Electricity Supply (Amendment No. 4) Regulations, 2014

L.N. 449 of 2014

MALTA RESOURCES AUTHORITY ACT

(CAP. 423)

Electricity Supply (Amendment No. 4) Regulations, 2014

IN exercise of the powers conferred by article 28(1) of the Malta

Resources Authority Act, the Minister for Energy and Health, after

consultation with the Malta Resources Authority, and Enemalta plc,

with the approval of the Malta Resources Authority, has made the

following regulations:-

The title of these regulations is the Electricity Supply

(Amendment No. 4) Regulations, 2014, and these regulations shall be

read and construed as one with the Electricity Supply Regulations,

hereinafter referred to as "the principal regulations".

Immediately after the definition "application" in sub-

regulation (1) of regulation 2 of the principal regulations, there shall

be added the following new definition

" "Authority" means the Malta Resources

Authority established by the Malta Resources

Authority Act;".

Regulation 36 of the principal regulations shall be

amended as follows

(a)

sub-regulations (1) to (8) thereof, both inclusive,

shall be renumbered as sub-regulations (6) to (13) respectively;

and

(b)

immediately before sub-regulation (6) thereof, as

renumbered, there shall be added the following sub-regulations

"(1) A distribution system operator may enter into

special agreements in order to charge prices other than

those established by these regulations, provided that the

said prices are lower than those established by tariff.

(2) The Authority shall approve any proposed

tariffs submitted by a distribution system operator that

provide sufficient revenue to the distribution system

operator in any financial year in respect of the generation,

distribution, and sale of electricity

(a) to cover its full cost which shall include

all operational, administrative and financial costs

incurred in the generation, distribution and retail of

electricity units including but not limited to costs

relating to operational asset impairment, non-

recoverable tax and duties (excluding corporate tax

on profits), and accumulated losses;

(b) to meet periodic repayments on long

term indebtedness to the extent that any such

repayment exceeds the provisions for depreciation;

and

(c) to provide a reasonable return on the

equity value,

and any such tariffs and agreements shall not give undue

preference as between consumers similarly situated or

make undue discrimination as between persons similarly

situated having regard to the place and time of supply, the

quantity of electrical energy supplied, the consumer load

and power factor, the purpose for which the supply is taken

and any other circumstance which could justify a

preferential or discriminatory treatment.

(3) (a) A distribution system operator shall

communicate its proposed tariffs to the Authority together

with all documentation in support of its proposals, and

together with any other information and documentation

reasonably requested by the Authority within a period of

three (3) months from the submission of the proposal. Any

documentation submitted to the Authority by the

distribution system operator in terms of this regulation

shall be considered as confidential and economically

sensitive and shall be handled accordingly.

(b) The Authority shall communicate its

decision to approve or refuse the tariffs proposed by the

distribution system operator within six (6) months from the

submission of the proposal, provided that the Authority

may only refuse to grant its approval to the said tariffs after

having given the distribution system operator an

opportunity to make representations to the Authority, and

shall provide reasons to the distribution system operator

explaining its decision.

(4)

The Authority may only refuse to grant its

approval to any tariffs proposed by the distribution system

operator when such proposed tariffs do not comply with

the principles established by sub-regulation (2).

(5) A distribution system operator shall have a

right to appeal on any grounds of fact and law to the

Administrative Review Tribunal from any decision taken

by the Authority in terms of this regulation. In reaching a

decision the said Administrative Review Tribunal shall

have regard to

(a) the principles established in terms of

this regulation;

(b) the proposed tariff structures proposed

by the distribution system operator; and

(c) any relevant correspondence between

the Authority and the distribution system operator,

and any legitimate expectation created by law,

regulation, or by the Authority in favour of the

distribution system operator.".

€0.36