Regulation 4 Amendment to insert new Regulation 12A in the 2012 Regulations

After regulation 12 of the 2012 Regulations insert—

“Terms to be included in an umbrella agreement relating to the buy-out fee

12A.

(1)

This regulation applies to an umbrella agreement if it contains terms corresponding with the terms set out in regulation 12(2).

(2)

The terms must provide that, where the administrator’s finding is of a failure to meet a target for target period 3 or target period 4, the fee is to be calculated in accordance with paragraph (3) or (4).

(3)

If the circumstances set out in regulation 12(2)(a)(i) apply, the amount of the fee is—

$$\pounds 14\times \left(W-S\right)$$

where—

1. (i)

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

2. (ii)

   S in units of tCO₂ equivalent represents any surplus.

(4)

If the circumstances set out in regulation 12(2)(a)(ii) apply, the amount of the fee is—

$$\pounds 14\times W$$

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