After article 44 insert -

"44A. Deficit notices

(1) This article applies where -

(a) the operator of an installation fails to surrender allowances equal to the installation's reportable emissions in a scheme year (the "relevant scheme year"), contrary to -

(i) article 27;

(ii) the requirements of a surrender notice under paragraph 11 of Schedule 6 (see paragraph 11(4)(b)(iii));

(iii) the requirements of a revocation notice under paragraph 12 of that Schedule (see paragraph 12(5)(b)(iii));

(b) a person who is an aircraft operator in relation to a scheme year (the "relevant scheme year") fails to surrender allowances equal to the person's aviation emissions in that year, contrary to article 34.

(2) The regulator may give a notice (a "deficit notice") to the operator of the installation or to the person.

(3) The deficit notice must set out -

(a) the relevant scheme year and the installation's reportable emissions, or the person's aviation emissions, in that year;

(b) the number of allowances (if any) surrendered in compliance with article 27, the requirements of a surrender or revocation notice or article 34 (including any surrendered after the date by which allowances were required to be surrendered);