S.L. 623.7 Art. 22Duties of the Regulator. S.L. 545. 13. S.L. 545. 12. S.L. 545. 13.

(1) The Regulator shall pay due regard to energy efficiency in carrying out the regulatory tasks specified in the

Electricity Market Regulations and the Natural Gas Market

Regulations regarding its decisions on the operation of the gas and electricity infrastructure. The Regulator shall in particular through the development of network tariffs and regulations, within the framework of the Electricity Market Regulations and taking into account the costs and benefits of each measure, provide incentives for grid operators to make available system services to network users permitting them to implement energy efficiency improvement measures in the context of the continuing deployment of smart grids. Such systems services may be determined by the system operator and shall not adversely impact the security of the system. For electricity, network regulation and network tariffs shall fulfil the criteria in the Eleventh Schedule, taking into account guidelines and codes developed pursuant to Regulation 714/2009.

(2) By the 30th June 2015, distribution system operators shall ensure that:

(a) an assessment is undertaken of the energy efficiency potentials of their gas and electricity infrastructure, notably regarding transmission, distribution, load management and interoperability, and connection to energy generating installations, including access possibilities for micro energy generators;

(b) concrete measures and investments are identified for the introduction of cost-effective energy efficiency improvements in the network infrastructure, with a timetable for their introduction.

(3) The Regulator may permit components of schemes and tariff structures with a social aim for net-bound energy transmission and distribution:

Provided that any disruptive effects on the transmission and distribution system are kept to the minimum necessary and are not disproportionate to the social aim.

(4) The distribution system operator, subject to the approval of the Regulator, shall remove those incentives in transmission and distribution tariffs that are detrimental to the overall efficiency (including energy efficiency) of the generation, transmission, distribution and supply of electricity or those that might hamper participation of demand response, in balancing markets and ancillary services procurement. Network operators shall be incentivised to improve efficiency in infrastructure design and operation, and, within the framework of the Electricity Market Regulations, that tariffs allow suppliers to improve consumer participation in system efficiency, including demand response depending on national circumstances.

(5) Transmission system operators and distribution system operators shall comply with the requirements set out in the Twelfth Schedule. The transmission system operator and the distribution system operator shall facilitate the connection to the grid system of electricity produced from high-efficiency cogeneration from small scale and micro cogeneration units. The Regulator shall, where appropriate, take steps to encourage network operators to adopt a simple notification "install and inform" process for the installation of micro cogeneration units to simplify and shorten authorisation procedures for individual citizens and installers.

(6) Subject to the requirements relating to the maintenance of the reliability and safety of the grid, where this is technically and economically feasible with the mode of operation of the high-efficiency cogeneration installation, high-efficiency cogeneration operators shall offer balancing services and other operational services at the level of transmission system operator or distribution system operator. The transmission system operator and the distribution system operator shall ensure that such services are part of a services bidding process which is transparent, non-discriminatory and open to scrutiny.

Where appropriate, the transmission system operator and the distribution operator shall encourage high-efficiency cogeneration to be sited close to areas of demand by reducing the connection and use-of-system charges.

(7) Producers of electricity from high-efficiency cogeneration wishing to be connected to the grid may issue a call for tender for the connection work.

(8) The Regulator shall encourage demand side resources, such as demand response, to participate alongside supply in wholesale and retail markets. Subject to technical constraints inherent in managing networks, the transmission system operator and the distribution system operator, in meeting requirements for balancing and ancillary services, shall treat demand response providers, including aggregators, in a non-discriminatory manner, on the basis of their technical capabilities.

(9) Subject to technical constraints inherent in managing networks, the transmission system operator and the distribution system operator shall, subject to the approval of the Regulator, promote demand response’s access to and participation in balancing, reserve and other system services markets, and the transmission and distribution system operator shall in close cooperation with demand service providers and consumers, define the technical modalities for participation in those markets on the basis of the technical requirements of those markets and the capabilities of demand response. Such specifications shall include the participation of aggregators.

(10) When reporting under Directive 2010/75/EU, and without prejudice to Article 9(2) of that Directive, the authority responsible for reporting under Directive 2010/75/EU shall consider including information on energy efficiency levels of installations undertaking the combustion of fuels with total rated thermal input of 50 MW or more in the light of the relevant best available techniques developed in accordance with Directive 2010/75/EU and Directive 2008/1/EC.

The authority responsible for reporting under Directive 2010/ 75/EU may encourage operators of installations referred to in this sub-regulation undertaking the combustion of fuels with total rated thermal input of 50 MW or more to improve their annual average net operational rates.