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22. After regulation 58, insert—
58ZA.—(1) The operator of an Article 27a installation is liable to the civil penalty in sub-paragraph (2) where in any scheme year the installation exceeds the maximum amount.
(2) The civil penalty is (A – B) x C, where—
A is the reportable emissions arising in the scheme year;
B is the maximum amount;
C is the carbon price for that year.
(3) In this regulation, “maximum amount” has the meaning given in paragraph 1(a) of Schedule 5A.
58ZB.—(1) Where the regulator is satisfied that the operator of an Article 27a installation has—
(a)exceeded the maximum amount in any scheme year; and
(b)failed to notify the regulator under paragraph 4(1) of Schedule 5A,
the operator of the installation (“P”) is subject to the civil penalty in paragraph (2) in respect of any penalty year.
(2) Subject to paragraph (3), the civil penalty is A + (B x C), where—
A is the estimated amount of the costs avoided by P in any penalty year as a result of carrying out a regulated activity without the necessary permit;
B is the estimated amount of reportable emissions from the installation in the period during which a regulated activity was carried out without the necessary permit;
C is the carbon price for that penalty year.
(3) In imposing the penalty under paragraph (2), the regulator may increase the amount determined under that sub-paragraph by a percentage designed to ensure that the penalty exceeds the amount of any economic benefit that P has obtained as a result of carrying out a regulated activity without the necessary permit.
(4) The authority must exercise powers under section 40 of the Environment Act 1995(1), article 11 of the NRBW Order(2) or regulation 37 of the Northern Ireland Regulations(3) to give the regulator directions as to—
(a)the estimation by the regulator of A and B in paragraph (2); and
(b)the exercise of the regulator’s powers under paragraph (3).
(5) In this regulation—
(a)“maximum amount” has the meaning given in paragraph 1(a) of Schedule 5A;
(b)“necessary permit” means the Article 27 permit or the greenhouse gas emissions permit which P would have been required to comply with under paragraph 5(3)(b) or (4) of Schedule 5A if P had not failed to notify the regulator under paragraph 4(1) of that Schedule;
(c)“penalty year” means any scheme year during which P would have been required to comply with the conditions of the necessary permit, if P had not failed to notify the regulator under paragraph 4(1) of Schedule 5A.”.
1995 c. 25. Section 40 was amended by paragraph 43 of Schedule 3 to the Regulatory Reform (Scotland) Act 2014 (asp 3), S.I. 2011/1043 and 2013/755.
S.I. 2012/1903 (W. 230). Article 11 was amended by S.I. 2013/755 (W. 90).
S.R. (N.I.) 2003 No. 46. Regulation 37 was amended by S.R. (N.I.) 2003/496 and 2003/3311; there are other amending instruments which are not relevant.
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