The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2021

Article 60 amended (ultra-small emitters: failure to notify where reportable emissions exceed maximum amount)

19.—(1) Article 60 is amended as follows.

(2) In paragraph (2)(b)—

(a) for “CA + (RE x CP)” substitute “CA + ((RE – FA) x CP)”;

(b) after the definition of “RE” insert—

“FA is—

(a) where—

(i) an application in respect of the installation was made under the Free Allocation Regulation for free allocation in the same allocation period as the penalty year is in;

(ii) the UK ETS authority informed the regulator under Article 15a(4) of that Regulation that the application was valid; and

(iii) paragraph 7(5) of Schedule 8 does not apply (ultra-small emitter becoming hospital or small emitter),

the number of tonnes of carbon dioxide equivalent represented by the final annual number of allowances that would have been allocated under Part 4A in respect of the installation for the scheme year (or part of the scheme year) if the installation had not been included in the ultra-small emitter list for 2021-2025 or, as the case may be, the ultra-small emitter list for 2026-2030, disregarding any adjustment to free allocation that might have been made under the Activity Level Changes Regulation;

(b) in any other case, zero;”.

(3) After paragraph (2) insert—

“(2A) For the purpose of determining the value of FA under paragraph (2)(b) in a case where part of a scheme year falls within the penalty period, the final annual number of allowances that would have been allocated under Part 4A in respect of the installation for that part of the scheme year is the final annual number of allowances that would have been allocated in respect of an installation for the scheme year multiplied by D/Y, where—

D is the number of days in the scheme year in the penalty period;

Y is the number of days in the scheme year.”.