Commission Regulation (EU) 2016/631Show full title

Article 39 U.K. Principles of cost-benefit analysis

1. Power-generating facility owners and DSOs including CDSOs shall assist and contribute to the cost-benefit analysis undertaken according to Articles 38 and 63 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 power-generating facility owner, or prospective owner, assessing a potential derogation pursuant to Article 62, the relevant TSO and DSO, including CDSO, shall assist and contribute to the cost-benefit analysis and provide the necessary data as requested by the power-generating facility owner, or the prospective owner, within three months of receiving a request, unless agreed otherwise by the power-generating facility owner or the prospective owner.

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

(a) the relevant TSO, relevant system operator, power-generating facility owner or prospective owner 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, relevant system operator, power-generating facility owner or prospective owner 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, relevant system operator, power-generating facility owner or prospective owner shall quantify the benefits to [F1 electricity markets], 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 power-generating modules, 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.

Textual Amendments

F1 Words in Art. 39(2)(c) substituted (E.W.S.) (31.12.2020) by The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 1 para. 23