F2PART 12Civil penalties

Annotations:
Amendments (Textual)

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).