58.—(1) An operator of an excluded installation (“P”) is liable to the civil penalties in paragraphs (2) and (3) where P fails to comply (or comply on time) with a notification requirement under—
(a)a condition of a permit included pursuant to paragraph 3(4) or (5) of Schedule 5; or
(b)paragraph 4(1) or (2) of Schedule 5.
(2) For the first scheme year in which P fails to comply with the requirement to notify by 31st March in that year, the civil penalty is £2,500.
(3) For the first and each subsequent scheme year in which P has still failed to comply with the notification requirement by 31st October in that year, P is at the end of the following scheme year (“S”) liable to the civil penalty in paragraph (4).
(4) The civil penalty is 2 � (A + B), where—
A is £2,500;
B is the avoided compliance costs.
(5) In paragraph (4) “avoided compliance costs” means ((W – X) � Y) – Z, where—
W is the amount of annual reportable emissions arising in S;
X is the number of allowances for S to which P would have been entitled in accordance with Article 10a of the Directive, if the installation had not been an excluded installation and had been carrying out regulated activities;
Y is the carbon price for S;
Z is any penalty due under regulation 55 in respect of S.