Electricity Act 1989

[F1 33 Fossil fuel levy. E+W+S

(1) Where the Secretary of State has made one or more orders under section 32 above in relation to public electricity suppliers in England and Wales, or public electricity suppliers in Scotland, he may by regulations provide—

(a) for the imposition on such suppliers, and on persons authorised by a licence under section 6(2) above to supply electricity within the authorised area of such a supplier, of a levy in respect of each qualifying month;

(b) for the collection of payments in respect of that levy by a prescribed person; and

(c) for the making by that person to such suppliers, out of the payments so collected, of payments in respect of each qualifying month.

(2) The amount of any payment which is required by regulations under this section to be made by any person in respect of the levy shall be calculated, by such method as may be specified by the regulations, by reference to the aggregate amount charged by that person for leviable electricity supplied by him during the qualifying month.

(3) The amount of any payment required to be made to a public electricity supplier by regulations under this section shall be the aggregate of the amounts given by subsections (4) and (5) below.

(4) The amount given by this subsection is a one-twelfth part of any advance payments which, in pursuance of qualifying arrangements, fall to be made by the public electricity supplier during the relevant year; and in this subsection “the relevant year” means whichever one of the following periods the qualifying month falls within, namely—

(a) the period of twelve months beginning on the day appointed by the first order under section 32 above which has effect in relation to the supplier; and

(b) each successive period of twelve months.

(5) The amount given by this subsection is the difference between—

(a) the total cost to the supplier of purchasing or generating any electricity supplied by him during the qualifying month which was generated in pursuance of qualifying arrangements; and

(b) what would have been the total cost to him of purchasing or generating that electricity if it had been generated by a fossil fuel generating station,

calculated (in each case) by such method as may be specified by regulations under this section and including any advance or deferred payments other than, in the case of the cost mentioned in paragraph (a) above, payments taken into account under subsection (4) above.

(6) Regulations under this section may—

(a) impose requirements (whether as to the furnishing of records or other information or the affording of facilities for the examination and testing of meters or otherwise) on persons authorised by a licence to supply, transmit or generate electricity;

(b) make provision as to the times at which payments falling to be made in pursuance of the regulations (whether payments by way of levy or payments to public electricity suppliers) are to be so made; and

(c) require the amount of any overpayment or underpayment which is made by or to any person (whether it arises because an estimate turns out to be wrong or otherwise) to be set off against or added to any subsequent liability or entitlement of that person.

(7) The Secretary of State shall exercise the powers conferred by this section in the manner which he considers is best calculated to secure that the sums realised by the levy are sufficient (after payment of the administrative expenses of the prescribed person) to pay to each public electricity supplier in respect of each qualifying month the payment required to be made to him by the regulations.

[F2 (7A) In this section, references to qualifying arrangements, in relation to a public electricity supplier, are to any arrangements in relation to which each of the following is the case—

(a) the supplier has produced evidence of the making of them to the Director in pursuance of an order under section 32 above;

(b) they were made jointly with one or more other public electricity suppliers or are arrangements for isolated supply; and

(c) they satisfy such other requirements as may be prescribed.

(7B) For the purposes of subsection (7A)(b) above, arrangements are for isolated supply if the electricity generated in pursuance of them is supplied only over a system of electric lines and electrical plant which—

(a) is operated by a public electricity supplier,

(b) is located on an island, and

(c) is not connected directly or indirectly to any system operated by another public electricity supplier.]

(8) In this section—

• “advance payment” means any payment made or expense incurred in relation to a particular generating station before electricity is first generated by that station, and any reference to the making of advance payments shall be construed accordingly;

• “deferred payment” means any payment made or expense incurred in relation to a particular generating station after electricity ceases to be generated by that station;

• “fossil fuel generating station” means a generating station fuelled by a fossil fuel;

• [“ F3 leviable electricity” means electricity which—

  (a)

  is generated by a fossil fuel generating station;

  (b)

  is generated by a generating station fuelled by nuclear fuel; or

  (c)

  is generated in pursuance of qualifying arrangements by a generating station fuelled or driven otherwise than by a fossil fuel or nuclear fuel;]

• F4 . . .

• “qualifying month” in relation to a public electricity supplier or a person authorised by a licence under section 6(2) above to supply electricity within the authorised area of such a supplier, means a month beginning on or after the day appointed by the first order under section 32 above which has effect in relation to that supplier;

and other expressions which are used in section 32 above have the same meanings as in that section.

[F5 (9) The Secretary of State may by regulations amend this section so as to—

(a) omit the word “leviable” in subsection (2) above; and

(b) omit the definition of “leviable electricity” in subsection (8) above]]

Textual Amendments

F1 S. 33 ceased to have effect (21.11.2000) by virtue of 2000 c. 27, s. 66; S.I. 2000/2412, art. 2 (subject to saving in art. 3(2)) and s. 33 to be repealed (prosp.) by 2000 c. 27, ss. 108, 110(2), Sch. 8

F2 S. 33(7A)(7B) inserted (22.4.1997) by S.I. 1997/1185, art. 2(1)

F3 Definition of “leviable electricity” substituted for definitions of “leviable electricity” and “non-fossil fuel generating station” in s. 33(8) (1.4.1998) by 1998 c. 5, s. 1(2); S.I. 1998/930, art. 2

F4 Definition of “qualifying arrangements” in s. 33(8) repealed (22.4.1997) by S.I. 1997/1185, art. 2(2)

F5 S. 33(9) inserted (1.4.1998) by 1998 c. 5, s. 1(3); S.I. 1998/930, art. 2

Modifications etc. (not altering text)

C1 S. 33: transfer of certain functions (S.) (1.7.1999) by S.I. 1999/1750, arts. 1, 2, Sch. 1 (with art. 7)

C2 S. 33 continued (with modifications) (27.10.2000 with effect on 21.11.2000) by S.I. 2000/2727, art. 11

C3 S. 33: power to continue (with modifications) conferred (29.9.2000) by 2000 c. 2000, s. 67(3); S.I. 2000/2412, art. 2 (with art. 3(2))