The Electricity Connection and Supply Regulations (S.L. 545.41 – the "Regulations"), which came into force on October 29, 2024, mark a significant development in Malta's energy distribution legal framework. This subsidiary legislation introduces robust regulation governing electricity connections, network extensions, billing, and metering, while also laying down rules for electric vehicle charging and renewable energy integration.
A particularly crucial aspect of these regulations is the governance of substations, which play a vital role in ensuring stable and efficient electricity supply. The Regulations introduce new obligations for developers, network operators, and property owners regarding the establishment, ownership, and financing of substations.
New Rules for Electricity Connections and Consumer Protections
One of the most significant effects of these regulations is the obligation placed on the distribution system operator (namely, Enemalta PLC – hereinafter the "DSO") to provide electricity connections to customers upon request. Under Article 3, the DSO must connect any premises to the electricity network, provided the necessary application process is followed and the applicable fees are paid. This also extends to temporary installations, such as construction sites, provided that an appropriate application is made.
The regulations further classify network connections into standard connections (for domestic and small commercial users) and bulk connections (for industrial or high-power users exceeding 60 Amps per phase). In cases where multiple consumers are housed in a single development, the law requires the developer to bear the cost of extending the network, with provisions allowing for partial refunds if other consumers later benefit from the same infrastructure.
The law also includes enhanced consumer protection provisions, particularly in cases of billing disputes and disconnections. Electricity supply cannot be disconnected by the DSO without due notice, and vulnerable consumers-such as elderly individuals or those with disabilities-are protected from suspension of supply under specific conditions.
Electric Vehicle Charging and Renewable Energy Integration
Recognising the growing adoption of electric vehicles ("EVs"), the new Regulations introduce dedicated EV meters, allowing customers to track electricity consumption for EV charging separately to regular electricity consumption. Public EV charging stations must also meet specific metering and connection requirements, ensuring fair energy pricing and preventing unauthorised use of EV supply lines for other purposes.
The Regulations also encourage renewable energy integration, particularly for solar power and other distributed generation systems. Property owners and businesses wishing to install solar panels, wind turbines, or energy storage units must obtain prior approval from the DSO. Compliance with technical standards specified in the law is mandatory to ensure network stability and prevent voltage fluctuations.
The Governance of Substations
One of the most complex and impactful sections of the Regulations relates to the establishment, financing, and ownership of substations. The Regulations outline how substations are to be built, who bears the cost for such construction, and how property rights over substation land are managed.
Obligations for Developers and Property Owners
Under Article 12 of the Regulations, a new substation must be constructed in three main scenarios:
- For large developments – If a development contains more than 18 units and does not meet the criteria for direct network extension.
- For high-demand consumers – If a single building unit or a bulk network connection requires more than 60 Amps per phase, and it is technically unfeasible to connect to an existing substation.
- For isolated buildings – If no suitable low-voltage connection point or existing substation is available within reasonable proximity.
The responsibility for providing the substation land and constructing the substation varies depending on the context:
- In multi-unit developments, the developer must provide a suitable substation room and grant the DSO access to such area of the development. Costs for civil works and structural alterations shall be borne by the DSO.
- In cases where a new substation is shared by multiple users, the DSO may contribute to the costs.
- For single-unit developments, as in the case described in point 2 above, the cost burden falls entirely on the property owner or developer.
Developers must also ensure that substations comply with structural and safety standards, as determined by the DSO, before the connection is activated.
Ownership and Legal Title Over Substation Land
A crucial legal question in the Regulations relates to who owns the land upon which a substation is developed once it is established. Article 13 provides that the DSO shall acquire the substation site either by full ownership, under title of lease or on commodatum (loan for use), at the discretion of the DSO, except where a specific title is required under the Regulations.
Where the substation is initially intended to serve multiple users, or where it is subsequently required to extend electricity supply to one or more persons other than the owner of the substation land, the DSO shall have the right to acquire full ownership from the landowner. This is a significant right being granted to the DSO.
Compensation for Substation Land
Article 14 establishes the valuation and compensation framework for cases where substation land is transferred to the DSO. If the DSO acquires full ownership, the landowner must be compensated based on a professional valuation conducted by a licensed perit. The valuation process must be independent and objective, ensuring that the price reflects market conditions.
In cases where a developer has fully financed a substation, the regulations allow for partial reimbursement if the DSO later uses the same substation to supply third parties. A request for a refund needs to be submitted to the DSO in accordance with the mechanism established in the law. The right to such refund applies for up to 10 years after the substation is commissioned. Furthermore, if a developer provides land for the development of the substation by the DSO, they are entitled to monetary compensation at rates specified in the Regulations.
The Regulations represent a development in how electricity infrastructure is developed and managed in Malta. Understanding these Regulations is essential for developers, property owners, and businesses, as compliance could directly impact construction costs, planning, and access to electricity.
The Regulations give the DSO the specific rights to acquire substation land from private landowners when such land becomes essential for the provision of public electricity services. This effectively amounts to expropriation of private land and is a very powerful right which is generally only given to the Government. The fact the DSO in Malta is a public limited company (despite being partially owned by the Government of Malta) raises questions which are potentially of a constitutional nature since expropriation is a significant limitation on the property rights of individuals. In this context, the Regulations seek to strike a balance between, the individual's right to property on one hand, by providing compensation for expropriated land, and on the other, the public interest in ensuring a secure and efficient electricity supply for the wider community.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
