Article 37 Cancellation of allowances and surplus surrendered allowances
The administrator must in respect of a participant cancel such quantity of allowances in the cancellation account which is equal to the participant’s CRC emissions for the relevant year of the phase—
except where sub-paragraph (b) or (c) applies, as stated in the annual report;
further to a determination under article 31(3); or
as provided under article 74(4)(a) or (5), 77(2)(a) or (3) or 78(2)(a).
Where a participant surrenders to the cancellation account more allowances (“surplus allowances”) than required under article 36(1), the surplus allowances—
must remain in the cancellation account;
subject to article 35—
are to be treated as surrendered in respect of the subsequent year (“year 2”) in which the participant is required to comply with article 35 where that year is in the same phase; and
must be cancelled by the administrator in accordance with paragraph (1) before any other allowances which are surrendered.
Where the surplus allowances exceed the quantity required to be surrendered in year 2, subject to article 35, paragraph (2)(b) applies to the years after year 2 until no surplus allowances remain.
Where—
a participant surrenders to the cancellation account surplus allowances; and
the account holder makes a request to the Secretary of State for the repayment of the balance,
the Secretary of State may repay the balance to the account holder.
Any repayment made by the Secretary of State under paragraph (4) may be subject to a deduction of any banking charges incurred during that transaction.