Regulation 9 Annual volumes of allowancesI1

F1Except as otherwise provided in these Regulations, the volume of allowances to be auctioned in any calendar year must be AC – F2(AFA + IC + RFS + NER + BF)F3+ T, where—

Where AFA as determined during the calendar year under paragraph (1)(b)(i) (“AFA1”) is greater that the notional number of allowances determined under paragraph (1)(b)(ii) (“AFA2”), a number of allowances equal to AFA1 minus AFA2 is to be removed from the total number of allowances to be auctioned in that calendar year, and the auctioneer must adjust the number of allowances to be auctioned at the auctions to be held during the year after AFA1 has been established as the auctioneer considers appropriate.

When AFA1 is less than AFA2, a number of allowances equal to AFA2 minus AFA1 is to be added to the total number of allowances to be auctioned in that calendar year, divided between the auctions which are to be held during that year after AFA1 has been established as the auctioneer considers appropriate.

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Any volume of allowances that may not be auctioned in a given calendar year due to the rounding required by regulation 5(1) must be accounted for in the volume of allowances to be auctioned in the subsequent calendar year.

Where the volume of allowances to be auctioned in a calendar year is increased under paragraph (3), the UK ETS authority may F11... create additional allowances for auction in that year.

For the purposes of paragraph (1)(b)(ii), the notional number of allowances to be allocated as part of the aviation free allocation in the scheme year is set out in the following table.

For the purposes of paragraph (1), for a calendar year referred to in column 1 of the following table—