Non existing dates (31 June 2015), multiple erroneous references, mess in punctuation, typographical errors – there are quite a lot of such mistakes in the current version (of 6 April 2010) of the auctioning Regulation. Beneath the list of errors of a formal nature, which can be found in the aforementioned draft of the legal text relating to auctions of EUAs of the third trading period.

On the other hand, “incomplete” Annexes I and III are not simple errors – but a result of a  concept of the chosen procedure. But it raises doubts as well.

I was surprised having found some manifest mistakes in the draft of the Regulation on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and the Council establishing a scheme for greenhouse gas emission allowances trading within the Community.

They were, in particular, in the following provisions:

- Article 30(3), page 38 – erroneous  reference to the Article 27(3);

- Article 35, page 42 – non existing date 31 June 2015;

- Article 49 third subparagraph, page 50 – refers to itself;

- Article 53(1) point f, page 53 – after the word: „allowances” there should be semicolon instead of full stop;

- Article 22(3) point a, page 31  - after the word: „Regulation” the comma is missing,  additionally, in the same sentence in the word: „its” the letter “s” is missing;

- Article 19(3), page 26 – refers to the paragraph 2 points (a) to (d), however, in the paragraph 2 there are only points (a) to (c).

By the way – talking about “errors” is not justified in the case of a specific legislative technique adopted as regards of “incomplete” Annexes I and III to the draft of the Regulation but the envisioned procedure of their complementation seems to be a bit complicated.

Annex I to the Regulation will be of utmost importance to the market participants, because it will determine the quantities of allowances scheduled to be auctioned prior to 2013 (in 2011 and 2012) and the auctioned products through which they shall be auctioned (forwards and futures with physical delivery deferred to a date no later than December 2013).

In the recital 13 to the Regulation it was mentioned that determination of the volumes of any allowances to be auctioned in 2011 and 2012 should take place “as soon as practicable following the adoption of this Regulation. The volumes so determined as well as the auctioned products through which they are to be auctioned will be listed in an Annex to this Regulation.”

The subject matter of the Annex III will, in turn, be the indication of auction platforms appointed  by Member States wishing temporary to opt-out from the uniform model of auctioning. Annex III will be complemented “when the requirements of this Regulation and Article 10(4) of Directive 2003/87/EC in line with the objectives of that Directive are satisfied.”

As a result, the idea seems a little bit unclear – the Regulation should address “incomplete” (mean empty?) schedules inserted into the Annexes I and III, the empty schedules in these Annexes will be complemented after the entry into force of the Regulation and will become the part of the said Regulation.

The above-described procedure was implemented in order to enable the chosen (in conformity with the procedure addressed by the Regulation) auction platforms to provide the Commission with technical support services with respect to the Commission's work relating to completion of any incomplete Annexes to the Regulation. Such a conclusion can be derived from the Article 31 point (a) of the draft of the Regulation.

But should it necessarily be so complicated?