TITLE IIIU.K. OPERATIONAL NOTIFICATION PROCEDURE FOR CONNECTION

CHAPTER 2 U.K. Cost-benefit analysis

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

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

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

(a)the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall base its cost-benefit analysis on one or more of the following calculating principles:

(i)

the net present value;

(ii)

the return on investment;

(iii)

the rate of return;

(iv)

the time needed to break even;

(b)the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall also quantify socioeconomic benefits in terms of improvement in security of supply and shall include at least:

(i)

the associated reduction in probability of loss of supply over the lifetime of the modification;

(ii)

the probable extent and duration of such loss of supply;

(iii)

the societal cost per hour of such loss of supply;

(c)the relevant TSO, relevant system operator, power-generating facility owner or prospective owner shall quantify the benefits to [F1electricity markets], cross-border trade and integration of renewable energies, including at least:

(i)

the active power frequency response;

(ii)

the balancing reserves;

(iii)

the reactive power provision;

(iv)

congestion management;

(v)

defence measures;

(d)the relevant TSO shall quantify the costs of applying the necessary rules to existing power-generating modules, including at least:

(i)

the direct costs incurred in implementing a requirement;

(ii)

the costs associated with attributable loss of opportunity;

(iii)

the costs associated with resulting changes in maintenance and operation.

Textual Amendments