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Multiple heat producers, heat network and multiple consumers – how to collect data on carbon leakage exposures? - Page 3
Monday, 13 June 2011 06:00

 

Risks for heat producers

 

It is quite surprising, because the conclusion in the Guidance document that such data can be delivered by the heat distributor to the heat producer on the voluntary basis does not end the issue. Some further questions arise – is the heat distributor legally entitled to deliver such data to the heat producer assuming that the agreement between the heat distributor and heat consumer does not regulate the matter? In passing - it is quite probable, it does not regulate, because when the agreements were concluded the concept for carbon leakage exposure factor was hardly known.


Even if the said agreements provided the contractual basis for the delivery at issue, who had to be obliged to incur the costs of the data collection, aggregation and transfer? And the point for analysing the data and appropriate qualification of the heat consumer legal status - carbon leakage exposed/non exposed? What about the legal responsibility for lacking data and potential errors or deceptions? And, in general, whether the heat consumers being non-ETS entities connected to the heat network be willing to deliver data necessary to their carbon leakage status to be cleared? They seem, however, have an indirect interest in collaboration in these matters with their suppliers, because if they not, the heat supplied to the network would be more expensive, due to less advantageous carbon leakage exposure factor.


The burden of proof on the carbon leakage exposure of the heat consumer in the situation in point the Guidance Document placed on heat producers. So all the risks associated with the entire process (notwithstanding that all the data provided should, in principle, be independently verified).

 

At the end of the point 3.5 the Guidance Document n°6 states that, ‘Member States may ask for more information, if needed’. It seems that there really is a need to ask for more information as regards the said issue.

Multiple heat producers, heat network and multiple consumers – how to collect data on carbon leakage exposures?

Is the heat distributor legally entitled to deliver data on the heat consumer’s carbon leakage status to the heat producer assuming that the agreement between the heat distributor and heat consumer does not regulate the matter?

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The preparations for allocation for industrial installations are underway, the decision determining the rules governing the process has been adopted by the European Commission, even the set of guidelines has been elaborated by the consultants (guidelines on closures excepting). Seems everything OK and can we await the 1 January 2013 without anxiety? Not exactly.

In the Guidance Document n°6 on the harmonized free allocation methodology for the EU-ETS post 2012, Cross-Boundary Heat Flows, Final version issued on 14 April 2011, can be found a small trap as regards the situation described in point 3.5 relating to the multiple heat exporters and importers. The section considers the case in which multiple heat producers provide heat to a heat network that delivers heat to multiple consumers. Both producers and consumers consist of ETS installations and non-ETS entities. Given the rule for third party access (TPA) existing in some Member States also in relation to heat networks, the said situation may occur quite often.

The carbon leakage exposure factor to be used is the carbon leakage factor for non-carbon leakage exposed sectors unless evidence on the carbon leakage exposure of the heat consumer can be provided. The share of heat delivered to carbon leakage exposed heat consumers on the total heat delivered applies to all ETS installations delivering the heat.

On the page 37 the Guidance Document n°6 makes the reservation that such data can only be delivered by the heat distributor on a voluntary basis as there are no legal obligations for these entities in the context of the data collection. Following data are in principle needed and should be provided to the ETS installations concerned:

1) amount of heat to non-ETS-installations or entities (not private households, differentiated: carbon leakage/non-carbon leakage exposed) and

2) amount of heat to private households.

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It is quite surprising, because the conclusion in the Guidance document that such data can be delivered by the heat distributor to the heat producer on the voluntary basis does not end the issue. Some further questions arise – is the heat distributor legally entitled to deliver such data to the heat producer assuming that the agreement between the heat distributor and heat consumer does not regulate the matter?


Even if the said agreement provided the contractual basis for the delivery at issue, who had to obliged to incur the costs of the data collection, aggregation and transfer? And the point for analysing the data and appropriate qualification of the heat consumer legal status - carbon leakage exposed/non exposed? What about the legal responsibility for lacking data and potential errors or deceptions? And, in general, whether the heat consumers being non-ETS entities connected to the heat network be willing to deliver data necessary to their carbon leakage status to be cleared?
The burden of proof on the carbon leakage exposure of the heat consumer in the situation in point the Guidance Document placed on heat producers. So all the risks associated with the entire process.

At the end of the point 3.5 the Guidance Document n°6 states that, ‘Member States may ask for more information, if needed’. It seems that there really is a need to ask for more information as regards the said issue.

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Is the heat distributor legally entitled to deliver data on the heat consumer’s carbon leakage status to the heat producer assuming that the agreement between the heat distributor and heat consumer does not regulate the matter?

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carbon leakage status, Guidance Document n°6 on the harmonized free allocation methodology for the EU-ETS post 2012, Cross-Boundary Heat Flows, Final version issued on 14 April 2011, ETS



 

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