1.Where an application for free allocation is made by a new entrant under Article 5, the regulator must send the information set out in paragraph 2 to the UK ETS authority as soon as reasonably practicable.
2.The information is:
(a)details of the installation, including details of the greenhouse gas emissions permit in force;
(b)the information contained in the new entrant data report submitted with the application under Article 5;
(c)the historical activity levels (if any) determined under Article 17;
(d)the preliminary annual number of allowances to be allocated in respect of the installation and of each sub-installation separately, as calculated under Article 18;
(e)where the regulator has not, by virtue of Article 5(6)(c), determined historical activity levels or the preliminary annual number of allowances, the regulator's explanation;
(f)except where point (e) applies, the final annual number of allowances to be allocated in respect of each sub-installation of the installation:
(i)for the scheme year in the relevant allocation period in which the start of normal operation of the sub-installation occurs; and
(ii)where the historical activity level of the sub-installation has been determined under Article 17, for each subsequent scheme year in the relevant allocation period;
(g)except where point (e) applies, the final annual number of allowances to be allocated in respect of the installation for each scheme year in the relevant allocation period;
(h)whether or not a monitoring methodology plan has been approved in relation to the installation under Article 8.
3.The final annual number of allowances to be allocated in respect of a sub-installation for a scheme year is the preliminary annual number of allowances calculated under Article 18 multiplied by the reduction factor for the scheme year.
4.The final annual number of allowances to be allocated in respect of an installation for a scheme year is the sum of the final annual number of allowances to be allocated in respect of all sub-installations of the installation for the scheme year.
5.The UK ETS authority must as soon as reasonably practicable:
(a)assess the application for free allocation and, where relevant, the regulator's explanation under paragraph 2(e); and
(b)inform the regulator whether or not the application is valid.
6.Where the application is valid, the UK ETS authority must also:
(a)approve the final annual number of allowances, making any corrections to the historical activity levels, preliminary annual number of allowances and final annual number of allowances that the UK ETS authority considers appropriate; and
(b)inform the regulator of the matters referred to in point (a).
7.But where a monitoring methodology plan has not been approved in relation to the installation at the date on which the information set out in paragraph 2 is sent to the UK ETS authority, paragraph 6 applies only after the regulator informs the UK ETS authority that the monitoring methodology plan submitted to the regulator for approval has been approved and does not apply if the regulator informs the UK ETS authority that the monitoring methodology plan has been rejected.
8.The regulator must give notice to the operator of the installation of the following:
(a)whether or not the application is valid;
(b)if the application is not valid, the reasons why it is not valid.
9.Where the application is valid, the regulator must also give notice to the operator:
(a)of the final annual number of allowances approved under paragraph 6; or
(b)that a final annual number of allowances has not been approved because the monitoring methodology plan submitted to the regulator for approval has been rejected.
10.For the purpose of the calculations referred to in paragraphs 3 and 4, the number of allowances for sub-installations and installations must be expressed as the nearest integer, taking 0.5 as nearest to the previous integer.
11.For the purposes of this Article, the reduction factor for a scheme year set out in column 1 of table B is the value set out in the corresponding entry in column 2.
| Column 1 | Column 2 |
|---|---|
| Scheme year | Reduction factor |
| 2021, 2026 | 1 |
| 2022, 2027 | 0.978 |
| 2023, 2028 | 0.956 |
| 2024, 2029 | 0.934 |
| 2025, 2030 | 0.912 |
12.For the purposes of this Article, an application for free allocation is valid if:
F2(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)the application is F3... in accordance with this Regulation.]
Textual Amendments
F1Art. 18a inserted (31.12.2020) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), art. 2(2), Sch. 1 para. 23
F2Art. 18a(12)(a) omitted (1.1.2024 immediately after S.I. 2023/850 comes into force) by virtue of The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023 (S.I. 2023/1387), arts. 2(1), 18(2)(a)
F3Word in Art. 18a(12)(b) omitted (1.1.2024 immediately after S.I. 2023/850 comes into force) by virtue of The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023 (S.I. 2023/1387), arts. 2(1), 18(2)(b)