The Greenhouse Gas Emissions Trading Scheme Regulations 2012

[F1Adjustment of allocation: significant capacity reduction of excluded installationU.K.

This section has no associated Explanatory Memorandum

7.—(1) Sub-paragraph (2) applies where an excluded installation has had a significant capacity reduction in the period—

(a)beginning—

(i)after 30th June 2011, or

(ii)on or before that date, but where the added capacity was capable of determination only after 30th September 2011; and

(b)ending before 1st January in the entry year.

(2) Where this sub-paragraph applies, the operator must, by the relevant date, submit to the regulator a notice containing—

(a)a statement of the reduced capacity, and of the installed capacity of the sub-installation after taking into account the capacity reduction; and

(b)a statement that the data submitted under paragraph (a) have been verified.

(3) In sub-paragraph (2), the relevant date is—

(a)where the entry year is 2015, the later of—

(i)31st December 2015; or

(ii)the last day of the period of 7 months following the date of the change of capacity;

(b)where the entry year is any year after 2015, the later of—

(i)31st December in the year prior to the entry year; or

(ii)the last day of the period of 7 months following the date of the change of capacity.

(4) Once the operator has submitted the information required under sub-paragraph (2) the regulator must—

(a)calculate the activity levels for the reduced capacity of the sub-installation to which the significant capacity reduction relates in accordance with Article 18(1) of the Free Allocation Decision;

(b)calculate the preliminary annual number of allowances allocated to each sub-installation insofar as the significant capacity reduction is concerned, in accordance with Article 19(1) of the Free Allocation Decision;

(c)reduce the preliminary annual number of allowances allocated to each sub-installation by the preliminary annual number of allowances allocated to each sub-installation insofar as the significant capacity reduction is concerned, in accordance with article 21(2) of the Free Allocation Decision; and

(d)revise the preliminary total annual amount for the installation concerned in accordance with the methodology applied to determine the preliminary total annual amount prior to the significant capacity reduction.

(5) The regulator must notify the registry administrator to withhold the allocation of allowances to the operator of an installation for as long as any of the following circumstances obtain—

(a)the regulator is investigating whether or not there has been a significant capacity reduction in relation to the installation;

(b)the information required under sub-paragraph (2)—

(i)has not been submitted in accordance with that sub-paragraph; or

(ii)has been submitted but is insufficient;

(c)the operator has submitted a statement under sub-paragraph (2)(a), but has not submitted the statement under sub-paragraph (2)(b);

(d)the regulator is carrying out functions under sub-paragraph (4);

(e)a notification has been given to the European Commission pursuant to paragraph 9(3)(d) and the notified amount of allowances has not been approved by the European Commission; or

(f)a notification has been made to the registry administrator under regulation 80(11) but the necessary changes to the national allocation table have not been made.

(6) The registry administrator must comply with a notification made under sub-paragraph (5).

(7) Where sub-paragraph (5) applies, the regulator—

(a)must notify the operator of the decision to withhold allowances; and

(b)may, if the regulator considers it appropriate to do so, notify the operator that—

(i)the allocation of allowances will be permanently reduced; or

(ii)the allowances (or a proportion of them) will be issued.

(8) Where the European Commission approves the preliminary total annual amount of allowances notified under paragraph 9(1), the regulator must treat the installed capacity of the sub-installation after having had a significant capacity reduction as the sub-installation’s initial installed capacity when assessing any subsequent significant capacity change under Schedule 6.]

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