165Shortfalls may be carried forward

#### 165 Shortfalls may be carried forward 165 Shortfalls may be carried forward > > (1) 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. > > > (1A) An election by a scheme participant to carry forward a shortfall— > > > > > (a) must be made to the Scheme Regulator in accordance with this part, and > > > > > (b) has no effect unless the election is accepted by the Scheme Regulator. > > > (2) 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. > > > (3) The maximum amount of a shortfall that may be carried forward to the 2028 compliance period by a scheme participant is— > > > > > (a) 20% of the scheme participant’s individual certificate target for the 2027 compliance period, or > > > > > (b) another amount prescribed by the regulations. > > > (4) The maximum amount of a shortfall that may be carried forward to another compliance period by a scheme participant is— > > > > > (a) 10% of the scheme participant’s individual certificate target in the previous compliance period, or > > > > > (b) another amount prescribed by the regulations. > > > (5) A shortfall, or part of a shortfall, may be carried forward to the next compliance period only. > > > (6) A shortfall, or part of a shortfall, for the 2044 compliance period cannot be carried forward. > > > (7) 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. > > > (8) 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.