Article 5 Meaning of “2026 incumbent”, etc.I1

United Kingdom

(1)

An installation is a “2026 incumbent” if—

(a)

the installation is either—

(i)

an FA installation for the 2021-2025 allocation period^f1; or

(ii)

an installation other than an FA installation for the 2021-2025 allocation period whose operator completes the first stage of an Article 4 application;

(b)

the installation is not included in the hospital and small emitter list for 2026-2030 or the ultra-small emitter list for 2026-2030;

(c)

the operator has not given a renunciation notice under Article 24 of the Free Allocation Regulation in respect of the installation as a whole; and

(d)

the operator does not give a renunciation notice under article 9 of this Order on or before 30th June 2025.

(2)

A 2026 incumbent referred to in paragraph (1)(a)(i) is a “type 1 2026 incumbent”.

(3)

A 2026 incumbent referred to in paragraph (1)(a)(ii) is a “type 2 2026 incumbent”.

(4)

Despite paragraph (2), a 2026 incumbent referred to in paragraph (1)(a)(i) that is an electricity generator (as defined in Article 2c(2) of the Free Allocation Regulation) is a “type 2 2026 incumbent” if—

(a)

the operator of the installation completes the first stage of an Article 4 application; and

(b)

paragraph (5) or (6) applies.

(5)

This paragraph applies if—

(a)

the documents submitted as part of the first stage of the Article 4 application are accompanied by a statement that the operator wishes the installation’s eligibility for free allocation in the 2026 allocation period to be assessed on the basis that the installation is not an electricity generator (as defined in Article 2c(3) of the Free Allocation Regulation); and

(b)

the installation is not such an electricity generator.

(6)

This paragraph applies if—

(a)

the documents submitted as part of the first stage of the Article 4 application are accompanied by a statement that the condition in Article 2b(2) of the Free Allocation Regulation will be met; and

(b)

by virtue of paragraph 3(b) of that Article, the application must be treated as made in respect of an installation that is not an electricity generator (as defined in Article 2c(3) of that Regulation) because the UK ETS authority considers that the condition will be met.

(7)

For the purpose of this Part, the question of whether an installation is an FA installation for the 2021-2025 allocation period must be determined as if article 4A(3)(a) of the UK ETS Order were omitted.

Annotations

Commencement

I1: Art. 5 in force at 31.3.2025, see art. 2

Footnotes

f1: See article 4A of S.I. 2020/1265 for the definition of “FA installation for the 2021-2025 allocation period”.