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42B.—(1) Paragraphs (2) and (3) apply where a deficit arises in respect of compliance by a UK administered operator with regulation 42A(1) or 42A(2) for a scheme year (the “non-compliance year”).
(2) Where the deficit does not result from an error in the verified emissions report submitted by the UK administered operator, the amount of allowances or aviation allowances that the UK administered operator is required to surrender under regulation 42A(2) for the recovery year is increased by an amount of allowances or aviation allowances equal to the deficit.
(3) Where the deficit results from an error in the verified emissions report submitted by the UK administered operator, the amount of annual reportable emissions of the UK administered operator in the year in which the error is discovered, for the purpose of regulation 42A(2), is increased by an amount of annual reportable emissions equal to the deficit.
(4) In this regulation—
(a)“deficit” means a shortfall in the number of allowances or aviation allowances surrendered, calculated as—
(i)where the non-compliance year is any scheme year beginning with 2013 and ending with [F22023], , where—
‘x’ is the amount of annual reportable emissions arising in the non-compliance year;
‘y’ is the amount of excluded aviation emissions arising in the non-compliance year (expressed in tonnes of carbon dioxide equivalent); and
‘z’ is the amount of allowances or aviation allowances which the UK administered operator surrendered for the non-compliance year; and
(ii)where the non-compliance year is any scheme year beginning with [F32024], , where—
‘x’ is the amount of annual reportable emissions arising in the non-compliance year; and
‘y’ is the amount of allowances or aviation allowances which the UK administered operator surrendered for the non-compliance year; and
(b)the “recovery year” means, in respect of a failure to comply with—
(i)regulation 42A(1), the scheme year 2015; or
(ii)regulation 42A(2), the scheme year following the non-compliance year.]
Textual Amendments
F1Regs. 42A, 42B inserted (22.12.2014) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2014 (S.I. 2014/3125), regs. 1(1), 13
F2Word in reg. 42B(4)(a)(i) substituted (31.3.2018) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2018 (S.I. 2018/306), regs. 1, 2(8)(a)
F3Word in reg. 42B(4)(a)(ii) substituted (31.3.2018) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2018 (S.I. 2018/306), regs. 1, 2(8)(b)
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