# Commission Regulation (EU) 2016/1388 of 17 August 2016 establishing a Network Code on Demand Connection (Text with EEA relevance), Article 49: Principles of cost-benefit analysis

Extent: E+W+S+N.I.

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.
2. A cost-benefit analysis shall be in line with the following principles:
(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:
(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, 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:
(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, 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:
(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 transmission-connected demand facilities, existing transmission-connected distribution facilities, existing distribution systems, or existing demand units, 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.

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Source: https://www.legislation.gov.uk/eur/2016/1388/article/49 (the official version)
Page: https://openlegislation.uk/eu-regulation-2016-1388/article-49
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.