EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations amend the Climate Change Agreements (Administration) Regulations 2012.
Regulation 3 provides that the base year for a greenfield facility is the 12 month period starting on the date of an underlying agreement. It also provides that emissions shall be measured in tonnes of carbon dioxide equivalent.
Regulation 4 amends the terms to be included in an agreement in relation to the buy-out fee to provide that the buy-out fee is calculated by reference to emissions of tonnes of carbon dioxide equivalent.
Regulation 5 amends the provisions on the calculation of financial penalties which are calculated on the basis of the difference between the amount of levy payable on supplies of taxable commodities if the supplies were not reduced rate supplies and if the supplies were reduced rate supplies, in respect of target units which include greenfield sites, if the penalty notice is served during the first year that the target unit is covered by an agreement. It provides that the financial penalty is based on the difference between the estimated amount of levy that would be payable on supplies of taxable commodities to the target unit during the first year that the target unit is covered by an agreement if the supplies were not reduced rate supplies and the estimated amount of levy that would be payable on supplies of taxable commodities to the target unit during the first year that the target unit is covered by an agreement if the supplies were reduced rate supplies. It also provides that penalties which are calculated on the basis of the difference between actual emission and reported emissions for a target period are based on emissions of tonnes of carbon dioxide equivalent.