Electricity Regulations, 2021

L.N. 235 of 2021

REGULATOR FOR ENERGY AND WATER SERVICES ACT

(CAP. 545)

Electricity Regulations, 2021

IN EXERCISE of the powers conferred by article 37(1) of the

Regulator for Energy and Water Services Act, the Minister for Energy,

Enterprise and Sustainable Development after consultation with the

Regulator for Energy and Water Services, has made the following

regulations:-

(1) The title of these regulations is the Electricity

Regulations, 2021.

(2) These regulations transpose 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). These regulations

(a) establish common rules for the generation,

transmission, distribution, energy storage and supply of

electricity, together with consumer protection provisions, with a

view to creating truly integrated, competitive, consumer-centred,

flexible, fair and transparent electricity markets in the Union;

(b) using the advantages of an integrated market, aim to

ensure affordable, transparent energy prices and costs for

consumers, a high degree of security of supply and a smooth

transition towards a sustainable low-carbon energy system;

(c) lay down key rules relating to the organisation and

functioning of the Union electricity sector, in particular rules on

consumer empowerment and protection, and insofar as they are

applicable, on open access to the integrated market, on third-

party access to transmission and distribution infrastructure,

unbundling requirements, and rules on the independence of the

Regulator;

(d) set out modes for the Regulator and transmission

system operators to cooperate towards the creation of a fully

interconnected internal market for electricity that increases the

integration of electricity from renewable sources, free

competition and security of supply.

(3) These regulations also transpose Articles 4(9) and 4(11) of

Directive 2014/94/EU of the European Parliament and of the Council

of 22 October 2014 on the deployment of alternative fuels

infrastructure.

Minimum Requirements for Billing and Billing Information

(regulation 15)

1. Minimum information to be contained on the bill and in the

billing information

1.1. The following key information shall be prominently

displayed to final customers in their bills, distinctly separate from

other parts of the bill

(a) the price to be paid and a breakdown of the price

where possible, together with a clear statement that all energy

sources may also benefit from incentives that were not financed

through the levies indicated in the breakdown of the price;

(b)

the date on which payment is due.

1.2. The following key information shall be prominently

displayed to final customers in their bills and billing information,

distinctly separate from other parts of the bill and billing information

(a)

electricity consumption for the billing period;

(b)

the name and contact details of the supplier, including

a consumer support hotline and email address;

(c)

the tariff name;

(d)

the end date of the contract, if applicable;

(e) the information on the availability and benefits of

switching;

(f) the final customer's switching code or unique

identification code for the final customer's supply point;

(g) information on final customers' rights as regards out-

of-court dispute settlement, including the contact details of the

entity responsible pursuant to regulation 23;

(h)

the single point of contact referred to in regulation

(i) a link or reference to where comparison tools referred

to in regulation 11 can be found.

1.3. Where bills are based on actual consumption or remote

reading by the operator, the following information shall be made

available to final customers in, with or signposted to within their bills

and periodic settlement bills

(a) comparisons of the final customer's current electricity

consumption with the final customer's consumption for the same

period in the previous year in graphic form;

(b) contact information for consumer organisations,

energy agencies or similar bodies, including website addresses,

from which information may be obtained on available energy

efficiency improvement measures for energy-using equipment;

(c) comparisons with an average normalised

or

benchmarked final customer in the same user category.

2. Frequency of billing and the provision of billing

information

(a) billing on the basis of actual consumption shall take

place at least once a year;

(b) where the final customer does not have a meter that

allows remote reading by the operator, or where the final

customer has actively chosen to disable remote reading in

accordance with national law, accurate billing information based

on actual consumption shall be made available to the final

customer at least every six (6) months, or once every three (3)

months, if requested or where the final customer has opted to

receive electronic billing;

(c) where the final customer does not have a meter that

allows remote reading by the operator, or where the final

customer has actively chosen to disable remote reading in

accordance with national law, the obligations in points (a) and

(b) may be fulfilled by means of a system of regular self-reading

by the final customer, whereby the final customer communicates

readings from the meter to the operator; billing or billing

information may be based on estimated consumption or a flat

rate only where the final customer has not provided a meter

reading for a given billing interval;

(d) where the final customer has a meter that allows

remote reading by the operator, accurate billing information

based on actual consumption shall be provided at least every

month; such information may also be made available via the

internet, and shall be updated as frequently as allowed by the

measurement devices and systems used.

3. Breakdown of the final customer's price

The customer's price is the sum of the following three

components: the energy and supply component, the network

component (transmission and distribution) and the component

comprising taxes, levies, fees and charges.

Where a breakdown of the final customer’s price is presented in

bills, the common definitions of the three components in that

breakdown established under Regulation (EU) 2016/1952 of the

European Parliament and of the Council shall be used.

4. Access to complementary information on historical

consumption

To the extent that complementary information on historical

consumption is available, such information shall be made available, at

the request of the final customer, to the supplier or service provider

designated by the final customer.

Where the final customer has a meter that allows remote reading

by the operator installed, the final customer shall have easy access to

complementary information on historical consumption allowing

detailed self-checks.

Complementary information on historical consumption shall

include

(a) cumulative data for at least the three previous years

or the period since the start of the electricity supply contract, if

that period is shorter. The data shall correspond to the intervals

for which frequent billing information has been produced; and

(b) detailed data according to the time of use for any day,

week, month and year, which is made available to the final

customer without undue delay via the internet or the meter

interface, covering the period of at least the previous twenty-four

(24) months or the period since the start of the electricity supply

contract, if that period is shorter.

5. Disclosure of energy sources

Suppliers shall specify in bills the contribution of each energy

source to the electricity purchased by the final customer in accordance

with the electricity supply contract (product level disclosure).

The following information shall be made available to final

customers in, with, or signposted to within their bills and billing

information

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

energy mix of the supplier (at national level, namely in the

Member State in which the electricity supply contract has been

concluded, as well as at the level of the supplier if the supplier is

active in several Member States) over the preceding year in a

comprehensible and clearly comparable manner;

(b) information on the environmental impact, in at least

terms of CO 2 emissions and the radioactive waste resulting from

the electricity produced by the overall energy mix of the supplier

over the preceding year.

As regards paragraph (a) of this item, with respect to electricity

obtained via an electricity exchange or imported from an undertaking

situated outside the Union, aggregate figures provided by the exchange

or the undertaking in question over the preceding year may be used.

For the disclosure of electricity from high efficiency

cogeneration, guarantees of origin issued under Article 14(10) of

Directive 2012/27/EU may be used. The disclosure of electricity from

renewable sources shall be done by using guarantees of origin, except

in the cases referred to in points (a) and (b) of Article 19(8) of

Directive (EU) 2018/2001.

The Regulator shall take the necessary steps to ensure that the

information provided by suppliers to final customers pursuant to this

point is reliable and is provided at a national level in a clearly

comparable manner.

In these regulations, unless the context otherwise requires

Interpretation.

"Act" means the Regulator for Energy and Water Services Act;

"active customer" means a final customer, or a group of jointly

acting final customers, who consumes or stores electricity generated

within its premises located within confined boundaries, or who sells

self-generated electricity or participates in flexibility or energy

efficiency schemes, provided that those activities do not constitute its

primary commercial or professional activity;

"aggregation" means a function performed by a natural or legal

person who combines multiple customer loads or generated electricity

for sale, purchase or auction in any electricity market;

"ancillary service" means a service necessary for the operation

of a transmission or distribution system, including balancing and non-

frequency ancillary services, but not including congestion

management;

"balancing" means balancing as defined in point 10 of Article 2

of Regulation (EU) 2019/943;

"balancing energy" means balancing energy as defined in point

11 of Article 2 of Regulation (EU) 2019/943;

"balance responsible party" means balance responsible party as

defined in point 14 of Article 2 of Regulation (EU) 2019/943;

"best available techniques" means, in the context of data

protection and security in a smart metering environment, the most

effective, advanced and practically suitable techniques for providing,

in principle, the basis for complying with the Union data protection

and security rules;

"billing information" means the information provided on a final

customer's bill, apart from a request for payment;

"citizen energy community" means a legal entity that

(a) is based on voluntary and open participation and is

effectively controlled by members or shareholders that are

natural persons, local authorities, including municipalities, or

small enterprises;

(b) has for its primary purpose to provide environmental,

economic or social community benefits to its members or

shareholders or to the local areas where it operates rather than to

generate financial profits; and

(c) may engage in generation, including from renewable

sources, distribution, supply, consumption, aggregation, energy

storage, energy efficiency services or charging services for

electric vehicles or provide other energy services to its members

or shareholders;

"congestion" means congestion as defined in point (4) of Article

2 of Regulation (EU) 2019/943;

"contract termination fee" means a charge or penalty imposed on

customers by suppliers or market participants engaged in aggregation,

for terminating an electricity supply or service contract;

"control" means rights, contracts or other means which, either

separately or in combination and having regard to the considerations of

fact or law involved, confer the possibility of exercising decisive

influence on an undertaking, in particular by

(a) ownership or the right to use all or part of the assets

of an undertaking;

(b) rights or contracts which confer decisive influence on

the composition, voting or decisions of the organs of an

undertaking;

"conventional meter" means an analogue or electronic meter with

no capability to both transmit and receive data;

"customer" means a wholesale or final customer of electricity;

"demand response" means the change of electricity load by final

customers from their normal or current consumption patterns in

response to market signals, including in response to time-variable

electricity prices or incentive payments, or in response to the

acceptance of the final customer's bid to sell demand reduction or

increase at a price in an organised market as defined in point 4 of

Article 2 of Commission Implementing Regulation (EU) No 1348/

2014 (17), whether alone or through aggregation;

"Directive" means 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);

"direct line" means either an electricity line linking an isolated

generation site with an isolated customer or an electricity line linking a

producer and an electricity supply undertaking to supply directly their

own premises, subsidiaries and customers;

"distributed generation" means generating installations

connected to the distribution system; "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 does not include supply;

"distribution system operator" or "DSO" means a natural or legal

person who is 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;

"dynamic electricity price contract" means an electricity supply

contract between a supplier and a final customer that reflects the price

variation in the spot markets, including in the day-ahead and intraday

markets, at intervals at least equal to the market settlement frequency;

"electricity derivative" means a financial instrument specified in

point (5), (6) or (7) of Section C of Annex I to Directive 2014/65/EU

of the European Parliament and of the Council, where that instrument

relates to electricity;

"electricity markets" means markets for electricity, including

over-the-counter markets and electricity exchanges, markets for the

trading of energy, capacity, balancing and ancillary services in all

timeframes, including forward, day-ahead and intraday markets;

"electricity supply contract" means a contract for the supply of

electricity, but does not include electricity derivatives;

"electricity undertaking" means a natural or legal person who

carries out at least one of the following functions: generation,

transmission, distribution, aggregation, demand response, energy

storage, supply or purchase of electricity, and who is responsible for

the commercial, technical or maintenance tasks related to those

functions, but does not include final customers;

"energy efficiency" means the ratio of output of performance,

service, goods or energy, to input of energy;

"energy from renewable sources" or "renewable energy" means

energy from renewable non-fossil sources, namely wind, solar (solar

thermal and solar photovoltaic) and geothermal energy, ambient

energy, tide, wave and other ocean energy, hydropower, biomass,

landfill gas, sewage treatment plant gas, and biogas;

"energy storage" means, in the electricity system, deferring the

final use of electricity to a moment later than when it was generated, or

the conversion of electrical energy into a form of energy which can be

stored, the storing of such energy, and the subsequent reconversion of

such energy into electrical energy or use as another energy carrier;

"energy storage facility’ means, in the electricity system, a

facility where energy storage occurs;

"final customer" means a customer who purchases electricity for

own use;

"fully integrated network components" means network

components that are integrated in the transmission or distribution

system, including storage facilities, and that are used for the sole

purpose of ensuring a secure and reliable operation of the transmission

or distribution system, and not for balancing or congestion

management;

"generation" means the production of electricity;

"horizontally integrated undertaking" means an electricity

undertaking performing at least one of the functions of generation for

sale, or transmission, or distribution, or supply, and another non-

electricity activity;

"household customer" means a customer who purchases

electricity for the customer's own household consumption, excluding

commercial or professional activities;

"imbalance settlement period" means imbalance settlement

period as defined in point (15) of Article 2 of Regulation (EU) 2019/

943;

"independent aggregator" means a market participant engaged in

aggregation who is not affiliated to the customer's supplier;

"integrated electricity undertaking" means a vertically integrated

undertaking or a horizontally integrated undertaking;

"interoperability" means, in the context of smart metering, the

ability of two or more energy or communication networks, systems,

devices, applications or components to interwork to exchange and use

information in order to perform required functions;

"interconnector" means equipment used to link electricity

systems;

"interconnected system" means a number of transmission and

distribution systems linked together by means of one or more

interconnectors;

"market participant" means market participant as defined in point

(25) of Article 2 of Regulation (EU) 2019/943;

"microenterprise" means an enterprise which employs fewer

than ten (10) persons and whose annual turnover and/or annual balance

sheet total does not exceed two million euro (€2,000, 000);

"Member State" means a member state of the European Union;

"Minister" means the Minister responsible for energy;

"near real-time" means, in the context of smart metering, a short

time period, usually down to seconds or up to the imbalance settlement

period in the national market;

"non-household customer" means a natural or legal person who

purchases electricity that is not for own household use, including

producers, industrial customers, small and medium-sized enterprises,

businesses and wholesale customers;

"non-frequency ancillary service" means a service used by a

transmission system operator or distribution system operator for steady

state voltage control, fast reactive current injections, inertia for local

grid stability, short-circuit current, black start capability and island

operation capability;

"person" means any natural or legal person;

"producer" means a natural or legal person who generates

electricity;

"recharging point" means an interface that is capable of charging

one electric vehicle at a time or exchanging the battery of one electric

vehicle at a time;

"regional coordination centre" means a regional coordination

centre established pursuant to Article 35 of Regulation (EU) 2019/943;

"Regulation (EU) 2019/943 " means Regulation (EU) 2019/943

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

internal market for electricity;

"Regulator" means the Regulator for Energy and Water Services

established by the Act;

"related undertaking" means affiliated undertakings as defined in

point (12) of Article 2 of Directive 2013/34/EU of the European

Parliament and of the Council, and undertakings which belong to the

same shareholders;

"smart metering system" means an electronic system that is

capable of measuring electricity fed into the grid or electricity

consumed from the grid, providing more information than a

conventional meter, and that is capable of transmitting and receiving

data for information, monitoring and control purposes, using a form of

electronic communication;

"supply" means the sale, including the resale, of electricity to

customers;

"switching-related fee" means a charge or penalty for changing

suppliers or market participants engaged in aggregation, including

contract termination fees, that is directly or indirectly imposed on

customers by suppliers, market participants engaged in aggregation or

system operators;

"transmission" means the transport of electricity on the extra

high-voltage and high-voltage interconnected system with a view to its

delivery to final customers or to distributors, but does not include

supply;

"transmission system operator" means a natural or legal person

who is responsible for operating, ensuring the maintenance of and, if

necessary, developing the transmission 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 transmission of electricity;

"security" means both security of supply and provision of

electricity, and technical safety;

"small connected system" means any system that had

consumption of less than 3,000 GWh in the year 1996, where more

than five per cent (5%) of annual consumption is obtained through

interconnection with other systems;

"small enterprise" means an enterprise which employs fewer than

50 persons and whose annual turnover and/or annual balance sheet

total does not exceed ten million euro (€10, 000, 000);

"small isolated system" means any system that had consumption

of less than 3,000 GWh in the year 1996, where less than five per cent

(5%) of annual consumption is obtained through interconnection with

other systems;

"system user" means a natural or legal person who supplies to, or

is supplied by a transmission system or a distribution system;

"vertically integrated undertaking" means an electricity

undertaking or a group of electricity undertakings where the same

person or the same persons are entitled, directly or indirectly, to

exercise control, and where the undertaking or group of undertakings

performs at least one of the functions of transmission or distribution,

and at least one of the functions of generation or supply;

"wholesale customer" means a natural or legal person who

purchases electricity for the purpose of resale inside or outside the

system where that person is established.

Smart Metering Systems

(regulations 16, 17 and 18)

1. The distribution system operator shall be responsible for

the deployment of smart metering systems in Malta which may be

subject to an economic assessment of all of the long-term costs and

benefits to the market and the individual consumer or which form of

smart metering is economically reasonable and cost-effective and

which time frame is feasible for their distribution.

2. Such assessment shall take into consideration the

methodology for the cost-benefit analysis and the minimum

functionalities for smart metering systems provided for in Commission

Recommendation 2012/148/EU (1) as well as the best available

techniques for ensuring the highest level of cybersecurity and data

protection.

3. Subject to that assessment, the distribution system operator

shall prepare a timetable with a target of up to ten years for the

deployment of smart metering systems. Where the deployment of

smart metering systems is assessed positively, at least eighty per cent

(80%) of final customers shall be equipped with smart meters either

within seven years of the date of the positive assessment or by 2024 if

the systematic deployment of smart metering systems has occurred

before 4 th July 2019.

All customers shall be free to purchase electricity from the Free choice of

supplier of their choice and to have more than one electricity supply supplier.

contract at the same time provided that the required connection and

metering points are established

Provided that such rights shall not be exercised until such

time that the derogation under paragraph 5 of Article 66 of the

Directive applies.

Exemptions from the Requirement of an Authorisation or Licence

(regulations 6 and 54)

PART A. Generating stations

1. A producer who

(a)

produces electricity solely for his own use; and

(b)

is not connected in parallel to the distribution system;

and

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

than 1500 kVA;

shall be exempted from the requirement of an authorisation to

construct the generation station and from the requirement to hold a

licence.

2. A producer with a total peak generation capacity rated up to

and including 16 Amps per phase, single-phase or multi-phase, 230/

400V AC produced solely from renewable sources of energy or

cogeneration plant, shall be exempted from the requirement of an

authorisation to construct the generation station and from the

requirement to hold a licence but shall still be required to notify the

Regulator, in such form and manner as required by the Regulator prior

to construction of such generation plant, and submit to the Regulator

such information as the Regulator may request from time to time.

PART B. Energy Storage

1. Energy storage facilities shall be notified to the Regulator

in such form and manner specified and made public by the Regulator.

€6.75

(1) Suppliers shall be free to determine the price at which Market-based

they supply electricity to customers. The Regulator shall take supply prices.

appropriate actions to ensure effective competition between suppliers

(2) The Minister responsible for social policy shall ensure the

protection of energy poor and vulnerable household customers

pursuant to regulations 25 and 26

Provided that protection of energy poor and vulnerable

household customers shall not be achieved by means of public

interventions in the price setting for the supply of electricity.

(3) By way of derogation from sub-regulations (1) and (2), the

Minister may apply public interventions in the price setting for the

supply of electricity to energy poor or vulnerable household

customers. Such public interventions shall be subject to the conditions

set out in sub-regulations (4) and (5).

(4) Public interventions in the price setting for the supply of

electricity shall

(a) pursue a general economic interest and not go beyond

what is necessary to achieve that general economic interest;

(b) be clearly defined, transparent, non-discriminatory

and verifiable;

(c) guarantee equal

access

for

Union

electricity

undertakings to customers

(d) be limited in time and proportionate as regards their

beneficiaries;

(e) not result in additional costs for market participants

in a discriminatory way.

(5) When applying public interventions in the price setting for

the supply of electricity in accordance with sub-regulation (3) the

Minister shall also comply with point (d) of Article 3(3) and with

Article 24 of Regulation (EU) 2018/1999, regardless of whether there

are a significant number of households in energy poverty.

(6) For the purpose of a transition period to establish effective

competition for electricity supply contracts between suppliers, and to

achieve fully effective market-based retail pricing of electricity in

accordance with sub-regulation (1), the Minister may apply public

interventions in the price setting for the supply of electricity to

household customers and to microenterprises that do not benefit from

public interventions pursuant to sub-regulation (3).

(7) Public interventions pursuant to sub-regulation (6) shall

comply with the criteria set out in sub-regulation (4) and shall

(a) be accompanied by a set of measures to achieve

effective competition and a methodology for assessing progress

with regard to those measures;

(b) be set using a methodology that ensures non-

discriminatory treatment of suppliers;

(c) be set at a price that is above cost, at a level where

effective price competition can occur;

(d) be designed to minimise any negative impact on the

wholesale electricity market;

(e) ensure that all beneficiaries of such public

interventions have the possibility to choose competitive market

offers and are directly informed at least every quarter of the

availability of offers and savings in the competitive market, in

particular of dynamic electricity price contracts, and shall ensure

that they are provided with assistance to switch to a market-

based offer;

(f) ensure that, pursuant to regulations 16 and 18, all

beneficiaries of such public interventions are entitled to, and are

offered to, have smart meters installed at no extra upfront cost to

the customer, are directly informed of the possibility of installing

smart meters and are provided with necessary assistance;

(g) not lead to direct cross-subsidisation between

customers supplied at free market prices and those supplied at

regulated supply prices.

(8) The Minister shall notify the measures taken in accordance

with sub-regulations (3) and (6) to the Commission within one (1)

month after their adoption and may apply them immediately. The

notification shall be accompanied by an explanation of why other

instruments were not sufficient to achieve the objective pursued, of

how the requirements set out in sub-regulations (4) and (7) are fulfilled

and of the effects of the notified measures on competition. The

notification shall describe the scope of the beneficiaries, the duration

of the measures and the number of household customers affected by

the measures and shall explain how the regulated prices have been

determined.

(9) By 1 st January 2022 and 1 st January 2025, the Minister

shall submit reports to the Commission on the implementation of this

regulation, the necessity and proportionality of public interventions

under this regulation, and an assessment of the progress towards

achieving effective competition between suppliers and the transition to

market-based prices. The Minister shall report on the compliance with

the conditions set out in sub-regulation (7) with regard to the

application of regulated prices in accordance with sub-regulation (6),

including on compliance by suppliers that are required to apply such

interventions, as well as on the impact of regulated prices on the

finances of those supplier.

(10) This regulation shall not apply until such time as the

derogations under paragraphs 3 and 5 of Article 66 of the Directive

apply.

(1) (a) All producers and electricity supply undertakings

established within Malta may supply their own premises, subsidiaries

and customers through a direct line, without being subject to

disproportionate administrative procedures or costs.

(b) All customers within Malta, individually or jointly, may be

supplied through a direct line by producers and electricity supply

undertakings

Provided that such rights shall not be exercised until such

time that the derogation under paragraph 5 of Article 66 of the

Directive applies.

(2) The Regulator shall lay down the criteria for the grant of

authorisations for the construction of direct lines in Malta. Those

criteria shall be objective and non-discriminatory.

(3) The possibility of supplying electricity through a direct line

as referred to in sub-regulation (1) shall not affect the possibility of

contracting electricity in accordance with Article 6 of the Directive

Provided that such rights shall not be exercised until such

time that the derogation under paragraph 5 of Article 66 of the

Directive applies.

(4) The Regulator may issue authorisations to construct a

direct line, subject either to the refusal of system access on the basis,

as appropriate, of Article 6 of the Directive or to the opening of a

dispute settlement procedure under regulation 48

Provided that refusal of system access on the basis of

Article 6 shall not be exercised until such time that the derogations

under paragraph 3 of Article 66 of the Directive applies.

(5) The Regulator may refuse to authorise a direct line if the

granting of such an authorisation would obstruct the application of the

provisions on public service obligations in Article 9 of the Directive.

Duly substantiated reasons shall be given for such a refusal.

(1) The construction of new generation capacity shall

require an authorisation from the Regulator

Provided that no such authorisation shall be required for the

producers listed in Part A of the Third Schedule.

(2)

The authorisation procedure for the construction of new

generating capacity, shall be conducted in accordance with objective,

transparent and non-discriminatory criteria.

(3) (a) The Regulator, 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. Specific,

simplified and streamlined authorisation procedures for small

decentralised and, or distributed generation, which take into account

their limited size and potential impact, shall be determined by the

Regulator.

(b) The Regulator when processing the applications for

authorisations referred to in paragraph (a) shall

(i) take into account the outcome of the

comprehensive assessment referred to in regulation 21(1)

and 21(2) of the Energy Efficiency Regulations;

L.N. 66 of 2021.

(ii) ensure that the requirements of regulation 21(1)

L.N. 66 of 2021.

of the Energy Efficiency Regulations are fulfilled; and

(iii) take into account the outcome of the cost-

benefit analysis referred to in regulation 21(2) of the L.N. 66 of 2021.

Energy Efficiency Regulations.

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

authorisations for the new construction or reconstruction of generating

capacity, shall request that the applicant has obtained any relevant

approvals and permits from other competent authorities.

(5) The permits and approvals referred to in sub-regulation (4)

shall consider the following criteria

(a) the safety and security of the electricity system,

installations and associated equipment;

(b)

the protection of public health and safety;

(c)

the protection of the environment;

(d)

land use and siting;

(e)

the use of public ground;

(f)

energy efficiency;

(g)

the nature of the primary sources;

(h)

the characteristics particular to the applicant, such as

technical, economic and financial capabilities;

(i) compliance with measures adopted pursuant to

Article 9 of the Directive;

(j) the contribution of generating capacity to meeting the

overall Union target of at least a thirty-two per cent (32%) share

of energy from renewable sources in the Union's gross final

consumption of energy in 2030 referred to in Article 3(1) of

Directive (EU) 2018/2001 of the European Parliament and of the

Council;

(k) the contribution of generating capacity to reducing

emissions;

(l) the alternatives to the construction of new generating

capacity, such as demand response solutions and energy storage;

(6) The Regulator shall publish the procedures relative to the

granting of an authorisation as in such manner as it shall determine so

as to bring it to the attention of those likely to be affected by it.

(7) An application for an authorisation under this regulation

shall be in writing and be in such form and contain such information as

the Regulator may reasonably request.

(8) An application for an authorisation shall be accompanied

by the following fees

(a) for a generating station with a capacity equal or

greater than 40kW and less than 5MW, a non-refundable fee of

two hundred euro (€200) shall apply;

(b) for a generating station with a capacity equal or

greater than 5MW, a non-refundable fee of five hundred (€500)

shall apply.

(9) An authorisation granted by the Regulator under this

regulation, shall be in writing and, unless previously revoked in

accordance with any term contained in the authorisation, shall

continue in force for such period as may be specified in the form

determined by or under the authorisation.

(10) Where the Regulator refuses to grant an authorisation

(a) the reasons for such refusal shall be objective, non-

discriminatory, well founded and duly substantiated,

(b) the applicant for the authorisation shall be notified, in

writing, by the Regulator of the reasons for the refusal, and

(c) the applicant shall have the right to appeal to the

Administrative Review Tribunal against a decision of the

Regulator in accordance with regulation 60.

(1) All final customers shall be entitled to have their Basic

electricity provided by a supplier, subject to the supplier's agreement, contractual

rights.

regardless of the Member State in which the supplier is registered,

provided that the supplier follows the applicable trading and balancing

rules

Provided that such rights shall not be exercised until such

time that the derogation under paragraph 5 of Article 66 of the

Directive applies.

(2) Final customers shall have the right to a contract with their

supplier that specifies

(a)

the identity and address of the supplier;

(b) the services provided, the service quality levels

offered, as well as the time for the initial connection;

(c)

the types of maintenance service offered;

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

applicable tariffs, maintenance charges and bundled products or

services may be obtained;

(e) the duration of the contract, the conditions for

renewal and termination of the contract and services, including

products or services that are bundled with those services, and

whether terminating the contract without charge is permitted;

(f) any compensation and the refund arrangements which

apply if contracted service quality levels are not met, including

inaccurate or delayed billing;

(g) the method of initiating an out-of-court dispute

settlement procedure in accordance with regulation 23;

(h) information relating to consumer rights, including

information on complaint handling and all of the information

referred to in this paragraph, that is clearly communicated on the

bill or the electricity undertaking's web site.

Conditions shall be fair and well known in advance. In any case,

this information shall be provided prior to the conclusion or

confirmation of the contract. Where contracts are concluded through

intermediaries, the information relating to the matters set out in this

sub-regulation shall also be provided prior to the conclusion of the

contract.

Final customers shall be provided with a summary of the key

contractual conditions in a prominent manner and in concise and

simple language.

(3)

Suppliers shall

(a) give final customers adequate notice of any intention

to modify contractual conditions and shall inform customers

about their right to terminate the contract when the notice is

given;

(b) notify their final customers, in a transparent and

comprehensible manner, directly of any adjustment in the supply

its scope, at an appropriate time no later than two weeks, or no

later than one (1) month in the case of household customers,

before the adjustment comes into effect

Provided that final customers shall be free to

terminate contracts if they do not accept the new contractual

conditions or adjustments in the supply price notified to them by

their supplier.

(4) Suppliers shall provide final 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.

(5) Suppliers shall offer final customers a wide choice of

payment methods. Such payment methods shall not unduly

discriminate between customers. Any difference in charges related to

payment methods or prepayment systems shall be objective, non-

discriminatory and proportionate and shall not exceed the direct costs

borne by the payee for the use of a specific payment method or a

prepayment system, in line with Article 62 of Directive (EU) 2015/

2366 of the European Parliament and of the Council.

(6) Pursuant to sub-regulation (5), household customers who

have access to prepayment systems shall not be placed at a

disadvantage by the prepayment systems

(7) Suppliers shall offer final customers fair and transparent

general terms and conditions, which shall be provided in plain and

unambiguous language and shall not include non-contractual barriers

to the exercise of customers’ rights, such as excessive contractual

documentation. Suppliers shall not use unfair or misleading selling

methods.

(8) Final customers shall have the right to a good standard of

service and complaint handling by their suppliers. Suppliers shall

handle complaints in a simple, fair and prompt manner.

(9) When accessing universal service under the provisions

adopted by pursuant to regulation 24, final customers shall be

informed about their rights regarding universal service.

(10) (a) Suppliers shall provide household customers with

adequate information on alternative measures to disconnection

sufficiently in advance of any planned disconnection. Such alternative

measures may refer to sources of support to avoid disconnection,

prepayment systems, energy audits, energy consultancy services,

alternative payment plans, debt management advice or disconnection

moratoria and not constitute an extra cost to the customers facing

disconnection;

(b) Suppliers shall at least establish the following alternative

measures to disconnection

(i)

alternative payment plans;

(ii)

debt management advice;

(iii)

disconnection moratoria.

(11) Suppliers shall provide final customers with a final closure

account after any switch of supplier no later than six (6) weeks after

such a switch has taken place.

(1) Final customers who have a smart meter installed can Entitlement to a

request to conclude a dynamic electricity price contract with at least dynamic

electricity price

one supplier and with every supplier that has more than two hundred contract.

thousand (200,000) final customers.

(2) Suppliers shall keep final customers fully informed of the

opportunities, costs and risks of such dynamic electricity price

contracts and shall provide information to the final customers,

accordingly, including with regard to the need to have an adequate

electricity meter installed.

The Regulator shall monitor the market developments and assess

the risks that the new products and services may entail and deal with

abusive practices.

(3) Suppliers shall obtain each final customer's consent before

that customer is switched to a dynamic electricity price contract.

(4) For at least a ten-year period after dynamic electricity price

contracts become available, the Regulator shall monitor, and shall

publish an annual report on the main developments of such contracts,

including market offers and the impact on consumers' bills, and

specifically the level of price volatility.

(5) This regulation shall not apply until such time that a spot or

intra-day market is developed in Malta.

(1) Switching supplier or market participant engaged in

aggregation shall be carried out within the shortest possible time.

A customer wishing to switch suppliers or market participants

engaged in aggregation, while respecting contractual conditions, is

entitled to such a switch within a maximum of three (3) weeks from

the date of the request. By no later than 2026, the technical process of

switching supplier shall take no longer than twenty-four (24) hours and

shall be possible on any working day

Provided that the right to switch supplier shall not be

exercised until such time that the derogation under paragraph 5 of

Article 66 of the Directive applies.

(2) Suppliers and market participant shall not charge any

switching-related fees to household customers and small enterprises;

(3) By way of derogation from sub-regulation (2), suppliers or

market participants engaged in aggregation may charge customers

contract termination fees where those customers voluntarily terminate

fixed-term, fixed-price electricity supply contracts before their

maturity

Provided that such fees are part of a contract that the

customer has voluntarily entered into and that such fees are clearly

communicated to the customer before the contract is entered into

Provided further that, such fees shall be proportionate and

shall not exceed the direct economic loss to the supplier or the market

participant engaged in aggregation resulting from the customer's

termination of the contract, including the costs of any bundled

investments or services that have already been provided to the

customer as part of the contract. The burden of proving the direct

economic loss shall be on the supplier or market participant engaged in

aggregation, and the permissibility of contract termination fees shall

be monitored by the Regulator.

(4) Customers shall have the right to switch supplier or market

participants engaged in aggregation in a non-discriminatory manner as

regards cost, effort and time

Provided that the right to switch supplier shall not be

exercised until such time that the derogation under paragraph 5 of

Article 66 of the Directive applies.

(5) Household customers shall be entitled to participate in

collective switching schemes

Provided that the right to switch supplier shall not be

exercised until such time that the derogation under paragraph 5 of

Article 66 of the Directive applies.

(1) All customers shall be free to purchase and sell Aggregation

electricity services, including aggregation, other than supply, contract.

independently from their electricity supply contract and from an

electricity undertaking of their choice

Provided that such rights shall not be exercised until such

time that the derogations from paragraphs 3 and 5 under Article 66 of

the Directive apply. This shall be without prejudice to the right of

customers to sell electricity services, including aggregation to the

DSO.

(2) Where a final customer wishes to conclude an aggregation

contract, the final customer is entitled to do so without the consent of

the final customer's electricity undertakings.

Market participants engaged in aggregation shall fully inform

customers of the terms and conditions of the contracts that they offer to

them.

(3) Final customers shall be entitled to receive all relevant

demand response data or data on supplied and sold electricity free of

charge at least once every billing period if requested by the customer.

(4) Final customers shall be able to exercise rights referred to

in sub-regulations (2) and (3) in a non-discriminatory manner as

regards cost, effort or time. In particular, customers shall not be

subject to discriminatory technical and administrative requirements,

procedures or charges by their supplier on the basis of whether they

have a contract with a market participant engaged in aggregation.

(1) Household customers, and microenterprises with an

expected yearly consumption of below 100,000 kWh, shall have

access, free of charge, to at least one tool comparing the offers of

suppliers, including offers for dynamic electricity price contracts.

Customers shall be informed of the availability of such tools in or

together with their bills or by other means.

The tools shall meet at least the following requirements

(a) they shall be independent from market participants

and ensure that electricity undertakings are given equal treatment

in search results;

(b) they shall clearly disclose their owners and the

natural or legal person operating and controlling the tools, as

well as information on how the tools are financed;

(c) they shall set out clear and objective criteria on which

the comparison is to be based, including services, and disclose

them;

(d)

they shall use plain and unambiguous language;

(e) they shall provide accurate and

up-to-date

information and state the time of the last update;

(f) they shall be accessible to persons with disabilities,

by being perceivable, operable, understandable and robust;

(g) they shall provide an effective procedure for

reporting incorrect information on published offers; and

(h) they shall perform comparisons, while limiting the

personal data requested to that strictly necessary for the

comparison.

The Regulator shall ensure that at least one tool covers the entire

market. Where multiple tools cover the market, those tools shall

include, as complete as practicable, a range of electricity offers

covering a significant part of the market and, where those tools do not

completely cover the market, a clear statement to that effect, before

displaying results.

(2) The tools referred to in sub-regulation (1) may be operated

by any entity, including private companies and public authorities or

bodies.

(3) The Regulator shall be responsible for issuing trust marks

for comparison tools that meet the requirements set out in sub-

regulation (1), and for ensuring that comparison tools bearing a trust

mark continue to meet the requirements set out in sub-regulation (1)

Provided that the issue of trust mark shall not be required

when the comparison tool is provided by a public authority or body

and when such comparison meets the requirements set out in sub-

regulation (1).

(4) Any tool comparing the offers of market participants shall

be eligible to apply for a trust mark in accordance with this regulation

on a voluntary and non-discriminatory basis.

(1) Final customers shall be entitled to act as active Active

customers without being subject to disproportionate or discriminatory customers.

technical requirements, administrative requirements, procedures and

charges, and to network charges that are not cost-reflective.

(2)

(a)

Active customers shall have the right to

(i)

operate either directly or through aggregation;

(ii) sell self-generated electricity, including through

power purchase agreements;

(iii) participate in flexibility schemes and energy

efficiency schemes;

(iv) delegate to a third party the management of the

installations required for their activities, including

installation, operation, data handling and maintenance,

without that third party being considered to be an active

customer;

(b)

Active customers shall be

(i) subject to cost-reflective, transparent and non-

discriminatory network charges that account separately for

the electricity fed into the grid and the electricity consumed

from the grid, in accordance with regulation 47(6) and

Article 18 of Regulation (EU) 2019/943, ensuring that they

contribute in an adequate and balanced way to the overall

cost sharing of the system;

(ii) financially responsible for the imbalances they

cause in the electricity system; to that extent they shall be

balance responsible parties or shall delegate their balancing

responsibility in accordance with Article 5 of Regulation

(EU) 2019/943

Provided that until such time that a liquid intraday market

is developed the DSO shall bear the balancing responsibility.

(3) Existing schemes that do not account separately for the

electricity fed into the grid and the electricity consumed from the grid,

shall not grant new rights under such schemes after 31 st December

2023. In any event, customers subject to existing schemes shall have

the possibility at any time to opt for a new scheme that accounts

separately for the electricity fed into the grid and the electricity

consumed from the grid as the basis for calculating network charges.

(4)

Active customers that own an energy storage facility

(a) shall have the right to a grid connection within a

reasonable time after the request, provided that all necessary

conditions, such as balancing responsibility and adequate

metering, are fulfilled;

(b) shall not be subject to any double charges, including

network charges, for stored electricity remaining within their

premises or when providing flexibility services to system

operators;

(c) are not subject

to

disproportionate

licensing

requirements or fees;

(d) may provide several services simultaneously, if

technically feasible.

(1) The Minister shall provide an enabling regulatory

framework for citizen energy communities ensuring that

(a) participation in a citizen energy community shall be

open and voluntary.

(b) members or shareholders of a citizen energy

community shall be entitled to leave the community, in which

case regulation 9 shall apply.

(c) members or shareholders of a citizen energy

community shall not lose their rights and obligations as

household customers or active customers.

(d) subject to fair compensation as assessed by the

Regulator, relevant distribution system operators shall cooperate

with citizen energy communities to facilitate electricity transfers

within citizen energy communities.

(e) citizen energy communities shall be subject to non-

discriminatory, fair, proportionate and transparent procedures

and charges, including with respect to registration and licensing,

and to transparent, non-discriminatory and cost- reflective

network charges in accordance with Article 18 of Regulation

(EU) 2019/943, ensuring that they contribute in an adequate and

balanced way to the overall cost sharing of the system.

(2) The Minister may provide in the enabling regulatory

framework that citizen energy communities

(a)

shall be open to cross-border participation;

(b) shall be entitled to own, establish, purchase or lease

distribution networks and to autonomously manage them subject

to conditions set out in sub-regulation (4);

(c) shall be subject to the exemptions provided for in

regulation 35(2).

(3)

Citizen energy communities shall be

(a) able to access all electricity markets, either directly or

through aggregation, in a non-discriminatory manner;

(b) treated in a non-discriminatory and proportionate

manner with regard to their activities, rights and obligations as

final customers, producers, suppliers, distribution system

operators or market participants engaged in aggregation;

(c) financially responsible for the imbalances they cause

in the electricity system, to that extent they shall be balance

responsible parties or shall delegate their balancing

responsibility in accordance with Article 5 of Regulation (EU)

2019/943

Provided that until such time that a liquid intraday

market is developed the DSO shall be delegated with the

balancing responsibility;

(d) with regard to consumption of self-generated

electricity, citizen energy communities shall be treated like

active customers in accordance with regulation 12(2)(b)(i);

(e)

may arrange within the citizen energy community the

sharing of electricity that is produced by the production units

owned by the community, subject to other requirements laid

down in this regulation and subject to the community members

retaining their rights and obligations as final customers.

For the purposes of paragraph (e), where electricity is shared, this

shall be without prejudice to applicable network charges, tariffs and

levies, in accordance with a transparent cost-benefit analysis of

distributed energy resources developed by the competent national

authority

Provided that the aforesaid sharing of electricity shall not

be carried out until such time that the derogation under paragraph 5 of

Article 66 of the Directive applies.

(4) The Minister may decide to grant citizen energy

communities the right to manage distribution networks in their area of

operation and establish the relevant procedures, without prejudice to

Chapter IV of the Directive or to other rules and regulations applying

to distribution system operators. If such a right is granted, citizen

energy communities shall

(a) be entitled to conclude an agreement on the operation

of their network with the relevant distribution system operator or

transmission system operator to which their network is

connected;

(b) be subject to appropriate network charges at the

connection points between their network and the distribution

network outside the citizen energy community and that such

network charges account separately for the electricity fed into

the distribution network and the electricity consumed from the

distribution network outside the citizen energy community in

accordance with regulation 47(4);

(c) not discriminate or harm customers who remain

connected to the distribution system.

(1) Final customers shall have the right to participate in

demand response through aggregation. Final customers, including

those offering demand response through aggregation, may participate

alongside producers in a non-discriminatory manner to provide

demand response services.

(2) Transmission system operators and distribution system

operators, when procuring ancillary services, shall treat market

participants engaged in the aggregation of demand response in a non-

discriminatory manner alongside producers on the basis of their

technical capabilities.

(3) (a) (i) Each market participant engaged in aggregation,

including independent aggregators, may enter electricity markets

without the consent of other market participants;

(ii) market participants engaged in aggregation

shall be financially responsible for the imbalances that they

cause in the electricity system; to that extent they shall be

balance responsible parties or shall delegate their balancing

responsibility in accordance with Article 5 of Regulation

(EU) 2019/943

Provided that until such time that a liquid

intraday market is developed the DSO shall be delegated

with the balancing responsibility.

(b) Final customers who have a contract with independent

aggregators shall not be subject to undue payments, penalties or other

undue contractual restrictions by their suppliers;

(c) The provisions of the Dispute Resolution (Procedures)

Regulations shall mutatis mutandis apply to disputes between market

participants engaged in aggregation and other market participants,

including responsibility for imbalances.

(4) (a) Transmission system operators and, or distribution

system operators, acting in close cooperation with market participants

and final customers, shall establish the technical requirements for

participation of demand response in all electricity markets on the basis

of the technical characteristics of those markets and the capabilities of

demand response. Such requirements shall cover participation

involving aggregated loads.

(b) The technical requirements referred to paragraph (a) shall

be subject to public consultation and thereafter to the approval of the

Regulator.

(5) The DSO shall make known the demand response services

that may be provided by final customers and all market participants.

(1) Bills and billing information shall be accurate, easy to Bills and billing

understand, clear, concise, user- friendly and presented in a manner information.

that facilitates comparison by final customers. On request, final

customers shall receive a clear and understandable explanation of how

their bill was derived, especially where bills are not based on actual

consumption.

(2) Final customers shall receive all their bills and billing

information free of charge.

(3) Final customers shall be offered the option of electronic

bills and billing information and shall be offered flexible arrangements

for the actual payment of the bills.

(4) If the contract provides for a future change of the product

or price, or a discount, this shall be indicated on the bill together with

the date on which the change takes place.

(5) Any changes to the requirements for the content of bills

shall be subject to consultation with consumer organisations.

(6) Bills and billing information shall fulfil the minimum

requirements set out in the First Schedule.

(1) The Minister shall assign responsibility for installing

smart meters to a distribution system operator. The distribution system

operator shall deploy smart metering systems that assist the active

participation of customers in the electricity market

Provided that such deployment may be subject to a cost-

benefit assessment, if the Minister so directs, which shall be

undertaken by the distribution system operator in accordance with the

principles laid down in the Second Schedule.

(2) The Regulator shall adopt and publish the minimum

functional and technical requirements for the smart metering systems

to be deployed, in accordance with regulation 17 and the Second

Schedule. In establishing such minimum requirements, the Regulator

shall ensure the interoperability of those smart metering systems, as

well as their ability to provide output for consumer energy

management systems. In that respect, the Regulator shall have due

regard to the use of the relevant available standards, including those

enabling interoperability, to best practices and to the importance of the

development of smart grids and the development of the internal market

for electricity.

(3) Final customers shall contribute to the associated costs of

the deployment of smart metering systems in a transparent and non-

discriminatory manner. The establishment of the contribution made by

customers should take into account the long-term benefits to the whole

value chain. The Regulator shall regularly monitor such deployment to

track the delivery of benefits to consumers.

(4) Where the deployment of smart metering systems has been

negatively assessed as a result of the cost-benefit assessment referred

to in sub-regulation (1), the distribution system operator shall revise

this assessment at least every four years, or more frequently, in

response to significant changes in the underlying assumptions and in

response to technological and market developments. The Minister

shall notify to the Commission the outcome of the updated cost-benefit

assessment as it becomes available.

(5) The provisions in these regulations concerning smart

metering systems shall apply to future installations and to installations

that replace older smart meters. Smart metering systems that have

already been installed, or for which the ‘start of works’ began, before

the 4 th July 2019, may remain in operation over their lifetime but, in

the case of smart metering systems that do not meet the requirements

of regulation 17 and the Second Schedule, shall not remain in

operation after the 5 th July 2031.

For the purpose of this sub-regulation, "start of works" means

either the start of construction works on the investment or the first firm

commitment to order equipment or other commitment that makes the

investment irreversible, whichever is the first in time. Buying of land

and preparatory works such as obtaining permits and conducting

preliminary feasibility studies are not considered as start of works. For

take-overs, ‘start of works’ means the moment of acquiring the assets

directly linked to the acquired establishment.

Where the deployment of smart metering systems is Functionalities

positively assessed as a result of the cost-benefit assessment referred of

metering

to in regulation 16(1), or where smart metering systems are systems.

systematically deployed after 4 th July 2019, smart metering systems

shall be deployed in accordance with European standards, the Second

Schedule and the following requirements

(a) the smart metering systems shall accurately measure

actual electricity consumption and shall be capable of providing

to final customers information on actual time of use. Validated

historical consumption data shall be made easily and securely

available and visualised to final customers on request and at no

additional cost. Non-validated near real-time consumption data

shall also be made easily and securely available to final

customers at no additional cost, through a standardised interface

or through remote access, in order to support automated energy

efficiency programmes, demand response and other services;

(b) the security of the smart metering systems and data

communication shall comply with relevant Union security rules,

having due regard of the best available techniques for ensuring

the highest level of cybersecurity protection while bearing in

mind the costs and the principle of proportionality;

(c) the privacy of final customers and the protection of

their data shall comply with relevant Union data protection and

privacy rules;

(d) meter operators shall ensure that the meters of active

customers who feed electricity into the grid can account for

electricity fed into the grid from the active customers' premises;

(e) if final customers request it, data on the electricity

they fed into the grid and their electricity consumption data shall

be made available to them, in accordance with the implementing

acts adopted pursuant to Article 24 of the Directive, through a

standardised communication interface or through remote access,

or to a third party acting on their behalf, in an easily

understandable format allowing them to compare offers on a

like-for-like basis;

(f) appropriate advice and information shall be given to

final customers prior to or at the time of installation of smart

meters, in particular concerning their full potential with regard to

the management of meter reading and the monitoring of energy

consumption, and concerning the collection and processing of

personal data in accordance with the applicable Union data

protection rules;

(g) smart metering systems shall enable final customers

to be metered and settled at the same time resolution as the

imbalance settlement period in the national market.

For the purposes of paragraph (e), it shall be possible for final

customers to retrieve their metering data or transmit them to another

party at no additional cost and in accordance with their right to data

portability under Union data protection rules.

(1) Where the deployment of smart metering systems has

been negatively assessed as a result of the cost-benefit assessment

referred to in regulation 16(1) and where smart metering systems are

not systematically deployed, every final customer shall be entitled on

request, while bearing the associated costs, to have installed or, where

applicable, to have upgraded, under fair, reasonable and cost-effective

conditions, a smart meter that

(a) is equipped, where technically feasible, with the

functionalities referred to in regulation 17, or with a minimum

set of functionalities to be defined and at national level in

accordance with the Second Schedule;

(b) is interoperable and able to deliver the desired

connectivity of the metering infrastructure with consumer energy

management systems in near real-time.

(2) In the context of a customer request for a smart meter

pursuant to sub-regulation (1), the distribution system operator shall

(a) ensure that the offer to the final customer requesting

the installation of a smart meter explicitly states and clearly

describes

(i) the functions and interoperability that can be

supported by the smart meter and the services that are

feasible as well as the benefits that can be realistically

attained by having that smart meter at that moment in time;

(ii) any associated costs to be borne by the final

customer.

(b) ensure that it is installed within a reasonable time, no

later than four (4) months after the customer's request;

(c) regularly, and at least every two (2) years, review and

make publicly available the associated costs, and trace the

evolution of those costs as a result of technology developments

and potential metering system upgrades.

(1) Where final customers do not have smart meters, Conventional

final customers shall be provided by the distribution system operator meters.

with individual conventional meters that accurately measure their

actual consumption.

(2) The distribution system operator shall ensure that final

customers are able to easily read their conventional meters, either

directly or indirectly through an online interface or through another

appropriate interface.

(1) When laying down the rules regarding the Data

management and exchange of data, the Regulator shall specify the management.

rules on the access to data of the final customer by eligible parties in

accordance with this regulation and the applicable Union legal

framework. For the purpose of these regulations, data shall be

understood to include metering and consumption data as well as data

required for customer switching, demand response and other services.

(2) The Regulator shall organise the management of data in

order to ensure efficient and secure data access and exchange, as well

as data protection and data security.

Independently of the data management model applied, the parties

responsible for data management shall provide access to the data of the

final customer to any eligible party, in accordance with sub-regulation

(1). Eligible parties shall have the requested data at their disposal in a

non-discriminatory manner and simultaneously. Access to data shall be

easy and the relevant procedures for obtaining access to data shall be

made publicly available.

(3) The rules on access to data and data storage for the purpose

of these regulations shall comply with the relevant Union law.

The processing of personal data within the framework of these

regulations shall be carried out in accordance with Regulation (EU)

2016/679.

(4) The Regulator shall authorise and certify or, where

applicable, supervise the parties responsible for the data management,

in order to ensure that they comply with the requirements of these

regulations.

Without prejudice to the tasks of the data protection officers

under Regulation (EU) 2016/679, parties responsible for data

management shall appoint compliance officers who are to be

responsible for monitoring the implementation of measures taken by

those parties to ensure non-discriminatory access to data and

compliance with the requirements of these regulations.

(5) No additional costs shall be charged to final customers for

access to their data or for a request to make their data available.

Parties responsible for data management shall be responsible for

setting the relevant charges for access to data by eligible parties.

The Regulator shall ensure that any charges imposed by

regulated entities that provide data services are reasonable and duly

justified.

Electricity undertakings shall apply the interoperability

requirements and procedures for access to data referred to in paragraph

2 of Article 24 of the Directive. Those requirements and procedures

shall be based on existing national practices.

The Regulator shall act as a single point of contact, to

provide customers with all necessary information concerning their

rights, the applicable law and dispute settlement mechanisms available

to them in the event of a dispute

Provided that this shall be without prejudice to the

establishment of other single points of contact which may be part of

general consumer information points.

(1) Final customers shall have access to simple, fair, Right to out-of-

transparent, independent, effective and efficient out-of-court court

settlement.

mechanisms for the settlement of disputes concerning rights and

obligations established under these regulations and provided by the

Regulator.

(2) Where the final customer referred to in sub-regulation (1) is

a consumer within the meaning of Directive 2013/11/EU of the

European Parliament and of the Council, the out-of-court dispute

settlement mechanisms shall comply with the quality requirements of

Directive 2013/11/EU.

(3) When settling a dispute in the cases referred to in sub-

regulation (2), the Regulator may, where warranted, decide for

reimbursement and compensation.

(4) Alternative dispute resolution entities shall cooperate to

provide simple, fair, transparent, independent, effective and efficient

out-of-court dispute settlement mechanisms for any dispute that arises

from products or services that are tied to, or bundled with, any product

or service falling under the scope of these regulations.

(5) Electricity undertakings shall participate mandatorily in the

out-of-court dispute settlement for household customers which is

provided by the Regulator.

(1) All household customer and small enterprises, shall Universal

enjoy universal service, namely the right to be supplied with electricity service.

of a specified quality within their territory at competitive, easily and

clearly comparable, transparent and non-discriminatory prices.

(2) Distribution system operators shall be obliged to connect

customers to their network under terms, conditions and tariffs set in

accordance with the procedure laid down in regulation 47(4).

(1) Vulnerable customer for the purposes of these Vulnerable

regulations means energy poor customers which includes customers customers.

with low income levels and for whom the share of energy expenditure

is a significant part of disposable income. Vulnerable customers shall

also be customers who are critically dependent on electrical equipment

for health reasons or other criteria determined by the Minister

responsible for social policy.

(2) The disconnection of electricity to vulnerable customers in

critical times is prohibited.

The Minister responsible for social policy shall establish

and publish a set of criteria for the assessment of the number of

households in energy poverty, which may include low income, high

expenditure of disposable income on energy and poor energy

efficiency.

Enemalta plc is designated the distribution system operator

in Malta.

(1) The distribution system operator shall be responsible

for ensuring the long-term ability of the system to meet reasonable

demands for the distribution of electricity, for operating, maintaining

and developing under economic conditions a secure, reliable and

efficient electricity distribution system in Malta with due regard for

the environment and energy efficiency.

(2) In any event, the distribution system operator shall not

discriminate between system users or classes of system users,

particularly in favour of its related undertakings.

(3) The distribution system operator shall provide system users

with the information they need for efficient access to, including use of,

the system.

(4) The distribution system operator, when dispatching

generating installations shall give priority to generating installations

using renewable sources or using high-efficiency cogeneration, in

accordance with Article 12 of Regulation (EU) 2019/943

Provided that priority dispatch shall continue to apply for

all intermittent renewable energy sources and high-efficiency

cogeneration until such time that a liquid intra-day wholesale market is

developed.

(5) Each distribution system operator shall act as a neutral

market facilitator in procuring the energy it uses to cover energy losses

in its system in accordance with transparent, non-discriminatory and

market-based procedures, whenever it has such a function.

(6) The distribution system operator shall be responsible for

the procurement of products and services necessary for the efficient,

reliable and secure operation of the distribution system. The rules

adopted by the distribution system operator for that purpose shall be

objective, transparent and non-discriminatory, and shall be developed

in coordination with transmission system operators and other relevant

market participants. The terms and conditions, including rules and

tariffs, where applicable, for the provision of such products and

services to distribution system operators shall be established in

accordance with regulation 47(4) in a non-discriminatory and cost-

reflective way and shall be published.

(7) In performing the tasks referred to in sub-regulation (6), the

distribution system operator shall procure the non- frequency ancillary

services needed for its system in accordance with transparent, non-

discriminatory and market-based procedures, unless the Regulator has

assessed that the market-based provision of non-frequency ancillary

services is economically not efficient and has granted a derogation.

The obligation to procure non-frequency ancillary services does not

apply to fully integrated network components.

(8) The procurement of the products and services referred to in

sub-regulation (6) shall ensure the effective participation of all

qualified market participants, including market participants offering

energy from renewable sources, market participants engaged in

demand response, operators of energy storage facilities and market

participants engaged in aggregation. In particular, the Regulator and

the distribution system operator, in close cooperation with all market

participants, as well as transmission system operators, shall establish

the technical requirements for participation in those markets on the

basis of the technical characteristics of those markets and the

capabilities of all market participants.

(9) The distribution system operator shall cooperate with

transmission system operators for the effective participation of market

participants connected to their grid in retail, wholesale and balancing

markets. Delivery of balancing services stemming from resources

located in the distribution system shall be agreed with the relevant

transmission system operator in accordance with Article 57 of

Regulation (EU) 2019/943 and Article 182 of Commission Regulation

(EU) 2017/1485.

(10) The distribution system operators may perform activities

other than those provided for in these regulations and in Regulation

(EU) 2019/943, where such activities are necessary for the distribution

system operators to fulfil their obligations under these regulations or

Regulation (EU) 2019/943, provided that the Regulator has assessed

the necessity of such a derogation. This sub-regulation shall be without

prejudice to the right of the distribution system operator to own,

develop, manage or operate networks other than electricity networks

where the distribution system operator has been granted such a right.

(1) Within such time specified by the Regulator and Technical rules.

following such consultation processes as the Regulator may direct to

be made, the distribution system operator shall prepare, keep updated

and publish a "network code", and subject to the approval of the

Regulator, defining the technical safety criteria and the technical rules

establishing the minimum technical design and operational

requirements for the connection to the system of

(a)

generating installations;

(b)

energy storage;

(c)

distribution systems;

(d)

directly connected consumers’ equipment;

(e)

interconnector circuits;

(f)

direct lines; and

(g)

renewable and citizen energy communities.

(2) The network code shall set the minimum operational rules

and obligations on network security and foreseeable circumstances in

which security shall be maintained. The network code shall ensure the

interoperability of systems and shall be objective and non-

discriminatory. The network code shall be notified in accordance with

the Notification Procedure Regulations. The Regulator 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.

(1) The Minister shall provide the necessary regulatory

framework to allow and provide incentives to the distribution system

operators to procure flexibility services, including congestion

management in Malta, in order to improve efficiencies in the operation

and development of the distribution system. In particular, distribution

system operators may procure such services from providers of

distributed generation, demand response or energy storage and make

use of energy efficiency measures, where such services cost-

effectively alleviate the need to upgrade or replace electricity capacity

and support the efficient and secure operation of the distribution

system.

(2) Distribution system operators shall procure the services

referred to sub-regulation (1) in accordance with transparent, non-

discriminatory and market-based procedures unless the Regulator has

established that the procurement of such services is not economically

efficient or that such procurement would lead to severe market

distortions or to higher congestion

Provided that where market-based procedures are not

possible the distribution system operator may procure flexibility by

offering connection agreements to users of the network and/or propose

network tariffs designed to encourage network users to alter their

behaviour for a more efficient use of the distribution network.

(3) (a

The distribution system operator, subject to the

approval of the Regulator, shall, in a transparent and participatory

process that includes all relevant system users and transmission system

operators, establish the specifications for the flexibility services

procured and, where appropriate, standardised market products for

such services at least at national level;

(b) The specifications shall ensure the effective and non-

discriminatory participation of all market participants, including

market participants offering energy from renewable sources, market

participants engaged in demand response, operators of energy storage

facilities and market participants engaged in aggregation;

(c) Distribution system operators shall exchange all necessary

information and shall coordinate with transmission system operators in

order to ensure the optimal utilisation of resources, to ensure the

secure and efficient operation of the system and to facilitate market

development

Provided that the distribution system operator shall be

adequately remunerated for the procurement of such services to allow

it to recover at least its reasonable corresponding costs, including the

necessary information and communication technology expenses and

infrastructure costs.

(4) (a) The development of a distribution system shall be

based on a transparent network development plan that the distribution

system operator shall publish at least every two (2) years and shall

submit to the Regulator.

(b) The network development plan shall provide transparency

on the medium and long-term flexibility services needed, and shall set

out the planned investments for the next five-to-ten years, with

particular emphasis on the main distribution infrastructure which is

required in order to connect new generation capacity and new loads,

including recharging points for electric vehicles. The network

development plan shall also include the use of demand response,

energy efficiency, energy storage facilities or other resources that the

distribution system operator is to use as an alternative to system

expansion.

(5) (a) The distribution system operator shall consult all

relevant system users and the relevant transmission system operators

on the network development plan.

(b) The distribution system operator shall publish the results of

the consultation process along with the network development plan and

submit the results of the consultation and the network development

plan to the Regulator. The Regulator may request for amendments to

be made to the plan.

(1) The distribution system operator shall cooperate on a

non-discriminatory basis with any undertaking that owns, develops,

operates or manages recharging points for electric vehicles, including

with regard to connection to the grid.

(2) Distribution system operators shall not own, develop,

manage or operate recharging points for electric vehicles, except

where distribution system operators own private recharging points

solely for their own use.

(3) By way of derogation from sub-regulation (2), distribution

system operators shall be allowed to own, develop, manage or operate

recharging points for electric vehicles, provided that all of the

following conditions are fulfilled

(a) other parties, following an open transparent and non-

discriminatory tendering procedure that is subject to review and

approval by the Regulator, have not been awarded a right to own,

develop, manage or operate recharging points for electric

vehicles, or could not deliver those services at a reasonable cost

and in a timely manner;

(b) the Regulator has carried out an ex ante review of the

conditions of the tendering procedure under paragraph (a) and

has granted its approval;

(c) the distribution system operator operates the

recharging points on the basis of third-party access in accordance

with Article 6 and does not discriminate between system users or

classes of system users, and in particular in favour of its related

undertakings.

The Regulator may draw up guidelines or procurement clauses to

help distribution system operators ensure a fair tendering procedure.

(4) Where the conditions under sub-regulation (3) have been

implemented the designated competent authority in terms of the

Alternative Fuels Order shall perform, at regular intervals or at least

every five (5) years, a public consultation in order to re-assess the

potential interest of other parties in owning, developing, operating or

managing recharging points for electric vehicles. Where the public

consultation indicates that other parties are able to own, develop,

operate or manage such points, the distribution system operators'

activities in this regard shall be phased-out, subject to the successful

completion of the tendering procedure referred to in paragraph (a) of

sub-regulation (3). As part of the conditions of that procedure, the

Regulator may allow the distribution system operator to recover the

residual value of its investment in recharging infrastructure.

(1) The distribution system operator which is assigned Tasks of

the responsibility referred to under regulation 27 by the Minister shall distribution

system

give all eligible parties non-discriminatory access to data under clear operators

management.

and equal terms, in accordance with the relevant data protection rules.

(2) The distribution system operator when involved in the data

management in particular in relation to smart metering systems shall

not have privileged access to data for the conduct of its supply

activities which is not available to all eligible parties.

(3) Where smart metering systems have been deployed in

accordance with regulation 16 and where distribution system operator

is involved in data management, the compliance programmes referred

to in point (d) of Article 35(2) of the Directive shall include specific

measures in order to exclude discriminatory access to data from

eligible parties as provided for in regulation 20.

(4) Where distribution system operators are not subject to the

requirements of Article 35 of the Directive, vertically integrated

undertakings shall not have privileged access to data for the conduct of

their supply activities.

(1) Distribution system operators shall not own, develop, Ownership of

energy storage

manage or operate energy storage facilities.

facilities by

distribution

system

(2) By way of derogation from sub-regulation (1), distribution operators.

system operators may own, develop, manage or operate energy storage

facilities, where they are fully integrated network components and the

Regulator has granted its approval, or where all of the following

conditions are fulfilled

(a) other parties, following an open, transparent and non-

discriminatory tendering procedure that is subject to review and

approval by the Regulator, have not been awarded a right to own,

develop, manage or operate such facilities, or could not deliver

those services at a reasonable cost and in a timely manner;

(b) such facilities are necessary for the distribution

system operators to fulfil their obligations under these

regulations for the efficient, reliable and secure operation of the

distribution system and the facilities are not used to buy or sell

electricity in the electricity markets; and

(c) the Regulator has assessed the necessity of such a

derogation and has carried out an assessment of the tendering

procedure, including the conditions of the tendering procedure,

and has granted its approval.

The Regulator may draw up guidelines or procurement clauses to

help distribution system operators ensure a fair tendering procedure.

(3) The Regulator shall perform, at regular intervals or at least

every five (5) years, a public consultation on the existing energy

storage facilities in order to assess the potential availability and

interest in investing in such facilities. Where the public consultation,

as assessed by the Regulator, indicates that third parties are able to

own, develop, operate or manage such facilities in a cost-effective

manner, the Regulator, shall ensure that the distribution system

operators' activities in this regard are phased out within eighteen (18)

months. As part of the conditions of that procedure, the Regulator, may

allow the distribution system operators to receive reasonable

compensation, in particular to recover the residual value of their

investment in the energy storage facilities.

(4) Sub-regulation (3) shall not apply to fully integrated

network components or for the usual depreciation period of new

battery storage facilities with a final investment decision until 4 th July

2019, provided that such battery storage facilities are

(a) connected to the grid at the latest two (2) years

thereafter;

(b)

integrated into the distribution system;

(c) used only for the reactive instantaneous restoration of

network security in the case of network contingencies where

such restoration measure starts immediately and ends when

regular re-dispatch can solve the issue; and

(d) not used to buy or sell electricity in the electricity

markets, including balancing.

Without prejudice to regulation 44 or another legal Confidentiality

requirement to disclose information, the distribution system operator obligation

distribution

shall preserve the confidentiality of commercially sensitive system

operators.

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) The Regulator may classify a system which Closed

distributes electricity within a geographically confined industrial, distribution

systems.

commercial, residential or shared services site and does not, without

prejudice to sub-regulation (3), supply household customers, as a

closed distribution system if

(a) for specific technical or safety reasons, the operations

or the production process of the users of that system are

integrated; or

(b) that system distributes electricity primarily to the

owner or operator of the system or their related undertakings.

(2) Closed distribution systems shall be considered to be

distribution systems for the purposes of these regulations. The

Regulator may exempt the operator of a closed distribution system

from

(a) the requirement under sub-regulations (5) and (7) of

regulation 28 to procure the energy it uses to cover energy losses

and the non- frequency ancillary services in its system in

accordance with transparent, non-discriminatory and market-

based procedures;

(b) the requirement under Article 6(1) of the Directive

that tariffs, or the methodologies underlying their calculation, are

approved in accordance with regulation 47(4) prior to their entry

into force;

(c) the requirements under regulation 30(1) to procure

flexibility services and under regulation 30(3) to develop the

operator's system on the basis of network development plans;

(d) the requirement under regulation 31(2) not to own,

develop, manage or operate recharging points for electric

vehicles; and

(e) the requirement under regulation 33(1) not to own,

develop, manage or operate energy storage facilities.

(3) Where an exemption is granted under sub-regulation (2),

the applicable tariffs, or the methodologies underlying their

calculation, shall be reviewed and approved in accordance with

regulation 47(1) upon request by a user of the closed distribution

system.

(4) Incidental use by a small number of households with

employment or similar associations with the owner of the distribution

system and located within the area served by a closed distribution

system shall not preclude an exemption under sub-regulation (2) being

granted.

(1) Each

transmission

system

operator

shall

be

responsible for

(a) ensuring the long-term ability of the system to meet

reasonable demands for the transmission of electricity, operating,

maintaining and developing under economic conditions secure,

reliable and efficient transmission system with due regard to the

environment, in close cooperation with neighbouring

transmission system operators and distribution system operators;

(b)

ensuring adequate means to meet its obligations;

(c) contributing to security of supply through adequate

transmission capacity and system reliability;

(d) managing electricity flows on the system, taking into

account exchanges with other interconnected systems. To that

end, the transmission system 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, including those provided by demand response

and energy storage facilities, insofar as such availability is

independent from any other transmission systems with which its

system is interconnected;

(e) providing to the operator of other systems with which

its system is interconnected sufficient information to ensure the

secure and efficient operation, coordinated development and

interoperability of the interconnected system;

(f) ensuring non-discrimination as between system users

or classes of system users, particularly in favour of its related

undertakings;

(g) providing system users with the information they

need for efficient access to the system;

(h) collecting congestion rents and payments under the

inter-transmission system operator compensation mechanism, in

accordance with Article 49 of Regulation (EU) 2019/943,

granting and managing third-party access and giving reasoned

explanations when it denies such access, which shall be

monitored by the regulatory authorities; in carrying out their

tasks under this regulation, transmission system operators shall

primarily facilitate market integration;

(i)

procuring ancillary services to ensure operational

security;

(j) adopting a framework for cooperation

and

coordination between the regional coordination centres;

(k) participating in the establishment of the European and

national resource adequacy assessments pursuant to Chapter IV

of Regulation (EU) 2019/943;

(l)

the digitalisation of transmission systems;

(m) data management, including the development of data

management systems, cybersecurity and data protection, subject

to the applicable rules, and without prejudice to the competence

of other authorities.

(2) In addition to the task in sub-regulation (1) the activity of

electricity transmission shall include at least the following tasks

(a) the representation of the transmission system operator

and contacts to third parties and the regulatory authorities;

(b) the representation of the transmission system operator

within the ENTSO for Electricity;

(c) granting and managing third-party access on a non-

discriminatory basis between system users or classes of system

users;

(d) the collection of all the transmission system related

charges including access charges, energy for losses and ancillary

services charges;

(e) the operation, maintenance and development of a

secure, efficient and economic transmission system;

(f) investment planning ensuring the long-term ability of

the system to meet reasonable demand and guaranteeing security

of supply;

(g) the setting up of appropriate joint ventures, including

with one or more transmission system operators, power

exchanges, and the other relevant actors pursuing the objectives

to develop the creation of regional markets or to facilitate the

liberalisation process; and

(h) all corporate services, including legal services,

accountancy and IT services.

(3) In performing the tasks referred to in sub-regulation (1),

transmission system operators shall take into account the

recommendations issued by the regional coordination centres.

(4) In performing the task referred to in paragraph (i) of sub-

regulation (1), transmission system operators shall procure balancing

services subject to the following

(a) transparent, non-discriminatory and market-based

procedures;

(b) the participation of all qualified electricity

undertakings and market participants, including market

participants offering energy from renewable sources, market

participants engaged in demand response, operators of energy

storage facilities and market participants engaged in aggregation.

For the purpose of paragraph (b) of sub-regulation (4), the

Regulator and transmission system operators shall, in close

cooperation with all market participants, establish technical

requirements for participation in those markets, on the basis of the

technical characteristics of those markets.

(5) Sub-regulation (4) shall apply to the provision of non-

frequency ancillary services by transmission system operators, unless

the Regulator has assessed that the market-based provision of non-

frequency ancillary services is economically not efficient and has

granted a derogation. In particular, the regulatory framework shall

ensure that transmission system operators are able to procure such

services from providers of demand response or energy storage and

shall promote the uptake of energy efficiency measures, where such

services cost-effectively alleviate the need to upgrade or replace

electricity capacity and support the efficient and secure operation of

the transmission system.

(6)

Transmission system operators, subject to approval by the

Regulator, or the Regulator itself, shall, in a transparent and

participatory process that includes all relevant system users and the

distribution system operators, establish the specifications for the non-

frequency ancillary services procured and, where appropriate,

standardised market products for such services at least at national

level. The specifications shall ensure the effective and non-

discriminatory participation of all market participants, including

market participants offering energy from renewable sources, market

participants engaged in demand response, operators of energy storage

facilities and market participants engaged in aggregation.

Transmission system operators shall exchange all necessary

information and shall coordinate with distribution system operators in

order to ensure the optimal utilisation of resources, to ensure the

secure and efficient operation of the system and to facilitate market

development. Transmission system operators shall be adequately

remunerated for the procurement of such services to allow them to

recover at least the reasonable corresponding costs, including the

necessary information and communication technology expenses and

infrastructure costs.

(7) The obligation to procure non-frequency ancillary services

referred to in sub-regulation (5) does not apply to fully integrated

network components.

(8) The Minister may allow transmission system operators to

perform activities other than those provided for under these

regulations and in Regulation (EU) 2019/943 where such activities are

necessary for the transmission system operators to fulfil their

obligations under these regulations or Regulation (EU) 2019/943,

provided that the Regulator has assessed the necessity of such a

derogation. This sub-regulation shall be without prejudice to the right

of the transmission system operators to own, develop, manage or

operate networks other than electricity networks where the

transmission system operators has been granted such a right.

(9) The Minister may assign one or more of the responsibilities

of transmission system operators as provided for in regulations 36, 38

and 40 to a distribution system operator.

(1) Without prejudice to regulation 44 or another legal Confidentiality

duty to disclose information, each transmission system operator and and

transparency

each transmission system owner shall preserve the confidentiality of requirements

transmission

commercially sensitive information obtained in the course of carrying system

out its activities, and shall prevent information about its own activities operators

transmission

which may be commercially advantageous from being disclosed in a system owners.

discriminatory manner. In particular it shall not disclose any

commercially sensitive information to the remaining parts of the

undertaking, unless such disclosure is necessary for carrying out a

business transaction.

(2) Transmission system operators shall not, in the context of

sales or purchases of electricity by related undertakings, misuse

commercially sensitive information obtained from third parties in the

context of providing or negotiating access to the system.

(3) Information necessary for effective competition and the

efficient functioning of the market shall be made public. That

obligation shall be without prejudice to preserving the confidentiality

of commercially sensitive information.

(1) The transmission system operator shall establish and

publish transparent and efficient procedures for non-discriminatory

connection of new generating installations and energy storage facilities

to the transmission system. Those procedures shall be subject to

approval by the Regulator.

(2) The transmission system operator shall not be entitled to

refuse the connection of a new generating installation or energy

storage facility on the grounds of possible future limitations to

available network capacities, such as congestion in distant parts of the

transmission system. The transmission system operator shall supply

necessary information

Provided that this shall be without prejudice to the

possibility for transmission system operators to limit the guaranteed

connection capacity or to offer connections subject to operational

limitations, in order to ensure economic efficiency regarding new

generating installations or energy storage facilities, provided that such

limitations have been approved by the Regulator.

Provided further that, the Regulator shall ensure that any

limitations in guaranteed connection capacity or operational

limitations are introduced on the basis of transparent and non-

discriminatory procedures and do not create undue barriers to market

entry.

(3) Where the generating installation or energy storage facility

bears the costs related to ensuring unlimited connection, no limitation

referred to in sub-regulation (2) shall apply.

(4) The transmission system operator shall not be entitled to

refuse a new connection point, on the ground that it would lead to

additional costs resulting from the necessary capacity increase of

system elements in the close-up range to the connection point.

(1) (a) Each undertaking that owns a transmission system Ownership

unbundling of

shall act as a transmission system operator.

transmission

systems and

transmission

(b)

The same person or persons shall not be entitled to either

system

operators.

(i) directly or indirectly to exercise control over an

undertaking performing any of the functions of generation

or supply, and directly or indirectly to exercise control or

exercise any right over a transmission system operator or

over a transmission system; or

(ii) directly or indirectly to exercise control over a

transmission system operator or over a transmission

system, and directly or indirectly to exercise control or

exercise any right over an undertaking performing any of

the functions of generation or supply;

(c) The same person or persons shall not be entitled to appoint

members of the supervisory board, the administrative board or bodies

legally representing the undertaking, of a transmission system operator

or a transmission system, and directly or indirectly to exercise control

or exercise any right over an undertaking performing any of the

functions of generation or supply; and

(d) The same person shall not be entitled to be a member of the

supervisory board, the administrative board or bodies legally

representing the undertaking, of both an undertaking performing any

of the functions of generation or supply and a transmission system

operator or a transmission system.

(2) The rights referred to in (b) and (c) of sub-regulation (1)

shall include, in particular

(a)

the power to exercise voting rights;

(b) the power to appoint members of the supervisory

board, the administrative board or bodies legally representing the

undertaking; or

(c)

the holding of a majority share.

(3) For the purpose of sub-regulation 1(b), the notion

"undertaking performing any of the functions of generation or supply"

shall include "undertaking performing any of the functions of

production and supply" within the meaning of Directive 2009/73/EC,

and the terms "transmission system operator" and "transmission

system" shall include "transmission system operator" and

"transmission system" within the meaning of that Directive.

(4) The obligation set out in sub-regulation 1(a) shall be

deemed to be fulfilled in a situation where two or more undertakings

which own transmission systems have created a joint venture which

acts as a transmission system operator in two or more Member States

for the transmission systems concerned.

No other undertaking may be part of the joint venture, unless it

has been approved under Article 44 of the Directive as an independent

system operator or as an independent transmission operator for the

purposes of Section 3 of the Directive.

(5) For the implementation of this regulation, where the person

referred to sub-regulation 1(b), (c) and (d) is a public body, two

separate public bodies exercising control over a transmission system

operator or over a transmission system on the one hand, and over an

undertaking performing any of the functions of generation or supply

on the other, shall be deemed not to be the same person or persons.

(6) Undertakings performing any of the functions of generation

or supply shall not in any event be able to directly or indirectly take

control over or exercise any right over unbundled transmission system

operators on whom paragraph 1 of Article 43 of the Directive is

applied.

(7) This regulation shall not apply to transmission system

operators in Malta until such date the derogation from Article 43 of the

Directive applies.

(1) At least every two (2) years, transmission system

operators shall submit to the Regulator a ten-year network

development plan based on existing and forecast supply and demand

after having consulted all the relevant stakeholders. That network

development plan shall contain efficient measures in order to

guarantee the adequacy of the system and the security of supply. The

transmission system operator shall publish the ten-year network

development plan on its website.

(2)

The ten-year network development plan shall in particular

(a) indicate to market participants the main transmission

infrastructure that needs to be built or upgraded over the next

ten(10) years;

(b) contain all the investments already decided and

identify new investments which have to be executed in the next

three (3) years; and

(c)

provide for a time frame for all investment projects.

(3) When elaborating the ten-year network development plan,

the transmission system operator shall fully take into account the

potential for the use of demand response, energy storage facilities or

other resources as alternatives to system expansion, as well as

expected consumption, trade with other countries and investment plans

for Union-wide and regional networks.

(4) The Regulator shall consult all actual or potential system

users on the ten-year network development plan in an open and

transparent manner. Persons or undertakings claiming to be potential

system users may be required to substantiate such claims. The

Regulator shall publish the result of the consultation process, in

particular possible needs for investments.

(5) (a) The Regulator shall examine whether the ten-year

network development plan covers all investment needs identified

during the consultation process, and whether it is consistent with the

non-binding Union-wide ten-year network development plan ("Union-

wide network development plan") referred to in point (b) of Article

30(1) of Regulation (EU) 2019/943. If any doubt arises as to the

consistency with the Union-wide network development plan, the

Regulator shall consult ACER. The Regulator may require the

transmission system operator to amend its ten-year network

development plan.

(b) The competent authority responsible for the national energy

and climate plan submitted in accordance with Regulation (EU) 2018/

1999 shall examine the consistency of the ten-year network

development plan with the national energy and climate plan.

(6) The Regulator shall monitor and evaluate

the

implementation of the ten-year network development plan.

(7) In circumstances where the transmission system operator,

other than for overriding reasons beyond its control, does not execute

an investment, which, under the ten-year network development plan,

was to be executed in the following three (3) years, the Regulator shall

take at least one of the following measures to ensure that the

investment in question is made if such investment is still relevant on

the basis of the most recent ten-year network development plan

(a) to require the transmission system operator to execute

the investments in question;

(b) to organise a tender procedure, open to any investors

for the investment in question; or

(c) to oblige the transmission system operator to accept a

capital increase to finance the necessary investments and allow

independent investors to participate in the capital.

(8) Where the Regulator has made use of its powers under

paragraph (b) of sub-regulation (7), it may oblige the transmission

system operator to agree to one or more of the following

(a)

financing by any third party;

(b)

construction by any third party;

(c)

building the new assets concerned itself;

(d)

operating the new asset concerned itself.

The transmission system operator shall provide the investors with

all information needed to realise the investment, shall connect new

assets to the transmission network and shall generally make its best

efforts to facilitate the implementation of the investment project. The

relevant financial arrangements shall be subject to approval by the

Regulator.

(9) Where the Regulator has made use of its powers under sub-

regulation (7), the relevant tariff regulations shall cover the costs of the

investments in question.

(1) Each transmission system operator shall prior to

commencing any transmission system operations, make an application

to the Regulator for certification in accordance with the procedure laid

down in sub-regulations (4), (5), (6) and in Article 51 of Regulation

(EU) 2019/943.

(2) The certification of a transmission system operator as

having complied with the requirements of regulation 39 pursuant to the

certification procedure in this regulation shall be deemed to be a

designation. Designation of transmission operators shall be notified by

the Regulator to the European Commission in writing.

(3) Transmission system operators shall notify the Regulator of

any planned transaction which may require a reassessment of their

compliance with applicable requirements of regulation 39.

(4) The Regulator shall monitor the continuing compliance of

transmission system operators with the requirements of regulation 39.

They shall open a certification procedure to ensure such compliance

(a)

upon notification by the transmission system operator

pursuant to sub-regulation (3);

(b) on their own initiative where they have knowledge

that a planned change in rights or influence over transmission

system owners or transmission system operators may lead to an

infringement of regulation 39, or where they have reason to

believe that such an infringement may have occurred; or

(c)

upon a reasoned request from the Commission.

(5) The Regulator shall adopt a decision on the certification of

a transmission system operator within four (4) months of the date of

the notification by the transmission system operator or from the date of

the Commission request. After expiry of that period, the certification

shall be deemed to be granted. The explicit or tacit decision of the

regulatory authority shall become effective only after conclusion of the

procedure set out in sub-regulation (6).

(6) The explicit or tacit decision on the certification of a

transmission system operator shall be notified without delay to the

Commission by the regulatory authority, together with all the relevant

information with respect to that decision. The Commission shall act in

accordance with the procedure laid down in Article 51 of Regulation

(EU) 2019/943.

(7) The Regulator and the Commission may request from

transmission system operators and undertakings performing any of the

functions of generation or supply any information relevant for the

fulfilment of their tasks under this regulation.

(8) The Regulator and the Commission shall preserve the

confidentiality of commercially sensitive information.

(1) (a) Where certification is requested by a transmission Certification in

system owner or a transmission system operator which is controlled by relation

countries.

a person or persons from a third country or third countries, the

Regulator shall notify the Commission.

(b) The Regulatory shall also notify to the Commission

without delay any circumstances that would result in a person or

persons from a third country or third countries acquiring control of a

transmission system or a transmission system operator.

(2) The transmission system operator shall notify to the

regulatory authority any circumstances that would result in a person or

persons from a third country or third countries acquiring control of the

transmission system or the transmission system operator.

(3) The Regulatory shall adopt a draft decision on the

certification of a transmission system operator within four (4) months

of the date of notification by the transmission system operator. It shall

refuse the certification if it has not been demonstrated

(a) that the entity concerned complies with the

requirements of regulation 39; and

(b) that granting certification will not put at risk the

security of energy supply in Malta and the Union.

In considering the security of supply issue the Regulator shall

take into account

(i) the rights and obligations of the Union with

respect to that third country arising under international law,

including any agreement concluded with one or more third

countries to which the Union is a party and which addresses

the issues of security of energy supply;

(ii) the rights and obligations of Malta with respect

to that third country arising under agreements concluded

with it, insofar as they comply with Union law; and

(iii) other specific facts and circumstances of the

case and the third country concerned.

(4) The Regulator shall notify the decision to the Commission

without delay, together with all the relevant information with respect

to that decision.

(5) The Regulator shall, before it adopts a decision on the

certification under this regulation, request an opinion from the

Commission on whether

(a) the entity concerned complies with the requirements

of regulation 39; and

(b) granting certification will not put at risk the security

of energy supply to the Union.

(6) (a) The Regulator shall, within two (2) months of

receiving an opinion of the European Commission with respect to its

draft decision on the certification pursuant to this regulation or if the

European Commission has not provided an opinion, within two (2)

months from the expiry of the time frame for an opinion, adopt its final

decision on the certification. In adopting its final decision, the

Regulator shall take utmost account of the Commission’s opinion (if

provided). The Regulator shall have the right to refuse certification

where granting certification puts at risk Malta’s security of energy

supply or the security of energy supply of another Member State.

(b) The Regulator’s final decision and the Commission’s

opinion shall be published together. Where the final decision diverges

from the Commission’s opinion, the Regulator shall provide and

publish, together with that decision, the reasoning underlying such

decision.

(7) Nothing in this regulation shall affect the right of the

Regulator or the Minister to exercise, in accordance with Union law,

national legal controls to protect legitimate public security interests.

(1) Transmission system operators shall not own, Ownership of

energy storage

develop, manage or operate energy storage facilities.

facilities by

transmission

system

(2) By way of derogation from sub-regulation (1), transmission operators

system operators may own, develop, manage or operate energy storage

facilities, where they are fully integrated network components and the

Regulator has granted its approval, or where all of the following

conditions are fulfilled

(a) other parties, following an open, transparent and non-

discriminatory tendering procedure that is subject to review and

approval by the Regulator, have not been awarded a right to own,

develop, manage or operate such facilities, or could not deliver

those services at a reasonable cost and in a timely manner;

(b) such facilities or non-frequency ancillary services are

necessary for the transmission system operators to fulfil their

obligations under these regulations for the efficient, reliable and

secure operation of the transmission system and they are not

used to buy or sell electricity in the electricity markets; and

(c) the Regulator has assessed the necessity of such a

derogation, has carried out an ex ante review of the applicability

of a tendering procedure, including the conditions of the

tendering procedure, and has granted its approval.

The Regulator may draw up guidelines or procurement clauses to

help transmission system operators ensure a fair tendering procedure.

(3) The decision to grant a derogation shall be notified to the

Commission and ACER together with relevant information about the

request and the reasons for granting the derogation.

(4)

The Regulator shall perform, at regular intervals or at least

every five (5) years, a public consultation on the existing energy

storage facilities in order to assess the potential availability and

interest of other parties in investing in such facilities. Where the public

consultation, as assessed by the Regulator, indicates that other parties

are able to own, develop, operate or manage such facilities in a cost-

effective manner, the Regulator shall ensure that transmission system

operators’ activities in this regard are phased-out within eighteen (18)

months. As part of the conditions of that procedure, the Regulator may

allow the transmission system operators to receive reasonable

compensation, in particular to recover the residual value of their

investment in the energy storage facilities.

(5) Sub-regulation (4) shall not apply to fully integrated

network components or for the usual depreciation period of new

battery storage facilities with a final investment decision until 2024,

provided that such battery storage facilities are

(a) connected to the grid at the latest two (2) years

thereafter;

(b)

integrated into the transmission system;

(c) used only for the reactive instantaneous restoration of

network security in the case of network contingencies where

such restoration measure starts immediately and ends when

regular re-dispatch can solve the issue; and

(d) not used to buy or sell electricity in the electricity

markets, including balancing.

(1) The Regulator shall, insofar as necessary to carry out

its functions, have right of access to the accounts of electricity

undertakings as set out in regulation 45.

(2) The Regulator shall preserve the confidentiality of

commercially sensitive information. The Regulator may disclose such

information where this is necessary in order for the Regulator to carry

out its functions.

(1) The Regulator shall take the necessary steps to ensure

that the accounts of electricity undertakings are kept in accordance

with sub-regulations (2) and (3).

(2) 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 of the Companies

Act or other applicable legislation concerning the annual accounts of

limited liability companies.

Undertakings which are not legally obliged to publish their

annual accounts shall keep a copy of these at the disposal of the public

in their head office.

(3) Electricity undertakings shall, in their internal accounting,

keep separate accounts for each of their generation, transmission,

distribution and supply 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 also keep accounts, which may be

consolidated, for other electricity activities not relating to transmission

or distribution. Revenue from ownership of the transmission or

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 and notes to the

separate internal accounts as detailed in sub-regulation (6).

(4) The audit referred to in sub-regulation (2) shall, in

particular, verify that the obligation to avoid discrimination and cross-

subsidisation referred to in sub-regulation (3) is respected.

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

transaction of a certain size conducted with related undertakings.

(6) (a) Electricity undertakings shall specify in the notes to

the separate accounts referred to in sub-regulation (3) the rules for the

allocation of assets and liabilities and expenditure and income which

they follow in drawing up the separate accounts required in sub-

regulation (3). Such rules shall be used only after the approval of the

Regulator;

(b) The rules referred to in paragraph (a) may be amended only

with the approval of the Regulator and such amendments shall be

mentioned in the notes and shall be duly substantiated;

(c) The electricity undertakings shall indicate in the notes to

the separate accounts the details of any transaction of a certain size

(being of a size which, in the opinion of the Regulator, would have a

commercial impact) conducted with any

(i)

related undertaking;

(ii) associated undertakings within the meaning

assigned by the Companies Act.

In carrying out the regulatory tasks specified in these General

regulations, the Regulator shall take all reasonable measures in pursuit objectives

Regulator.

of the following objectives within the framework of its duties and

powers as laid down in regulation 47 in close consultation with other

relevant national authorities, including competition authorities, as well

as authorities, including regulatory authorities, from neighbouring

Member States and neighbouring third countries, as appropriate, and

without prejudice to their competence

(a) promoting, in close cooperation with regulatory

authorities of other Member States, the Commission and ACER,

a competitive, flexible, secure and environmentally sustainable

internal market for electricity within the Union, and effective

market opening for all customers and suppliers in the Union, and

ensuring appropriate conditions for the effective and reliable

operation of electricity networks, taking into account long-term

objectives;

(b) developing competitive and properly functioning

regional cross-border markets within the Union with a view to

achieving the objectives referred to in paragraph (a);

(c) eliminating restrictions on trade in electricity

between Member States, including developing appropriate cross-

border transmission capacities to meet demand and enhancing

the integration of national markets which may facilitate

electricity flows across the Union;

(d) helping to achieve, in the most cost-effective way, the

development of secure, reliable and efficient non-discriminatory

systems that are consumer-oriented, and promoting system

adequacy and, in accordance with general energy policy

objectives, energy efficiency, as well as the integration of large

and small-scale production of electricity from renewable sources

and distributed generation in both transmission and distribution

networks, and facilitating their operation in relation to other

energy networks of gas or heat;

(e) facilitating access to the network for new generation

capacity and energy storage facilities, in particular removing

barriers that could prevent access for new market entrants and of

electricity from renewable sources;

(f) ensuring that system operators and system users are

granted appropriate incentives, in both the short and the long

term, to increase efficiencies, especially energy efficiency, in

system performance and to foster market integration;

(g)

ensuring that customers benefit through the efficient

functioning of their national market, promoting effective

competition and helping to ensure a high level of consumer

protection, in close cooperation with relevant consumer

protection authorities;

(h) helping to achieve high standards of universal service

and of public service in electricity supply, contributing to the

protection of vulnerable customers and contributing to the

compatibility of necessary data exchange processes for customer

switching.

(1)

The Regulator shall have the following duties

Duties and

powers of the

Regulator.

(a) fixing or approving, in accordance with transparent

criteria, transmission or distribution tariffs or their

methodologies, or both;

(b) ensuring the compliance of transmission system

operators and distribution system operators and, where relevant,

system owners, as well as the compliance of any electricity

undertakings and other market participants, with their

obligations under these regulations, Regulation (EU) 2019/943,

the network codes and the guidelines adopted pursuant to

Articles 59, 60 and 61 of Regulation (EU) 2019/943, and other

relevant Union law, including as regards cross-border issues, as

well as with ACER’s decisions;

(c) in close coordination with the other regulatory

authorities, ensuring the compliance of the ENTSO for

Electricity and the EU DSO entity with their obligations under

these regulations, Regulation (EU) 2019/943, the network codes

and guidelines adopted pursuant to Articles 59, 60 and 61 of

Regulation (EU) 2019/943, and other relevant Union law,

including as regards cross-border issues, as well as with ACER’s

decisions, and jointly identifying non-compliance of the ENTSO

for Electricity and the EU DSO entity with their respective

obligations; where the regulatory authorities have not been able

to reach an agreement within a period of four (4) months after

the start of consultations for the purpose of jointly identifying

non-compliance, the matter shall be referred to the ACER for a

decision, pursuant to Article 6(10) of Regulation (EU) 2019/942;

(d) approving products and procurement process for non-

frequency ancillary services;

(e) implementing the network codes and guidelines

adopted pursuant to Articles 59, 60 and 61 of Regulation (EU)

2019/943 through national measures or, where so required,

coordinated regional or Union-wide measures;

(f) cooperating in regard to cross-border issues with the

regulatory authority or authorities of the Member States

concerned and with ACER, in particular through participation in

the work of ACER’s Board of Regulators pursuant to Article 21

of Regulation (EU) 2019/942;

(g) complying with, and implementing, any relevant

legally binding decisions of the Commission and of ACER;

(h) ensuring that transmission system operators make

available interconnector capacities to the utmost extent pursuant

to Article 16 of Regulation (EU) 2019/943;

(i) reporting annually on its activity and the fulfilment of

its duties to the relevant national authorities, the Commission

and ACER, including on the steps taken and the results obtained

as regards each of the tasks listed in this regulation;

(j) ensuring that there is no cross-subsidisation between

transmission, distribution and supply activities or other

electricity or non-electricity activities;

(k) monitoring investment plans of the transmission

system operators and providing in its annual report an

assessment of the investment plans of the transmission system

operators as regards their consistency with the Union-wide

network development plan; such assessment may include

recommendations to amend those investment plans;

(l) monitoring and assessing the performance of

transmission system operators and distribution system operators

in relation to the development of a smart grid that promotes

energy efficiency and the integration of energy from renewable

sources, based on a limited set of indicators, and publish a

national report every two years, including recommendations;

(m) setting or approving standards and requirements for

quality of service and quality of supply or contributing thereto

together with other competent authorities and monitoring

compliance with and reviewing the past performance of network

security and reliability rules;

(n) monitoring the level of transparency, including of

wholesale prices, and ensuring compliance of electricity

undertakings with transparency obligations;

(o) monitoring the level and effectiveness of market

opening and competition at wholesale and retail levels, including

on electricity exchanges, prices for household customers

including prepayment systems, the impact of dynamic electricity

switching rates, disconnection rates, charges for maintenance

services, the execution of maintenance services, the relationship

between household and wholesale prices, the evolution of grid

tariffs and levies, and complaints by household customers, as

well as any distortion or restriction of competition, including by

providing any relevant information, and bringing any relevant

cases to the relevant competition authorities;

(p) monitoring the occurrence of restrictive contractual

practices, including exclusivity clauses which may prevent

customers from contracting simultaneously with more than one

supplier or restrict their choice to do so, and, where appropriate,

informing the national competition authorities of such practices;

(q) monitoring the time taken by transmission system

operators and distribution system operators to make connections

and repairs;

(r) helping to ensure, together with other relevant

authorities, that the consumer protection measures are effective

and enforced;

(s) publishing recommendations, at least annually, in

relation to compliance of supply prices with regulation 4, and

providing those recommendations to the competition authorities,

where appropriate;

(t) ensuring non-discriminatory access to customer

consumption data, the provision, for optional use, of an easily

understandable harmonised format at national level for

consumption data, and prompt access for all customers to such

data pursuant to regulation 20 and 21 of these regulations;

(u) monitoring the implementation of rules relating to the

roles and responsibilities of transmission system operators,

distribution system operators, suppliers, customers and other

market participants pursuant to Regulation (EU) 2019/943;

(v) monitoring investment in generation and storage

capacities in relation to security of supply;

(w) monitoring technical cooperation between Union and

third-country transmission system operators;

(x) contributing to the compatibility of data exchange

processes for the most important market processes at regional

level;

(y) monitoring the availability of comparison tools that

meet the requirements set out in regulation 11;

(z) monitoring the removal of unjustified obstacles to

and restrictions on the development of consumption of self-

generated electricity and citizen energy communities.

(2) While preserving its independence, without prejudice to the

Regulator’s specific competence and consistent with the principles of

better regulation, the Regulator shall, as appropriate, consult

transmission system operators and distribution system operators, as

appropriate, closely cooperate with other relevant national authorities

when carrying out the duties set out in sub-regulation (1).

Any approvals given by the Regulator under these regulations are

without prejudice to any duly justified future use of its powers by the

Regulator under these regulations or to any penalties imposed by other

relevant authorities or the Commission.

(3) For the purpose of carrying out the duties under these

regulations in an efficient and expeditious manner, the Regulator shall

have the following powers

(a)

to issue binding decisions on electricity undertakings;

(b) to require any information from electricity

undertakings relevant for the fulfilment of its tasks, including the

justification for any refusal to grant third-party access, and any

information on measures necessary to reinforce the network;

(c) appropriate rights of investigation and relevant

powers of instruction for dispute settlement under sub-regulation

(2) and (3) of regulation 48.

(4) The Regulator, except where ACER is competent to fix and

approve the terms and conditions or methodologies for the

implementation of network codes and guidelines under Chapter VII of

Regulation (EU) 2019/943 pursuant to Article 5(2) of Regulation (EU)

2019/942 because of their coordinated nature, shall be responsible for

fixing or approving sufficiently in advance of their entry into force at

least the national methodologies used to calculate or establish the

terms and conditions for

(a) connection and access to national networks, including

transmission and distribution tariffs or their methodologies,

those tariffs or methodologies shall allow the necessary

investments in the networks to be carried out in a manner

allowing those investments to ensure the viability of the

networks;

(b) the provision of ancillary services which shall be

performed in the most economic manner possible and provide

appropriate incentives for network users to balance their input

and off-takes, such ancillary services shall be provided in a fair

and non-discriminatory manner and be based on objective

criteria; and

(c) access to cross-border infrastructures, including the

procedures for the allocation of capacity and congestion

management.

(5) The methodologies or the terms and conditions referred to

in sub-regulation (4) shall be published.

(6) With a view to increasing transparency in the market and

providing all interested parties with all necessary information and

decisions or proposals for decisions concerning transmission and

distribution tariffs as referred in regulation 48(3), the Regulator shall

make publicly available the detailed methodology and underlying

costs used for the calculation of the relevant network tariffs, while

preserving the confidentiality of commercially sensitive information.

(7) The Regulator shall monitor congestion management of

national electricity systems including interconnectors, and the

implementation of congestion management rules. To that end,

transmission system operators or market operators shall submit their

congestion management rules, including capacity allocation, to the

Regulator. The Regulator may request amendments to those rules.

(1) The Regulator may require transmission system Decisions and

operators and distribution system operators, if necessary, to modify the complaints.

terms and conditions, including tariffs or methodologies referred to

regulation 47 of these regulations, to ensure that they are proportionate

and applied in a non-discriminatory manner, in accordance with

Article 18 of Regulation (EU) 2019/943. In the event of delay in the

fixing of transmission and distribution tariffs, the Regulator shall have

the power to fix or approve provisional transmission and distribution

tariffs or methodologies and to decide on the appropriate

compensatory measures if the final transmission and distribution

tariffs or methodologies deviate from those provisional tariffs or

methodologies.

(2) Any party having a complaint against a transmission or

distribution system operator in relation to that operator's obligations

under these regulations may refer the complaint to the Regulator

which, acting as dispute settlement authority, shall issue a decision

within two (2) months of receipt of the complaint. That period may be

extended by two (2) months where additional information is sought by

the Regulator. That extended period may be further extended with the

agreement of the complainant. The Regulator's decision shall have

binding effect unless and until overruled on appeal.

(3) Any party who is affected and who has a right to complain

concerning a decision on methodologies taken pursuant to regulation

47 or, where the Regulator has a duty to consult, concerning the

proposed tariffs or methodologies, may, within two (2) months, after

publication of the decision or proposal for a decision, submit a

complaint for review. Such a complaint shall not have suspensive

effect.

(4) The Regulator shall take the appropriate measures

including administrative action or criminal proceedings in conformity

with the law, against the natural or legal persons responsible where

confidentiality rules imposed by these regulations have not been

respected.

(5) Complaints referred to in sub-regulations (2) and (3) shall

be without prejudice to the exercise of rights of appeal under Union or

national law.

(6) Decisions taken by the Regulator shall be fully reasoned

and justified to allow for judicial review. The decisions shall be

available to the public while preserving the confidentiality of

commercially sensitive information.

(1) The Regulator shall closely consult and cooperate

with other regulatory authorities, in particular within ACER, and shall

provide each other and ACER with any information necessary for the

fulfilment of their tasks under the Directive. With respect to the

information exchanged, the Regulator shall ensure the same level of

confidentiality as that required of the originating authority.

(2)

The Regulator shall cooperate at least at a regional level to

(a) foster the creation of operational arrangements in

order to enable an optimal management of the network, promote

joint electricity exchanges and the allocation of cross-border

capacity, and to enable an adequate level of interconnection

capacity, including through new interconnection, within the

region and between regions to allow for development of effective

competition and improvement of security of supply, without

discriminating between suppliers in different Member States;

(b) coordinate the joint oversight of entities performing

functions at regional level;

(c) coordinate, in cooperation with other involved

authorities, the joint oversight of national, regional and European

resource adequacy assessments;

(d) coordinate the development of all network codes and

guidelines for the relevant transmission system operators and

other market actors; and

(e) coordinate the development of the rules governing the

management of congestion.

(3) The Regulator shall have the right to enter into cooperative

arrangements with other regulators to foster regulatory cooperation.

(4) The actions referred to in sub-regulation (2) shall be carried

out, as appropriate, in close consultation with other relevant national

authorities and without prejudice to their specific competence.

(1) The Regulator, when forming part of system Duties and

operation region in which a regional coordination centre is established powers

Regulator with

shall, in close coordination with other regional regulatory authorities: respect

regional

coordination

(a) approve the proposal for the establishment of regional centres.

coordination centres in accordance with Article 35(1) of

Regulation (EU) 2019/943;

(b) approve the costs related to the activities of the

regional coordination centres, which are to be borne by the

transmission system operators and to be taken into account in the

calculation of tariffs, provided that they are reasonable and

appropriate;

(c)

approve the cooperative decision-making process;

(d) ensure that the regional coordination centres are

equipped with all the necessary human, technical, physical and

financial resources for fulfilling their obligations under the

Directive and carrying out their tasks independently and

impartially;

(e) propose jointly with other regulatory authorities of a

system operation region possible additional tasks and additional

powers to be assigned to the regional coordination centres by the

Member States of the system operation region;

(f) ensure compliance with the obligations under these

regulations and other relevant Union law, in particular as regards

cross-border issues, and jointly identify non-compliance of the

regional coordination centres with their respective obligations;

where the regulatory authorities have not been able to reach an

agreement within a period of four (4) months after the start of

consultations for the purpose of jointly identifying non-

compliance, the matter shall be referred to ACER for a decision,

pursuant to Article 6(10) of Regulation (EU) 2019/942;

(g) monitor the performance of system coordination and

report annually to ACER in this respect in accordance with

Article 46 of Regulation (EU) 2019/943.

(2) For the purpose of carrying out the duties referred to in sub-

regulation (1) in an efficient and expeditious manner, the Regulator

shall have the following powers

(a)

to request information from the regional coordination

centres;

(b) to carry out inspections, including unannounced

inspections, at the premises of the regional coordination centres;

(c) to issue joint binding decisions on the regional

coordination centres.

(3) The Regulator, when a regional coordination centre has its

seat in Malta, may impose an administrative fine on the regional

coordination centre where it does not comply with its obligations

under these regulations, Regulation (EU) 2019/943 or any relevant

legally binding decisions of the Regulator or of ACER.

(1) The Regulator may request the opinion of ACER on

the compliance of a decision taken by a regulatory authority with the

network codes and guidelines referred to in the Directive or in Chapter

VII of Regulation (EU) 2019/943.

(2) The Regulator may inform the Commission where it

considers that a decision relevant for cross-border trade taken by

another regulatory authority does not comply with the network codes

and guidelines referred to in these regulations or in Chapter VII of

Regulation (EU) 2019/943 within two (2) months of the date of that

decision.

The Regulator shall comply with the Commission decision

requiring it to withdraw its decision within two (2) months and shall

inform the Commission accordingly.

(1) Suppliers shall keep at the disposal of the national Record keeping.

authorities including the Regulator, the national competition authority

and the Commission, for the fulfilment of their tasks, for at least five

(5) years, the relevant data relating to all transactions in electricity

supply contracts and electricity derivatives with wholesale customers

and transmission system operators.

(2) The data shall include details on the characteristics of the

relevant transactions such as duration, delivery and settlement rules,

the quantity, the dates and times of execution and the transaction prices

and means of identifying the wholesale customer concerned, as well as

specified details of all unsettled electricity supply contracts and

electricity derivatives.

(3) The Regulator may decide to make available to market

participants elements of that information

Provided that commercially sensitive information on

individual market players or individual transactions shall not be

released

Provided further that this sub-regulation shall not apply to

information about financial instruments falling within the scope of

Directive 2014/65/EU.

(4) This regulation shall not create additional obligations

towards the authorities referred to in sub-regulation (1) for entities

falling within the scope of Directive 2014/65/EU.

(5) In the event that the authorities referred to in sub-regulation

(1) need access to data kept by entities falling within the scope of

Directive 2014/65/EU, the authorities responsible under that Directive

shall provide them with the required data.

Any person who prior to the entry into force of these Former

regulations was licensed under, and any licence issued under the licensing.

Electricity Regulations, 2004 and the Electricity Market Regulations, L.N.

2004. shall be deemed to have been licensed or to have been issued under S.L. 545. 13.

these regulations, and the provisions of these regulations shall mutatis

mutandis apply to that person and licence

Provided that such person may continue to perform such

operations or activities as licensed under existing licence conditions,

unless required by the Regulator to apply for a new licence under these

regulations

Provided further that any such person shall comply with

such licence conditions as established in the new licence that maybe

issued by the Regulator with effect from such date that the Regulator

may establish.

(1) The following operations and activities shall require a

licence issued by the Regulator and in accordance with such terms and

conditions as may be specified in the licence

(a)

generation of electricity;

(b)

supply of electricity;

(c) carrying out of any of the functions of a distribution

system operator;

(d) carrying out the any of the functions of a transmission

system operator

Provided that, in view of the derogations from the

application of Articles 4 and 6 of the Directive granted to Malta

pursuant to Article 66 of the Directive and until such time as the

aforesaid derogations remain in force, the licence for the supply of

electricity shall be issued only to the distribution system operator,

designated in accordance with regulation 27.

(2) A licence shall not be required for the categories specified

in the Third Schedule for the carrying out of the operations or

activities mentioned therein, including energy storage facilities.

(3) Without prejudice to any other law, licences may be granted

or refused on the basis of the following criteria

(a) compliance by the applicant with all other relevant

permits and authorisations, however so described, including

those issued by any other public authority or Government

Department;

(b) the capability of the applicant to ensure safety

conditions, in the context of the licence being applied for;

(c)

private and professional integrity of the applicant;

(d)

protection of the health and safety of employees;

(e)

protection of the environment;

(f) record of compliance with these regulations and any

other relevant laws by the person or entity with regard to whom

the decision shall be made;

(g) compliance with safety, health, security, hazardous

substances, environment, land use and planning requirements.

(4) An application for a new licence or for its renewal under

these regulations shall be

(a) in writing and in such form and shall contain such

information as the Regulator may require;

(b) accompanied by such fees, bank guarantees and

insurance policies as the Regulator may determine and deem 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 shall subsist

throughout its duration. Interests and penalties, as established by

the Regulator, 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 authorisation, or from an obligation arising from any

other law.

(5) A licence granted under these regulations may include such

conditions as appear to the Regulator to be requisite or expedient,

having regard to the duties of the Regulator.

(6) The Regulator shall communicate to the applicant in

writing within a reasonable time, which shall not be of more than six

(6) months from the date of receipt of a valid application, any decision

taken concerning an application for a licence or an application for the

renewal of a licence or any valid reason impeding the Regulator to

reach such a decision.

The Regulator may, at any time in the course of the period Suspension,

for which a licence is valid, order its suspension, revocation or revocation

cancellation of

cancellation where the Regulator is satisfied that

licence.

(a) the holder of the licence has failed or is failing to

comply with any condition of the licence or with these

regulations; or

(b) the licensee does not possess all other relevant

licences, permits and authorisations however so described that

are required by any other public authority or Government

department; or

(c) the holder of the licence is contravening any

requirement imposed by law; or

(d) the holder of the licence fails to comply with any

directive given by the Regulator; or

(e) any information submitted in the application for a

licence or the application for renewal of a licence and for which

the licence has been issued or renewed, as the case may be, is

determined to be false; or

(f) if the holder of the licence does not meet any criteria

in respect to one or more of the criteria referred to in regulation

53(3)

Provided that in exercising the powers for suspension,

revocation or cancellation of licences, the Regulator may take into

account the nature of the failure, or the fact that the holder of the

licence is taking the appropriate steps which the Regulator considers to

be necessary in order to comply with the conditions of the licence,

these regulations or any other requirement that the Regulator may

deem relevant.

(1) When the holder of a licence issued under these

regulations, decides either to suspend or terminate his licence, such

holder shall promptly notify the Regulator in the form prescribed by

the Authority, to notify such a termination or suspension.

(2) Upon acknowledgment by the Regulator to the holder of a

licence of the notification mentioned in sub-regulation (1), the licence

shall be considered to have ceased to be in force and with immediate

effect from the date of such acknowledgment such holder shall be

deemed to be unlicensed.

(3) Notwithstanding any notice for the termination or

suspension of a licence, the holder of the licence shall remain liable for

the payment of any fee due to the Regulator.

(1) A licence issued by the Regulator under these

regulations shall not be validly transferred inter vivos to any other

person unless

(a) the transferor informs in writing the Regulator in

such form and manner as the Regulator shall prescribe;

(b) the Regulator is satisfied that at least the same criteria

as listed in regulation 54(3) are complied with;

(c) the transfer is subject to the conditions prescribed in

the licence; and

(d)

the Regulator approves in writing the transfer of the

licence.

(2) A licence issued by the Regulator under these regulations

shall not be validly transmitted causa mortis to any other person

unless

(a) the transferor informs in writing the Regulator in

such form and manner as the Regulator shall prescribe;

(b) the Regulator is satisfied that at least the same criteria

as listed in regulation 53(3) are complied with;

(c) the transfer is subject to the conditions prescribed in

the licence; and

(d)

the Regulator approves in writing the transfer of the

licence

Provided that a licence issued in terms of these regulations

shall be an indivisible right

Provided further that in the event that the Regulator

approves the transfer of the licence as aforesaid, the transfer shall have

retrospective effect from the date of the death of the decujus.

(3) 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 of the Regulator. 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) The electricity supplier or the operator of any Recharging

recharging point accessible to the public shall provide for the points.

possibility for electric vehicle users to recharge on an ad hoc basis

without entering into a contract.

(2) The distribution system operator shall cooperate on a non-

discriminatory basis with any person establishing or operating

recharging points accessible to the public.

(1) Any person who contravenes any of the provisions of

these regulations or of a licence condition or of an authorisation or

approval issued thereunder, shall be guilty of an offence, and shall, on

conviction, be liable to a fine (multa) of not more than sixty-nine

thousand euro (€69,000) or for one thousand and three hundred euro

(€1,300) for each day during which the offence persists.

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

regulations is requested or required by the Regulator, knowingly or

negligently

(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 thousand euro (€1,000) and of not

more than sixty thousand euro (€60,000) for each day during which the

failure to comply subsists.

(3) Notwithstanding any other provision of these regulations,

where any person fails to comply with the provisions of these

regulations or of a licence or authorisation condition for a period not

exceeding three (3) months, the Regulator may revoke such licence or

authorisation.

(1) The Regulator may impose an administrative fine

upon any person who infringes any provision of these regulations or

who fails to comply with any directive or decision given by the

Regulator in ensuring compliance with these regulations.

(2)

An administrative fine imposed under sub-regulation (1)

shall not exceed one hundred thousand euro (€100,000) for each

contravention and, or six hundred euro (€600) for each day of non-

compliance, from the date of the decision given by the Regulator

Provided that, in the case of undertakings (including

vertically integrated undertakings) or a body corporate, a fine of up to

ten per cent (10%) of the total turnover concerned in the preceding

business year may be imposed even if such fine results in an amount

which exceeds the threshold provided in this sub-regulation.

The Administrative Review Tribunal established by article Administrative

5 of the Administrative Justice Act shall be competent to hear and Review

Tribunal.

determine appeals from decisions of the Regulator made under these Cap. 490.

regulations. Unless otherwise provided by law, an appeal from a

decision of the Regulator made under these regulations shall lie to the

Administrative Review Tribunal in accordance with article 32 of the

Act.

The Electricity Market Regulations are hereby being Repeals the

Electricity

repealed.

Market

Regulations.

S.L. 545. 13.