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Malta Resources Authority Act, 2000 (Act No. Xxv Of 2000) Electricity Regulations, 2003 (L.N. No. 164 Of 2003 )

MALTA RESOURCES AUTHORITY ACT, 2000 (ACT NO. XXV OF 2000)
Electricity Regulations, 2003
BY virtue of the powers conferred by article 28 of the Malta Resources Authority Act, 2000 hereinafter referred to as “the Act”, the Minister for Resources and Infrastructure, after consultation with the Malta Resources Authority, has made the following Regulations>-
1. (1) The title of these Regulations is the Electricity
Regulations, 2003.
(2) (i) These Regulations shall come into force on such date as the Minister for resources and infrastructure may by notice in the Government Gazette appoint, and different dates may be so appointed for different provisions and different purposes of these Regulations.
(ii) A notice under paragraph (i) of this sub-regulation may make such transitional provisions as appear to the Minister to be necessary or expedient in connection with the provisions thereby brought into force.
(3) These Regulations establish rules for the licensing of activities in the electricity sector and lay down the rules relating to the organisation and functioning of the electricity sector in Malta, access to the market, the operation of system and the regulation of electricity tariffs.
2. For the purposes of these Regulations>
“ancillary services” shall mean all services necessary for the operation of the network<
“autoproducer” shall mean a natural or legal person generating electricity essentially for his own use<
“authorisation” shall mean any act whereby the competent authority permits the carrying out of actions and functions subject to these Regulations<
“competent authority” shall mean the Malta Resources
Authority<
“convey” shall include transmit and distribute, and shall mean the transport of electricity on the network with a view to supply to customers< and “transmission” and “conveyance” shall be construed accordingly<
“customers” shall mean wholesale or final customers of electricity<
“direct line” shall mean an electricity line complementary to the network, intended for the conveyance of electricity for delivery to customers<
“economic precedence” shall mean the ranking of sources of electricity supply in accordance with economic criteria<
“final customer” shall mean a customer buying electricity for his own use<
“generation” shall mean the production of electricity<
“horizontally integrated undertaking” shall mean an undertaking performing at least one of the functions of generation for sale, or conveyance of electricity, and another non-electricity activity<
“independent producer” shall mean a producer who does not carry out electricity conveyance and supply functions<
“integrated electricity undertaking” shall mean a vertically or horizontally integrated undertaking<
“interconnected system” shall mean a number of transmission and distribution systems linked together by means of one or more interconnectors<
“interconnectors” shall mean equipment used to link electricity systems<
“licence” shall include an authorisation, permit, permission, concession, consent or approval<
“long-term planning” shall mean the planning of the need for investment in generation and the conveyance capacity on a long- term basis, with a view to meeting the demand for electricity of the system and securing supplies to customers<
“Minister” shall mean the Minister responsible for resources<
B 2067
B 2068

Licensing.

“network” shall mean the high medium and low voltage conveyance system of electricity<
“person” shall include both a physical and a legal person< “producer” shall mean a natural or legal person generating
electricity<
“public service obligations” shall mean obligations imposed on electricity undertakings operating in the electricity sector, by the competent authority in order to ensure security, including security of supply, regularity, quality, price and environmental protection in the general economic interest< which take account of general social, economic and environmental factors<
“single buyer” shall mean any legal person who is responsible for the unified management of the network and#or for centralized electricity purchasing and selling<
“system user” shall mean any natural or legal person supplying to, or being supplied by the network<
“supply” shall mean the delivery and sale of electricity to customers<
“tendering procedure” shall mean the procedure through which planned additional requirements and replacement capacity are covered by supplies from new or existing generating capacity<
“vertically integrated undertaking” shall mean an undertaking performing two or more of the functions of generation, conveyance and supply of electricity<
“wholesale customers” shall mean any natural or legal person, recognized by the competent authority, who purchase and sell electricity and who do not carry out generation and conveyance functions.
3. (1) No person shall>
(i) generate electricity for the purpose of giving supply to any premises or enabling a supply to be so given or for any other purpose<
(ii) develop an electricity network or direct line<
(iii) convey electricity through the electricity network for that purpose, or<
(iv) supply electricity to eligible customers and#or to any premises except under licence of the competent authority and on such terms and conditions as may be specified in such licence>
Provided that a person or undertaking conducting more than one of the above activities shall require separate licences for each different activity.
(2) Any person or undertaking who has been granted a licence by or under the Enemalta Act, shall apply for a licence under these Regulations within three months of their coming into force.
4. (1) The Minister may, after consultation with the competent authority and after having regard to the objectives of these Regulations, by direction grant an exemption from the provisions of regulation 3.
(2) An exemption under sub-regulation (1)>
(i) may be granted to a particular person or particular class of persons<
(ii) may be granted subject to such conditions as the Minister may deem fit<
(iii) when granted to a particular class of persons, shall be published in the Government Gazette< and
(iv) unless previously revoked in accordance with any term or condition contained in the exemption, shall continue in force for such period as may be specified in or determined by or under the exemption.
B 2069

Cap. 272.

Exemptions.

be>
5. (1) An application for a new licence or for its renewal shall

Applications.

(i) in writing and in such form and contain such information as the competent authority may request<
(ii) accompanied by such fees, bank guarantees and#or insurances as the competent authority may determine and prescribe to be appropriate. All fees shall be payable on application and any bank guarantees and#or insurance shall be effective as from the date of the issue of the licence and must subsist throughout the
B 2070

Grant or refusal of licence.

Monitoring.

Cap. 379.

duration of such licence. Interests and penalties, as established by the competent authority, shall be payable in the event of default in the due payment of fees>
Provided that a licence granted under these Regulations shall not relieve the licensee from the requirement to obtain any other licence or from any obligation arising from any other law.
(2) A licence granted under these Regulations may include such conditions as appear to the competent authority to be requisite or expedient, having regard to the duties of the competent authority and to international obligations of Malta.
6. The refusal of the competent authority to grant a licence shall be communicated to the applicant in writing not later than 28 days from its decision together with a statement of the reasons for its refusal.
7. (1) The competent authority shall monitor the activities of licensees and ensure that they conform to the conditions and requirements of the licence.
(2) A licensee shall allow the competent authority, and any other person authorised by it for such purpose, full access to any premises, installations, accounting and other records and any information under the control of the licensee as the competent authority may reasonably require and as it may request for the purpose of investigating any matter relevant to the licensee’s compliance with these Regulations, the Act, the terms and conditions of the licence or any directive issued by or given by the competent authority>
When allowing access to or providing documentation or information to the competent authority, the licensee may indicate what information he considers to be of a commercially sensitive nature and may request the competent authority to keep such information confidential. It shall be the competent authority to decide whether the information is of commercially sensitive nature.
Provided further that the competent authority shall, with relation to the commercially sensitive information obtained from the licensee, be under the obligation of confidentiality and shall not divulge such information unless required to do so by law or by a court order.
In order to prevent anti-competitive practices prohibited under the
Competition Act in particular.
(3) Without prejudice to the aforementioned, all information provided by the licensee under sub-regulation (2) shall be treated as confidential and may only be published, other than in an aggregate or collated form, with the consent of the licensee.
8. Where the licensee fails to comply with any condition or conditions of the licence, the competent authority may withdraw, amend or suspend such licence or impose specific measures, which it deems necessary and appropriate to achieve compliance>
Provided that such measures must be proportionate to the degree of non-compliance with the conditions of the licence.
9. The licensee shall monitor, record and maintain all such technical, financial, administrative, and operational information and records concerning licensed activities that are prescribed in the licence or that the competent authority may deem necessary>
Provided that the competent authority may also prescribe the manner in which the licensee keeps records and documents which fall under this regulation.
10. (1) The licensee may not transfer or assign the licence to any other person or undertaking without the prior written approval of the competent authority and unless such transfer fees, as may be prescribed by the competent authority are paid>
Provided that the competent authority may only refuse its consent to such transfer for a good and valid reason and that such refusal is communicated to the licensee and the proposed transferee in writing.
(2) Where the licensee is a body corporate or any other body of persons, a change in the control of the ownership of that body shall be deemed to be equivalent to the transfer of the licence, and shall be subject to the conditions set in sub-regulation (1). For the purpose of this sub-regulation, a transfer in the control of the ownership of a body corporate or other body of persons shall be deemed to occur in any case where a transfer of the capital, shares, stock or other rights held in the body corporate or other body of persons leads to a change in the person holding the controlling interest therein.
B 2071

Withdrawal, amendment or suspension of licence or the imposition of specific measures.

Monitoring and maintenance of records.

Transfer of licences.

B 2072

Modification, revocation and termination of licences.

11. (1) A licence granted by the competent authority shall be subject to modification, revocation or termination in accordance with these Regulations.
(2) A licence shall be modified as follows>
(i) where the licensee so requests, in which case the competent authority may modify the conditions or requirements of the said licence< and
(ii) where the competent authority is of the opinion that a licence should be amended, it may amend such licence even without the consent of the licensee>
Provided that, other than in the case of a modification or modifications pursuant to paragraph (ii) and required urgently in the general economic interest, the competent authority shall issue a notice in the Government Gazette before modifying a licence stating the proposed modification or modifications, the nature of such modification or modifications and the reasons therefor. Representations or objections with respect to the proposed modification or modifications may be made to the competent authority within 28 days of the publication of such notice.
upon>
(3) A licence shall cease to be valid, in whole or in part,
(i) the expiration of the term therein specified<
(ii) the occurrence of an event or of circumstances which under the terms and conditions of the licence result in its termination<
(iii) the renunciation thereto by the licensee, provided that the licensee gives notice as stipulated in the licence conditions to the competent authority of the intention to do so<
(iv) the insolvency, liquidation or bankruptcy of the licensee, or a composition with his creditors.
(4) Without prejudice to the provisions of regulation 8, the competent authority may revoke the licence, in whole or in part, for any of the following reasons<
(i) if the licence has been granted on the basis of information which was incomplete, misleading or incorrect in any material aspect<
(ii) if the licensee fails to act on the licence by failing to provide the service or product for which he was licensed to for a period exceeding 180 days from the date of issue of the licence, or if he suspends such activity for a period exceeding 180 days in any twelve month period>
Provided that the competent authority may extend or curtail the period aforesaid for a good and valid reason which shall be communicated to the licensee as stipulated in the licence conditions<
(iii) if the licensee is in breach of an obligation imposed by or under these Regulations or contained in the licence which, in the opinion of the competent authority, is of a sufficient degree of severity to justify the revocation of the licence, and, in such case where the breach is capable of remedy, where the licensee has failed to remedy the breach within such time as the competent authority may have given him for that purpose>
Provided that in any action taken further to this paragraph, the competent authority shall respect the principle of proportionality and that it shall communicate its intention to revoke the licence and the reasons therefor to the licensee in writing<
(iv) in the case of the occurrence of any event or circumstance which, in accordance with the terms and conditions of the licence, these Regulations and, or the Act, authorise the competent authority to revoke it.
(5) Upon revocation of the whole licence, such licence shall cease to be a valid licence>
Provided that where the licence is revoked only in part, the validity of the licence as a whole shall only be effected if the part of the licence revoked appears to the competent authority not to be severable from the entire licence>
Provided furthermore that the revocation of a licence shall not relieve the licensee of any liability arising from any act or omission which occurred prior to such revocation.
12. (1) A generating plant shall not be constructed or reconstructed without a licence granted by the competent authority in
B 2073

Generation.

B 2074
accordance with regulation 3, in conformity with the tendering and authorisation procedures set by these Regulations.
(2) On the basis of the estimate referred to in regulation
13(6), the competent authority shall determine the need for generating capacity and the magnitude thereof, including replacement capacity requirements. The competent authority shall allocate the construction and reconstruction of generating capacity by means of a tendering procedure in accordance with the procedures laid down in these Regulations.
(3) It shall be possible for auto-producers and independent producers to obtain authorisation for the construction and operation of generating capacity, on the basis of objective, transparent and non- discriminatory criteria, which the competent authority shall establish. These criteria may relate to those in sub-regulation (5)>
Provided that the Minister may, after consultation with the competent authority, limit the number of individual authorisations that may be granted and#or the total generation capacity that may be met by the authorisation procedure. These limits shall apply to the extent that the Minister may deem necessary and shall be set in accordance with transparent, objective and nondiscriminatory criteria that shall be published in the Government Gazette.
(4) Details of the tendering procedure for means of generation shall be published in the Government Gazette at least six months prior to the closing date for tenders. A notice of the tender specifications shall be made available to any interested person or undertaking established in Malta in sufficient time to enable the submission of a tender.
(5) The tender specifications shall contain a detailed description of the contract specifications and of the procedure to be followed by all tenderers together with an exhaustive list of criteria governing the selection of tenderers and the award of the contract. These specifications may also relate to>
(i) the safety and security of the electricity system, electric plant and domestic lines, installations and associated equipment<
(ii) the protection of the environment, including the limitation of emissions to the atmosphere, water and land<
(iii) the siting of generating plant and associated land use< (iv) the use of public property<
(v) the efficient use of energy<
(vi) the nature of the primary sources of energy to be used by the generating plant<
(vii) the characteristics of the applicant, including his technical, economic and financial capabilities<
(viii) the provisions of these Regulations and of the Act. (6) The competent authority, or any other person or body
which it may nominate for the purpose, shall be responsible for the
organisation, monitoring and control of the tendering procedure. It shall take all the necessary steps to ensure confidentiality of the information contained in the tenders. The information contained in the tenders submitted shall be treated as confidential unless, and to the extent that, the tenderer is notified to the contrary in the issuing of the tender.
13. (1) Having regard to considerations of efficiency and economic balance, and until such time as the Minister may determine, Enemalta Corporation, shall be the network operator responsible for operating, ensuring the maintenance and the development of the network as necessary, or, as may be prescribed from time to time, in order to guarantee secure, adequate, quality and regular supply of electricity in Malta.
(2) The network operator shall also be responsible for operating interconnectors with generators and with other systems, which may be outside national territory.
(3) The network operator shall provide the operator of any other system with which its system is interconnected with sufficient information to ensure the secure and efficient operation, coordinated development and interoperability of the interconnected system.
(4) The competent authority shall ensure that the rules establishing the basic technical and operational requirements for connection of the network to generating installations, consumers’ installations and interconnector circuits, to be known as the “network code”, are developed and published without delay, but not later than six months from the entry into force of these Regulations in the Government Gazette. These requirements shall be objective and non-discriminatory and shall allow for the interoperability of the electricity systems in Malta and its interoperability with other systems outside national territory as may be applicable. The network code shall be reviewed and revised at regular intervals and#or as may be necessary to meet the objectives of these Regulations.
B 2075

Network operation.

B 2076

Criteria for public service obligations, dispatching and interconnectors.

Obligation to separate activities.

(5) The network operator shall be responsible for managing energy flows on the system. To that end, the network operator shall be responsible for ensuring a secure, reliable and efficient electricity system and, in that context, for ensuring the availability of all necessary ancillary services, as may be prescribed by the competent authority.
(6) Pursuant to sub-regulation (5) at least every two years, the network operator shall draw up, under the supervision of the competent authority, a regular estimate of the available generating and conveyance capacity, the interconnectors with other systems, the actual conveyance capacity, all ancillary services and the current demand for electricity as well as the generating and conveyance capacity which is likely to be connected to the system, of the need for interconnectors with other systems, of potential conveyance capacity, of all ancillary services and of the demand for electricity. The estimate shall be published in the Government Gazette by the competent authority and shall cover the period of the subsequent five years.
14. Without prejudice to the supply of electricity on the basis of contractual obligations, including those which derive from the tendering specifications, public service obligations, the dispatching of generating installations and the use of interconnectors shall be determined on the basis of criteria which shall be approved by the competent authority and which shall be objective, published in the Government Gazette and applied in a non-discriminatory manner in order to ensure the proper functioning of the electricity system and sector in Malta. They shall take into account the economic precedence of electricity from available generating installations and the technical constraints on the system.
15. (1) The competent authority shall lay down provisions requiring the network operator to operate with the greatest possible independence from any generation and electricity supply activities and other activities not relating to the operation of the network. It shall also ensure that there is no flow of information between the single buyer activities that may be designated to the network operator, of an integrated electricity undertaking under regulation 16 and its generation and other activities, except for the information necessary to conduct the single buyer functions and responsibilities.
(2) Without prejudice to the generality of sub-regulation (1), the network operator shall not discriminate between system users, particularly in favour of its subsidiaries or shareholders.
(3) The competent authority shall regularly review the functions and operational conduct of the network operator and may, for
the purpose of achieving the objectives of these Regulations, modify its functions and the degree of independence required from other activities.
16. (1) A single buyer procedure shall be adopted for the organisation of access to the system for the period of time to be determined by the competent authority. Such procedure shall be operated in accordance with objective, transparent and non-discriminatory criteria.
(2) The designated network operator shall be the single buyer in Malta.
(3) The competent authority shall take those measures which it deems appropriate, to ensure>
(i) the establishment and publication of a non-discriminatory tariff for the use of the network in accordance with regulation 25<
(ii) that eligible customers, defined in regulation 21, are free to auto-produce electricity or conclude supply agreements to cover their needs with independent producers<
(iii) that auto-production and supply and purchase agreements under paragraph (b) are implemented through access to the network on the basis of the published tariff referred to in paragraph (a) and the requirements of the network code established under regulation 13<
(iv) that the single buyer is obliged to purchase the electricity contracted by an eligible customer from its producer.
17. The network operator shall not be required to enter into an agreement where>
(i) it demonstrates, to the satisfaction of the competent authority, that it lacks the necessary conveyance capacity<
(ii) it demonstrates, to the satisfaction of the competent authority that it is not in the public interest to provide additional capacity to meet the requirements which would be imposed by that agreement, or
(iii) entering such an agreement would be likely to involve the network operator into>
B 2077

Organisation of access to the network.

Cases where the network operator is not obliged to enter into an agreement.

B 2078

Refusal by a network operator to enter into an agreement.

Settlement of disputes.

Direct lines.

(a) a breach of the requirement of these Regulations or of the Act< or
(b) a breach of the network code, or
(c) a breach of the conditions of the licence granted to him under these Regulations, or
(iv) the person making the application does not undertake to be bound by the terms of the network code in so far as those terms are applicable to that person.
18. Where the network operator refuses to enter into an agreement under regulation 16, it shall serve a notice on the applicant stating the reasons for such refusal.
19. (1) Any dispute between the network operator and any person who is, or claims to be, a person to whom the network operator is obliged to make an offer for connection to and use of the network or relating to an offer made by the network operator or to the refusal of an offer by the network operator may, upon the application of that person, be determined by the competent authority. The network operator shall comply with all the conditions set in such determination.
(2) Without prejudice to the generality of regulation 15 and where providing for the use of the network or where setting the terms for the carrying out of works for the purpose of connection to the network, the network operator shall not unjustly discriminate between persons, particularly in favour of its subsidiaries or shareholders.
20. (1) Where access to the network for holders of licences or authorisations, granted under these Regulations, or eligible customers under regulation 21 hereof, is refused by the network operator due to a lack of capacity, the competent authority may authorise such person to construct a direct line not connected to the network for the purpose of facilitating the supply of electricity for which the application for use of the network was made and refused.
(2) The competent authority may refuse to authorise the construction of a direct line if the granting of such an authorisation would obstruct the application of the provisions of these Regulations. Duly substantiated reasons shall be given for such refusal.
(3) An authorisation to construct a direct line granted by the competent authority under this regulation shall require the person to whom the authorisation is granted to comply with such technical and
other conditions, including those which may be necessary to ensure that direct lines are compatible with the network, to such extent as the competent authority may specify in the authorisation.
21. (1) The competent authority shall specify eligible customers, meaning those customers having the legal capacity to auto- produce, contract for, or to be sold electricity by an independent producer in accordance with regulation 17.
(2) The competent authority shall establish and publish in the Government Gazette the criteria for the definition of eligible customers referred to in sub-regulation (1) together with all other appropriate information, by the 31st January, 2004, and by the 31st January of each year thereafter, in order to achieve the progressive opening of the electricity sector in accordance with the National Plan for the Opening up of the Electricity Sector in Malta under regulation 28>
Provided that the competent authority may prescribe and publish the means by which the consumption of electricity is estimated and calculated in any twelve-month period and the other criteria to be fulfilled for the purpose of qualifying as an eligible customer.
22. The competent authority shall create appropriate and efficient mechanisms for the regulation, control and transparency of the electricity sector in order to prevent abuse of dominant position, to the detriment of consumers. These mechanisms shall take account of the provisions of the Competition Act and of any other relevant legislation.
23. The competent authority shall take those measures, which it considers appropriate, to secure and protect the interests of all system and shall exercise its functions under these Regulations in a manner that ensures maximum economic efficiency with maximum benefit to consumers.
24. (1) Without prejudice to regulation 7 hereof, the competent authority shall have right of access to the accounts of electricity undertakings which it may need to consult in order to carry out any verifications relating to its functions under these Regulations.
(2) The competent authority shall take the necessary steps to ensure that the accounts of electricity undertakings are kept in accordance with sub-regulations (3) to (6).
(3) Electricity undertakings, whatever their system of ownership or legal form, shall draw up, submit to audit and publish their annual accounts in accordance with the rules set by the Companies
B 2079

Eligible customers.

Ensuring fair competition.

Cap. 379. Protection of

system.

Separation and transparency of accounts.

B 2080

Cap. 386.

Tariffs and charges.

Act concerning the preparation of the annual accounts of limited liability companies. Undertakings, which are not legally obliged to publish their annual accounts, shall keep a copy of such accounts at the disposal of the public in their head office.
(4) Integrated electricity undertakings shall, in their internal accounting, keep separate accounts for their generation, and conveyance activities and, where appropriate, consolidated accounts for other, non- electricity, activities as they would be required to do if the activities in question were carried out by separate undertakings, with a view to avoiding discrimination, cross-subsidisation and distortion of competition. They shall include a balance sheet and a profit and loss account for each activity in notes to their accounts>
Provided that separate internal accounts shall be kept for each activity requiring a separate licence under these Regulations, the Act or any other law.
(5) Undertakings shall specify in notes to the annual accounts the rules for the allocation of assets and liabilities and expenditure and income which they follow in drawing up the separate accounts referred to in sub-regulation (4). These rules may be amended only in exceptional cases and subject to the prior approval of the competent authority. Such amendments must be mentioned in the notes and must be duly substantiated.
(6) The annual accounts shall indicate in notes any transaction of a certain size conducted with affiliated undertakings, or with associated undertakings or with undertakings, which belong to the same shareholders.
(7) A provider licensed to conduct one or more activities subject to these Regulations shall not engage in any cross subsidisation with respect to other activities licensed under these Regulations or the Act.
25. (1) Tariffs in the electricity sector shall be regulated as follows>
(i) in market segments which are, in the opinion of the competent authority, subject to effective competition, tariffs shall be established by the operation of the market<
(ii) in market segments, which in the opinion of the competent authority, lack effective competition, tariffs shall be
subject to such controls and regulation as may be prescribed by the competent authority<
(iii) where no regulations are issued or are in force in terms of paragraph (ii) and no order has been published in the Government Gazette by the competent authority stating that tariffs in a particular market segment are to be regulated in accordance with paragraph (i), tariffs shall be regulated in accordance with tariff structures and mechanisms in terms of sub-regulations (2) to (5).
(iv) where an order has been published by the competent authority in terms of paragraphs (i) to (iii) of this sub-regulation or where regulations are prescribed in terms of paragraph (ii), any tariff structure and mechanism in force at the time of the publication of the said order or of the said regulations shall cease to have effect, without prejudice to its validity in respect of any preceding period, with regard to the market segments to which such order or regulations referred.
(2) Subject to the provisions of sub-regulation (1), the competent authority shall establish tariff structures and mechanisms allowing for the establishment and changes in the tariffs to be set in respect of electricity. Tariff structures and mechanisms may be established for such period as may be determined by the competent authority and shall be published in the Government Gazette.
(3) Where the tariff and, or tariff rate mechanism has not yet been established, or where a licensee, person or undertaking wishes to make a change in an existing tariff not provided for in an existing tariff mechanism, the licensee shall submit the tariffs it proposes to charge in respect of any service or product it is licensed to provide, to the competent authority for its approval.
If the competent authority approves the proposed tariffs, it shall communicate such approval to the licensee, and those tariffs shall be the rates, which the licensee may charge.
If the competent authority does not approve the proposed tariffs it shall notify its decision to the licensee, person or undertaking, in writing, setting out the reasons for its decision. The licensee may propose other rates acceptable to the competent authority.
26. (1) The network operator shall prepare a statement for the approval of the competent authority, within such time as the competent authority may direct, setting out the basis upon which tariffs and charges are imposed for the connection to and for the use of the network.
B 2081

Charges for connection to and use of the network.

B 2082
(2) The competent authority may give directions to the network operator from time to time, in accordance with the provisions of regulation 21, in respect of the basis for tariffs and charges for the connection to and for the use of the network.
(3) Notwithstanding sub-regulation (2) and any other provision of these Regulations, directions given by the competent authority may provide for>
(i) the methods of charging to be included in the statement to be prepared by the network operator,
(ii) the form and the extent of the information provided by the network operator to the applicants,
(iii) the form of charges and information about those charges to be included in the statement to be prepared by the network operator,
(iv) the procedure to be adopted in the submission by the network operator of a statement of charges and the approval by the competent authority of such statement, and
(v) the nature of information to be provided to applicants seeking connection and use of the network and its preparation and transparency.
(4) The network operator shall comply with directions given by the competent authority under this regulation.
(5) A charge for the connection to and the use of the network shall be calculated in accordance with these Regulations and with directions given by the competent authority under this regulation so as to enable the network operator to recover>
(i) the appropriate proportion of costs directly or indirectly incurred in carrying out necessary works,
(ii) a reasonable rate of return on the capital represented by such costs,
(iii) the extra costs incurred in the carrying out of public service obligations,
(iv) any other costs approved by the competent authority>
Provided that the competent authority shall determine what constitutes an “appropriate proportion” and “a reasonable rate of return” of costs.
27. (1) The Minister shall, by order, direct the competent authority to impose on operators in the electricity sector, in the general economic interest, public service obligations which may relate to security, including security of supply, to all consumers, regularity, quality and price of supplies, and environmental protection. Such obligations, and any revision thereof, shall be published within 28 days of their adoption>
Provided that the proposed public service obligation order made under this Regulation, or any revision thereof, shall be given by the Minister, or by the competent authority on his behalf, to the operator or operators upon which the obligation is to be imposed without delay and by not later than 28 days before the final order is made.
(2) Notwithstanding sub-regulation (1), an order made by the Minister under this regulation, may require the competent authority to impose on electricity undertakings a requirement to make such arrangements as are necessary to ensure that, in any calendar year, there shall be available a specific quantity of electricity from generating stations and ancillary services, chosen as a result of a competitive process, which use as their primary fuel source such renewable, sustainable or alternative forms of energy as may be specified in the order.
(3) An order made by the Minister under this regulation may provide for the recovery of additional costs, and for such costs to be recovered in respect to the specified period of time, and for that amount to be paid in respect of each year in that period to the operator or operators, subject to the certification or verification of such additional costs as having been incurred by the operator or operators in accordance with the order by the competent authority.
(4) The Minister, after consultation with the competent authority, may decide not to apply the provisions of regulations 12 and
16 to 21, insofar as the application of these provisions would obstruct the performance, in law or in fact, of the obligations imposed on electricity undertakings and provided that such a decision shall not affect the development of trade to a degree as would be contrary to the objectives of these Regulations.
28. (1) With a view to progressively achieving a competitive market in electricity, the competent authority shall ensure that electricity
B 2083

Public Service

Obligations.

Transitory provisions.

B 2084

Compliance orders.

Offences and penalties.

undertakings are operated in accordance with these Regulations, and shall adopt such measures as it considers necessary for the effective and timely implementation of the National Plan for the Opening of the Electricity Sector in Malta, which shall be adopted, within six months of the coming into force of these Regulations and shall be attached as a Schedule thereto, and which may be amended from time to time>
The competent authority shall not discriminate between licensed persons and, or undertakings and consumers with regard to either rights or obligations.
(2) The competent authority may issue such directives as may be required for the putting into effect of any of the provisions of these Regulations and of the National Plan for the Opening of the Electricity Sector in Malta. It may also amend or revoke such directives.
(3) Directives issued by the competent authority in pursuance of these Regulations, and any amendment or revocation thereof, shall be published in the Government Gazette.
29. (1) Where the competent authority becomes aware, whether through carrying out an investigation or otherwise, that any person subject to these Regulations has contravened any of the provisions contained therein, it shall issue a compliance order to the person concerned, ordering it to comply immediately with the provisions of the Regulations.
(2) A person or an undertaking which disobeys a compliance order issued by the competent authority shall, without prejudice to any other liability under these Regulations, the Act or any other law, be guilty of an offence and be liable, on conviction, to a fine (multa) of not less than one hundred liri and not more than one thousand liri for each day during which the offence subsists>
Provided that the aggregate fines may not exceed the maximum fine set in Article 31 of the Act.
30. (1) A person or undertaking which contravenes any of the provisions of these Regulations or of a licence or approval issued thereunder, shall be guilty of an offence and shall be liable, on conviction, to a fine (multa) of not less than one per centum and not more than ten per centum of its annual turnover, provided that the fine shall not exceed ten thousand liri.
(2) Any person who, when information with respect to these Regulations is requested by the competent authority, knowingly or recklessly>
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(a) gives any false, inaccurate or misleading information<
or
(b) supplies incomplete information< or
(c) fails, without reasonable cause to supply information requested within the time given< or
(d) prevents or hinders any investigation< or
(e) produces or furnishes, or causes or knowingly allows to be produced or furnished, any document or information which he knows to be false in any material respect,
shall be guilty of an offence and shall be liable, on conviction, to pay a fine (multa) of not less than one hundred liri and not more than one thousand liri.
(3) Without prejudice to sub-regulations (1) and (2), where a person or an undertaking fails to comply with the provisions of these Regulations for a period exceeding six months, the competent authority may revoke the licence of that person or undertaking.