Paragraph 31 Articles 26 substitutedI1

For Article 26 substitute—

“Article 26

Cessation of operations of an installation

1

This Article applies where:

(a)

an installation that is an FA installation has ceased operation; or

(b)

the greenhouse gas emissions permit of such an installation is surrendered under paragraph 11(2) of Schedule 6 to the UK ETS Order or revoked under paragraph 12(3) of that Schedule.

2

No allowances may be allocated in respect of the installation for the scheme year after the year in which the installation ceased operation or, where paragraph 1(b) applies, the surrender or revocation of the permit takes effect and for all subsequent scheme years.

3

The regulator must:

(a)

recalculate the final annual number of allowances to be allocated in respect of the installation for those scheme years as zero; and

(b)

send the calculation to the UK ETS authority.

4

The UK ETS authority must:

(a)

approve the final annual number of allowances to be allocated in respect of the installation; and

(b)

inform the regulator accordingly.

5

The regulator must give notice to the operator of the installation of the UK ETS authority's approval.”.