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Commission Regulation (EU) 2016/1388 Article 49

Commission Regulation (EU) 2016/1388 Article 49

Principles of cost-benefit analysis

Article 49

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 the internal market in electricity, 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.

Read the full instrument → · Read this in context: CHAPTER 1 — Cost-benefit analysis →

Other provisions in CHAPTER 1 — Cost-benefit analysis

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of 2026-07-04

CitationArticle 49 of Commission Regulation (EU) 2016/1388 (LawPlayer, data as of 2026-07-04)

© European Union, https://eur-lex.europa.eu, 1998-2026. Reuse authorised under Commission Decision 2011/833/EU, provided the source is acknowledged.

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