The Greenhouse Gas Emissions Trading Scheme Regulations 2012

[F1 Adjustment of allocation to an installation: partial cessation of regulated activities of excluded installation U.K.

9.— (1) Sub-paragraph (2) applies where, in the year prior to the entry year, one sub-installation of an excluded installation which contributes to—

(a) at least 30% of the final annual amount of allowances allocated to the installation; or

(b) the allocation of more than 50,000 allowances,

is operated at an activity level which is 50% or less than the activity level originally used for calculating the allocation in respect of the sub-installation (“the initial activity level”).

(2) Where this sub-paragraph applies the operator must notify the regulator of the reduction in activity levels, stating the amount of the reduction and the sub-installation to which it applies by—

(a) where the entry year is 2015, 31st December 2015;

(b) where the entry year is any year after 2015, the later of—

(i) 31st December in the year prior to the entry year; or

(ii) the last day of the one month period beginning with the date the reduction in activity levels occurred.

(3) Once the operator has notified the regulator of the reduction in activity levels, the regulator must—

(a) adjust the allocation of allowances in accordance with sub-paragraph (4);

(b) revise the preliminary annual number of allowances allocated in respect of each sub-installation; and

(c) revise the preliminary total annual amount of allowances to be allocated, commencing with the entry year.

(4) Where the activity level of a sub-installation during the year prior to the entry year was at a level which constitutes a reduction of—

(a) 50% or more but less than 75% compared with the initial activity level, the operator is entitled to receive a quantity of allowances representing 50% of the final total annual amount of allocated allowances in respect of that sub-installation, commencing with the entry year;

(b) 75% or more but less than 90% compared with the initial activity level, the operator is entitled to receive a quantity of allowances representing 25% of the final total annual amount of allocated allowances in respect of that sub-installation, commencing with the entry year;

(c) 90% or more compared with to the initial activity level, the operator is entitled to no allowances in respect of that sub-installation, commencing with the entry year.

(5) The regulator must notify the registry administrator to withhold the allocation of allowances to the operator of an installation for as long as any of the following circumstances obtains—

(a) the regulator is investigating whether or not, in the year prior to the entry year, a sub-installation was operating at an activity level which constitutes a reduction of 50% or more compared with the initial activity level;

(b) the information required under sub-paragraph (2)—

(i) has not been submitted in accordance with that sub-paragraph; or

(ii) has been submitted but is insufficient;

(c) the regulator is carrying out functions under sub-paragraph (3);

(d) a notification has been given to the European Commission pursuant to paragraph 9(1) and the notified amount of allowances has not yet been approved by it;

(e) a notification has been made to the registry administrator under regulation 80(11) but the necessary changes to the allocation table have not yet been made.

(6) The registry administrator must comply with a notification made under sub-paragraph (5).

(7) Where sub-paragraph (5) applies, the regulator—

(a) must notify the operator of the decision to withhold the allocation of allowances; and

(b) may, if the regulator considers it appropriate to do so, notify the operator that—

(i) the allocation of allowances will be permanently reduced; or

(ii) the allowances (or a proportion of them) will be issued.

(8) In this paragraph—

(a) “activity level” means the activity level used for calculating the sub-installation’s allocation in accordance with Article 9 of the Free Allocation Decision; and

(b) “final total annual amount” means the amount of allowances calculated in respect of the activity level originally used for calculating the allocation in respect of the sub-installation, in accordance with Article 10(9) of the Free Allocation Decision.]

Textual Amendments

F1 Sch. 6A inserted (4.12.2015) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2015 (S.I. 2015/1849), regs. 1(1), 14