Electricity Supply Act 1995

A scheme participant may elect to carry forward a shortfall, or part of a shortfall, for a compliance period to the next compliance period in accordance with this clause.

An election by a scheme participant to carry forward a shortfall—

must be made to the Scheme Regulator in accordance with this part, and

has no effect unless the election is accepted by the Scheme Regulator.

If a scheme participant elects to carry forward a shortfall, or part of a shortfall, the amount carried forward is not subject to a shortfall penalty for the compliance period to which the shortfall relates.

The maximum amount of a shortfall that may be carried forward to the 2028 compliance period by a scheme participant is—

20% of the scheme participant’s individual certificate target for the 2027 compliance period, or

another amount prescribed by the regulations.

The maximum amount of a shortfall that may be carried forward to another compliance period by a scheme participant is—

10% of the scheme participant’s individual certificate target in the previous compliance period, or

another amount prescribed by the regulations.

A shortfall, or part of a shortfall, may be carried forward to the next compliance period only.

A shortfall, or part of a shortfall, for the 2044 compliance period cannot be carried forward.

A scheme participant who elects to carry forward a shortfall, or part of a shortfall, to the next compliance period is not prevented from electing to carry forward a shortfall, or part of a shortfall, for that next compliance period to the following compliance period.

For the purposes of this Part, a shortfall, or part of a shortfall, for a compliance period that is carried forward to the next period is a carried forward shortfall.