(1) Article 16a is amended as follows.

(2) In paragraph 2 -

(a) in point (a) for "in the trading period preceding the relevant scheme year" substitute "preceding the relevant scheme year in the same allocation period as the relevant scheme year";

(b) in point (b) for "40,984,970 allowances (the flexible share)" substitute "such number of allowances from the flexible reserve under article 23A of the UK ETS Order as the UK ETS authority may determine for the allocation period";

(c) in point (c) for "in the trading period preceding the relevant scheme year" substitute "preceding the relevant scheme year in the same allocation period as the relevant scheme year".

(3) In paragraph 5 in the words before point (a) after "allocation period" insert "the number of allowances determined as FS under paragraph 2(b) and".

(4) In paragraph 6 in table A in column 2 (industry cap) -

(a) for "53,107,152" substitute "36,825,153";

(b) for "51,524,012" substitute "34,696,806";

(c) for "49,940,872" substitute "31,623,876";

(d) for "48,357,732" substitute "28,051,198";