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CHAPTER VU.K.TRANSACTIONS

SECTION 5U.K.Surrender of allowances

Article 52U.K.Surrender of allowances

An operator shall surrender allowances for an installation by requesting or, where provided in Member State legislation, be deemed to have requested, the registry administrator to:

(a)

transfer a specified number of allowances for a specified year from the relevant operator holding account into the Party holding account of that registry;

(b)

enter the number of transferred allowances into the section of the surrendered allowance table designated for that installation for that year.

The transfer and entry shall take place in accordance with the allowance surrender process set out under Annex IX.

Article 53U.K.The use of CERs and ERUs

The use of CERs and ERUs by an operator in accordance with Article 11a of Directive 2003/87/EC in respect of an installation shall take place through an operator requesting the registry administrator to:

(a)

transfer a specified number of CERs or ERUs for a specified year from the relevant operator holding account into the Party holding account of that registry;

(b)

enter the number of transferred CERs and ERUs into the section of the surrendered allowance table designated for that installation for that year.

From 1 January 2008 onwards, the registry administrator shall only accept requests to use CERs and ERUs up to a percentage of the allocation made to each installation, as specified by that administrator’s Member State in its national allocation plan for that period.

The transfer and entry shall take place in accordance with the allowance surrender process set out under Annex IX.

Article 54U.K.Surrender of force majeure allowances

The issue of force majeure allowances in accordance with Article 43 shall constitute the surrender of those force majeure allowances.

Article 55U.K.Calculation of compliance status figures

Upon an entry being made into the section of the surrendered allowance table or verified emissions table designated for an installation, the registry administrator shall:

(a)

during the years 2005, 2006 and 2007 determine the compliance status figure for that installation and for each year by calculating the sum of all allowances surrendered from the year 2005 up to and including the current year minus the sum of all verified emissions from the year 2005 up to and including the current year;

(b)

during the year 2008 and each year thereafter determine the compliance status figure for that installation and for each year by calculating the sum of all allowances surrendered from the year 2008 up to and including the current year minus the sum of all verified emissions from the year 2008 up to and including the current year, plus a correction factor. The correction factor shall be zero if the 2007 figure was greater than zero, but shall remain as the 2007 figure if the 2007 figure is less than or equal to zero.

Article 56U.K.Entries into the compliance status table

1.The registry administrator shall enter the installation’s compliance status figure calculated in accordance with Article 55 for each year into the section of the compliance status table designated for that installation.

2.On 1 May 2006 and on 1 May of each year thereafter the registry administrator shall notify the compliance status table to the competent authority. In addition, the registry administrator shall notify any changes to the entries for previous years of the compliance status table to the competent authority.

[F1Article 57 U.K. Entries into the verified emissions table

Where, on 1 May 2006 and on 1 May of each year thereafter, no verified emissions figure has been entered into the verified emissions table for an installation for a previous year, any substitute emissions figure determined pursuant to Article 16(1) of Directive 2003/87/EC which has not been calculated as closely as possible in accordance with the detailed requirements established by the Member State pursuant to Annex V of Directive 2003/87/EC shall not be entered into the verified emissions table.]