S.L. 545.41 Art. 24Distribution and supply tariffs and right of appeal from a decision of the Authority.    Cap. 490.      Cap. 12. Variable tariffs. Special agreements. Tariff categories.

(1) The distribution system operator shall submit, for the approval of the Regulator, a set of tariffs for the connection to the distribution system, and distribution and supply of electricity in relation to any calendar year. The tariffs shall be such that they provide sufficient revenue to the distribution system operator and shall in particular:

(a) cover the costs of the distribution system operator, including operational, administrative and financial costs, incurred in connection with the generation, distribution and supply of electricity, and may include but not be limited to costs relating to operational asset impairment, non-recoverable tax and duties, excluding corporate tax on profits, and accumulated losses;

(b) be such as to allow the distribution system operator to meet periodic repayments on long-term indebtedness to the extent that any such repayment exceeds the provisions for depreciation;

(c) provide a reasonable return on equity; and

(d) be designed to promote end-use energy efficiency in the domestic and residential sector, as appropriate.

(2) Tariffs shall be applied to all customers on a non-discriminatory basis and the distribution system operator shall not exercise undue preference, or undue discrimination towards any person or class of persons similarly situated unless the distribution system operator, having regard to the place and time of connection, the quantity of energy supplied, the required load and power factor, the purpose for which the connection is intended and, or utilised, and any other relevant circumstance, deems it necessary to exercise preferential or discriminatory treatment.

(3) The distribution system operator shall, together with the proposed tariffs, submit to the Regulator all necessary documentation in support of its proposals, including the methodologies underlying the calculation of the tariffs and any other information as the Regulator may request. Any request from the Regulator for the submission of additional information shall be made within three (3) months from submission of the proposal by the distribution system operator.

(4) Any information submitted to the Regulator by the distribution system operator in accordance with this regulation shall be considered as confidential and economically sensitive and shall be handled accordingly.

(5) The Regulator shall either approve or reject the proposed tariffs and shall notify its decision to the distribution system operator within six (6) months from the date of submission of the proposal.

(6) Without prejudice to sub-regulation (7), where the Regulator intends to reject the proposed tariffs, it shall notify the distribution system operator to this effect and shall give the distribution system operator the opportunity to make representations to the Regulator prior to making its decision.

(7) The Regulator may only reject the proposed tariffs when such tariffs fail to comply with the criteria provided for in sub-regulation (1). Any decision to reject shall clearly state the reasons for the rejection.

(8) Without prejudice to sub-regulation (9), when the proposed tariffs are rejected by the Regulator pursuant to sub-regulation (7), the distribution system operator shall take account of the reasons for rejection set out in the decision and re-submit the tariffs to the Regulator for approval.

(9) The Administrative Review Tribunal shall have jurisdiction to hear and determine appeals from decisions of the

Authority made under these regulations in terms of the Administrative

Justice Act, which appeal shall be filed by not later than twenty (20) days from the service of the said Authority’s decision, wherein the aggrieved party shall specify the reasons on the basis of which the said decision of the Authority should be cancelled or modified.

(10) In determining an appeal, the Administrative Review Tribunal shall, take into account: inter alia,

(a) the principles established in this regulation;

(b) the tariff structure proposed by the distribution system operator and any and all information provided to the Regulator in connection with such tariffs; and

(c) any relevant correspondence between the Regulator and the distribution system operator, and any legitimate expectation created by law, regulation, or by the Regulator in favour of the distribution system operator:

Provided that any party to the proceedings before the

Administrative Review Tribunal who feels aggrieved by a decision of the said Tribunal, may appeal to the Court of Appeal on a point of law in accordance with the Code of Organization and Civil Procedure.

(11) The distribution system operator may submit, for the approval of the Regulator, a methodology which shall be used for the calculation of tariffs other than those established by these regulations. Together with the proposal, the distribution system operator shall provide all relevant information in relation to the proposed methodology, including the intended uses of the tariff. Where the Regulator requires additional information from the distribution system operator, it shall make the request for such information within three (3) months from the submission of the proposal.

(12) Where the distribution system operator submits a proposal in accordance with sub-regulation (11), the provisions of sub-regulations (4) to (10) shall apply.

(13) The distribution system operator may enter into special agreements with one (1) or more customers for the charging of rates and tariffs other than those established by these regulations.

(14) Where, in any special agreement, the rate or tariff to be charged is different from the tariffs established by these regulations or is not a variable rate or tariff calculated in accordance with a methodology approved by the Regulator in accordance with sub-regulations (11) and (12), the distribution system operator shall obtain prior approval of the methodology by the Regulator before entering into the special agreement.

(15) The supply of electricity to a residential, non-residential, and domestic premises shall be charged in accordance with the First Schedule, Second Schedule and Third Schedule, respectively.

(16) Notwithstanding the provisions of any other law, the distribution system operator shall, at any time and in its absolute discretion, while having regard to the provisions of these regulations, determine whether a premises is to be deemed a residential premises, a non-residential premises or a domestic premises for the purposes of these regulations.

(17) A customer may submit an application to connect one (1) or more premises to be used solely and regularly as private dwellings, as may be confirmed by documentary proof, and register such units of residence as a domestic premises:

Provided that supply to the common parts of a development consisting entirely of building units used exclusively for residential purposes may also be submitted for registration as domestic premises:

Provided further that, unless otherwise authorised by the distribution system operator, a customer shall only be entitled to register as a domestic premises one (1) primary residence, one (1) secondary residence and one (1) garage which does not exceed fifty

(50) square metres in area and is used exclusively for private and non-commercial purposes.

(18) The customers may apply to the distribution system operator to register individuals having their primary residence in Malta on a residential premises service in relation to the said primary residence:

Provided that no individual shall be registered on more than one (1) residential premises service at the same time, and that no individual shall be registered on a garage or on the common parts of a development as a residential premises service.

(19) A premises which is not registered as a domestic premises or as a residential premises in accordance with this regulation, or in relation to which there is no application for registration as a domestic premises or a residential premises in accordance with this regulation, shall be considered as a non-residential premises, unless determined otherwise by the distribution system operator.

(20) The following provisions shall apply with respect to the registration of persons on a premises classified as domestic premises or residential premises:

(a) the customers shall furnish in writing to the distribution system operator, within such time as may be stipulated by the distribution system operator, any information together with any supporting document which may be required for the purpose of such registration;

(b) the customers shall notify the distribution system operator in writing of any change in the circumstances forming the basis on which the registration is made, and such notification shall be made by not later than one (1) month from the occurrence of such change in circumstances;

(c) any change in the number of persons registered on a domestic premises or on a residential premises shall be taken into account, for the purpose of such registration, from the date of the first periodic meter reading after the change in number of persons occurs or the date on which the distribution system operator is notified in writing of such change, at the discretion of the distribution system operator;

(d) a person residing in a premises may apply to the distribution system operator for a premises, other than that in which such person resides, to be registered as a domestic premises;

(e) an application shall be made in such form or procedure as may be prescribed by the distribution system operator from time to time, and which shall be completed in full and submitted to the distribution system operator in the manner so prescribed; and

(f) every arrangement made in accordance with this sub-regulation shall be valid until the 31st December of the year in which it was made or for which it was renewed, and it shall be deemed to have been renewed for the next following year, unless the customer, not later than the last day of November of the year in which the arrangement is in force, gives notice in writing to the distribution system operator that the customer does not want the said arrangement to be renewed.

(21) For the purposes of these regulations, the charging of electric vehicles for non-residential premises, metered separately, shall be billed in accordance with the Fourth Schedule.

(22) For the purposes of these regulations, the charging of electric vehicles in residential premises and domestic premises, metered separately, shall be billed in accordance with the Fifth Schedule.