S.L. 643.5 Art. 17Surrender and cancellation of allowances. 20 [S.L.

(1) From 1st January 2028 a regulated entity shall, by

31st May of each year, surrender a number of allowances that is equal to the total emissions of that regulated entity during the preceding calendar year as verified in accordance with regulation 13, or as determined by the Authority in accordance with regulation 14.

(2) Allowances issued by a competent authority of another Member State shall be recognized by the Authority for the purpose of meeting the obligations of a regulated entity under sub-regulation (1).

(3) Where necessary, and for as long as is necessary, in accordance with relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC, a regulated entity shall not surrender allowances that are issued by a Member State in respect of which there are obligations arising from Directive 2003/87/EC which are lapsing.

(4) The national registry administrator shall cancel allowances surrendered in accordance with sub-regulation (1).

(5) The national registry administrator shall cancel allowances at any time at the request of a regulated entity holding those allowances.

(6) Surrender and cancellation of allowances shall be carried out in accordance with the relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC.

(7) The Authority shall publish the name of any regulated entity which is in breach of the requirement to surrender sufficient allowances under sub-regulation (1).

(8) A regulated entity that does not surrender sufficient allowances as required under sub-regulations (1) to cover its emissions during the preceding year, or that has not yet surrendered allowances to cover its emissions during any previous year, shall be liable to the imposition of an administrative penalty of one hundred euro (€100) for each tonne of carbon dioxide equivalent emitted for which the regulated entity has not surrendered allowances. TRADING SYSTEM FOR BUILDINGS, ROAD TRANSPORT 643.05 AND ADDITIONAL SECTORS

(9) From the 1st January 2028 where, for the year in which a regulated entity does not surrender sufficient allowances to cover emissions during that year in accordance with sub-regulation (1), the annual average Harmonized European Index of Consumer Prices published indicates a percentage increase as compared to the latest Harmonized European Index of Consumer Prices published for the previous year, the administrative penalty shall be increased by the same percentage. The administrative penalty as revised pursuant to this sub-regulation shall apply to subsequent years unless further increased in accordance with the Harmonized European Index of Consumer Prices. For the purposes of this sub-regulation, each allowance not surrendered by the regulated entity for a tonne of carbon dioxide equivalent emitted shall be considered as a separate breach.

(10) The imposition of an administrative penalty as prescribed in sub-regulation (8) shall not release the regulated entity from the obligation to surrender an amount of allowances equal to those excess emissions in respect of which the administrative penalty is paid when surrendering allowances in relation to the following calendar year.

(11) Where a regulated entity fails to surrender allowances in accordance with sub-regulation (1), the national registry administrator shall not allow the transfer of allowances or any other accounting units out of the regulated entity holding account opened in respect of that installation until the regulated entity complies with the requirement to surrender allowances:

Provided that the national registry administrator shall not prevent the surrender of allowances in accordance with sub-regulation

(1) or the cancellation of allowances in accordance with sub-regulation (5).