Please note that NO site can use the PMOA at Milestones 4 and 5.

For any site that might fail to meet the Milestone 3.5 Target, one of the most important ways of trying to avoid the loss of your CCL discount is to apply the Product Mix and Output Algorithm (PMOA).

IIf you are intending to use the PMOA at Milestone 3.5 you must submit a pre-approval document to Defra before 30 June 2007.  If you would like the Discount Scheme to review your submission before it is sent to Defra please make sure you submit the document no later than 22 June 2007.

The PMOA is a methodology that allows you to adjust your target if energy efficiency for the site has got worse for one of the following reasons:
1. Output has fallen since the base year.
2. Product mix has changed and you make products with higher average energy intensity than in the base year.

The following information will help sites with a CCA to derive a PMOA for their site:
1. Information Sheet 20 and supplement to Information Sheet 20.

2. "Developing the PMOA - Nine Common Approaches. Nine common situations that many sites find themselves in and how to tackle applying the PMOA at each.

3. Dummy Submissions for each Common Approach. An example of how each of the nine Common Approach (CA) pre-approval documents should be presented to DEFRA.
CA1, CA2, CA3, CA5, CA6, CA7, CA8, CA9 and C10

4. Applying the PMOA - 2 Simple Examples. Examples of how to targets are adjusted.

5. Feedback from three Case Studies. Case studies were undertaken to assess how the PMOA could be applied at three sites within the food and drink industry.

For further information about Risk Management Options please refer to Information Sheet 10.