Regulation 3 Amendment to Regulation 12 of the 2012 Regulations

Regulation 12 of the 2012 Regulations (terms to be included in an underlying agreement relating to the buy-out fee) is amended as follows.

For paragraph (2)(c), substitute—

“(c)

if sub-paragraph (a)(i) applies, the amount of the fee is—

$$A\times \left(W-S\right)$$

where—

1. (i)

   A is £12 where the finding is of a failure to meet a target for target period 1 or target period 2, or £14 where the finding is of a failure to meet a target for target period 3 or target period 4;

2. (ii)

   W in units of tCO₂ equivalent represents the amount by which the emissions for the target period exceed the target; and

3. (iii)

   S in units of tCO₂ equivalent represents any surplus;”.

For paragraph (2)(d), substitute—

“(d)

if sub-paragraph (a)(ii) applies, the amount of the fee is—

$$A\times W$$

where—

1. (i)

   A is £12 where the finding is of a failure to meet a target for target period 1 or target period 2, or £14 where the finding is of a failure to meet a target for target period 3 or target period 4; and

2. (ii)

   W in units of tCO₂ equivalent represents the amount by which the emissions for the target period exceed the target;”.