Commission Regulation (EU) 2016/1388Show full title

Article 49 Principles of cost-benefit analysis

1. Demand facility owners, DSOs and CDSOs shall assist and contribute to the cost-benefit analysis undertaken according to Articles 48 and 53 and provide the necessary data as requested by the relevant system operator or relevant TSO within three months of receiving a request, unless agreed otherwise by the relevant TSO. For the preparation of a cost-benefit-analysis by a demand facility owner or prospective owner, or by a DSO/CDSO or prospective operator, assessing a potential derogation pursuant to Article 52, the relevant TSO and DSO shall assist and contribute to the cost-benefit analysis and provide the necessary data as requested by the demand facility owner or prospective owner, or by the DSO/CDSO or prospective operator, within three months of receiving a request, unless agreed otherwise by the demand facility owner or prospective owner, or by the DSO/CDSO or prospective operator.

2. A cost-benefit analysis shall be in line with the following principles:

(a) the relevant TSO, demand facility owner or prospective owner, DSO/CDSO or prospective operator, shall base its cost-benefit analysis on one or more of the following calculating principles:

(i)

the net present value;

(ii)

the return on investment;

(iii)

the rate of return;

(iv)

the time needed to break even;

(b) the relevant TSO, demand facility owner or prospective owner, DSO/CDSO or prospective operator, shall also quantify socioeconomic benefits in terms of improvement in security of supply and shall include at least:

(i)

the associated reduction in probability of loss of supply over the lifetime of the modification;

(ii)

the probable extent and duration of such loss of supply;

(iii)

the societal cost per hour of such loss of supply;

(c) the relevant TSO, demand facility owner or prospective owner, DSO/CDSO or prospective operator, shall quantify the benefits to the internal market in electricity, cross-border trade and integration of renewable energies, including at least:

(i)

the active power frequency response;

(ii)

the balancing reserves;

(iii)

the reactive power provision;

(iv)

congestion management;

(v)

defence measures;

(d) the relevant TSO shall quantify the costs of applying the necessary rules to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems, or existing demand units, including at least:

(i)

the direct costs incurred in implementing a requirement;

(ii)

the costs associated with attributable loss of opportunity;

(iii)

the costs associated with resulting changes in maintenance and operation.