The Climate Change Agreements (Administration and Eligible Facilities) (Amendment) Regulations 2023

Amendment of the Climate Change Agreements (Administration) Regulations 2012

2.—(1) The Climate Change Agreements (Administration) Regulations 2012(1) are amended as follows.

(2) In regulation 2 (interpretation)—

(a) in the definition of “target period”, at the end insert—

“(f) 1st January 2024 to 31st December 2024;”;

(b) after the definition of “target period 5” insert—

““target period 6” means the target period from 1st January 2024 to 31st December 2024;”.

(3) In regulation 12 (terms to be included in an underlying agreement relating to the buy-out fee)—

(a) in paragraph (2)(c)—

(i) in paragraph (i)—

(aa) for “or £18” substitute “£18”;

(bb) after “target period 5” insert “, or £25 where the finding is of a failure to meet a target for target period 6”;

(ii) in paragraph (iv), after “for target period 5” insert “and target period 6”;

(b) in paragraph (2)(d)(i)—

(i) for “or £18” substitute “£18”;

(ii) after “target period 5” insert “, or £25 where the finding is of a failure to meet a target for target period 6”.

(4) In regulation 12A (terms to be included in an umbrella agreement relating to the buy-out fee)—

(a) in paragraph (2), for “or target period 5” substitute “, target period 5 or target period 6”;

(b) in paragraph (3), for sub-paragraphs (i) to (iv) substitute—

“(a) A is £14 for target periods 3 and 4, £18 for target period 5, or £25 for target period 6;

(b) W in units of tCO₂ equivalent represents the amount by which the emissions for the target period exceed the target;

(c) S, for target periods 1 to 4, in units of tCO₂ equivalent represents any surplus; and

(d) S, for target periods 5 and 6, is zero.”;

(c) in paragraph (4), for sub-paragraphs (i) and (ii) substitute—

“(a) A is £14 for target periods 3 and 4, £18 for target period 5, or £25 for target period 6; and

(b) W in units of tCO₂ equivalent represents the amount by which the emissions for the target period exceed the target.”

(5) In regulation 14 (terms to be included in an underlying agreement relating to the provision of information), for paragraph (2)(a) substitute—

“(a) provide to the administrator on or before 1st May following the end of a target period such information as has been requested by the administrator—

(i) in order to determine whether progress towards meeting the target is, or is likely to be, taken to be satisfactory; and

(ii) about the actions taken, in relation to energy efficiency improvements or emissions reductions, in order to meet the target; and”.

(6) In regulation 15 (financial penalties)—

(a) after paragraph (1) insert—

“(1ZA) The amount of the financial penalty that may be imposed under paragraph (1) is—

(a) the maximum amount as determined in accordance with paragraphs (1A) to (3); or

(b) where the administrator considers it appropriate, such lower amount as the administrator considers appropriate.”.

(b) in paragraph (2)—

(i) for “the amount of the financial penalty” substitute “the maximum amount of the financial penalty”;

(ii) in sub-paragraph (a), for “£250” substitute “£500”;

(c) in paragraph (2B)—

(i) for “the amount” substitute “the maximum amount”;

(ii) in sub-paragraph (a), for “£250” substitute “£500”;

(d) in paragraph (3)—

(i) for “the amount” substitute “the maximum amount”;

(ii) in sub-paragraph (a), for “£250” substitute “£500”;

(iii) in sub-paragraph (b), after paragraph (ii) insert—

“(iii) £25 per tCO₂ equivalent of the difference between the actual emissions and the reported emissions for target period 6.”.

(7) After regulation 16 insert—

“Publication of a financial penalty

16A.— (1) The administrator must publish the following information in relation to a financial penalty imposed on an operator under regulation 15—

(a) the name of the operator;

(b) the amount of the penalty imposed; and

(c) a description of the contravention that led to the imposition of the penalty.

(2) The information listed in paragraph (1) must be published for a period of at least one year.

(3) Paragraphs (1) and (2) do not take effect until the period specified for any appeal against the financial penalty has expired.

(4) This regulation does not apply in relation to a financial penalty imposed before 31^st December 2023.

Withdrawal, reduction or extension of time for payment of a financial penalty

16B.— (1) On or before the date by which a penalty must be paid, as specified in a notice under regulation 16, if the administrator considers it appropriate, the administrator may decide to—

(a) withdraw the penalty;

(b) reduce the penalty;

(c) allow an extension of time for payment of the penalty.

(2) If under paragraph (1)—

(a) the administrator decides to withdraw a financial penalty, the administrator must—

(i) serve a notice on the operator stating that the penalty is withdrawn; and

(ii) where information in respect of the penalty is published under regulation 16A, publish information showing that the penalty is withdrawn;

(b) the administrator decides to reduce a financial penalty, the administrator must—

(i) serve a notice on the operator modifying the notice served under regulation 16 in respect of the penalty; and

(ii) where information in respect of the penalty is published under regulation 16A, publish information showing the reduced amount of the penalty;

(c) the administrator decides to allow an extension of time for payment of a financial penalty, the administrator must serve a notice on the operator modifying the notice served under regulation 16 in respect of the penalty.”.

(8) In regulation 18 (power to terminate an agreement), after paragraph (5) insert—

“(5A) The administrator may terminate an underlying agreement so far as it applies to a facility if the party to the agreement ceases to be an eligible representative of the facility.

(5B) In paragraph (5A), “eligible representative” means, in relation to a facility, a person who—

(a) operates the facility; or

(b) is authorised by the operator to operate a facility on their behalf.”

(1)

S.I. 2012/1976; relevant amending instruments are S.I. 2013/508, S.I. 2016/1189, S.I. 2020/958 and S.I. 2020/1470.