F2PART 12Civil penalties
Failures to surrender allowances contrary to Part 477
1
The penalties in paragraphs (2) and (3) apply where—
a
a participant fails to surrender sufficient allowances contrary to Part 4; and
b
that failure is apparent to the administrator at the time compliance is required,
but do not apply where a penalty is imposed under article 74(4) or (5).
2
The penalties are—
a
the participant must—
i
immediately acquire such additional allowances as are equal to the amount which should have been surrendered (“the shortfall allowances”); and
ii
surrender the shortfall allowances in accordance with Part 4;
b
a financial penalty of £40 per tCO2 of so much of the emissions represented by the shortfall allowances;
c
publication; and
d
blocking.
3
Where a participant—
a
fails to comply with paragraph (2)(a) by the 31st March after the surrender should have been made; and
b
continues in the scheme,
the shortfall allowances are added to the quantity of allowances required to be surrendered in the next year that compliance with Part 4 is required.
F14
After the end of 28th February 2022, the administrator must not impose a penalty requiring a participant to acquire and surrender additional allowances under paragraph (2)(a).
Order revoked (with savings) (1.10.2018) by The CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018 (S.I. 2018/841), art. 3(1)-(3)