Guidance

EU ETS: charges

Charges for installation and aircraft operators and for Union Registry users.

EU ETS: Installation charges

You need to pay the following charges.

Permit application charge

You pay this when you apply for a new permit and monitoring plan. It also covers the cost of opening an account in the Union Registry.

The Environment Agency will estimate your likely annual emissions unless you can provide a verified, annual emissions figure.

Annual emissions Charge
Less than 50 kilotonnes (kt) per year £1,340
At least 50kt and no more than 500kt £2,500
More than 500kt per year £5,970

Subsistence charge

This is an annual charge and covers the Environment Agency’s costs of:

  • maintaining your permit
  • maintaining your use of the Union Registry
  • processing notifications
  • dealing with administrative or minor variations to monitoring plans
  • compliance inspections
  • providing a help desk
  • compliance audit activities if you are an excluded installation
Annual emissions Annual charge
Less the 50kt per year £2,550
At least 50kt and no more than 500kt £3,320
More than 500kt per year £4,080
Non-emitter* £980

*applies to a limited number of installations that don’t emit greenhouse gases from that part of the regulated activity carried out at the installation. It doesn’t apply to those that report zero emissions due to burning or use of biomass source streams.

If you join EU ETS part way through a year, you will be charged a portion of the subsistence charge according to the number of days left in the year. The calculation will start from the date your permit is granted or transferred.

If you surrender your permit, or it’s revoked, and this happens part way through a year, we will refund a portion of the annual subsistence charge you have paid. The calculation will be based on the number of days left in the year.

Permit variation

This charge applies when we need to carry out a technical assessment of your application to vary your permit.

Permit variation charge: £430.

Not all permit variations incur a charge. If we think that the variation is only an administrative change, you will not need to pay a charge.

If you aren’t sure whether you need to pay a variation charge email ethelp@environment-agency.gov.uk.

Permit transfer

The transfer charge is the same whether you are transferring all or part of your permit.

Permit transfer charge: £430.

Permit surrender or revocation

The charge is the same if you apply to surrender your permit or we serve a notice on you that we are revoking your permit. In this instance, we will send you an invoice.

Permit surrender or revocation charge: £670.

Apply for allowances from the New Entrants Reserve (NER)

NER application charge: £1,120.

Apply to increase your emissions target

If you are an excluded operator and you apply to increase your emissions target after an increase in capacity you will be charged £1,120. This covers the cost of your permit variation.

If the information you send in with your application is incorrect or incomplete, you may have to pay a further charge if we need to make another amendment to your target.

EU ETS: Aviation charges

Application charges

Apply for:

  • emissions plan: £750
  • benchmarking plan: £830

Subsistence charges

This is an annual charge and covers the Environment Agency’s costs of:

  • maintaining you as an aircraft operator in the EU ETS
  • processing notifications
  • maintaining your use of the Union Registry
  • dealing with administrative or minor variations to plans
  • compliance auditing
  • providing a help desk and resolving issues

The subsistence charge is made up of two parts. It has a fixed charge element called a base charge. You pay this if you are carrying out aviation activities for any part of the compliance year. This charge is as follows:

  Annual charge
Estimated emissions of less than 50kt per year £1,920
Estimated emissions between 50 and 500kt £2,490
Estimated emissions over 500kt £3,060

You also need to pay a variable charge that depends upon the length of time you have had an emissions plan in place during a compliance year.

If you qualify as a UK aircraft operator part way through a compliance year, you will be charged a pro-rata fee based on the number of days remaining in the year. The charge will start from the date on your emissions plan, not from the date you applied for the plan.

Within any one calendar year, if your emissions plan is suspended and then restarted again mid year, the variable part of your charge will not be adjusted.

The variable charges are as follows:

  Annual charge
Estimated emissions of less than 50kt per year £630
Estimated emissions between 50 and 500kt £830
Estimated emissions over 500kt £1,020

Charge to vary an aviation emissions plan

This charge applies when we need to carry out a technical assessment of your application to vary your emissions plan. It also usually applies if we have served you a variation notice.

Emissions plan variation charge: £430

Not all emissions plan variations incur a charge. If we think that the variation is only an administrative change, you will not need to pay a charge.

If you aren’t sure whether you need to pay a variation charge email:

Installations ethelp@environment-agency.gov.uk

Aviation etaviationhelp@environment-agency.gov.uk

Charge for application to the Special Reserve

You need to pay a charge of £1,120 when you submit an application for free allowances from the Special Reserve. This also covers the cost of your application for your benchmarking plan.

Determining emissions charge: all operators

In some circumstances, for example if you don’t submit your annual emissions report, the Environment Agency will charge £125 per hour to estimate your reportable annual emissions. They will send you an invoice for any costs incurred.

Union Registry charges

The cost of opening a new Operator Holding account (OHA) or Aircraft Operator Holding account (AOHA) is included in the application charge for a new permit or emissions plan.

  Charge
Open a person holding account or trading account £190
Annual subsistence charge for a person holding account or trading account £380 per annum

You need to pay the full year’s subsistence charge even if you have only held an account for part of a year.

Open a Verifier account £190

Change or nominate ARs or AARs

Operators with an OHA or AOHA don’t need to pay to change an Authorised Representative (AR) or Additional Authorised Representative (AAR).

If you are another account holder either a person holding or a trading account you don’t pay for the first 2 ARs required at account application, but any additional or replacement ARs and AARs will incur a charge of £55.

External trading platforms

External trading platforms can be connected to the Union Registry to facilitate the trading of allowances and Kyoto units between several third parties.

The Environment Agency charges £125 per hour to assess applications for external trading platform accounts. The cost of work carried out by third parties like IT consultants will be passed on to the owners of those external trading platforms.

Published 23 April 2014