PART 7Enforcement
CHAPTER 2Civil penalties
Installations: carrying out regulated activity without permit contrary to article 2650.
(1)
Where a regulated activity that is not authorised by a permit is carried out at an installation in a scheme year, contrary to article 26, the operator of the installation is (after the end of the scheme year) liable to a civil penalty.
(2)
Subject to paragraph (3), the civil penalty is CA + (RE x CP), where—
CA is an estimate of the costs avoided by the operator in the scheme year as a result of carrying out the regulated activity without the authorisation of a permit;
RE is an estimate of the installation’s reportable emissions in the part of the scheme year during which a regulated activity that was not authorised by a permit was carried out;
CP is the carbon price for the scheme year.
(3)
When setting the amount of the civil penalty to be imposed, the regulator may increase the amount calculated under paragraph (2) by a factor designed to ensure that the amount of the civil penalty exceeds the value of any economic benefit that the operator has obtained as a result of failing to comply with article 26.
(4)
The regulator must—
(a)
estimate CA and RE under paragraph (2); and
(b)
exercise the regulator’s functions under paragraph (3),
in accordance with a direction given by the relevant national authority under section 52 of CCA 2008.
(5)
This article is subject to paragraph 7(6)(b) of Schedule 8.