166Carried forward shortfalls must be remedied

166 Carried forward shortfalls must be remedied

166 Carried forward shortfalls must be remedied

(1) A scheme participant who has a carried forward shortfall for a compliance period must remedy the carried forward shortfall in the compliance period to which the shortfall is carried forward.

(2) A scheme participant remedies a carried forward shortfall if the participant surrenders the number of certificates required for the carried forward shortfall.

(2A) An election by a scheme participant to surrender a certificate to remedy a carried forward 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.

(3) A scheme participant fails to remedy a carried forward shortfall if the participant does not surrender the number of certificates required for the carried forward shortfall.

(4) If a scheme participant fails to remedy a carried forward shortfall, the scheme participant must pay a penalty for the amount by which the carried forward shortfall exceeds the certificates surrendered by the scheme participant for the compliance period (the non-remedied amount).

(5) The penalty must be calculated as if the non-remedied amount were a shortfall for the compliance period to which the shortfall is carried forward.

(6) The penalty is payable in the same way as, and is taken to be, a shortfall penalty.

(7) To avoid doubt, a penalty payable by a scheme participant for a failure to remedy a carried forward shortfall in a compliance period is additional to a penalty payable by the scheme participant for a shortfall in the compliance period.