CHAPTER IIIAllocation rules
F1Article 16bFinal allocation at installation level for incumbent installations
1.
Where the preliminary annual number of allowances to be allocated in respect of an installation has been calculated under Article 16, the regulator must, as soon as reasonably practicable after the publication of the matters referred to in Article 16a(5):
(a)
calculate the final annual number of allowances to be allocated in respect of each installation and each sub-installation of each installation:
(i)
in the case of a deemed application for free allocation in the 2021-2025 allocation period, for each scheme year in the 2021-2025 allocation period;
(b)
send the calculation to the UK ETS authority.
F41a.
Where Article 16(1a) applies the regulator must in the case of an application for free allocation in the 2027-2030 allocation period under Article 4:
(a)
as soon as reasonably practicable after the issue of the statement referred to in Article 16a(5a)(c):
(i)
calculate the final annual number of allowances to be allocated in respect of each installation and each sub-installation of each installation for the 2027 scheme year; and
(ii)
send the calculation to the UK ETS authority;
(b)
as soon as reasonably practicable after the publication of the matters referred to in Article 16a(5a)(b):
(i)
calculate the final annual number of allowances to be allocated in respect of each installation and each sub-installation of each installation for the 2028, 2029 and 2030 scheme years;
(ii)
where an ALC adjustment applies to the sub-installation for the 2027 scheme year, make an equivalent adjustment to the final number of allowances to be allocated in respect of that sub-installation for the 2028, 2029 and 2030 scheme years and reflect this adjustment in the final number of allowances to be allocated in respect of the installation which the sub-installation forms part of; and
(iii)
send the calculation to the UK ETS authority.
2.
The final annual number of allowances to be allocated for a scheme year in respect of a sub-installation is the preliminary annual number of allowances calculated under Article 16 (including any corrections required under Article 16(11)) multiplied by:
(a)
in the case of sub-installation of an installation other than an electricity generator, the cross-sectoral correction factor for the scheme year (if any) determined under Article 16a;
(b)
in the case of a sub-installation of an electricity generator, the cross-sectoral correction factor for the scheme year determined under Article 16a or, if there is no cross-sectoral correction factor for the scheme year, the reduction factor for the scheme year (see Article 16a(6)).
3.
The final annual number of allowances to be allocated in respect of an installation for a scheme year is the sum of the final annual number of allowances to be allocated in respect of all sub-installations of the installation.
4.
The UK ETS authority must:
(a)
approve the final annual number allowances, making any corrections to the calculation that the UK ETS authority considers appropriate;
(b)
inform the regulator accordingly.
5.
For the purpose of the calculation referred to in paragraphs 2 and 3, the number of allowances for sub-installations and installations must be expressed as the nearest integer, taking 0.5 as nearest to the previous integer.
F56.
Where Article 16(15) applies (including as applied by Article 16(17)):
(a)
the regulator must:
(i)
recalculate the final annual number of allowances to be allocated in the relevant period in respect of each UK CBAM sub-installation in accordance with paragraph 2;
(ii)
where an ALC adjustment applies to the UK CBAM sub-installation for the scheme year immediately preceding the relevant period, make an equivalent adjustment to the final number of allowances referenced in point (a)(i);
(iii)
recalculate the final annual number of allowances to be allocated in the relevant period in respect of each installation that has at least one UK CBAM sub-installation, taking into account any adjustment required by point (a)(ii); and
(iv)
send the recalculation to the UK ETS authority;
(b)
after the UK ETS authority receives the recalculation, paragraph 4 applies.
7.
In this Article:
(a)
in paragraphs 1a(b) and 6 an “ALC adjustment” means an adjustment to free allocation under the Activity Level Changes Regulation approved by the UK ETS authority under Article 6a of that Regulation;
(b)
in paragraph 6 “relevant period” has the same meaning as provided for in Article 16(16), unless Article 16(17) applies in which case it has the same meaning provided for in Article 16(17).