Part 6Civil penalties

Civil penalties: general93.

(1)

The administrator—

(a)

may impose a civil penalty in accordance with articles 97 to 106; and

(b)

where it does so, it must give written notice of such penalty (referred to in this Part as a “penalty notice”).

(2)

A penalty notice must specify—

(a)

the provision of this Order that is breached; and

(b)

information about rights of appeal.

(3)

In this Part—

“block” means the restriction of the operation of a participant in the Trading Schemes’, or an SPV manufacturer’s, account in the registry, so that the participant or SPV manufacturer may not—

(a)

trade allowances or credits;

(b)

bank or borrow CRTS allowances, within the meaning of article 9;

(c)

be treated as falling within article 13(4) or (6) (transitional allocation of CRTS allowances);

(d)

acquire CCTS allowances under article 35;

(e)

bank or borrow VRTS allowances within the meaning of article 41;

(f)

be treated as falling within article 45(4) or (6) (transitional allocation of VRTS allowances);

(g)

acquire VCTS allowances under article 67;

(h)

be treated as a low-volume CRTS participant or low-volume VRTS participant in accordance with Schedule 4; or

(i)

make an application to be a pool participant in the Trading Schemes under Schedule 5;

“financial year”, in relation to a participant in the Trading Schemes or an SPV manufacturer, has the meaning given in section 390 of the Companies Act 200617;

“publication” means to publish on a part of the registry which is accessible to the public—

(a)

the name of a participant in the Trading Schemes or an SPV manufacturer, including, where a participant is a pool participant in the Trading Schemes, the name of each member of that pool participant; and

(b)

details of the breach for which a civil penalty has been imposed;

“turnover”, in relation to a participant in the Trading Schemes or an SPV manufacturer, means its turnover as defined in section 474(1) of the Companies Act 200618, as if that section applied to participants in the Trading Schemes or SPV manufacturers, and excluding turnover arising outside the United Kingdom.

(4)

For so long as the operation of a pool participant in the Trading Schemes' account in the registry is restricted by a block, that participant continues to be treated as a pool participant in the Trading Schemes, even where the grant of an application by the administrator under Schedule 5 would otherwise be required.

(5)

In relation to a pool participant in the Trading Schemes—

(a)

its turnover for the purposes of paragraph (3) is the aggregate turnover of each of the members of the pool participant; and

(b)

a reference to its financial year is a reference to the financial year of the manufacturer identified to the administrator in accordance with—

(i)

paragraph 5(c)(i) of Schedule 5 (application to be treated as a pool participant) in the application made under that Schedule; or

(ii)

article 83(1) (updating information provided with application under Schedule 5).