The CRC Energy Efficiency Scheme (Amendment) Order 2014

Amendments to Schedule 1 to the principal Order

6.—(1) Schedule 1 to the principal Order is amended as follows.

(2) In paragraph 1, for sub-paragraph (4)(b) substitute—

“(b) is connected to a distribution system of an electricity distributor within the meaning of—

(i) in Great Britain, section 6 of the Electricity Act 1989(1); or

(ii) in Northern Ireland, article 3 of the Electricity (Northern Ireland) Order 1992(2).”.

(3) For paragraph 4(2), substitute—

“(2) Sub-paragraph (1) does not apply to the extent that the electricity is used directly for—

(a) the generation, transmission or distribution of electricity, or

(b) the transport, supply or shipping of gas.”.

(4) In paragraph 14(3), after “paragraph 16(3)” insert “and (3A)”.

(5) In paragraph 15(3), after “paragraph 16(3)” insert “and (3A)”.

(6) In paragraph 16—

(a) in sub-paragraph (2), for “sub-paragraph (3)” substitute “sub-paragraphs (3) and (3A)”;

(b) after sub-paragraph (3), insert—

“(3A) Sub-paragraph (2) does not apply where the unconsumed supply is consumed by B on the premises occupied by B to operate—

(a) an EU ETS installation;

(b) a CCA facility;

(c) a metallurgical process; or

(d) a mineralogical process.”.

(7) After paragraph 29 insert—

“Metallurgical and mineralogical processes consumption

29A.— (1) Subject to sub-paragraph (2), A is not supplied with electricity or gas to the extent that that supply is consumed by A for the purposes of operating a metallurgical process or a mineralogical process.

(2) A is supplied with electricity or gas where A decides that such a supply is not consumed for the purposes of operating a metallurgical process or a mineralogical process.

(3) A decision made under sub-paragraph (2)—

(a) may be made in respect of a phase where such a decision is made on or before the date the participant submits its first annual report for that phase; and

(b) must not be altered during that phase.

(4) “Metallurgical process” means—

(a) any process falling within—

(i) Division 24 of NACE Rev 2, except a process falling within Group 24.46; or

(ii) Group 25.5 of NACE Rev 2, except a process involving sheet metal; or

(b) the following processes falling within Group 25.6 of NACE Rev 2—

(i) plating, anodising, or other similar processing of metals;

(ii) heat treatment of metals; or

(iii) where carried out in conjunction with a process falling within paragraph (a), deburring, sandblasting, tumbling or cleaning of metals.

(5) In sub-paragraph (4), “NACE Rev 2” has the same meaning as it has in Article 1(1) of Regulation (EC) No 1893/2006 of the European Parliament and of the Council establishing the statistical classification of economic activities NACE Revision 2(3) and a reference to “Division” and “Group” is to those matters as set out in Annex 1 to the Regulation.

(6) “Mineralogical process” has the same meaning as it has in Article 2(4)(b) of Council Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity(4).”.

(8) In paragraph 32—

(a) for sub-paragraph (1)(a), substitute—

“(a) A generates electricity using a source of energy or technology specified in section 41(5) of the Energy Act 2008(5) and which was commissioned on or after 1st January 2008;”; and

(b) for sub-paragraph (1)(b) substitute—

“(b) in respect of that generation A is eligible—

(i) to be issued with a ROC; or

(ii) to receive a financial incentive made by virtue of a scheme under section 41 of the Energy Act 2008; and”.

(9) For paragraph 34 substitute—

“34.   In paragraph 33 “relevant conversion factor” means—

(a) a factor of zero emissions where A—

(i) is not prohibited from being given a ROC or a financial incentive described in sub-paragraph (1)(b) of paragraph 32 in respect of electricity generated using a source of energy or technology referred to in sub-paragraph (1)(a) of that paragraph; and

(ii) has not at any time received such a ROC or a financial incentive; and

(b) in all other cases a factor listed—

(i) in version 2 of the document named “CRC Energy Efficiency Scheme Order: table of conversion factors 2013/14” published by the Department of Energy and Climate Change in January 2014 and made available at the website address https://www.gov.uk/crc-energy-efficiency-scheme(6); or

(ii) in any replacement or revision of the document described in sub-paragraph (b)(i) which is published and made available in the same way as that document.”.

(1)

1989 c.29.

(2)

S.I. 1992/231 (N.I.1).

(3)

OJ No L 393, 30.12.06, p.1. Explanatory Notes to NACE Rev 2 have been published by the Statistical Office of the European Communities. The Explanatory Notes were last updated by Eurostat on 20 October 2009 and can be viewed at http://epp.eurostat.ec.europa.eu/portal/page/portal/nace_rev2/documents/NACE_rev2_explanatory_notes_EN.pdf.

(4)

OJ No L 283, 31.10.03, p.51.

(5)

2008 c.32.

(6)

A paper copy of this document is available from the CRC Team, Department of Energy and Climate Change. Area 1A, 3 Whitehall Place, London SW1A 2HH.