{
  "url": "https://openlegislation.uk/eu-regulation-2019-943/article-63",
  "json_url": "https://openlegislation.uk/eu-regulation-2019-943/article-63.json",
  "legislation": "eur/2019/943",
  "legislation_title": "Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast) (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2019-943",
  "path": "article/63",
  "kind": "article",
  "number": "63",
  "heading": "New interconnectors",
  "text": "1. New direct current interconnectors may, upon request, be exempted, for a limited period, from the provisions specified in paragraph 4A provided that the following conditions are met:\n(a) the investment enhances competition in electricity supply;\n(b) the level of risk attached to the investment is such that the investment would not take place unless an exemption is granted;\n(c) the interconnector is owned by a person who is separate, at least in terms of its legal form, from the system operators in whose systems that interconnector is to be built;\n(d) charges are levied on users of that interconnector;\n(e) ... no part of the capital or operating costs of the interconnector has been recovered from any component of charges made for the use of transmission or distribution systems linked by the interconnector; and\n(f) an exemption would not be to the detriment of competition or the effective functioning of the electricity market in Great Britain, or the efficient functioning of the regulated system to which the interconnector is linked.\n2. Paragraph 1 shall also apply, in exceptional cases, to alternating current interconnectors provided that the costs and risks of the investment in question are particularly high when compared with the costs and risks normally incurred when connecting two neighbouring national transmission systems by an alternating current interconnector.\n3. Paragraph 1 shall also apply to significant increases of capacity in existing interconnectors.\n4. The decision granting an exemption as referred to in paragraphs 1, 2 and 3 shall be taken on a case-by-case basis by the regulatory authority. An exemption may cover all or part of the capacity of the new interconnector, or of the existing interconnector with significantly increased capacity.\n...\nIn deciding to grant an exemption, the regulatory authority shall take into consideration, on a case-by-case basis, the need to impose conditions regarding the duration of the exemption and non-discriminatory access to the interconnector. When deciding on those conditions, regulatory authorities shall, in particular, take account of additional capacity to be built or the modification of existing capacity, the time-frame of the project and national circumstances.\nBefore granting an exemption, the regulatory authority shall decide on the rules and mechanisms for management and allocation of capacity. Those congestion-management rules shall include the obligation to offer unused capacity on the market and users of the facility shall be entitled to trade their contracted capacities on the secondary market. In the assessment of the criteria referred to in points (a), (b) and (f) of paragraph 1, the results of the capacity-allocation procedure shall be taken into account.\n...\nThe exemption decision, including any conditions referred to in the third subparagraph of this paragraph, shall be duly reasoned and published.\n4A. The provisions specified for the purposes of paragraph 1 are the standard conditions of an interconnector licence granted under section 6(1)(e) of the Electricity Act 1989 relating to—\n(a) the provision of third-party access to an interconnector;\n(b) tariffs or charging methodologies for such access;\n(c) use of revenues.\n5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n9. ... Paragraphs 1 to 4A apply to the decision of the regulatory authority to modify an exemption decision, taking into account the particularities of the existing exemption.\n10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Art. 63(1) substituted (E.W.S.) (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. 4 para. 32(2)(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Art. 63(1)(c) substituted (E.W.S.) (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. 4 para. 32(2)(b)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in Art. 63(1)(e) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 32(2)(c)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in Art. 63(1)(f) substituted (E.W.S.) (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. 4 para. 32(2)(d)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Word in Art. 63(4) substituted (E.W.S.) (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. 4 para. 32(3)(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in Art. 63(4) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 32(3)(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in Art. 63(4) substituted (E.W.S.) (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. 4 para. 32(3)(c)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in Art. 63(4) substituted (E.W.S.) (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. 4 para. 32(3)(d)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in Art. 63(4) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 32(3)(e)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Art. 63(4A) inserted (E.W.S.) (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. 4 para. 32(4)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Art. 63(5)-(8) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 32(5)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in Art. 63(9) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 32(6)(a)"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in Art. 63(9) substituted (E.W.S.) (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. 4 para. 32(6)(b)"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Art. 63(10)(11) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 32(7)"
    }
  ],
  "outstanding_effects": [
    {
      "type": "words substituted",
      "affecting": "ukpga/2023/52",
      "affecting_title": "Energy Act 2023"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2019/943/article/63",
    "retrieved_at": "2026-11-01T14:43:20.321785+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."
}