Frequently asked questions
Here you can find answers to the most commonly asked questions about the EU Emissions trading Scheme (EU ETS).
Fees and charges
1. Why do I have to pay subsistence charges?
The Government requires the Environment Agency to recover the costs of regulation from those that it regulates. We do this through charging schemes, which must comply with statutory and other Government rules. Under the EU ETS Regulations we are empowered to revoke the greenhouse gas emissions permit in case of failure to pay subsistence charges. An operator may not operate an installation that falls within the Scheme and for which there is no valid greenhouse gas emissions permit.
2. What does the subsistence charge represent and can I see a breakdown of costs?
The main activities the subsistence charge must cover were summarised in Chapter 3 of Department for Environment, Food and Rural Affairs (Defra) public consultation for the first amendments to the Regulations in October 2004.
3. If I opt-out will I have to pay subsistence charges? What about years two and three?
All Operators holding a greenhouse gas emissions permit on 24 January 2005 are required to pay the subsistence charge for the financial year 2004/05.
Operator's who have applied to the Department of Energy and Climate Change (DECC) to 'opt-out' of the scheme (through the UK ETS or Climate Change Agreements), may be exempted from subsistence charges during the first phase of the scheme. These provisions are set out in the consolidated EU ETS regulations April 2005. Certificates of exclusion are required for all opt-outs and these are issued by DECC.
National Allocation Plan
4. I am unhappy with the allocations that have been assigned to my installation in the National Allocation Plan. What should I do?
We are not responsible for the methodology or the allocation of allowances to installations in the NAP. Enquires should be directed by email to the Department of Energy and Climate Change (DECC):
New Entrant Reserve
5. Is my installation eligible for allowances from the New Entrant Reserve (NER)?
Rules and guidance governing eligibility for an allocation from the NER can be found on the Department of Energy and Climate Change (DECC) website:
6. I have submitted an application for allowances from the NER. What is my place in the queue?
A NER application status report is routinely published on our website. You can download the latest NER report from the following page:
7. When will I find out what allocations I will receive from my application to the New Entrant Reserve?
Applications for allowances from the New Entrant Reserve (NER) are determined in accordance with the regulations. Applications are entered into a queue system based on date of receipt and, subject to availability, are issued to eligible NER applicants. Allocations are determined using allocation methodologies developed by the Department of Energy and Climate Change (DECC) for specific industry sectors.
8. When do I need to send my fee for the New Entrant Reserve application?
Fees are specified in the consolidated EU ETS regulations and should be submitted with each New Entrant Reserve application. Applications will not be determined unless we receive the fee.
Permit Applications
9. I've just realised that my installation is captured by the scheme and should have a greenhouse gas permit. What should I do?
You should apply to us for a permit as soon as possible.
End of year reporting
10. How do I get a verifier?
Details of verifiers accredited to perform baseline verification and annual monitoring and reporting are listed on the Department for Energy and Climate Change (DECC) website at:
