The CRC Energy Efficiency Scheme Order 2013 (revoked)

• Citation: S.I. 2013/1119
• Sections: 249

Section 1 Citation and commencement

This Order may be cited as the CRC Energy Efficiency Scheme Order 2013 and comes into force on the fifth day after the day on which it is made .

Section 2 The trading scheme: phases and application

(1) This Order establishes a trading scheme in relation to scheme activities for a trading period of six phases which comprise—

(a) five consecutive phases, each of five years, where the initial phase commences on 1st April 2014; and

(b) a final phase of four years, commencing on 1st April 2039.

(2) This Order does not apply to an organisation which enjoys an exemption or relief from taxes under Schedule 1 to the International Organisations Act 1968 .

Section 3 Interpretation

In this Order—

“ the 2000 Act ” means the Freedom of Information Act 2000 ;

“ the 2010 Order ” means the CRC Energy Efficiency Scheme Order 2010 ;

“ the 2011 Order ” means the CRC Energy Efficiency Scheme (Amendment) Order 2011 ;

“ the 2012 Regulations ” means the CRC Energy Efficiency Scheme (Allocation of Allowances for Payment) Regulations 2012 ;

“Academy” has the same meaning it has in section 579 of the Education Act 1996 ;

“ account holder ” means the public body, undertaking or other person in whose name an account in the Registry is held or, after the end of 31st March 2022, the public body, undertaking or other person in whose name an account in the Registry was held at the end of 31st March 2022 ;

“ the Act ” means the Climate Change Act 2008;

“ the administrator ” has the meaning given by article 9;

“ allowance ” means a tradeable allowance issued under regulation 10 of the 2012 Regulations;

“ annual report ” means the report described in article 32;

“ annual reporting year ” means each year of the phase;

“ appeal body ” has the meaning given by article 89;

“ appellant ” means a public body or undertaking that has made an appeal under article 87;

“ applicant ” means—

a public body or group of public bodies; or

an undertaking or group of undertakings,

required to submit an application for registration as a participant under Part 2 or Schedule 5;

“ appointed practitioner ” means a person appointed under the Insolvency Act 1986 to manage—

a group member's affairs and business so far as carried on in the United Kingdom, and

that group member's property in the United Kingdom;

“ authorised person ” has the meaning given by article 66(3);

“ authorised supplier ” means—

in respect of electricity, a person who is licensed to supply electricity (or is exempt from requiring a licence to do so) as defined by—

section 64(1) of the Electricity Act 1989 ; or

Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 ;

in respect of gas, a person who is licensed to supply gas (or is exempt from requiring a licence to do so) as defined by—

section 48(1) of the Gas Act 1986 ; or

Article 6(1)(c) of the Gas (Northern Ireland) Order 1996 ;

“ blocking ” has the meaning given by article 81(3);

“ cancellation account ” means the account provided by the administrator into which allowances must be surrendered by a participant in compliance with article 36;

“ CCA ” means a climate change agreement within the meaning given in paragraph 46 of Schedule 6 to the Finance Act 2000 ;

“ CCA facility ” means a facility which is subject to a CCA target during a year of a phase;

“ CCA target ” means a target in respect of energy use or carbon emissions under a CCA;

“ charitable purpose ” has the meaning given by—

section 2 of the Charities Act 2011 in relation to England and Wales;

section 7(2) of the Charities and Trustee Investment (Scotland) Act 2005 in relation to Scotland;

section 2 of the Charities Act (Northern Ireland) 2008 in relation to Northern Ireland;

“ chief inspector ” means the chief inspector constituted under regulation 8(3) of the Pollution Prevention and Control Regulations (Northern Ireland) 2003 ;

“city college for the technology of the arts” has the same meaning it has in section 482 of the Education Act 1996, as originally enacted;

“city technology college” has the same meaning it has in section 482 of the Education Act 1996, as originally enacted;

“ civil penalty ” means a penalty which may be imposed under Part 12;

“ combined heat and power generation ” means the simultaneous generation in one process of thermal energy and electrical or mechanical energy;

“ compliance account ” means the account of a participant from which allowances must be surrendered to the cancellation account in compliance with article 36;

“ CRC ” means carbon reduction commitment;

“ CRC emissions ” has the meaning given by article 33(1);

“ CRC supplies ” has the meaning given by article 33(2);

“ day ” means a working day except in article 1 and paragraph 3 of Schedule 6;

“ domestic accommodation ” has the meaning given by paragraph 18(3) of Schedule 1;

“ enforcement notice ” has the meaning given by article 69;

“ EU ETS Directive ” means Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC ;

“ EU ETS installation ” means—

an activity or installation within scope of the EU ETS Directive; and

any additional activity not included within Annex 1 of that Directive but approved in the United Kingdom under Article 24 of that Directive;

“ first phase ” means the first phase of the trading scheme established under article 2(1) of the 2010 Order;

“franchise” and the related expressions “franchise agreement”, “franchise premises”, “ franchise supply ”, “ franchisee ” and “ franchisor ” have the meanings given in section 3 of Schedule 1;

“ government decision ” has the meaning given by paragraph 14 of Schedule 2;

“ group ” has the meaning given by—

paragraph 6 of Schedule 2, in respect of public bodies;

paragraph 1 of Schedule 3, in respect of undertakings;

“group undertaking” except where article 21 applies, has the meaning given by paragraph 1(b) of Schedule 3;

“ highest parent undertaking ” has the meaning given by paragraph 1(c) of Schedule 3;

“ independent college group ” has the meaning given by article 21(1)(b)(ii);

“ kWh ” means kilowatt hour;

“local authority” has the same meaning it has in paragraph 7 of Schedule 1 to the 2000 Act;

“ local authority decision ” has the meaning given by paragraph 16 of Schedule 2;

“maintained nursery school” has the same meaning it has in paragraph 52 of Schedule 1 to the 2000 Act ;

“maintained school” has the same meaning it has in paragraph 52 of Schedule 1 to the 2000 Act ;

“ metallurgical process ” and “ mineralogical process ” have the meanings given by paragraph 29A of Schedule 1;

“ metering device ” means (except in Schedule 9)—

in relation to England, Wales and Scotland, a device where the electricity supplied is charged for as measured by the device but not including meters allocated to the following profile classes under the Balancing and Settlement Code Procedure BSCP516 —

Domestic Unrestricted;

Domestic Economy 7;

in relation to Northern Ireland, a device where the electricity supplied is charged for as measured by the device but not including meters that measure supplies to domestic accommodation;

a device which during a year of a phase measures more than 73,200 kWh of gas supplied, in relation to the supply of gas;

“ MWh ” means megawatt hour;

“ operator ” means a person with permission under Part 4A of the Financial Services and Markets Act 2000 to carry on a regulated activity;

“ parent undertaking ” has the meaning given by paragraph 1(e) of Schedule 3;

“ participant ” means the following registered by the administrator as a participant—

a public body or group of public bodies; or

an undertaking or group of undertakings,

which carries out a scheme activity; and where a participant is a group, subject to Schedule 5, the participant constitutes the members from time to time of that group;

“ participant equivalent ” has the meaning given by paragraph 2 of Schedule 3;

“ phase ” means one of the six phases of the scheme described in article 2(1);

“ post-application period ” means the period after an application has been made in accordance with article 12 but before the first day of the first annual reporting year of a phase;

“ post-qualification period ” has the meaning given by article 27;

“ premises ” means any—

land, vehicle or vessel; or

plant which is designed to move or be moved whether on roads or otherwise;

“ principal place of activity ” means the principal place—

where the applicant, participant or representative carries on the scheme activity applicable to it; or

if an applicant or participant carries on more than one scheme activity, where it carries on the main scheme activity;

“ proper address ” means in the case of—

a body corporate or their director, secretary, clerk, person exercising management control, representative or an appointed practitioner—

the registered or principal office of that body, representative or appointed practitioner; or

the email address of the director, secretary, clerk or person exercising management control;

a partnership or a partner or person having control or management of the partnership business—

the principal office of the partnership; or

the email address of a partner or a person having that control or management;

any other person, that person's last known address, which includes an email address;

“ publication ” has the meaning given by article 81(3);

“ public function ” means any activity carried out by a public body;

“ public body ” has the meaning given in section 1 of Schedule 2;

“ qualification day ” means the last day of a qualification year;

“ qualification criteria ” means that—

qualifying electricity is supplied to an applicant for the purposes of a scheme activity; and

the amount of that qualifying electricity satisfies the qualifying amount;

“ qualification year ” means, in respect of a phase, the years commencing as shown in the following table—

Phases: qualification years commencement dates

“ qualifying amount ” means 6000 MWh or more;

“ qualifying electricity ” means electricity supplied to a public body or undertaking in accordance with sections 1 to 5 of Schedule 1, measured by a settled half hourly meter;

“ the Registry ” has the meaning given by article 50;

“ regulated activity ” means an activity specified in article 51ZA, 51ZC or 51ZE of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ;

“ renewables generation ” has the meaning given by paragraph 32 of Schedule 1;

“ representative ” means a person appointed under article 55(2);

“ ROC ” means a renewables obligation certificate issued further to an order made under—

sections 32 to 32M of the Electricity Act 1989 ; or

Articles 52 to 55F of the Energy (Northern Ireland) Order 2003 ;

“ scheme ” means the trading scheme established by this Order;

“ scheme activity ” means to carry on a business or a public function or an activity which has a charitable purpose;

“settled half hourly meter” applies in relation to a supply of electricity and means a meter which—

is able to measure electricity at least every half hour; and

enables the supplier to comply with provisions of its licence—

in relation to Great Britain, granted under section 6(1)(d) of the Electricity Act 1989 ;

in relation to Northern Ireland, granted under Article 10(1) of the Electricity (Northern Ireland) Order 1992,

to determine charges between that supplier and another licence holder in respect of the transmission and trading of wholesale electricity;

“ specified facility certificate ” means a certificate given by the Secretary of State or the Environment Agency to Her Majesty's Revenue and Customs under paragraph 44(1)(a) of Schedule 6 to the Finance Act 2000 ;

“ subsidiary undertaking ” has the meaning given by paragraph 1(e) of Schedule 3;

“ tCO 2 ” means tonne or tonnes of carbon dioxide;

“ third party ” means a person, other than a participant, for whom the administrator has opened an account in the Registry before the end of 31st March 2022 ;

“ turnover ” means—

where a participant is an undertaking or group of undertakings, its turnover as defined in section 474(1) of the Companies Act 2006 as if that section—

applied to undertakings as defined in this Order; but

did not apply to turnover arising outside the United Kingdom;

or

where a participant is a public body or group of public bodies, the revenue expenditure of the participant;

“ undertaking ” has the meaning given in paragraph 1 of Schedule 3;

“ vessel ” means, except under paragraph 24 of Schedule 1, any boat or ship;

“ working day ” means 9 am to 5 pm on Mondays to Fridays excluding—

bank holidays within the meaning of section 1 of the Banking and Financial Dealings Act 1971 , including those bank holidays in part only of the United Kingdom;

Good Friday; and

when it falls on a day that would otherwise be a working day, Christmas Day;

“ year ” means 1st April to the following 31st March, inclusive of those dates.

Section 4 Supplies and emissions

As provided under this Order, Schedule 1 (supplies and emissions) has effect concerning—

(a) whether a supply is made of electricity or gas;

(b) the amount of such a supply; and

(c) the emissions from such a supply.

Section 5 Registration and requirements of participants and others

(1) Part 2 provides for registration as a participant for a phase of the scheme.

(2) In respect of a phase a participant must comply with—

(a) Part 3 to provide annual reports on CRC supplies;

(b) Part 4 to surrender allowances equal to the participant's CRC emissions; and

(c) Part 5 to keep and audit records relating to the requirements of Part 2 to 4.

(3) The following have effect in respect of Parts 2 to 5—

(a) Schedule 2 (public bodies);

(b) Schedule 3 (undertakings and participant equivalents);

(c) Schedule 4 (information on registration);

(d) Schedule 5 (changes to participants).

(4) Part 6 provides for persons to provide information and assistance to participants and the administrator.

Section 6 Powers and duties of the administrator

The administrator has the powers and duties set out under the following Parts of this Order—

(a) Part 7 to administer the scheme;

(b) Part 8 to publish information relating to a participant's performance;

(c) Part 9 to impose charges;

(d) Part 10 to monitor compliance;

(e) Part 11 to enforce failures to comply with this Order.

Section 7 Penalties, offences, appeals, revocations, continuing effect and amendments

(1) A participant which fails to comply with this Order may be liable under—

(a) Part 12 to a civil penalty;

(b) Part 13 to a criminal penalty.

(2) Part 14 provides for appeals.

(3) Part 15 provides for revocations, continuing effect and amendments.

Section 8 Groups: liability to comply with this Order

(1) Paragraph (2) applies where an applicant or a participant is—

(a) a group of undertakings; or

(b) an independent college group.

(2) Each member of a group described in paragraph (1)—

(a) is jointly and severally liable to comply with requirements placed on the group under Parts 2 to 12;

(b) may be liable to a criminal penalty under Part 13.

(3) For a group of public bodies (except an independent college group)—

(a) the body listed in article 55(4) which is a member of that group is liable to comply with Part 2 and not any other member of the group;

(b) the body in whose name the compliance account is set up is liable to comply with requirements placed on the group under Parts 3 to 12 and not any other member of the group;

(c) subject to article 86, any member of that group may be liable to a criminal penalty under Part 13.

Section 9 The administrator

(1) Reference to “the administrator” in the provisions which appear in—

(a) column 1 of the following table, means the Environment Agency;

(b) column 2 of the following table, subject to paragraphs (2) and (3), means—

(i) the Environment Agency, in respect of England;

(ii) the Natural Resources Body for Wales, in respect of Wales;

(iii) the Scottish Environment Protection Agency, in respect of Scotland;

(iv) the chief inspector, in respect of Northern Ireland.

Table of provisions

(2) Where the administrator is a participant, reference to “the administrator” in Parts 10 to 12 means, where the participant is—

(a) the Environment Agency, the Secretary of State;

(b) the Natural Resources Body for Wales, the Welsh Ministers;

(c) the Scottish Environment Protection Agency, the Scottish Ministers;

(d) the chief inspector, the Department of the Environment.

(3) The administrator may exercise the powers in Parts 10 to 12 anywhere in the United Kingdom.

Section 10 Co-operation and provision of information

(1) The bodies constituting the administrator must—

(a) co-operate with each other; and

(b) provide each other with such of the information provided to or obtained by them under any of Parts 2 to 4, 6 to 8, 10 or 11 of this Order as they may require to enable them to carry out their duties as an administrator under this Order.

(2) The administrator must provide to a national authority such of the information described in paragraph (1)(b) as that authority may lawfully require in relation to compliance with and enforcement of this Order.

Section 11 Applications, information and charges

(1) A requirement to apply for registration as a participant means that an application for registration must—

(a) be made to the administrator and, unless otherwise agreed by the administrator, be made using the Registry; and

(b) include—

(i) the information described in Schedule 4; and

(ii) the charge for registration as a participant under article 60.

(2) When requested by the administrator, the applicant must provide such suitable and up to date evidence of identity as the administrator may require in respect of—

(a) the intended account holder of the compliance account; and

(b) the individuals who will access the compliance account.

(3) The administrator may require other information from applicants or any particular applicant in order to effect a registration.

(4) The requirements to apply for registration as a participant under this Part apply in respect of each phase.

Section 12 Time for applications

Subject to articles 26(2)(b) and 27(2) , an application for registration as a participant under this Part must be made no later than 2 months before the beginning of the phase.

Section 13 Registration and certificates

(1) Where the administrator is satisfied that an application has been duly made, it must—

(a) register the applicant as a participant;

(b) issue a certificate of registration to the participant, the certificate to be in such form as the administrator thinks fit.

(2) An applicant registered under paragraph (1) is a participant for the relevant phase, unless the administrator cancels that registration.

(3) Until the end of 31st March 2025, the administrator must maintain an up to date list of participants.

Section 14 Government departments and the devolved administrations

(1) The following public bodies must apply for registration as a participant—

(a) a government department;

(b) the Scottish Ministers;

(c) the Welsh Assembly Government;

(d) a Northern Ireland Department;

(e) a public body in respect of which a local authority decision is made.

(2) Where a public body listed in paragraph (1) is a member of a group, paragraph (1) applies to that group.

(3) Paragraph (1) is not satisfied in respect of a body described in sub-paragraphs (a) to (d) where part only of that body is registered as a participant.

Section 15 Other public bodies

(1) Paragraph (2) applies to a public body except a public body to which article 14 or chapter 3 applies.

(2) Except where a government decision provides to the contrary, for the purposes of articles 16 and 17, whether—

(a) a group exists or not; and

(b) whether a public body is or is not a member of a group,

are matters determined on the qualification day of the qualification year, whatever applied earlier in that year.

Section 16 Public bodies: applications by groups

(1) Paragraph (2) applies to a group of public bodies except a group to which article 14(2) or chapter 3 applies.

(2) Where this paragraph applies, the group must apply for registration as a participant where during the qualification year for the phase or any part of that year, it meets the qualification criteria.

Section 17 Public bodies: applications other than by groups

(1) Paragraph (2) applies to a public body which is not a member of a group and is not a body to which article 14(1) or chapter 3 applies.

(2) Where this paragraph applies, the public body must apply for registration as a participant in respect of a phase where, during the qualification year for that phase or any part of that year, it meets the qualification criteria.

Section 18 Determinations by the administrator

(1) Subject to paragraph (2), the administrator may determine whether or not a public body is a member of a group.

(2) Paragraph (1) does not apply to a public body or group to which any of the following apply—

(a) chapter 3;

(b) paragraph 7, 8 or 9 of section 2 of Schedule 2;

(c) a government decision or local authority decision.

Section 19 Universities and colleges: England

(1) This chapter applies to governing bodies of a college of a university and a university—

(a) described in Part 4 of Schedule 1 to the 2000 Act; and

(b) where the university is wholly or mainly situated in England.

(2) For the purposes of this chapter, whether a college is a college of a university is determined on the qualification day of the qualification year, whatever applied earlier in that year.

Section 20 Qualifying electricity

(1) The governing bodies of colleges of a university and the university (“the university and colleges”) are a group for the purposes of paragraph (2) whether or not those bodies have a legal identity separate from each other.

(2) Articles 21 and 22 apply where the university and colleges meet the qualification criteria.

(3) Where the university and colleges do not meet the qualification criteria, none of them are required to apply for registration as a participant in respect of a phase.

Section 21 Universities and colleges: groups

(1) Where this article applies—

(a) the governing body of a college of the university which has a legal identity separate from the governing body of the university is “an independent college”;

(b) for the purposes of article 22—

(i) the university and colleges are a group but that group does not include an independent college unless the university and colleges and the independent college otherwise agree;

(ii) an independent college which is not part of the group under paragraph (1)(b)(i) may agree with another such independent college to form a group (“an independent college group”).

(2) Any agreement under paragraph (1)(b) must be made before the group makes an application for registration.

Section 22 Applications

(1) Where this article applies, the following which exist must apply for registration as separate participants in respect of a phase—

(a) the university and colleges;

(b) an independent college group;

(c) an independent college which is not a member of one of the groups listed in sub-paragraph (a) or (b).

(2) The administrator must be notified with the application—

(a) by the university and colleges—

(i) whether or not an independent college is a member of the group; and

(ii) if not, the identity of the independent college;

(b) by an independent college or an independent college group, the identity of the university.

Section 23 Groups of undertakings

(1) This article applies to undertakings.

(2) For the purposes of articles 24 and 25—

(a) whether a group exists or not; and

(b) whether an undertaking is or is not a member of a group,

are matters determined on the qualification day of the qualification year, whatever applied earlier in that year.

(3) Subject to article 27, any change in the members of a group after the qualification day is to be ignored for the purposes of this Part.

Section 24 Undertakings: applications by groups

(1) This article applies to a group of undertakings but is subject to article 27.

(2) Subject to paragraph (4), a group must apply for registration as a participant in respect of a phase where during the qualification year for that phase, it meets the qualification criteria.

(3) Paragraph (2) applies notwithstanding the fact that an insolvency procedure is applied to a group member during the qualification year or post-qualification period.

(4) Paragraph (2) does not apply where the whole of that group has permanently ceased carrying on a scheme activity in the United Kingdom on or before the last date for making an application for registration provided by article 12 .

(5) An insolvency procedure is applied to an undertaking for the purposes of this article in the circumstances described by paragraph 120(7) or 120(9) of Schedule 6 to the Finance Act 2000 .

Section 25 Undertakings: applications other than by groups

(1) Subject to paragraph (2) and article 27, an undertaking must apply for registration as a participant in respect of a phase where—

(a) it is not a member of a group; and

(b) during the qualification year for that phase, it meets the qualification criteria.

(2) Paragraph (1) applies notwithstanding the fact that an insolvency procedure is applied to an undertaking during the qualification year or post-qualification period;

(3) Paragraph (1) does not apply where an undertaking has permanently ceased carrying on a scheme activity in the United Kingdom on or before the last date for making an application for registration provided by article 12 .

(4) An insolvency procedure is applied to an undertaking for the purposes of this article in the circumstances described by paragraph 120(7) or 120(9) of Schedule 6 to the Finance Act 2000.

Section 26 Undertakings: disaggregation

(1) This article applies where—

(a) an undertaking or a group of undertakings (“B”) is a member of a group (“A”); and

(b) at the time A applies for registration in accordance with article 12, B is not or does not include the highest parent undertaking registered in the United Kingdom that is a member of A.

(2) Paragraph (3) applies where—

(a) A applies for registration in accordance with article 11; ...

(b) B applies for registration as a participant separate from A by the last working day of April in any year of a phase; and

(c) A notifies the administrator that A agrees that B may apply for registration as a separate participant.

(3) When this paragraph applies and the applications by A and B are duly made the administrator must register A and B as separate participants.

Section 27 Changes to undertakings and groups

(1) Paragraph (2) applies where—

(a) a requirement to register applies to a group or undertaking under article 24 or 25;

(b) a change described in section 1 of Part 3 of Schedule 5 applies to that group or undertaking after the qualification day but before the group or undertaking makes an application for registration in accordance with article 12 (“the post-qualification period”).

(2) Where this paragraph applies—

(a) a group or undertaking to which article 24 or 25 would otherwise apply must instead register as a participant as provided by section 1 of Part 3 of Schedule 5; and

(b) other undertakings affected by such change must comply with that section.

Section 28 Determinations by the administrator

The administrator may determine whether or not—

(a) an undertaking is a member of a group;

(b) article 27(2) applies to a group or undertaking.

Section 29 Trustees: separate participation

(1) This article applies where—

(a) a public body or undertaking (“T”) is a trustee of a relevant trust; and

(b) T is required to register as a participant, whether on its own or as a member of a group.

(2) T may apply for registration as a separate participant in respect of any scheme activities of any relevant trust of which T is a trustee.

(3) Where—

(a) T is registered as a participant in respect the scheme activities of a relevant trust; and

(b) T would otherwise be part of a group which is a participant for the relevant phase,

T is not to be regarded as part of that group for the phase in respect of the scheme activities of the relevant trust.

(4) In this article, “ relevant trust ” means a trust where—

(a) the assets of the trust include premises to which a supply of electricity or gas is made;

(b) the trust is not managed by an operator;

(c) no beneficiary of the trust is entitled to half or more of the assets of the trust; and

(d) the trust carries on scheme activities.

Section 30 Operators: separate participation

(1) This article applies where—

(a) an undertaking (“O”) is an operator; and

(b) O is required to register as a participant, whether on its own or as a member of a group.

(2) O may apply for registration as a separate participant in respect of any relevant trust in relation to which O carries on a regulated activity.

(3) Where—

(a) O is registered as a participant in respect of a relevant trust as described in sub- paragraph (2); and

(b) O would otherwise be part of a group which is a participant for the relevant phase,

O is not to be regarded as part of that group for the phase in respect of the scheme activities of the relevant trust.

(4) In this article, “ relevant trust ” means a trust where—

(a) the assets of the trust include premises to which a supply of electricity or gas is made;

(b) no beneficiary of the trust is entitled to half or more of the assets of the trust; and

(c) the trust carries on scheme activities.

Section 31 Provision of annual reports

(1) A participant must provide to the administrator a report which complies with article 32 on its CRC supplies during an annual reporting year (“an annual report”).

(2) A participant must provide the annual report—

(a) unless otherwise agreed by the administrator, using the Registry; and

(b) by no later than the last working day of July after the end of the annual reporting year.

(3) Where by 40 days after the due date a participant has failed to provide the annual report, the administrator may determine the report.

Section 32 Annual report

(1) A participant must provide in the annual report—

(a) the amount of the CRC supplies under article 33(2);

(b) the amount of the supplies to each participant equivalent member of the group;

(c) whether or not the following apply to the participant—

(i) an estimation adjustment under paragraph 31 of section 6 of Schedule 1; or

(ii) renewables generation,

and, if so, the amount of each supply to which the adjustment applies and the amount of the renewables generation.

(2) Where the administrator receives the annual report in accordance with article 31, it must calculate the participant's CRC emissions.

Section 33 CRC emissions

(1) “ CRC emissions ” means the emissions calculated in accordance with paragraph 33 of Schedule 1 from CRC supplies.

(2) “ CRC supplies ” means the supplies of electricity and gas supplied to a participant and participant equivalent in accordance with sections 1 to 4 of Schedule 1 and the additions in section 6 of that Schedule less the deductions under section 5 of that Schedule.

(3) The lowest value of CRC emissions is zero.

Section 34 Changes affecting participants

Where changes affecting a participant take place in an annual reporting year as described in Part 1 or 2, or section 2 of Part 3, of Schedule 5—

(a) the participant; and

(b) in respect of section 2 of Part 3 of Schedule 5, undertakings which are not participants,

must comply with such of those provisions as are applicable to them.

Section 35 Validity of allowances

(1) Subject to paragraph (2), an allowance is valid for the purposes of compliance with article 36—

(a) for the year in respect of which it was issued; and

(b) for any subsequent year,

but an allowance issued in a phase is not valid in respect of CRC emissions made in a subsequent phase.

(2) Where—

(a) a participant is required to acquire and surrender additional allowances under article 74(4)(b) or 77(2)(a) in respect of an annual reporting year; and

(b) the participant holds an allowance which is valid for the following year (“year 2”),

the participant may not surrender the allowance which is valid for year 2 in order to comply with those articles.

(3) A participant must acquire the additional allowances from a special allocation or from a third party.

(4) An allowance is not valid for any purpose other than a purpose for which it is valid under paragraphs (1) and (2).

(5) In paragraph (3), “ special allocation ” means the issue of allowances conducted by the Environment Agency under regulation 10 of the 2012 Regulations.

Section 36 Allowances and CRC emissions

(1) Subject to paragraph (2), for each year of a phase, the participant must surrender a quantity of allowances from its compliance account to the cancellation account which is at least equal to the participant's CRC emissions for that year.

(2) Paragraph (1) does not apply in respect of a year where the participant's CRC emissions for that year are less than one tCO 2 .

(3) A surrender of allowances must be made by the participant—

(a) by the last working day of October after the end of the applicable year; and

(b) using the Registry.

Section 37 Cancellation of allowances and surplus surrendered allowances

(1) The administrator must in respect of a participant cancel such quantity of allowances in the cancellation account which is equal to the participant's CRC emissions for the relevant year of the phase—

(a) except where sub-paragraph (b) or (c) applies, as stated in the annual report;

(b) further to a determination under article 31(3); or

(c) as provided under article 74(4)(a) or (5), 77(2)(a) or (3) or 78(2)(a).

(2) Where a participant surrenders to the cancellation account more allowances (“surplus allowances”) than required under article 36(1), the surplus allowances—

(a) must remain in the cancellation account;

(b) subject to article 35—

(i) are to be treated as surrendered in respect of the subsequent year (“year 2”) in which the participant is required to comply with article 35 where that year is in the same phase; and

(ii) must be cancelled by the administrator in accordance with paragraph (1) before any other allowances which are surrendered.

(3) Where the surplus allowances exceed the quantity required to be surrendered in year 2, subject to article 35, paragraph (2)(b) applies to the years after year 2 until no surplus allowances remain.

(4) Where—

(a) a participant surrenders to the cancellation account surplus allowances; and

(b) the account holder makes a request before the end of 31st March 2025 to the Secretary of State for the repayment of the balance,

the Secretary of State may repay the balance to the account holder.

(4A) Where the account holder makes a request to the Secretary of State for repayment during the period beginning with 1st April 2022 and ending with 31st March 2025 with respect to any allowances held in the compliance account at the end of 31st March 2022, the Secretary of State may make a repayment to the account holder.

(5) Any repayment made by the Secretary of State under paragraph (4) or paragraph (4A) may be subject to a deduction of any banking charges incurred during that transaction.

Section 38 Allowances and trading

(1) Until the end of 31st March 2025, the administrator must maintain a record in respect of an allowance which shows—

(a) the year in which the allowance issued;

(b) the allocation in which the allowance was issued;

(c) the date of issue of the allowance;

(d) to whom the allowance was issued;

(e) the account in which the allowances are held from time to time;

(f) transfers of the allowances;

(g) when the allowance is cancelled.

(2) Before 1st April 2022, trading in allowances is permitted by participants and third parties.

Section 39 General

(1) A participant must maintain the records provided for by this Part.

(2) Those records must be kept for at least six years after the end of the scheme year to which they relate.

(3) Records must be—

(a) adequate to show to the satisfaction of the administrator that the participant has complied with its obligations under this Order;

(b) up to date and, so far as possible, kept together; and

(c) available for inspection by the administrator at any time.

Section 40 Records: general

A participant must maintain records in respect of the information—

(a) used to compile its annual report;

(b) relevant to any of the changes described in Schedule 5.

Section 41 Records: public disclosure

(1) Where a participant has informed the administrator that—

(a) it discloses publicly each year—

(i) its emissions reduction targets; and

(ii) its performance against them;

(b) a person with management control has responsibility in respect of those matters; or

(c) it operates an employee engagement programme,

the participant must maintain records of the disclosure, the person or the programme, as applicable.

(2) In paragraph (1)(c), “ employee engagement programme ” means a programme organised or supported by the participant which enables employees of that participant to make regular contributions to the ways in which the participant may reduce the emissions made or caused by the participant.

Section 42 Audit of records

(1) A participant must, on at least an annual basis, carry out audits of the records required to be maintained under this Part and do so to ensure its compliance with those requirements.

(2) The satisfactory completion of such an audit must be evidenced in writing (“an audit certificate”).

(3) The audit certificate may be in such form as the participant sees fit but must be—

(a) signed by a person who exercises management control in respect of the activities of the participant; and

(b) kept with its records.

Section 43 Supplies of electricity and gas under Part 6

In this Part except article 44, information which may be requested or required in respect of a supply of electricity or gas includes information relating to all sections of Schedule 1.

Section 44 Information on electricity and gas supplied from authorised suppliers

(1) A participant may request in writing the information under paragraph (2) from those authorised suppliers of electricity or gas that hold a licence to make such a supply.

(2) The information under this paragraph is the amount of electricity or gas supplied to the participant by an authorised supplier in——

(a) the annual reporting year in which the request is made;

(b) the alternative period.

(3) The information under paragraph (2)—

(a) may be calculated on the basis of the amount of electricity or gas supply billed to the participant during the annual reporting year or the alternative period;

(b) may cover a different 12 month period from the annual reporting year, which commences no more than 31 calendar days before the beginning of the annual reporting year or no more than 31 calendar days after the beginning of the annual reporting year.

(4) Where a supplier described in paragraph (1) receives such a request, that supplier must reply in writing within 6 weeks of the end of the annual reporting year or the alternative period to which the information relates.

(5) In this article “ alternative period ” means a period of 12 months which—

(a) commences no earlier than 31 calendar days before an annual reporting year begins; and

(b) finishes no later than 31 calendar days after an annual reporting year ends.

Section 45 Information from electricity suppliers

(1) The administrator may by notice require an electricity supplier to provide it with information as if—

(a) the notice was one provided for in paragraph 2 of Schedule 4 to the Act; but

(b) in respect of such a notice—

(i) section 50(2) of the Act did not apply; and

(ii) the modifications in paragraph (2) applied.

(2) The modifications referred to in paragraph (1) are that—

(a) the purpose for which the power may be exercised is to identify public bodies or undertakings which should or should not be participants in the scheme;

(b) reference to the environmental authority in paragraph 2 of Schedule 4 to the Act is a reference to the administrator;

(c) in paragraph 4(2) of Schedule 4 to the Act, the date referred to must not be earlier than two months after the date of the notice; and

(d) paragraphs 4(3) and 5 of that Schedule do not apply.

Section 46 Information and assistance by occupiers

(1) Where paragraph 16 of Schedule 1 applies, A may request B (where “A” and “B” are as described in that paragraph) to provide A with such reasonable assistance as A may require to comply with Part 2 or to comply with A's obligations as a participant.

(2) B must comply with the request within a reasonable time.

Section 47 Information and assistance by franchisees

(1) Where paragraph 7 of Schedule 1 applies, the franchisor may request the franchisee to provide it with such reasonable information and assistance as it may require to comply with Part 2 or to comply with the franchisor's obligations as a participant.

(2) The franchisee must comply with the request within a reasonable time.

Section 48 Information and assistance: public bodies

(1) This article applies where an applicant or a participant is a group of public bodies.

(2) In paragraph (3), “ A ” means the public body under article 55(4) or (5) in whose name the compliance account in the Registry is, or is to be, set up.

(3) A may request any other member (“B”) of the group to provide A with such reasonable information and assistance as A may require to comply with Part 2 or to comply with its obligations as a participant.

(4) B must comply with the request within a reasonable time.

Section 49 Information and assistance by administrators, receivers and insolvency practitioners

(1) Where article 24(3) applies, the group member to which an insolvency procedure is applied may request the appointed practitioner to provide it with such reasonable information and assistance as it may require to comply with its obligations as a participant.

(2) The appointed practitioner must comply with the request within a reasonable time.

Section 50 The Registry

(1) Until the end of 31st March 2022 the administrator must establish and operate an electronic system (“the Registry”) and Schedule 6 has effect.

(2) Communications between—

(a) the administrator;

(b) a participant; and

(c) a third party account holder,

must, so far as possible, take place using the Registry.

(3) The administrator—

(a) must take reasonable steps to ensure the Registry is available to those entitled to use it during each working day; and

(b) may make it available at such other times as the administrator believes reasonable.

(4) The administrator may establish administrative arrangements in relation to the operation of the Registry.