1. Where the released fuel amounts of a fuel stream are used only for combustion in sectors covered by Annex III to Directive 2003/87/EC, the scope factor shall be set at 1.

Where the released fuel amounts of a fuel stream are used only for combustion in sectors covered by Chapters II and III of Directive 2003/87/EC, with the exception of installations excluded under Article 27a of that Directive, the scope factor shall be set at zero, provided that the regulated entity demonstrates that double counting referred to in Article 30f(5) of Directive 2003/87/EC was avoided.

The regulated entity shall determine a scope factor for each fuel stream either by applying the methods referred to in paragraph 2, or a default value in accordance with paragraph 3, depending on the applicable tier.

2. The regulated entity shall determine the scope factor on the basis of one or more of the following methods, in accordance with the requirements of the applicable tier as set out in Annex IIa to this Regulation:

(a) methods based on the physical distinction of fuel flows, including methods based on the distinction of geographical region or based on the use of separate measuring instruments;