Commission Regulation (EU) 2016/1388Show full title

TITLE I U.K. GENERAL PROVISIONS

Article 1 U.K. Subject matter

1. This Regulation establishes a network code which lays down the requirements for grid connection of:

(a) transmission-connected demand facilities;

(b) transmission-connected distribution facilities;

(c) distribution systems, including closed distribution systems;

(d) demand units, used by a demand facility or a closed distribution system to provide demand response services to relevant system operators and relevant TSOs.

2. This Regulation, therefore, helps to ensure fair conditions of competition in the internal electricity market, to ensure system security and the integration of renewable electricity sources, and to facilitate Union-wide trade in electricity.

3. This Regulation also lays down the obligations for ensuring that system operators make appropriate use of the demand facilities' and distribution systems' capabilities in a transparent and non-discriminatory manner to provide a level playing field throughout the Union.

Article 2 U.K. Definitions

For the purposes of this Regulation, the definitions in Article 2 of Directive 2012/27/EU of the European Parliament and of the Council(1), Article 2 of Regulation (EC) No 714/2009, Article 2 of Commission Regulation (EU) 2015/1222(2), Article 2 of Commission Regulation (EU) 2016/631(3), Article 2 of Commission Regulation (EU) No 543/2013(4) and Article 2 of Directive 2009/72/EC shall apply.

In addition, the following definitions shall apply:

(1)

‘demand facility’ means a facility which consumes electrical energy and is connected at one or more connection points to the transmission or distribution system. A distribution system and/or auxiliary supplies of a power generating module do no constitute a demand facility;

(2)

‘transmission-connected demand facility’ means a demand facility which has a connection point to a transmission system;

(3)

‘transmission-connected distribution facility’ means a distribution system connection or the electrical plant and equipment used at the connection to the transmission system;

(4)

‘demand unit’ means an indivisible set of installations containing equipment which can be actively controlled by a demand facility owner or by a CDSO, either individually or commonly as part of demand aggregation through a third party;

(5)

‘closed distribution system’ means a distribution system classified pursuant to Article 28 of Directive 2009/72/EC as a closed distribution system by national regulatory authorities or by other competent authorities, where so provided by the Member State, which distributes electricity within a geographically confined industrial, commercial or shared services site and does not supply household customers, without prejudice to incidental use by a small number of households located within the area served by the system and with employment or similar associations with the owner of the system;

(6)

‘main demand equipment’ means at least one of the following equipment: motors, transformers, high voltage equipment at the connection point and at the process production plant;

(7)

‘transmission-connected distribution system’ means a distribution system connected to a transmission system, including transmission-connected distribution facilities;

(8)

‘maximum import capability’ means the maximum continuous active power that a transmission-connected demand facility or a transmission-connected distribution facility can consume from the network at the connection point, as specified in the connection agreement or as agreed between the relevant system operator and the transmission-connected demand facility owner or transmission-connected distribution system operator respectively;

(9)

‘maximum export capability’ means the maximum continuous active power that a transmission-connected demand facility or a transmission-connected distribution facility, can feed into the network at the connection point, as specified in the connection agreement or as agreed between the relevant system operator and the transmission-connected demand facility owner or transmission-connected distribution system operator respectively;

(10)

‘low frequency demand disconnection’ means an action where demand is disconnected during a low frequency event in order to recover the balance between demand and generation and restore system frequency to acceptable limits;

(11)

‘low voltage demand disconnection’ means a restoration action where demand is disconnected during a low voltage event in order to recover voltage to acceptable limits;

(12)

‘on load tap changer’ means a device for changing the tap of a winding, suitable for operation while the transformer is energised or on load;

(13)

‘on load tap changer blocking’ means an action that blocks the on load tap changer during a low voltage event in order to stop transformers from further tapping and suppressing voltages in an area;

(14)

‘control room’ means a relevant system operator's operation centre;

(15)

‘block loading’ means the maximum step active power loading of reconnected demand during system restoration after black-out;

(16)

‘demand response active power control’ means demand within a demand facility or closed distribution system that is available for modulation by the relevant system operator or relevant TSO, which results in an active power modification;

(17)

‘demand response reactive power control’ means reactive power or reactive power compensation devices in a demand facility or closed distribution system that are available for modulation by the relevant system operator or relevant TSO;

(18)

‘demand response transmission constraint management’ means demand within a demand facility or closed distribution system that is available for modulation by the relevant system operator or relevant TSO to manage transmission constraints within the system;

(19)

‘demand aggregation’ means a set of demand facilities or closed distribution systems which can operate as a single facility or closed distribution system for the purposes of offering one or more demand response services;

(20)

‘demand response system frequency control’ means demand within a demand facility or closed distribution system that is available for reduction or increase in response to frequency fluctuations, made by an autonomous response from the demand facility or closed distribution system to diminish these fluctuations;

(21)

‘demand response very fast active power control’ means demand within a demand facility or closed distribution system that can be modulated very fast in response to a frequency deviation, which results in a very fast active power modification;

(22)

‘demand response unit document’ (DRUD) means a document, issued either by the demand facility owner or the CDSO to the relevant system operator for demand units with demand response and connected at a voltage level above 1 000 V, which confirms the compliance of the demand unit with the technical requirements set out in this Regulation and provides the necessary data and statements, including a statement of compliance.

Article 3 U.K. Scope of application

1. The connection requirements set out in this Regulation shall apply to:

(a) new transmission-connected demand facilities;

(b) new transmission-connected distribution facilities;

(c) new distribution systems, including new closed distribution systems;

(d) new demand units used by a demand facility or a closed distribution system to provide demand response services to relevant system operators and relevant TSOs.

The relevant system operator shall refuse to allow the connection of a new transmission-connected demand facility, a new transmission-connected distribution facility, or a new distribution system, which does not comply with the requirements set out in this Regulation and which is not covered by a derogation granted by the regulatory authority, or other authority where applicable in a Member State pursuant to Article 50. The relevant system operator shall communicate such refusal, by means of a reasoned statement in writing, to the demand facility owner, DSO, or CDSO and, unless specified otherwise by the regulatory authority, to the regulatory authority.

Based on compliance monitoring in accordance with Title III, the relevant TSO shall refuse demand response services subject to Articles 27 to 30 from new demand units not fulfilling the requirements set out in this Regulation.

2. This Regulation shall not apply to:

(a) demand facilities and distribution systems connected to the transmission system and distribution systems, or to parts of the transmission system or distribution systems, of islands of Member States of which the systems are not operated synchronously with either the Continental Europe, Great Britain, Nordic, Ireland and Northern Ireland or Baltic synchronous area;

(b) storage devices except for pump-storage power generating modules in accordance with Article 5(2).

3. In case of demand facilities or closed distribution systems with more than one demand unit, these demand units shall together be considered as one demand unit if they cannot be operated independently from each other or can reasonably be considered in a combined manner.

Article 4 U.K. Application to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems and existing demand units used to provide demand response services

1. Existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems and existing demand units that are or can be used by a demand facility or a closed distribution system to provide demand response services to a relevant system operator or relevant TSO, are not subject to the requirements of this Regulation, except where:

(a) an existing transmission-connected demand facility, an existing transmission-connected distribution facility, an existing distribution system, or an existing demand unit within a demand facility at a voltage level above 1 000 V or a closed distribution system connected at a voltage level above 1 000 V, has been modified to such an extent that its connection agreement must be substantially revised in accordance with the following procedure:

(i)

demand facility owners, DSOs, or CDSOs who intend to undertake the modernisation of a plant or replacement of equipment impacting the technical capabilities of the transmission-connected demand facility, the transmission-connected distribution facility, the distribution system, or the demand unit shall notify their plans to the relevant system operator in advance;

(ii)

if the relevant system operator considers that the extent of the modernisation or replacement of equipment is such that a new connection agreement is required, the system operator shall notify the relevant regulatory authority or, where applicable, the Member State; and

(iii)

the relevant regulatory authority or, where applicable, the Member State shall decide if the existing connection agreement needs to be revised or a new connection agreement is required and which requirements of this Regulation shall apply; or

(b) a regulatory authority or, where applicable, a Member State decides to make an existing transmission-connected demand facility, an existing transmission-connected distribution facility, an existing distribution system, or an existing demand unit subject to all or some of the requirements of this Regulation, following a proposal from the relevant TSO in accordance with paragraphs 3, 4 and 5.

2. For the purposes of this Regulation, a transmission-connected demand facility, a transmission-connected distribution facility, a distribution system, or a demand unit that is, or can be, used by a demand facility or a closed distribution system to provide demand response services to a relevant system operator or relevant TSO, shall be considered as existing if:

(a) it is already connected to the network on the date of entry into force of this Regulation; or

(b) the demand facility owner, DSO, or CDSO has concluded a final and binding contract for the purchase of the main demand equipment or the demand unit by two years after the entry into force of the Regulation. The demand facility owner, DSO, or CDSO must notify the relevant system operator and relevant TSO of the conclusion of the contract within 30 months after the entry into force of the Regulation.

The notification submitted by the demand facility owner, DSO, or CDSO to the relevant system operator and the relevant TSO shall at least indicate the contract title, its date of signature and date of entry into force, and the specifications of the main demand equipment or the demand unit to be constructed, assembled or purchased.

A Member State may provide that in specified circumstances the regulatory authority may determine whether the transmission-connected demand facility, the transmission-connected distribution facility, the distribution system, or the demand unit is to be considered existing or new.

3. Following a public consultation in accordance with Article 9 and in order to address significant factual changes in circumstances, such as the evolution of system requirements including penetration of renewable energy sources, smart grids, distributed generation or demand response, the relevant TSO may propose to the regulatory authority concerned, or where applicable, to the Member State to extend the application of this Regulation to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems, or existing demand units used by a demand facility or a closed distribution system to provide demand response services to a relevant system operator or relevant TSO.

For that purpose a sound and transparent quantitative cost-benefit analysis shall be carried out, in accordance with Articles 48 and 49. The analysis shall indicate:

(a) the costs, in regard to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems and existing demand units, of requiring compliance with this Regulation;

(b) the socioeconomic benefit resulting from applying the requirements set out in this Regulation; and

(c) the potential of alternative measures to achieve the required performance.

4. Before carrying out the quantitative cost-benefit analysis referred to in paragraph 3, the relevant TSO shall:

(a) carry out a preliminary qualitative comparison of costs and benefits;

(b) obtain approval from the relevant regulatory authority or, where applicable, the Member State.

5. The relevant regulatory authority or, where applicable, the Member State shall decide on the extension of the applicability of this Regulation to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems, or existing demand units, within six months of receipt of the report and the recommendation of the relevant TSO in accordance with paragraph 4 of Article 48. The decision of the regulatory authority or, where applicable, the Member State shall be published.

6. The relevant TSO shall take account of the legitimate expectations of demand facility owners, DSOs and CDSOs as part of the assessment of the application of this Regulation to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems, or existing demand units.

7. The relevant TSO may assess the application of some or all of the provisions of this Regulation to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems, or existing demand units, every three years in accordance with the requirements and process set out in paragraphs 3 to 5.

Article 5 U.K. Application to pump-storage power generating modules and industrial sites

1. This Regulation shall not apply to pump-storage power generating modules that have both generating and pumping operation mode.

2. Any pumping module within a pump-storage station that only provides pumping mode shall be subject to the requirements of this Regulation and shall be treated as a demand facility.

3. In the case of industrial sites with an embedded power generating module, the system operator of an industrial site, the demand facility owner, the power generating facility owner and the relevant system operator to whose system the industrial site is connected, may agree, in coordination with the relevant TSO, on conditions for disconnection of critical loads from the relevant system. The objective of the agreement shall be to secure production processes of the industrial site in case of disturbed conditions in the relevant system.

Article 6 U.K. Regulatory aspects

1. Requirements of general application to be established by relevant system operators or TSOs under this Regulation shall be subject to approval by the entity designated by the Member State and be published. The designated entity shall be the regulatory authority unless otherwise provided by the Member State.

2. For site specific requirements to be established by relevant system operators or TSOs under this Regulation, Member States may require approval by a designated entity.

3. When applying this Regulation, Member States, competent entities and system operators shall:

(a) apply the principles of proportionality and non-discrimination;

(b) ensure transparency;

(c) apply the principle of optimisation between the highest overall efficiency and lowest total costs for all parties involved;

(d) respect the responsibility assigned to the relevant TSO in order to ensure system security, including as required by national legislation;

(e) consult with relevant DSOs and take account of potential impacts on their system;

(f) take into consideration agreed European standards and technical specifications.

4. The relevant system operator or TSO shall submit a proposal for requirements of general application, or the methodology used to calculate or establish them, for approval by the competent entity within two years of entry into force of this Regulation.

5. Where this Regulation requires the relevant system operator, relevant TSO, demand facility owner, power generating facility owner, DSO and/or CDSO to seek agreement, they shall endeavour to do so within six months after a first proposal has been submitted by one party to the other parties. If no agreement has been found within this time frame, each party may request the relevant regulatory authority to issue a decision within six months.

6. Competent entities shall take decisions on proposals for requirements or methodologies within six months following the receipt of such proposals.

7. If the relevant system operator or TSO deems an amendment to requirements or methodologies as provided for and approved under paragraph 1 and 2 to be necessary, the requirements provided for in paragraphs 3 to 8 shall apply to the proposed amendment. System operators and TSOs proposing an amendment shall take into account the legitimate expectations, if any, of demand facility owners, DSOs, CDSOs, equipment manufacturers and other stakeholders based on the initially specified or agreed requirements or methodologies.

8. Any party having a complaint against a relevant system operator or a TSO in relation to that relevant system operator's or TSO's obligations under this Regulation may refer the complaint to the regulatory authority which, acting as dispute settlement authority, shall issue a decision within two months after receipt of the complaint. That period may be extended by two months where additional information is sought by the regulatory authority. That extended period may be further extended with the agreement of the complainant. The regulatory authority's decision shall have binding effect unless and until overruled on appeal.

9. Where the requirements under this Regulation are to be established by a relevant system operator that is not a TSO, Member States may provide that instead the TSO be responsible for establishing the relevant requirements.

Article 7 U.K. Multiple TSOs

1. Where more than one TSO exists in a Member State, this Regulation shall apply to all those TSOs.

2. Member States may, under the national regulatory regime, provide that the responsibility of a TSO to comply with one or some or all obligations under this Regulation is assigned to one or more specific TSOs.

Article 8 U.K. Recovery of costs

1. The costs borne by system operators subject to network tariff regulation and stemming from the obligations laid down in this Regulation shall be assessed by the relevant regulatory authorities. Costs assessed as reasonable, efficient and proportionate shall be recovered through network tariffs or other appropriate mechanisms.

2. If requested by the relevant regulatory authorities, system operators referred to in paragraph 1 shall, within three months of the request, provide the information necessary to facilitate assessment of the costs incurred.

Article 9 U.K. Public consultation

1. Relevant system operators and relevant TSOs shall carry out a consultation with stakeholders, including the competent authorities of each Member State on:

(a) proposals to extend the applicability of this Regulation to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems and existing demand units in accordance with Article 4(3);

(b) the report prepared in accordance with Article 48(3);

(c) the cost-benefit analysis undertaken in accordance with Article 53(2);

(d) the requirements for demand units specified in accordance with Article 28(2)(c),(e),(f),(k) and (l) and Article 29(2)(c) to (e).

The consultation shall last at least for a period of one month.

2. The relevant system operators or relevant TSOs shall duly take into account the views of the stakeholders resulting from the consultations, prior to the submission of the draft proposal, the report, the cost-benefit analysis, or the requirements for demand units, for approval by the regulatory authority, competent entity or, if applicable, the Member State. In all cases, a sound justification for including or not the view of the stakeholders shall be provided and published in a timely manner before, or simultaneously with, the publication of the proposal, the report, the cost-benefit analysis, or the requirements for demand units specified in accordance with Article 28 and Article 29.

Article 10 U.K. Stakeholder involvement

The Agency for the Cooperation of Energy Regulators (the Agency), in close cooperation with the European Network of Transmission System Operators for Electricity (ENTSO for Electricity), shall organise stakeholder involvement, regarding the requirements for the grid connection of transmission-connected demand facilities, transmission-connected distribution facilities, distribution systems and demand units used by a demand facility or a closed distribution system to provide demand response services to relevant system operators and relevant TSOs, and other aspects of the implementation of this Regulation. This shall include regular meetings with stakeholders to identify problems and propose improvements notably related to the requirements for grid connection of transmission-connected demand facilities, transmission-connected distribution facilities, distribution systems and demand units used by a demand facility or a closed distribution system to provide demand response services to relevant system operators and relevant TSOs.

Article 11 U.K. Confidentiality obligations

1. Any confidential information received, exchanged or transmitted pursuant to this Regulation shall be subject to the conditions of professional secrecy laid down in paragraphs 2, 3 and 4.

2. The obligation of professional secrecy shall apply to any persons, regulatory authorities, or entities subject to the provisions of this Regulation.

3. Confidential information received by the persons, regulatory authorities, or entities referred to in paragraph 2 in the course of their duties may not be divulged to any other person or authority, without prejudice to cases covered by national law, the other provisions of this Regulation or other relevant Union law.

4. Without prejudice to cases covered by national or Union law, regulatory authorities, entities, or persons who receive confidential information pursuant to this Regulation may use it only for the purpose of carrying out their duties under this Regulation.

(1)

Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1).

(2)

Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24).

(3)

Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (OJ L 112, 27.4.2016, p. 1).

(4)

Commission Regulation (EU) No 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council (OJ L 163, 15.6.2013, p. 1).