Made | 11th March 2003 | ||
Laid before the House of Commons | 11th March 2003 | ||
Coming into force | 1st April 2003 |
9.
Renumber regulation 46(1) as regulation 46 and insert after the meaning given for "exempt renewable supplies" -
10.
Omit regulations 46(2), 46(3) and 46(4).
11.
In regulation 47(2) -
12.
In regulations 47(3) and 47(9), insert "biomass or" immediately before each use of the word "waste".
13.
Insert after regulation 47(5) -
14.
Omit regulation 47(14).
15.
Insert after regulation 48(1) -
16.
Insert after regulation 48(3) -
(5) The relevant Authority need not issue a Renewables LEC unless it is satisfied that the Renewables LEC, if issued, would represent electricity consumed or to be consumed in the United Kingdom.
(6) A Renewables LEC must be regarded for all purposes of this Part as only relating to the actual electricity in relation to which it was issued.".
17.
Substitute for "the relevant levy exemption certificates" in regulations 49(4)(a)(iii) and 49(4)(b)(iii) the expression "any relevant Renewables LEC (and, if different from the relevant recipient, the identity of any person to whom entitlement to that Renewables LEC is transferred)".
18.
Substitute "Renewables LEC" for "LEC" in regulations 48(2), 48(3), 49(1) and 49(3).
19.
Insert after Part IV -
Certification of electricity produced in a combined heat and power station
51B.
- (1) The relevant Authority may certify that a given MWh of electricity is QPO electricity.
(2) The relevant Authority must only certify on the basis of the most accurate figures for electricity produced in an individual station that the station's operator makes known to the Authority.
(3) The relevant Authority must disregard any figures that are made known to it or of which it becomes aware after the end of the second month following the end of the month in which the electricity is produced.
(4) Paragraph (3) does not apply to regulation 51D, regulation 51E or Schedule 2 paragraph 11 (wrongly certified electricity and periodic reconciliation).
(5) The station's operator must only make known figures for the purposes of paragraph (2) that are made in accordance with the metering requirements of CHPQA Guidance Note 15 Version 1, published by the Department for Environment, Food and Rural Affairs[9].
(6) The relevant Authority must for the purposes of paragraphs (1) and (2)-
(7) The relevant Authority must not certify any electricity produced in a station when no exemption certificate is in force for that station.
(8) Where the relevant Authority certifies under paragraph (1), it must issue a levy exemption certificate ("CHP LEC") as respects that electricity.
(9) A CHP LEC must be regarded for all purposes of this Part and Schedule 2 as only relating to the actual electricity in relation to which it was issued.
(10) Each CHP LEC must carry a unique identifying reference.
51C.
- (1) The relevant Authority must neither certify electricity nor issue a CHP LEC as respects any electricity under any of the following circumstances.
(2) The first circumstance is where the quantity of electricity in question is less than 1 MWh.
(3) The second circumstance is where the relevant Authority is not satisfied that the CHP LEC, if issued, would represent electricity consumed or to be consumed in the United Kingdom.
(4) The third circumstance is any one or more of the following-
(e) any authorised person not, on request, being granted access to any premises at any reasonable time to take updated readings from any relevant electricity meter;
(f) the operator having been notified of an assessment to a civil penalty or to penalty interest in relation to an event subject to this Part or Schedule 2 and, irrespective of any relevant review or appeal, that amount being unrecovered (for assessments, see paragraphs 106 and 111 of the Act; for review and appeal, see Part XI of the Act);
(g) any one or more of sub-paragraphs (a) to (e) not being satisfied within such time as the relevant Authority considers reasonable for the purpose in question;
(h) the relevant Authority for any reason not being satisfied that the electricity in question should be certified as QPO electricity.
51D.
- (1) If the relevant Authority becomes aware that it has issued a CHP LEC in relation to-
it shall as soon as practicable both restrict the validity of that CHP LEC to indirect supplies (see regulations 51I to 51M) and notify that restriction to the person to whom it was issued (see regulation 51B(8)).
(2) A CHP LEC so restricted is referred to in the remainder of this Part and in Schedule 2 as a "restricted CHP LEC" and any other CHP LEC is referred to as an "unrestricted CHP LEC" (but see also Schedule 2 paragraphs 8(3), 11(5) and 13(2)).
51E.
- (1) The relevant Authority shall, in carrying out its functions under this Part, have regard to the proper administration of CCL[10].
(2) The relevant Authority shall in particular, and as appropriate, act in accordance with and have regard to Schedule 2 paragraphs 8, 10 and 11.
(3) The relevant Authority must keep a record of each CHP LEC for 6 years from the date of issue.
CCL treatment dependent on certification
51F.
Electricity shall not be regarded as QPO electricity for the purposes of regulation 4(1)(a) of the Climate Change Levy (Electricity and Gas) Regulations 2001[11] (direct supplies of electricity by utility from fully exempt CHP) unless it remains the subject of an unrestricted CHP LEC.
51G.
- (1) Electricity shall not be regarded as QPO electricity for any of the following purposes unless it remains the subject of an unrestricted CHP LEC-
(2) Each of the following exemptions shall only be given effect subject to the CHP Relief Condition (see regulation 51H(1)) being fulfilled as follows-
51H.
- (1) Schedule 2 has effect and, accordingly, the CHP Relief Condition binds any person who-
(2) Paragraph 1 and regulations 51F and 51G only apply in relation to supplies that are treated as taking place on or after 1 April 2003 (see paragraphs 25 to 39 of the Act, time of supply).
(3) Regulations 51F and 51G apply in addition to regulation 60(1)(hb) (penalties relating to CHP Relief Condition)).
(4) Part III and Schedule 1 apply independently of this Part (certification, etc. in relation to excluded, exempt, half-rate and reduced-rate supplies).
Supplies pursuant to CHP declaration contract
51I.
Electricity is only "CHP electricity" for the purposes of paragraphs 20A and 20B of the Act (exemption for indirect supplies) if it remains the subject of an unrestricted CHP LEC or a restricted CHP LEC.
51J.
- (1) Any electricity that is the subject of a CHP LEC shall be regarded as never having been CHP electricity capable of being the subject of exempt CHP supplies for the purposes of paragraph 20A of the Act (indirect supplies) if one or more of the conditions prescribed in the following paragraphs are not fulfilled.
(2) The electricity must only be allocated to a supply to a person who intends it to be consumed in the United Kingdom.
(3) Should the electricity be allocated to some supply pursuant to some CHP declaration contract, the supplier must inform the relevant Authority of this fact and of the relevant CHP LEC's unique identifying reference (see regulation 51B(10)).
(4) At any time up to 6 years after the day the electricity is produced, any supplier of that electricity must on request and within such time as the relevant Authority considers reasonable provide that Authority with readily legible records relating to and detailing-
51K.
Supplies shall not be regarded as exempt CHP supplies for the purposes of paragraph 20A of the Act unless-
(b) the supplier retains a copy of each such notice for 6 years starting from the day after it is provided to the recipient;
(c) the supplier provides a copy of any such notice to the Commissioners no later than 14 days after the Commissioners request one.
51L.
The exemption provided for by paragraph 20A(1) of the Act (indirect supplies) shall only be given effect if the supplier, and each other person (if any) who is an operator in relation to any CHP electricity allocated by the supplier to supplies under the CHP declaration contract in question, has delivered a copy of the notice referred to in paragraph 20A(1)(d) of the Act (agreement to fulfil conditions) to the relevant Authority.
51M.
- (1) A supply of electricity is exempt from the levy chargeable under paragraph 5(1) of the Act, and electricity is "CHP electricity" for the purposes of paragraphs 20A and 20B of the Act, only if paragraph (2) is satisfied in relation to that electricity.
(2) The electricity must not have been produced when the station that produced it has received State aid exceeding any relevant limit in the "Community guidelines on State aid for environmental protection (2001/C 37/03)[12].."
20.
Insert immediately after regulation 60(1)(h) -
21.
Renumber the existing Schedule "Schedule 1".
22.
Insert as Schedule 2 -
3.
- (1) That record must also identify separately, according to the following categories, each MWh of QPO electricity that is an output of the station in question and allocate to each such MWh a CHP LEC issued in respect of QPO electricity.
(2) The categories are-
(3) A CHP LEC (or any part of it) that remains allocated to a supply must not be allocated to any other supply.
(4) The allocation must be made no later than the 120th day following when the supply is treated as taking place.
(5) Any restricted CHP LEC must be identified as such in the record no later than the 30th day after the one on which the notification that the relevant Authority has restricted its validity to indirect supplies is received (see regulation 51D and paragraph 11(5)).
4.
That record must also show the quantity of all electricity that is an output of the station in question but in relation to which no CHP LEC is issued (including for this purpose, and discretely identified, any renewable source electricity (see Part IV) or electricity produced when no exemption certificate is in force for the station).
5.
That record must show -
6.
That record must be kept for 6 years starting from each reconciliation day to which it is relevant (see paragraphs 10 and 13(3)).
7.
Subject to paragraph 6, that record must be made available on request and at any reasonable time to a person authorised by-
8.
- (1) This paragraph applies when paragraphs 2 to 7 are not fully met.
(2) The relevant Authority may refuse to certify or issue any CHP LEC in relation to electricity produced in the station (see regulations 51B(1) and 51B(8)).
(3) The relevant Authority may also restrict the validity of any relevant and as yet unrestricted CHP LEC to indirect supplies, in which case the relevant Authority must as soon as practicable notify that restriction to the person to whom it was issued (see regulation 51B(8)).
Reconciliation of outputs
9.
For the purposes of the following paragraphs, regard a completed calendar year as one for which 31 December is passed and an incompleted calendar year as one for which 31 December is not passed.
10.
- (1) The reconciliation day for a completed calendar year is the earlier of-
(2) A reconciliation day for an incompleted calendar year is any day in that incompleted calendar year on which revocation of the current exemption certificate takes effect pursuant to regulation 4(2) of those Regulations.
(3) The relevant Authority shall act in accordance with paragraph 11 no later than the 90th day following a reconciliation day, subject as appropriate to regulations 51C and 51D (relevant Authority neither certifying electricity nor issuing CHP LEC, or relevant Authority dealing with incorrect certification).
(4) A reconciliation day in paragraph (2) may arise irrespective of any overlap between the reconciliation span in that paragraph with the reconciliation span in paragraph (1).
11.
- (1) The relevant Authority shall determine whether insufficient or excessive CHP LECs have been issued and remain unrestricted as respects each reconciliation span, having proper regard to the difference between-
(2) If the relevant Authority determines that insufficient CHP LECs have been issued and remain unrestricted as respects a reconciliation span, it must-
issue additional CHP LECs (see regulation 51B(8)) as respects the QPO electricity outputs of the station.
(3) If the relevant Authority determines that excessive CHP LECs have been issued and remain unrestricted as respects a reconciliation span, it must act in accordance with paragraphs (4) and (5), as appropriate.
(4) If the reconciliation day arises because regulation 3(2) of the Climate Change Levy (Combined Heat and Power Stations) Exemption Certificate Regulations 2001 is met (see paragraph 10(1)(a)), the relevant Authority must treat the excess CHP LECs as being prospectively referable to figures made known to it by the operator for the purposes of regulation 51B(2) as respects production in the station after the relevant reconciliation day.
(5) If the relevant reconciliation day arises because the exemption certificate is revoked (see paragraph 10(1)(b)), the relevant Authority must restrict the validity of any excess CHP LECs to indirect supplies, in which case it must as soon as practicable notify that restriction to the person to whom the CHP LEC in question was issued or to any person appearing to control the station (see regulation 51B(8)).
(6) For the purposes of this paragraph, the relevant Authority must regard calendar year 2003 as beginning on 1 April 2003.
(7) For the purposes of regulation 51B(6) (QPO electricity referable to calendar year), the relevant Authority must not regard electricity referable to before 1 April 2003 as QPO electricity.
Monitoring and balancing obligation
12.
- (1) The CHP outputs record must never show or indicate as respects a reconciliation span-
(2) Each deficit representing 1 MWh shall be regarded as a separate breach of this paragraph for the purposes of regulation 60(1)(hb) (penalties).
(3) Paragraph (1) has effect subject to paragraphs 3(4), 3(5), 11(2) and 11(5).
(4) Paragraph (1) continues to apply after a CHP LEC is reconciled (see paragraph 13(1)).
Interpretation
13.
- (1) A CHP LEC is "reconciled" for the purposes of this Schedule only if-
(2) A CHP LEC the validity of which is restricted under paragraph 8(3) or 11(5) may be regarded as a restricted CHP LEC for the purposes of regulations 51I to 51M.
(3) The CHP outputs record is relevant to a reconciliation day to the extent that it records (or is required to record) events taking place during the reconciliation span relating to that reconciliation day (see paragraphs 6, 10(1) and 10(2)).
(4) See also regulation 51A.".
M J ELAND
Commissioner of Customs and Excise
New King's Beam House, London SE1 9PJ
11 March 2003
[2] S.I. 2001/838; amended by S.I. 2002/1152.back
[3] Regulation 2(1) of S.I. 2001/838, which these Regulations amend, provides that "the Act" refers to Schedule 6 to the Finance Act 2000.back
[5] Paragraph 20A (and paragraph 20B) inserted by section 123 of the Finance Act 2002 (c. 23).back
[8] See S.I. 2001/1140 regulation 5(2) (specified limit above which supplies of electricity from partly exempt CHP not exempt).back
[9] Version 1 posted on 31 January 2003 and available at http://www.chpqa.com. The metering requirements are in GN 15.7.back
[10] Regulation 2(1) of S.I. 2001/838, which these Regulations amend, provides that "CCL" refers to climate change levy.back
[12] OJ C 37, 3.2.2001, p. 3; available also on the World Wide Web at http://europa.eu.int.back
[15] See S.I. 2003/603 (C. 31); the day appointed for the exemption is 1 April 2003.back
[16] See Part IV of the General Regulations.back
[17] OJ C 37, 3.2.2001, p. 3; available also on the World Wide Web at http://europa.eu.int.back
© Crown copyright 2003 | Prepared 17 March 2003 |