# The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020, Paragraph 22: Article 18 amended (preliminary allocation to new entrants)

Extent: E+W+S+N.I.

(1) Article 18 is amended as follows.
(2) In the heading for “Allocation” substitute “ Preliminary allocation ”.
(3) Before paragraph 1 insert—
“A1 The regulator must calculate the preliminary annual number of allowances to be allocated free of charge in respect of a new entrant for scheme years in the relevant allocation period in accordance with this Article
A2 Where the start of normal operation of a new entrant is before the date on which the permit (including a permit within the meaning of GGETSR 2012) for the installation comes into force, for the purposes of this Article and Article 18a:
(a) the start of normal operation must be treated as the date on which the permit comes into force; and
(b) the activity level of the year in which the start of normal operation occurs must be treated as the activity level of that year excluding any days before the date on which the permit comes into force.”.
(4) In paragraph 1—
(a) in the first subparagraph—
(i) in the words before point (a) for the words “For the purposes of the free allocation” to “each sub-installation separately,” substitute “ Where the historical activity level of a sub-installation of the new entrant has been determined under Article 17, the preliminary annual number of allowances to be allocated free of charge in respect of the sub-installation for the first scheme year in the relevant allocation period after the year in which the start of normal operation occurs and for each subsequent scheme year in the relevant allocation period is ”;
(ii) in point (a) after “relevant historical activity level” insert “ ; and in this point “benchmark for the relevant period” means the benchmark for the relevant allocation period (as defined in Article 16(12)) adopted in accordance with Article 10a(2) of Directive 2003/87/EC ”;
(b) in the second subparagraph for “to new entrants” substitute “ in respect of new entrants under this paragraph and paragraph 2 ”.
(5) In paragraph 2—
(a) for “The preliminary” substitute “ Where the start of normal operation of a sub-installation of a new entrant occurs in a scheme year in the relevant allocation period, the preliminary ”;
(b) for “calendar year where the start of normal operation occurs” substitute “ scheme year ”.
(6) After paragraph 2 insert—
“2A Paragraph 2 applies whether or not the historical activity level of the sub-installation has been determined under Article 17.”.
(7) Omit paragraphs 4 and 5.
(8) In paragraph 6—
(a) for “1 to 5” substitute “ 1 to 3 ”;
(b) after “integer” insert “ , taking 0.5 as nearest to the previous integer ”.
(9) After paragraph 6 insert—
“7 In this Article (except as provided in paragraph 1(a)) and Article 18b, “relevant allocation period” means:
(a) in relation to an application for free allocation made under Article 5(1)(a), the 2021-2025 allocation period;
(b) in relation to an application for free allocation made under Article 5(1)(b), the 2026-2030 allocation period.”.

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Source: https://www.legislation.gov.uk/uksi/2020/1557/schedule/1/paragraph/22 (the official version)
Page: https://openlegislation.uk/greenhouse-gas-emissions-trading-scheme-amendment-order-2020/schedule-1/paragraph-22
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.