CHAPTER I

General provisions

Meaning of “electricity generator” and “relevant CHP electricity”
Article 2c
1.
In this Regulation, “electricity generator” must be construed as follows.
2.
In relation to a deemed application for free allocation in the 2021-2025 allocation period or an application for free allocation in the 2021-2025 allocation period under Article 5, “
electricity generator
” means an installation:
1. that on or after 1 January 2005 produced electricity for sale for consumption outside the installation; and
2. at which the regulated activity referred to in column 1 of the first entry in table C in Schedule 2 to the UK ETS Order (combustion of fuels) and no other regulated activity (apart from one referred to in Article 2a(8)) is carried out.
3.
In relation to an application for free allocation in the
2026 allocation period or the 2027-2030 allocation period
under Article 4 or 5, “
electricity generator
” means an installation:
1. that in the relevant period produced electricity for sale for consumption outside the installation; and
2. at which the regulated activity referred to in column 1 of the first entry in table C in Schedule 2 to the UK ETS Order (combustion of fuels) and no other regulated activity (apart from one referred to in Article 2a(8)) is carried out.
4.
For the purposes of paragraph 3(a), electricity produced for sale for consumption outside the installation in the relevant period must be ignored if:
1. it is relevant CHP electricity; or
2. it represents no more than 5% of the total electricity (not including relevant CHP electricity) produced at the installation in the relevant period.
5.
In paragraphs 3 and 4, “
relevant period
” means:
1. in relation to an application for free allocation under Article 4, the baseline period;
2. in relation to an application for free allocation under Article 5, the period beginning with the start of normal operation and ending with the last day of the year before the year in which the application is made.
6.
In this Regulation, “
relevant CHP electricity
” means, in relation to an installation, electricity produced at the installation by cogeneration at a cogeneration unit certified under the standard applying from time to time for the purposes of the Combined Heat and Power Quality Assurance Programme that produces electricity for consumption at the installation (and may also produce electricity for sale for consumption outside the installation).
Arts. 2b, 2c inserted (E.W.S.) (1.1.2024 immediately after S.I. 2023/850 comes into force) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023 (S.I. 2023/1387), arts. 2(1), 14 (which amendment was extended to N.I. (1.1.2025) by virtue of S.I. 2024/1366, arts. 2(2)(a), 45(2))
Words in Art. 2c(3) substituted (31.3.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 37(2)