1.Member States shall apply the correction factors set out in Annex III(a) in order to adapt the harmonised efficiency reference values set out in Annex I to the average climatic situation in each Member State.
The correction factors for the average climatic situation shall not apply to fuel cell-based cogeneration technology.
If on the territory of a Member State official meteorological data show differences in the annual ambient temperature of 5 oC or more, that Member State may, subject to notification to the Commission, use several climate zones for the purpose of the first subparagraph using the method set out in Annex III(b).
2.Member States shall apply the correction factors set out in Annex IV in order to adapt the harmonised efficiency reference values set out in Annex I to avoided grid losses.
The correction factors for avoided grid losses shall not apply to wood fuels and biogas.
3.Where Member States apply both the correction factors set out in Annex III(a) and those set out in Annex IV, they shall apply Annex III(a) before applying Annex IV.