PART 5Transfers, trading, determination and reporting

Transfers20

1

The carbon emissions reduction obligation of one generator or supplier (“person A”) may be treated as achieved in whole or part by qualifying action completed by a generator or a supplier (“person B”) (“a transfer”).

2

A transfer only has effect if approved by the Authority.

3

To obtain approval, persons A and B must—

a

apply for approval in writing to the Authority by 31st December 2012; and

b

provide to the Authority such information, including the number and type of qualifying actions in question, as the Authority may reasonably require.

4

The Authority must not approve a transfer where it has reasonable grounds to believe that, if the transfer were approved, the carbon emissions reduction obligation placed on person B will not be achieved.

5

If the Authority decides not to approve a transfer under paragraph (4) it must notify persons A and B of the reasons for that decision.

6

The completed qualifying action under a transfer does not count towards the carbon emissions reduction obligation of person B.