The annex provides a rather complicated description of the allocation mechanism for the HFC quotas under the New Entrants Reserve (=NER, 11% of the total available for the relevant quota year).
In essence it involves a multi-step process in which the total quantity (in Tonnes CO2-equivalent) is divided by the number of the applicants (“maximum allowance”). All applicants that submitted an application equal or lower than this “maximum allowance” will receive the full quantity of their application; all other applicants receive the “maximum allowance”.
If there is a balance the balance is divided by the number of applications who have not received their full quantity of their application which is then apportioned according to the same mechanism as in the first step. The example below sets out the mechanism in simplified terms: