reg 54 Failure to surrender allowances
(1) A person (“P”) is liable to the civil penalty in paragraph (2) where P fails to surrender sufficient allowances, contrary to regulation 41 .... (2) The civil penalty (“excess emissions penalty”) is the sterling equivalent of 100 Euros for each allowance that P failed so to surrender. (2A) Any— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) deemed increase in an installation's annual reportable emissions in a recovery year pursuant to paragraph 2(5) of Schedule 4, must be disregarded for the purpose of calculating the excess emissions penalty. (3) But paragraph (1) is subject to paragraphs (4) to (6). (4) Where paragraph (5) applies, P is not liable to the excess emissions penalty for a failure to surrender allowances in respect of those reportable emissions in a scheme year exceed P's verified annual reportable emissions for that year . (5) This paragraph applies where— (a) the regulator becomes aware that P's annual reportable emissions in a scheme year exceed P's verified annual reportable emissions in respect of that year; and (b) P failed to surrender a number of allowances equal to the unreported emissions by 30th April in the following scheme year. (6) Where paragraph (5) applies, P is liable to the civil penalty of the sterling equivalent of 20 Euros for each allowance that P failed to surrender in respect of the unreported emissions .... (7) In this regulation— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) “ unreported emissions ” means the emissions mentioned in paragraph (4); (ca) “ verified annual reportable emissions ” means annual reportable emissions that are— (i) verified pursuant to ... paragraph 2(3)(b) of Schedule 4; (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or (iii) determined by the regulator pursuant to regulation 44; (d) “ sterling equivalent ” means, subject to paragraph (8), the sterling equivalent converted by reference to the applicable rate of conversion; and (e) for that purpose the applicable rate is the first rate of conversion to be published in September of the year preceding the scheme year in which P is liable to the penalty in the C series of the Official Journal of the European Union, adjusted in accordance with paragraph (8). (8) If the last Harmonised Index of Consumer Prices for the member States of the European Union (“HICP”) published by Eurostat before the end of April in the year in which P failed to surrender the allowances shows an average percentage price increase as compared with the last HICP published before the end of April 2012, the sterling equivalent is increased by the same percentage. (9) Where— (a) a person was liable to a civil penalty under this regulation for a failure to surrender a number of allowances equal to the unreported emissions in any relevant year; and (b) a penalty notice has not been served in respect of that penalty, the provisions of paragraphs (4) to (7) apply in respect of such emissions. (10) In paragraph (9), “ relevant year ” means a scheme year during the years 2013 to 2018.