B 524
L.N. 66 of 2021
REGULATOR FOR ENERGY AND WATER SERVICES ACT
(CAP. 545)
BUILDING REGULATION ACT
(CAP. 513)
Energy Efficiency Regulations, 2021
IN EXERCISE of the powers conferred by article 37(1) of the
Regulator for Energy and Water Services Act and article 6(1) of the
Building Regulation Act, the Minister for Energy, Enterprise and
Sustainable Development and the Minister for the Environment,
Climate Change and Planning, after consultation with the Building
Regulation Board and the Regulator for Energy and Water Services,
have made the following regulations:-
Citation and 
scope.1.(1) The title of these regulations is the Energy Efficiency
Regulations, 2021.
(2) These regulations transpose Directive 2012/27/EU of the
European Parliament and of the Council of the 25th October 2012 on
energy efficiency, amending Directives 2009/125/EC and 2010/30/EU
and repealing Directives 2004/8/EC and 2006/32/EC, as amended by
Directive (EU) 2018/2002 of the European Parliament and of the
Council of the 11th December amending Directive 2012/27/EU and by
Commission Delegated Regulation (EU) 2019/826 of the 4th March
2019.
(3) These regulations establish a framework as part of the
common framework of measures for the promotion of energy
efficiency within the Union in order to ensure the achievement of the
Union’s 2020 headline targets on energy efficiency of 20% and its
headline targets on energy efficiency of at least 32.5% for 2030, and to
pave the way for further energy efficiency improvements beyond that
date. These regulations also lay down rules designed to remove
barriers in the energy market and overcome market failures that
impede efficiency in the supply and use of energy, and provide for the
establishment of indicative national energy efficiency targets for 2020
and for 2030, and contribute to the implementation of the energy
efficiency first principle
Interpretation. 2.(1) Unless stated otherwise in these regulations, the
definitions in the Act shall apply.
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(2)  In these regulations, unless the context otherwise requires:
Cap. 545. "Act" means the Regulator for Energy and Water Services Act;
"aggregator" means a demand service provider that combines
multiple short-duration consumer loads to sell or auction in organised
energy markets;
S.L. 513. 01."building element" shall have the same meaning as assigned to it
under the Energy Performance of Buildings Regulations;
Cap. 513."Building Regulation Board" means the Board established under
article 3 of the Building Regulation Act;
S.L. 513. 01."building unit " shall have the same meaning as assigned to it
under the Energy Performance of Buildings Regulations; 
"cogeneration" means the simultaneous generation in one process
of thermal energy and electrical or mechanical energy;
"cogeneration unit" means a unit that can operate in cogeneration
mode;
"Commission" means the European Commission established by
the Treaty on the Functioning of the European Union as amended by
the Lisbon Treaty, 2009;
S.L. 601. 03."contracting authorities" shall have the same meaning as
assigned to it under the Public Procurement Regulations;
"Council Decision 2006/1005/EC" means Council Decision of 18
December 2006 concerning conclusion of the Agreement between the
Government of the United States of America and the European
Community on the coordination of energy-efficiency labelling
programmes for office equipment;
"Decision 2008/952/EC" means Commission Decision of the
19th November 2008 establishing detailed guidelines for the
implementation and application of Annex II to Directive 2004/8/EC of
the European Parliament and of the Council;
S.L. 545. 13.
S.L. 545. 12."distribution system operator" shall have the same meaning as
under the Electricity Market Regulations, and the Natural Gas Market
Regulations, respectively;
S.L. 513. 01."district heating or district cooling” shall have the same meaning
as under the Energy Performance of Buildings Regulations;
"economically justifiable demand" means demand that does not
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exceed the needs for heating or cooling and which would otherwise be
satisfied at market conditions by energy generation processes other
than cogeneration;
"efficient district heating and cooling" means a district heating or
cooling system using at least fifty per cent (50%) renewable energy,
fifty per cent (50%) waste heat, seventy-five per cent (75%)
cogenerated heat or fifty per cent (50%) of a combination of such
energy and heat;
"efficient heating and cooling" means a heating and cooling
option that compared to a baseline scenario reflecting a business as
usual situation measurably reduces the input of primary energy needed
to supply one unit of delivered energy within a relevant system
boundary in a cost-effective way, as assessed in the cost-benefit
analysis referred to in these regulations, taking into account the energy
required for extraction, conversion, transport and distribution;
"efficient individual heating and cooling" means an individual
heating and cooling supply option that compared to efficient district
heating and cooling measurably reduces the input of non-renewable
primary energy needed to supply one unit of delivered energy within a
relevant system boundary or requires the same input of non-renewable
primary energy but at a lower cost, taking into account the energy
required for extraction, conversion, transport and distribution;
"electricity from cogeneration" means electricity generated in a
process linked to the production of useful heat and calculated in
accordance with the methodology laid down in the First Schedule;
"energy" means all forms of energy products, combustible fuels,
heat, renewable energy, electricity, or any other form of energy, as
defined in Regulation (EC) No 1099/2008 of the European Parliament
and of the Council of 22 October 2008 on energy statistics;
"energy audit" means a systematic procedure to obtain adequate
knowledge of the existing energy consumption profile of a building or
group of buildings, an industrial or commercial operation or
installation or a private or public service, to identify and quantify cost-
effective energy savings opportunities, and report the findings;
"energy distributor" means a natural or legal person, including a
distribution system operator, responsible for transporting energy with a
view to its delivery to final customers or to distribution stations that
sell energy to final customers;
"energy efficiency" means a ratio between an output of
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performance, service, goods or energy, and an input of energy;
"energy efficiency improvement" means an increase in energy
efficiency as a result of technological, behavioural and, or economic
changes;
"energy management system" means a set of interrelated or
interacting elements of a plan which sets an energy efficiency
objective and a strategy to achieve that objective;
"energy performance contracting" means a contractual
arrangement between the beneficiary and the provider of an energy
efficiency improvement measure, verified and monitored during the
whole term of the contract, where investments (work, supply or
service) in that measure are paid for in relation to a contractually
agreed level of energy efficiency improvement or other agreed energy
performance criterion, such as financial savings;
"energy savings" means an amount of saved energy determined
by measuring and, or estimating consumption before and after
implementation of one or more energy efficiency improvement
measures, whilst ensuring normalisation for external conditions that
affect energy consumption;
"energy service" means the physical benefit, utility or good
derived from a combination of energy with energy efficient technology
or with action, which may include the operations, maintenance and
control necessary to deliver the service, which is delivered on the basis
of a contract and in normal circumstances has proven to result in
verifiable and measurable or estimable energy efficiency improvement
or primary energy savings;
"energy service provider" means a natural or legal person who
delivers energy services or other energy efficiency improvement
measures in a final customer's facility or premises;
"entrusted party" means a legal entity with delegated power from
Government or another public body to develop, manage or operate a
financing scheme on behalf of Government or other public body;
"European standard" means a standard adopted by the European
Committee for Standardisation, the European Committee for Electro-
technical Standardisation or the European Telecommunications
Standards Institute and made available for public use;
"European Union" or "Union" means the European Union as
referred to in the Treaty;
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"final customer" means a natural or legal person who purchases
energy based on a direct, individual contract with an energy supplier;
"final user" for the purposes of regulation 16 and Part II of the
Seventh Schedule, means an occupant of an individual building or an
individual unit of a multi-apartment or multi-purpose building where
such unit is supplied with heating, cooling or domestic hot water from
a central source and where such occupant has no direct or individual
contract with the energy supplier, as well as any final customer
purchasing heating, cooling or domestic hot water for their own end
use;
"final energy consumption" means all energy supplied to
industry, transport, households, services and agriculture:
Provided that, it shall exclude deliveries to the energy
transformation sector and the energy industries themselves;
"Government" means the Government of Malta and includes all
administrative departments of Government whose competence extends
over the whole territory of Malta, but shall not include local councils;
"high-efficiency cogeneration" means cogeneration meeting the
criteria laid down in the Second Schedule;
"implementing public authority" means a body governed by
public law which is responsible for the carrying out or monitoring of
energy or carbon taxation, financial schemes and instruments, fiscal
incentives, standards and norms, energy labelling schemes, training or
education;
"individual action" means an action that leads to verifiable, and
measurable or estimable, energy efficiency improvements and is
undertaken as a result of a policy measure;
"International standard" means a standard adopted by the
International Standardisation Organisation and made available to the
public;
"Malta" has the same meaning as is assigned to it by article 124
of the Constitution of Malta;
"Member State" means a member state of the European Union;
"micro-cogeneration unit" means a cogeneration unit with a
maximum capacity below 50 kWe;
"Minister" means the Minister responsible for the Regulator for
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Energy and Water Services:
Provided that the Minister may designate any such body to
carry out any such function as is attributed to the Minister under these
regulations:
Provided further that such designation shall be made public
by means of a notice published in the Gazette;
"National Energy Efficiency Action Plan" or "the Plan" means
the action plan which is intended to achieve the national energy
efficiency targets required by sub-regulation (1) of regulation 3 and
towards the implementation of these regulations;
"obligated party" means the energy distributor or retail energy
sales company that is bound by the national energy efficiency
obligation schemes referred to in regulation 8;
"overall efficiency" means the annual sum of electricity and
mechanical energy production and useful heat output divided by the
fuel input used for heat produced in a cogeneration process and gross
electricity and mechanical energy production;
"participating party" means an enterprise or public body that has
committed itself to reach certain objectives under a voluntary
agreement, or is covered by a national regulatory policy instrument;
"plot ratio" means the ratio between the land area and the
building floor area in a given territory;
"policy measure" means a regulatory, financial, fiscal, voluntary
or information provision instrument that has been formally established
and implemented to create a supportive framework, requirement or
incentive for market actors to provide and purchase energy services
and to undertake other energy efficiency improvement measures;
"power to heat ratio" means the ratio between electricity from
cogeneration and useful heat when operating in full cogeneration mode
using operational data of the specific unit;
"primary energy consumption" means gross inland consumption,
excluding non-energy uses;
S.L. 601. 03."public bodies" means "contracting authorities" as defined in the
Public Procurement Regulations;
"Regulation (EU) No 510/2011" means Regulation (EU) No 510/
2011 of the European Parliament and of the Council of the 11th May
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2011 setting emission performance standards for new light commercial
vehicles as part of the Union’s integrated approach to reduce CO2
emissions from light-duty vehicles;
"Regulation (EC) No 443/2009" means Regulation (EC) No 443/
2009 of the European Parliament and of the Council of the 23 April
2009 setting emission performance standards for new passenger cars
as part of the Community’s integrated approach to reduce CO2
emissions from light-duty vehicles;
"Regulation 714/2009" means Regulation (EC) No 714/2009 of
the European Parliament and of the Council of the 13 July 2009 on
conditions for access to the network for cross-border exchanges in
electricity and repealing Regulation (EC) No 1228/2003;
"Regulation (EC) No 1222/2009" means Regulation (EC) No
1222/2009 of the European Parliament and of the Council of the 25
November 2009 on the labelling of tyres with respect to fuel efficiency
and other essential parameters;
"Regulation (EU) 2018/1999" means Regulation (EU) 2018/1999
of the European Parliament and of the Council of the 11 December
2018 on the Governance of the Energy Union and Climate Action,
amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of
the European Parliament and of the Council, Directives 94/22/EC, 98/
70/EC. 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the
European Parliament and of the Council, Council Directives 2009/119/
EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of
the European Parliament and of the Council;
"Regulator" means the Regulator for Energy and Water Services
established by the Act;
"retail energy sales company" means a natural or legal person
who sells energy to final customers;
"small and medium-sized enterprises" means enterprises as
defined in Title I of the Annex to Commission Recommendation 2003/
361 of the 6th May 2003 concerning the definition of micro, small and
medium-sized enterprises. The category of micro, small and medium-
sized enterprises (SMEs) is made up of enterprises which employ
fewer than two hundred and fifty (250) persons and which have an
annual turnover not exceeding fifty million euro (€50, 000, 000), and,
or an annual balance sheet total not exceeding forty-three million euro
(€43, 000, 000);
"small scale cogeneration unit" means a cogeneration unit with
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installed capacity below 1MWe;
"smart metering system" means an electronic system that can
measure energy consumption, adding more information than a
conventional meter, and can transmit and receive data using a form of
electronic communication;
"substantial refurbishment" means a refurbishment whose cost
exceeds 50% of the investment cost for a new comparable unit;
"total useful floor area" means the floor area of a building or part
of a building, where energy is used to condition the indoor climate;
"transmission system operator" means "transmission system
operator" as defined in Directive 2009/72/EC and Directive 2009/73/
EC respectively;
Cap. 460. "Treaty" shall have the same meaning as in the European Union
Act;
"useful heat" means heat produced in a cogeneration process to
satisfy economically justifiable demand for heating or cooling.
Minister to set 
national energy 
efficiency 
target.3.(1) The Minister shall set an indicative national energy
efficiency target for 2020, based on either primary or final energy
consumption, primary or final energy savings, or energy intensity. In
notifying these targets to the Commission, the Minister shall also
express them in terms of an absolute level of primary energy
consumption and final energy consumption in 2020 and shall explain
how, and on the basis of which data, this has been calculated. When
setting these targets, the Minister shall take into account:
(a) that the Union’s 2020 energy consumption has to be
no more than 1474 Mtoe of primary energy or no more than 1078
Mtoe of final energy;
(b) the measures provided for in these regulations;
S.L. 545. 21.(c) the measures adopted to reach the national energy
saving targets adopted pursuant to sub-regulation (1) of
regulation 4 of the Energy End-use Efficiency and Energy
Services Regulations; and
(d) other measures to promote energy efficiency within
Member States and at Union level.
(2) When setting the national energy efficiency target, the
Minister may also take into account national circumstances affecting
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primary energy consumption, such as remaining cost-effective energy-
saving potential, GDP evolution and forecast, changes of energy
imports and exports, development of all sources of renewable energies,
nuclear energy, carbon capture and storage (CCS), and early action.
(3) The Minister shall set an indicative energy efficiency
contribution towards the Union’s 2030 targets described in sub-
regulation (3) of regulation 1, in accordance with Articles 4 and 6 of
Regulation (EU) 2018/1999. When setting this contribution, the
Minister shall take into account that the Union's 2030 energy
consumption has to be no more than 1,273 Mtoe of primary energy
and, or no more than 956 Mtoe of final energy.
(4) The contribution set according to sub-regulation (3) shall
be notified by the Minister to the Commission as part of Malta’s
integrated national energy and climate plan as referred to in, and in
accordance with, Articles 3 and 7 to 12 of Regulation (EU) 2018/1999.
Long term 
strategy to be 
set.
S.L. 503. 01.4.(1) A long-term strategy to support the renovation of
national stock of residential and commercial buildings, both public and
private shall be established in line with the provisions of regulation 8A
of the Energy Performance of Buildings Regulations. 
(2) A first version of the long-term strategy for mobilising
investment in the renovation of the national stock of residential and
commercial buildings, both public and private, shall be published
by 30th April 2014. An updated version of the first version of this
strategy shall be published by the Building Regulation Board every
three (3) years, which are to be reckoned as from the date of the
publication of such first version. The updated versions are also to
be submitted by the Building Regulation Board to the Minister for
inclusion in Malta’s integrated national energy and climate plans
required by Regulation (EU) 2018/1999 .
Requirements as 
to Government 
buildings, etc.
S.L. 513. 01.5.(1) (a) Without prejudice to regulation 8 of the Energy
Performance of Buildings Regulations, the Building Regulation Board
shall take cost-effective measures, including deep renovations and
measures for behavioural change of occupants, to achieve by 2020 an
amount of energy savings in eligible buildings owned and occupied by
Government which is at least equivalent to that required by paragraph
1 of Article 5 of Directive 2012/27/EU, which amount shall be
reported to the Minister on an annual basis.
(b) The Building Regulation Board shall estimate the energy
savings referred to in paragraphs 1 to 4 of Article 5 of Directive 2012/
27/EU by using appropriate standard values for the energy
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consumption of reference central Government buildings before and
after renovation and according to estimates of the surface of their
stock. The categories of reference central Government buildings shall
be representative of the stock of such buildings.
(c) The Minister shall notify to the Commission the measures
that are planned to be adopted and showing how they would achieve an
equivalent improvement of the energy performance of the buildings
within the Government estate.
(2) For the purposes of establishing equivalence of the savings
required to be achieved in terms of sub-regulation (1) with the energy
savings referred to in paragraphs 1 to 4 of Article 5 of Directive 2012/
27/EU, the Building Regulation Board in collaboration with the Lands
Authority hall establish and make publicly available an inventory of
heated and, or cooled central government buildings with a total useful
floor area over 250 m2, excluding buildings exempted on the basis of
paragraph 2 of Article 5 of Directive 2012/27/EU, containing the
following data:
(a) the floor area in m2; and
(b) the energy performance of each building or relevant
energy data.
(3) The Building Regulation Board shall encourage public
bodies, including at regional and local level, and social-housing bodies
governed by public law, with due regard for their respective
competences and administrative set-up, to:
(a) adopt an energy efficiency plan, free-standing or as
part of a broader climate or environmental plan, containing
specific energy saving and efficiency objectives and actions,
with a view to following the exemplary role of Government
buildings laid down in sub-regulations (1) and (2);
(b) put in place an energy management system,
including energy audits, as part of the implementation of their
plan;
(c) use, where appropriate, energy service companies,
and energy performance contracting to finance renovations and
implement plans to maintain or improve energy efficiency in the
long term.
Purchases by 
contracting 
authorities to be 
cost effective.6.(1) Contracting authorities shall only purchase products,
services and buildings with high-energy efficiency performance,
insofar as this is consistent with cost-effectiveness, economical
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feasibility, wider sustainability, technical suitability, as well as
sufficient competition, as referred to in the Third Schedule. The
aforementioned obligation shall apply to contracts for the purchase of
products, services and buildings by public bodies in so far as these
contracts have a value equal to or greater than the thresholds laid down
in Article 7 of Directive 2004/18/EC as amended:
S.L. 601. 07.Provided that such obligation shall apply to the contracts of
the armed forces, only to the extent that its application does not cause
any conflict with the nature and primary aim of the activities of the
armed forces and with the exception of military equipment as defined
in the Public Procurement of Contracting Authorities or Entities in the
fields of Defence and Security Regulations.
(2) Public bodies shall be encouraged by the Minister,
including at local council level, with due regard for their respective
competences and administrative set-up, to follow the exemplary role
of Government departments to purchase only products, services and
buildings with high-energy efficiency performance. Public bodies shall
also be encouraged when tendering service contracts with significant
energy content, to assess the possibility of concluding long term
energy performance contracts that provide long-term energy savings.
(3) Without prejudice to sub-regulation (1), when purchasing a
product package covered as a whole by a delegated act adopted under
Directive 2010/30 EU, the aggregate energy efficiency shall take
priority over the energy efficiency of individual products within that
package, by purchasing the product package that complies with the
criterion of belonging to the highest energy efficiency class.
Energy savings 
obligation.7.(1) The Minister shall ensure that the achieved
cumulative end-use energy savings shall be at least equivalent to :
(a) new savings each year from 1st January 2014 to 31st
December 2020 of one point five per cent (1.5%) of annual
energy sales to final customers by volume, averaged over the
most recent three (3) -year period prior to 1st January 2013. Sales
of energy, by volume, used in transport may be excluded, in
whole or in part, from this calculation; and
(b) new savings each year from 1st January 2021 to 31st
December 2030 equivalent to zero point two four per cent
(0.24%) of annual final energy consumption, averaged over the
most recent three (3)-year period prior to the 1st January 2019 .
(2) Energy savings that stem from policy measures, whether
introduced by 31st December 2020 or after that date, may be counted
provided that the said measures result in new individual actions that
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are carried out after the 31st December 2020.
(3) New annual savings in accordance with paragraph (b) of
sub-regulation (1) shall continue to be achieved for ten (10) year
periods after 2030, unless reviews by the Commission by 2027 and
every ten (10) years thereafter conclude that this is not necessary to
achieve the Union’s long-term energy and climate targets for 2050. 
(4) The Minister shall decide how the calculated quantity of
new savings shall be phased over the periods referred to in paragraphs
(a) and (b) of sub-regulation (1), provided that the required total
cumulative end-use energy savings have been achieved by the end of
each obligation period.
(5) Subject to, that at least the cumulative end-use energy
savings obligation referred to in paragraph (b) of sub-regulation (1) is
achieved, the required amount of energy savings may be calculated by
one or more of the following means:
(a) applying an annual savings rate on energy sales to
final customers or on final energy consumption, averaged over
the most recent three-year period prior to 1st January 2019;
(b) excluding, in whole or in part, energy used in
transport from the calculation baseline;
(c) making use of any of the options set out in sub-
regulation (7).
(6) Where the possibilities provided for in sub-regulation (5) are
made use of, there shall be established:
(a) the annual savings rate that will be applied in the
calculation of the cumulative end-use energy savings, which
shall ensure that the final amount of net energy savings is no
lower than that required under paragraph (b) of sub-regulation
(1); and
(b) the calculation baseline, which may exclude, in whole
or in part, energy used in transport. 
(7) The Minister may, subject to sub-regulation (8):
(a) carry out the calculation required by paragraph (a) of
sub-regulation (1) using values of one per cent (1%) in 2014 and
2015, one point two five per cent (1.25%) in 2016 and 2017, and
one point five per cent (1.5%) in 2018, 2019 and 2020;
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S.L. 423. 50.(b) exclude from the calculation all or part of the sales of
energy used, by volume, with respect to the obligation period
referred to in paragraph (a) of sub-regulation (1), or final energy
consumed, with respect to the obligation period referred to in
paragraph (b) of that sub-regulation, by industrial activities listed
in Schedule 1 to the European Union Greenhouse Gas Emissions
Trading System for Stationary Installations Regulations;
(c) count towards the amount of required energy savings,
energy savings achieved in the energy transformation,
distribution and transmission sectors, including efficient district
heating and cooling infrastructure, as a result of implementing
the requirements set out in sub-regulations (5) and (6)(b) of
regulation 21 and sub-regulations (1) to (6) and (10) of
regulation 22. The Commission shall be informed about intended
policy measures under this paragraph for the period from 1st
January 2021 to 31st December 2030 as part of the integrated
national energy and climate plan. The impact of these measures
shall be calculated in accordance with the Fifth Schedule and
included in said plan;
 (d) count towards the amount of required energy
savings, energy savings resulting from individual actions newly
implemented since 31st December 2008 that continue to have an
impact in 2020 with respect to the obligation period referred to in
paragraph (a) of sub-regulation (1), and beyond 2020 with
respect to the period referred to in paragraph (b) of sub-
regulation (1), and which can be measured and verified; 
(e) count towards the amount of required energy savings,
energy savings that stem from policy measures, provided that it
can be demonstrated that those measures result in individual
actions carried out from 1st January 2018 to 31st December 2020
which deliver savings after 31st December 2020;
(f) exclude from the calculation of the amount of
required savings, thirty per cent (30%) of the verifiable amount
of energy generated on or in buildings for own use as a result of
policy measures promoting new installations of renewable
energy technologies;
(g) count towards the amount of required energy savings,
energy savings that exceed the energy savings required for the
obligations period from 1st January 2014 to 31st December 2020,
provided that these savings result from individual actions carried
out under policy measures referred to in regulations 8 and 9,
notified in the National Energy Efficiency Action Plan and
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reported in the progress report.
(8) The application of the options chosen under sub-regulation
(7) shall be separate for the periods referred to in paragraphs (a) and
(b) of sub-regulation (1) and the effect thereof shall be separately
calculated as follows:
(a) for the calculation of the amount of energy savings
required for the obligation period referred to in paragraph (a) of
sub-regulation (1), paragraphs (a) to (d) of sub-regulation (7)
may be used. All the options chosen under sub-regulation (7)
taken together shall amount to no more than twenty-five per cent
(25%) of the amount of energy savings referred to in paragraph
(a) of sub-regulation (1);
(b) for the calculation of the amount of energy savings
required for the obligation period referred to in paragraph (b) of
sub-regulation (1), paragraphs (b) to (g) of sub-regulation (7)
may be used, provided individual actions referred to in paragraph
(d) of sub-regulation (7) continue to have a verifiable and
measurable impact after 31st December 2020. All the options
chosen under sub-regulation (7) taken together shall not lead to a
reduction of more than thirty-five per cent (35%) of the amount
of energy savings calculated in accordance with sub-regulations
(5) and (6):
Provided that regardless of whether energy used in
transport is excluded, in whole or in part, from the calculation
baseline, or whether any of the options listed in sub-regulation (7) are
made use of, the Minister shall ensure that the calculated net amount of
new savings to be achieved in the final energy consumption during the
obligation period from 1st January 2021 to 31st December 2030 shall
not be lower than the amount resulting from the application of the
annual savings rate referred to in paragraph (b) of sub-regulation (1). 
(9) The calculation of the amount of energy savings to be
achieved over the period from 1st January 2021 to 31st December 2030
referred to in paragraph (b) of sub-regulation (1) shall be described in
the integrated national energy and climate plan, in accordance with
Annex III to Regulation (EU) 2018/1999, which plan shall include, if
relevant, an explanation of how the annual savings rate and the
calculation baseline were established, and how and to what extent the
options referred to in sub-regulation (7) were applied. 
(10) Energy savings achieved after 31st December 2020 shall
not count towards the amount of required energy savings for the period
from 1st January 2014 to 31st December 2020.
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(11) Where obligated parties are allowed by the Minister to use
the option referred to in paragraph (b) of sub-regulation (6) of
regulation 8, for the purpose of paragraph (a) of sub-regulation (1) the
energy savings obtained in any given year after 2010 and before the
obligation period referred to in paragraph (a) of sub-regulation (1) may
be counted as if those energy savings had instead been obtained after
31st December 2013 and before 1st January 2021, provided that all of
the following circumstances apply:
(a) the energy efficiency obligation scheme was in force
at any point between the 31st December 2009 and 31st December
2014 and was included in the first National Energy Efficiency
Action Plan submitted;
(b) the savings were generated under the obligation
scheme;
(c) the savings are calculated in accordance with the
Fifth Schedule;
(d) the years for which the savings are counted as having
been obtained have been reported in the National Efficiency
Action Plan.
(12) Savings resulting from policy measures referred to in
regulations 8 and 9 and sub-regulation (4) of regulation 27 shall be
calculated in accordance with the Fifth Schedule.
(13) The energy savings as set out in sub-regulation (1) shall be
achieved either through the establishing of an energy efficiency
obligation scheme as laid down in regulation 8, or through the
adoption of alternative policy measures, as laid down in regulation 9,
provided that an energy efficiency obligation scheme may be
combined with alternative policy measures.
(14) The need to alleviate energy poverty shall be taken into
account in the design of policy measures aimed at the fulfilling of
energy savings obligations laid down in sub-regulation (1). A share of
energy efficiency measures under any national energy efficiency
obligation scheme, alternative policy measures or programmes or
measures financed under the Energy Efficiency National Fund is
required, to the extent appropriate, to be implemented as a priority
among vulnerable households, including those affected by energy
poverty and, where appropriate, in social housing.
(15) Information about the outcome of measures to alleviate
energy poverty as laid down in these regulations shall be included in
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the integrated national energy and climate progress reports in
accordance with Regulation (EU) 2018/2000. 
(16) The Minister shall demonstrate that where there is an
overlap in the impact of policy measures or individual actions, there is
no double counting of energy savings. 
Energy 
efficiency 
obligation 
scheme.8.(1) Where the Minister decides that an amount of savings
required under sub-regulation (1) of regulation 7, shall be achieved by
way of an energy efficiency obligation scheme, the Minister shall
ensure that a framework is in place such that obligated parties referred
to in sub-regulation (2), without prejudice to sub-regulations (7) and
(8) of regulation 7, achieve their cumulative end-use energy savings
requirement as set out in sub-regulation (1) of regulation 7: 
 Provided that where applicable, the Minister may decide
that obligated parties fulfil those savings, in whole or in part, as a
contribution to the Energy Efficiency National Fund in accordance
with sub-regulation (4) of regulation 27. 
(2) The Minister shall designate, on the basis of objective
and non-discriminatory criteria, obligated parties among energy
distributors, retail energy sales companies and transport fuel
distributors or transport fuel retailers operating in Malta. The
amount of energy savings needed to fulfil the obligation shall be
achieved by the obligated parties among final customers, designated
by the Minister, independently of the calculation made pursuant to
sub-regulation(1) of regulation 7 or, if the Minister so decides, through
certified savings stemming from other parties as described in
paragraph (a) of sub-regulation (5).  
The Regulator shall put in place new authorisation conditions, or
additional authorisations conditions to existing authorisations, issued
under the Act or subsidiary legislation issued thereunder, requiring an
authorised provider to comply with any energy efficiency obligation
schemes established by the Minister, when such authorised providers
are designated as obligated parties. 
(3) Where retail energy sales companies are designated as
obligated parties under sub-regulation (2), the Regulator shall ensure
that, in fulfilling their obligations, retail energy sales companies do not
create any barriers that impede consumers from switching from one
supplier to another. 
(4) The Minister shall express the amount of energy savings
required of each obligated party in terms of either final or primary
energy consumption. The method chosen to express the amount of
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energy savings required shall also be used to calculate the savings
claimed by the obligated parties. The conversion factors set out in the
Fourth Schedule shall apply. 
(5) Within an energy efficiency obligation scheme, the
Minister may do one or both of the following: 
(a) permit obligated parties to count towards their
obligation certified energy savings achieved by energy
service providers or other third parties, including when
obligated parties promote measures through other state-
approved bodies or through public authorities that may involve
formal partnerships and may be in combination with other
sources of finance, provided that where this is permitted, it shall
be ensured that the certification of energy savings follows an
approval process that is clear, transparent, and open to all market
participants, and that aims to minimise the costs of certification; 
(b) allow obligated parties to count savings obtained in a
given year as if they had instead been obtained in any of the four
previous or three following years, provided that this is not
beyond the end of the obligation periods set out in sub-regulation
(1) of regulation 7. 
(6) The Regulator shall have the right to obtain audited data
from the obligated parties within a reasonable time in regard to such
certified savings. The Regulator may share the audited data with the
Minister.
(7) The Regulator shall put in place measurement, control
and verification systems under which documented verification is
carried out on at least a statistically significant proportion and
representative sample of the energy efficiency improvement measures
put in place by the obligated parties. The measurement, control and
verification shall be carried out independently of the obligated parties.
The Regulator may share any information resulting from such
measurement, control and verification systems with the Minister. 
(8) The Regulator shall, on an annual basis, publish the energy
savings achieved by each obligated party, or each sub-category of
obligated party, and in total under the scheme. 
(9) The Minister shall assess and if appropriate, take measures
to minimise the impact of the direct and indirect costs of energy
efficiency obligation schemes on the competitiveness of energy-
intensive industries exposed to international competition.
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 Alternative 
policy 
measures.9. (1) Where the Minister opts to fulfil the obligations to
achieve the savings required under sub-regulation (1) of regulation 7
by way of alternative policy measures, the Minister shall ensure,
without prejudice to sub-regulations (7) and (8) of regulation 7, that
the energy savings required under sub-regulation (1) of regulation 7
are achieved among final customers.
(2) For all measures other than those relating to taxation, the
Minister shall put in place measurement, control and verification
systems under which documented verification is carried out on at least
a statistically significant proportion and representative sample of the
energy efficiency improvement measures put in place by the
participating or entrusted parties. The measurement, control and
verification shall be carried out independently of the participating or
entrusted parties. 
Availability of 
energy audits to 
final customers.10.(1) The Minister shall promote the availability to all final
customers of high quality energy audits which are cost-effective and
carried out in an independent manner by qualified and, or accredited
experts according to qualification criteria.
(2) The energy audits referred to in sub-regulation (1) may be
carried out by in-house experts or energy auditors:
Provided that the Minister shall have put in place a scheme
to assure and check their quality, including, if appropriate, an annual
random selection of at least a statistically significant percentage of all
the energy audits they carry out.
(3) For the purpose of guaranteeing the high quality of the
energy audits and energy management systems, the Minister shall
establish transparent and non-discriminatory minimum criteria for
energy audits based on the principles set out in the Sixth Schedule.
(4) Energy audits shall not include clauses preventing the
findings of the audit from being transferred to any qualified and, or
accredited energy service provider, on condition that the customer
does not object. Notwithstanding the foregoing, the findings of the
audit shall promptly be submitted to the Minister upon being
demanded and in any case by not later than seven (7) days from such
demand being made.
(5) The Minister shall develop programmes to encourage small
and medium-sized enterprises to undergo energy audits, and the
subsequent implementation of the recommendations from these audits.
The Minister shall also develop programmes to raise awareness among
households about the benefits of such audits through appropriate
advice services.
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(6) On the basis of transparent and non-discriminatory criteria
and without prejudice to Union State aid law, support schemes may be
set up for SMEs including, if they have concluded voluntary
agreements, to cover costs of an energy audit and of the
implementation of highly cost-effective recommendations from the
energy audits, if the proposed measures are implemented.
(7) The Minister shall also develop programmes to raise
awareness among households about the benefits of the audits referred
to in sub-regulation (6) through appropriate advice services. The
Minister shall encourage training programmes for the qualification of
energy auditors in order to facilitate sufficient availability of experts.
(8) The Minister shall bring to the attention of small and
medium-sized enterprises, including through their respective
representative intermediary organisations, concrete examples of how
energy management systems could help their business.
(9) Enterprises that are not SMEs shall commission an energy
audit carried out in an independent and cost-effective manner by
qualified and, or accredited experts or implemented and supervised by
independent authorities under national legislation by the 5th December
2015 and at least every four (4) years from the date of the previous
energy audit.
(10) Energy audits shall be considered as fulfilling the
requirements of sub-regulation (9) when they are carried out in an
independent manner, on the basis of minimum criteria based on the
principles set out in the Sixth Schedule, and implemented under
voluntary agreements concluded between organisations of
stakeholders and an appointed body and supervised by the Minister, or
other bodies to which the Minister has delegated the responsibility
concerned. Access of market participants offering energy services
shall be based on transparent and non-discriminatory criteria.
(11) Enterprises, which are not SMEs, implementing an energy
or environmental management system, certified by an independent
body according to the relevant European or International Standards,
shall be exempted from the requirements of sub-regulation (9):
Provided that the management system concerned includes
an energy audit on the basis of the minimum criteria based on the
principles set out in the Sixth Schedule.
(12) Energy audits may stand alone or be part of a broader
environmental audit. An assessment of the technical and economic
feasibility of connection to an existing or planned district heating or
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cooling network shall be part of the energy audit.
(13) Without prejudice to Union State aid law, incentive and
support schemes may be implemented for the implementation of
recommendations from energy audits and similar measures.
Metering for gas 
and electricity.11.(1) Final customers for electricity and natural gas shall
be provided by their suppliers with competitively priced individual
meters that accurately reflect the final customer’s actual energy
consumption and that provide information on the actual time of use:
Provided that this requirement shall apply in so far as it is
technically possible, financially reasonable and proportionate in
relation to the potential energy savings.
(2) When an existing meter is replaced, such a competitively
priced individual meter shall always be provided, unless this is
technically impossible or not cost-effective in relation to the estimated
potential savings in the long term.
S.L. 513. 01.(3) When a new connection is made in a new building or a
building undergoes major renovations, as set out in the Energy
Performance of Buildings Regulations, such competitively priced
individual meters shall always be provided.
S.L. 545. 13.
S.L. 545. 12.(4) Where, and to the extent that, intelligent metering systems
are implemented and smart meters for gas and, or electricity are rolled
out in accordance with the Electricity Market Regulations, and the
Natural Gas Market Regulations:
 (a)  metering systems shall provide to final customers
information on actual time of use. The objectives of energy
efficiency and benefits for final customers shall be fully taken
into account when establishing the minimum functionalities of
the meters and the obligations imposed on market participants;
(b) the security of the smart meters and data
communication, and the privacy of final customers, shall be
ensured in compliance with relevant Union data protection and
privacy legislation;
(c) in the case of electricity and on request of the final
customer, meter operators are required to ensure that the meter or
meters can account for electricity put into the grid from the final
customer’s premises;
(d) if final customers request it, metering data on their
electricity input and off-take shall be made available to them or
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to a third party acting on behalf of the final customer in an easily
understandable format that they can use to compare deals on a
like-for-like basis;
(e) appropriate advice and information shall be given to
customers at the time of installation of smart meters, notably
about their full potential with regard to meter reading
management and the monitoring of energy consumption.
Metering for 
heating, cooling 
and domestic 
hot water. 12.(1) Final customers for district heating, district cooling
and domestic hot water shall be provided by their suppliers with
competitively priced individual meters that accurately reflect the final
customer’s actual energy consumption.
 (2) Where heating, cooling or domestic hot water is supplied to
a building from a central source that serves multiple buildings, or from
a district heating or district cooling system, a meter shall be installed at
the heat exchanger or point of delivery.
Sub-metering 
for heating, 
cooling and 
domestic hot 
water. 13.(1) In multi-apartment and multi-purpose buildings
with a central heating or central cooling source, or supplied from a
district heating or district cooling system, the supplier shall install
individual meters to measure the consumption of heating, cooling or
domestic hot water for each building unit, where technically feasible
and cost effective in terms of being proportionate in relation to the
potential energy savings:
Provided that where the supplier shows to the Building
Regulation Board’s satisfaction that the use of individual meters is not
technically feasible or where it is not cost-efficient to measure heat
consumption in each building unit, the supplier shall use individual
heat cost allocators to measure heat consumption at each radiator
unless it is shown by the supplier that the installation of heat cost
allocators would not be cost-efficient:
Provided further that in those cases, alternative cost-
efficient methods of heat consumption measurement may be
considered. 
 (2) The general criteria, methodologies and, or procedures to
determine technical non-feasibility and non-cost effectiveness shall be
clearly set out and published by the Building Regulation Board. 
 (3) Notwithstanding sub-regulation (1), individual meters shall
be provided by the supplier for domestic hot water in new multi-
apartment buildings and residential parts of new multi-purpose
buildings that are equipped with a central heating source for domestic
hot water or are supplied from district heating systems. 
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 (4) Where in the assessment of the Building Regulation Board,
multi-apartment or multi-purpose buildings supplied from district
heating or district cooling, or buildings with own common heating or
cooling become prevalent, the Regulator shall put in place transparent,
publicly available national rules on the allocation of the cost of
heating, cooling and domestic hot water consumption in such
buildings to ensure transparency and accuracy of accounting for
individual consumption:
Provided that when the Building Regulation Board
determines that multi-apartment or multi-purpose buildings supplied
from district heating or district cooling, or buildings with own
common heating or cooling have become prevalent, the Regulator
shall be officially informed of such a decision and the Building
Regulation Board shall provide to the Regulator all the necessary
information and data relevant to the reaching of such a decision. 
Remote reading 
requirement. 14.(1) For the purposes of regulations 12 and 13, meters and
heat cost allocators installed after 25th October 2020 shall be remotely
readable devices. The conditions of technical feasibility and cost
effectiveness set out in sub-regulations (1) and (2) of regulation 13
shall continue to apply. 
 (2) Meters and heat cost allocators which are not remotely
readable but which have already been installed, shall be rendered by
the supplier remotely readable or replaced with remotely readable
devices by 1st January 2027, provided that this shall not be required if
it is shown by the supplier that this is not cost-efficient. 
Billing 
information for 
gas and 
electricity.
S.L. 545. 13.
S.L. 545. 12.15.(1) Where final customers do not have smart meters
referred to in the Electricity Market Regulations and the Natural Gas
Market Regulations, by not later than the 31st December 2014, billing
information shall be accurate and based on actual consumption, in
accordance with item 1.1 of Part I of the Seventh Schedule, for
electricity and gas, where this is technically possible and economically
justified.
S.L. 545. 13.
S.L. 545. 12.(2) Meters installed in accordance with the Electricity Market
Regulations and the Natural Gas Market Regulations shall enable
accurate billing information based on actual consumption. Final
customers shall have the possibility of easy access to complementary
information on historical consumption allowing detailed self-checks.
Complementary information on historical consumption shall include:
(a) cumulative data for at least the three (3) previous
years or the period since the start of the supply contract if this is
shorter. The data shall correspond with the intervals for which
frequent billing information has been produced; and
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(b) detailed data according to the time of use for any day,
week, month and year. These data shall be made available to the
final customer via internet or the meter interface for the period of
at least twenty-four (24) previous months or the period since the
start of the supply contract if this is shorter.
(3) Independently of whether smart meters have been installed
or not, energy suppliers shall:
(a) to the extent that information on their energy billing
and historical consumption of final customers is available, on the
request of the final customer make such information available to
an energy service provider designated by the final customer;
(b) offer to final customers the option of electronic
billing information and bills. Customers shall receive on request
a clear and understandable explanation of how their bill was
derived, especially where bills are not based on actual
consumption;
(c) make available appropriate information with the bill
to provide final customers with a comprehensive account of
current energy costs, in accordance with Part I of the Seventh
Schedule;
(d) on request of the final customer, not consider the
information contained in these bills to constitute a request for
payment. Suppliers of energy sources shall offer flexible
arrangements for actual payments;
(e) provide to consumers on demand, information and
estimates for energy costs in a timely manner and in an easily
understandable format enabling consumers to compare deals on a
like-for-like basis.
Billing and 
consumption 
information for 
heating, cooling 
and domestic 
hot water.16.(1) Where meters or heat cost allocators are installed,
energy suppliers shall ensure that the billing and consumption
information is reliable, accurate and based on actual consumption or
heat cost allocator readings, in accordance with items 1 and 2 of Part II
of the Seventh Schedule for all final users, namely for natural or legal
persons purchasing heating, cooling or domestic hot water for their
own end-use, or natural or legal persons occupying an individual
building or a unit in a multi-apartment or multi-purpose building
supplied with heating, cooling or domestic hot water from a central
source who has no direct or individual contract with the energy
supplier:
Provided that, save in the case of sub-metered consumption
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based on heat cost allocators under regulation 13 such obligation may
be fulfilled by a system of regular self-reading by the final customer or
final user whereby they communicate readings from their meter. Only
where the final customer or final user has not provided a meter reading
for a given billing interval shall billing be based on estimated
consumption or a flat rate.
 (2) The supplier shall:
(a) ensure that, if information on the energy billing and
historical consumption or heat cost allocator readings of final
users is available, it be made available upon request by the final
user, to an energy service provider designated by the final user;
(b) ensure that final customers are offered the option of
electronic billing information and bills;
(c) ensure that clear and comprehensible information is
provided with the bill to all final users in accordance with item 3
of Part II of the Seventh Schedule;
(d) promote cyber security and ensure the privacy and
data protection of final users in accordance with applicable
Union law. 
 (3) The provision of information by the supplier, at the request
of the final customer, shall not be considered to constitute a request for
payment and in such cases the supplier shall offer flexible
arrangements for actual payment. 
Cost of access 
to metering and 
billing 
information for 
electricity and 
gas.17.Energy suppliers shall ensure that final customers receive
all their bills and billing information for energy consumption free of
charge and that final customers have access to their consumption data
in an appropriate way and free of charge.
Cost of access 
to metering and 
billing and 
consumption 
information for 
heating, cooling 
and domestic 
hot water.18.(1) Final users shall receive from their supplier all their
bills and billing information for energy consumption free of charge
and shall have access to their consumption data in an appropriate way
and free of charge. 
(2) Notwithstanding sub-regulation (1), the distribution of
costs of billing information for the individual consumption of heating
and cooling in multi-apartment and multi-purpose buildings pursuant
to regulation 13 shall be carried out on a non-profit basis. Costs
resulting from the assignment of this task to a third party, such as a
service provider or the local energy supplier, covering the measuring,
allocation and accounting for actual individual consumption in such
buildings, may be passed on to the final customers to the extent that
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such costs are reasonable.
(3) In order to ensure reasonable costs for sub-metering
services as referred to in sub-regulation (2), the Minister may stimulate
competition in that service sector through the introduction of
appropriate measures, which may include recommending or otherwise
promoting the use any of:
(a) tendering; 
(b) interoperable devices;
(c) systems facilitating switching between service
providers.
Minister may 
promote 
efficient use of 
energy.19.(1) The Minister shall take appropriate measures to
promote and facilitate an efficient use of energy by small energy
customers, including domestic customers. These measures may be part
of a national strategy.
(2) For the purposes of sub-regulation (1), these measures shall
include one or more of the elements listed below:
(a) a range of instruments and policies to promote
behavioural change which may include:
(i) fiscal incentives;
(ii) access to finance, grants or subsidies;
(iii) information provision;
(iv) exemplary projects;
(v) workplace activities;
(b) ways and means to engage consumers and consumer
organisations during the possible roll-out of smart meters
through communication of:
(i) cost-effective and easy-to-achieve changes in
energy use;
(ii) information on energy efficiency measures.
Administrative 
fine.20.The Regulator may impose an administrative fine not
exceeding ten thousand euro (€10,000) for each contravention and, or
six hundred euro (€600) for each day of non-compliance, from the date
of the decision given by the Regulator upon any person who infringes
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any provision of these regulations or who fails to comply with any
directive or decision given by the Regulator in ensuring compliance
with these regulations.
Comprehensive 
assessment of 
high-efficiency 
cogeneration, 
etc.21.(1) By the 31st of December 2015, the Minister shall
carry out a comprehensive assessment of the potential for the
application of high-efficiency cogeneration and efficient district
heating and cooling, containing the information set out in the Eighth
Schedule to these regulations. The Minister shall notify such
comprehensive assessment to the Commission by the 31st December
2015. If an equivalent assessment has already been carried out, the
Minister shall notify an equivalent assessment to the Commission.
(2) The comprehensive assessment shall take full account of
the analysis of the national potentials for high-efficiency cogeneration
carried out under Directive 2004/8/EC. The assessment shall be
updated and notified to the Commission every five (5) years, subject to
a request by the Commission at least one year before the due date.
(3) The Minister shall adopt policies which encourage that the
potential of using efficient heating and cooling systems, in particular
those using high efficiency cogeneration, is duly taken into account at
local and regional levels. Account shall be taken of the potential for
developing local and regional heat markets.
S.L. 549. 61.(4) For the purpose of the assessment referred to in sub-
regulation (1), the Minister shall carry out a cost-benefit analysis
covering the territory based on climate conditions, economic
feasibility and technical suitability in accordance with the Eighth
Schedule The cost-benefit analysis shall be capable of facilitating the
identification of the most resource and cost-efficient solutions to
meeting heating and cooling requirements. The cost-benefit analysis
may be part of an environmental assessment, under the Strategic
Environmental Assessment Regulations for the assessment.
(5) Where the assessments referred to in sub-regulation (1) and
the analysis mentioned in sub-regulation (4) identify a potential for the
application of high-efficiency cogeneration and, or efficient district
heating and cooling whose benefits exceed the costs, the Minister shall
take adequate measures for efficient district heating and cooling
infrastructure to be developed and, or to accommodate the
development of high-efficiency cogeneration and the use of heating
and cooling from waste heat and renewable energy sources in
accordance with sub-regulations (1), (6) and (10). Where the
assessment referred to in sub-regulation (1) and the analysis referred to
in sub-regulation (4) do not identify a potential whose benefits exceed
the costs, including the administrative costs of carrying out the cost-
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benefit analysis referred to in sub-regulation (6), installations shall be
exempted from the requirements laid down in those sub-regulations.
(6) A cost-benefit analysis in accordance with the Ninth
Schedule shall be carried out by the project promoter when, after the
5th June 2014:
(a) a new thermal electricity generation installation with
a total thermal input exceeding 20 MW is planned, to assess the
cost and benefits of providing for the operation of the installation
as high-efficiency cogeneration installation;
(b) an existing thermal electricity generation installation
with a total thermal input exceeding 20 MW is substantially
refurbished, to assess the cost and benefits of converting it to
high efficiency cogeneration;
(c) an industrial installation with a total thermal input
exceeding 20 MW generating waste heat at a useful temperature
level is planned or substantially refurbished, to assess the cost
and benefits of utilising the waste heat to satisfy economically
justified demand, including through cogeneration, and of the
connection of this installation to a district heating and cooling
network;
(d) a new district heating and cooling network is planned
or in an existing district heating or cooling network a new energy
production installation with a total thermal input exceeding 20
MW is planned or an existing such installation is to be
substantially refurbished, to assess the cost and benefits of
utilising the waste heat from nearby industrial installations.
S.L. 549. 68.(7) The fitting of equipment to capture carbon dioxide
produced by a combustion installation with a view to its being
geologically stored as provided for in the Geological Storage of
Carbon Dioxide Regulations shall not be considered as refurbishment
for the purpose of sub-regulation (6)(b), (c) and (d). The cost-benefit
analysis referred to in sub-regulation (6)(c) and (d) shall be carried out
in co-operation with the companies responsible for the operation of the
district heating and cooling networks.
(8) The following installations shall be exempt from sub-
regulation (6):
(a) those peak load and back-up electricity generating
installations which are planned to operate under one thousand
five hundred (1,500) operating hours per year as a rolling
average over a period of five (5) years, based on a verification
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procedure established by the Regulator ensuring that this
exemption criterion is met;
(b) nuclear power installations;
S.L. 549. 68.(c) installations that need to be located close to a
geological storage site approved under the Geological Storage of
Carbon Dioxide Regulations.
(9) The Minister may also lay down thresholds, expressed in
terms of the amount of available useful waste heat, the demand for
heat or the distances between industrial installations and district
heating networks, for exempting individual installations from the
provisions of sub-regulation (6)(c) and (d).
The Minister shall notify to the Commission exemptions adopted
under this sub-regulation by the 31st of December 2013. Any
subsequent changes to such exemptions thereafter shall also be
notified by the Minister to the Commission.
(10) Authorisation criteria as referred to in Article 7 of Directive
2009/72/EC, or equivalent permit criteria, shall: 
(a) take into account the outcome of the comprehensive
assessments referred to in sub-regulation (1);
(b) ensure that the requirements of sub-regulation (6) are
fulfilled; and
(c) take into account the outcome of cost-benefit analysis
referred to in sub-regulation (6).
(11) The Regulator may exempt individual installations from
being required, by the authorisation and permit criteria referred to in
sub-regulation (10), to implement options whose benefits exceed their
costs, if there are imperative reasons of law, ownership or finance for
so doing. In these cases the Minister shall submit a motivated
notification of his decision to the Commission within three (3) months
of the date of the taking of the Minister’s decision.
S.L. 549. 78.(12) Sub-regulations (6), (8), (10) and (11) shall apply to
installations covered by the Industrial Emissions (Large Combustion
Plants) Regulations without prejudice to the requirements of those
regulations.
(13) On the basis of the harmonised efficiency reference values
referred to in paragraph (f) of the Second Schedule, the Regulator shall
ensure that the origin of electricity produced from high-efficiency
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cogeneration can be guaranteed according to objective, transparent and
non-discriminatory criteria laid down by the Minister. The Regulator
shall ensure that this guarantee of origin complies with the
requirements and contains at least the information specified in the
Tenth Schedule.
The Regulator shall mutually recognise guarantees of origin from
other Member States, exclusively as proof of the information referred
to in this sub-regulation. Any refusal to recognise a guarantee of origin
as such proof, in particular for reasons relating to the prevention of
fraud, must be based on objective, transparent and non-discriminatory
criteria. The Minister shall notify the Commission of such refusal and
its justification.
(14) Any available support for cogeneration shall be subject to
the electricity produced originating from high-efficiency cogeneration
and the waste heat being effectively used to achieve primary energy
savings. Public support to cogeneration and district heating generation
and networks shall be subject to State aid rules, where applicable.
Duties of the 
Regulator.
S.L. 545. 13.
S.L. 545. 12.22.(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;
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(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.
S.L. 545. 13.(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
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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.
Qualification 
schemes to be 
made available.23.(1) Certification and, or accreditation schemes and, or
equivalent qualification schemes, including, where necessary, suitable
training programmes, shall be made available by the 1st January 2015
for providers of energy services, energy audits, energy managers and
installers of energy-related building elements where the national level
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of technical competence, objectivity and reliability is insufficient.
(2) The Minister shall ensure that the schemes referred to in
sub-regulation (1) provide transparency to consumers, are reliable and
contribute to national energy efficiency objectives.
(3) The Minister shall make publicly available the certification
and, or accreditation schemes or equivalent qualification schemes
referred to in sub-regulation (1). The Minister shall take appropriate
measures to make consumers aware of the availability of qualification
and, or certification schemes, in accordance with sub-regulation (1) of
regulation 25.
Information to 
be provided by 
relevant 
authorities.24.(1) The Building Regulation Board, the Minister and
entrusted parties shall provide information on available energy
efficiency mechanisms and financial and legal frameworks, which
information shall be transparent and widely disseminated to all
relevant market actors, such as consumers, builders, architects,
engineers, environmental and energy auditors and installers of building
elements and shall provide information to banks and other financial
institutions on possibilities of participating, including through the
creation of public and, or private partnerships, in the financing of
energy efficiency improvement measures.
(2) The Minister shall establish appropriate conditions for
market operators to provide adequate and targeted information and
advice to energy consumers on energy efficiency.
(3) The Minister, with the participation of stakeholders,
including local and regional authorities, shall promote suitable
information, awareness-raising and training initiatives to inform
citizens of the benefits and practicalities of taking energy efficiency
improvement measures.
Energy services 
market and 
access for 
SMEs.25.(1) The Minister shall promote the energy services
market and access for small and medium-sized enterprises to this
market by:
(a) disseminating clear and easily accessible information
on:
(i) available energy service contracts and clauses
that should be included in such contracts to guarantee
energy savings and final customers’ rights;
(ii) financial instruments, incentives, grants and
loans to support energy efficiency service projects;
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(b) encouraging the development of quality labels, inter
alia by trade associations;
(c) making publicly available and regularly updating a
list of available energy service providers who are qualified and,
or certified and their qualifications and, or certifications in
accordance with regulation 23, or provide an interface where
energy service providers can provide information;
(d) supporting the public sector in taking up energy
service offers, notably for building refurbishment, by:
(i) providing model contracts for energy
performance contracting which at least include the items
listed in the Thirteenth Schedule;
(ii) providing information on best practices for
energy performance contracting, including, if available,
cost and benefit analysis using a life-cycle approach.
(2) The Minister shall support the proper functioning of the
energy services market, where appropriate, by:
(a) identifying and publicising the point of contact where
final customers can obtain the information referred to in sub-
regulation (1);
(b) taking, if necessary, measures to remove the
regulatory and non-regulatory barriers that impede the uptake of
energy performance contracting and other energy efficiency
service models for the identification and, or implementation of
energy saving measures;
(c) considering putting in place or assigning the role of
an independent mechanism, such as an ombudsman, to ensure
the efficient handling of complaints and out-of-court settlement
of disputes arising from energy service contracts;
(d) enabling independent market intermediaries to play a
role in stimulating market development on the demand and
supply sides.
(3) Energy distributors, distribution system operators and retail
energy sales companies shall refrain from any activities that may
impede the demand for and delivery of energy services or other energy
efficiency improvement measures, or hinder the development of
markets for energy services or other energy efficiency improvement
measures, including foreclosing the market for competitors or abusing
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dominant positions.
Removal of all 
regulatory 
barriers to 
energy 
efficiency.26.(1) Without prejudice to the basic principles of the
property and tenancy laws, the Minister shall evaluate and if necessary
take appropriate measures to remove regulatory and non-regulatory
barriers to energy efficiency, notably as regards: 
(a) the split of incentives between the owner and the
tenant of a building or among owners, with a view to ensuring
that these parties are not deterred from making efficiency-
improving investments that they would otherwise have made by
the fact that they will not individually obtain the full benefits or
by the absence of rules for dividing the costs and benefits
between them, including national rules and measures regulating
multi-owner property decision-making processes;
(b) legal and regulatory provisions, and administrative
practices, regarding public purchasing and annual budgeting and
accounting, with a view to ensuring that individual public bodies
are not deterred from making investments in improving energy
efficiency and minimising expected life-cycle costs and from
using energy performance contracting and other third-party
financing mechanisms on a long-term contractual basis.
Such measures to remove barriers may include providing
incentives, repealing or amending legal or regulatory provisions, or
adopting guidelines and interpretative communications, or simplifying
administrative procedures. These measures may be combined with the
provision of education, training and specific information and technical
assistance on energy efficiency.
(2) The evaluation of barriers and measures referred to in sub-
regulation (1) shall be notified to the Commission in the first National
Energy Efficiency Action Plan. 
Minister to 
facilitate 
establishment of 
financing funds.27.(1) Without prejudice to Articles 107 and 108 of the
Treaty, the Minister shall facilitate the establishment of financing
facilities, or use of existing ones, for energy efficiency improvement
measures to maximise the benefits of multiple streams of financing.
(2) The Minister may set up an Energy Efficiency National
Fund. The purpose of this fund shall be to support national energy
efficiency initiatives.
(3) The obligations set out in sub-regulation (1) of regulation 5
may be fulfilled by annual contributions to the Energy Efficiency
National Fund of an equal amount to the investments required to
achieve the obligations.
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(4) Obligated parties can fulfil their obligations set out in sub-
regulation (1) of regulation 7 by contributing annually to the Energy
Efficiency National Fund an equal amount to the investments required
to achieve their obligations.
(5) Revenues from annual emission allocations under Decision
No 406/2009/EC may be used for the development of innovative
financing mechanisms to give practical effect to the objective in
regulation 4 of improving the energy performance of buildings.
(6) The Minister shall, for the purpose of mobilising private
financing of energy efficiency measures and energy renovation:
(a) consider ways to make better use of energy audits
under regulation 10 to influence decision-making;
(b) make optimal use of the possibilities and tools
proposed in the smart finance for smart buildings initiative.*
Conversion 
factors.28.For the purpose of comparison of energy savings and
conversion to a comparable unit, the conversion factors in the Fourth
Schedule shall apply unless the use of other conversion factors can be
justified.
Progress report 
on national 
energy 
efficiency 
targets.29.The Regulator shall prepare before the 30th April of each
year statistics on national electricity and heat production from high
and low efficiency cogeneration, in accordance with the methodology
shown in the First Schedule, in relation to total heat and electricity
capacities. The Regulator shall also prepare annual statistics on
cogeneration heat and electricity capacities and fuels for cogeneration,
and on district heating and cooling production and capacities, in
relation to total heat and electricity capacities. The Regulator shall
prepare statistics on primary energy savings achieved by application of
cogeneration in accordance with the methodology shown in the
Second Schedule.
Offences and 
penalties.30.Any person who:
(a) wilfully or through negligence acts in breach of any
provision of these regulations;
(b) fails to comply with any lawful order by an inspector,
employee or officer of the Regulator in execution of their duties
in terms of these regulations;
* Smart Finance for Smart Buildings (SFSB) Financial Instrument  https://ec.europa.eu/info/news/smart-
finance-smart-buildings-investing-energy-efficiency-buildings-2018-feb-07_en
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(c) makes a declaration for any of the purposes of these
regulations which is false, misleading or incorrect in any
material respect,
shall be guilty of an offence against these regulations and shall,
on conviction, be liable to a fine ( multa) of not more than sixty-nine
thousand and eight hundred and eighty-one euro and twenty cents
(€69,881.20), or to one thousand and three hundred and ninety-seven
euro and sixty-two cents (€1,397.62) for each day during which the
offence persists.
Repeal.
S.L. 545. 16.31.(1) The Energy Efficiency and Cogeneration Regulations
are hereby being repealed.
(2) The repeal of the regulations referred to in sub-regulation
(1) shall not affect anything done or required to be done under those
regulations.
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First Schedule
(regulation 29)
General principles for the calculation of electricity from
cogeneration
Part I. General principles
Values used for calculation of electricity from cogeneration shall
be determined on the basis of the expected or actual operation of the
unit under normal conditions of use. For micro-cogeneration units the
calculation may be based on certified values.
(a) Electricity production from cogeneration shall be
considered equal to total annual electricity production of the unit
measured at the outlet of the main generators.
(i) in cogeneration units of type (b), (d), (e), (f), (g)
and (h) referred to in Part II with an annual overall
efficiency at a level of at least seventy-five per cent (75%),
and
(ii) in cogeneration units of type ( a) and (c) referred
to in Part II with an annual overall efficiency at a level of at
least eighty per cent (80%).
(b) In cogeneration units with an annual overall
efficiency below the value referred to in paragraph (a)(i)
(cogeneration units of type (b), (d), (e), (f), (g) and (h) referred to
in Part II) or with an annual overall efficiency below the value
referred to in paragraph (a)(ii) (cogeneration units of type (a) and
(c) referred to in Part II) cogeneration is calculated according to
the following formula:
ECHP = HCHP*C
where:
ECHP is the amount of electricity from cogeneration
C is the power to heat ratio
HCHP is the amount of useful heat from cogeneration (calculated
for this purpose as total heat production minus any heat produced in
separate boilers or by live steam extraction from the steam generator
before the turbine).
The calculation of electricity from cogeneration must be based on
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the actual power to heat ratio. If the actual power to heat ratio of a
cogeneration unit is not known, the following default values may be
used, notably for statistical purposes, for units of type (a), (b), (c), (d)
and (e) referred to in Part II provided that the calculated cogeneration
electricity is less or equal to total electricity production of the unit:
If the Regulator introduces default values for power to heat ratios
for units of type (f), (g), (h), (i), (j) and (k) referred to in Part II, such
default values shall be published and shall be notified to the
Commission.
(c) If a share of the energy content of the fuel input to the
cogeneration process is recovered in chemicals and recycled, this
share can be subtracted from the fuel input before calculating the
overall efficiency used in paragraphs (a) and (b) of this Schedule.
(d) The Regulator may determine the power to heat ratio
as the ratio between electricity and useful heat when operating in
cogeneration mode at a lower capacity using operational data of
the specific unit.
(e) The Regulator may use other reporting periods than
one year for the purpose of the calculations according to
paragraphs (a) and (b) of this Schedule.
Part II. Cogeneration technologies covered by these regulations
(a) Combined cycle gas turbine with heat recovery;
(b) Steam backpressure turbine;
(c) Steam condensing extraction turbine;
(d) Gas turbine with heat recovery;
(e) Internal combustion engine;
(f) Microturbines;Type of the unitDefault power to heat ratio, C
Combined cycle gas turbine with heat
recovery0,95
Steam back pressure turbine 0,45
Steam condensing extraction turbine 0,45
Gas turbine with heat recovery 0,55
Internal combustion engine 0,75
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(g) Stirling engines;
(h) Fuel cells;
(i) Steam engines;
(j) Organic Rankine cycles;
(k) Any other type of technology or combination thereof
falling under the definition "cogeneration" laid down in
regulation 2.
When implementing and applying the general principles for the
calculation of electricity from cogeneration, the Minister shall use the
detailed Guidelines established by Decision 2008/952/EC.
Second Schedule
(regulations 21(13) and 29(3))
Methodology for determining the efficiency of the cogeneration 
process
Values used for calculation of efficiency of cogeneration and
primary energy savings shall be determined on the basis of the
expected or actual operation of the unit under normal conditions of
use.
(a) High-efficiency cogeneration
For the purpose of these regulations high-efficiency cogeneration
shall fulfil the following criteria:
(i) cogeneration production from cogeneration
units shall provide primary energy savings calculated
according to paragraph (b) of this Schedule of at least ten
per cent (10%) compared with the references for separate
production of heat and electricity;
(ii) production from small scale and micro
cogeneration units providing primary energy savings may
qualify as high-efficiency cogeneration.
(b) Calculation of primary energy savings
The amount of primary energy savings provided by cogeneration
production defined in accordance with the First Schedule shall be
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calculated on the basis of the following formula:
Where:
PES is primary energy savings.
CHP Hη is the heat efficiency of the cogeneration production
defined as annual useful heat output divided by the fuel input used to
produce the sum of useful heat output and electricity from
cogeneration.
Ref Hη is the efficiency reference value for separate heat
production.
CHP Eη is the electrical efficiency of the cogeneration
production defined as annual electricity from cogeneration divided by
the fuel input used to produce the sum of useful heat output and
electricity from cogeneration. Where a cogeneration unit generates
mechanical energy, the annual electricity from cogeneration may be
increased by an additional element representing the amount of
electricity which is equivalent to that of mechanical energy. This
additional element will not create a right to issue guarantees of origin
in accordance with sub-regulation (13) of regulation 21.
Ref Eη is the efficiency reference value for separate electricity
production.
(c) Calculations of energy savings using alternative
calculation
The Minister may calculate primary energy savings from a
production of heat and electricity and mechanical energy as below
without using the First Schedule to exclude the non-cogenerated heat
and electricity parts of the same process. Such a production can be
regarded as high-efficiency cogeneration provided it fulfils the
efficiency criteria in paragraph (a) of this Schedule and, for
cogeneration units with an electrical capacity larger than 25 MW, the
overall efficiency is above seventy per cent (70%). However,
specification of the quantity of electricity from cogeneration produced
in such a production, for issuing a guarantee of origin and for
statistical purposes, shall be determined in accordance with the First
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Schedule.
If primary energy savings for a process are calculated using
alternative calculation as above the primary energy savings shall be
calculated using the formula in paragraph (b) of this Schedule
replacing: "CHP Hη" with "Hη" and "CHP Eη" with "Eη", where:
Hη shall mean the heat efficiency of the process, defined as the
annual heat output divided by the fuel input used to produce the sum of
heat output and electricity output.
Eη shall mean the electricity efficiency of the process, defined as
the annual electricity output divided by the fuel input used to produce
the sum of heat output and electricity output. Where a cogeneration
unit generates mechanical energy, the annual electricity from
cogeneration maybe increased by an additional element representing
the amount of electricity which is equivalent to that of mechanical
energy. This additional element will not create a right to issue
guarantees of origin in accordance with sub-regulation (13) of
regulation 21.
(d) The Regulator may use other reporting periods than
one year for the purpose of the calculations according to
paragraphs (b) and (c) of this Schedule.
(e) For micro-cogeneration units the calculation of
primary energy savings may be based on certified data.
(f) Efficiency reference values for separate production of
heat and electricity
The harmonised efficiency reference values shall consist of a
matrix of values differentiated by relevant factors, including year of
construction and types of fuel, and must be based on a well-
documented analysis taking, inter alia , into account data from
operational use under realistic conditions, fuel mix and climate
conditions as well as applied cogeneration technologies.
The efficiency reference values for separate production of heat
and electricity in accordance with the formula set out in paragraph (b)
shall establish the operating efficiency of the separate heat and
electricity production that cogeneration is intended to substitute.
The efficiency reference values shall be calculated according to
the following principles:
1. For cogeneration units as defined in regulation 2 the
comparison with separate electricity production shall be based on the
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principle that the same fuel categories are compared.
2. Each cogeneration unit shall be compared with the best
available and economically justifiable technology for separate
production of heat and electricity on the market in the year of
construction of the cogeneration unit.
3. The efficiency reference values for cogeneration units older
than ten (10) years of age shall be fixed on the reference values of
units of ten (10) years of age.
4. The efficiency reference values for separate electricity
production and heat production shall reflect the climatic differences
between Member States.
Third Schedule
(regulation 6(1))
Energy efficiency requirements for purchasing products, services
and buildings by Government
Government when purchasing products, services or buildings,
insofar as this is consistent with cost-effectiveness, economical
feasibility, wider sustainability, technical suitability, as well as
sufficient competition, shall:
(a) where a product is covered by a delegated act adopted
under Directive 2010/30/EU or Directive 92/75/EEC, purchase
only the products that comply with the criterion of belonging to
the highest energy efficiency class possible in the light of the
need to ensure sufficient competition;
(b) where a product not covered under paragraph (a) of
this Schedule is covered by an implementing measure under the
Framework for the Setting of Ecodesign Requirements for
Energy-Related Products Regulations, adopted after the entry
into force of these regulations, purchase only products that
comply with energy efficiency benchmarks specified in that
implementing measure;
(c) purchase office equipment products covered by
Council Decision 2006/1005/EC that comply with energy
efficiency requirements not less demanding than those listed in
Annex C of the Agreement attached to that Decision;
(d) purchase only tyres that comply with the criterion of
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having the highest fuel energy efficiency class, as defined by
Regulation (EC) No 1222/2009. This requirement shall not
prevent public bodies from purchasing tyres with the highest wet
grip class or external rolling noise class where justified by safety
or public health reasons;
(e) require in their tenders for service contracts that
service providers use, for the purposes of providing the services
in question, only products that comply with the requirements
referred to in paragraphs (a) to (d) of this Schedule, when
providing the services in question. This requirement shall apply
only to new products purchased by service providers partially or
wholly for the purpose of providing the service in question;
(f) purchase, or make new rental agreements for, only
buildings that comply at least with the minimum energy
performance requirements referred to in sub-regulation (1) of
regulation 5 unless the purpose of the purchase is:
(i) deep renovation or demolition;
(ii) the public body intends to re-sell the building
without using it for its own purposes; or 
(iii) to preserve it as a building officially protected
as part of a designated environment, or because of its
special architectural or historical merit.
Compliance with these requirements shall be verified by means
of the energy performance certificates referred to in regulation 12 of
the Energy Performance of Buildings Regulations.
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Fourth Schedule
(regulations 8(4) and 28)
Energy content of selected fuels for end use - conversion table*
Source: Eurostat.
[1] ninety-three per cent (93%) methane.
[2] The Minister may apply other values depending on the type
of wood most used in Malta.
[3] Applicable when energy savings are calculated in
primary energy terms using a bottom-up approach based on final
energy consumption. For savings in kWh electricity the Minister
shall apply a coefficient established through a transparent
methodology on the basis of national circumstances affecting primary
energy consumption, in order to ensure a precise calculation of real
savings. Those circumstances shall be substantiated, verifiable andEnergy commodity kJ (NCV) kgoe (NCV) kWh (NCV)
1 kg coke 28500 0,676 7,917
1 kg hard coal 17200 – 30700 0,411 - 0,733 4,778 - 8,528
1 kg brown coal
briquettes20000 0,478 5,556
1 kg black lignite 10500 – 21000 0,251 - 0,502 2,917 - 5,833
1 kg brown coal 5600 – 10500 0,134 - 0,251 1,556 - 2,917
1 kg oil shale 8000 – 9000 0,191 - 0,215 2,222 - 2,500
1 kg peat 7800 – 13800 0,186 - 0,330 2,167 - 3,833
1 kg peat briquettes 16000 – 16800 0,382 - 0,401 4,444 - 4,667
1 kg residual fuel oil
(heavy oil)40000 0,955 11,111
1 kg light fuel oil 42300 1,010 11,750
1 kg motor spirit (petrol) 44000 1,051 12,222
1 kg paraffin 40000 0,955 11,111
1 kg liquefied petroleum
gas46000 1,099 12,778
1 kg natural gas [1]47200 1,126 13,10
1 kg liquefied natural
gas45190 1,079 12,553
1 kg wood (25%
humidity) [2]13800 0,330 3,833
1 kg pellets/wood bricks 16800 0,401 4,667
1 kg waste 7400 – 10700 0,177 - 0,256 2,056 - 2,972
1 MJ derived heat 1000 0,024 0,278
1 kWh electrical energy 3600 0,086 1 [3]
*The Minister may apply different conversion factors if these can be justified.
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based on objective and non-discriminatory criteria. For savings in
kWh electricity, the Minister may apply a default coefficient of 2,1 or
use discretion to define a different coefficient, provided that this can
be justified. When doing so, the Minister shall take into account the
energy mix included in Malta’s integrated national energy and climate
plans as notified to the Commission in accordance with Regulation
(EU) 2018/1999. 
Fifth Schedule
(regulations 7, 8, 9, and 27(4))
Common methods and principles for calculating the impact of
energy efficiency obligation schemes or other policy measures under
regulations 7, 8 and 9 and sub-regulation (4) of regulation 27
1. Methods for calculating energy savings other than those
arising from taxation measures for the purposes of regulations 7, 8 and
9 and sub-regulation (4) of regulation 27.
Obligated, participating or entrusted parties, or implementing
public authorities, may use the following methods for calculating
energy savings:
(a) deemed savings, by reference to the results of
previous independently monitored energy improvements in
similar installations. The generic approach is termed " ex ante";
(b) metered savings, whereby the savings from the
installation of a measure, or package of measures, are
determined by recording the actual reduction in energy use,
taking due account of factors such as additionality, occupancy,
production levels and the weather which may affect
consumption. The generic approach is termed " ex post";
(c) scaled savings, whereby engineering estimates of
savings are used, provided that this approach may be used only
where establishing robust measured data for a specific
installation is difficult or disproportionately expensive, e.g.
replacing a compressor or electric motor with a different kWh
rating from that for which independent information about
savings has been measured, or where those estimates are carried
out on the basis of nationally established methodologies and
benchmarks by qualified or accredited experts that are
independent of the obligated, participating or entrusted parties
involved;
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(d) surveyed savings, where consumers’ response to
advice, information campaigns, labelling or certification
schemes or smart metering is determined, provided that this
approach may be used only for savings resulting from changes in
consumer behaviour and shall not be used for savings resulting
from the installation of physical measures.
2. In determining the energy savings for an energy efficiency
measure for the purposes of regulations 7, 8 and 9 and sub-regulation
(4) of regulation 27, the following principles shall apply:
(a) the savings shall be shown to be additional to those
that would have occurred in any event without the activity of the
obligated, participating or entrusted parties, or implementing
public authorities. To determine the savings that can be claimed
as additional, the Minister shall have regard to how energy use
and demand would evolve in the absence of the policy measure
in question by taking into account at least the following factors:
(i) energy consumption trends; 
(ii) changes in consumer behaviour;
(iii) technological progress; and 
(iv) changes caused by other measures implemented
at Union and national level;
(b) savings resulting from the implementation of
mandatory Union law shall be considered to be savings that
would have occurred in any event, and thus shall not be claimed
as energy savings for the purpose of sub-regulation (1) of
regulation 7). By way of derogation from that requirement,
savings related to the renovation of existing buildings may be
claimed as energy savings for the purpose of sub-regulation (1)
of regulation 7, provided that the materiality criterion referred to
in item 3(h) of this Schedule is ensured. Savings resulting from
the implementation of national minimum requirements
established for new buildings prior to the entry into force of the
Energy Performance of Buildings Regulations can be claimed as
energy savings for the purpose of paragraph (a) of sub-regulation
(1) of regulation 7, provided that the materiality criterion
referred to in item 3(h) of this Schedule is ensured and these
savings have been notified in the National Energy Efficiency
Action Plan;
(c) credit may be given only for savings exceeding the
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following levels:
(i) union emission performance standards for new
passenger cars and new light commercial vehicles
following the implementation of Regulations (EC) No 443/
2009 (*1) and (EU) No 510/2011 of the European
Parliament and of the Council (*2);
(ii) union requirements relating to the removal from
the market of certain energy related products following the
implementation of implementing measures under Directive
2009/125/EC;
(d) policies with the purpose of encouraging higher
levels of energy efficiency of products, equipment, transport
systems, vehicles and fuels, buildings and building elements,
processes or markets shall be permitted.
(e) measures promoting the installation of small-scale
renewable energy technologies on or in buildings may be eligible
to be taken into account for the fulfilment of energy savings
required under sub-regulation (1) of regulation 7, provided that
they result in verifiable, and measurable or estimable, energy
savings. The calculation of energy savings shall comply with the
requirements of this Schedule. 
(f) for policies that accelerate the uptake of more
efficient products and vehicles, full credit may be claimed,
provided that it is shown that such uptake takes place before
expiry of the average expected lifetime of the product or vehicle,
or before the product or vehicle would usually be replaced, and
the savings are claimed only for the period until end of the
average expected lifetime of the product or vehicle to be
replaced.
(g) in promoting the uptake of energy efficiency
measures, the Minister shall, where relevant, ensure that quality
standards for products, services and installation of measures are
maintained or introduced where such standards do not exist.
(h) To account for climatic variations between regions,
the Minister may choose to adjust the savings to a standard value
or to accord different energy savings in accordance with
temperature variations between regions.
(i) the calculation of energy savings shall take into
account the lifetime of the measures and the rate at which the
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savings decline over time. That calculation shall count the
savings each individual action will achieve during the period
from its date of implementation to 31st December 2020 or 31st
December 2030 as appropriate. Alternatively, the Minister may
adopt another method that is estimated to achieve at least the
same total quantity of savings. When using another method, the
Minister shall ensure that the total amount of energy savings
calculated using that method does not exceed the amount of
energy savings that would have been the result of their
calculation when counting the savings each individual action
will achieve during the period from its date of implementation to
31stDecember 2020 or 31st December 2030 as appropriate. The
other method and the provisions made to ensure that the binding
calculation requirement is met shall be described in detail in the
integrated national energy and climate plans under Regulation
(EU) 2018/1999.
3. The Minister shall ensure that the following requirements
for policy measures taken pursuant to regulation 9 and sub-regulation
(4) of regulation 27 are met:
(a) policy measures and individual actions produce
verifiable end-use energy savings;
(b) the responsibility of each participating party,
entrusted party or implementing public authority, as relevant, is
clearly defined;
(c) the energy savings that are achieved or are to be
achieved are determined in a transparent manner;
(d) the amount of energy savings required or to be
achieved by the policy measure is expressed in either final or
primary energy consumption, using the conversion factors set
out in the Fourth Schedule;
(e) an annual report on the energy savings achieved by
entrusted parties, participating parties and implementing public
authorities be provided and made publicly available, as well as
data on the annual trend of energy savings;
(f) monitoring of the results and taking appropriate
measures if progress is not satisfactory;
(g) the energy savings from an individual action are not
claimed by more than one party;
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(h) the activities of the participating party, entrusted
party or implementing public authority are shown to be material
to the achievement of the energy savings claimed.
4. In determining the energy saving from taxation related
policy measures introduced under regulation 9, the following
principles shall apply:
(a) credit shall be given only for energy savings from
taxation measures exceeding the minimum levels of taxation
applicable to fuels as required in Council Directive 2003/96/EC
(*3) or 2006/112/EC (*4);
(b) price elasticities for the calculation of the impact of
the (energy) taxation measures shall represent the responsiveness
of energy demand to price changes, and shall be estimated on the
basis of recent and representative official data sources;
(c) the energy savings from accompanying taxation
policy instruments, including fiscal incentives or payment to a
fund, shall be accounted separately.
5. Notification of methodology
The Minister shall, in accordance with Regulation (EU) 2018/
1999, ensure that the proposed detailed methodology for the operation
of the energy efficiency obligation schemes and alternative measures
referred to in regulations 8 and 9, and sub-regulation (4) of regulation
27 are notified to the Commission. Except in the case of taxation, such
notification shall include details of:
(a) the level of the energy savings required under
paragraph (b) of sub-regulation (1)of regulation 7 or savings
expected to be achieved over the whole period from 1st January
2021 to 31st December 2030;
(b) the obligated, participating or entrusted parties, or
implementing public authorities;
(c) target sectors;
(d) policy measures and individual actions, including the
expected total amount of cumulative energy savings for each
measure;
(e) the duration of the obligation period for the energy
efficiency obligation scheme;
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(f) the actions provided for by the policy measure;
(g) the calculation methodology, including how
additionality and materiality have been determined and which
methodologies and benchmarks are used for deemed and scaled
savings;
(h) the lifetimes of measures, and how they are
calculated or what they are based upon;
(i) the approach taken to address climatic variations;
(j) the monitoring and verification systems for measures
under regulations 8 and 9 and how their independence from the
obligated, participating or entrusted parties is ensured;
(k) in the case of taxation:
(i) the target sectors and segment of taxpayers;
(ii) the implementing public authority;
(iii) the savings expected to be achieved;
(iv) the duration of the taxation measure; and
(v) the calculation methodology, including the
price elasticities used and how they have been established.
Sixth Schedule
(regulation 10(3), (10) and (11))
Minimum criteria for energy audits including those carried out as part 
of energy management systems
The energy audits referred to in regulation 10 shall be based on
the following guidelines:
(a) be based on up-to-date, measured, traceable
operational data on energy consumption and (for electricity) load
profiles;
(b) comprise a detailed review of the energy
consumption profile of buildings or groups of buildings,
industrial operations or installations, including transportation;
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(c) build, whenever possible, on life-cycle cost analysis
(LCCA) instead of Simple Payback Periods (SPP) in order to
take account of long-term savings, residual values of long-term
investments and discount rates;
(d) be proportionate, and sufficiently representative to
permit the drawing of a reliable picture of overall energy
performance and the reliable identification of the most
significant opportunities for improvement.
Energy audits shall allow detailed and validated calculations for
the proposed measures so as to provide clear information on potential
savings.
The data used in energy audits shall be storable for historical
analysis and tracking performance.
Seventh Schedule
(regulation 15(1) and (3)(c))
Minimum requirements for billing 
Part I
Minimum requirements for billing and billing information based
on actual consumption of electricity and gas
1. Minimum requirements for billing 
1.1. Billing based on actual consumption
In order to enable final customers to regulate their own energy
consumption, billing should take place on the basis of actual
consumption at least once a year, and billing information should be
made available at least quarterly, on request or where the consumers
have opted to receive electronic billing or else twice yearly. Gas used
only for cooking purposes may be exempted from this requirement.
1.2. Minimum information contained in the bill
Where appropriate, the following information shall be made
available to final customers in clear and understandable terms in or
with their bills, contracts, transactions, and receipts at distribution
stations:
(a) current actual prices and actual consumption of
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energy;
(b) comparisons of the final customer’s current energy
consumption with consumption for the same period in the
previous year, preferably in graphic form;
(c) contact information for final customers’
organisations, energy agencies or similar bodies, including
website addresses, from which information may be obtained on
available energy efficiency improvement measures, comparative
end-user profiles and objective technical specifications for
energy-using equipment.
In addition, wherever possible and useful, the following
information shall be made available to final customers in clear and
understandable terms, in, with or signposted to within, their bills,
contracts, transactions, and receipts at distribution stations;
(d) comparisons with an average normalised or
benchmarked final customer in the same user category.
1.3. Advice on energy efficiency accompanying bills and other
feedback to final customers
When sending contracts and contract changes, and in the bills
customers receive or through websites addressing individual
customers, energy distributors, distribution system operators and retail
energy sales companies shall inform their customers in a clear and
understandable manner of contact information for independent
consumer advice centres, energy agencies or similar institutions,
including their internet addresses, where they can obtain advice on
available energy efficiency measures, benchmark profiles for their
energy consumption and technical specifications of energy using
appliances that can serve to reduce the consumption of these
appliances.
Part II
Minimum requirements for billing and consumption information
for heating, cooling and domestic hot water 
1. Billing based on actual consumption or heat cost allocator
readings
In order to enable final users to regulate their own energy
consumption, suppliers shall ensure that billing shall take place on the
basis of actual consumption or heat cost allocator readings at least
once per year.
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2. Minimum frequency of billing or consumption information
From 25th October 2020, where remotely readable meters or heat
cost allocators have been installed, billing or consumption information
based on actual consumption or heat cost allocator readings shall be
provided to final users at least every three (3) months by by their
supplier upon request or where final customers have opted to receive
electronic billing, or else twice a year. 
From 1st January 2022, where remotely readable meters or heat
cost allocators have been installed, billing or consumption information
based on actual consumption or heat cost allocator readings shall be
provided to final users at least monthly. Such information may also be
made available via the internet and be updated as frequently as allowed
by the measurement devices and systems used. Heating and cooling
may be exempted from that requirement outside the heating/cooling
seasons.
3. Minimum information contained in the bill
The supplier shall ensure that the following information is made
available to final users in clear and comprehensible terms in or with
their bills where those are based on actual consumption or heat cost
allocator readings:
(a) current actual prices and actual consumption of
energy or total heat cost and heat cost allocator readings;
(b) information about the fuel mix used and the related
annual greenhouse emissions, including for final users supplied
by district heating or district cooling, and a description of the
different taxes, levies and tariffs applied. The scope of the
requirement to provide information about greenhouse gas
emissions may be limited to supplies from district heating
systems with a total rated thermal input exceeding 20MW;
(c) comparisons of the final users’ current energy
consumption with consumption for the same period in the
previous year, in graphic form, climate corrected for heating and
cooling;
(d) contact information for final customers’
organisations, energy agencies or similar bodies, including
website addresses, from which information on available energy
efficiency improvement measures, comparative end-user profiles
and objective technical specifications for energy-using
equipment may be obtained;
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(e) information about related complaints procedures,
ombudsman services or alternative dispute resolution
mechanisms, as applicable;
(f) comparisons with an average normalised or
benchmarked final user in the same user category. In the case of
electronic bills, such comparisons may instead be made available
online and signposted to within the bills;
Bills that are not based on actual consumption or heat cost
allocator readings shall contain a clear and comprehensible
explanation of how the amount set out in the bill was calculated, and at
least the information referred to in paragraphs (d) and (e). 
Eighth Schedule
(regulation 21(1) and (4))
Potential for efficiency in heating and cooling
The comprehensive assessment of national heating and cooling
potentials referred to in regulation 21(1) shall include and be based on
the following:
Part One - Overview of Heating and Cooling
1. heating and cooling demand in terms of assessed useful
energy(1)and quantified final energy consumption in GWh per year(2)
by sectors:
(a) residential;
(b) services;
(c) industry;
(d) any other sector that individually consumes more
than five per cent (5%) of total national useful heating and
cooling demand;
2. identification, or in the case of item 2(a)(i), identification
or estimation, of current heating and cooling supply:
(a) by technology, in GWh per year(3), within sectors
mentioned under item 1 where possible, distinguishing between
energy derived from fossil and renewable sources:
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(i) provided on-site in residential and service sites
by:
-heat only boilers;
-high-efficiency heat and power
cogeneration;
-heat pumps;
-other on-site technologies and sources;
(ii) provided on-site in non-service and non-
residential sites by:
-heat only boilers;
-high-efficiency heat and power
cogeneration;
-heat pumps;
-other on-site technologies and sources;
(iii) provided off-site by:
-high-efficiency heat and power
cogeneration;
-waste heat;
-other off-site technologies and sources;
(b) identification of installations that generate waste heat
or cold and their potential heating or cooling supply, in GWh per
year:
(i) thermal power generation installations that can
supply or can be retrofitted to supply waste heat with a total
thermal input exceeding 50 MW;
(ii) heat and power cogeneration installations using
technologies referred to in Part II of the First Schedule with
a total thermal input exceeding 20 MW;
(iii) waste incineration plants;
(iv) renewable energy installations with a total
thermal input exceeding 20 MW other than the installations
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specified under item 2(b)(i) and (ii) generating heating or
cooling using the energy from renewable sources;
(v) industrial installations with a total thermal input
exceeding 20 MW which can provide waste heat;
(c) reported share of energy from renewable sources and
from waste heat or cold in the final energy consumption of the
district heating and cooling(4) sector over the past five (5) years,
in line with Directive (EU) 2018/2001;
3. a map covering the entire national territory identifying
(while preserving commercially sensitive information):
(a) heating and cooling demand areas following from the
analysis of item 1, while using consistent criteria for focusing on
energy dense areas in municipalities and conurbations;
(b) existing heating and cooling supply points identified
under item 2(b) and district heating transmission installations;
(c) planned heating and cooling supply points of the type
described under item 2(b) and district heating transmission
installations;
4. a forecast of trends in the demand for heating and cooling
to maintain a perspective of the next thirty (30) years in GWh and
taking into account in particular projections for the next ten (10) years,
the change in demand in buildings and different sectors of the industry,
and the impact of policies and strategies related to the demand
management, such as long-term building renovation strategies under
Directive (EU) 2018/844;
Part Two – Objectives, Strategies and Policy Measures
5. planned contribution to national objectives, targets and
contributions for the five dimensions of the energy union, as laid
out in Article 3(2)(b) of Regulation (EU) 2018/1999, delivered
through efficiency in heating and cooling, in particular related to
points 1 to 4 of Article 4(b) and to paragraph (4)(b) of Article 15 of the
same Regulation, identifying which of these elements is additional
compared to integrated national energy and climate plans;
6. general overview of the existing policies and measures as
described in the most recent report submitted in accordance with
Articles 3, 20, 21 and 27(a) of Regulation (EU) 2018/1999; 
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Part Three – Analysis of the Economic Potential for Efficiency in
Heating and Cooling 
7. an analysis of the economic potential(5) of different
technologies for heating and cooling shall be carried out for the entire
national territory by using the cost-benefit analysis referred to in sub-
regulation (4) of regulation 21 and shall identify alternative scenarios
for more efficient and renewable heating and cooling technologies,
distinguishing between energy derived from fossil and renewable
sources where applicable.
The following technologies should be considered:
(a) Industrial waste heat and cold;
(b) Waste incineration;
(c) High efficiency cogeneration;
(d) Renewable energy sources (such as geothermal, solar
thermal and biomass) other than those used for high efficiency
cogeneration;
(e) Heat pumps;
(f) Reducing heat and cold losses from existing district
networks.
8. this analysis of economic potential shall include the
following steps and considerations:
(a) Considerations:
(i) the cost-benefit analysis for the purposes of
sub-regulation (4) of regulation 21 shall include an
economic analysis that takes into consideration
socioeconomic and environmental factors(6) and a financial
analysis performed to assess projects from the investors’
point of view. Both economic and financial analyses shall
use the net present value as criterion for the assessment;
(ii) the baseline scenario should serve as a
reference point and take into account existing policies at
the time of compiling this comprehensive assessment(7),
and be linked to data collected under Part One and item 6 of
Part Two of this Schedule;
(iii) alternative scenarios to the baseline shall take
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into account energy efficiency and renewable energy
objectives of Regulation (EU) 2018/1999. Each scenario
shall present the following elements compared to the
baseline scenario:
-Economic potential of technologies
examined using the net present value as criterion;
-Greenhouse gas emissions reductions;
-Primary energy savings in GWh per year;
-Impact on the share of renewables in the
national energy mix. Scenarios that are not feasible
due to technical reasons, financial reasons or national
regulation may be excluded at an early stage of the
cost-benefit analysis, if justified based on careful,
explicit and well-documented considerations.
The assessment and decision-making should take into account
costs and energy savings from increased flexibility in energy supply
and from a more optimal operation of the electricity networks,
including avoided costs and savings from reduced infrastructure
investment, in the analysed scenarios.
(b) Costs and benefits
The costs and benefits referred to under item 8(a) shall include at
least the following benefits and costs:
(i) Benefits:
- value of output to the consumer (heating,
cooling and electricity);
-external benefits such as environmental,
greenhouse gas emissions and health and safety
benefits, to the extent possible;
- labour market costs, energy security and
competitiveness, to the extent possible.
(ii) Costs:
-Capital costs of plants and equipment;
-Capital costs of the associated energy
networks,
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-Variable and fixed operating costs;
-Energy costs;
-Environmental, health and safety costs, to
the extent possible;
-Labour market costs, energy security and
competitiveness, to the extent possible.
(c) Relevant scenarios to the baseline:
All relevant scenarios to the baseline shall be considered,
including the role of efficient individual heating and cooling.
(i) the cost-benefit analysis may either cover a
project assessment or a group of projects for a broader
local, regional or national assessment in order to establish
the most cost-effective and beneficial heating or cooling
solution against a baseline for a given geographical area for
the purpose of planning;
(ii) The Minister shall designate the competent
authorities responsible for carrying out the cost-benefit
analyses pursuant to regulation 21 and shall provide the
detailed methodologies and assumptions in accordance
with this Schedule and establish and make public the
procedures for the economic analysis.
(d) Boundaries and integrated approach:
(i) the geographical boundary shall cover a
suitable well-defined geographical area;
(ii) the cost-benefit analyses shall take into account
all relevant centralised or decentralised supply resources
available within the system and geographical boundary,
including technologies considered under item 7 of Part 3 of
this Schedule, and heating and cooling demand trends and
characteristics.
(e) Assumptions:
(i) the Minister shall provide assumptions, for the
purpose of the cost-benefit analyses, on the prices of major
input and output factors and the discount rate;
(ii) the discount rate used in the economic analysis
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to calculate net present value shall be chosen according to
European or national guidelines;
(iii) the Minister shall use national, European or
international energy price development forecasts if
appropriate in the national and, or regional/local context;
(iv) the prices used in the economic analysis shall
reflect socio economic costs and benefits. External costs,
such as environmental and health effects, should be
included to the extent possible, i.e. when a market price
exists or when it is already included in European or
national regulation.
(f) Sensitivity analysis:
a sensitivity analysis shall be included to assess the costs and
benefits of a project or group of projects and be based on variable
factors having a significant impact on the outcome of the calculations,
such as different energy prices, levels of demand, discount rates and
other. 
Part Four – Potential New Strategies and Policy Measures
9. overview of new legislative and non-legislative policy
measures(8) to realise the economic potential identified in accordance
with items 7 and 8, along with their foreseen:
(a) greenhouse gas emission reductions;
(b) primary energy savings in GWh per year;
(c) impact on the share of high-efficiency cogeneration;
(d) impact on the share of renewables in the national
energy mix and in the heating and cooling sector;
(e) links to national financial programming and cost
savings for the public budget and market participants;
(f) estimated public support measures, if any, with their
annual budget and identification of the potential aid element.
(Footnotes to this schedule)
(1) The amount of thermal energy needed to satisfy the heating
and cooling demand of end-users.
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(2) The most recent data available should be used.
(3) The most recent data available should be used.
(4) The identification of "renewable cooling” shall, after the
methodology for calculating the quantity of renewable energy used for
cooling and district cooling is established in accordance with Article
35 of Directive (EU) 2018/2001, be carried out in accordance with that
Directive. Until then it shall be carried out according to an appropriate
national methodology.
(5) The analysis of the economic potential should present the
volume of energy (in GWh) that can be generated per year by each
technology analysed. The limitations and interrelations within the
energy system should also be taken into account. The analysis may
make use of models based on assumptions representing the operation
of common types of technologies or systems.
(6) Including the assessment referred to in Article 15,
paragraph 7 of Directive (EU) 2018/2001.
(7) The cut-off date for taking into account policies for the
baseline scenario is the end of the year preceding to the year by the end
of which the comprehensive assessment is due. That is to say, policies
enacted within a year prior to the deadline for submission of the
comprehensive assessment do not need to be taken into account.
(8) This overview shall include financing measures and
programmes that may be adopted over the period of the comprehensive
assessment, not prejudging a separate notification of the public support
schemes for a State aid assessment
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Ninth Schedule
(regulation 21(6) and (10)) 
Cost-benefit analysis
The cost-benefit analyses shall provide information for the
purpose of the measures referred to in sub-regulation (6) and (10) of
regulation 21:
If an electricity-only installation or an installation without heat
recovery is planned, a comparison shall be made between the planned
installations or the planned refurbishment and an equivalent
installation producing the same amount of electricity or process heat,
but recovering the waste heat and supplying heat through high
efficiency cogeneration and, or district heating and cooling networks.
Within a given geographical boundary the assessment shall take
into account the planned installation and any appropriate existing or
potential heat demand points that could be supplied from it, taking into
account rational possibilities (for example technical feasibility and
distance).
The system boundary shall be set to include the planned
installation and the heat loads, such as building/s and industrial
process. Within this system boundary the total cost of providing heat
and power shall be determined for both cases and compared.
Heat loads shall include existing heat loads, such as an industrial
installation or an existing district heating system, and also, in urban
areas, the heat load and costs that would exist if a group of buildings or
part of a city were provided with and, or connected into a new district
heating network.
The cost-benefit analysis shall be based on a description of the
planned installation and the comparison installation(s), covering
electrical and thermal capacity, as applicable, fuel type, planned usage
and the number of planned operating hours annually, location and
electricity and thermal demand.
For the purpose of the comparison, the thermal energy demand
and the types of heating and cooling used by the nearby heat demand
points shall be taken into account. The comparison shall cover
infrastructure related costs for the planned and comparison
installation.
Cost-benefit analyses for the purposes of sub-regulation (6) of
regulation 21 shall include an economic analysis covering a financial
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analysis reflecting actual cash flow transactions from investing in and
operating individual installations.
Projects with positive cost-benefit outcome are those where the
sum of discounted benefits in the economic and financial analysis
exceeds the sum of discounted costs (cost-benefit surplus). 
The Minister shall set guiding principles for the methodology,
assumptions and time horizon for the economic analysis.
The Minister may require that the companies responsible for the
operation of thermal electric generation installations, industrial
companies, district heating and cooling networks, or other parties
influenced by the defined system boundary and geographical
boundary, contribute data for use in assessing the costs and benefits of
an individual installation.
Tenth Schedule
(regulation 21(13))
Guarantee of origin for electricity produced from
high efficiency cogeneration
(a) The Regulator shall take measures to ensure that:
(i) the guarantee of origin of the electricity
produced from high-efficiency cogeneration:
-enable producers to demonstrate that the
electricity they sell is produced from high-efficiency
cogeneration and is issued to this effect in response to
a request from the producer,
-is accurate, reliable and fraud-resistant,
-is issued, transferred and cancelled
electronically; 
(ii) the same unit of energy from high-efficiency
cogeneration is taken into account only once.
(b) The guarantee of origin referred to in sub-regulation
(13) of regulation 21 shall contain at least the following
information:
(i) the identity, location, type and capacity
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(thermal and electrical) of the installation where the energy
was produced;
(ii) the dates and places of production;
(iii) the lower calorific value of the fuel source from
which the electricity was produced; 
(iv) the quantity and the use of the heat generated
together with the electricity;
(v) the quantity of electricity from high efficiency
cogeneration in accordance with the Second Schedule to
these regulations that the guarantee represents;
(vi) the primary energy savings calculated in
accordance with the Second Schedule to these regulations
based on the harmonised efficiency reference values
indicated in paragraph (f) of the Second Schedule;
(vii) the nominal electric and thermal efficiency of
the plant;
(viii)  whether and to what extent the installation has
benefited from investment support; 
(ix) whether and to what extent the unit of energy
has benefited in any other way from a national support
scheme, and the type of support scheme;
(x) the date on which the installation became
operational; and
(xi) the date and country of issue and a unique
identification number.
The guarantee of origin shall be of the standard size of 1 MWh. It
shall relate to the net electricity output measured at the station
boundary and exported to the grid.
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Eleventh Schedule
(regulation 22(1))
Energy efficiency criteria for energy network regulation
and for electricity network tariffs
1. Network tariffs shall be cost-reflective of cost-savings in
networks achieved from demand side and demand response measures
and distributed generation, including savings from lowering the cost of
delivery or of network investment and a more optimal operation of the
network.
2. Network regulation and tariffs shall not prevent network
operators or energy retailers making available system services for
demand response measures, demand management and distributed
generation on organised electricity markets, in particular:
(a) the shifting of the load from peak to off-peak times by
final customers taking into account the availability of renewable
energy, energy from cogeneration and distributed generation;
(b) energy savings from demand response of distributed
consumers by energy aggregators;
(c) demand reduction from energy efficiency measures
undertaken by energy service providers, including energy service
companies;
(d) the connection and dispatch of generation sources at
lower voltage levels;
(e) the connection of generation sources from closer
location to the consumption; and
(f) the storage of energy.
For the purposes of this provision the term "organised electricity
markets" shall include over-the-counter markets and electricity
exchanges for trading energy, capacity, balancing and ancillary
services in all timeframes, including forward, day-ahead and intra-day
markets.
3. Network or retail tariffs may support dynamic pricing for
demand response measures by final customers, such as: 
(a) time-of-use tariffs;
(b) critical peak pricing;
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(c) real time pricing; and
(d) peak time rebates.
Twelfth Schedule
(regulation 22(5))
Energy efficiency requirements for transmission system operators and 
distribution system operators
Transmission and distribution system operators shall:
(a) set up and make public their standard rules relating to
the bearing and sharing of costs of technical adaptations, such as
grid connections and grid reinforcements and the introduction of
new grids, improved operation of the grid and rules on the non-
discriminatory implementation of the grid codes, which are
necessary in order to integrate new producers feeding electricity
produced from high-efficiency cogeneration into the
interconnected grid;
(b) provide any new producer of electricity produced
from high-efficiency cogeneration wishing to be connected to the
system with the comprehensive and necessary information
required, including: 
(i) a comprehensive and detailed estimate of the
costs associated with the connection;
(ii)  a reasonable and precise timetable for
receiving and processing the request for grid connection;
(iii) a reasonable indicative timetable for any
proposed grid connection. The overall process to become
connected to the grid should be no longer than twenty-four
(24) months, bearing in mind what is reasonably
practicable and non-discriminatory;
(c) provide standardised and simplified procedures for
the connection of distributed high efficiency cogeneration
producers to facilitate their connection to the grid.
The standard rules referred to in paragraph (a) shall be based on
objective, transparent and non-discriminatory criteria taking particular
account of all the costs and benefits associated with the connection of
those producers to the grid. They may provide for different types of
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________________________________________________________________________________________________________________________
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connection.
Thirteenth Schedule
(regulation 25(1)(d)) 
Minimum items to be included in energy performance contracts
with the public sector or in the associated tender specifications
- Clear and transparent list of the efficiency measures to be
implemented or the efficiency results to be obtained.
- Guaranteed savings to be achieved by implementing the
measures of the contract.
- Duration and milestones of the contract, terms and period
of notice.
- Clear and transparent list of the obligations of each
contracting party.
- Reference date(s) to establish achieved savings.
- Clear and transparent list of steps to be performed to
implement a measure or package of measures and, where relevant,
associated costs.
- Obligation to fully implement the measures in the contract
and documentation of all changes made during the project.
- Regulations specifying the inclusion of equivalent
requirements in any subcontracting with third parties.
- Clear and transparent display of financial implications of
the project and distribution of the share of both parties in the monetary
savings achieved (i.e. remuneration of the service provider).
- Clear and transparent provisions on measurement and
verification of the guaranteed savings achieved, quality checks andguarantees.
- Provisions clarifying the procedure to deal with changing
framework conditions that affect the content and the outcome of the
contract (i.e. changing energy prices, use intensity of an installation).
- Detailed information on the obligations of each of the
contracting party and of the penalties for their breach.
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