Yearly calculation of the average price differences between eligible aviation fuels and fossil kerosene
Article 4
1. The average price difference between eligible aviation fuel and fossil kerosene for a given year shall be calculated as follows: Price difference(y) = price of eligible aviation fuel(y) – (price of fossil kerosene + ETS price + difference in taxation(y)) where: Price of eligible aviation fuel(y) = price of eligible aviation fuel y or eligible aviation fuel subcategory y listed in the Annex determined in accordance with paragraph 2, in EUR per tonne; Price of fossil kerosene = price of fossil kerosene Jet A1 determined in accordance with paragraph 4, in EUR per tonne; ETS price = the price of using fossil kerosene pursuant to Directive 2003/87/EC determined in accordance with paragraph 5, in EUR per tonne; Difference in taxation(y) = difference between the harmonised minimum levels of taxation on fossil kerosene and the eligible aviation fuel y, in EUR per tonne. 2. The price of eligible aviation fuels shall be determined for specific eligible aviation fuels where available, and as a minimum for the eligible aviation fuel subcategories listed in the Annex as follows: (a) where the market price is available in the EASA technical report, the price shall be the market price published in that report; (b) where the market price is not available in the EASA technical report, the price shall be determined as follows: (i) where prices reported in accordance with Article 5 that cover at a minimum 25 % of the total amount of that eligible aviation fuel or the subcategory reported by all commercial aircraft operators in that reporting period are available, the price shall be the weighted average price of the reported prices for the operators who reported the prices in accordance with Article 5; for operators that did not report the prices in accordance with Article 5, the price shall be the minimum selling price determined in accordance with paragraph 3 of this Article; (ii) where prices reported in accordance with Article 5 that cover at a minimum 25 % of the total amount of that eligible aviation fuel or the subcategory reported by all commercial aircraft operators in that reporting period are not available, the price shall be the minimum selling price determined in accordance with paragraph 3 of this Article. 3. The Commission shall determine the minimum selling price based on the best data available and taking into account relevant information available in the EASA technical report on production cost estimates and shall apply an additional margin of 10 %. 4. The price of fossil kerosene shall be the price published or to be published in the EASA technical report. If the prices are not available in the EASA technical report published or to be published by the time the Commission publishes the price differences in accordance with paragraph 7, the price of fossil kerosene shall be based on the best data available to the Commission. 5. The ETS price shall be calculated to two decimal places using the following formula: ETS price = fossil kerosene emissions factor × price of ETS emission allowance where: Fossil kerosene emissions factor = emission factor of jet kerosene as set out in Table 1 of Annex III to Implementing Regulation (EU) 2018/2066; Price of ETS emission allowance = the average price of emission allowances determined as the weighted average price of auctions carried out in accordance with delegated acts adopted pursuant to Article 10(4) of Directive 2003/87/EC during the previous calendar year as published on the common auction platform, in EUR per allowance; The ETS price shall be zero where the eligible aviation fuel is not zero-rated in accordance with Article 54c of Implementing Regulation (EU) 2018/2066 and where the eligible aviation fuel is reported on flights under point (b) of Article 1(2). 6. Where prices are not available in euro, the yearly average of the exchange rates published by the European Central Bank shall be used for the currency exchange. 7. Each year by 31 May, the Commission shall publish in the Official Journal of the European Union the price difference for the previous calendar year calculated in accordance with this Article, and the values of all the elements of the formula set out in paragraph 1.