The Community Emissions Trading Scheme (Allocation of Allowances for Payment) Regulations 2008

Interpretation

2.  In these Regulations—

“account holder” means an account holder, as defined in Article 2 of the Registries Regulation;

“allowance” means a Community tradeable emissions allowance;

“auction” means the process of allocation of allowances for payment by means of submission of bids as provided for by these Regulations and the Scheme;

“auction clearing price” is the price required to be paid by an account holder for an allowance at an auction and is determined in accordance with the Scheme;

“bid” means an offer to acquire allowances in such form as is required by the Scheme;

“the Directive” means Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC(1);

“Environment Agency” means the agency established under Chapter I of the Environment Act 1995(2), designated under Article 8 of the Registries Regulation and acting as the United Kingdom’s registry administrator;

“holding account” means an operator holding account created under Article 15 of the Registries Regulation, or a person holding account created under Article 19 of the Registries Regulation;

“nominated bank account” means such bank account as is nominated by the person conducting an auction, or by the person conducting an allocation for payment otherwise than by auction, for the receipt of a payment from an account holder;

“nominated holding account” means the holding account nominated by an account holder for the receipt of allowances;

“Party holding account” means the United Kingdom’s Party holding account created in accordance with Article 12 of the Registries Regulation;

“the person conducting an allocation for payment otherwise than by auction” means the Treasury, or, where the Treasury has made an appointment under regulation 10(b), the person so appointed;

“the person conducting an auction” means the Treasury, or, where the Treasury has made an appointment under regulation 3(b), the person so appointed;

“the Registries Regulation” means Commission Regulation 2216/2004/EC for a standardised and secured system of registries pursuant to the Directive and Decision 280/2004/EC of the European Parliament and the Council(3);

“relevant interest rate” means—

(a)

where payment is made in sterling, one per cent above the rate announced from time to time by the Monetary Policy Committee of the Bank of England (the “Bank”) as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets;

(b)

where payment is made in euros, one per cent above the rate announced from time to time by the Governing Council of the European Central Bank as the main refinancing operations rate, being the minimum rate at which the European Central Bank is willing to enter into transactions for providing short-term liquidity in the money markets.

“Scheme” means a scheme made by the Treasury under section 16(5) of the Finance Act 2007;

“settlement date” means the date, determined in accordance with the Scheme, by which payment in full for allowances is required to be made by an account holder.

(1)

OJ No. L275, 25.10.2003, p.32.

(2)

c. 25.

(3)

OJ No. L 386, 29.12.2004, p.1.