ENERGY EFFICIENCY REGULATIONS

SUBSIDIARY LEGISLATION 623.07

ENERGY EFFICIENCY REGULATIONS

2nd March, 2021

LEGAL NOTICE 66 of 2021 as amended by Legal Notice 409 of 2021.

(1)

The title of these regulations is the Energy

Efficiency Regulations.

(2)

These regulations transpose Directive 2012/27/EU of the

European Parliament and of the Council of the 25 th October 2012 on

energy efficiency, amending Directives 2009/125/EC and 2010/30/EU

and repealing Directives 2004/8/EC and 2006/32/EC, as amended by

Directive (EU) 2018/2002 of the European Parliament and of the

Council of the 11 th December amending Directive 2012/27/EU and by

Commission Delegated Regulation (EU) 2019/826 of the 4 th March

2019. (3)

These regulations establish a framework as part of the

common framework of measures for the promotion of energy

efficiency within the Union in order to ensure the achievement of the

Union’s 2020 headline targets on energy efficiency of 20% and its

headline targets on energy efficiency of at least 32.5% for 2030, and to

pave the way for further energy efficiency improvements beyond that

date. These regulations also lay down rules designed to remove

barriers in the energy market and overcome market failures that

impede efficiency in the supply and use of energy, and provide for the

establishment of indicative national energy efficiency targets for 2020

and for 2030, and contribute to the implementation of the energy

efficiency first principle

(1)

Unless stated otherwise in these regulations, the

definitions in the Act shall apply.

(2)

In these regulations, unless the context otherwise

requires

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

"aggregator" means a demand service provider that combines

multiple short-duration consumer loads to sell or auction in organised

energy markets;

"building element" shall have the same meaning as assigned to

it under the Energy Performance of Buildings Regulations;

"Building and Construction Authority" means the Authority

established under article 5 of the Building and Construction Authority

Act;

"building unit" shall have the same meaning as assigned to it

under the Energy Performance of Buildings Regulations;

"cogeneration" means the simultaneous generation in one

process of thermal energy and electrical or mechanical energy;

"cogeneration unit" means a unit that can operate in

cogeneration mode;

"Commission" means the European Commission established by

the Treaty on the Functioning of the European Union as amended by

the Lisbon Treaty, 2009;

"contracting authorities" shall have the same meaning as

assigned to it under the Public Procurement Regulations;

"Council Decision 2006/1005/EC" means Council Decision of

18 December 2006 concerning conclusion of the Agreement between

the Government of the United States of America and the European

Community on the coordination of energy-efficiency labelling

programmes for office equipment;

"Decision 2008/952/EC" means Commission Decision of the

19th November 2008 establishing detailed guidelines for the

implementation and application of Annex II to Directive 2004/8/EC of

the European Parliament and of the Council;

"distribution system operator" shall have the same meaning as

under the Electricity Market Regulations, and the Natural Gas Market

Regulations, respectively;

"district heating or district cooling” shall have the same

meaning as under the Energy Performance of Buildings Regulations;

"economically justifiable demand" means demand that does not

exceed the needs for heating or cooling and which would otherwise be

satisfied at market conditions by energy generation processes other

than cogeneration;

"efficient district heating and cooling" means a district heating

or cooling system using at least fifty per cent (50%) renewable energy,

fifty per cent (50%) waste heat, seventy-five per cent (75%)

cogenerated heat or fifty per cent (50%) of a combination of such

energy and heat;

"efficient heating and cooling" means a heating and cooling

option that compared to a baseline scenario reflecting a business as

usual situation measurably reduces the input of primary energy needed

to supply one unit of delivered energy within a relevant system

boundary in a cost-effective way, as assessed in the cost-benefit

analysis referred to in these regulations, taking into account the energy

required for extraction, conversion, transport and distribution;

"efficient individual heating and cooling" means an individual

heating and cooling supply option that compared to efficient district

heating and cooling measurably reduces the input of non-renewable

primary energy needed to supply one unit of delivered energy within a

relevant system boundary or requires the same input of non-renewable

primary energy but at a lower cost, taking into account the energy

required for extraction, conversion, transport and distribution;

"electricity from cogeneration" means electricity generated in a

process linked to the production of useful heat and calculated in

accordance with the methodology laid down in the First Schedule;

"energy" means all forms of energy products, combustible fuels,

heat, renewable energy, electricity, or any other form of energy, as

defined in Regulation (EC) No 1099/2008 of the European Parliament

and of the Council of 22 October 2008 on energy statistics;

"energy audit" means a systematic procedure to obtain adequate

knowledge of the existing energy consumption profile of a building or

group of buildings, an industrial or commercial operation or

installation or a private or public service, to identify and quantify cost-

effective energy savings opportunities, and report the findings;

"energy distributor" means a natural or legal person, including a

distribution system operator, responsible for transporting energy with a

view to its delivery to final customers or to distribution stations that

sell energy to final customers;

"energy efficiency" means a ratio between an output of

performance, service, goods or energy, and an input of energy;

"energy efficiency improvement" means an increase in energy

efficiency as a result of technological, behavioural and, or economic

changes;

"energy management system" means a set of interrelated or

interacting elements of a plan which sets an energy efficiency

objective and a strategy to achieve that objective;

"energy performance contracting" means a contractual

arrangement between the beneficiary and the provider of an energy

efficiency improvement measure, verified and monitored during the

whole term of the contract, where investments (work, supply or

service) in that measure are paid for in relation to a contractually

agreed level of energy efficiency improvement or other agreed energy

performance criterion, such as financial savings;

"energy savings" means an amount of saved energy determined

by measuring and, or estimating consumption before and after

implementation of one or more energy efficiency improvement

measures, whilst ensuring normalisation for external conditions that

affect energy consumption;

"energy service" means the physical benefit, utility or good

derived from a combination of energy with energy efficient technology

or with action, which may include the operations, maintenance and

control necessary to deliver the service, which is delivered on the basis

of a contract and in normal circumstances has proven to result in

verifiable and measurable or estimable energy efficiency improvement

or primary energy savings;

"energy service provider" means a natural or legal person who

delivers energy services or other energy efficiency improvement

measures in a final customer's facility or premises;

"entrusted party" means a legal entity with delegated power

from Government or another public body to develop, manage or

operate a financing scheme on behalf of Government or other public

body;

"European standard" means a standard adopted by the European

Committee for Standardisation, the European Committee for Electro-

technical Standardisation or the European Telecommunications

Standards Institute and made available for public use;

"European Union" or "Union" means the European Union as

referred to in the Treaty;

"final customer" means a natural or legal person who purchases

energy based on a direct, individual contract with an energy supplier;

"final user" for the purposes of regulation 16 and Part II of the

Seventh Schedule, means an occupant of an individual building or an

individual unit of a multi-apartment or multi-purpose building where

such unit is supplied with heating, cooling or domestic hot water from

a central source and where such occupant has no direct or individual

contract with the energy supplier, as well as any final customer

purchasing heating, cooling or domestic hot water for their own end

use;

"final energy consumption" means all energy supplied to

industry, transport, households, services and agriculture

Provided that, it shall exclude deliveries to the energy

transformation sector and the energy industries themselves;

"Government" means the Government of Malta and includes all

administrative departments of Government whose competence extends

over the whole territory of Malta, but shall not include local councils;

"high-efficiency cogeneration" means cogeneration meeting the

criteria laid down in the Second Schedule;

"implementing public authority" means a body governed by

public law which is responsible for the carrying out or monitoring of

energy or carbon taxation, financial schemes and instruments, fiscal

incentives, standards and norms, energy labelling schemes, training or

education;

"individual action" means an action that leads to verifiable, and

measurable or estimable, energy efficiency improvements and is

undertaken as a result of a policy measure;

"International standard" means a standard adopted by the

International Standardisation Organisation and made available to the

public;

"Malta" has the same meaning as is assigned to it by article 124

of the Constitution of Malta;

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

"micro-cogeneration unit" means a cogeneration unit with a

maximum capacity below 50 kWe;

"Minister" means the Minister responsible for the Regulator for

Energy and Water Services

Provided that the Minister may designate any such body

to carry out any such function as is attributed to the Minister under

these regulations

Provided further that such designation shall be made

public by means of a notice published in the Gazette;

"National Energy Efficiency Action Plan" or "the Plan" means

the action plan which is intended to achieve the national energy

efficiency targets required by sub-regulation (1) of regulation 3 and

towards the implementation of these regulations;

"obligated party" means the energy distributor or retail energy

sales company that is bound by the national energy efficiency

obligation schemes referred to in regulation 8;

"overall efficiency" means the annual sum of electricity and

mechanical energy production and useful heat output divided by the

fuel input used for heat produced in a cogeneration process and gross

electricity and mechanical energy production;

"participating party" means an enterprise or public body that has

committed itself to reach certain objectives under a voluntary

agreement, or is covered by a national regulatory policy instrument;

"plot ratio" means the ratio between the land area and the

building floor area in a given territory;

"policy measure" means a regulatory, financial, fiscal, voluntary

or information provision instrument that has been formally established

and implemented to create a supportive framework, requirement or

incentive for market actors to provide and purchase energy services

and to undertake other energy efficiency improvement measures;

"power to heat ratio" means the ratio between electricity from

cogeneration and useful heat when operating in full cogeneration mode

using operational data of the specific unit;

"primary energy consumption"

means

gross

inland

consumption, excluding non-energy uses;

"public bodies" means "contracting authorities" as defined in

the Public Procurement Regulations;

"Regulation (EU) No 510/2011" means Regulation (EU) No

510/2011 of the European Parliament and of the Council of the 11th

May 2011 setting emission performance standards for new light

commercial vehicles as part of the Union’s integrated approach to

reduce CO 2 emissions from light-duty vehicles;

"Regulation (EC) No 443/2009" means Regulation (EC) No

443/2009 of the European Parliament and of the Council of the 23

April 2009 setting emission performance standards for new passenger

cars as part of the Community’s integrated approach to reduce CO 2

emissions from light-duty vehicles;

"Regulation 714/2009" means Regulation (EC) No 714/2009 of

the European Parliament and of the Council of the 13 July 2009 on

conditions for access to the network for cross-border exchanges in

electricity and repealing Regulation (EC) No 1228/2003;

"Regulation (EC) No 1222/2009" means Regulation (EC) No

1222/2009 of the European Parliament and of the Council of the 25

November 2009 on the labelling of tyres with respect to fuel efficiency

and other essential parameters;

"Regulation (EU) 2018/1999" means Regulation (EU) 2018/

1999 of the European Parliament and of the Council of the 11

December 2018 on the Governance of the Energy Union and Climate

Action, amending Regulations (EC) No 663/2009 and (EC) No 715/

2009 of the European Parliament and of the Council, Directives 94/22/

EC, 98/70/EC. 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/

EU of the European Parliament and of the Council, Council Directives

2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No

525/2013 of the European Parliament and of the Council;

"Regulator" means the Regulator for Energy and Water Services

established by the Act;

"retail energy sales company" means a natural or legal person

who sells energy to final customers;

"small and medium-sized enterprises" means enterprises as

defined in Title I of the Annex to Commission Recommendation 2003/

361 of the 6th May 2003 concerning the definition of micro, small and

medium-sized enterprises. The category of micro, small and medium-

sized enterprises (SMEs) is made up of enterprises which employ

fewer than two hundred and fifty (250) persons and which have an

annual turnover not exceeding fifty million euro (€50, 000, 000), and,

or an annual balance sheet total not exceeding forty-three million euro

(€43, 000, 000);

"small scale cogeneration unit" means a cogeneration unit with

installed capacity below 1MWe;

"smart metering system" means an electronic system that can

measure energy consumption, adding more information than a

conventional meter, and can transmit and receive data using a form of

electronic communication;

"substantial refurbishment" means a refurbishment whose cost

exceeds 50% of the investment cost for a new comparable unit;

"total useful floor area" means the floor area of a building or

part of a building, where energy is used to condition the indoor

climate;

"transmission system operator" means "transmission system

operator" as defined in Directive 2009/72/EC and Directive 2009/73/

EC respectively;

"Treaty" shall have the same meaning as in the European Union

Act;

"useful heat" means heat produced in a cogeneration process to

satisfy economically justifiable demand for heating or cooling.

(1)

The Minister shall set an indicative national

energy efficiency target for 2020, based on either primary or final

energy consumption, primary or final energy savings, or energy

intensity. In notifying these targets to the Commission, the Minister

shall also express them in terms of an absolute level of primary energy

consumption and final energy consumption in 2020 and shall explain

how, and on the basis of which data, this has been calculated. When

setting these targets, the Minister shall take into account

(a)

that the Union’s 2020 energy consumption has to

be no more than 1474 Mtoe of primary energy or no more than

1078 Mtoe of final energy;

(b)

the measures provided for in these regulations;

(c)

the measures adopted to reach the national energy

saving targets adopted pursuant to sub-regulation (1) of

regulation 4 of the Energy End-use Efficiency and Energy

Services Regulations; and

(d)

other measures to promote energy efficiency

within Member States and at Union level.

(2)

When setting the national energy efficiency target, the

Minister may also take into account national circumstances affecting

primary energy consumption, such as remaining cost-effective energy-

saving potential, GDP evolution and forecast, changes of energy

imports and exports, development of all sources of renewable energies,

nuclear energy, carbon capture and storage (CCS), and early action.

(3)

The Minister shall set an indicative energy efficiency

contribution towards the Union’s 2030 targets described in sub-

regulation (3) of regulation 1, in accordance with Articles 4 and 6 of

Regulation (EU) 2018/1999. When setting this contribution, the

Minister shall take into account that the Union's 2030 energy

consumption has to be no more than 1,273 Mtoe of primary energy

and, or no more than 956 Mtoe of final energy.

(4)

The contribution set according to sub-regulation (3) shall

be notified by the Minister to the Commission as part of Malta’s

integrated national energy and climate plan as referred to in, and in

accordance with, Articles 3 and 7 to 12 of Regulation (EU) 2018/1999.

(1)

A long-term strategy to support the renovation of

national stock of residential and commercial buildings, both public and

private shall be established in line with the provisions of regulation 8A

of the Energy Performance of Buildings Regulations.

(2)

A first version of the long-term strategy for mobilising

investment in the renovation of the national stock of residential and

commercial buildings, both public and private, shall be published

by 30 th April 2014. An updated version of the first version of this

strategy shall be published by the Building and Construction

Authority every three (3) years, which are to be reckoned as from

the date of the publication of such first version. The updated

versions are also to be submitted by the Building and Construction

Authority to the Minister for inclusion in Malta’s integrated national

energy and climate plans required by Regulation (EU) 2018/1999.

(1)

(a) Without prejudice to regulation 8 of the

Energy Performance of Buildings Regulations, the Building and

Construction Authority shall take cost-effective measures, including

deep renovations and measures for behavioural change of occupants,

to achieve by 2020 an amount of energy savings in eligible buildings

owned and occupied by Government which is at least equivalent to

that required by paragraph 1 of Article 5 of Directive 2012/27/EU,

which amount shall be reported to the Minister on an annual basis.

(b)

The Building and Construction Authority shall estimate

the energy savings referred to in paragraphs 1 to 4 of Article 5 of

Directive 2012/27/EU by using appropriate standard values for the

energy consumption of reference central Government buildings before

and after renovation and according to estimates of the surface of their

stock. The categories of reference central Government buildings shall

be representative of the stock of such buildings.

(c)

The Minister shall notify to the Commission the

measures that are planned to be adopted and showing how they would

achieve an equivalent improvement of the energy performance of the

buildings within the Government estate.

(2)

For the purposes of establishing equivalence of the

savings required to be achieved in terms of sub-regulation (1) with the

energy savings referred to in paragraphs 1 to 4 of Article 5 of Directive

2012/27/EU, the Building and Construction Authority in collaboration

with the Lands Authority hall establish and make publicly available an

inventory of heated and, or cooled central government buildings with a

total useful floor area over 250 m 2 , excluding buildings exempted on

the basis of paragraph 2 of Article 5 of Directive 2012/27/EU,

containing the following data

the floor area in m 2 ; and

(a)

(b)

the energy performance of each building or

relevant energy data.

(3)

The Building and Construction Authority shall

encourage public bodies, including at regional and local level, and

social-housing bodies governed by public law, with due regard for

their respective competences and administrative set-up, to

(a)

adopt an energy efficiency plan, free-standing or

as part of a broader climate or environmental plan, containing

specific energy saving and efficiency objectives and actions,

with a view to following the exemplary role of Government

buildings laid down in sub-regulations (1) and (2);

(b)

put in place an energy management system,

including energy audits, as part of the implementation of

their plan;

(c)

use, where appropriate, energy service companies,

and energy performance contracting to finance renovations and

implement plans to maintain or improve energy efficiency in

the long term.

(1)

Contracting authorities shall only purchase

products, services and buildings with high-energy efficiency

performance, insofar as this is consistent with cost-effectiveness,

economical feasibility, wider sustainability, technical suitability, as

well as sufficient competition, as referred to in the Third Schedule.

The aforementioned obligation shall apply to contracts for the

purchase of products, services and buildings by public bodies in so far

as these contracts have a value equal to or greater than the thresholds

laid down in Article 7 of Directive 2004/18/EC as amended

Provided that such obligation shall apply to the contracts

of the armed forces, only to the extent that its application does not

cause any conflict with the nature and primary aim of the activities of

the armed forces and with the exception of military equipment as

defined in the Public Procurement of Contracting Authorities or

Entities in the fields of Defence and Security Regulations.

(2)

Public bodies shall be encouraged by the Minister,

including at local council level, with due regard for their respective

competences and administrative set-up, to follow the exemplary role

of Government departments to purchase only products, services and

buildings with high-energy efficiency performance. Public bodies shall

also be encouraged when tendering service contracts with significant

energy content, to assess the possibility of concluding long term

energy performance contracts that provide long-term energy savings.

(3)

Without prejudice to sub-regulation (1), when purchasing

a product package covered as a whole by a delegated act adopted under

Directive 2010/30 EU, the aggregate energy efficiency shall take

priority over the energy efficiency of individual products within that

package, by purchasing the product package that complies with the

criterion of belonging to the highest energy efficiency class.

(1)

The Minister shall ensure that the achieved

cumulative end-use energy savings shall be at least equivalent to

new savings each year from 1 st January 2014 to

(a)

31 st December 2020 of one point five per cent (1.5%) of annual

energy sales to final customers by volume, averaged over the

most recent three (3) -year period prior to 1 st January 2013.

Sales of energy, by volume, used in transport may be excluded,

in whole or in part, from this calculation; and

new savings each year from 1 st January 2021 to

(b)

st

31 December 2030 equivalent to zero point two four per cent

(0.24%) of annual final energy consumption, averaged over the

most recent three (3)-year period prior to the 1 st January 2019.

(2)

Energy savings that stem from policy measures, whether

introduced by 31 st December 2020 or after that date, may be counted

provided that the said measures result in new individual actions that

are carried out after the 31 st December 2020.

(3)

New annual savings in accordance with paragraph (b) of

sub-regulation (1) shall continue to be achieved for ten (10) year

periods after 2030, unless reviews by the Commission by 2027 and

every ten (10) years thereafter conclude that this is not necessary to

achieve the Union’s long-term energy and climate targets for 2050.

(4)

The Minister shall decide how the calculated quantity of

new savings shall be phased over the periods referred to in paragraphs

(a) and (b) of sub-regulation (1), provided that the required total

cumulative end-use energy savings have been achieved by the end of

each obligation period.

(5)

Subject to, that at least the cumulative end-use energy

savings obligation referred to in paragraph (b) of sub-regulation (1) is

achieved, the required amount of energy savings may be calculated by

one or more of the following means

(a)

applying an annual savings rate on energy sales to

final customers or on final energy consumption, averaged over

the most recent three-year period prior to 1 st January 2019;

(b)

excluding, in whole or in part, energy used in

transport from the calculation baseline;

(c)

making use of any of the options set out in sub-

regulation (7).

(6) Where the possibilities provided for in sub-regulation (5) are

made use of, there shall be established

(a)

the annual savings rate that will be applied in the

calculation of the cumulative end-use energy savings, which

shall ensure that the final amount of net energy savings is no

lower than that required under paragraph (b) of sub-regulation

(1); and

(b)

the calculation baseline, which may exclude, in

whole or in part, energy used in transport.

(7)

The Minister may, subject to sub-regulation (8)

(a)

carry out the calculation required by paragraph (a)

of sub-regulation (1) using values of one per cent (1%) in 2014

and 2015, one point two five per cent (1.25%) in 2016 and

2017, and one point five per cent (1.5%) in 2018, 2019 and

2020;

(b)

exclude from the calculation all or part of the

sales of energy used, by volume, with respect to the obligation

period referred to in paragraph (a) of sub-regulation (1), or final

energy consumed, with respect to the obligation period referred

to in paragraph (b) of that sub-regulation, by industrial

activities listed in Schedule 1 to the European Union

Greenhouse Gas Emissions Trading System for Stationary

ENERGY EFFICIENCY

Installations Regulations;

(c)

count towards the amount of required energy

savings, energy savings achieved in the energy transformation,

distribution and transmission sectors, including efficient district

heating and cooling infrastructure, as a result of implementing

the requirements set out in sub-regulations (5) and (6)(b) of

regulation 21 and sub-regulations (1) to (6) and (10) of

regulation 22. The Commission shall be informed about

intended policy measures under this paragraph for the period

from 1 st January 2021 to 31 st December 2030 as part of the

integrated national energy and climate plan. The impact of

these measures shall be calculated in accordance with the Fifth

Schedule and included in said plan;

(d) count towards the amount of required energy

savings, energy savings resulting from individual actions newly

implemented since 31 st December 2008 that continue to have

an impact in 2020 with respect to the obligation period referred

to in paragraph (a) of sub-regulation (1), and beyond 2020 with

respect to the period referred to in paragraph (b) of sub-

regulation (1), and which can be measured and verified;

(e)

count towards the amount of required energy

savings, energy savings that stem from policy measures,

provided that it can be demonstrated that those measures result

in individual actions carried out from 1 st January 2018 to 31 st

December 2020 which deliver savings after 31 st December

2020;

(f)

exclude from the calculation of the amount of

required savings, thirty per cent (30%) of the verifiable amount

of energy generated on or in buildings for own use as a result of

policy measures promoting new installations of renewable

energy technologies;

(g)

count towards the amount of required energy

savings, energy savings that exceed the energy savings required

for the obligations period from 1 st January 2014 to 31 st

December 2020, provided that these savings result from

individual actions carried out under policy measures referred to

in regulations 8 and 9, notified in the National Energy

Efficiency Action Plan and reported in the progress report.

(8)

The application of the options chosen under sub-

regulation (7) shall be separate for the periods referred to in

paragraphs (a) and (b) of sub-regulation (1) and the effect thereof shall

be separately calculated as follows

(a)

for the calculation of the amount of energy

savings required for the obligation period referred to in

paragraph (a) of sub-regulation (1), paragraphs (a) to (d) of sub-

regulation (7) may be used. All the options chosen under sub-

regulation (7) taken together shall amount to no more than

twenty-five per cent (25%) of the amount of energy savings

referred to in paragraph (a) of sub-regulation (1);

(b)

for the calculation of the amount of energy

savings required for the obligation period referred to in

paragraph (b) of sub-regulation (1), paragraphs (b) to (g) of

sub-regulation (7) may be used, provided individual actions

referred to in paragraph (d) of sub-regulation (7) continue to

have a verifiable and measurable impact after 31 st December

2020. All the options chosen under sub-regulation (7) taken

together shall not lead to a reduction of more than thirty-five

per cent (35%) of the amount of energy savings calculated in

accordance with sub-regulations (5) and (6)

Provided that regardless of whether energy used in

transport is excluded, in whole or in part, from the calculation

baseline, or whether any of the options listed in sub-regulation (7) are

made use of, the Minister shall ensure that the calculated net amount

of new savings to be achieved in the final energy consumption during

the obligation period from 1 st January 2021 to 31 st December 2030

shall not be lower than the amount resulting from the application of the

annual savings rate referred to in paragraph (b) of sub-regulation (1).

(9)

The calculation of the amount of energy savings to be

achieved over the period from 1 st January 2021 to 31 st December 2030

referred to in paragraph (b) of sub-regulation (1) shall be described in

the integrated national energy and climate plan, in accordance with

Annex III to Regulation (EU) 2018/1999, which plan shall include, if

relevant, an explanation of how the annual savings rate and the

calculation baseline were established, and how and to what extent the

options referred to in sub-regulation (7) were applied.

(10) Energy savings achieved after 31 st December 2020 shall

not count towards the amount of required energy savings for the period

from 1 st January 2014 to 31 st December 2020.

(11) Where obligated parties are allowed by the Minister to

use the option referred to in paragraph (b) of sub-regulation (6) of

regulation 8, for the purpose of paragraph (a) of sub-regulation (1) the

energy savings obtained in any given year after 2010 and before the

obligation period referred to in paragraph (a) of sub-regulation (1) may

be counted as if those energy savings had instead been obtained after

31 st December 2013 and before 1 st January 2021, provided that all of

the following circumstances apply

(a)

the energy efficiency obligation scheme was in

force at any point between the 31 st December 2009 and 31 st

December 2014 and was included in the first National Energy

Efficiency Action Plan submitted;

(b)

the savings were generated under the obligation

scheme;

(c)

the savings are calculated in accordance with the

Fifth Schedule;

(d)

the years for which the savings are counted as

having been obtained have been reported in the National

Efficiency Action Plan.

(12) Savings resulting from policy measures referred to in

regulations 8 and 9 and sub-regulation (4) of regulation 27 shall be

calculated in accordance with the Fifth Schedule.

(13) The energy savings as set out in sub-regulation (1) shall

be achieved either through the establishing of an energy efficiency

obligation scheme as laid down in regulation 8, or through the

adoption of alternative policy measures, as laid down in regulation 9,

provided that an energy efficiency obligation scheme may be

combined with alternative policy measures.

(14) The need to alleviate energy poverty shall be taken into

account in the design of policy measures aimed at the fulfilling of

energy savings obligations laid down in sub-regulation (1). A share of

energy efficiency measures under any national energy efficiency

obligation scheme, alternative policy measures or programmes or

measures financed under the Energy Efficiency National Fund is

required, to the extent appropriate, to be implemented as a priority

among vulnerable households, including those affected by energy

poverty and, where appropriate, in social housing.

(15) Information about the outcome of measures to alleviate

energy poverty as laid down in these regulations shall be included in

the integrated national energy and climate progress reports in

accordance with Regulation (EU) 2018/2000.

(16) The Minister shall demonstrate that where there is an

overlap in the impact of policy measures or individual actions, there is

no double counting of energy savings.

(1) Where the Minister decides that an amount of savings

required under sub-regulation (1) of regulation 7, shall be achieved by

way of an energy efficiency obligation scheme, the Minister shall

ensure that a framework is in place such that obligated parties referred

to in sub-regulation (2), without prejudice to sub-regulations (7) and

(8) of regulation 7, achieve their cumulative end-use energy savings

requirement as set out in sub-regulation (1) of regulation 7

Provided that where applicable, the Minister may decide

that obligated parties fulfil those savings, in whole or in part, as a

contribution to the Energy Efficiency National Fund in accordance

with sub-regulation (4) of regulation 27.

(2)

The Minister shall designate, on the basis of objective

and non-discriminatory criteria, obligated parties among energy

distributors, retail energy sales companies and transport fuel

distributors or transport fuel retailers operating in Malta. The

amount of energy savings needed to fulfil the obligation shall be

achieved by the obligated parties among final customers, designated

by the Minister, independently of the calculation made pursuant to

sub-regulation(1) of regulation 7 or, if the Minister so decides, through

certified savings stemming from other parties as described in

paragraph (a) of sub-regulation (5).

The Regulator shall put in place new authorisation conditions,

or additional authorisations conditions to existing authorisations,

issued under the Act or subsidiary legislation issued thereunder,

requiring an authorised provider to comply with any energy efficiency

obligation schemes established by the Minister, when such authorised

providers are designated as obligated parties.

(3)

Where retail energy sales companies are designated as

obligated parties under sub-regulation (2), the Regulator shall ensure

that, in fulfilling their obligations, retail energy sales companies do not

create any barriers that impede consumers from switching from one

supplier to another.

(4)

The Minister shall express the amount of energy savings

required of each obligated party in terms of either final or primary

energy consumption. The method chosen to express the amount of

energy savings required shall also be used to calculate the savings

claimed by the obligated parties. The conversion factors set out in the

Fourth Schedule shall apply.

(5)

Within an energy efficiency obligation scheme, the

Minister may do one or both of the following

(a)

permit obligated parties to count towards their

obligation certified energy savings achieved by energy

service providers or other third parties, including when

obligated parties promote measures through other state-

approved bodies or through public authorities that may involve

formal partnerships and may be in combination with other

sources of finance, provided that where this is permitted, it shall

be ensured that the certification of energy savings follows an

approval process that is clear, transparent, and open to all

market participants, and that aims to minimise the costs of

certification;

(b)

allow obligated parties to count savings obtained

in a given year as if they had instead been obtained in any of the

four previous or three following years, provided that this is not

beyond the end of the obligation periods set out in sub-

regulation (1) of regulation 7.

(6)

The Regulator shall have the right to obtain audited data

from the obligated parties within a reasonable time in regard to such

certified savings. The Regulator may share the audited data with the

Minister.

(7)

The Regulator shall put in place measurement, control

and verification systems under which documented verification is

carried out on at least a statistically significant proportion and

representative sample of the energy efficiency improvement measures

put in place by the obligated parties. The measurement, control and

verification shall be carried out independently of the obligated parties.

The Regulator may share any information resulting from such

measurement, control and verification systems with the Minister.

(8)

The Regulator shall, on an annual basis, publish the

energy savings achieved by each obligated party, or each sub-category

of obligated party, and in total under the scheme.

(9)

The Minister shall assess and if appropriate, take

measures to minimise the impact of the direct and indirect costs of

energy efficiency obligation schemes on the competitiveness of

energy-intensive industries exposed to international competition.

(1) Where the Minister opts to fulfil the obligations to

achieve the savings required under sub-regulation (1) of regulation 7

by way of alternative policy measures, the Minister shall ensure,

without prejudice to sub-regulations (7) and (8) of regulation 7, that

the energy savings required under sub-regulation (1) of regulation 7

are achieved among final customers.

(2)

For all measures other than those relating to taxation, the

Minister shall put in place measurement, control and verification

systems under which documented verification is carried out on at least

a statistically significant proportion and representative sample of the

energy efficiency improvement measures put in place by the

participating or entrusted parties. The measurement, control and

verification shall be carried out independently of the participating or

entrusted parties.

(1)

The Minister shall promote the availability to all

final customers of high quality energy audits which are cost-effective

and carried out in an independent manner by qualified and, or

accredited experts according to qualification criteria.

(2)

The energy audits referred to in sub-regulation (1) may

be carried out by in-house experts or energy auditors

Provided that the Minister shall have put in place a

scheme to assure and check their quality, including, if appropriate, an

annual random selection of at least a statistically significant

percentage of all the energy audits they carry out.

(3)

For the purpose of guaranteeing the high quality of the

energy audits and energy management systems, the Minister shall

establish transparent and non-discriminatory minimum criteria for

energy audits based on the principles set out in the Sixth Schedule.

(4)

Energy audits shall not include clauses preventing the

findings of the audit from being transferred to any qualified and, or

accredited energy service provider, on condition that the customer

does not object. Notwithstanding the foregoing, the findings of the

audit shall promptly be submitted to the Minister upon being

demanded and in any case by not later than seven (7) days from such

demand being made.

(5)

The Minister shall develop programmes to encourage

small and medium-sized enterprises to undergo energy audits, and the

subsequent implementation of the recommendations from these audits.

The Minister shall also develop programmes to raise awareness among

households about the benefits of such audits through appropriate

advice services.

(6)

On the basis of transparent and non-discriminatory

criteria and without prejudice to Union State aid law, support schemes

may be set up for SMEs including, if they have concluded voluntary

agreements, to cover costs of an energy audit and of the

implementation of highly cost-effective recommendations from the

energy audits, if the proposed measures are implemented.

(7)

The Minister shall also develop programmes to raise

awareness among households about the benefits of the audits referred

to in sub-regulation (6) through appropriate advice services. The

Minister shall encourage training programmes for the qualification of

energy auditors in order to facilitate sufficient availability of experts.

(8)

The Minister shall bring to the attention of small and

medium-sized enterprises, including through their respective

representative intermediary organisations, concrete examples of how

energy management systems could help their business.

(9)

Enterprises that are not SMEs shall commission an

energy audit carried out in an independent and cost-effective manner

by qualified and, or accredited experts or implemented and supervised

by independent authorities under national legislation by the 5 th

December 2015 and at least every four (4) years from the date of the

previous energy audit.

(10)

Energy audits shall be considered as fulfilling the

requirements of sub-regulation (9) when they are carried out in an

independent manner, on the basis of minimum criteria based on the

principles set out in the Sixth Schedule, and implemented under

voluntary agreements concluded between organisations of

stakeholders and an appointed body and supervised by the Minister, or

other bodies to which the Minister has delegated the responsibility

concerned. Access of market participants offering energy services

shall be based on transparent and non-discriminatory criteria.

(11) Enterprises, which are not SMEs, implementing an

energy or environmental management system, certified by an

independent body according to the relevant European or International

Standards, shall be exempted from the requirements of sub-regulation

(9)

Provided that the management system concerned

includes an energy audit on the basis of the minimum criteria based on

the principles set out in the Sixth Schedule.

(12) Energy audits may stand alone or be part of a broader

environmental audit. An assessment of the technical and economic

feasibility of connection to an existing or planned district heating or

cooling network shall be part of the energy audit.

(13) Without prejudice to Union State aid law, incentive and

support schemes may be implemented for the implementation of

recommendations from energy audits and similar measures.

(1)

Final customers for electricity and natural gas

shall be provided by their suppliers with competitively priced

individual meters that accurately reflect the final customer’s actual

energy consumption and that provide information on the actual time of

use

Provided that this requirement shall apply in so far as it is

technically possible, financially reasonable and proportionate in

relation to the potential energy savings.

(2)

When an existing meter is replaced, such a competitively

priced individual meter shall always be provided, unless this is

technically impossible or not cost-effective in relation to the estimated

potential savings in the long term.

(3)

When a new connection is made in a new building or a

building undergoes major renovations, as set out in the Energy

Performance of Buildings Regulations, such competitively priced

individual meters shall always be provided.

(4)

Where, and to the extent that, intelligent metering

systems are implemented and smart meters for gas and, or electricity

are rolled out in accordance with the Electricity Market Regulations,

and the Natural Gas Market Regulations

(a)

metering systems shall provide to final customers

information on actual time of use. The objectives of energy

efficiency and benefits for final customers shall be fully taken

into account when establishing the minimum functionalities of

the meters and the obligations imposed on market participants;

(b)

the security of the smart meters and data

communication, and the privacy of final customers, shall be

ensured in compliance with relevant Union data protection and

privacy legislation;

(c)

in the case of electricity and on request of the final

customer, meter operators are required to ensure that the meter

or meters can account for electricity put into the grid from the

final customer’s premises;

(d)

if final customers request it, metering data on their

electricity input and off-take shall be made available to them or

to a third party acting on behalf of the final customer in an

easily understandable format that they can use to compare deals

on a like-for-like basis;

(e)

appropriate advice and information shall be given

to customers at the time of installation of smart meters, notably

about their full potential with regard to meter reading

management and the monitoring of energy consumption.

(1)

Final customers for district heating, district

cooling and domestic hot water shall be provided by their suppliers

with competitively priced individual meters that accurately reflect the

final customer’s actual energy consumption.

(2) Where heating, cooling or domestic hot water is supplied

to a building from a central source that serves multiple buildings, or

from a district heating or district cooling system, a meter shall be

installed at the heat exchanger or point of delivery.

(1)

In multi-apartment and multi-purpose buildings

with a central heating or central cooling source, or supplied from a

district heating or district cooling system, the supplier shall install

individual meters to measure the consumption of heating, cooling or

domestic hot water for each building unit, where technically feasible

and cost effective in terms of being proportionate in relation to the

potential energy savings

Provided that where the supplier shows to the Building

and Construction Authority’s satisfaction that the use of individual

meters is not technically feasible or where it is not cost-efficient to

measure heat consumption in each building unit, the supplier shall use

individual heat cost allocators to measure heat consumption at each

radiator unless it is shown by the supplier that the installation of heat

cost allocators would not be cost-efficient

Provided further that in those cases, alternative cost-

efficient methods of heat consumption measurement may be

considered.

(2) The general criteria, methodologies and, or procedures to

determine technical non-feasibility and non-cost effectiveness shall be

clearly set out and published by the Building and Construction

Authority.

(3) Notwithstanding sub-regulation (1), individual meters

shall be provided by the supplier for domestic hot water in new multi-

apartment buildings and residential parts of new multi-purpose

buildings that are equipped with a central heating source for domestic

hot water or are supplied from district heating systems.

(4) Where in the assessment of the Building and

Construction Authority, multi-apartment or multi-purpose buildings

supplied from district heating or district cooling, or buildings with

own common heating or cooling become prevalent, the Regulator shall

put in place transparent, publicly available national rules on the

allocation of the cost of heating, cooling and domestic hot water

consumption in such buildings to ensure transparency and accuracy of

accounting for individual consumption

Provided that when the Building and Construction

Authority determines that multi-apartment or multi-purpose buildings

supplied from district heating or district cooling, or buildings with

own common heating or cooling have become prevalent, the Regulator

shall be officially informed of such a decision and the Building and

Construction Authority shall provide to the Regulator all the necessary

information and data relevant to the reaching of such a decision.

(1)

For the purposes of regulations 12 and 13, meters

and heat cost allocators installed after 25 th October 2020 shall be

remotely readable devices. The conditions of technical feasibility and

cost effectiveness set out in sub-regulations (1) and (2) of regulation

13 shall continue to apply.

(2) Meters and heat cost allocators which are not remotely

readable but which have already been installed, shall be rendered by

the supplier remotely readable or replaced with remotely readable

devices by 1 st January 2027, provided that this shall not be required if

it is shown by the supplier that this is not cost-efficient.

(1) Where final customers do not have smart meters

referred to in the Electricity Market Regulations and the Natural Gas

Market Regulations, by not later than the 31st December 2014, billing

information shall be accurate and based on actual consumption, in

accordance with item 1.1 of Part I of the Seventh Schedule, for

electricity and gas, where this is technically possible and economically

justified.

(2)

Meters installed in accordance with the Electricity

Market Regulations and the Natural Gas Market Regulations shall

enable accurate billing information based on actual consumption. Final

customers shall have the possibility of 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 (3) previous

years or the period since the start of the supply contract if this is

shorter. The data shall correspond with 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. These data shall be made available

to the final customer via internet or the meter interface for the

period of at least twenty-four (24) previous months or the

period since the start of the supply contract if this is shorter.

(3)

Independently of whether smart meters have been

installed or not, energy suppliers shall

(a)

to the extent that information on their energy

billing and historical consumption of final customers is

available, on the request of the final customer make such

information available to an energy service provider designated

by the final customer;

(b)

offer to final customers the option of electronic

billing information and bills. Customers shall receive on

request a clear and understandable explanation of how their bill

was derived, especially where bills are not based on actual

consumption;

(c)

make available appropriate information with the

bill to provide final customers with a comprehensive account of

current energy costs, in accordance with Part I of the Seventh

Schedule;

(d)

on request of the final customer, not consider the

information contained in these bills to constitute a request for

payment. Suppliers of energy sources shall offer flexible

arrangements for actual payments;

(e)

provide to consumers on demand, information and

estimates for energy costs in a timely manner and in an easily

understandable format enabling consumers to compare deals on

a like-for-like basis.

(1)

Where meters or heat cost allocators are installed,

energy suppliers shall ensure that the billing and consumption

information is reliable, accurate and based on actual consumption or

heat cost allocator readings, in accordance with items 1 and 2 of Part II

of the Seventh Schedule for all final users, namely for natural or legal

persons purchasing heating, cooling or domestic hot water for their

own end-use, or natural or legal persons occupying an individual

building or a unit in a multi-apartment or multi-purpose building

supplied with heating, cooling or domestic hot water from a central

source who has no direct or individual contract with the energy

supplier

Provided that, save in the case of sub-metered

consumption based on heat cost allocators under regulation 13 such

obligation may be fulfilled by a system of regular self-reading by the

final customer or final user whereby they communicate readings from

their meter. Only where the final customer or final user has not

provided a meter reading for a given billing interval shall billing be

based on estimated consumption or a flat rate.

(2)

The supplier shall

(a)

ensure that, if information on the energy billing

and historical consumption or heat cost allocator readings of

final users is available, it be made available upon request by the

final user, to an energy service provider designated by the final

user;

(b)

ensure that final customers are offered the option

of electronic billing information and bills;

(c)

ensure that clear and comprehensible information

is provided with the bill to all final users in accordance with

item 3 of Part II of the Seventh Schedule;

(d)

promote cyber security and ensure the privacy and

data protection of final users in accordance with applicable

Union law.

(3) The provision of information by the supplier, at the

request of the final customer, shall not be considered to constitute a

request for payment and in such cases the supplier shall offer flexible

arrangements for actual payment.

Energy suppliers shall ensure that final customers receive

all their bills and billing information for energy consumption free of

charge and that final customers have access to their consumption data

in an appropriate way and free of charge.

(1)

Final users shall receive from their supplier all

their bills and billing information for energy consumption free of

charge and shall have access to their consumption data in an

appropriate way and free of charge.

(2)

Notwithstanding sub-regulation (1), the distribution of

costs of billing information for the individual consumption of heating

and cooling in multi-apartment and multi-purpose buildings pursuant

to regulation 13 shall be carried out on a non-profit basis. Costs

resulting from the assignment of this task to a third party, such as a

service provider or the local energy supplier, covering the measuring,

allocation and accounting for actual individual consumption in such

buildings, may be passed on to the final customers to the extent that

such costs are reasonable.

(3)

In order to ensure reasonable costs for sub-metering

services as referred to in sub-regulation (2), the Minister may

stimulate competition in that service sector through the introduction of

appropriate measures, which may include recommending or otherwise

promoting the use any of

(a)

tendering;

(b)

interoperable devices;

(c)

systems facilitating switching between service

providers.

(1)

The Minister shall take appropriate measures to

promote and facilitate an efficient use of energy by small energy

customers, including domestic customers. These measures may be part

of a national strategy.

(2)

For the purposes of sub-regulation (1), these measures

shall include one or more of the elements listed below

(a)

a range of instruments and policies to promote

behavioural change which may include

(i)

fiscal incentives;

(ii)

access to finance, grants or subsidies;

(iii)

information provision;

(iv)

exemplary projects;

(v)

workplace activities;

(b)

ways and means to engage consumers and

consumer organisations during the possible roll-out of smart

meters through communication of

(i)

cost-effective and easy-to-achieve changes

in energy use;

(ii)

information on energy efficiency measures.

The Regulator may impose an administrative fine not

exceeding ten thousand euro (€10,000) 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 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.

(1)

By the 31st of December 2015, the Minister shall

carry out a comprehensive assessment of the potential for the

application of high-efficiency cogeneration and efficient district

heating and cooling, containing the information set out in the Eighth

Schedule to these regulations. The Minister shall notify such

comprehensive assessment to the Commission by the 31 st December

2015. If an equivalent assessment has already been carried out, the

Minister shall notify an equivalent assessment to the Commission.

(2)

The comprehensive assessment shall take full account of

the analysis of the national potentials for high-efficiency cogeneration

carried out under Directive 2004/8/EC. The assessment shall be

updated and notified to the Commission every five (5) years, subject to

a request by the Commission at least one year before the due date.

(3)

The Minister shall adopt policies which encourage that

the potential of using efficient heating and cooling systems, in

particular those using high efficiency cogeneration, is duly taken into

account at local and regional levels. Account shall be taken of the

potential for developing local and regional heat markets.

(4)

For the purpose of the assessment referred to in sub-

regulation (1), the Minister shall carry out a cost-benefit analysis

covering the territory based on climate conditions, economic

feasibility and technical suitability in accordance with the Eighth

Schedule The cost-benefit analysis shall be capable of facilitating the

identification of the most resource and cost-efficient solutions to

meeting heating and cooling requirements. The cost-benefit analysis

may be part of an environmental assessment, under the Strategic

Environmental Assessment Regulations for the assessment.

(5)

Where the assessments referred to in sub-regulation (1)

and the analysis mentioned in sub-regulation (4) identify a potential

for the application of high-efficiency cogeneration and, or efficient

district heating and cooling whose benefits exceed the costs, the

Minister shall take adequate measures for efficient district heating and

cooling infrastructure to be developed and, or to accommodate the

development of high-efficiency cogeneration and the use of heating

and cooling from waste heat and renewable energy sources in

accordance with sub-regulations (1), (6) and (10). Where the

assessment referred to in sub-regulation (1) and the analysis referred to

in sub-regulation (4) do not identify a potential whose benefits exceed

the costs, including the administrative costs of carrying out the cost-

benefit analysis referred to in sub-regulation (6), installations shall be

exempted from the requirements laid down in those sub-regulations.

(6)

A cost-benefit analysis in accordance with the Ninth

Schedule shall be carried out by the project promoter when, after the

5 th June 2014

(a)

a new thermal electricity generation installation

with a total thermal input exceeding 20 MW is planned, to

assess the cost and benefits of providing for the operation of the

installation as high-efficiency cogeneration installation;

(b)

an existing thermal electricity generation

installation with a total thermal input exceeding 20 MW is

substantially refurbished, to assess the cost and benefits of

converting it to high efficiency cogeneration;

(c)

an industrial installation with a total thermal input

exceeding 20 MW generating waste heat at a useful temperature

level is planned or substantially refurbished, to assess the cost

and benefits of utilising the waste heat to satisfy economically

justified demand, including through cogeneration, and of the

connection of this installation to a district heating and cooling

network;

(d)

a new district heating and cooling network is

planned or in an existing district heating or cooling network a

new energy production installation with a total thermal input

exceeding 20 MW is planned or an existing such installation is

to be substantially refurbished, to assess the cost and benefits of

utilising the waste heat from nearby industrial installations.

(7)

The fitting of equipment to capture carbon dioxide

produced by a combustion installation with a view to its being

geologically stored as provided for in the Geological Storage of

Carbon Dioxide Regulations shall not be considered as refurbishment

for the purpose of sub-regulation (6)(b), (c) and (d). The cost-benefit

analysis referred to in sub-regulation (6)(c) and (d) shall be carried out

in co-operation with the companies responsible for the operation of the

district heating and cooling networks.

(8)

The following installations shall be exempt from sub-

regulation (6)

(a)

those peak load and back-up electricity generating

installations which are planned to operate under one thousand

five hundred (1,500) operating hours per year as a rolling

average over a period of five (5) years, based on a verification

procedure established by the Regulator ensuring that this

exemption criterion is met;

(b)

nuclear power installations;

(c)

installations that need to be located close to a

geological storage site approved under the Geological Storage

of Carbon Dioxide Regulations.

(9)

The Minister may also lay down thresholds, expressed in

terms of the amount of available useful waste heat, the demand for

heat or the distances between industrial installations and district

heating networks, for exempting individual installations from the

provisions of sub-regulation (6)(c) and (d).

The Minister shall notify to the Commission exemptions

adopted under this sub-regulation by the 31 st of December 2013. Any

subsequent changes to such exemptions thereafter shall also be

notified by the Minister to the Commission.

(10) Authorisation criteria as referred to in Article 7 of

Directive 2009/72/EC, or equivalent permit criteria, shall

(a)

take into account the outcome of the

comprehensive assessments referred to in sub-regulation (1);

(b)

ensure that the requirements of sub-regulation (6)

are fulfilled; and

(c)

take into account the outcome of cost-benefit

analysis referred to in sub-regulation (6).

(11) The Regulator may exempt individual installations from

being required, by the authorisation and permit criteria referred to in

sub-regulation (10), to implement options whose benefits exceed their

costs, if there are imperative reasons of law, ownership or finance for

so doing. In these cases the Minister shall submit a motivated

notification of his decision to the Commission within three (3) months

of the date of the taking of the Minister’s decision.

(12) Sub-regulations (6), (8), (10) and (11) shall apply to

installations covered by the Industrial Emissions (Large Combustion

Plants) Regulations without prejudice to the requirements of those

regulations.

(13) On the basis of the harmonised efficiency reference

values referred to in paragraph (f) of the Second Schedule, the

Regulator shall ensure that the origin of electricity produced from

high-efficiency cogeneration can be guaranteed according to objective,

transparent and non-discriminatory criteria laid down by the Minister.

The Regulator shall ensure that this guarantee of origin complies with

the requirements and contains at least the information specified in the

Tenth Schedule.

The Regulator shall mutually recognise guarantees of origin

from other Member States, exclusively as proof of the information

referred to in this sub-regulation. Any refusal to recognise a guarantee

of origin as such proof, in particular for reasons relating to the

prevention of fraud, must be based on objective, transparent and non-

discriminatory criteria. The Minister shall notify the Commission of

such refusal and its justification.

(14) Any available support for cogeneration shall be subject

to the electricity produced originating from high-efficiency

cogeneration and the waste heat being effectively used to achieve

primary energy savings. Public support to cogeneration and district

heating generation and networks shall be subject to State aid rules,

where applicable.

(1)

The Regulator shall pay due regard to energy

efficiency in carrying out the regulatory tasks specified in the

Electricity Market Regulations and the Natural Gas Market

Regulations regarding its decisions on the operation of the gas and

electricity infrastructure. The Regulator shall in particular through the

development of network tariffs and regulations, within the framework

of the Electricity Market Regulations and taking into account the costs

and benefits of each measure, provide incentives for grid operators to

make available system services to network users permitting them to

implement energy efficiency improvement measures in the context of

the continuing deployment of smart grids. Such systems services may

be determined by the system operator and shall not adversely impact

the security of the system. For electricity, network regulation and

network tariffs shall fulfil the criteria in the Eleventh Schedule, taking

into account guidelines and codes developed pursuant to Regulation

714/2009.

By the 30 th June 2015, distribution system operators

(2)

shall ensure that

(a)

an assessment is undertaken of the energy

efficiency potentials of their gas and electricity infrastructure,

notably regarding transmission, distribution, load management

and interoperability, and connection to energy generating

installations, including access possibilities for micro energy

generators;

(b)

concrete measures and investments are identified

for the introduction of cost-effective energy efficiency

improvements in the network infrastructure, with a timetable

for their introduction.

(3)

The Regulator may permit components of schemes and

tariff structures with a social aim for net-bound energy transmission

and distribution

Provided that any disruptive effects on the transmission

and distribution system are kept to the minimum necessary and are not

disproportionate to the social aim.

(4)

The distribution system operator, subject to the approval

of the Regulator, shall remove those incentives in transmission and

distribution tariffs that are detrimental to the overall efficiency

(including energy efficiency) of the generation, transmission,

distribution and supply of electricity or those that might hamper

participation of demand response, in balancing markets and ancillary

services procurement. Network operators shall be incentivised to

improve efficiency in infrastructure design and operation, and, within

the framework of the Electricity Market Regulations, that tariffs allow

suppliers to improve consumer participation in system efficiency,

including demand response depending on national circumstances.

(5)

Transmission system operators and distribution system

operators shall comply with the requirements set out in the Twelfth

Schedule. The transmission system operator and the distribution

system operator shall facilitate the connection to the grid system of

electricity produced from high-efficiency cogeneration from small

scale and micro cogeneration units. The Regulator shall, where

appropriate, take steps to encourage network operators to adopt a

simple notification "install and inform" process for the installation of

micro cogeneration units to simplify and shorten authorisation

procedures for individual citizens and installers.

(6)

Subject to the requirements relating to the maintenance

of the reliability and safety of the grid, where this is technically and

economically feasible with the mode of operation of the high-

efficiency cogeneration installation, high-efficiency cogeneration

operators shall offer balancing services and other operational services

at the level of transmission system operator or distribution system

operator. The transmission system operator and the distribution system

operator shall ensure that such services are part of a services bidding

process which is transparent, non-discriminatory and open to scrutiny.

Where appropriate, the transmission system operator and the

distribution operator shall encourage high-efficiency cogeneration to

be sited close to areas of demand by reducing the connection and use-

of-system charges.

(7)

Producers

of

electricity

from

high-efficiency

cogeneration wishing to be connected to the grid may issue a call for

tender for the connection work.

(8)

The Regulator shall encourage demand side resources,

such as demand response, to participate alongside supply in wholesale

and retail markets. Subject to technical constraints inherent in

managing networks, the transmission system operator and the

distribution system operator, in meeting requirements for balancing

and ancillary services, shall treat demand response providers,

including aggregators, in a non-discriminatory manner, on the basis of

their technical capabilities.

(9)

Subject to technical constraints inherent in managing

networks, the transmission system operator and the distribution system

operator shall, subject to the approval of the Regulator, promote

demand response’s access to and participation in balancing, reserve

and other system services markets, and the transmission and

distribution system operator shall in close cooperation with demand

service providers and consumers, define the technical modalities for

participation in those markets on the basis of the technical

requirements of those markets and the capabilities of demand

response. Such specifications shall include the participation of

aggregators.

(10) When reporting under Directive 2010/75/EU, and

without prejudice to Article 9(2) of that Directive, the authority

responsible for reporting under Directive 2010/75/EU shall consider

including information on energy efficiency levels of installations

undertaking the combustion of fuels with total rated thermal input of

50 MW or more in the light of the relevant best available techniques

developed in accordance with Directive 2010/75/EU and Directive

2008/1/EC.

The authority responsible for reporting under Directive 2010/

75/EU may encourage operators of installations referred to in this sub-

regulation undertaking the combustion of fuels with total rated thermal

input of 50 MW or more to improve their annual average net

operational rates.

(1)

Certification and, or accreditation schemes and, or

equivalent qualification schemes, including, where necessary, suitable

training programmes, shall be made available by the 1 st January 2015

for providers of energy services, energy audits, energy managers and

installers of energy-related building elements where the national level

of technical competence, objectivity and reliability is insufficient.

(2)

The Minister shall ensure that the schemes referred to in

sub-regulation (1) provide transparency to consumers, are reliable and

contribute to national energy efficiency objectives.

(3)

The Minister shall make publicly available the

certification and, or accreditation schemes or equivalent qualification

schemes referred to in sub-regulation (1). The Minister shall take

appropriate measures to make consumers aware of the availability of

qualification and, or certification schemes, in accordance with sub-

regulation (1) of regulation 25.

(1)

The Building and Construction Authority, the

Minister and entrusted parties shall provide information on available

energy efficiency mechanisms and financial and legal frameworks,

which information shall be transparent and widely disseminated to all

relevant market actors, such as consumers, builders, architects,

engineers, environmental and energy auditors and installers of

building elements and shall provide information to banks and other

financial institutions on possibilities of participating, including

through the creation of public and, or private partnerships, in the

financing of energy efficiency improvement measures.

(2)

The Minister shall establish appropriate conditions for

market operators to provide adequate and targeted information and

advice to energy consumers on energy efficiency.

(3)

The Minister, with the participation of stakeholders,

including local and regional authorities, shall promote suitable

information, awareness-raising and training initiatives to inform

citizens of the benefits and practicalities of taking energy efficiency

improvement measures.

(1)

The Minister shall promote the energy services

market and access for small and medium-sized enterprises to this

market by

(a)

disseminating

clear

and

easily

accessible

information on

(i)

available energy service contracts and

clauses that should be included in such contracts to

guarantee energy savings and final customers’ rights;

(ii)

financial instruments, incentives, grants

and loans to support energy efficiency service projects;

(b)

encouraging the development of quality labels,

inter alia by trade associations;

(c)

making publicly available and regularly updating

a list of available energy service providers who are qualified

and, or certified and their qualifications and, or certifications in

accordance with regulation 23, or provide an interface where

energy service providers can provide information;

(d)

supporting the public sector in taking up energy

service offers, notably for building refurbishment, by

(i)

providing model contracts for energy

performance contracting which at least include the items

listed in the Thirteenth Schedule;

(ii)

providing information on best practices for

energy performance contracting, including, if available,

cost and benefit analysis using a life-cycle approach.

(2)

The Minister shall support the proper functioning of the

energy services market, where appropriate, by

(a)

identifying and publicising the point of contact

where final customers can obtain the information referred to in

sub-regulation (1);

(b)

taking, if necessary, measures to remove the

regulatory and non-regulatory barriers that impede the uptake

of energy performance contracting and other energy efficiency

service models for the identification and, or implementation of

energy saving measures;

(c)

considering putting in place or assigning the role

of an independent mechanism, such as an ombudsman, to

ensure the efficient handling of complaints and out-of-court

settlement of disputes arising from energy service contracts;

(d)

enabling independent market intermediaries to

play a role in stimulating market development on the demand

and supply sides.

(3)

Energy distributors, distribution system operators and

retail energy sales companies shall refrain from any activities that may

impede the demand for and delivery of energy services or other energy

efficiency improvement measures, or hinder the development of

markets for energy services or other energy efficiency improvement

measures, including foreclosing the market for competitors or abusing

dominant positions.

(1)

Without prejudice to the basic principles of the

property and tenancy laws, the Minister shall evaluate and if necessary

take appropriate measures to remove regulatory and non-regulatory

barriers to energy efficiency, notably as regards

(a)

the split of incentives between the owner and the

tenant of a building or among owners, with a view to ensuring

that these parties are not deterred from making efficiency-

improving investments that they would otherwise have made by

the fact that they will not individually obtain the full benefits or

by the absence of rules for dividing the costs and benefits

between them, including national rules and measures regulating

multi-owner property decision-making processes;

(b)

legal

and

regulatory

provisions,

and

administrative practices, regarding public purchasing and

annual budgeting and accounting, with a view to ensuring that

individual public bodies are not deterred from making

investments in improving energy efficiency and minimising

expected life-cycle costs and from using energy performance

contracting and other third-party financing mechanisms on a

long-term contractual basis.

Such measures to remove barriers may include providing

incentives, repealing or amending legal or regulatory provisions, or

adopting guidelines and interpretative communications, or simplifying

administrative procedures. These measures may be combined with the

provision of education, training and specific information and technical

assistance on energy efficiency.

(2)

The evaluation of barriers and measures referred to in

sub-regulation (1) shall be notified to the Commission in the first

National Energy Efficiency Action Plan.

(1)

Without prejudice to Articles 107 and 108 of the

Treaty, the Minister shall facilitate the establishment of financing

facilities, or use of existing ones, for energy efficiency improvement

measures to maximise the benefits of multiple streams of financing.

(2)

The Minister may set up an Energy Efficiency National

Fund. The purpose of this fund shall be to support national energy

efficiency initiatives.

(3)

The obligations set out in sub-regulation (1) of regulation

5 may be fulfilled by annual contributions to the Energy Efficiency

National Fund of an equal amount to the investments required to

achieve the obligations.

(4)

Obligated parties can fulfil their obligations set out in

sub-regulation (1) of regulation 7 by contributing annually to the

Energy Efficiency National Fund an equal amount to the investments

required to achieve their obligations.

(5)

Revenues from annual emission allocations under

Decision No 406/2009/EC may be used for the development of

innovative financing mechanisms to give practical effect to the

objective in regulation 4 of improving the energy performance of

buildings.

(6)

The Minister shall, for the purpose of mobilising private

financing of energy efficiency measures and energy renovation

(a)

consider ways to make better use of energy audits

under regulation 10 to influence decision-making;

(b)

make optimal use of the possibilities and tools

proposed in the smart finance for smart buildings initiative. *

For the purpose of comparison of energy savings and

conversion to a comparable unit, the conversion factors in the Fourth

Schedule shall apply unless the use of other conversion factors can be

justified.

* Smart Finance for Smart Buildings (SFSB) Financial Instrument https://

ec.europa.eu/info/news/smart-finance-smart-buildings-investing-energy-efficiency-

buildings-2018-feb-07_en

The Regulator shall prepare before the 30th April of each

year statistics on national electricity and heat production from high

and low efficiency cogeneration, in accordance with the methodology

shown in the First Schedule, in relation to total heat and electricity

capacities. The Regulator shall also prepare annual statistics on

cogeneration heat and electricity capacities and fuels for cogeneration,

and on district heating and cooling production and capacities, in

relation to total heat and electricity capacities. The Regulator shall

prepare statistics on primary energy savings achieved by application of

cogeneration in accordance with the methodology shown in the

Second Schedule.

Any person who

(a)

wilfully or through negligence acts in breach of

any provision of these regulations;

(b)

fails to comply with any lawful order by an

inspector, employee or officer of the Regulator in execution of

their duties in terms of these regulations;

(c)

makes a declaration for any of the purposes of

these regulations which is false, misleading or incorrect in any

material respect,

shall be guilty of an offence against these regulations and shall,

on conviction, be liable to a fine (multa) of not more than sixty-nine

thousand and eight hundred and eighty-one euro and twenty cents

(€69,881.20), or to one thousand and three hundred and ninety-seven

euro and sixty-two cents (€1,397.62) for each day during which the

offence persists.

(1)

The Energy Efficiency

and

Cogeneration

Regulations are hereby being repealed.

(2)

The repeal of the regulations referred to in sub-regulation

(1) shall not affect anything done or required to be done under those

regulations.

First Schedule

(regulation 29)

General principles for the calculation of electricity from

cogeneration

Part I. General principles

Values used for calculation of electricity from cogeneration

shall be determined on the basis of the expected or actual operation of

the unit under normal conditions of use. For micro-cogeneration units

the calculation may be based on certified values.

(a)

Electricity production from cogeneration shall be

considered equal to total annual electricity production of the

unit measured at the outlet of the main generators.

(i)

in cogeneration units of type (b), (d), (e),

(f), (g) and (h) referred to in Part II with an annual

overall efficiency at a level of at least seventy-five per

cent (75%), and

(ii)

in cogeneration units of type (a) and (c)

referred to in Part II with an annual overall efficiency at a

level of at least eighty per cent (80%).

(b)

In cogeneration units with an annual overall

efficiency below the value referred to in paragraph (a)(i)

(cogeneration units of type (b), (d), (e), (f), (g) and (h) referred

to in Part II) or with an annual overall efficiency below the

value referred to in paragraph (a)(ii) (cogeneration units of type

(a) and (c) referred to in Part II) cogeneration is calculated

according to the following formula

E CHP = H CHP *C

where

E CHP is the amount of electricity from cogeneration

C is the power to heat ratio

H CHP is the amount of useful heat from cogeneration (calculated

for this purpose as total heat production minus any heat produced in

separate boilers or by live steam extraction from the steam generator

before the turbine).

The calculation of electricity from cogeneration must be based

on the actual power to heat ratio. If the actual power to heat ratio of a

cogeneration unit is not known, the following default values may be

used, notably for statistical purposes, for units of type (a), (b), (c), (d)

and (e) referred to in Part II provided that the calculated cogeneration

electricity is less or equal to total electricity production of the unit

Default power to heat ratio, C

Type of the unit

Combined cycle gas turbine with heat

0,95

recovery

Steam back pressure turbine

0,45

Steam condensing extraction turbine

0,45

Gas turbine with heat recovery

0,55

Internal combustion engine

0,75

If the Regulator introduces default values for power to heat

ratios for units of type (f), (g), (h), (i), (j) and (k) referred to in Part II,

such default values shall be published and shall be notified to the

Commission.

(c)

If a share of the energy content of the fuel input to

the cogeneration process is recovered in chemicals and

recycled, this share can be subtracted from the fuel input before

calculating the overall efficiency used in paragraphs (a) and (b)

of this Schedule.

(d)

The Regulator may determine the power to heat

ratio as the ratio between electricity and useful heat when

operating in cogeneration mode at a lower capacity using

operational data of the specific unit.

(e)

The Regulator may use other reporting periods

than one year for the purpose of the calculations according to

paragraphs (a) and (b) of this Schedule.

Part II. Cogeneration technologies covered by these regulations

(a)

Combined cycle gas turbine with heat recovery;

(b)

Steam backpressure turbine;

(c)

Steam condensing extraction turbine;

(d)

Gas turbine with heat recovery;

(e)

Internal combustion engine;

(f)

Microturbines;

(g)

Stirling engines;

(h)

Fuel cells;

(i)

Steam engines;

(j)

Organic Rankine cycles;

(k)

Any other type of technology or combination

thereof falling under the definition "cogeneration" laid down in

regulation 2.

When implementing and applying the general principles for the

calculation of electricity from cogeneration, the Minister shall use the

detailed Guidelines established by Decision 2008/952/EC.

Second Schedule

(regulations 21(13) and 29(3))

Methodology for determining the efficiency of the cogeneration

process

Values used for calculation of efficiency of cogeneration and

primary energy savings shall be determined on the basis of the

expected or actual operation of the unit under normal conditions of

use.

(a)

High-efficiency cogeneration

For the purpose of these regulations

high-efficiency

cogeneration shall fulfil the following criteria

(i)

cogeneration production from cogeneration

units shall provide primary energy savings calculated

according to paragraph (b) of this Schedule of at least ten

per cent (10%) compared with the references for separate

production of heat and electricity;

(ii)

production from small scale and micro

cogeneration units providing primary energy savings

may qualify as high-efficiency cogeneration.

(b)

Calculation of primary energy savings

The amount of primary energy savings provided by

cogeneration production defined in accordance with the First Schedule

shall be calculated on the basis of the following formula

Where

PES is primary energy savings.

CHP Hη is the heat efficiency of the cogeneration production

defined as annual useful heat output divided by the fuel input used to

produce the sum of useful heat output and electricity from

cogeneration.

Ref Hη is the efficiency reference value for separate heat

production.

CHP Eη is the electrical efficiency of the cogeneration

production defined as annual electricity from cogeneration divided by

the fuel input used to produce the sum of useful heat output and

electricity from cogeneration. Where a cogeneration unit generates

mechanical energy, the annual electricity from cogeneration may be

increased by an additional element representing the amount of

electricity which is equivalent to that of mechanical energy. This

additional element will not create a right to issue guarantees of origin

in accordance with sub-regulation (13) of regulation 21.

Ref Eη is the efficiency reference value for separate electricity

production.

(c)

Calculations of energy savings using alternative

calculation

The Minister may calculate primary energy savings from a

production of heat and electricity and mechanical energy as below

without using the First Schedule to exclude the non-cogenerated heat

and electricity parts of the same process. Such a production can be

regarded as high-efficiency cogeneration provided it fulfils the

efficiency criteria in paragraph (a) of this Schedule and, for

cogeneration units with an electrical capacity larger than 25 MW, the

overall efficiency is above seventy per cent (70%). However,

specification of the quantity of electricity from cogeneration produced

in such a production, for issuing a guarantee of origin and for

statistical purposes, shall be determined in accordance with the First

Schedule.

If primary energy savings for a process are calculated using

alternative calculation as above the primary energy savings shall be

calculated using the formula in paragraph (b) of this Schedule

replacing: "CHP Hη" with "Hη" and "CHP Eη" with "Eη", where

Hη shall mean the heat efficiency of the process, defined as the

annual heat output divided by the fuel input used to produce the sum of

heat output and electricity output.

Eη shall mean the electricity efficiency of the process, defined

as the annual electricity output divided by the fuel input used to

produce the sum of heat output and electricity output. Where a

cogeneration unit generates mechanical energy, the annual electricity

from cogeneration maybe increased by an additional element

representing the amount of electricity which is equivalent to that of

mechanical energy. This additional element will not create a right to

issue guarantees of origin in accordance with sub-regulation (13) of

regulation 21.

(d)

The Regulator may use other reporting periods

than one year for the purpose of the calculations according to

paragraphs (b) and (c) of this Schedule.

(e)

For micro-cogeneration units the calculation of

primary energy savings may be based on certified data.

(f)

Efficiency reference

values

for

separate

production of heat and electricity

The harmonised efficiency reference values shall consist of a

matrix of values differentiated by relevant factors, including year of

construction and types of fuel, and must be based on a well-

documented analysis taking, inter alia, into account data from

operational use under realistic conditions, fuel mix and climate

conditions as well as applied cogeneration technologies.

The efficiency reference values for separate production of heat

and electricity in accordance with the formula set out in paragraph (b)

shall establish the operating efficiency of the separate heat and

electricity production that cogeneration is intended to substitute.

The efficiency reference values shall be calculated according to

the following principles

1. For cogeneration units as defined in regulation 2 the

comparison with separate electricity production shall be based on the

principle that the same fuel categories are compared.

2. Each cogeneration unit shall be compared with the best

available and economically justifiable technology for separate

production of heat and electricity on the market in the year of

construction of the cogeneration unit.

3. The efficiency reference values for cogeneration units

older than ten (10) years of age shall be fixed on the reference values

of units of ten (10) years of age.

4. The efficiency reference values for separate electricity

production and heat production shall reflect the climatic differences

between Member States.

Third Schedule

(regulation 6(1))

Energy efficiency requirements for purchasing products, services

and buildings by Government

Government when purchasing products, services or buildings,

insofar as this is consistent with cost-effectiveness, economical

feasibility, wider sustainability, technical suitability, as well as

sufficient competition, shall

(a)

where a product is covered by a delegated act

adopted under Directive 2010/30/EU or Directive 92/75/EEC,

purchase only the products that comply with the criterion of

belonging to the highest energy efficiency class possible in the

light of the need to ensure sufficient competition;

(b)

where a product not covered under paragraph (a)

of this Schedule is covered by an implementing measure under

the Framework for the Setting of Ecodesign Requirements for

Energy-Related Products Regulations, adopted after the entry

into force of these regulations, purchase only products that

comply with energy efficiency benchmarks specified in that

implementing measure;

(c)

purchase office equipment products covered by

Council Decision 2006/1005/EC that comply with energy

efficiency requirements not less demanding than those listed in

Annex C of the Agreement attached to that Decision;

(d)

purchase only tyres that comply with the criterion

of having the highest fuel energy efficiency class, as defined by

Regulation (EC) No 1222/2009. This requirement shall not

prevent public bodies from purchasing tyres with the highest

wet grip class or external rolling noise class where justified by

safety or public health reasons;

(e)

require in their tenders for service contracts that

service providers use, for the purposes of providing the services

in question, only products that comply with the requirements

referred to in paragraphs (a) to (d) of this Schedule, when

providing the services in question. This requirement shall apply

only to new products purchased by service providers partially

or wholly for the purpose of providing the service in question;

(f)

purchase, or make new rental agreements for, only

buildings that comply at least with the minimum energy

performance requirements referred to in sub-regulation (1) of

regulation 5 unless the purpose of the purchase is

(i)

deep renovation or demolition;

(ii)

the public body intends to re-sell the

building without using it for its own purposes; or

(iii) to preserve it as a building officially

protected as part of a designated environment, or because

of its special architectural or historical merit.

Compliance with these requirements shall be verified by means

of the energy performance certificates referred to in regulation 12 of

the Energy Performance of Buildings Regulations.

Fourth Schedule

(regulations 8(4) and 28)

Energy content of selected fuels for end use - conversion table *

Energy commodity

kJ (NCV)

kgoe (NCV)

kWh (NCV)

1 kg coke

28500

0,676

7,917

1 kg hard coal

17200 – 30700

0,411 - 0,733

4,778 - 8,528

1 kg brown coal

20000

0,478

5,556

briquettes

1 kg black lignite

10500 – 21000

0,251 - 0,502

2,917 - 5,833

1 kg brown coal

5600 – 10500

0,134 - 0,251

1,556 - 2,917

1 kg oil shale

8000 – 9000

0,191 - 0,215

2,222 - 2,500

1 kg peat

7800 – 13800

0,186 - 0,330

2,167 - 3,833

1 kg peat briquettes

16000 – 16800

0,382 - 0,401

4,444 - 4,667

1 kg residual fuel oil

40000

0,955

11,111

(heavy oil)

1 kg light fuel oil

42300

1,010

11,750

1 kg motor spirit

44000

1,051

12,222

(petrol)

1 kg paraffin

40000

0,955

11,111

1 kg liquefied

46000

1,099

12,778

petroleum gas

1 kg natural gas [ 1 ]

47200

1,126

13,10

1 kg liquefied natural

45190

1,079

12,553

gas

1 kg wood (25%

13800

0,330

3,833

humidity) [ 2 ]

1 kg pellets/wood

16800

0,401

4,667

bricks

1 kg waste

7400 – 10700

0,177 - 0,256

2,056 - 2,972

1 MJ derived heat

0,024

0,278

1 kWh electrical energy

0,086

1 [ 3 ]

* The Minister may apply different conversion factors if these can be justified.

Source: Eurostat.

[1]

ninety-three per cent (93%) methane.

[2]

The Minister may apply other values depending on the

type of wood most used in Malta.

[3]

Applicable when energy savings are calculated in

primary energy terms using a bottom-up approach based on final

energy consumption. For savings in kWh electricity the Minister

shall apply a coefficient established through a transparent

methodology on the basis of national circumstances affecting primary

energy consumption, in order to ensure a precise calculation of real

savings. Those circumstances shall be substantiated, verifiable and

based on objective and non-discriminatory criteria. For savings in

kWh electricity, the Minister may apply a default coefficient of 2,1 or

use discretion to define a different coefficient, provided that this can

be justified. When doing so, the Minister shall take into account the

energy mix included in Malta’s integrated national energy and climate

plans as notified to the Commission in accordance with Regulation

(EU) 2018/1999.

Fifth Schedule

(regulations 7, 8, 9, and 27(4))

Common methods and principles for calculating the impact of

energy efficiency obligation schemes or other policy measures under

regulations 7, 8 and 9 and sub-regulation (4) of regulation 27

1. Methods for calculating energy savings other than those

arising from taxation measures for the purposes of regulations 7, 8 and

9 and sub-regulation (4) of regulation 27.

Obligated, participating or entrusted parties, or implementing

public authorities, may use the following methods for calculating

energy savings

(a)

deemed savings, by reference to the results of

previous independently monitored energy improvements in

similar installations. The generic approach is termed "ex ante";

(b)

metered savings, whereby the savings from the

installation of a measure, or package of measures, are

determined by recording the actual reduction in energy use,

taking due account of factors such as additionality, occupancy,

production levels and the weather which may affect

consumption. The generic approach is termed "ex post";

(c)

scaled savings, whereby engineering estimates of

savings are used, provided that this approach may be used only

where establishing robust measured data for a specific

ENERGY EFFICIENCY

installation is difficult or disproportionately expensive, e.g.

replacing a compressor or electric motor with a different kWh

rating from that for which independent information about

savings has been measured, or where those estimates are carried

out on the basis of nationally established methodologies and

benchmarks by qualified or accredited experts that are

independent of the obligated, participating or entrusted parties

involved;

(d)

surveyed savings, where consumers’ response to

advice, information campaigns, labelling or certification

schemes or smart metering is determined, provided that this

approach may be used only for savings resulting from changes

in consumer behaviour and shall not be used for savings

resulting from the installation of physical measures.

2. In determining the energy savings for an energy

efficiency measure for the purposes of regulations 7, 8 and 9 and sub-

regulation (4) of regulation 27, the following principles shall apply

(a)

the savings shall be shown to be additional to

those that would have occurred in any event without the activity

of the obligated, participating or entrusted parties, or

implementing public authorities. To determine the savings that

can be claimed as additional, the Minister shall have regard to

how energy use and demand would evolve in the absence of the

policy measure in question by taking into account at least the

following factors

(i)

energy consumption trends;

(ii)

changes in consumer behaviour;

(iii)

technological progress; and

(iv) changes caused by other

measures

implemented at Union and national level;

(b)

savings resulting from the implementation of

mandatory Union law shall be considered to be savings that

would have occurred in any event, and thus shall not be claimed

as energy savings for the purpose of sub-regulation (1) of

regulation 7). By way of derogation from that requirement,

savings related to the renovation of existing buildings may be

claimed as energy savings for the purpose of sub-regulation (1)

of regulation 7, provided that the materiality criterion referred

to in item 3(h) of this Schedule is ensured. Savings resulting

from the implementation of national minimum requirements

established for new buildings prior to the entry into force of the

Energy Performance of Buildings Regulations can be claimed

as energy savings for the purpose of paragraph (a) of sub-

regulation (1) of regulation 7, provided that the materiality

criterion referred to in item 3(h) of this Schedule is ensured and

these savings have been notified in the National Energy

Efficiency Action Plan;

(c)

credit may be given only for savings exceeding

the following levels

(i)

union emission performance standards for

new passenger cars and new light commercial vehicles

following the implementation of Regulations (EC) No

443/2009 (*1) and (EU) No 510/2011 of the European

Parliament and of the Council (*2);

(ii)

union requirements relating to the removal

from the market of certain energy related products

following the implementation of implementing measures

under Directive 2009/125/EC;

(d)

policies with the purpose of encouraging higher

levels of energy efficiency of products, equipment, transport

systems, vehicles and fuels, buildings and building elements,

processes or markets shall be permitted.

(e)

measures promoting the installation of small-scale

renewable energy technologies on or in buildings may be

eligible to be taken into account for the fulfilment of energy

savings required under sub-regulation (1) of regulation 7,

provided that they result in verifiable, and measurable or

estimable, energy savings. The calculation of energy savings

shall comply with the requirements of this Schedule.

(f)

for policies that accelerate the uptake of more

efficient products and vehicles, full credit may be claimed,

provided that it is shown that such uptake takes place before

expiry of the average expected lifetime of the product or

vehicle, or before the product or vehicle would usually be

replaced, and the savings are claimed only for the period until

end of the average expected lifetime of the product or vehicle to

be replaced.

(g)

in promoting the uptake of energy efficiency

measures, the Minister shall, where relevant, ensure that quality

standards for products, services and installation of measures are

maintained or introduced where such standards do not exist.

(h)

To account for climatic variations between

regions, the Minister may choose to adjust the savings to a

standard value or to accord different energy savings in

accordance with temperature variations between regions.

(i)

the calculation of energy savings shall take into

ENERGY EFFICIENCY

account the lifetime of the measures and the rate at which the

savings decline over time. That calculation shall count the

savings each individual action will achieve during the period

from its date of implementation to 31 st December 2020 or 31 st

December 2030 as appropriate. Alternatively, the Minister may

adopt another method that is estimated to achieve at least the

same total quantity of savings. When using another method, the

Minister shall ensure that the total amount of energy savings

calculated using that method does not exceed the amount of

energy savings that would have been the result of their

calculation when counting the savings each individual action

will achieve during the period from its date of implementation

to 31 st December 2020 or 31 st December 2030 as appropriate.

The other method and the provisions made to ensure that the

binding calculation requirement is met shall be described in

detail in the integrated national energy and climate plans under

Regulation (EU) 2018/1999.

3. The Minister shall ensure that the following requirements

for policy measures taken pursuant to regulation 9 and sub-regulation

(4) of regulation 27 are met

(a)

policy measures and individual actions produce

verifiable end-use energy savings;

(b)

the responsibility of each participating party,

entrusted party or implementing public authority, as relevant, is

clearly defined;

(c)

the energy savings that are achieved or are to be

achieved are determined in a transparent manner;

(d)

the amount of energy savings required or to be

achieved by the policy measure is expressed in either final or

primary energy consumption, using the conversion factors set

out in the Fourth Schedule;

(e)

an annual report on the energy savings achieved

by entrusted parties, participating parties and implementing

public authorities be provided and made publicly available, as

well as data on the annual trend of energy savings;

(f)

monitoring of the results and taking appropriate

measures if progress is not satisfactory;

(g)

the energy savings from an individual action are

not claimed by more than one party;

(h)

the activities of the participating party, entrusted

party or implementing public authority are shown to be material

to the achievement of the energy savings claimed.

4. In determining the energy saving from taxation related

policy measures introduced under regulation 9, the following

principles shall apply

(a)

credit shall be given only for energy savings from

taxation measures exceeding the minimum levels of taxation

applicable to fuels as required in Council Directive 2003/96/EC

(*3) or 2006/112/EC (*4);

(b)

of the (energy) taxation measures shall represent the

responsiveness of energy demand to price changes, and shall be

estimated on the basis of recent and representative official data

sources;

(c)

the energy savings from accompanying taxation

policy instruments, including fiscal incentives or payment to a

fund, shall be accounted separately.

5. Notification of methodology

The Minister shall, in accordance with Regulation (EU) 2018/

1999, ensure that the proposed detailed methodology for the operation

of the energy efficiency obligation schemes and alternative measures

referred to in regulations 8 and 9, and sub-regulation (4) of regulation

27 are notified to the Commission. Except in the case of taxation, such

notification shall include details of

(a)

the level of the energy savings required under

paragraph (b) of sub-regulation (1)of regulation 7 or savings

expected to be achieved over the whole period from 1 st January

2021 to 31 st December 2030;

(b)

the obligated, participating or entrusted parties, or

implementing public authorities;

(c)

target sectors;

(d)

policy measures and individual actions, including

the expected total amount of cumulative energy savings for

each measure;

(e)

the duration of the obligation period for the

energy efficiency obligation scheme;

(f)

the actions provided for by the policy measure;

(g)

the calculation methodology, including how

additionality and materiality have been determined and which

methodologies and benchmarks are used for deemed and scaled

savings;

ENERGY EFFICIENCY

(h)

the lifetimes of measures, and how they are

calculated or what they are based upon;

(i)

the approach taken to address climatic variations;

(j)

the monitoring and verification systems for

measures under regulations 8 and 9 and how their independence

from the obligated, participating or entrusted parties is ensured;

(k)

in the case of taxation

(i)

the

target

sectors

and

segment

of

taxpayers;

(ii)

the implementing public authority;

(iii)

the savings expected to be achieved;

(iv)

the duration of the taxation measure; and

(v)

the calculation methodology, including the

established.

Sixth Schedule

(regulation 10(3), (10) and (11))

Minimum criteria for energy audits including those carried out as part

of energy management systems

The energy audits referred to in regulation 10 shall be based on

the following guidelines

(a)

be based on up-to-date, measured, traceable

operational data on energy consumption and (for electricity)

load profiles;

(b)

comprise a detailed review of the energy

consumption profile of buildings or groups of buildings,

industrial operations or installations, including transportation;

(c)

build, whenever possible, on life-cycle cost

analysis (LCCA) instead of Simple Payback Periods (SPP) in

order to take account of long-term savings, residual values of

long-term investments and discount rates;

(d)

be proportionate, and sufficiently representative to

permit the drawing of a reliable picture of overall energy

performance and the reliable identification of the most

significant opportunities for improvement.

Energy audits shall allow detailed and validated calculations for

the proposed measures so as to provide clear information on potential

savings.

The data used in energy audits shall be storable for historical

analysis and tracking performance.

Seventh Schedule

(regulation 15(1) and (3)(c))

Minimum requirements for billing

Part I

Minimum requirements for billing and billing information based

on actual consumption of electricity and gas

1. Minimum requirements for billing

1.1.

Billing based on actual consumption

In order to enable final customers to regulate their own energy

consumption, billing should take place on the basis of actual

consumption at least once a year, and billing information should be

made available at least quarterly, on request or where the consumers

have opted to receive electronic billing or else twice yearly. Gas used

only for cooking purposes may be exempted from this requirement.

1.2.

Minimum information contained in the bill

Where appropriate, the following information shall be made

available to final customers in clear and understandable terms in or

with their bills, contracts, transactions, and receipts at distribution

stations

(a)

current actual prices and actual consumption of

energy;

(b)

comparisons of the final customer’s current

energy consumption with consumption for the same period in

the previous year, preferably in graphic form;

(c)

contact information for final customers’

organisations, energy agencies or similar bodies, including

website addresses, from which information may be obtained on

available

energy

efficiency

improvement

measures,

comparative end-user profiles and objective technical

specifications for energy-using equipment.

In addition, wherever possible and useful, the following

information shall be made available to final customers in clear and

understandable terms, in, with or signposted to within, their bills,

contracts, transactions, and receipts at distribution stations;

(d)

comparisons with an average normalised or

benchmarked final customer in the same user category.

1.3. Advice on energy efficiency accompanying bills and

other feedback to final customers

When sending contracts and contract changes, and in the bills

customers receive or through websites addressing individual

customers, energy distributors, distribution system operators and retail

energy sales companies shall inform their customers in a clear and

understandable manner of contact information for independent

consumer advice centres, energy agencies or similar institutions,

including their internet addresses, where they can obtain advice on

available energy efficiency measures, benchmark profiles for their

energy consumption and technical specifications of energy using

appliances that can serve to reduce the consumption of these

appliances.

Part II

Minimum requirements for billing and consumption

information for heating, cooling and domestic hot water

1. Billing based on actual consumption or heat cost

allocator readings

In order to enable final users to regulate their own energy

consumption, suppliers shall ensure that billing shall take place on the

basis of actual consumption or heat cost allocator readings at least

once per year.

2. Minimum

frequency

of

billing

or

consumption

information

From 25 th October 2020, where remotely readable meters or

heat cost allocators have been installed, billing or consumption

information based on actual consumption or heat cost allocator

readings shall be provided to final users at least every three (3) months

by by their supplier upon request or where final customers have opted

to receive electronic billing, or else twice a year.

From 1 st January 2022, where remotely readable meters or heat

cost allocators have been installed, billing or consumption information

based on actual consumption or heat cost allocator readings shall be

provided to final users at least monthly. Such information may also be

made available via the internet and be updated as frequently as

allowed by the measurement devices and systems used. Heating and

cooling may be exempted from that requirement outside the heating/

cooling seasons.

3. Minimum information contained in the bill

The supplier shall ensure that the following information is made

available to final users in clear and comprehensible terms in or with

their bills where those are based on actual consumption or heat cost

allocator readings

(a)

current actual prices and actual consumption of

energy or total heat cost and heat cost allocator readings;

(b)

information about the fuel mix used and the

related annual greenhouse emissions, including for final users

supplied by district heating or district cooling, and a description

of the different taxes, levies and tariffs applied. The scope of

the requirement to provide information about greenhouse gas

emissions may be limited to supplies from district heating

systems with a total rated thermal input exceeding 20MW;

(c)

comparisons of the final users’ current energy

consumption with consumption for the same period in the

previous year, in graphic form, climate corrected for heating

and cooling;

(d)

contact information for final customers’

organisations, energy agencies or similar bodies, including

website addresses, from which information on available energy

efficiency improvement measures, comparative end-user

profiles and objective technical specifications for energy-using

equipment may be obtained;

(e)

information about related complaints procedures,

ombudsman services or alternative dispute resolution

mechanisms, as applicable;

(f)

comparisons with an average normalised or

benchmarked final user in the same user category. In the case of

electronic bills, such comparisons may instead be made

available online and signposted to within the bills;

Bills that are not based on actual consumption or heat cost

allocator readings shall contain a clear and comprehensible

explanation of how the amount set out in the bill was calculated, and at

least the information referred to in paragraphs (d) and (e).

Eighth Schedule

(regulation 21(1) and (4))

Potential for efficiency in heating and cooling

The comprehensive assessment of national heating and cooling

potentials referred to in regulation 21(1) shall include and be based on

the following

Part One - Overview of Heating and Cooling

1. heating and cooling demand in terms of assessed useful

energy (1) and quantified final energy consumption in GWh per year (2)

by sectors

(a)

residential;

(b)

services;

(c)

industry;

(d)

any other sector that individually consumes more

than five per cent (5%) of total national useful heating and

cooling demand;

2. identification, or in the case of item 2(a)(i), identification

or estimation, of current heating and cooling supply

by technology, in GWh per year (3) , within sectors

(a)

mentioned under item 1 where possible, distinguishing between

energy derived from fossil and renewable sources

(i)

provided on-site in residential and service

sites by

-

heat only boilers;

-

high-efficiency

heat and

power

cogeneration;

-

heat pumps;

-

other

on-site

technologies

and

sources;

(ii)

provided on-site in non-service and non-

residential sites by

-

heat only boilers;

-

high-efficiency

heat and

power

cogeneration;

-

heat pumps;

-

other

on-site

technologies

and

sources;

(iii)

provided off-site by

-

high-efficiency heat and power

cogeneration;

-

waste heat;

-

other

off-site

technologies

and

sources;

(b)

identification of installations that generate waste

heat or cold and their potential heating or cooling supply, in

GWh per year

(i)

thermal power generation installations that

can supply or can be retrofitted to supply waste heat with

a total thermal input exceeding 50 MW;

(ii)

heat and power cogeneration installations

using technologies referred to in Part II of the First

Schedule with a total thermal input exceeding 20 MW;

(iii)

waste incineration plants;

(iv) renewable energy installations with a total

thermal input exceeding 20 MW other than the

installations specified under item 2(b)(i) and (ii)

generating heating or cooling using the energy from

renewable sources;

(v)

industrial installations with a total thermal

input exceeding 20 MW which can provide waste heat;

(c)

reported share of energy from renewable sources

and from waste heat or cold in the final energy consumption of

the district heating and cooling (4) sector over the past five (5)

years, in line with Directive (EU) 2018/2001;

3. a map covering the entire national territory identifying

(while preserving commercially sensitive information)

(a)

heating and cooling demand areas following from

the analysis of item 1, while using consistent criteria for

focusing on energy dense areas in municipalities and

conurbations;

(b)

existing heating and cooling supply points

identified under item 2(b) and district heating transmission

installations;

(c)

planned heating and cooling supply points of the

type described under item 2(b) and district heating transmission

installations;

4. a forecast of trends in the demand for heating and cooling

to maintain a perspective of the next thirty (30) years in GWh and

taking into account in particular projections for the next ten (10) years,

the change in demand in buildings and different sectors of the industry,

and the impact of policies and strategies related to the demand

management, such as long-term building renovation strategies under

Directive (EU) 2018/844;

Part Two – Objectives, Strategies and Policy Measures

5. planned contribution to national objectives, targets

and contributions for the five dimensions of the energy union, as

laid out in Article 3(2)(b) of Regulation (EU) 2018/1999, delivered

through efficiency in heating and cooling, in particular related to

points 1 to 4 of Article 4(b) and to paragraph (4)(b) of Article 15 of the

same Regulation, identifying which of these elements is additional

compared to integrated national energy and climate plans;

6. general overview of the existing policies and measures as

described in the most recent report submitted in accordance with

Articles 3, 20, 21 and 27(a) of Regulation (EU) 2018/1999;

Part Three – Analysis of the Economic Potential for Efficiency

in Heating and Cooling

an analysis of the economic potential (5) of different

7. technologies for heating and cooling shall be carried out for the entire

national territory by using the cost-benefit analysis referred to in sub-

regulation (4) of regulation 21 and shall identify alternative scenarios

for more efficient and renewable heating and cooling technologies,

distinguishing between energy derived from fossil and renewable

sources where applicable.

The following technologies should be considered

(a)

Industrial waste heat and cold;

(b)

Waste incineration;

(c)

High efficiency cogeneration;

(d)

Renewable energy sources (such as geothermal,

solar thermal and biomass) other than those used for high

efficiency cogeneration;

(e)

Heat pumps;

(f)

Reducing heat and cold losses from existing

district networks.

8. this analysis of economic potential shall include the

following steps and considerations

(a)

Considerations

(i)

the cost-benefit analysis for the purposes of

sub-regulation (4) of regulation 21 shall include an

economic analysis that takes into consideration

socioeconomic and environmental factors (6) and a

financial analysis performed to assess projects from the

investors’ point of view. Both economic and financial

analyses shall use the net present value as criterion for

the assessment;

(ii)

the baseline scenario should serve as a

reference point and take into account existing policies at

the time of compiling this comprehensive assessment (7) ,

and be linked to data collected under Part One and item 6

of Part Two of this Schedule;

(iii) alternative scenarios to the baseline shall

take into account energy efficiency and renewable energy

objectives of Regulation (EU) 2018/1999. Each scenario

shall present the following elements compared to the

baseline scenario

-

Economic potential of technologies

examined using the net present value as criterion;

-

Greenhouse

gas

emissions

reductions;

-

Primary energy savings in GWh per

year;

-

Impact on the share of renewables

in the national energy mix. Scenarios that are not

feasible due to technical reasons, financial reasons

or national regulation may be excluded at an early

stage of the cost-benefit analysis, if justified based

on careful, explicit and well-documented

considerations.

The assessment and decision-making should take into account

costs and energy savings from increased flexibility in energy supply

and from a more optimal operation of the electricity networks,

including avoided costs and savings from reduced infrastructure

investment, in the analysed scenarios.

(b)

Costs and benefits

The costs and benefits referred to under item 8(a) shall include

at least the following benefits and costs

(i)

Benefits

-

value of output to the consumer

(heating, cooling and electricity);

-

external

benefits

such

as

environmental, greenhouse gas emissions and

health and safety benefits, to the extent possible;

-

labour market costs, energy

security and competitiveness, to the extent

possible.

(ii)

Costs

-

Capital

costs

of

plants

and

equipment;

-

Capital costs of the associated

energy networks,

-

Variable and fixed operating costs;

-

Energy costs;

-

Environmental, health and safety

costs, to the extent possible;

-

Labour market costs, energy

security and competitiveness, to the extent

possible.

(c)

Relevant scenarios to the baseline

All relevant scenarios to the baseline shall be considered,

including the role of efficient individual heating and cooling.

(i)

the cost-benefit analysis may either cover a

project assessment or a group of projects for a broader

local, regional or national assessment in order to

establish the most cost-effective and beneficial heating or

cooling solution against a baseline for a given

geographical area for the purpose of planning;

(ii)

The Minister shall designate the competent

authorities responsible for carrying out the cost-benefit

analyses pursuant to regulation 21 and shall provide the

detailed methodologies and assumptions in accordance

with this Schedule and establish and make public the

procedures for the economic analysis.

(d)

Boundaries and integrated approach

(i)

the geographical boundary shall cover a

suitable well-defined geographical area;

(ii)

the cost-benefit analyses shall take into

account all relevant centralised or decentralised supply

resources available within the system and geographical

boundary, including technologies considered under item

7 of Part 3 of this Schedule, and heating and cooling

demand trends and characteristics.

(e)

Assumptions

(i)

the Minister shall provide assumptions, for

the purpose of the cost-benefit analyses, on the prices of

major input and output factors and the discount rate;

(ii)

the discount rate used in the economic

analysis to calculate net present value shall be chosen

according to European or national guidelines;

(iii) the Minister shall use national, European or

international energy price development forecasts if

appropriate in the national and, or regional/local context;

(iv) the prices used in the economic analysis

shall reflect socio economic costs and benefits. External

costs, such as environmental and health effects, should

be included to the extent possible, i.e. when a market

national regulation.

(f)

Sensitivity analysis

a sensitivity analysis shall be included to assess the costs and

benefits of a project or group of projects and be based on variable

factors having a significant impact on the outcome of the calculations,

such as different energy prices, levels of demand, discount rates and

other.

Part Four – Potential New Strategies and Policy Measures

9. overview of new legislative and non-legislative policy

measures (8) to realise the economic potential identified in accordance

with items 7 and 8, along with their foreseen

(a)

greenhouse gas emission reductions;

(b)

primary energy savings in GWh per year;

(c)

impact

on

the

share

of

high-efficiency

cogeneration;

(d)

impact on the share of renewables in the national

energy mix and in the heating and cooling sector;

(e)

links to national financial programming and cost

savings for the public budget and market participants;

(f)

estimated public support measures, if any, with

their annual budget and identification of the potential aid

element.

(Footnotes to this schedule)

(1)

The amount of thermal energy needed to satisfy the

heating and cooling demand of end-users.

(2)

The most recent data available should be used.

(3)

The most recent data available should be used.

(4)

The identification of "renewable cooling” shall, after the

methodology for calculating the quantity of renewable energy used for

cooling and district cooling is established in accordance with Article

35 of Directive (EU) 2018/2001, be carried out in accordance with that

Directive. Until then it shall be carried out according to an appropriate

national methodology.

(5)

The analysis of the economic potential should present the

volume of energy (in GWh) that can be generated per year by each

technology analysed. The limitations and interrelations within the

energy system should also be taken into account. The analysis may

make use of models based on assumptions representing the operation

of common types of technologies or systems.

(6)

Including the assessment referred to in Article 15,

paragraph 7 of Directive (EU) 2018/2001.

(7)

The cut-off date for taking into account policies for the

baseline scenario is the end of the year preceding to the year by the end

of which the comprehensive assessment is due. That is to say, policies

enacted within a year prior to the deadline for submission of the

comprehensive assessment do not need to be taken into account.

(8)

This overview shall include financing measures and

programmes that may be adopted over the period of the comprehensive

assessment, not prejudging a separate notification of the public support

schemes for a State aid assessment

Ninth Schedule

(regulation 21(6) and (10))

Cost-benefit analysis

The cost-benefit analyses shall provide information for the

purpose of the measures referred to in sub-regulation (6) and (10) of

regulation 21

If an electricity-only installation or an installation without heat

recovery is planned, a comparison shall be made between the planned

installations or the planned refurbishment and an equivalent

installation producing the same amount of electricity or process heat,

but recovering the waste heat and supplying heat through high

efficiency cogeneration and, or district heating and cooling networks.

Within a given geographical boundary the assessment shall take

into account the planned installation and any appropriate existing or

potential heat demand points that could be supplied from it, taking into

account rational possibilities (for example technical feasibility and

distance).

The system boundary shall be set to include the planned

installation and the heat loads, such as building/s and industrial

process. Within this system boundary the total cost of providing heat

and power shall be determined for both cases and compared.

Heat loads shall include existing heat loads, such as an

industrial installation or an existing district heating system, and also,

in urban areas, the heat load and costs that would exist if a group of

buildings or part of a city were provided with and, or connected into a

new district heating network.

The cost-benefit analysis shall be based on a description of the

planned installation and the comparison installation(s), covering

electrical and thermal capacity, as applicable, fuel type, planned usage

and the number of planned operating hours annually, location and

electricity and thermal demand.

For the purpose of the comparison, the thermal energy demand

and the types of heating and cooling used by the nearby heat demand

points shall be taken into account. The comparison shall cover

infrastructure related costs for the planned and comparison

installation.

Cost-benefit analyses for the purposes of sub-regulation (6) of

regulation 21 shall include an economic analysis covering a financial

analysis reflecting actual cash flow transactions from investing in and

operating individual installations.

Projects with positive cost-benefit outcome are those where the

sum of discounted benefits in the economic and financial analysis

exceeds the sum of discounted costs (cost-benefit surplus).

The Minister shall set guiding principles for the methodology,

assumptions and time horizon for the economic analysis.

The Minister may require that the companies responsible for the

operation of thermal electric generation installations, industrial

companies, district heating and cooling networks, or other parties

influenced by the defined system boundary and geographical

boundary, contribute data for use in assessing the costs and benefits of

an individual installation.

Tenth Schedule

(regulation 21(13))

Guarantee of origin for electricity produced from

high efficiency cogeneration

(a)

The Regulator shall take measures to ensure that

(i)

the guarantee of origin of the electricity

produced from high-efficiency cogeneration

-

enable producers to demonstrate

that the electricity they sell is produced from

high-efficiency cogeneration and is issued to this

effect in response to a request from the producer,

-

is accurate, reliable and fraud-

resistant,

-

is issued, transferred and cancelled

electronically;

(ii)

the same unit of energy from high-

efficiency cogeneration is taken into account only once.

(b)

The guarantee of origin referred to in sub-

regulation (13) of regulation 21 shall contain at least the

following information

(i)

the identity, location, type and capacity

(thermal and electrical) of the installation where the

energy was produced;

(ii)

the dates and places of production;

(iii) the lower calorific value of the fuel source

from which the electricity was produced;

(iv) the quantity and the use of the heat

generated together with the electricity;

(v)

the quantity of electricity from high

efficiency cogeneration in accordance with the Second

Schedule to these regulations that the guarantee

represents;

(vi) the primary energy savings calculated in

accordance with the Second Schedule to these

regulations based on the harmonised efficiency reference

values indicated in paragraph (f) of the Second Schedule;

(vii) the nominal electric and thermal efficiency

of the plant;

(viii) whether and to what extent the installation

has benefited from investment support;

(ix) whether and to what extent the unit of

energy has benefited in any other way from a national

support scheme, and the type of support scheme;

(x)

the date on which the installation became

operational; and

(xi) the date and country of issue and a unique

identification number.

The guarantee of origin shall be of the standard size of 1 MWh.

It shall relate to the net electricity output measured at the station

boundary and exported to the grid.

Eleventh Schedule

(regulation 22(1))

Energy efficiency criteria for energy network regulation

and for electricity network tariffs

1. Network tariffs shall be cost-reflective of cost-savings in

networks achieved from demand side and demand response measures

and distributed generation, including savings from lowering the cost of

delivery or of network investment and a more optimal operation of the

network.

2. Network regulation and tariffs shall not prevent network

operators or energy retailers making available system services for

demand response measures, demand management and distributed

generation on organised electricity markets, in particular

ENERGY EFFICIENCY

(a)

the shifting of the load from peak to off-peak

times by final customers taking into account the availability of

renewable energy, energy from cogeneration and distributed

generation;

(b)

energy savings from demand

response

of

distributed consumers by energy aggregators;

(c)

demand reduction from energy efficiency

measures undertaken by energy service providers, including

energy service companies;

(d)

the connection and dispatch of generation sources

at lower voltage levels;

(e)

the connection of generation sources from closer

location to the consumption; and

(f)

the storage of energy.

For the purposes of this provision the term "organised electricity

markets" shall include over-the-counter markets and electricity

exchanges for trading energy, capacity, balancing and ancillary

services in all timeframes, including forward, day-ahead and intra-day

markets.

3. Network or retail tariffs may support dynamic pricing for

demand response measures by final customers, such as

(a)

time-of-use tariffs;

(b)

critical peak pricing;

(c)

real time pricing; and

(d)

peak time rebates.

Twelfth Schedule

(regulation 22(5))

Energy efficiency requirements for transmission system operators and

distribution system operators

Transmission and distribution system operators shall

(a)

set up and make public their standard rules

relating to the bearing and sharing of costs of technical

adaptations, such as grid connections and grid reinforcements

and the introduction of new grids, improved operation of the

grid and rules on the non-discriminatory implementation of the

grid codes, which are necessary in order to integrate new

producers feeding electricity produced from high-efficiency

cogeneration into the interconnected grid;

(b)

provide any new producer of electricity produced

from high-efficiency cogeneration wishing to be connected to

the system with the comprehensive and necessary information

required, including

(i)

a comprehensive and detailed estimate of

the costs associated with the connection;

(ii)

a reasonable and precise timetable for

receiving and processing the request for grid connection;

(iii) a reasonable indicative timetable for any

proposed grid connection. The overall process to become

connected to the grid should be no longer than twenty-

four (24) months, bearing in mind what is reasonably

practicable and non-discriminatory;

(c)

provide standardised and simplified procedures

for the connection of distributed high efficiency cogeneration

producers to facilitate their connection to the grid.

The standard rules referred to in paragraph (a) shall be based on

objective, transparent and non-discriminatory criteria taking particular

account of all the costs and benefits associated with the connection of

those producers to the grid. They may provide for different types of

connection.

Thirteenth Schedule

(regulation 25(1)(d))

Minimum items to be included in energy performance contracts

with the public sector or in the associated tender specifications

-

Clear and transparent list of the efficiency measures to be

implemented or the efficiency results to be obtained.

-

Guaranteed savings to be achieved by implementing the

measures of the contract.

-

Duration and milestones of the contract, terms and period

of notice.

-

Clear and transparent list of the obligations of each

contracting party.

-

Reference date(s) to establish achieved savings.

-

Clear and transparent list of steps to be performed to

implement a measure or package of measures and, where relevant,

associated costs.

-

Obligation to fully implement the measures in the

contract and documentation of all changes made during the project.

-

Regulations specifying the inclusion of equivalent

requirements in any subcontracting with third parties.

-

Clear and transparent display of financial implications of

the project and distribution of the share of both parties in the monetary

savings achieved (i.e. remuneration of the service provider).

-

Clear and transparent provisions on measurement and

verification of the guaranteed savings achieved, quality checks and

guarantees.

-

Provisions clarifying the procedure to deal with changing

framework conditions that affect the content and the outcome of the

contract (i.e. changing energy prices, use intensity of an installation).

-

Detailed information on the obligations of each of the

contracting party and of the penalties for their breach.