511 tal-2004 - Regolamenti tal-2004 dwar l-Elettriku

L.N. 511 of 2004

MALTA RESOURCES AUTHORITY ACT 2000

(ACT NO. XXV OF 2000)

Electricity Regulations, 2004

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 Title,

commencement

Regulations, 2004.

and scope.

(2) 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 the system and the regulation

of electricity tariffs, with a view to achieving a competitive, secure

and environmentally sustainable market in electricity, and avoiding

discrimination between these undertakings as regards either their

rights or their obligations.

(3) These regulations give effect to Directive 2003#54#EC

of the European Parliament and of the Council of the 26th June 2003

concerning common rules for the internal market in electricity and

repealing Directive 96#92#EC.

For the purposes of these regulations>

Interpretation.

“ancillary services” means all services necessary for the

operation of a transmission or distribution system<

“biomass” shall mean the biodegradable fraction of

products, waste and residues from agriculture (including vegetal

animal substances), forestry and related industries, as the

biodegradable fraction of industrial and municipal waste<

“customers” means wholesale and final customers of

electricity<

“direct line” means either an electricity line linking an

isolated production site with an isolated customer, or an

electricity line linking an electricity producer and an electricity

supply undertaking to supply directly their own premises,

subsidiaries and customers<

“distributed generation” means generation plants connected

to the distribution system<

“distribution system operator” means a natural or legal

person designated in terms of regulation 13<

“distribution” means the transport of electricity on high

voltage, medium voltage and low voltage distribution systems

with a view to its delivery to customers, but not including

supply<

“economic precedence” means the ranking of sources of

electricity supply in accordance with economic criteria<

“energy efficiency#demand side management” means a

global or integrated approach aimed at influencing the amount

and timing of electricity consumption in order to reduce primary

energy consumption and peak loads by giving precedence to

investments in energy efficiency measures, or other measures,

such as interruptible supply contracts, over investments to

increase generation capacity, if the said contracts are the most

effective and economic option, taking into account the positive

environmental impact of reduced energy consumption and the

security of supply and distribution cost aspects related to it<

“final customers” means customers purchasing electricity

for their own use<

“generation” means the production of electricity<

“horizontally integrated undertaking” means an

undertaking performing at least one of the functions of

generation for sale, or transmission or distribution, or supply

of electricity, and another non-electricity activity<

“household customers” means customers purchasing

electricity for their own household consumption, excluding

commercial or professional activities<

“integrated electricity undertaking” means a vertically or

horizontally integrated undertaking<

“interconnected systems” means a number of transmission

and distribution systems linked together by means of one or

more interconnectors<

“interconnectors” means equipment used to link electricity

systems<

“licence” includes an authorisation, permission,

concession, consent or approval<

“long term planning” means the planning of the need for

investment in generation and transmission and distribution

capacity on a long term basis, with a view to meeting the demand

of the system for electricity and securing supplies to customers<

“non-household customers” means any natural or legal

persons purchasing electricity which is not for their own

household use and shall include producers and wholesale

customers<

“producer” means a natural or legal person generating

electricity<

“public service obligations” means obligations imposed on

undertakings operating in the electricity sector, in the general

economic interest, and which may relate to security, including

security of supply, regularity, quality and price of supplies and

environmental protection, including energy efficiency and

climate protection<

“related undertaking” means an affiliated undertaking or

an associated undertaking or undertakings that belong to the

same stakeholders<

“renewable energy sources” means renewable non-fossil

energy sources (wind, solar, geothermal, wave tidal,

hydropower, biomass, landfill gas, sewage treatment plant gas

and biogases)<

“security” means both security of supply and provision of

electricity, and technical safety<

“supply” means the sale, including re-sale, of electricity

to customers<

“system users” means any natural or legal persons

supplying to, or being supplied by, a transmission or distribution

system<

“tendering procedure” means the procedure through which

planned additional requirements and replacement capacity are

covered by supplies from new generating capacity<

“the Authority” means the Malta Resource Authority<

“the Minister” means the Minister responsible for

resources<

“transmission” means the transport of electricity on high

voltage and extra high voltage interconnected system with a

view to its delivery to final customers or to distributors, but not

including supply<

“universal service obligation” means an obligation imposed

on a supplier to ensure that all household customers, and, where

the Minister deems it appropriate, small enterprises, (namely

enterprises with fewer than 50 occupied persons and an annual

turnover or balance sheet not exceeding four million liri), enjoy

universal service, that is the right to be supplied with electricity

of a specified quality within their territory at reasonable, easily

and clearly comparable and transparent prices<

“vertically integrated undertaking” means an undertaking

performing at least one of the functions of transmission or

distribution and at least one of the functions of generation or

supply of electricity<

“wholesale customers” mean any natural or legal persons

who purchase electricity for the purpose of resale inside or

outside the system where they are established.

(1)

No person shall>

(i)

generate electricity<

(ii)

supply electricity< or

(iii) carry out any of the functions of distribution system

operator,

except under licence of the Authority and on such terms and

conditions as may be specified in the licence>

Provided that the Authority may only issue licences of the types

specified in Schedule IV, or to regulate activities as stipulated under

sub-regulation (2).

(2) Any licence, permit or agreement issued under the Cap. 272.

Enemalta Act for the carrying out of any activity as specified in

sub-regulation (1) shall be deemed to expire on the 31 December,

2010, provided that Enemalta shall register such license, permit or

agreement with the Authority within six months of the coming into

force of these regulations.

Exemptions.

A person of the categories specified in Schedule I to these

regulations does not require a licence to carry out activities exempted

in that particular category and is exempted from the regulations listed

under that particular category.

Applications.

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

under these regulations shall be>

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

information as the Authority may request<

(ii) accompanied by such fees, bank guarantees and

insurance policies as the Authority may determine and prescribe

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

any bank guarantees and, or insurance policies shall be effective

as from the date of the issue of the licence and must subsist

throughout its duration. Interests and penalties, as established

by the 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 of any other licence,

permit or other authorization, or from an obligation arising from

any other law.

(2) A licence granted under these regulations may include

such conditions as appear to the Authority to be requisite or

expedient, having regard to the duties of the Authority.

The refusal of the Authority to grant a licence shall be

communicated to the applicant in writing not later than twenty eight

(28) days from its decision together with a statement of reasons.

(1) The 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 Authority, and any other

person authorized by it for such purpose, full access to any premises,

installations, accounts and any other records and any information

under the control of the licensee as the 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 Authority>

Provided that the Authority shall, in 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.

Where a licensee fails to comply with any condition of the

licence, the Authority may withdraw, amend or suspend such licence

or impose specific measures, which it deems necessary and

appropriate to achieve compliance>

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

technical, financial, customer service, administrative and operational

information and records concerning licensed activities that are

prescribed in the licence or that the Authority may deem necessary>

Provided that the Authority may prescribe the manner in which

the licensee keeps such records and documents which fall under this

regulation.

(1) The licensee may not transfer or assign the licence

to any other person or undertaking without the prior written approval

of the Authority and unless such transfer fees, as may be prescribed

by the Authority, are paid>

Provided that the 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 or management

of that body shall be deemed to be equivalent to the transfer of the

licence, and shall be subject to the approval by the Authority. 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,

stocks 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 Authority shall be subject Amendment,

revocation and

to modification, revocation or termination in accordance with these termination of

Regulations.

licences.

(2)

A licence shall be modified>

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

Authority may modify the conditions or requirements of the

said licence< and

(ii) where the Authority is of the opinion that a licence

should be amended, it may amend such licence with or without

the consent of the licensee>

Provided that, other than in the case of modifications pursuant

to paragraph (ii) and which are required urgently in the general

economic interest, the Authority shall issue a notice in the Gazette

before modifying a licence stating the proposed modification or

modifications, the nature of such modification or modifications and

the reasons thereof. Representations or objections with respect to

the proposed modifications may be made to the Authority within

twenty-eight (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< or

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

under the terms and conditions of the licence result in its

termination< or

(iii)

the renunciation thereto by the licensee< or

(iv) the insolvency, liquidation or bankruptcy of the

licensee, or a composition with his creditors.

(4) Without prejudice to regulation 8, the 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< or

(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 one hundred eighty (180) days from the date

of issue of the licence, or if he suspends such activity for a

period exceeding one hundred eighty (180) days in any twelve

month period>

Provided that the Authority may extend or curtail the period

aforesaid for a good and valid reason which shall be

communicated 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 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 reasonable time as

the Authority may have given him for that purpose>

Provided that in any action taken further to this paragraph,

the Authority shall respect the principle of proportionality and

that it shall communicate its intention to revoke the licence and

the reasons therefore 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 Authority to revoke it.

(5) Upon revocation of the whole of the 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 Authority not to be severable

from the entire licence>

Provided further 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) Subject to the provisions of regulations 20(8) and Generation.

22, new generating capacity shall not be constructed without an

authorisation granted by the Authority.

(2) Authorisations shall be granted or refused on the basis

of criteria listed in Schedule II to these regulations.

(3) The Authority shall establish the authorisation

procedures within three months of publication of these regulations,

and shall make public these procedures and any subsequent

amendments thereto, within one month of their establishment.

(4) The Authority, in the processing of applications for

authorisations, shall take into account the size and potential impact

of the generation plant which the application relates to.

(1) Enemalta Corporation is designated the distribution Distribution

system operation.

system operator in Malta.

(2) The distribution system operator shall be responsible

for operating, ensuring the maintenance of and, if necessary,

developing the distribution system in a given area and, where

applicable, its interconnections with other systems and for ensuring

the long term ability of the system to meet reasonable demands for

the distribution of electricity. The distribution system operator shall

maintain a secure, reliable and efficient electricity distribution system

within Malta with due regard to the environment.

(3) In any event, the distribution system operator must

not discriminate between system users or classes of system users,

particularly in favour of related businesses or undertakings.

(4) The distribution system operator shall provide system

users with information they need for efficient access to the system.

(5) Where it is necessary to procure energy to cover for

losses and reserve capacity in the system from another undertaking,

the distribution system operator shall use transparent, non-

discriminatory and market based rules and procedures.

(6) When planning the development of the distribution

network, the distribution system operator shall consider energy

efficiency#demand-side management measures and, or distributed

generation that may supplant the need to upgrade or replace

electricity capacity.

(7) Within such time and following such consultation as

the Authority may direct, the distribution system operator shall

prepare and publish a “network code”, subject to the approval of the

Authority, establishing the basic technical design and operational

requirements for the connection to the distribution system of

generating installations, consumers’ installations and direct lines.

The network code shall be objective and non-discriminatory and shall

be designed to>

(i) permit the development, maintenance and operation

of an efficient, coordinated and economical distribution system<

and

(ii)

facilitate competition where this is allowed by law.

The network code shall be notified in accordance with the

Procedure for the Provision of Information in the field of Technical

Standards and Regulations and of Rules of Information Society

Services Regulations, 2001.

The Authority may from time to time give directions, which

may include technical safety criteria, to the distribution system

operator in respect to the matters to be specified in the network code

and its review and revision by the distribution system operator.

(8) Until such time as the distribution system is connected

with any other system, the distribution system operator shall, with a

view to increasing security of supply and reducing the costs of supply,

be responsible for examining the impacts of, and if necessary

developing, interconnections with other systems. This shall be done

under the direction of the Authority, in view of the possible impact

of such interconnections on competition within the market.

(1) Enemalta Corporation shall be responsible for

dispatching generation plant and for balancing the distribution

system. Enemalta Corporation shall also be responsible for ensuring

the availability of any necessary ancillary services, as may be

prescribed by the Authority.

(2) The Authority may instruct Enemalta Corporation to

develop in accordance with regulation 20, subject to its approval

prior to entry into force and within such time as it may determine>

(i) rules for scheduling and criteria for dispatching that

take into account contractual obligations including those which

derive from the tendering specifications, public service

obligations, economic precedence of electricity from available

generating installations and the technical constraints on the

system< and

(ii) rules for balancing the electricity distribution system

and for the charging of system users of their networks for energy

imbalance and balancing services. Terms and conditions,

including rules and tariffs, for the provision of such services

shall be cost reflective>

Provided that, in any case, such instructions shall be issued

within one month from the receipt of an application by the first

producer other than Enemalta Corporation, for an authorisation

to construct a generator that is subject to dispatch>

Provided further that the Authority shall verify that these

rules are objective, transparent and non-discriminatory.

Without prejudice to regulation 7 or to any legal duty to Confidentiality for

the distribution

disclose information, the distribution system operator shall preserve system operator.

the confidentiality of commercially sensitive information obtained

in the course of carrying out its business, and shall prevent

information about its own activities, which may be commercially

advantageous, from being disclosed in a discriminatory manner.

(1) Electricity undertakings, whatever their system of Internal

and transparency

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

their annual accounts in accordance with the rules set in the

Companies Act concerning the preparation of the annual accounts Cap. 386.

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.

(2) Electricity undertakings shall, in their internal

accounting, keep accounts for their distribution activity as they would

be required to do if the activity in question was carried out by a

separate undertaking, with a view to avoiding discrimination, cross-

subsidisation and distortion of competition. They shall also keep

accounts, which may be consolidated, for other electricity activities

not relating to distribution. Revenue from ownership of the

distribution system shall be specified in the accounts. Where

appropriate, they shall keep consolidated accounts for other, non-

electricity activities. The internal accounts shall include a balance

sheet and a profit and loss account for each activity.

(3) The audit required in sub-regulation (1) shall in

particular verify that the obligations to avoid discrimination and cross

subsidies referred to in sub-regulation (2) are adhered to.

(4) The annual accounts shall indicate in the notes any

transaction of a certain size conducted with related undertakings.

(1) Where an application is made to the distribution

system operator by a person who wishes to become a system user,

the distribution system operator shall offer to enter into an agreement

for connection to and use of the distribution system, subject to

published tariffs that have been approved in accordance with

regulation 20. The terms and conditions of the agreement offered

shall be in accordance with the “network code” and with the

directions which the Authority may give from time to time.

(2) The distribution system operator shall not be required

to enter into an agreement where>

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

that it lacks the necessary distribution capacity< or

(ii) it demonstrates, to the satisfaction of the 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 distribution system operator into>

(a) a breach of any requirement of these regulations

and or of the Act, or

(b)

a breach of the “network code”<

(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< or

(v) the person making the application is not in possession

of a valid licence in cases where a licence is required under

Regulation 4.

(3) Where the distribution system operator refuses to

enter into an agreement under sub-regulation (2), it shall serve a

notice on the applicant stating the reasons for such refusal. It shall

also provide, for a reasonable fee which reflects the cost to provide

such information, the relevant information on measures that would

be necessary to reinforce the network, if requested to do so by the

applicant.

(1) Where access to the network is refused by the Direct lines.

distribution system operator due to a lack of capacity, the Authority

may authorise the applicant to whom such refusal is made to construct

a direct line not connected to the distribution system for the purpose

of facilitating the supply of electricity for which the application for

use of the distribution system was made and refused.

(2) The 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,

or any other law. Duly substantiated reasons must be given for such

refusal.

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

the 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 distribution system, to such extent

as the Authority may specify in the authorisation.

(1) The Authority shall monitor the functioning of the Monitoring of the

market by the

market, monitoring in particular>

Authority.

(a) the time taken by the distribution system operator to

make connections and repairs<

(b) the publication of appropriate information by the

distribution system operator concerning grid usage and capacity

allocation to interested parties, taking into account the need to

treat non-aggregated information as commercially confidential<

(c) the effective unbundling of accounts to ensure that

there are no cross subsidies between generation, distribution

and supply activities<

(d) the terms, conditions and tariffs for connecting new

producers of electricity to guarantee that these are objective,

transparent and non-discriminatory, in particular taking full

account of the costs and benefits of the various renewable energy

sources technologies, distributed generation and combined heat

and power<

(e) the extent to which the distribution system operator

fulfils its tasks in accordance with these regulations< and

(f)

the level of transparency and competition.

A report shall be published by the Authority annually.

(2) Until 2010, the Authority shall provide by the 31st

July of each year, in conformity with competition law, the

Commission with a report on market dominance, predatory and anti-

competitive behaviour. This report shall, in addition, review the

changing ownership patterns and any practical measures taken at

national level to ensure a sufficient variety of market actors or

practical measures taken to enhance interconnection and competition.

From 2010 onwards, the Authority shall provide such a report every

two years.

When it deems appropriate, the Authority shall propose to the

Minister appropriate policies for the regulation, control and

transparency of the electricity sector in order to avoid any abuse of

dominant position, in particular to the detriment of consumers, and

any predatory behaviour. These policies shall take account of the

provisions of the Competition Act and any other legislation.

(1) The Authority shall be responsible for approving,

prior to their entry into force, the tariffs and methodologies used to

calculate or establish the terms and conditions for>

(i) connection and access to the network. These tariffs,

or methodologies, shall allow the necessary investments in the

networks to be carried out in a manner allowing these

investments to ensure the viability of the networks<

(ii)

the provision of balancing services<

(iii) the supply of electricity to final consumers< and

(iv)

the purchase of electricity by Enemalta Corporation.

(2) Notwithstanding any other regulation, the Authority

shall submit any tariff, tariff structure or tariff mechanism for a

formal decision by the Minister. These tariffs, or methodologies or

modifications thereto shall be published, together with the decision

on formal adoption. Any formal rejection, and any justification for

it, of the tariff as submitted to the Minister shall be published.

(3) The Authority may require distribution system

operators, if necessary, to modify the terms and conditions, tariffs,

in these regulations, to ensure that they are proportionate and applied

in a non-discriminatory manner, and undertakings so directed shall

comply with such directions.

(4) The Authority has the right to hear and decide upon

any complaint against the distribution system operator with respect

to any matter covered by these regulations. The Authority shall issue

its decision within two months after receipt of the complaint. The

period may be extended by another two months where additional

information is sought by the Authority and further extended with

the agreement of the complainant. The period may be further

extended with the agreement of the complainant. Such decision shall

be binding unless and until overturned on appeal.

(5) The Minister may instruct, in writing, the Authority

to suspend the application of regulations 12, 17, 18 and 22 insofar

as their application would obstruct the performance, in law or in

fact, of the obligations imposed on electricity undertakings in the

general economic interest and insofar as the development of trade

would not be affected to such an extent as would be contrary to the

competition with regard to customers in accordance with these

regulations and Article 86 of the Treaty.

(6) The Authority shall monitor, report to, and propose

measures to the Minister every two years whether>

(i) there are adequate safeguards to protect vulnerable

customers, including measures to help them avoid disconnection

and to protect final customers in remote areas< and

(ii) there are high levels of consumer protection,

particularly with respect to transparency regarding contractual

terms and conditions, general information and dispute settlement

mechanisms.

(7) In carrying out its functions, the Authority shall

cooperate with other regulatory authorities and with the Commission

in a transparent manner.

(1) At least every two years, by the 31st December at

the latest or as may be prescribed by the Authority, the distribution

system operator shall draw up and submit to the Authority an estimate

of the available generating and distribution capacity, the

interconnectors with other systems, the actual distribution capacity,

all ancillary services and the current demand for electricity as well

as the generating and distribution capacity which is likely to be

connected to the system, of the need for interconnectors with other

systems, of potential distribution capacity, of all ancillary services

and of the demand for electricity. The estimate shall cover the period

of the subsequent five years.

(2) The Authority shall monitor the estimates produced

as per sub-regulation (1) and publish a report every two years, by

the 31st July at the latest, which shall cover, in particular,

supply#demand balance on the market, the level of expected future

demand and envisaged additional capacity being planned or under

construction and the quality and level of maintenance of the

networks, as well as measures to cover peak demand and to address

any envisaged shortfalls on the market, and shall forward this report

to the Commission forthwith.

(3) In the event of sudden crisis in the energy market,

and where the physical safety or security of persons, apparatus or

installations or system integrity is threatened, the Minister may

instruct, in writing, the Authority to take temporary safeguard

measures. Such measures must cause the least possible disturbance

in the functioning of the market and must not be wider in scope than

necessary to remedy the sudden difficulties which have arisen. The

Authority shall prepare a report to the Minister suitable for reporting

to the Commission.

(1) Notwithstanding the provisions of regulation 12, new

generation capacity may also be constructed following a tendering

procedure or any procedure equivalent in terms of transparency and

non-discrimination, on the basis of published criteria for new capacity

or energy efficiency#demand-side management measures. Such a

tender may be launched by a public body or a private body

independent from electricity generation, transmission, distribution

and supply activities, appointed for the purpose by the Minister in

the Gazette. This body shall take all necessary steps to ensure

confidentiality of the information contained in the tenders and shall

follow the rules in sub-regulation (3).

(2) The Authority will advise the Minister when such a

tender is required>

(i) if, on the basis of the authorisation procedure, the

generating capacity being built together with the energy

efficiency#demand-side management measures being taken are

not sufficient to ensure security of supply.

Provided that consideration is to be taken of electricity

supply offers with long-term guarantees from existing

generating units, provided that additional requirements can be

met in this way< or

(ii) in the interests of protection of the environment or

promotion of infant new technologies if these objectives are

not being met.

(3) Details of the tendering procedure for means of

generating capacity and energy efficiency#demand-side management

measures shall be published in the Official Journal of the European

Union at least six months prior to the closing date for tenders.

The tender specifications shall be made available to any

interested undertaking so that it has sufficient time in which to submit

a tender.

With a view to ensuring transparency and non-discrimination,

the tender specifications shall contain a detailed description of the

contract specifications and of the procedure to be followed by all

tenderers and an exhaustive list of criteria governing the selection

of tenderers and the award of the contract, including incentives, such

as subsidies, which are covered by the tender.

(1)

Schedule III applies to household customers.

Obligations on

suppliers.

(2) Final customers shall be provided, by their supplier,

with the following information in or with the bills and in promotional

materials>

(i) the contribution of each energy source to the overall

fuel mix of the supplier over the preceding year<

(ii) at least the reference to existing reference sources,

such as web-pages, where information on the environmental

impact, in terms of at least emissions of CO 2 resulting from the

electricity produced by the overall fuel mix of the supplier over

the preceding year, is publicly available.

The supplier may be audited by the Authority to ensure that the

information provided to his customers pursuant to this sub-regulation

is reliable.

(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 him to comply immediately with the

provisions of the said regulations.

(2) Any person who fails to abide by the provisions of 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 such aggregate fines (multa) shall, not exceed

the amount of ten thousand liri.

(1) Any person who contravenes any of the provisions

of these regulations or of a licence or approval issued thereunder,

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

fine (multa) of not more than ten thousand liri.

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

these regulations 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, on conviction, be liable to 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) of

this regulation, where any person fails to comply with the provisions

of these regulations for a period exceeding six months, the competent

authority may revoke his or her licence.

(1) Enemalta Corporation shall prepare procedures, Special clauses to

subject to the prior approval of the Authority, to ensure that the prevent

monopoly position

purchasing of electricity is carried out with sufficient independence by Enemalta

Corporation.

from the rest of Enemalta business and that Enemalta Corporation

does not discriminate against any other producer in favour of

Enemalta. These procedures shall be submitted to the Authority

within two months of the coming into force of these regulations and

may be modified by the Authority at any time it so decides.

(2) Enemalta Corporation shall maintain or procure an

appropriate level of reserve generation capacity to achieve standards

of reliability, as established by the Authority, for the supply of

electricity to meet demand.

The Electricity Regulations, 2003, are hereby repealed.

Repeal of L.N. 163

of 2003.

Schedule I

Regulation 3

A.

Exemptions from requirement to request authorisation or to hold licence>

1. A producer who>

(a)

produces electricity solely for his own use<

(b)

is not connected in parallel to the distribution system< and

(c) has installed a total peak generation capacity of less than 500

kilowatts<

shall be exempted from regulations 3, 12, 13, 14 and 23.

2. A producer with a total peak generation capacity of less than 3.7 kilowatts

produced solely from renewable sources of energy or cogeneration plant, shall be

exempted from regulations 3, 12, 13, 14 and 23, but shall still be required to notify

the Authority, in such form and manner as required by the Authority prior to

construction of such generation plant, and submit to the Authority such information

as the Authority may request from time to time.

Schedule II

Criteria for the award of authorisations

Regulation 12

An application for an authorisation may be determined by the Authority in

accordance with the following criteria>

(a) that the Authority is satisfied that, if it grants the authorisation, no

activity carried out under it will adversely affect the safety and security of

the electricity system<

(b) that the Authority is satisfied that, if it grants the authorisation,

energy will be used efficiently in the course of any activities carried out

under the authorisation<

(c) that the Authority is satisfied that the applicant will comply with

any distribution code in so far as it is applicable to the applicant and that, at

the relevant times, will have the capability of doing so<

(d) that the Authority is satisfied that the applicant has commenced,

or will at the appropriate time commence, to apply for all applicable legal

consents necessary for the construction of the plant to which the application

relates, and in particular any consent related to>

(i)

public health and safety<

(ii)

safety and security of the electrical system<

(iii) protection of the environment, including the limitation of

emissions to the atmosphere, water or land<

(iv)

siting of the generation plant and land use<

(v)

efficient use of energy< and

(vi) nature of the primary source of energy to be used in the

generation station<

(e) that the Authority is satisfied that the generating station to which

the application relates will be constructed and commissioned within a period

which the Authority shall specify in relation to each application<

(f) that the Authority is satisfied that the generating station to which

the application relates will be capable of providing an appropriate level of

ancillary services being the services necessary to ensure the stable and secure

operation of the electricity system, including the provision of spinning reserve,

reactive power, frequency control or black start capability, as specified by the

Authority in the authorisation<

(g) that the Authority is satisfied that the applicant is a fit and proper

person to be granted an authorisation and has the financial capacity and

technical skills to carry out the activities to which the application relates and

to comply with the authorisation, if granted<

(h) that the Authority is satisfied that the applicant will be capable of

complying with any regulations that have been made by the Minister under

article 28 of the Malta Resources Authority Act, in particular regulations

relating to public service obligations and customer protection.

Schedule III

Measures on consumer protection for household customers

Regulation 23

Without prejudice to any other law on consumer protection>

(a) Customers have a right to a contract with their electricity service

provider that specifies>

(i)

the identity and address of the supplier<

(ii) the services provided, the service quality levels offered, as well

as the time for the initial connection<

(iii)

if offered, the types of maintenance service offered<

(iv) the means by which up-to-date information on all applicable

tariffs and maintenance charges may be obtained<

(v) the duration of the contract, the conditions for renewal and

termination of services and of the contract, the existence of any right of

withdrawal<

(vi) any compensation and the refund arrangements which apply

if contracted service quality levels are not met< and

(vii)

the method of initiating procedures for settlement of disputes.

In any case, this information should be provided prior to the conclusion or

confirmation of the contract. Where contracts are concluded through intermediaries,

the above information shall also be provided prior to the conclusion of the contract<

(b) No contractual conditions shall be modified before adequate notice

has been given to customers and before customers are informed about their

right of withdrawal when the notice is given. The service provider shall notify

his subscribers directly of any increase in charges, and not later than one week

from coming into force of such increases. Customers are free to withdraw

from contracts if they do not accept the new conditions notified to them by

their electricity service provider<

(c) The electricity service provider shall provide customers with

transparent information on applicable prices and tariffs and on standard terms

and conditions, in respect of access to and use of electricity services<

(d) The electricity service provider shall offer a wide choice of payment

methods. Any difference in terms and conditions shall reflect the costs to the

supplier of the different payment systems. General terms and conditions shall

be fair and transparent. They shall be given in clear and comprehensible

language. Customers shall not be subjected to unfair or misleading selling

methods<

(e) Enemalta Corporation shall publish in a clear manner, on its website,

information about the right of access to service and the terms, conditions and

tariffs applicable to customers with such a right.

Schedule IV

Types of licences that the Authority may issue

Regulation 3

The Authority may issue licences of the following types>

Licence to produce, distribute and supply final customers>

1. Provided that such a license may only be issued to Enemalta Corporation<

Licence to produce electricity for own use< and

2. Licence to produce electricity to supply Enemalta.

3. Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press