TITLE VAPPLICATIONS AND DEROGATIONS

CHAPTER 1 Cost-benefit analysis

Article 49Principles 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:

  1. (i)

    the net present value;

  2. (ii)

    the return on investment;

  3. (iii)

    the rate of return;

  4. (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:

  1. (i)

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

  2. (ii)

    the probable extent and duration of such loss of supply;

  3. (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 F1electricity markets, cross-border trade and integration of renewable energies, including at least:

  1. (i)

    the active power frequency response;

  2. (ii)

    the balancing reserves;

  3. (iii)

    the reactive power provision;

  4. (iv)

    congestion management;

  5. (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:

  1. (i)

    the direct costs incurred in implementing a requirement;

  2. (ii)

    the costs associated with attributable loss of opportunity;

  3. (iii)

    the costs associated with resulting changes in maintenance and operation.