(1) The number of allowances created in a scheme year may not exceed -

(a) the base for the scheme year multiplied by -

(i) if the scheme year is in the 2021-2025 allocation period, the 2021-2025 hospital and small emitter reduction factor;

(ii) if the scheme year is in the 2026-2030 allocation period, the 2026-2030 hospital and small emitter reduction factor;

(b) [deleted]

(2) But the restriction in paragraph (1) does not apply to the creation of allowances -

(a) for the flexible reserve (see article 23A);

(b) for the new entrants' reserve (see article 34G);

(c) for allocation under the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 [S.I. 2021/484, amended by S.I. 2021/513, 2021/561, 2021/917, 2023/994 and this Order. S.I. 2023/1387 also amends S.I. 2021/484, but the amendments are to a provision revoked by this Order.] or any other regulations made under section 96 of the Finance Act 2020 [2020 c. 14.].