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The Electricity Supply Industry (Rateable Values) Order 1994

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Explanatory Note

(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 basis set out in paragraphs 2 to 2B 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 on the basis of 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, or, as the case may be, Wales (“central list hereditaments”), the basis of valuation contained in paragraphs 2 to 2B 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 4 of this Order revokes, subject to certain savings, with effect from 1st April 1995 the Electricity Generators (Rateable Values) Order 1989 which was made under paragraph 3(1) and applied in respect of the years commencing on or after 1st April 1990 and the Electricity Supply Industry (Rateable Values) Order 1989 which was made under paragraph 3(2) and applied in respect of the same period.

Article 5 prescribes, pursuant to paragraph 3(1), hereditaments (other than those which fall to be included in a central rating list by virtue of regulations made under section 53 of the 1988 Act) which are used or available for use wholly or mainly for the purpose of generating electricity by means of certain descriptions of plant set out in article 5(2).

Article 6 contains rules for ascertaining the rateable values of such hereditaments for any year beginning on or after 1st April 1995.

Article 8 prescribes the rateable values of central list hereditaments for the year beginning on 1st April 1995 and provides for the annual recalculation of those rateable values thereafter on the basis of the standard formula.

Articles 9, 10 and 11 provide for the calculation of the recalculation factor to be used in the standard formula.

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