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There are currently no known outstanding effects for the The Greenhouse Gas Emissions Trading Scheme Order 2020, Section 57.
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57.—(1) This article applies where—
(a)either—
(i)a hospital-qualifying installation ceases to be an installation that primarily provides services to a hospital in a scheme year for which the installation is a hospital or small emitter; or
(ii)the reportable emissions of an installation (other than a hospital-qualifying installation) in a scheme year for which the installation is a hospital or small emitter exceed the maximum amount; and
(b)the operator of the installation fails to comply (or to comply on time) with a requirement to give notice on or before 31st March in the following year (the “default year”) under a condition of a hospital or small emitter permit included under paragraph 11(3)(a) or (4) of Schedule 7.
(2) Where the operator fails to give notice on or before 31st March in the default year, but does give notice on or before 31st October in that year, the operator is liable to a civil penalty of £2,500.
(3) Where the operator fails to give notice on or before 31st October in the default year—
(a)if there is no penalty year, the operator is liable to a civil penalty of £5,000;
(b)if there is a penalty year, the operator is liable (after the end of the last penalty year) to a civil penalty of the sum of—
(i)£5,000; and
(ii)2 x the avoided compliance costs for each penalty year.
(4) The avoided compliance costs, for each penalty year, are [F1((RE – FA) x CP) – PP], where—
RE is the installation's reportable emissions (determined as if the modification made to Article 38(2) of the Monitoring and Reporting Regulation 2018 by [F2paragraph 13(4)(a)(i)] of Schedule 7 did not apply) in the penalty year;
[F3FA is—
where—
an application in respect of the installation was made under the Free Allocation Regulation for free allocation in the same allocation period as the penalty year is in; and
the UK ETS authority informed the regulator under Article 15a(4) of that Regulation that the application was valid,
the number of tonnes of carbon dioxide equivalent represented by the final annual number of allowances that would have been allocated under Part 4A in respect of the installation for the penalty year if the installation had not been a hospital or small emitter for the penalty year, disregarding any adjustment to free allocation that might have been made under the Activity Level Changes Regulation;
in any other case, zero;]
CP is the carbon price for the penalty year;
PP is, where a penalty notice imposing a civil penalty under article 54 in respect of the penalty year has previously been given to the operator, the amount of the civil penalty.
(5) In this article—
“hospital-qualifying installation” has the meaning given in paragraph 1 of Schedule 7;
“maximum amount” has the meaning given in that paragraph;
“penalty year” means a scheme year for which the installation—
is a hospital or small emitter; but
would not have been a hospital or small emitter if, by reason of the matters referred to in paragraph (1)(a)(i) or (ii), the regulator had, in the default year, given a conversion notice as required by paragraph 23(1) to (3) of Schedule 7 to the operator of the installation.
Textual Amendments
F1Words in art. 57(4) substituted (7.2.2022) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2021 (S.I. 2021/1455), arts. 2, 18(2)(a)
F2Words in art. 57(4) substituted (1.1.2023) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2022 (S.I. 2022/1173), arts. 2, 9(2)
F3Words in art. 57(4) inserted (7.2.2022) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2021 (S.I. 2021/1455), arts. 2, 18(2)(b)
Commencement Information
I1Art. 57 in force at 12.11.2020, see art. 2(1)
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