Commission Regulation (EC) No 994/2008 (repealed)Show full title

CHAPTER IV U.K. CHECKS AND PROCESSES

SECTION 1 U.K. Blocking of accounts

Article 26 U.K. Blocking of operator holding accounts

1. If, on 1 April of each year starting in 2006, an installation's annual verified emissions for the preceding year have not been recorded in the registry, the registry administrator shall block the transfer of any allowances and Kyoto units out of the operator holding account for that installation.

2. When the installation's annual verified emissions for the year referred to in paragraph 1 have been recorded in the registry, the registry administrator shall unblock the account.

3. The registry administrator shall immediately notify the relevant account holder and the competent authority of the blocking and unblocking of each operator holding account.

4. Paragraph 1 shall not apply to the allowance surrendering process, the surrender of CERs and ERUs process and the allowance banking process.

SECTION 2 U.K. Automated checks and the data reconciliation process

Article 27 U.K. Detection of discrepancies by the CITL

1. The Central Administrator shall ensure that the CITL conducts automated checks for all processes to identify irregularities, hereinafter referred to as discrepancies, whereby the proposed process does not conform to the requirements specified under Directive 2003/87/EC and this Regulation.

2. If the automated checks referred to in paragraph 1 identify a discrepancy in a process, the Central Administrator shall immediately inform the registry administrator or administrators concerned by returning an automated response code.

3. Upon receiving a response code for a process referred to in paragraph 2, the registry administrator of the initiating registry shall terminate that process and inform the CITL thereof. The registry administrator or administrators concerned shall immediately inform the relevant account holders that the process has been terminated.

Article 28 U.K. Detection of inconsistencies by the CITL

1. The Central Administrator shall ensure that a data reconciliation process is periodically initiated by the CITL to ensure that the CITL's records of the holdings of allowances and Kyoto units matches each registry's records of the holdings of allowances and Kyoto units. For that purpose the CITL shall record all processes.

2. If during the data reconciliation process, an irregularity, hereinafter referred to as inconsistency, whereby the information regarding allowances, accounts or Kyoto units provided by a registry as part of the periodic reconciliation process differs from the information contained in either transaction log is identified, the Central Administrator shall immediately inform the registry administrator or administrators concerned. If the inconsistency is not resolved, the Central Administrator shall ensure that the CITL does not allow any further process concerning any of the allowances, accounts or Kyoto units which are the subject of the earlier inconsistency to proceed.

Article 29 U.K. Detection of discrepancies by the ITL

If the ITL, following an automated check, informs the registry administrator or administrators of a discrepancy in a process initiated by them, the registry administrator of the initiating registry shall terminate the process and inform the ITL thereof. The registry administrator or administrators concerned shall immediately inform the relevant account holders that the process has been terminated.

Article 30 U.K. Registry automated checks

Prior to and during the execution of all processes the registry administrator shall ensure that appropriate automated checks are conducted within the registry, in order to detect discrepancies and thereby terminate processes in advance of automated checks being conducted by the CITL or ITL.

SECTION 3 U.K. Execution and finalisation of processes

Article 31 U.K. Processes

1. Registries shall be capable of completing the following types of processes:

(a) processes concerning account management:

(i)

account creation process;

(ii)

account update process;

(iii)

account closure process;

(b) processes concerning verified emissions:

(i)

verified emissions entry process;

(ii)

verified emissions update process;

(c) the data reconciliation process;

(d) processes concerning transactions for generating allowances or Kyoto units:

(i)

issuance of Kyoto units process;

(ii)

issuance of allowances process;

(iii)

correction to allowances process;

(e) other processes concerning allowances:

(i)

allowance allocation process;

(ii)

allowance deletion process;

(iii)

allowance surrendering process;

(iv)

internal transfer of allowances process;

(v)

external transfer of allowances process;

(vi)

allowance banking process;

(vii)

adding AAUs to banked allowances process;

(f) other processes concerning Kyoto units:

(i)

cancellation of Kyoto units process;

(ii)

surrender of CERs and ERUs process;

(iii)

internal transfer of Kyoto units process;

(iv)

external transfer of Kyoto units process;

(v)

clearing of allowance transfers with AAUs process;

(vi)

transfer of AAUs before retirement or cancellation process;

(vii)

retirement of Kyoto units process;

(g) processes concerning the entry and update of national allocation plan tables:

(i)

national allocation plan table entry process;

(ii)

national allocation plan table update for closure process;

(iii)

national allocation plan table new entrant update process;

(iv)

national allocation plan table revision update process;

(v)

national allocation plan table replenishment of reserve process;

(h) transaction reversal process;

(i) registry functions testing process.

2. Each registry shall be capable of completing the processes in accordance with the complete message exchange sequence and the format and informational requirements described using web service description language described for that particular process in the Data Exchange Format referred to in Article 9.

Each registry shall be capable of fulfilling notifications sent by the CITL in accordance with the Data Exchange Format referred to in Article 9.

3. The registry administrator shall assign to each process a unique process identification code.

Article 32 U.K. Finalisation of processes concerning accounts, verified emissions and national allocation plan tables

All processes concerning accounts, verified emissions and national allocation plan tables shall be final when the CITL informs the initiating registry or the Community registry if the initiating registry is a Chapter VI registry that it has not detected any discrepancies in the proposal sent to it.

Article 33 U.K. Finalisation of processes concerning allowances and Kyoto units within registries

1. All processes concerning allowances except the external transfer of allowances process shall be final when the CITL informs the initiating registry that it has not detected any discrepancies in the proposal sent to it and the CITL has received confirmation from the initiating registry that the records were updated in accordance with the proposal.

2. All processes concerning Kyoto units except the external transfer of Kyoto units process and the clearing of allowance transfers with AAUs process shall be final when both the ITL and the CITL concluded that there are no discrepancies in the proposal sent to them and both the ITL and CITL have received confirmation from the initiating registry that the records were updated in accordance with the proposal.

Article 34 U.K. Finalisation of processes involving transfers between registries

1. An external transfer of allowances process shall be final when the CITL informs the acquiring registry that it has not detected any discrepancies in the proposal sent by the initiating registry and the CITL has received confirmation from the acquiring registry that it has updated its records in accordance with the initiating registry's proposal.

2. An external transfer of Kyoto units process and a clearing of allowance transfers with AAUs process shall be final when both the ITL and the CITL concluded that there are no discrepancies in the proposal sent by the initiating registry and both the ITL and CITL have received confirmation from the acquiring registry that it has updated its records in accordance with the initiating registry's proposal.

Article 35 U.K. Finalisation of the data reconciliation process

The data reconciliation process shall be final when all inconsistencies between the information contained in a registry and the information contained in the CITL for a specific time and date have been resolved, and the data reconciliation process has been successfully re-initiated and completed for that registry.

Article 36 U.K. Reversal of finalised transactions initiated in error

1. If an account holder or a registry administrator acting on behalf of the account holder unintentionally or erroneously initiated any transaction concerning allowances, or the surrender of CERs and ERUs process, it may propose to its registry administrator to carry out a reversal of the transaction in a written request duly signed by the authorised representative or representatives of the account holder that are able to initiate a transaction and posted within five working days of the finalisation of the transaction. The request shall contain a statement indicating that the transaction was initiated erroneously or unintentionally.

2. Paragraph 1 shall not apply to the external transfer of allowances process and the internal transfer of allowances process.

3. Within 40 calendar days of the finalisation of the transaction, the registry administrator may inform in writing the Central Administrator of the request and its decision to reverse the transaction.

4. The Central Administrator shall, within 40 calendar days of its receipt of the registry administrator's information referred to in paragraph 3 enable the reversal of the relevant transaction using the transaction reversal process, provided that:

(a) the request and the notification was posted within the deadlines set out in paragraphs 1 and 3;

(b) the proposed reversal only reverses the effects of the transaction considered to have been initiated unintentionally or erroneously and does not involve reversing the effects of any later transactions involving the same allowances;

(c) no operator would become non-compliant for a previous year as a result of the reversal;

(d) in the case of allowance surrendering processes, surrender of CERs and ERUs processes and allowance deletion processes, a quantity of AAU, ERUs or CERs equal to the quantities surrendered or deleted by the process were not already retired in accordance with Article 56 or cancelled in accordance with Article 58.

5. The registry administrator shall reverse the relevant transaction using the transaction reversal process within five working days of its receipt of the Central Administrator's notice indicating that the reversal was enabled in accordance with paragraph 3.

Article 37 U.K. Suspension of processes

1. Pursuant to Article 8 of Decision No 280/2004/EC, if the Secretariat to the UNFCCC informs a Member State that it does not meet the requirements allowing it to transfer Kyoto units, the Central Administrator shall suspend the ability of the Member State's registry to perform the external transfer of allowances process, and the relevant body of the Member State shall instruct the registry administrator not to initiate any transactions involving Kyoto units.

2. The Commission may instruct the Central Administrator to temporarily suspend a process referred to in Article 31(1) initiated by a registry if that process is not being executed in accordance with Articles 31 to 35 and shall immediately notify the administrator of the registry thereof.

3. The Commission may instruct the Central Administrator to temporarily suspend the communication link between a registry and the CITL or to suspend all or some of the processes referred to in Article 31(1), if that registry is not operated and maintained in accordance with the provisions of this Regulation and shall immediately notify the administrator of the registry thereof.

4. Registry administrators may request the Central Administrator to temporarily suspend the communication link between a registry and the CITL or to suspend all or some of the processes referred to in Article 31(1) for the purposes of carrying out scheduled maintenance on their registry.

5. A registry administrator may request the central administrator to reinstate the communication link between its registry and the CITL or to reinstate suspended processes if the registry administrator estimates that the outstanding issues that caused the suspension have been resolved. The central administrator shall inform the registry administrator of his decision as soon as possible. A member state may request this to be included on the agenda of the climate change committee, for views to be given to the central administrator in this matter.