That derogation concerns the IR rather than the ATPL theory credit. The authority would need to additionally derogate FCL.025(c)(2)(i).
FCL.025
Theoretical knowledge examinations for the issue of licences and ratings
(c)
Validity period
(2) The completion of the airline transport pilot licence (ATPL) theoretical knowledge examinations will remain valid for the issue of an ATPL for a period of 7 years from the last validity date of:
(i) an IR entered in the licence; or
...