{
  "url": "https://openlegislation.uk/eu-regulation-2016-1388/article-49",
  "json_url": "https://openlegislation.uk/eu-regulation-2016-1388/article-49.json",
  "legislation": "eur/2016/1388",
  "legislation_title": "Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a Network Code on Demand Connection (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2016-1388",
  "path": "article/49",
  "kind": "article",
  "number": "49",
  "heading": "Principles of cost-benefit analysis",
  "text": "1. Demand facility owners, DSOs and CDSOs shall assist and contribute to the cost-benefit analysis undertaken according to Articles 48 and 53 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 demand facility owner or prospective owner, or by a DSO/CDSO or prospective operator, assessing a potential derogation pursuant to Article 52, the relevant TSO and DSO shall assist and contribute to the cost-benefit analysis and provide the necessary data as requested by the demand facility owner or prospective owner, or by the DSO/CDSO or prospective operator, within three months of receiving a request, unless agreed otherwise by the demand facility owner or prospective owner, or by the DSO/CDSO or prospective operator.\n2. A cost-benefit analysis shall be in line with the following principles:\n(a) the relevant TSO, demand facility owner or prospective owner, DSO/CDSO or prospective operator, shall base its cost-benefit analysis on one or more of the following calculating principles:\n(i)the net present value;\n(ii)the return on investment;\n(iii)the rate of return;\n(iv)the time needed to break even;\n(b) the relevant TSO, demand facility owner or prospective owner, DSO/CDSO or prospective operator, shall also quantify socioeconomic benefits in terms of improvement in security of supply and shall include at least:\n(i)the associated reduction in probability of loss of supply over the lifetime of the modification;\n(ii)the probable extent and duration of such loss of supply;\n(iii)the societal cost per hour of such loss of supply;\n(c) the relevant TSO, demand facility owner or prospective owner, DSO/CDSO or prospective operator, shall quantify the benefits to electricity markets, cross-border trade and integration of renewable energies, including at least:\n(i)the active power frequency response;\n(ii)the balancing reserves;\n(iii)the reactive power provision;\n(iv)congestion management;\n(v)defence measures;\n(d) the relevant TSO shall quantify the costs of applying the necessary rules to existing transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems, or existing demand units, including at least:\n(i)the direct costs incurred in implementing a requirement;\n(ii)the costs associated with attributable loss of opportunity;\n(iii)the costs associated with resulting changes in maintenance and operation.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Art. 49(2)(c) substituted (31.12.2020) by The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 2 para. 15"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2016/1388/article/49",
    "retrieved_at": "2026-11-01T14:45:37.269760+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}