

(1) The network operator shall prepare a statement for the Charges for

connection to and

approval of the competent authority, within such time as the competent use of the network.

authority may direct, setting out the basis upon which tariffs and charges

are imposed for the connection to and for the use of the network.

(2) The competent authority may give directions to the

network operator from time to time, in accordance with the provisions

of regulation 21, in respect of the basis for tariffs and charges for the

connection to and for the use of the network.

(3) Notwithstanding sub-regulation (2) and any other

provision of these Regulations, directions given by the competent

authority may provide for>

(i) the methods of charging to be included in the statement

to be prepared by the network operator,

(ii) the form and the extent of the information provided by

the network operator to the applicants,

(iii) the form of charges and information about those charges

to be included in the statement to be prepared by the network

operator,

(iv) the procedure to be adopted in the submission by the

network operator of a statement of charges and the approval by

the competent authority of such statement, and

(v) the nature of information to be provided to applicants

seeking connection and use of the network and its preparation and

transparency.

(4) The network operator shall comply with directions given

by the competent authority under this regulation.

(5) A charge for the connection to and the use of the network

shall be calculated in accordance with these Regulations and with

directions given by the competent authority under this regulation so as

to enable the network operator to recover>

(i) the appropriate proportion of costs directly or indirectly

incurred in carrying out necessary works,

(ii) a reasonable rate of return on the capital represented by

such costs,

(iii) the extra costs incurred in the carrying out of public

service obligations,

(iv) any other costs approved by the competent authority>

Provided that the competent authority shall determine what

constitutes an “appropriate proportion” and “a reasonable rate of return”

of costs.

(1) The Minister shall, by order, direct the competent Public Service

Obligations.

authority to impose on operators in the electricity sector, in the general

economic interest, public service obligations which may relate to

security, including security of supply, to all consumers, regularity,

quality and price of supplies, and environmental protection. Such

obligations, and any revision thereof, shall be published within 28 days

of their adoption>

Provided that the proposed public service obligation order made

under this Regulation, or any revision thereof, shall be given by the

Minister, or by the competent authority on his behalf, to the operator or

operators upon which the obligation is to be imposed without delay and

by not later than 28 days before the final order is made.

(2) Notwithstanding sub-regulation (1), an order made by

the Minister under this regulation, may require the competent authority

to impose on electricity undertakings a requirement to make such

arrangements as are necessary to ensure that, in any calendar year, there

shall be available a specific quantity of electricity from generating

stations and ancillary services, chosen as a result of a competitive

process, which use as their primary fuel source such renewable,

sustainable or alternative forms of energy as may be specified in the

order.

(3) An order made by the Minister under this regulation

may provide for the recovery of additional costs, and for such costs to

be recovered in respect to the specified period of time, and for that

amount to be paid in respect of each year in that period to the operator

or operators, subject to the certification or verification of such additional

costs as having been incurred by the operator or operators in accordance

with the order by the competent authority.

(4) The Minister, after consultation with the competent

authority, may decide not to apply the provisions of regulations 12 and

16 to 21, insofar as the application of these provisions would obstruct

the performance, in law or in fact, of the obligations imposed on

electricity undertakings and provided that such a decision shall not affect

the development of trade to a degree as would be contrary to the

objectives of these Regulations.

(1) With a view to progressively achieving a competitive Transitory

provisions.

market in electricity, the competent authority shall ensure that electricity

undertakings are operated in accordance with these Regulations, and

shall adopt such measures as it considers necessary for the effective

and timely implementation of the National Plan for the Opening of the

Electricity Sector in Malta, which shall be adopted, within six months

of the coming into force of these Regulations and shall be attached as a

Schedule thereto, and which may be amended from time to time>

The competent authority shall not discriminate between licensed

persons and, or undertakings and consumers with regard to either rights

or obligations.

(2) The competent authority may issue such directives as

may be required for the putting into effect of any of the provisions of

these Regulations and of the National Plan for the Opening of the

Electricity Sector in Malta. It may also amend or revoke such directives.

(3) Directives issued by the competent authority in

pursuance of these Regulations, and any amendment or revocation

thereof, shall be published in the Government Gazette.

(1) Where the competent authority becomes aware, whether

through carrying out an investigation or otherwise, that any person

subject to these Regulations has contravened any of the provisions

contained therein, it shall issue a compliance order to the person

concerned, ordering it to comply immediately with the provisions of

the Regulations.

(2) A person or an undertaking which disobeys a compliance

order issued by the competent authority shall, without prejudice to any

other liability under these Regulations, the Act or any other law, be

guilty of an offence and be liable, on conviction, to a fine (multa) of not

less than one hundred liri and not more than one thousand liri for each

day during which the offence subsists>

Provided that the aggregate fines may not exceed the maximum

fine set in Article 31 of the Act.

(1) A person or undertaking which contravenes any of the

provisions of these Regulations or of a licence or approval issued

thereunder, shall be guilty of an offence and shall be liable, on conviction,

to a fine (multa) of not less than one per centum and not more than ten

per centum of its annual turnover, provided that the fine shall not exceed

ten thousand liri.

(2) Any person who, when information with respect to these

Regulations is requested by the competent authority, knowingly or

recklessly>

(a)

gives any false, inaccurate or misleading information<

or

(b) supplies incomplete information< or

(c) fails, without reasonable cause to supply information

requested within the time given< or

(d) prevents or hinders any investigation< or

(e) produces or furnishes, or causes or knowingly allows to

be produced or furnished, any document or information which he

knows to be false in any material respect,

shall be guilty of an offence and shall be liable, on conviction, to pay a

fine (multa) of not less than one hundred liri and not more than one

thousand liri.

(3) Without prejudice to sub-regulations (1) and (2), where

a person or an undertaking fails to comply with the provisions of these

Regulations for a period exceeding six months, the competent authority

may revoke the licence of that person or undertaking.