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Commission Implementing Regulation (EU) 2019/1842Show full title
Commission Implementing Regulation (EU) 2019/1842 of 31 October 2019 laying down rules for the application of Directive 2003/87/EC of the European Parliament and of the Council as regards further arrangements for the adjustments to free allocation of emission allowances due to activity level changes
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Changes over time for: Article 5
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Changes and effects yet to be applied to Article 5:
- Regulation modified by S.I. 2020/1265, Sch. 8A para. 5 (as inserted) by S.I. 2021/1455 art. 27
- Art. 5(1) word substituted by S.I. 2020/1557 Sch. 2 para. 7(2)(a)
- Art. 5(1) words substituted by S.I. 2020/1557 Sch. 2 para. 7(2)(b)
- Art. 5(1) words substituted by S.I. 2020/1557 Sch. 2 para. 7(2)(c)
- Art. 5(2) words substituted by S.I. 2020/1557 Sch. 2 para. 7(3)(a)
- Art. 5(2) words substituted by S.I. 2020/1557 Sch. 2 para. 7(3)(b)
- Art. 5(3) words inserted by S.I. 2020/1557 Sch. 2 para. 7(4)(c)
- Art. 5(3) words substituted by S.I. 2020/1557 Sch. 2 para. 7(4)(a)
- Art. 5(3) words substituted by S.I. 2020/1557 Sch. 2 para. 7(4)(b)
- Art. 5(4) words substituted by S.I. 2020/1557 Sch. 2 para. 7(5)
- Art. 5(6) omitted by S.I. 2020/1557 Sch. 2 para. 7(6)
Changes and effects yet to be applied to the whole legislation item and associated provisions
- Signature words omitted by S.I. 2020/1557 Sch. 2 para. 10
- Art. 2.1 Art. 2 renumbered as Art. 2(1) by S.I. 2020/1557 Sch. 2 para. 3(2)
- Art. 2(2)-(4) inserted by S.I. 2020/1557 Sch. 2 para. 3(4)
- Art. 2.1(5) omitted by S.I. 2020/1557 Sch. 2 para. 3(3)(a)
- Art. 2.1(6) omitted by S.I. 2020/1557 Sch. 2 para. 3(3)(a)
- Art. 2.1(7)-(10) inserted by S.I. 2020/1557 Sch. 2 para. 3(3)(b)
- Art. 3(4)-(8) applied (with modifications) by S.I. 2020/1265, Sch. 8A para. 3(3) (as inserted) by S.I. 2023/850 art. 10(3)(c)
- Art. 3(4)(a) word omitted by S.I. 2020/1557 Sch. 2 para. 4(5)(b)(i)(aa)
- Art. 3(4)(a) words omitted by S.I. 2020/1557 Sch. 2 para. 4(5)(b)(i)(bb)
- Art. 3(4)(c) words inserted by S.I. 2020/1557 Sch. 2 para. 4(5)(b)(ii)
- Art. 3(5)-(8) inserted by S.I. 2020/1557 Sch. 2 para. 4(6)
- Art. 3a inserted by S.I. 2020/1557 Sch. 2 para. 5
- Art. 5(7) inserted by S.I. 2020/1557 Sch. 2 para. 7(7)
- Art. 5a 5b inserted by S.I. 2022/1173 art. 26
- Art. 5b heading words substituted by S.I. 2023/850 art. 17(2)
- Art. 5b(1) words substituted by S.I. 2023/850 art. 17(3)
- Art. 5c inserted by S.I. 2023/850 art. 18
- Art. 6(5) inserted by S.I. 2020/1557 Sch. 2 para. 8(6)
- Art. 6a inserted by S.I. 2020/1557 Sch. 2 para. 9
- Art. 6a(1)(a) word omitted by S.I. 2022/1173 art. 27(2)(a)
- Art. 6a(1)(b) words substituted by S.I. 2022/1173 art. 27(2)(b)
- Art. 6a(1)(c) inserted by S.I. 2022/1173 art. 27(2)(c)
- Art. 6a(2)(a) words inserted by S.I. 2022/1173 art. 27(3)(a)
- Art. 6a(2)(b) words inserted by S.I. 2022/1173 art. 27(3)(b)
- Art. 6a(2)(c) inserted by S.I. 2022/1173 art. 27(3)(c)
- Art. 6a(3)(a) words inserted by S.I. 2022/1173 art. 27(4)
Article 5U.K.Adjustments to free allocation due to activity level changes
1.Every year the competent authority shall compare the average activity level of each sub-installation, determined in accordance with Article 4, with the historical activity level initially used to determine the free allocation. When the absolute value of the difference between the average activity level and the historical activity level of that sub-installation is more than 15 %, the free allocation of allowances to that installation shall be adjusted. That adjustment shall apply as of the year following the two calendars years used for determining the average activity level, and provided that the adjustment of the annual preliminary amount of emission allowances allocated for free to the sub-installation is at least 100 emission allowances. That adjustment shall be made by increasing or decreasing the free allocation for the relevant sub-installation by the exact percentage change in the average activity level compared to the historical activity level initially used to determine the free allocation.
2.When an adjustment according to paragraph 1 has been made, during an allocation period, further adjustments can only take place if the absolute value of the difference between the average activity level and the historical activity level of that sub-installation, exceeds the nearest 5 % interval, beyond the 15 % change, which caused the previous adjustment of free allocation to that installation, by increasing or decreasing the free allocation for the relevant sub-installation by the exact percentage change in the average activity level compared to the historical activity level initially used to determine the free allocation and provided that the adjustment of the annual preliminary amount of emission allowances allocated for free to the sub-installation is at least 100 emission allowances.
3.If the increase or decrease of the average activity level of a sub-installation no longer exceeds 15 % compared to the historical activity level initially used to determine the free allocation, the free allocation of allowances to that sub-installation shall be equal to the initial allocation determined by Article 16 or 18 of Delegated Regulation (EU) 2019/331, as of the year following the two calendar years used for determining the average activity level.
4.If a sub-installation has ceased operation, the free allocation of this sub-installation shall be set to zero as of the year following the cessation of operations.
5.For new sub-installations and for new entrants, for the first three calendar years of operation the free allocation of emission allowances shall not be adjusted. For the first and second calendar years of operation, the free allocation of emission allowances shall be based on the activity level of each year respectively, for the third calendar year of operation the free allocation of emission allowances shall be based on the historical activity level used to determine free allocation.
6.The final annual amount of emission allowances allocated for free to an installation shall be the sum of emission allowances of all sub-installations calculated in accordance with Article 16 or 18, as applicable, of Delegated Regulation (EU) 2019/331.
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