Regulation (EC) No 663/2009 of the European Parliament and of the CouncilShow full title

SECTION 1 U.K. Gas and electricity infrastructure projects

Article 4 U.K. Objectives

The Community shall promote gas and electricity infrastructure projects having the highest Community added value and contributing to the following objectives:

(a)

security and diversification of sources of energy, routes and supplies;

(b)

the optimisation of the capacity of the energy network and the integration of the internal energy market, in particular concerning cross-border sections;

(c)

the development of the network to strengthen economic and social cohesion by reducing the isolation of the least favoured regions or islands of the Community;

(d)

the connection and integration of renewable energy resources; and

(e)

the safety, reliability and interoperability of interconnected energy networks, including the ability to use multidirectional gas flows where necessary.

Article 5 U.K. Priorities

The EEPR shall serve urgently to adapt and develop energy networks of particular importance to the Community in support of the operation of the internal energy market and, in particular, to increase interconnection capacity, security and diversification of supply and to overcome environmental, technical and financial obstacles. Special Community support is necessary to develop energy networks more intensively and to accelerate their construction, notably where the diversity of routes and sources of supply is low.

Article 6 U.K. Granting of Community financial assistance

1. Financial assistance under the EEPR (EEPR assistance) for gas and electricity infrastructure projects shall be awarded for actions that implement the projects listed in Part A of the Annex or parts of such projects, and which contribute to the objectives laid down in Article 4.

2. The Commission shall call for proposals to identify the actions referred to in paragraph 1 and shall assess the compliance of those proposals with the eligibility criteria laid down in Article 7 and the selection and award criteria laid down in Article 8.

3. The Commission shall inform the beneficiaries of any EEPR assistance to be granted.

Article 7 U.K. Eligibility

1. Proposals shall be eligible for EEPR assistance only if they implement the projects listed in Part A of the Annex, do not exceed the maximum amount of EERP assistance laid down therein and fulfil the selection and award criteria under Article 8.

2. Proposals may be submitted:

(a) by one or several Member States, acting jointly;

(b) with the agreement of all Member States directly concerned by the project in question:

(i)

by one or several public or private undertakings or bodies acting jointly;

(ii)

by one or several international organisations acting jointly; or

(iii)

by a joint undertaking.

3. Proposals submitted by natural persons shall not be eligible.

Article 8 U.K. Selection and award criteria

1. In assessing the proposals received under the call for proposals referred to in Article 6(2), the Commission shall apply the following selection criteria:

(a) the soundness and technical adequacy of the approach;

(b) the soundness of the financial package for the full investment phase of the action.

2. In assessing the proposals received under the call for proposals referred to in Article 6(2), the Commission shall apply the following award criteria:

(a) maturity, defined as reaching the investment stage, and incurring substantial capital expenditure by the end of 2010;

(b) the extent to which lack of access to finance is delaying the implementation of the action;

(c) the extent to which EEPR assistance will stimulate public and private finance;

(d) socioeconomic impacts;

(e) environmental impacts;

(f) the contribution to the continuity and interoperability of the energy network, and to the optimisation of its capacity;

(g) the contribution to the improvement of service quality, safety and security;

(h) the contribution to the creation of a well-integrated energy market.

Article 9 U.K. Funding conditions

1. EEPR assistance shall contribute to project-related expenditure for the implementation of the project, incurred by the beneficiaries or by third parties responsible for the implementation of a project.

2. EEPR assistance shall not exceed 50 % of the eligible costs.

Article 10 U.K. Instruments

1. Following the call for proposals referred to in Article 6(2), the Commission, acting in accordance with the management procedure referred to in Article 26(2), shall select the proposals to receive EEPR assistance and determine the amount of EEPR assistance to be granted. The Commission shall specify the conditions and methods for the implementation of the proposals.

2. EEPR assistance shall be granted on the basis of Commission decisions.

Article 11 U.K. Member States’ financial responsibilities

1. Member States shall undertake the technical monitoring and financial control of projects in close cooperation with the Commission and shall certify the amount and the conformity with this Regulation of the expenditure incurred in respect of projects or parts of projects. Member States may request the participation of the Commission during on-the-spot checks.

2. Member States shall inform the Commission of the measures taken under paragraph 1 and, in particular, shall supply a description of the control, management and monitoring systems established to ensure that projects are successfully completed.