Statutory Instruments
RATING AND VALUATION, ENGLAND
Made
30th March 2000
Coming into force
for all purposes other than those of article 11
31st March 2000
for the purposes of article 11
1st April 2000
The Secretary of State for the Environment, Transport and the Regions, in exercise of the powers conferred on him by section 143(1) and (2) of, and paragraph 3(1) to (4) of Schedule 6 to, the Local Government Finance Act 1988(1), and of all other powers enabling him in that behalf, hereby makes the following Order, a draft of which has been laid before, and approved by resolution of, each House of Parliament:
1. This Order, which extends to England only, may be cited as the Electricity Supply Industry (Rateable Values) (England) Order 2000 and shall come into force-
(a)for all purposes other than those of article 11, on the day after the day on which it is made; and
(b)for the purposes of article 11, on 1st April 2000.
2.-(1) In this Order-
"the Act" means the Local Government Finance Act 1988; and
"year" means a chargeable financial year.
(2) This Order applies for the purposes of non-domestic rating lists compiled on 1st April 2000.
3. Where (apart from this article) any rateable value determined under this Order would include a fraction of a pound-
(a)if the fraction would exceed 50p it shall be made up to one pound;
(b)if the fraction would be 50p or less it shall be ignored.
4. In this Part-
"declared net capacity", in relation to generating plant, means the highest generation of electricity at the generator terminals which can be maintained indefinitely without causing damage to the plant, less so much of that generation as is consumed by the plant, expressed in megawatts to the nearest one hundredth part of a megawatt and calculated on the following assumption:
in relation to generating plant the sole or primary source of energy for which is wind power, that the wind speed is sufficient to power the generating plant at its highest generation of electricity;
in relation to generating plant the sole or primary source of energy for which is water power, that the water flow is sufficient to power the generating plant at its highest generation of electricity; and
in any other case, that-
the temperature of the water (if any) entering the cooling system is-
19 degrees Celsius, where the water is circulated on the hereditament for re-use in the cooling system, or
10 degrees Celsius in any other case, and
in so far as they affect the generating plant-
the air temperature is 10 degrees Celsius,
the air pressure is 1013 millibars, and
water is available at all times in adequate quantities; and
"generating plant", in relation to a hereditament, means plant in or on the hereditament which is used or available for use for the purposes of generating electricity.
5.-(1) This article applies to the class of hereditaments in relation to which the conditions in paragraph (2) are fulfilled.
(2) The conditions mentioned in paragraph (1) are that-
(a)the hereditament is entered on a local non-domestic rating list for the area of a billing authority in England;
(b)the hereditament comprises land, plant or buildings used or available for use for the purpose of generating electricity (other than by means of the burning of waste unless the waste is animal litter), where such use is the sole or primary function of the hereditament; and
(c)the generating plant in or on the hereditament-
(i)uses wind or water power as its primary source of energy, or
(ii)has a declared net capacity of 500 kilowatts or more.
(3) In determining whether the primary function of a hereditament is for the purpose of generating electricity, no account shall be taken of so much of any heat produced in or on the hereditament as is produced other than for the purpose of the generation of electricity.
6.-(1) In the case of a hereditament to which article 5 applies, paragraphs 2 to 2C of Schedule 6 to the Act(2) shall not apply, and its rateable value, in relation to any year during which the relevant list has effect, shall be an amount equal to the applicable amount.
(2) The applicable amount for the purpose of paragraph (1) is the amount produced by applying the formula
M × DNC,
where-
M is the amount set out in column (2) of the following Table in relation to the sole or primary source of energy used by that generating plant, set out in column (1), and
DNC is the declared net capacity of the generating plant in or on the hereditament (expressed to the nearest hundredth part of a megawatt).
(1) | (2) |
---|---|
Sole or primary source of energy | £ per megawatt |
The burning of coal | 9,500 |
The burning of oil | 5,000 |
The burning of natural gas where a steam turbine is used for the purposes of the generating process | 9,500 |
The burning of natural gas where a steam turbine is not used for the purposes of the generating process | 5,000 |
Nuclear fission produced by a Magnox reactor | 6,000 |
Nuclear fission not produced by a Magnox reactor | 14,000 |
Wind power | 5,000 |
Water power | 9,500 |
The burning of energy crops or animal litter | 8,900 |
The burning of gas from a landfill site | 5,000 |
Any source of energy not listed above, other than the burning of waste | 5,000 |
(3) In this article "the relevant list" means the local non-domestic rating list compiled on 1st April 2000 in which the hereditament in question falls to be shown.
7.-(1) In this Part-
"Central Lists Regulations" means the Central Rating Lists (England) Regulations 2000(3);
"the central list" means the central non-domestic rating list for England compiled on 1st April 2000;
"class of hereditaments" means the hereditaments falling to be shown in the central list in relation to a designated person by virtue of regulation 4 of and Part 2 of the Schedule to the Central Lists Regulations(4);
"designated person" means a person designated by regulation 3(1) of and named in Part 2 of the Schedule to the Central Lists Regulations;
"recalculation factor" in relation to a class of hereditaments means the factor determined in relation to that class in accordance with article 9 or 10, as the case may be;
"relevant year" means any year for which a rateable value falls to be determined in accordance with this Order and "relevant preceding year" means the year preceding a relevant year; and
"standard formula" in relation to a class of hereditaments means the formula
T + U,
where-
T is the amount specified in the Schedule to this Order in relation to that class; and
U is the recalculation factor applicable to that class in respect of the relevant year.
(2) Any reference in this Part to hereditaments occupied by a person includes a reference, in the case of unoccupied hereditaments, to hereditaments owned by that person, references to occupation being construed accordingly.
(3) Any reference in this Part or in the Schedule to a designated person by name is to the company bearing that name on 1st January 2000.
8. In the case of each class of hereditaments, paragraphs 2 to 2C of Schedule 6 to the Act shall not apply, and its rateable value-
(a)in the year beginning on 1st April 2000 shall be the amount specified in relation to it in the Schedule; and
(b)in any subsequent year shall be the amount produced by applying the standard formula in relation to that class.
9. In relation to each class of hereditaments listed in Part A of the Schedule the recalculation factor in respect of a relevant year shall be the figure produced for that class by applying the formula-
Tk - KK
where-
T is the amount specified in relation to that class in the Schedule;
k is the estimated number of circuit kilometres of main transmission line occupied by the designated person as respects that class on 31st March in the relevant preceding year; and
K is the estimated number of circuit kilometres of main transmission line occupied by that person on 31st March 2000.
10. In relation to each class of hereditaments listed in Part B of the Schedule, the recalculation factor in respect of a relevant year shall be the figure produced for that class by applying the formula-
Tv - VV
where-
T is the amount specified in relation to that class in the Schedule;
v is the estimated installed transformer capacity (measured in kilovoltamperes) of all the electricity transformation plant occupied by the designated person as respects that class on 31st March in the relevant preceding year; and
V is the estimated installed transformer capacity (measured in kilovoltamperes) of such plant on 31st March 2000.
11.-(1) Subject to paragraph (2), the following are hereby revoked-
(a)the Electricity Supply Industry (Rateable Values) Order 1994(5);
(b)the Electricity Supply Industry (Rateable Values) (Amendment) Order 1995(6); and
(c)article 2 of the Electrical Supply Industry and Water Undertakers (Rateable Values) Amendment Order 1996(7) and article 1 to the extent that it has effect for the purposes of article 2.
(2) Without prejudice to section 16(1) of the Interpretation Act 1978(8), the provisions of the Orders mentioned in paragraph (1) shall continue to have effect for the purposes of, and for purposes connected with-
(a)any alteration of a local or central non-domestic rating list compiled before 1st April 2000; or
(b)any provision made by regulations under section 58(9) (special provision for 1995 onwards) of the Act as to the chargeable amount as regards a hereditament for a relevant period as defined in that section.
Signed by authority of the Secretary of State for the Environment, Transport and the Regions
Beverley Hughes
Parliamentary Under Secretary of State,
Department of the Environment, Transport and the Regions
30th March 2000
Articles 7 to 10
Classes of hereditaments | Specified amounts in £ millions |
---|---|
PART A: Hereditaments occupied for electricity transmission | |
Hereditaments occupied by the National Grid Company plc | 180.26 |
PART B: Hereditaments occupied for electricity distribution | |
Hereditaments occupied by the following: | |
Powergen Energy plc | 54.38 |
Eastern Electricity plc | 51.42 |
London Electricity plc | 44.04 |
Manweb plc | 24.441 |
Midlands Electricity plc | 52.948 |
Northern Electric plc | 25.96 |
NORWEB plc | 35.29 |
Scottish Power UK plc | 0.53 |
SEEBOARD PLC | 29.01 |
South Western Electricity plc | 34.63 |
Southern Electric plc | 77.69 |
South Wales Electricity plc | 0.098 |
Yorkshire Electricity Group plc | 48.35 |
(This note is not part of the Order)
Under paragraph 3(1) of Schedule 6 to the Local Government Finance Act 1988, the Secretary of State may by order provide that a hereditament of a description prescribed in the Order is not to be valued for non-domestic rating on the normal basis set out in paragraphs 2 to 2C of that Schedule (that is to say, by reference to the rent a hypothetical tenant would pay for the hereditament on an annual basis), but in accordance with prescribed rules.
Under paragraph 3(2) of Schedule 6, the Secretary of State may by order provide that, in the case of non-domestic hereditaments to be shown in the central rating list for England (`central list hereditaments') the normal basis of valuation for non-domestic rating shall not apply, and that instead their rateable values shall be such as are specified in the order or determined in accordance with prescribed rules.
Article 5 of this order (which extends to England only) prescribes, in pursuance of paragraph 3(1) of Schedule 6, hereditaments used or available for use wholly or mainly for the purpose of generating electricity by means of certain descriptions of plant. Article 6 contains rules for ascertaining the rateable values of such hereditaments in the subsequent years for which the rating lists compiled on 1st April 2000 have effect.
Article 8 prescribes, in pursuance of paragraph 3(2) of Schedule 6, the rateable values of central list hereditaments used or available for use for the transmission of electricity for the year beginning on 1st April 2000. Articles 9 (transmission hereditaments on the central list for England) and 10 (distribution hereditaments on that list), provide for the annual recalculation of those rateable values for subsequent years, on the basis of a standard formula.
Article 11 revokes, subject to certain savings, with effect from 1st April 2000, the Electricity Supply Industry (Rateable Values) Order 1994, which was made under both paragraph 3(1) and 3(2) and applied in respect of years commencing on or after 1st April 1995.
1988 c. 41. Section 143(2) is amended by paragraph 72(2) of Schedule 5 to the Local Government and Housing Act 1989 (c. 42). Paragraph 3(1) of Schedule 6 is amended, and paragraphs 3(3) and 3(4) inserted, by paragraph 38(12) and (14) of Schedule 5 to the 1989 Act; and is also amended by section 2 of the Local Government and Rating Act 1997 (c. 29) See section 146(6) for the definition of "prescribed". These powers are devolved, in relation to Wales, to the National Assembly for Wales by the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672); see the reference to the Local Government Finance Act 1988 in Schedule 1.
Paragraph 2 is amended and paragraphs 2A and 2B inserted by paragraph 38(3) to (11) of Schedule 5 to the Local Government and Housing Act 1989. Paragraph 2C is inserted by section 2 of the Local Government and Rating Act 1997 (c. 29).
S.I. 2000/525.
Regulation 4 is made under section 53(2) of the Local Government Finance Act 1988.
S.I. 1994/3282, amended by S.I. 1995/962 and S.I. 1996/912. This Order continues in effect the Electricity Supply Industry (Rateable Values) Order 1989 (S.I. 1989/2475) and the Electricity Generators (Rateable Values) Order 1989 (S.I. 1989/2474) in relation to non-domestic rating lists in force before 1st April 1995.
S.I. 1995/962.
S.I. 1996/912.
Section 58 is amended by paragraph 68 of Schedule 13 to the Local Government Finance Act 1992 (c. 14), section 2 of the Non-Domestic Rating Act 1994 (c. 3) and section 1 of the Local Government and Rating Act 1997 (c. 29). Regulations under section 58 are S.I. 1994/3279, 1995/961, 1678 and 3322, 1996/911 and 3214, 1997/960 and 3017, 1999/3379 and 2000/936.