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ETS 3.2 - Application to the new entrant reserve

The New Entrant Reserve (NER) is a set aside of carbon dioxide allowances, reserved for new installations and extensions to existing permitted installations.

To apply for these allowances you must submit your application form together with either an application for a new permit (forms ETS1 and ETS2.2) or a variation to your permit (form ETS9). You will find these on our forms and guidance page:

Phase II New Entrant Reserve

Applications to the Phase II NER can be made from those installations starting new entrant activities after 31 December 2007 and before 1 January 2013.

If you have previously obtained Phase I NER allowances for new entrant activities starting before 1 July 2006, these additional allowances will have already been accounted for in your Phase II allocation contained in the Phase II NAP.

Applications for Phase I NER allowances for activities starting after 30 June 2006 are classified as 'Later Phase I New Entrants'. All such applicants will need to make a separate application to the Phase II NER using form ETS3.2 in order to obtain allowances for Phase II of the scheme.

Later Phase I New Entrants have been granted priority access to the Phase II NER and are invited to make applications from 1 May 2007.

For all other Phase II applicants, the earliest application date is 1 August 2007. All applications for the Phase II NER will require independent verification, including those from Later Phase I New Entrants, where the input data used in the benchmarking spreadsheet has changed from that used in the Phase I NER application.

Guidance on the verification of Phase II NER applications and the Verification Opinion Statement template can be found on the BERR (Department for Business, Enterprise and Regulatory Reform) website:Summary report on applications to the Phase II new entrant reserve (updated 12 July 2010)

ETS3.2

Apply for allowances from the Phase II New Entrant Reserve (NER):

Applications to the New Entrant Reserve are placed in a queue according to the date and time of receipt by the Environment Agency.

Operators wishing to apply for allowances, from either the main NER or the Good Quality Combined Heat and Power plants (GQCHP) NER are therefore recommended to consider Appendix D of the National Allocation Plan and the guidance documents provided on the BERR website.