ENERGY EFFICIENCY [S.L. 623.07 1
SUBSIDIARY LEGISLATION 623.07
ENERGY EFFICIENCY REGULATIONS
2nd March, 2021
LEGAL NOTICE 66 of 2021 as amended by Legal Notice 409 of 2021.
Citation and scope. 1. (1) The title of these regulations is the Energy
Efficiency Regulations.
(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 b y
Directive (EU) 2018/2002 of the European Parliament and of theCouncil of the 11
th December amending Directive 2012/27/EU and by
Commission Delegated Regulation (EU) 2019/826 of the 4th March
2019.
( 3 ) T h e s e  r e g u l a t i o n s  e s t a b l i s h  a  f r a m e w o r k  a s  p a r t  o f  t h e
common framework of measures for the promotion of energyefficiency within the Union in order to ensure the achievement of the
Union’s 2020 headline targets on energy efficiency of 20% and i ts
headline targets on energy efficiency of at least 32.5% for 203 0, and to
pave the way for further energy efficiency improvements beyond that
date. These regulations also la y down rules designed to remove
barriers in the energy market and overcome market failures thatimpede 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 th e implementation of the energ y
efficiency first principle
Interpretation. 2. (1) Unless stated otherwise in these regulations, the
definitions in the Act shall apply.
(2)  In these regulations, unless the context otherwise
requires:
Cap. 545. "Act" means the Regulator for E nergy and Water Services Act;
"aggregator" means a demand service provider that combines
multiple short-duration consumer loads to sell or auction in or ganised
energy markets;
S.L. 623. 01."building element" shall have the same meaning as assigned to
it under the Energy Performance  of Buildings Regulations;
Cap. 623."Building and Construction Authority" means the Authority
established under article 5 of the Building and Construction Au thority
Act;
S.L. 623. 01."building unit" shall have the same meaning as assigned to it
under the Energy Performance of Buildings Regulations; 
2[S.L. 623.07 ENERGY EFFICIENCY
"cogeneration" means the simu ltaneous 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 Europea n 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 conclu sion of the Agreement between
the Government of the United States of America and the EuropeanCommunity on the coordination of energy-efficiency labellingprogrammes for office equipment;
"Decision 2008/952/EC" means Commission Decision of the
19th November 2008 establishing detailed guidelines for theimplementation 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 Regu lations, and the Natural Gas M arket
Regulations, respectively;
S.L. 623. 01."district heating or district cooling” shall have the same
meaning as under the Energy Perfo rmance of Buildings Regulation s;
"economically justifiable demand" means demand that does not
exceed the needs for heating or c ooling and which would otherwi se be
satisfied at market conditions by energy generation processes o ther
than cogeneration;
"efficient district heating and cooling" means a district heati ng
or cooling system using at least f ifty 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 su ch
energy and heat;
"efficient heating and cooling" means a heating and cooling
option that compared to a baseline scenario reflecting a busine ss as
usual situation measurably reduces the input of primary energy needed
to supply one unit of delivered energy within a relevant systemboundary in a cost-effective way, as assessed in the cost-benef it
analysis referred to in these re gulations, taking into account the energy
required for extraction, conversi on, transport and distribution ;
"efficient individual heating and cooling" means an individual
heating and cooling supply option that compared to efficient di strict
ENERGY EFFICIENCY [S.L. 623.07 3
heating and cooling measurably r educes the input of non-renewab le
primary energy needed to supply one unit of delivered energy wi thin a
relevant system boundary or require s the same input of non-rene wable
primary energy but at a lower cost, taking into account the ene rgy
required for extraction, conversio n, 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 la id down in the First Schedule ;
"energy" means all forms of energy products, combustible fuels,
heat, renewable energy, electricity, or any other form of energ y, as
defined in Regulation (EC) No 1099/2008 of the European Parliam ent
and of the Council of 22 Oct ober 2008 on energy statistics;
"energy audit" means a systematic  procedure to obtain adequate
knowledge of the existing energy consumption profile of a build ing or
group of buildings, an industrial or commercial operation orinstallation or a private or public service, to identify and qu antify cost-
effective energy savings opportun ities, and report the findings ;
"energy distributor" means a natu ral or legal person, including  a
distribution system operator, responsible for transporting ener gy with a
view to its delivery to final customers or to distribution stat ions that
sell energy to final customers;
"energy efficiency" means a ratio between an output of
performance, service, goods or en ergy, and an input of energy;
"energy efficiency improvement" means an increase in energy
efficiency as a result of technological, behavioural and, or ec onomic
changes;
"energy management system" m eans a set of interrelated or
interacting elements of a plan which sets an energy efficiencyobjective and a strategy to  achieve that objective;
"energy performance contracting" means a contractual
arrangement between the beneficiary and the provider of an ener gy
efficiency improvement measure, verified and monitored during t he
whole term of the contract, where investments (work, supply orservice) in that measure are paid for in relation to a contract ually
agreed level of energy efficiency improvement or other agreed e nergy
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 improvementmeasures, whilst ensuring normalisation for external conditions  t h a t
affect energy consumption;
"energy service" means the physical benefit, utility or good
4[S.L. 623.07 ENERGY EFFICIENCY
derived from a combination of energy with energy efficient tech nology
o r  w i t h  a c t i o n ,  w h i c h  m a y  i n c l u d e  the operations, maintenance a nd
control necessary to deliver the service, which is delivered on  the basis
o f  a  c o n t r a c t  a n d  i n  n o r m a l  c i r c u m s t a n c e s  h a s  p r o v e n  t o  r e s u l t  in
verifiable and measurable or estimable energy efficiency improv ement
or primary energy savings;
"energy service provider" means a natural or legal person who
delivers energy services or othe r energy efficiency improvement
measures in a final custom er's facility or premises;
"entrusted party" means a legal entity with delegated power
from Government or another public body to develop, manage oroperate a financing scheme on behalf of Government or other pub lic
body;
"European standard" means a sta ndard adopted by the European
Committee for Standardisation, the European Committee for Elect ro-
technical Standardisation or the European TelecommunicationsStandards Institute and made available for public use;
"European Union" or "Union" means the European Union as
referred to in the Treaty;
"final customer" means a natural or legal person who purchases
energy based on a direct, indivi dual contract with an energy su pplier;
"final user" for the purposes of regulation 16 and Part II of t he
Seventh Schedule, means an occup ant of an individual building o r an
individual unit of a multi-apartment or multi-purpose building where
such unit is supplied with heating, cooling or domestic hot wat er from
a central source and where such occupant has no direct or indiv idual
contract with the energy supplier, as well as any final custome r
purchasing heating, cooling or d omestic 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 exten ds
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 monitor ing of
energy or carbon taxation, financial schemes and instruments, f iscal
ENERGY EFFICIENCY [S.L. 623.07 5
incentives, standards and norms,  energy labelling schemes, trai ning or
education;
"individual action" means an action that leads to verifiable, a nd
measurable or estimable, energy efficiency improvements and isundertaken as a result of a policy measure;
"International standard" means a standard adopted by the
International Standardisation Or ganisation and made available t o the
public;
"Malta" has the same meaning as i s assigned to it by article 12 4
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 re sponsible for the Regulator for
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 energ y
efficiency targets required by sub-regulation (1) of regulation  3  a n d
towards the implementati on of these regulations;
"obligated party" means the energy distributor or retail energy
sales company that is bound by the national energy efficiencyobligation schemes refe rred 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 h as
committed itself to reach certain objectives under a voluntaryagreement, or is cove red by a national regul atory policy instru ment;
"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, volunta ry
or information provision instrume nt that has been formally esta blished
6[S.L. 623.07 ENERGY EFFICIENCY
and implemented to create a suppo rtive framework, requirement o r
incentive for market actors to provide and purchase energy serv ices
and to undertake other energy ef ficiency improvement measures;
"power to heat ratio" means the ratio between electricity from
cogeneration and useful heat wh en operating in full cogeneratio n 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 1 1th
May 2011 setting emission performance standards for new lightcommercial vehicles as part of the Union’s integrated approach to
reduce CO
2 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 2 3
April 2009 setting emission perform ance standards for new passe nger
cars as part of the Community’s integrated approach to reduce C O2
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  i n
electricity and repealing Re gulation (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 ef ficiency
and other essential parameters;
"Regulation (EU) 2018/1999" means Regulation (EU) 2018/
1999 of the European Parliament and of the Council of the 11December 2018 on the Governance of the Energy Union and ClimateAction, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament a nd 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 a nd of the Council, Council Direc tives
2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No525/2013 of the European Par liament 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;
ENERGY EFFICIENCY [S.L. 623.07 7
"small and medium-sized enter prises" means enterprises as
defined in Title I of the Annex to Commission Recommendation 20 03/
361 of the 6th May 2003 concerning  the definition of micro, sma ll and
medium-sized enterprises. The category of micro, small and medi um-
sized enterprises (SMEs) is made up of enterprises which employfewer than two hundred and fifty (250) persons and which have a n
annual turnover not exceeding fifty million euro (€50, 000, 000 ), and,
or an annual balance sheet tota l not exceeding forty-three mill ion euro
(€43, 000, 000);
"small scale cogeneration unit" means a cogeneration unit with
installed capacity below 1MWe;
"smart metering system" means an electronic system that can
measure energy consumption, adding more information than aconventional meter, and can transmit and receive data using a f orm of
electronic communication;
"substantial refurbishment" mea ns a refurbishment whose cost
exceeds 50% of the investment c ost 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 indoo r
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 f inal
energy consumption, primary or final energy savings, or energyintensity. In notifying these targ e t s  t o  t h e  C o m m i s s i o n ,  t h e  M i nister
shall also express them in terms of an absolute level of primar y energy
consumption and final energy consumption in 2020 and shall expl ain
how, and on the basis of which data, this has been calculated. When
setting these targets, the Min ister 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 than1078 Mtoe of final energy;
(b) the measures provided fo r 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
8[S.L. 623.07 ENERGY EFFICIENCY
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 affe cting
primary energy consumption, such as remaining cost-effective en ergy-
saving potential, GDP evolution and forecast, changes of energyimports and exports, development of all sources of renewable en ergies,
nuclear energy, carbon capture and storage (CCS), and early act ion.
(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 a nd 6 of
Regulation (EU) 2018/1999. When setting this contribution, theMinister shall take into account that the Union's 2030 energyconsumption has to be no more than 1,273 Mtoe of primary energyand, or no more than 956 Mtoe of final energy.
(4) The contribution set accord ing 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 pu blic and
private shall be established in line with the provisions of reg ulation 8A
of the Energy Performance o f Buildings Regulations. 
(2) A first version of the long-term strategy for mobilising
investment in the renovation of the national stock of residenti al and
commercial buildings, both public and private, shall be publish ed
by 30th April 2014. An updated version of the first version of this
strategy shall be published by the Building and ConstructionAuthority every three (3) years,  which are to be reckoned as fr om
the date of the publication of such first version. The updatedversions are also to be submitted by the Building and Construct ion
Authority to the Minister for inclusion in Malta’s integrated n ational
energy and climate plans required by Regulation (EU) 2018/1999.
Requirements as to 
Government buildings, etc.
S.L. 623. 01.5. (1) (a) Without prejudice to regulation 8 of the
Energy Performance of Buildings Regulations, the Building andConstruction Authority shall take cost-effective measures, incl uding
deep renovations and measures for behavioural change of occupan ts,
to achieve by 2020 an amount of energy savings in eligible buil dings
owned and occupied by Government which is at least equivalent t o
that required by paragraph 1 of A rticle 5 of Directive 2012/27/ EU,
which amount shall be reported to  the Minister on an annual bas is.
ENERGY EFFICIENCY [S.L. 623.07 9
(b) The Building and Construction Authority 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 t he
energy consumption of reference central Government buildings be fore
and after renovation and accordi ng to estimates of the surface of their
stock. The categories of reference central Government buildings  shall
be representative of the s tock of such buildings.
(c) The Minister shall notify to the Commission the
measures that are planned to be adopted and showing how they wo uld
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 and Construction Authority in collabor ation
with the Lands Authority hall es tablish and make publicly avail able 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 m
2; and
(b) the energy performance of each building or
relevant energy data.
(3) The Building and Construction Authority shall
encourage public bodies, including at regional and local level,  a n d
social-housing bodies governed by public law, with due regard f or
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, containingspecific energy saving and efficiency objectives and actions,with a view to following the exemplary role of Governmentbuildings laid down in sub-regulations (1) and (2);
(b) put in place an energy management system,
including energy audits, as part of the implementation oftheir plan;
(c) use, where appropriate, energy service companies,
and energy performance contracting to finance renovations andimplement plans to maintain or improve energy efficiency inthe long term.
Purchases by 
contracting 
authorities to be 
cost effective.6. (1) Contracting authorities shall only purchase
products, services and buildings with high-energy efficiencyperformance, insofar as this is consistent with cost-effectiven ess,
economical feasibility, wider sustainability, technical suitabi lity, as
10[S.L. 623.07 ENERGY EFFICIENCY
well as sufficient competition, as referred to in the Third Sch edule.
The aforementioned obligation shall apply to contracts for thepurchase of products, services and buildings by public bodies i n so far
as these contracts have a value equal to or greater than the th resholds
laid down in Article 7 of Di rective 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 do es not
cause any conflict with the nature and primary aim of the activ ities of
the armed forces and with the exception of military equipment a s
defined in the Public Procurement of Contracting Authorities orEntities in the fields of Defen ce and Security Regulations.
(2) Public bodies shall be encouraged by the Minister,
including at local council level, with due regard for their res pective
competences and administrative set-up, to follow the exemplary role
of Government departments to pur chase only products, services a nd
buildings with high-energy efficiency performance. Public bodie s shall
also be encouraged when tendering service contracts with signif icant
energy content, to assess the possibility of concluding long te rm
energy performance contracts that  provide long-term energy savi ngs.
(3) Without prejudice to sub-regulation (1), when purchasing
a product package covered as a w hole by a delegated act adopted  under
Directive 2010/30 EU, the aggregate energy efficiency shall tak e
priority over the energy efficiency of individual products with in that
package, by purchasing the product package that complies with t he
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 fiv e per cent (1. 5%) of annual
energy sales to final customers by volume, averaged over them o s t  r e c e n t  t h r e e  ( 3 )  - y e a r  p e r i o d  p r i o r  t o  1
st January 2013.
Sales of energy, by volume, used in transport may be excluded,in whole or in part, fro m this calculation; and
(b) new savings each year from 1
st January 2021 to
31st December 2030 equivalent to zero point two four per cent
(0.24%) of annual final energy consumption, averaged over themost recent three (3)-yea r period prior to the 1
st 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 action s that
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) y ear
ENERGY EFFICIENCY [S.L. 623.07 11
periods after 2030, unless reviews by the Commission by 2027 an d
every ten (10) years thereafter conclude that this is not neces sary to
achieve the Union’s long-term en ergy and climate targets for 20 50. 
(4) The Minister shall decide how the calculated quantity of
new savings shall be phased over t he periods referred to in par agraphs
(a) and (b) of sub-regulation (1),  p r o v i d e d  t h a t  t h e  r e q u i r e d  t otal
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-regulati on (1) is
achieved, the required amount of energy savings may be calculat ed 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 overthe most recent three-year period prior to 1
st 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 s hall 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 nolower than that required under pa ragraph (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, subj ect 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 2014and 2015, one point two five per cent (1.25%) in 2016 and2017, and one point five per cent (1.5%) in 2018, 2019 and2020;
S.L. 423. 50.(b) exclude from the calculation all or part of the
sales of energy used, by volume, with respect to the obligationperiod referred to in paragraph (a) of sub-regulation (1), or f inal
energy consumed, with respect to the obligation period referredto in paragraph (b) of that sub-regulation, by industrialactivities listed in Schedule 1 to the European UnionGreenhouse Gas Emissions Tra ding System for Stationary
12[S.L. 623.07 ENERGY EFFICIENCY
Installations Regulations;
(c) count towards the amount of required energy
savings, energy savings achieved in the energy transformation,distribution and transmission sectors, including efficient dist rict
heating and cooling infrastructure, as a result of implementingthe requirements set out in sub-regulations (5) and (6)(b) ofregulation 21 and sub-regulations (1) to (6) and (10) ofregulation 22. The Commission shall be informed aboutintended policy measures under this paragraph for the periodfrom 1
st January 2021 to 31st D e c e m b e r  2 0 3 0  a s  p a r t  o f  t h e
integrated national energy and climate plan. The impact ofthese measures shall be calculate d 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 31
st December 2008 that continue to have
an impact in 2020 with respect to the obligation period referre d
to in paragraph (a) of sub-regulation (1), and beyond 2020 withrespect 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 demonstra ted that those measures result
in individual actions carried out from 1
st 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 amoun t
of energy generated on or in buildings for own use as a result of
policy measures promoting new installations of renewableenergy technologies;
(g) count towards the amount of required energy
savings, energy savings that excee d the energy savings required
for the obligations period from 1
st January 2014 to 31st
December 2020, provided that t hese savings result from
individual actions carried out u nder policy measures referred t o
in regulations 8 and 9, notified in the National EnergyEfficiency Action Plan and reported in the progress report.
(8) The application of the options chosen under sub-
regulation (7) shall be separate for the periods referred to inparagraphs (a) and (b) of sub-regulation (1) and the effect the reof shall
be separately calculated as follows:
(a) for the calculation of the amount of energy
savings required for the obligation period referred to in
ENERGY EFFICIENCY [S.L. 623.07 13
paragraph (a) of sub-regulation (1), paragraphs (a) to (d) of s ub-
regulation (7) may be used. All the options chosen under sub-regulation (7) taken together shall amount to no more thantwenty-five per cent (25%) of the amount of energy savingsreferred 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 use d, provided individual actions
referred to in paragraph (d) of sub-regulation (7) continue tohave a verifiable and measurable impact after 31
st December
2020. All the options chosen under sub-regulation (7) takentogether shall not lead to a reduction of more than thirty-fiveper cent (35%) of the amount of energy savings calculated inaccordance with sub-regulations (5) and (6):
Provided that regardless of whether energy used in
transport is excluded, in whole or in part, from the calculatio n
baseline, or whether any of the options listed in sub-regulatio n (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 d uring
the obligation period from 1
st January 2021 to 31st December 2030
shall not be lower than the amount resulting from the applicati on of the
annual savings rate referred to i n paragraph (b) of sub-regulat ion (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 des cribed in
the integrated national energy and climate plan, in accordance with
Annex III to Regulation (EU) 2018/1999, which plan shall includ e, if
relevant, an explanation of how the annual savings rate and thecalculation baseline were established, and how and to what exte nt the
options referred to in sub-re gulation (7) we re applied. 
(10) Energy savings achieved after 31
st December 2020 shall
not count towards the amount of required energy savings for the  period
from 1st January 2014 to 31st December 2020.
(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-regulatio n (1) the
energy savings obtained in any given year after 2010 and before  the
obligation period referred to in paragraph (a) of sub-regulatio n (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
14[S.L. 623.07 ENERGY EFFICIENCY
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 sha ll 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 effici ency
obligation scheme as laid down in regulation 8, or through theadoption of alternative policy measures, as laid down in regula tion 9,
provided that an energy efficiency obligation scheme may becombined with alterna tive policy measures.
(14) The need to alleviate energy poverty shall be taken into
account in the design of policy me asures aimed at the fulfillin g of
energy savings obligations laid down in sub-regulation (1). A s hare of
energy efficiency measures under any national energy efficiencyobligation scheme, alternative po licy measures or programmes or
measures financed under the Energy Efficiency National Fund isrequired, to the extent appropriate, to be implemented as a pri ority
among vulnerable households, including those affected by energypoverty and, where appropr iate, in social housing.
(15) Information about the outcome of measures to alleviate
energy poverty as laid down in these regulations shall be inclu ded in
the integrated national energy and climate progress reports inaccordance with Regula tion (EU) 2018/2000. 
(16) The Minister shall demonstrate that where there is an
overlap in the impact of policy m easures 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 ach ieved by
way of an energy efficiency obligation scheme, the Minister sha ll
ensure that a framework is in pl ace 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 sa vings
requirement as set out in sub-re gulation (1) of regulation 7: 
 Provided that where applicab le, the Minister may decide
that obligated parties fulfil those savings, in whole or in par t, as a
ENERGY EFFICIENCY [S.L. 623.07 15
contribution to the Energy Efficiency National Fund in accordan ce
with sub-regulation (4) of regulation 27. 
(2) The Minister shall designate, on the basis of objective
and non-discriminatory criteria, obligated parties among energydistributors, retail energy sales companies and transport fueldistributors or transport fuel retailers operating in Malta. Th e
amount of energy savings needed to fulfil the obligation shall be
achieved by the obligated parties among final customers, design ated
by the Minister, independently of the calculation made pursuant  t o
sub-regulation(1) of regulation 7 or, if the Minister so decide s, through
certified savings stemming from other parties as described inparagraph (a) of s ub-regulation (5). 
The Regulator shall put in place new authorisation conditions,
or additional authorisations conditions to existing authorisati ons,
issued under the Act or subsidiary legislation issued thereunde r,
requiring an authorised provider to comply with any energy effi ciency
obligation schemes established by the Minister, when such autho rised
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 comp anies do not
create any barriers that impede consumers from switching from o ne
supplier to another. 
(4) The Minister shall express the amount of energy savings
required of each obligated party in terms of either final or pr imary
energy consumption. The method chosen to express the amount ofenergy savings required shall also be used to calculate the sav ings
claimed by the obligated parties. The conversion factors set ou t 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 energyservice providers or other third parties, including whenobligated parties promote measures through other state-approved bodies or through public authorities that may involveformal partnerships and may be in combination with othersources of finance, provided that where this is permitted, it s hall
be ensured that the certification of energy savings follows anapproval process that is clear, transparent, and open to allmarket participants, and that aims to minimise the costs ofcertification; 
(b) allow obligated parties to count savings obtained
in a given year as if they had instead been obtained in any of the
16[S.L. 623.07 ENERGY EFFICIENCY
four previous or three following years, provided that this is n ot
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 t o such
certified savings. The Regulator may share the audited data wit h the
Minister.
(7) The Regulator shall put i n place measurement, control
and verification systems under which documented verification iscarried out on at least a statistically significant proportion and
representative sample of the energy efficiency improvement meas ures
put in place by the obligated parties. The measurement, control  a n d
verification shall be carried out independently of the obligate d parties.
The Regulator may share any information resulting from suchmeasurement, control and verifica tion systems with the Minister . 
(8) The Regulator shall, on an annual basis, publish the
energy savings achieved by each obligated party, or each sub-ca tegory
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 cost s of
energy efficiency obligation schemes on the competitiveness ofenergy-intensive industries expos ed to international competitio n.
 Alternative policy 
measures.9.  (1) Where the Minister opts to fulfil the obligations to
achieve the savings required under sub-regulation (1) of regula tion 7
by way of alternative policy measures, the Minister shall ensur e,
without prejudice to sub-regulations (7) and (8) of regulation 7, that
the energy savings required under sub-regulation (1) of regulat ion 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 verificati on
systems under which documented verification is carried out on a t least
a statistically significant proportion and representative sampl e of the
energy efficiency improvement measures put in place by theparticipating or entrusted partie s. The measurement, control an d
verification shall be carried out independently of the particip ating 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-ef fective
and carried out in an independent manner by qualified and, oraccredited experts accordi ng to qualification criteria.
(2) The energy audits referred to in sub-regulation (1) may
be carried out by in-house e xperts or energy auditors:
ENERGY EFFICIENCY [S.L. 623.07 17
Provided that the Minister shall have put in place a
scheme to assure and check their quality, including, if appropr iate, an
annual random selection of at leas t a statistically significant
percentage of all the ener gy audits they carry out.
(3) For the purpose of guaranteeing the high quality of the
energy audits and energy management systems, the Minister shallestablish transparent and non-discriminatory minimum criteria f or
energy audits based on the princi ples set out in the Sixth Sche dule.
(4) Energy audits shall not include clauses preventing the
findings of the audit from being transferred to any qualified a nd, or
accredited energy service provider, on condition that the custo mer
does not object. Notwithstanding t he foregoing, the findings of  t h e
audit shall promptly be submitted to the Minister upon beingdemanded 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, an d the
subsequent implementation of the  recommendations from these aud its.
The Minister shall also develop programmes to raise awareness a mong
households about the benefits of such audits through appropriat e
advice services.
(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 volunt ary
agreements, to cover costs of an energy audit and of theimplementation of highly cost-effective recommendations from th e
energy audits, if the propose d measures are implemented.
(7) The Minister shall also develop programmes to raise
awareness among households about the benefits of the audits ref erred
to in sub-regulation (6) through appropriate advice services. T he
Minister shall encourage training programmes for the qualificat ion of
energy auditors in order to fac ilitate sufficient availability of experts.
(8) The Minister shall bring to the attention of small and
medium-sized enterprises, including through their respectiverepresentative intermediary organ isations, concrete examples of  how
energy management systems c ould help their business.
(9) Enterprises that are not  SMEs shall commission an
energy audit carried out in an independent and cost-effective m anner
by qualified and, or accredited experts or implemented and supe rvised
by independent authorities under national legislation by the 5
th
December 2015 and at least every four (4) years from the date o f the
previous energy audit.
(10) Energy audits shall be considered as fulfilling the
18[S.L. 623.07 ENERGY EFFICIENCY
requirements of sub-regulation (9) when they are carried out in  a n
independent manner, on the basi s of minimum criteria based on t he
principles set out in the Sixth Schedule, and implemented undervoluntary agreements conclude d between organisations of
stakeholders and an appointed bod y and supervised by the Minist er, or
other bodies to which the Minister has delegated the responsibi lity
concerned. Access of market participants offering energy servic es
shall be based on transparent an d non-discriminatory criteria.
(11) Enterprises, which are not SMEs, implementing an
energy or environmental management system, certified by anindependent body according to the relevant European or Internat ional
Standards, shall be exempted from the requirements of sub-regul ation
(9):
Provided that the management system concerned
includes an energy audit on the ba sis of the minimum criteria b ased 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 economi c
feasibility of connection to an existing or planned district he ating or
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 ofrecommendations from energy a udits and similar measures.
Metering for gas 
and electricity.11. ( 1 ) F i n a l  c u s t o m e r s  f o r  e l e c t r i c i t y  a n d  n a t u r a l  g a s
shall be provided by their suppliers with competitively pricedindividual meters that accurately reflect the final customer’s actual
energy consumption and that provi de information on the actual t ime 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 r eplaced, such a competitively
priced individual meter shall always be provided, unless this i s
technically impossible or not cos t-effective in relation to the  estimated
potential savings in the long term.
S.L. 623. 01.(3) When a new connection is made in a new building or a
building undergoes major renovations, as set out in the EnergyPerformance of Buildings Regulations, such competitively pricedindividual 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 electr icity
are rolled out in accordance with the Electricity Market Regula tions,
and the Natural Gas Market Regulations:
ENERGY EFFICIENCY [S.L. 623.07 19
 (a)  metering systems shall provide to final customers
information on actual time of use. The objectives of energyefficiency and benefits for final customers shall be fully take n
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 meteror meters can account for electricity put into the grid from th e
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
t o  a  t h i r d  p a r t y  a c t i n g  o n  b e h a l f  o f  t h e  f i n a l  c u s t o m e r  i n  a neasily 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, notab ly
about their full potential with regard to meter readingmanagement 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 suppl iers
with competitively priced individual meters that accurately ref lect the
final customer’s actual energy consumption.
 (2) Where heating, cooling or d omestic hot water is supplied
to a building from a central source that serves multiple buildi ngs, or
from a district heating or district cooling system, a meter sha ll 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 f rom a
district heating or district cooling system, the supplier shall  install
individual meters to measure th e consumption of heating, coolin g or
domestic hot water for each building unit, where technically fe asible
and cost effective in terms of being proportionate in relation to the
potential energy savings:
Provided that where the supp lier shows to the Building
and Construction Authority’s satisfaction that the use of indiv idual
meters is not technically feasible  or where it is not cost-effi cient to
measure heat consumption in each building unit, the supplier sh all use
individual heat cost allocators to measure heat consumption at each
radiator unless it is shown by th e supplier that the installati on of heat
cost allocators would not be cost-efficient:
20[S.L. 623.07 ENERGY EFFICIENCY
Provided further that in those cases, alternative cost-
efficient methods of heat consumption measurement may beconsidered. 
 (2) The general criteria, metho dologies and, or procedures to
determine technical non-feasibility  and non-cost effectiveness shall be
clearly set out and published by the Building and ConstructionAuthority. 
 (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-purposebuildings that are equipped with a central heating source for d omestic
hot water or are supplied from  district heating systems. 
 (4) Where in the assessment of the Building and
Construction Authority, multi-apartment or multi-purpose buildi ngs
supplied from district heating or district cooling, or building s with
own common heating or cooling become prevalent, the Regulator s hall
put in place transparent, publicly available national rules on the
allocation of the cost of heating, cooling and domestic hot wat er
consumption in such buildings to ensure transparency and accura cy of
accounting for individual consumption:
Provided that when the Building and Construction
Authority determines that multi-apartment or multi-purpose buil dings
supplied from district heating or district cooling, or building s with
own common heating or cooling have  become prevalent, the Regula tor
shall be officially informed of s uch a decision and the Buildin g and
Construction Authority shall provide to the Regulator all the n ecessary
information and data relevant to  the reaching of such a decisio n. 
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 feasibil ity and
cost effectiveness set out in sub-regulations (1) and (2) of re gulation
13 shall continue to apply. 
 (2) Meters and heat cost allocators which are not remotely
readable but which have already been installed, shall be render ed by
the supplier remotely readable or replaced with remotely readab le
devices by 1st January 2027, provided that this shall not be required if
it is shown by the supplier that t his is not cost-efficient. 
Billing info rmation 
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 Natur al Gas
Market Regulations, by not later than the 31st December 2014, b illing
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 eco nomically
justified.
ENERGY EFFICIENCY [S.L. 623.07 21
S.L. 545. 13.
S.L. 545. 12.(2) Meters installed in accordance with the Electricity
Market Regulations and the Natural Gas Market Regulations shallenable accurate billing information based on actual consumption . Final
customers shall have the possib ility of easy access to compleme ntary
information on historical consumption allowing detailed self-ch ecks.
Complementary information on hist orical consumption shall inclu de:
(a) cumulative data for at least the three (3) previous
years or the period since the start of the supply contract if t his is
shorter. The data shall correspond with the intervals for whichfrequent billing information has been produced; and
(b) detailed data according to the time of use for any
day, week, month and year. These data shall be made availableto the final customer via internet or the meter interface for t he
period of at least twenty-four (24) previous months or theperiod since the start of the su pply contract if this is shorte r.
(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 isavailable, on the request of the final customer make suchinformation available to an energy service provider designatedby 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 explana tion of how their bil l
was derived, especially where bills are not based on actualconsumption;
(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 SeventhSchedule;
(d) on request of the final customer, not consider the
information contained in these bills to constitute a request fo r
payment. Suppliers of energy sources shall offer flexiblearrangements for actual payments;
(e) provide to consumers on demand, information and
estimates for energy costs in a timely manner and in an easilyunderstandable 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 consumptioninformation is reliable, accurat e and based on actual consumpti on or
heat cost allocator readings, in accordance with items 1 and 2 of Part II
22[S.L. 623.07 ENERGY EFFICIENCY
of the Seventh Schedule for all final users, namely for natural  or legal
persons purchasing heating, coo l i n g  o r  d o m e s t i c  h o t  w a t e r  f o r  t heir
own end-use, or natural or legal persons occupying an individua l
building or a unit in a multi-apartment or multi-purpose buildi ng
supplied with heating, cooling or domestic hot water from a cen tral
source who has no direct or individual contract with the energysupplier:
Provided that, save in the case of sub-metered
consumption based on heat cost allocators under regulation 13 s uch
obligation may be fulfilled by a system of regular self-reading  by the
final customer or final user whe reby they communicate readings from
their meter. Only where the final customer or final user has no t
provided a meter reading for a given billing interval shall bil ling be
based on estimated consum ption or a flat rate.
 (2) The supplier shall:
(a) ensure that, if information on the energy billing
and historical consumption or h eat 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 fin al
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 withitem 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 const itute 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 consumptio n 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  o f
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
ENERGY EFFICIENCY [S.L. 623.07 23
and cooling in multi-apartment and multi-purpose buildings purs uant
to regulation 13 shall be carried out on a non-profit basis. Co sts
resulting from the assignment of this task to a third party, su ch as a
service provider or the local ene rgy supplier, covering the mea suring,
allocation and accounting for actu al individual consumption in such
buildings, may be passed on to the final customers to the exten t that
such costs are reasonable.
(3) In order to ensure reasonable costs for sub-metering
services as referred to in sub-re gulation (2), the Minister may
stimulate competition in that serv ice sector through the introd uction of
appropriate measures, which may include recommending or otherwi se
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 ener gy
customers, including domestic cus tomers. These measures may be part
of a national strategy.
(2) For the purposes of sub-re gulation (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 smartmeters 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 an d, or
24[S.L. 623.07 ENERGY EFFICIENCY
six hundred euro (€600) for each day of non-compliance, from th e date
of the decision given by the Regulator upon any person who infr inges
any provision of these regulations or who fails to comply with any
directive or decision given by the Regulator in ensuring compli ance
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 theapplication of high-efficiency cogeneration and efficient distr ict
heating and cooling, containing the information set out in the Eighth
Schedule to these regulations. The Minister shall notify suchcomprehensive assessment to the Commission by the 31
st December
2015. If an equivalent assessment has already been carried out,  t h e
Minister shall notify an equival ent assessment to the Commissio n.
(2) The comprehensive assessment shall take full account of
the analysis of the national potentials for high-efficiency cog eneration
carried out under Directive 2004/8/EC. The assessment shall beupdated and notified to the Commis sion every five (5) years, su bject to
a request by the Commission at least one year before the due da te.
(3) The Minister shall adopt policies which encourage that
the potential of using efficient heating and cooling systems, i n
particular those using high efficiency cogeneration, is duly ta ken into
account at local and regional leve ls. Account shall be taken of  t h e
potential for developing local a nd regional heat markets.
S.L. 549. 61.(4) For the purpose of the assessment referred to in sub-
regulation (1), the Minister sha ll carry out a cost-benefit ana lysis
covering the territory based on climate conditions, economicfeasibility and technical suitability in accordance with the Ei ghth
Schedule The cost-benefit analysis shall be capable of facilita ting the
identification of the most resource and cost-efficient solution s to
meeting heating and cooling requi rements. The cost-benefit anal ysis
may be part of an environmental assessment, under the StrategicEnvironmental Assessment Re gulations for the assessment.
(5) Where the assessments refe rred to in sub-regulation (1)
and the analysis mentioned in sub-regulation (4) identify a pot ential
for the application of high-efficiency cogeneration and, or eff icient
district heating and cooling whose benefits exceed the costs, t he
Minister shall take adequate measures for efficient district he ating and
cooling infrastructure to be developed and, or to accommodate t he
development of high-efficiency cogeneration and the use of heat ing
and cooling from waste heat and renewable energy sources inaccordance with sub-regulations (1), (6) and (10). Where theassessment referred to in sub-re gulation (1) and the analysis r eferred to
in sub-regulation (4) do not identify a potential whose benefit s exceed
the costs, including the administrative costs of carrying out t he cost-
benefit analysis referred to in sub-regulation (6), installatio ns shall be
exempted from the requirements laid down in those sub-regulatio ns.
ENERGY EFFICIENCY [S.L. 623.07 25
(6) A cost-benefit analysis i n accordance with the Ninth
Schedule shall be carried out by the project promoter when, aft er the
5th June 2014:
(a) a new thermal electricity generation installation
with a total thermal input exceeding 20 MW is planned, toassess the cost and be nefits of providing for the operation of the
installation as high-efficien cy cogeneration installation;
(b) an existing thermal electricity generation
installation with a total thermal input exceeding 20 MW issubstantially refurbished, to assess the cost and benefits ofconverting it to high efficiency cogeneration;
(c) an industrial installation with a total thermal input
exceeding 20 MW generating waste heat at a useful temperaturelevel is planned or substantiall y refurbished, to assess the co st
and benefits of utilising the waste heat to satisfy economicall y
justified demand, including through cogeneration, and of theconnection of this installation to a district heating and cooli ng
network;
(d) a new district heating and cooling network is
planned or in an existing district heating or cooling network anew energy production installation with a total thermal inputexceeding 20 MW is planned or an existing such installation isto be substantially refurbished, to assess the cost and benefit s of
utilising the waste heat from ne arby 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 beinggeologically stored as provided fo r in the Geological Storage o f
Carbon Dioxide Regulations shall not be considered as refurbish ment
for the purpose of sub-regulation (6)(b), (c) and (d). The cost -benefit
analysis referred to in sub-regul ation (6)(c) and (d) shall be carried out
in co-operation with the companies responsible for the operatio n 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 thousandfive hundred (1,500) operating hours per year as a rollingaverage over a period of five (5) years, based on a verificatio n
procedure established by the Regulator ensuring that thisexemption 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
26[S.L. 623.07 ENERGY EFFICIENCY
of Carbon Dioxide Regulations.
(9) The Minister may also lay d own thresholds, expressed in
terms of the amount of available useful waste heat, the demand for
heat or the distances between industrial installations and dist rict
heating networks, for exempting individual installations from t he
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 exemp tions 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 equiv alent permit criteria, shall: 
(a) take into account the outcome of the
comprehensive assessments refe rred 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 referr ed to in
sub-regulation (10), to implement  options whose benefits exceed  their
costs, if there are imperative reasons of law, ownership or fin ance for
so doing. In these cases the Minister shall submit a motivatednotification 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 Indus trial Emissions (Large Combus tion
Plants) Regulations without prejudice to the requirements of th ose
regulations.
(13) On the basis of the harmonised efficiency reference
values referred to in paragrap h (f) of the Second Schedule, the
Regulator shall ensure that the origin of electricity produced from
high-efficiency cogeneration can be guaranteed according to obj ective,
transparent and non-discriminatory criteria laid down by the Mi nister.
The Regulator shall ensure that this guarantee of origin compli es with
the requirements and contains at least the information specifie d in the
Tenth Schedule.
The Regulator shall mutually recognise guarantees of origin
from other Member States, exclusively as proof of the informati on
referred to in this sub-regulati on. 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 an d non-
ENERGY EFFICIENCY [S.L. 623.07 27
discriminatory criteria. The Minister shall notify the Commissi on of
such refusal and its justification.
(14) Any available support for cogeneration shall be subject
to the electricity produced originating from high-efficiencycogeneration and the waste heat being effectively used to achie ve
primary energy savings. Public support to cogeneration and dist rict
heating generation and networks shall be subject to State aid r ules,
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 th e
Electricity Market Regulations and the Natural Gas MarketRegulations regarding its decisions on the operation of the gas  a n d
electricity infrastructure. The Regulator shall in particular t hrough the
development of network tariffs a nd regulations, within the fram ework
of the Electricity Market Regul ations and taking into account t he costs
and benefits of each measure, pr ovide incentives for grid opera tors to
make available system services to network users permitting them  t o
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 im pact
the security of the system. For electricity, network regulation  a n d
network tariffs shall fulfil the criteria in the Eleventh Sched ule, taking
into account guidelines and codes developed pursuant to Regulat ion
714/2009.
(2) By the 30
th June 2015, distribution system operators
shall ensure that:
(a) an assessment is undertaken of the energy
efficiency potentials of their gas and electricity infrastructu re,
notably regarding transmission,  distribution, load management
and interoperability, and connection to energy generatinginstallations, including access possibilities for micro energygenerators;
(b) concrete measures and investments are identified
for the introduction of cost-effective energy efficiencyimprovements in the network infrastructure, with a timetablefor their introduction.
(3) The Regulator may permit components of schemes and
tariff structures with a social aim for net-bound energy transm ission
and distribution:
Provided that any disruptive effects on the transmission
and distribution system are kep t to the minimum necessary and a re not
disproportionate to the social aim.
28[S.L. 623.07 ENERGY EFFICIENCY
S.L. 545. 13.(4) The distribution system operator, subject to the approval
of the Regulator, shall remove those incentives in transmission  a n d
distribution tariffs that are detrimental to the overall effici ency
(including energy efficiency) of the generation, transmission,distribution and supply of electricity or those that might hamp er
participation of demand response, in balancing markets and anci llary
services procurement. Network operators shall be incentivised t o
improve efficiency in infrastructure design and operation, and,  within
the framework of the Electricity Market Regulations, that tarif fs allow
suppliers to improve consumer par ticipation in system efficienc y,
including demand response depend ing on national circumstances.
(5) Transmission system operators and distribution system
operators shall comply with the requirements set out in the Twe lfth
Schedule. The transmission system operator and the distributionsystem operator shall facilitate the connection to the grid sys tem of
electricity produced from high-efficiency cogeneration from sma ll
scale and micro cogeneration units. The Regulator shall, whereappropriate, take steps to encour age network operators to adopt  a
simple notification "install and inform" process for the instal lation of
micro cogeneration units to simplify and shorten authorisationprocedures 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 techni cally and
economically feasible with the mode of operation of the high-
efficiency cogeneration installation, high-efficiency cogenerat ion
operators shall offer balancing services and other operational services
at the level of transmission system operator or distribution sy stem
operator. The transmission system operator and the distribution  system
operator shall ensure that such s ervices are part of a services  bidding
process which is transparent, non-discriminatory and open to sc rutiny.
Where appropriate, the transmis sion system operator and the
distribution operator shall encourage high-efficiency cogenerat ion to
be sited close to areas of demand by reducing the connection an d use-
of-system charges.
(7) Producers of electricity from high-efficiency
cogeneration wishing to be connected to the grid may issue a ca ll for
tender for the connection work.
(8) The Regulator shall encour age demand side resources,
such as demand response, to participate alongside supply in who lesale
and retail markets. Subject to technical constraints inherent i n
managing networks, the transmission system operator and thedistribution system operator, in meeting requirements for balan cing
and ancillary services, shall tr eat demand response providers,
including aggregators, in a non-discriminatory manner, on the b asis of
their technical capabilities.
ENERGY EFFICIENCY [S.L. 623.07 29
(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, promo te
demand response’s access to and participation in balancing, res erve
and other system services markets, and the transmission anddistribution system operator shall in close cooperation with de mand
service providers and consumers,  define the technical modalitie s for
participation in those markets on the basis of the technicalrequirements of those markets and the capabilities of demandresponse. Such specifications sha ll include the participation o f
aggregators.
(10) When reporting under Directive 2010/75/EU, and
without prejudice to Article 9(2) of that Directive, the author ity
responsible for reporting under Directive 2010/75/EU shall cons ider
including information on energy efficiency levels of installati ons
undertaking the combustion of fuels with total rated thermal in put of
50 MW or more in the light of the relevant best available techn iques
developed in accordance with Directive 2010/75/EU and Directive2008/1/EC.
The authority responsible for reporting under Directive 2010/
75/EU may encourage operators of installations referred to in t his sub-
regulation undertaking the combustion of fuels with total rated  thermal
input of 50 MW or more to improve their annual average netoperational rates.
Qualification 
schemes to be made available.23. (1) Certification and, or accreditation schemes and, or
equivalent qualification schemes,  including, where necessary, s uitable
training programmes, shall be made available by the 1st January 2015
for providers of energy services, energy audits, energy manager s and
installers of energy-related build ing elements where the nation al level
of technical competence, objec tivity and reliability is insuffi cient.
(2) The Minister shall ensure that the schemes referred to in
sub-regulation (1) provide trans parency to consumers, are relia ble and
contribute to national ener gy efficiency objectives.
(3) The Minister shall make publicly available the
certification and, or accreditatio n schemes or equivalent quali fication
schemes referred to in sub-regula tion (1). The Minister shall t ake
appropriate measures to make consumers aware of the availabilit y of
qualification and, or certifica tion schemes, in accordance with  s u b -
regulation (1) of regulation 25.
Information to be 
provided by relevant 
authorities.24. (1) The Building and Construction Authority, the
Minister and entrusted parties shall provide information on ava ilable
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 en ergy auditors and installers of
30[S.L. 623.07 ENERGY EFFICIENCY
building elements and shall provide information to banks and ot her
financial institutions on possibilities of participating, inclu ding
through the creation of public and, or private partnerships, in  t h e
financing of energy efficiency improvement measures.
(2) The Minister shall establish appropriate conditions for
market operators to provide adequa te and targeted information a nd
advice to energy consumers on energy efficiency.
(3) The Minister, with the participation of stakeholders,
including local and regional authorities, shall promote suitabl e
information, awareness-raising and training initiatives to info rm
citizens of the benefits and prac ticalities of taking energy ef ficiency
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 thi s
market by:
(a) disseminating clear and easily accessible
information on:
(i) available energy service contracts and
clauses that should be included in such contracts toguarantee energy sa vings and final customers’ rights;
(ii) financial instruments, incentives, grants
and loans to support energy e fficiency service projects;
(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 qualifiedand, or certified and their qua lifications and, or certificatio ns in
accordance with regulation 23, or provide an interface whereenergy service providers c an 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 whic h at least include the items
listed in the Thirteenth Schedule;
(ii) providing information on best practices for
energy performance contractin g, 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:
ENERGY EFFICIENCY [S.L. 623.07 31
(a) identifying and publicising the point of contact
where final customers can obtain the information referred to insub-regulation (1);
(b) taking, if necessary, measures to remove the
regulatory and non-regulatory barriers that impede the uptakeof energy performance contracting and other energy efficiencyservice models for the identifi cation and, or implementation of
energy saving measures;
(c) considering putting in place or assigning the role
of an independent mechanism, such as an ombudsman, toensure the efficient handling of complaints and out-of-courtsettlement of disputes arising fr om energy service contracts;
(d) enabling independent market intermediaries to
play a role in stimulating market development on the demandand supply sides.
(3) Energy distributors, distr ibution system operators and
retail energy sales companies sh all refrain from any activities  that may
impede the demand for and deliver y of energy services or other energy
efficiency improvement measures, or hinder the development ofmarkets for energy services or other energy efficiency improvem ent
measures, including foreclosing the market for competitors or a busing
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 n ecessary
take appropriate measures to rem ove regulatory and non-regulato ry
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 ensuringthat these parties are not deterred from making efficiency-improving investments that they would otherwise have made bythe fact that they will not individually obtain the full benefi ts or
by the absence of rules for dividing the costs and benefitsbetween them, including national rules and measures regulating
multi-owner property decision-making processes;
(b) legal and regulatory provisions, and
administrative practices, regarding public purchasing andannual budgeting and accounting, with a view to ensuring thatindividual public bodies are not deterred from makinginvestments in improving energy efficiency and minimisingexpected life-cycle costs and from using energy performancecontracting and other third-party financing mechanisms on along-term contractual basis.
Such measures to remove barriers may include providing
incentives, repealing or amending legal or regulatory provision s, or
32[S.L. 623.07 ENERGY EFFICIENCY
adopting guidelines and interpreta tive communications, or simpl ifying
administrative procedures. These measures may be combined with the
provision of education, training and specific information and t echnical
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 f irst
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 fina ncing
facilities, or use of existing ones, for energy efficiency impr ovement
measures to maximise the benef its of multiple streams of financ ing.
(2) The Minister may set up an Energy Efficiency National
Fund. The purpose of this fund shall be to support national ene rgy
efficiency initiatives.
(3) The obligations set out in sub-regulation (1) of regulation
5 may be fulfilled by annual contributions to the Energy Effici ency
National Fund of an equal amount to the investments required toachieve the obligations.
(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 investme nts
required to achieve their obligations.
(5) Revenues from annual emission allocations under
Decision No 406/2009/EC may be used for the development ofinnovative financing mechanisms to give practical effect to theobjective in regulation 4 of improving the energy performance o f
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 inf luence decision-making;
(b) make optimal use of the possibilities and tools
proposed in the smart finance fo r smart buildings initiative.
*
Conversion 
factors.28. For the purpose of comparison of energy savings and
conversion to a comparable unit, t he conversion factors in the Fourth
Schedule shall apply unless the us e of other conversion factors  can be
justified.
* Smart Finance for Smart Buildings (SFSB) Financial Instrument  https://
ec.europa.eu/info/news/smart-fi nance-smart-buildings-investing- energy-efficiency-
buildings-2018-feb-07_en
ENERGY EFFICIENCY [S.L. 623.07 33
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 fro m high
and low efficiency cogeneration, in accordance with the methodo logy
shown in the First Schedule, in relation to total heat and elec tricity
capacities. The Regulator shall also prepare annual statistics on
cogeneration heat and electricity  capacities and fuels for coge neration,
and on district heating and coo ling production and capacities, in
relation to total heat and electricity capacities. The Regulato r shall
prepare statistics on primary energy savings achieved by applic ation of
cogeneration in accordance with the methodology shown in theSecond 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 oftheir duties in terms of these regulations;
(c) makes a declaration for any of the purposes of
these regulations which is false, misleading or incorrect in an y
material respect,
shall be guilty of an offence against these regulations and sha ll,
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-s even
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 here by 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.
34[S.L. 623.07 ENERGY EFFICIENCY
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 oper ation of
the unit under normal conditions of use. For micro-cogeneration  units
the calculation may be bas ed on certified values.
(a) Electricity production from cogeneration shall be
considered equal to total annual electricity production of theunit measured at the outlet of the main generators.
(i) in cogeneration units of type (b), (d), (e),
(f), (g) and (h) referred to i n Part II with an annual
overall efficiency at a level of at least seventy-five percent (75%), and
(ii) in cogeneration units of type ( a) and ( c)
referred to in Part II with an annual overall efficiency at alevel of at least ei ghty 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) ref erred
to in Part II) or with an annual overall efficiency below thevalue referred to in paragraph (a)(ii) (cogeneration units of t ype
(a) and (c) referred to in Part II) cogeneration is calculatedaccording to the following formula:
E
CHP = HCHP*C
where:
ECHP is the amount of electricity from cogeneration
C is the power to heat ratioH
CHP is the amount of useful heat from cogeneration (calculated
for this purpose as total heat production minus any heat produc ed in
separate boilers or by live steam extraction from the steam gen erator
before the turbine).
The calculation of electricity from cogeneration must be based
on the actual power to heat ratio. If the actual power to heat ratio of a
cogeneration unit is not known, the following default values ma y 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 cog eneration
ENERGY EFFICIENCY [S.L. 623.07 35
electricity is less or equal to t otal 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) referr ed to in Part II,
such default values shall be published and shall be notified to  t h e
Commission.
(c) If a share of the energy content of the fuel input to
the cogeneration process is recovered in chemicals andrecycled, this share can be subtracted from the fuel input befo re
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 whenoperating in cogeneration mode at a lower capacity usingoperational data of the specific unit.
(e) The Regulator may use other reporting periods
than one year for the purpose of the calculations according toparagraphs (a) and (b ) of this Schedule.
Part II. Cogeneration technologie s covered by these regulations
(a) Combined cycle gas turb ine with heat recovery;
(b) Steam backpressure turbine;
(c) Steam condensing extraction turbine;
(d) Gas turbine with heat recovery;(e) Internal combustion engine;
(f) Microturbines;
(g) Stirling engines;(h) Fuel cells;
(i) Steam engines;
(j) Organic Rankine cycles;Type of the unitDefault power to heat ratio, C
C o m b i n e d  c y c l e  g a s  t u r b i n e  w i t h  h e a t
recovery0,95
Steam back pressure turbine 0,45
Steam condensing extraction turbine 0,45Gas turbine with heat recovery 0,55Internal combustion engine 0,75
36[S.L. 623.07 ENERGY EFFICIENCY
(k) Any other type of technology or combination
thereof falling under the definition "cogeneration" laid down i n
regulation 2.
When implementing and applying the general principles for the
calculation of electricity from cogeneration, the Minister shal l use the
detailed Guidelines establis hed by Decision 2008/952/EC.
Second Schedule
(regulations 21(13) and 29(3))
Methodology for determining the ef ficiency of the cogeneration 
process
Values used for calculation of efficiency of cogeneration and
primary energy savings shall be determined on the basis of theexpected or actual operation of the unit under normal condition s 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 calculatedaccording to paragraph (b) of this Schedule of at least tenper cent (10%) compared with the references for separateproduction of heat and electricity;
(ii) production from small scale and micro
cogeneration units providing primary energy savingsmay 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 Sc hedule
shall be calculated on the basi s of the following formula:
Where:

ENERGY EFFICIENCY [S.L. 623.07 37
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 fromcogeneration.
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 divi ded by
the fuel input used to produce the sum of useful heat output an d
electricity from cogeneration. W here a cogeneration unit genera tes
mechanical energy, the annual el ectricity from cogeneration may  b e
increased by an additional element representing the amount ofelectricity which is equivalent to that of mechanical energy. T his
additional element will not create a right to issue guarantees of origin
in accordance with sub-regul ation (13) of regulation 21.
Ref Eη is the efficiency reference value for separate electrici ty
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 bel ow
without using the First Schedule to exclude the non-cogenerated  heat
and electricity parts of the same process. Such a production ca n be
regarded as high-efficiency cogeneration provided it fulfils th e
efficiency criteria in paragraph (a) of this Schedule and, forcogeneration units with an electrical capacity larger than 25 M W, the
overall efficiency is above seventy per cent (70%). However,specification of the quantity o f electricity from cogeneration produced
in such a production, for issuing a guarantee of origin and forstatistical purposes, shall be determined in accordance with th e First
Schedule.
If primary energy savings for a process are calculated using
alternative calculation as above the primary energy savings sha ll be
calculated using the formula in paragraph (b) of this Schedulereplacing: "CHP Hη" with "Hη" and "CHP Eη" with "Eη", where:
Hη shall mean the heat efficiency  of the process, defined as th e
annual heat output divided by the fuel input used to produce th e sum of
heat output and electricity output.
Eη shall mean the electricity efficiency of the process, define d
as the annual electricity output divided by the fuel input used  t o
produce the sum of heat output and electricity output. Where acogeneration unit generates mech anical energy, the annual elect ricity
38[S.L. 623.07 ENERGY EFFICIENCY
from cogeneration maybe increased by an additional element
representing the amount of electricity which is equivalent to t hat of
mechanical energy. This additional element will not create a ri ght to
issue guarantees of origin in accordance with sub-regulation (1 3) of
regulation 21.
(d) The Regulator may use other reporting periods
than one year for the purpose of the calculations according toparagraphs (b) and (c ) of this Schedule.
(e) For micro-cogeneration units the calculation of
primary energy savings may b e 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 climat e
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 parag raph (b)
shall establish the operating efficiency of the separate heat a nd
electricity production that cogene ration is intended to substit ute.
The efficiency reference values shall be calculated according t o
the following principles:
1. For cogeneration units as defined in regulation 2 the
comparison with separate electricity production shall be based on the
principle that the same fuel categories are compared.
2. Each cogeneration unit shall be compared with the best
available and economically justifiable technology for separateproduction of heat and electricity on the market in the year ofconstruction of the cogeneration unit.
3. The efficiency reference values for cogeneration units
older than ten (10) years of age shall be fixed on the referenc e values
of units of ten (10) years of age.
4. The efficiency reference values for separate electricity
production and heat production sh all reflect the climatic diffe rences
between Member States.
ENERGY EFFICIENCY [S.L. 623.07 39
Third Schedule
(regulation 6(1))
Energy efficiency requirements for purchasing products, service s
and buildings by Government
Government when purchasing products, services or buildings,
insofar as this is consistent w ith cost-effectiveness, economic al
feasibility, wider sustainability , technical suitability, as we ll 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 th e
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 underthe Framework for the Setting of Ecodesign Requirements forEnergy-Related Products Regulations, adopted after the entryinto force of these regulations, purchase only products thatcomply with energy efficiency benchmarks specified in thatimplementing measure;
(c) purchase office equipment products covered by
Council Decision 2006/1005/EC that comply with energyefficiency requirements not less demanding than those listed inAnnex C of the Agreement attached to that Decision;
(d) purchase only tyres that comply with the criterion
of having the highest fuel ener gy efficiency class, as defined by
Regulation (EC) No 1222/2009. This requirement shall notprevent public bodies from purchasing tyres with the highestwet grip class or external ro lling 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 servic es
in question, only products that comply with the requirementsreferred to in paragraphs (a) to (d) of this Schedule, whenproviding the services in questi on. This requirement shall appl y
only to new products purchased b y service providers partially
or wholly for the purpose of pr oviding the service in question;
(f) purchase, or make new rental agreements for, only
buildings that comply at least with the minimum energyperformance requirements referre d to in sub-regulation (1) of
regulation 5 unless the pur pose of the purchase is:
(i) deep renovation or demolition;
40[S.L. 623.07 ENERGY EFFICIENCY
(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 becauseof its special architectural or historical merit.
Compliance with these requireme nts shall be verified by means
of the energy performance certif icates referred to in regulatio n 12 of
the Energy Performance o f Buildings Regulations.
Fourth Schedule
(regulations 8(4) and 28)
Energy content of selected fuels  for end use - conversion table*
Energy commodity kJ (NCV) kgoe (NCV) kWh (NCV)
1 kg coke 28500 0,676 7,9171 kg hard coal 17200 – 30700 0,411 - 0,733 4,778 - 8,5281 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 – 1050 0 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 - 3,8331 kg peat briquettes 16000 – 16800 0,382 - 0,401 4,444 - 4,6671 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 
bricks16800 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 differen t conversion factors if these c an be justified.
ENERGY EFFICIENCY [S.L. 623.07 41
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 finalenergy consumption. For savings in kWh electricity the Minister
shall apply a coefficient established through a transparent
methodology on the basis of national circumstances affecting pr imary
energy consumption, in order to ensure a precise calculation of  real
savings. Those circumstances sha ll be substantiated, verifiable  a n d
based on objective and non-discriminatory criteria. For savings  i n
kWh electricity, the Minister may apply a default coefficient o f 2,1 or
use discretion to define a different coefficient, provided that  this can
be justified. When doing so, the Minister shall take into accou nt the
energy mix included in Malta’s integrated national energy and c limate
plans as notified to the Commission in accordance with Regulati on
(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 u nder
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 f or 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 calculati ng
energy savings:
(a) deemed savings, by refe rence to the results of
previous independently monitored energy improvements insimilar installations. The gen eric approach is termed " ex ante ";
(b) metered savings, whereby the savings from the
installation of a measure, or package of measures, aredetermined by recording the actual reduction in energy use,taking due account of factors such as additionality, occupancy,production levels and the weather which may affectconsumption. The generic approach is termed " ex post ";
(c) scaled savings, whereby engineering estimates of
savings are used, provided that t his approach may be used only
where establishing robust measured data for a specific
42[S.L. 623.07 ENERGY EFFICIENCY
installation is difficult or disproportionately expensive, e.g.
replacing a compressor or electric motor with a different kWhrating from that for which independent information aboutsavings has been measured, or w here those estimates are carried
out on the basis of nationally established methodologies andbenchmarks by qualified or a ccredited experts that are
independent of the obligated, participating or entrusted partie s
involved;
(d) surveyed savings, where consumers’ response to
advice, information campaigns,  labelling or certification
schemes or smart metering is determined, provided that thisapproach may be used only for savings resulting from changesin consumer behaviour and shall not be used for savingsresulting 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 a nd 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 activit y
of the obligated, participating or entrusted parties, orimplementing public authorities. To determine the savings thatcan be claimed as additional, the Minister shall have regard tohow energy use and demand would  evolve in the absence of the
policy measure in question by taking into account at least thefollowing 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 thatwould have occurred in any event, and thus shall not be claimedas energy savings for the purpose of sub-regulation (1) ofregulation 7). By way of derogation from that requirement,savings related to the renovation of existing buildings may beclaimed as energy savings for the purpose of sub-regulation (1)of regulation 7, provided that the materiality criterion referr ed
to in item 3(h) of this Schedule is ensured. Savings resultingfrom the implementation of national minimum requirementsestablished for new buildings pri or to the entry into force of the
Energy Performance of Buildings Regulations can be claimedas energy savings for the purpose of paragraph (a) of sub-
ENERGY EFFICIENCY [S.L. 623.07 43
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 EnergyEfficiency Action Plan;
(c) credit may be given only for savings exceeding
the following levels:
(i) union emission performance standards for
new passenger cars and new light commercial vehiclesfollowing the implementation of Regulations (EC) No443/2009 (*1) and (EU) No 510/2011 of the EuropeanParliament and of the Council (*2);
(ii) union requirements relating to the removal
from the market of certain energy related productsfollowing the implementation of implementing measuresunder Directive 2009/125/EC;
(d) policies with the purpose of encouraging higher
levels of energy efficiency of products, equipment, transportsystems, 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 beeligible to be taken into account for the fulfilment of energysavings required under sub-regul ation (1) of regulation 7,
provided that they result in v erifiable, and measurable or
estimable, energy savings. The ca lculation 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 beforeexpiry of the average expected lifetime of the product orvehicle, or before the product or vehicle would usually bereplaced, and the savings are claimed only for the period untilend 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, whe re relevant, ensure that quali ty
standards for products, services  and installation of measures a re
maintained or introduced where s uch standards do not exist.
(h) To account for climatic variations between
regions, the Minister may choose to adjust the savings to astandard value or to accord different energy savings inaccordance with temperature variations between regions.
(i) the calculation of energy savings shall take into
44[S.L. 623.07 ENERGY EFFICIENCY
account the lifetime of the meas ures and the rate at which the
savings decline over time. That calculation shall count the
savings each individual action will achieve during the periodfrom its date of implementation to 31
st December 2020 or 31st
December 2030 as appropriate. Alte rnatively, the Minister may
adopt another method that is estima ted to achieve at least the
same total quantity of savings. W hen using another method, the
Minister shall ensure that the total amount of energy savingscalculated using that method does not exceed the amount ofenergy savings that would ha ve been the result of their
calculation when counting the savings each individual actionwill achieve during the period from its date of implementationto 31
stDecember 2020 or 31st December 2030 as appropriate.
The other method and the provisions made to ensure that thebinding calculation requirement is met shall be described indetail in the integrated national energy and climate plans unde r
Regulation (EU) 2018/1999.
3. The Minister shall ensure that the following requirements
for policy measures taken pursuant to regulation 9 and sub-regu lation
(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 implementi ng 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 orprimary energy consumption, using the conversion factors setout in the Fourth Schedule;
(e) an annual report on the energy savings achieved
by entrusted parties, participa ting parties and implementing
public authorities be provided and made publicly available, aswell 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;
(h) the activities of the participating party, entrusted
party or implementing public authority are shown to be materialto the achievement of th e energy savings claimed.
ENERGY EFFICIENCY [S.L. 623.07 45
4. In determining the energy saving from taxation related
policy measures introduced under regulation 9, the followingprinciples shall apply:
(a) credit shall be given only for energy savings from
taxation measures exceeding th e 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 theresponsiveness of energy demand to price changes, and shall be
estimated on the basis of recent and representative official da ta
sources;
(c) the energy savings from accompanying taxation
policy instruments, including fiscal incentives or payment to afund, 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 ope ration
of the energy efficiency obligation schemes and alternative mea sures
referred to in regulations 8 and 9, and sub-regulation (4) of r egulation
27 are notified to the Commission. Except in the case of taxati on, 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 ove r the whole period from 1
st 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 foreach measure;
(e) the duration of the obligation period for the
energy efficiency obligation scheme;
(f) the actions provided fo r by the policy measure;
(g) the calculation methodology, including how
additionality and materiality have been determined and whichmethodologies and benchmarks are  used for deemed and scaled
savings;
46[S.L. 623.07 ENERGY EFFICIENCY
(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 independencefrom the obligated, participatin g or entrusted parties is ensur ed;
(k) in the case of taxation:
(i) the target sectors and segment of
taxpayers;
(ii) the implementing public authority;
(iii) the savings expe cted to be achieved;
(iv) the duration of the taxation measure; and(v) the calculation methodology, including the
price elasticities used and how they have beenestablished.
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 o n
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 installa tions, including transportatio n;
(c) build, whenever possible, on life-cycle cost
analysis (LCCA) instead of Simple Payback Periods (SPP) inorder to take account of long-term savings, residual values oflong-term investments and discount rates;
(d) be proportionate, and sufficiently representative to
permit the drawing of a reliable picture of overall energyperformance and the reliable identification of the most
significant opportunities for improvement.
ENERGY EFFICIENCY [S.L. 623.07 47
Energy audits shall allow detaile d and validated calculations f or
the proposed measures so as to provide clear information on pot ential
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 consumptionIn order to enable final customers to regulate their own energy
consumption, billing should take place on the basis of actualconsumption at least once a year, and billing information shoul d be
made available at least quarter ly, on request or where the cons umers
have opted to receive electronic billing or else twice yearly. Gas used
only for cooking purposes may be e xempted 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 dist ribution
stations:
(a) current actual prices and actual consumption of
energy;
(b) comparisons of the final customer’s current
energy consumption with consumption for the same period inthe previous year, preferably in graphic form;
(c) contact information for final customers’
organisations, energy agencies or similar bodies, includingwebsite addresses, from which information may be obtained onavailable energy efficiency improvement measures,comparative end-user profiles and objective technicalspecifications for energy-using equipment.
In addition, wherever possible and useful, the following
48[S.L. 623.07 ENERGY EFFICIENCY
information shall be made available to final customers in clear  a n d
understandable terms, in, with or signposted to within, their b ills,
contracts, transactions, and recei pts at distribution stations;
(d) comparisons with an average normalised or
benchmarked final customer i n 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 individualcustomers, energy distributors, distribution system operators a nd retail
energy sales companies shall inform their customers in a clear and
understandable manner of contact information for independentconsumer advice centres, energy agencies or similar institution s,
including their internet addresse s, where they can obtain advic e on
available energy efficiency measures, benchmark profiles for th eir
energy consumption and technical specifications of energy using
appliances that can serve to r educe the consumption of these
appliances.
Part II
Minimum requirements for billing and consumption
information for heating, coo ling and domestic hot water 
1. Billing based on actual consumption or heat cost
allocator readings
I n  o r d e r  t o  e n a b l e  f i n a l  u s e r s  t o  r e g u l a t e  t h e i r  o w n  e n e r g y
consumption, suppliers shall ensu re that billing shall take pla ce on the
basis of actual consumption or heat cost allocator readings at least
once per year.
2. Minimum frequency of billing or consumption
information
From 25
th October 2020, where remotely readable meters or
heat cost allocators have been installed, billing or consumptio n
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 insta lled, billing or consumption inf ormation
based on actual consumption or heat cost allocator readings sha ll be
provided to final users at least monthly. Such information may also be
made available via the internet and be updated as frequently asallowed by the measurement devices and systems used. Heating an d
ENERGY EFFICIENCY [S.L. 623.07 49
cooling may be exempted from that  requirement outside the heati ng/
cooling seasons.
3. Minimum information contained in the bill
The supplier shall ensure that the following information is mad e
available to final users in clea r and comprehensible terms in o r 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 emissi ons, including for final users
supplied by district heating or district cooling, and a descrip tion
of the different taxes, levies a nd tariffs applied. The scope o f
the requirement to provide information about greenhouse gasemissions may be limited to supplies from district heatingsystems with a total rated thermal input exceeding 20MW;
(c) comparisons of the final users’ current energy
consumption with consumption for the same period in theprevious year, in graphic form , climate corrected for heating
and cooling;
(d) contact information for final customers’
organisations, energy agencies or similar bodies, includingwebsite addresses, from which information on available energyefficiency improvement measures, comparative end-userprofiles and objective technical specifications for energy-usin g
equipment may be obtained;
(e) information about related complaints procedures,
ombudsman services or alternative dispute resolutionmechanisms, as applicable;
(f) comparisons with an average normalised or
benchmarked final user in the sa me user category. In the case o f
electronic bills, such comparisons may instead be madeavailable online and signpos ted to within the bills;
Bills that are not based on actual consumption or heat cost
allocator readings shall contain a clear and comprehensibleexplanation of how the amount set out in the bill was calculate d, and at
least the information referred t o in paragraphs (d) and (e). 
50[S.L. 623.07 ENERGY EFFICIENCY
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 andcooling demand;
2. identification, or in the case of item 2(a)(i), identificatio n
or estimation, of current hea ting and cooling supply:
(a) by technology, in GWh per year
(3), within sectors
mentioned under item 1 where po ssible, distinguishing between
energy derived from fossil and renewable sources:
(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;
ENERGY EFFICIENCY [S.L. 623.07 51
- 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 insta llations that generate waste
heat or cold and their potential heating or cooling supply, inGWh per year:
(i) thermal power generation installations that
can supply or can be retrofitte d 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 FirstSchedule 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 theinstallations specified under item 2(b)(i) and (ii)generating heating or cooling using the energy fromrenewable sources;
(v) industrial installations with a total thermal
input exceeding 20 MW which can provide waste heat;
(c) reported share of ener gy from renewable sources
and from waste heat or cold in the final energy consumption ofthe 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 forfocusing on energy dense areas in municipalities andconurbations;
(b) existing heating and cooling supply points
identified under item 2(b) and district heating transmission
52[S.L. 623.07 ENERGY EFFICIENCY
installations;
(c) planned heating and cooling supply points of the
type described under item 2(b) and  district heating transmissio n
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 st rategies related to the demand
management, such as long-term building renovation strategies un der
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, deliv ered
through efficiency in heating and cooling, in particular relate d to
points 1 to 4 of Article 4(b) and to paragraph (4)(b) of Articl e 15 of the
same Regulation, identifying which of these elements is additio nal
compared to integrated natio nal energy and climate plans;
6. general overview of the exis ting policies and measures as
described in the most recent re port submitted in accordance wit h
Articles 3, 20, 21 and 27(a) of  Regulation (EU) 2018/1999; 
Part Three – Analysis of the Economic Potential for Efficiency
in Heating and Cooling 
7. an analysis of the economic potential(5) o f  d i f f e r e n t
technologies for heating and coo ling shall be carried out for t he 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 technologi es,
distinguishing between energy derived from fossil and renewablesources 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 highefficiency cogeneration;
(e) Heat pumps;
ENERGY EFFICIENCY [S.L. 623.07 53
(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 aneconomic analysis that takes into considerationsocioeconomic and environmental factors
(6) a n d  a
financial analysis performed  to assess projects from the
investors’ point of view. Both economic and financialanalyses shall use the net pr esent value as criterion for
the assessment;
(ii) the baseline scenario should serve as a
reference point and take into account existing policies atthe time of compiling this comprehensive assessment
(7),
and be linked to data collected under Part One and item 6of Part Two of this Schedule;
(iii) alternative scenarios to the baseline shall
take into account energy efficiency and renewable energyobjectives of Regulation (E U) 2018/1999. Each scenario
shall present the following elements compared to thebaseline scenario:
- Economic potential of technologies
examined using the net pres ent 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 notfeasible due to technical reasons, financial reasons
or national regulation ma y be excluded at an early
stage of the cost-benefit an alysis, if justified based
on careful, explicit and well-documentedconsiderations.
The assessment and decision-making should take into account
costs and energy savings from increased flexibility in energy s upply
and from a more optimal operation of the electricity networks,including avoided costs and savings from reduced infrastructureinvestment, in the analysed scenarios.
54[S.L. 623.07 ENERGY EFFICIENCY
(b) Costs and benefits
The costs and benefits referred to under item 8(a) shall includ e
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 andhealth and safety benefits, to the extent possible;
-  labour market costs, energy
security and competitiveness, to the extentpossible.
(ii) Costs:
- Capital costs of plants and
equipment;
- Capital costs of the associated
energy networks,
- 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 extentpossible.
(c) Relevant scenarios to the baseline:
All relevant scenarios to the baseline shall be considered,
including the role of efficient i ndividual heating and cooling.
(i) the cost-benefit anal ysis may either cover a
project assessment or a group of projects for a broader
local, regional or nationa l assessment in order to
establish the most cost-effective and beneficial heating orcooling solution against a baseline for a givengeographical area for the purpose of planning;
(ii) The Minister shall designate the competent
authorities responsible for carrying out the cost-benefitanalyses pursuant to regulation 21 and shall provide the
ENERGY EFFICIENCY [S.L. 623.07 55
detailed methodologies and assumptions in accordance
with this Schedule and establish and make public theprocedures 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 centralis ed or decentralised supply
resources available within t he system and geographical
boundary, including technologies considered under item7 of Part 3 of this Schedule, and heating and coolingdemand trends and characteristics.
(e) Assumptions:
(i) the Minister shall provide assumptions, for
the purpose of the cost-benef it analyses, on the prices of
major input and output facto rs and the discount rate;
(ii) the discount rate used in the economic
analysis to calculate net present value shall be chosenaccording to European or national guidelines;
(iii) the Minister shall use national, European or
international energy price development forecasts ifappropriate in the national and, or regional/local context;
(iv) the prices used in the economic analysis
shall reflect socio economic costs and benefits. Externalcosts, such as environmental and health effects, shouldb e  i n c l u d e d  t o  t h e  e x t e n t  p o s s i b l e ,  i . e .  w h e n  a  m a r k e tprice exists or when it is alr eady included in European or
national regulation.
(f) Sensitivity analysis:
a sensitivity analysis shall be i ncluded to assess the costs an d
benefits of a project or group of  projects and be based on vari able
factors having a significant impact on the outcome of the calcu lations,
such as different energy prices, levels of demand, discount rat es and
other. 
Part Four – Potential New St rategies and Policy Measures
9. overview of new legislative and non-legislative policy
measures
(8) to realise the economic poten tial identified in accordance
with items 7 and 8, along with their foreseen:
(a) greenhouse gas e mission reductions;
56[S.L. 623.07 ENERGY EFFICIENCY
(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 hea ting 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 aidelement.
(Footnotes to this schedule)
(1) The amount of thermal energy needed to satisfy the
heating and cooling demand of end-users.
(2) The most recent data available should be used.
(3) The most recent data available should be used.
(4) The identification of "rene wable cooling” shall, after the
methodology for calculating the qu antity of renewable energy us ed for
cooling and district cooling is established in accordance with Article
35 of Directive (EU) 2018/2001, be carried out in accordance wi th that
Directive. Until then it shall be  carried out according to an a ppropriate
national methodology.
(5) The analysis of the economic potential should present the
volume of energy (in GWh) that can be generated per year by eac h
technology analysed. The limitations and interrelations within the
energy system should also be taken into account. The analysis m ay
make use of models based on assumptions representing the operat ion
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, p olicies
enacted within a year prior to the deadline for submission of t he
comprehensive assess ment 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 comprehen sive
assessment, not prejudging a sepa rate notification of the publi c support
schemes for a State aid assessment
ENERGY EFFICIENCY [S.L. 623.07 57
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 comparis on shall be made between the pla nned
installations or the planned refurbishment and an equivalentinstallation producing the same amount of electricity or proces s heat,
but recovering the waste heat and supplying heat through highefficiency cogeneration and, or district heating and cooling ne tworks.
Within a given geographical bounda ry the assessment shall take
into account the planned installation and any appropriate exist ing or
potential heat demand points that could be supplied from it, ta king into
account rational possibilities (for example technical feasibili ty and
distance).
The system boundary shall be set to include the planned
installation and the heat loads, such as building/s and industr ial
process. Within this system boundary the total cost of providin g heat
and power shall be determined f or 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 g roup of
buildings or part of a city were provided with and, or connecte d into a
new district heating network.
The cost-benefit analysis shall be  based on a description of th e
planned installation and the comparison installation(s), coveri ng
electrical and thermal capacity, as applicable, fuel type, plan ned usage
and the number of planned operating hours annually, location an d
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 de mand
points shall be taken into account. The comparison shall coverinfrastructure related costs for the planned and comparisoninstallation.
Cost-benefit analyses for the pur poses of sub-regulation (6) of
regulation 21 shall include an economic analysis covering a fin ancial
analysis reflecting actual cash flow transactions from investin g in and
operating individual installations.
Projects with positive cost-benefit outcome are those where the
sum of discounted benefits in the economic and financial analys is
58[S.L. 623.07 ENERGY EFFICIENCY
exceeds the sum of discounted c osts (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, industr ial
companies, district heating and cooling networks, or other part ies
influenced by the defined system boundary and geographicalboundary, contribute data for use i n assessing the costs and be nefits 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 fromhigh-efficiency cogeneration and is issued to thiseffect in response to a re quest 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 thefollowing information:
(i) the identity, location, type and capacity
(thermal and electrical) of the installation where theenergy was produced;
(ii) the dates and places of production;
(iii) the lower calorific value of the fuel source
from which the electricity was produced; 
ENERGY EFFICIENCY [S.L. 623.07 59
(iv) the quantity and the use of the heat
generated together w ith the electricity;
(v) the quantity of electricity from high
efficiency cogeneration in accordance with the SecondSchedule to these regulations that the guaranteerepresents;
(vi) the primary energy savings calculated in
accordance with the Second Schedule to theseregulations based on the harmonised efficiency referencevalues 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 nationalsupport scheme, and the ty pe 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 s tation
boundary and exported to the grid.
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 si de and demand response measures
and distributed generation, including savings from lowering the  cost of
delivery or of network investme nt 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, dema nd management and distributed
generation on organised electr icity markets, in particular:
60[S.L. 623.07 ENERGY EFFICIENCY
(a) the shifting of the load from peak to off-peak
times by final customers taking into account the availability o f
renewable energy, energy from cogeneration and distributedgeneration;
(b) energy savings from demand response of
distributed consumers by energy aggregators;
(c) demand reduction from energy efficiency
measures undertaken by energy service providers, includingenergy service companies;
(d) the connection and dispatch of generation sources
at lower voltage levels;
(e) the connection of gener ation sources from closer
location to the consumption; and
(f) the storage of energy.
For the purposes of this provision the term "organised electric ity
markets" shall include over-the-counter markets and electricityexchanges for trading energy, capacity, balancing and ancillaryservices in all timeframes, incl uding forward, day-ahead and in tra-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;
(c) real time pricing; and(d) peak time rebates.
Twelfth Schedule
(regulation 22(5))
Energy efficiency requirements for transmission system operator s and 
distribution system operators
Transmission and distributi on system operators shall:
(a) set up and make public their standard rules
relating to the bearing and sharing of costs of technicaladaptations, such as grid connections and grid reinforcementsand the introduction of new grids, improved operation of thegrid and rules on the non-discriminatory implementation of the
ENERGY EFFICIENCY [S.L. 623.07 61
grid codes, which are necessary in order to integrate new
producers feeding electricity produced from high-efficiencycogeneration into the interconnected grid;
(b) provide any new producer of electricity produced
from high-efficiency cogeneration wishing to be connected tothe system with the comprehensive and necessary informationrequired, 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 reasonablypracticable and non-discriminatory;
(c) provide standardised and simplified procedures
for the connection of distributed high efficiency cogenerationproducers to facilitate their  connection to the grid.
The standard rules referred to i n paragraph (a) shall be based on
objective, transparent and non-discriminatory criteria taking p articular
account of all the costs and bene fits associated with the conne ction of
those producers to the grid. They may provide for different typ es of
connection.
Thirteenth Schedule
(regulation 25(1)(d)) 
Minimum items to be included in  energy performance contracts
with the public sector or in th e associated tender specificatio ns
- Clear and transparent list of t he 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.
62[S.L. 623.07 ENERGY EFFICIENCY
- 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 proje ct.
- Regulations specifying the inclusion of equivalent
requirements in any subcontr acting with third parties.
- Clear and transparent display of financial implications of
the project and distribution of the share of both parties in th e monetary
savings achieved (i.e. remunera tion of the service provider).
- Clear and transparent provisions on measurement and
verification of the guaranteed s avings achieved, quality checks  a n d
guarantees.
- Provisions clarifying the procedure to deal with changing
framework conditions that affect the content and the outcome of  the
contract (i.e. changing energy pr ices, use intensity of an inst allation).
- Detailed information on the obligations of each of the
contracting party and of the  penalties for their breach.