Newsletter-21

294 NEWSLETTER 2016 prior to the date of entry into force of Amending Regulation, shall be exempt from this upper limit. Mergers, Spin-offs and Share Transfers of Unlicensed Generation Facilities Mergers The Amending Regulation introduces several principles on struc- tural changes in unlicensed generation facilities, as well. According to the eighteenth subparagraph attached toArt. 31 of the Regulation, if the generation facility aims to merge with (i) another unlicensed genera- tion facility that is fully owned by the applicant generation facility, or within the body of (ii) an unlicensed generation facility that fully owns the applicant generation facility, such merger shall be conducted as per the legislation in force. In order to conduct such merger, all facilities connected with such operation shall have provisional acceptances. The generation facility shall apply to the relevant network operator one month prior to the merger operation, and inform it regarding actions to be taken. All necessary actions shall be conducted simultaneously by the concerned parties of the merger operation. Spin-offs Similarly, as per the nineteenth subparagraph added to Art. 31 of the Regulation, if an unlicensed generation facility intends to partially or fully spin-off, such operation shall be conducted as per the legisla- tion in force. However, all of the facilities within the body of such generation facility should obtain provisional acceptances. The genera- tion facility shall apply to the relevant network operator one month prior to the spin-off operation, and inform it regarding the actions to be taken. All necessary actions shall be conducted simultaneously by the parties of the spin-off. Share Transfers The Amending Regulation introduces a significant alteration regarding share transfers of electricity generation facilities. As per twentieth subparagraph of Art. 31, the unlicensed generation facilities