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Article 77 Failures to surrender allowances contrary to Part 4F1

United Kingdom

(1)

The penalties in paragraphs (2) and (3) apply where—

(a)

a participant fails to surrender sufficient allowances contrary to Part 4; and

(b)

that failure is apparent to the administrator at the time compliance is required,

but do not apply where a penalty is imposed under article 74(4) or (5).

(2)

The penalties are—

(a)

the participant must—

(i)

immediately acquire such additional allowances as are equal to the amount which should have been surrendered (“the shortfall allowances”); and

(ii)

surrender the shortfall allowances in accordance with Part 4;

(b)

a financial penalty of £40 per tCO2 of so much of the emissions represented by the shortfall allowances;

(c)

publication; and

(d)

blocking.

(3)

Where a participant—

(a)

fails to comply with paragraph (2)(a) by the 31st March after the surrender should have been made; and

(b)

continues in the scheme,

the shortfall allowances are added to the quantity of allowances required to be surrendered in the next year that compliance with Part 4 is required.

(F24)

After the end of 28th February 2022, the administrator must not impose a penalty requiring a participant to acquire and surrender additional allowances under paragraph (2)(a).

Annotations

Textual amendments

F1

Order revoked (with savings) (1.10.2018) by The CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018 (S.I. 2018/841), arts. 1, 3

F2

Art. 77(4) inserted (1.10.2018) by The CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018 (S.I. 2018/841), art. 1, Sch. 1 para. 11