Regulation 12 Terms to be included in an underlying agreement relating to the buy-out feeI1

if the administrator finds that F1a facility has failed to meet its target —

the obligation to make progress towards meeting F2the target may instead be satisfied by the payment to the administrator of a fee in accordance with sub-paragraph (b);

if sub-paragraph (a) applies, the administrator must serve a notice on the operator containing the following information—

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

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, F5£14 where the finding is of a failure to meet a target for target period 3 or target period 4 F6, F7£18 where the finding is of a failure to meet a target for target period 5 F8, or £25 where the finding is of a failure to meet a target for target period 6;

2. (ia)

   F9where the finding is of a failure to meet a target for target period 7, 8 or 9, A is the number of pounds sterling which is equal to the result of the application of the formula in paragraph (3) in respect of that target period, rounded up or down to the nearest pound;

3. (ii)

   W in units of tCO₂ equivalent represents the amount by which the emissions for the target period exceed the target; F10...

4. (iii)

   F11S, for target periods 1 to 4, in units of tCO₂ equivalent represents any surplus; F12...

5. (iv)

   F13S, for target periods 5, 6 and 7, is zero;

6. (v)

   F14S, for target period 8, in units of tCO₂ equivalent represents any surplus in respect of target period 7; and

7. (vi)

   S, for target period 9, in units of tCO₂ equivalent represents any surplus in respect of target period 7 or 8;

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

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, F16£14 where the finding is of a failure to meet a target for target period 3 or target period 4 F17, F18£18 where the finding is of a failure to meet a target for target period 5 F19, or £25 where the finding is of a failure to meet a target for target period 6; F20...

2. (ia)

   F21where the finding is of a failure to meet a target for target period 7, 8 or 9, A is the number of pounds sterling which is equal to the result of the application of the formula in paragraph (3) in respect of that target period, rounded up or down to the nearest pound; and

3. (ii)

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

if sub-paragraph (a)(i) applies, the fee must be paid on or before 1st July in the year in which the F22facility is found to have failed to meet its target;

if sub-paragraph (a)(ii) applies, the fee must be paid within 30 working days beginning with the date of the notice; and

payment of the fee is deemed to have been made when the person to whom the fee must be paid as specified in the notice receives full cleared funds.