The Climate Change Levy (General) (Amendment) Regulations 2015

Amendments to the Climate Change Levy (General) Regulations 2001

5.  In Schedule 3 (fuels referable to the production of electricity in a combined heat and power station)—

(a) in paragraph 1 (interpretation)—

(i) after “CHP Qualifying Heat Output” insert “CHP Qualifying Power Output”;

(ii) at the end insert—

““non-qualifying electricity” means electricity to which paragraph 24B(2A) of the Act does not apply;

“qualifying electricity” means electricity to which paragraph 24B(2A) of the Act applies.”;

(b) in paragraph 2 (calculation of fuels referable to the production of electricity)—

(i) in sub-paragraph (1), for “to (4)” substitute “(3) and (4)”;

(ii) in sub-paragraph (2), in the definition of “MO” for “power” substitute “energy”;

(iii) after sub-paragraph (2) insert—

“(2A) Sub-paragraphs (2B) to (2E) apply, instead of sub-paragraphs (3) and (4), in relation to carbon price support rate commodities brought onto, or arriving at, a CHPQA site on or after 1st April 2015.

(2B) The extent to which a quantity of a carbon price support rate commodity is referable to the production of non-qualifying electricity in a combined heat and power station is to be determined in accordance with sub-paragraphs (2C) to (2E).

(2C) Calculate the total quantity of input fuels referable to the production of non-qualifying electricity in accordance with the following formula—

Where—

• Q is the quantity of input fuels referable to the production of electricity calculated in accordance with sub-paragraph (2);

• ES (which must not exceed the QPO) is the amount of qualifying electricity in MWh generated by the station in the annual operation to which the current CHPQA certificate relating to the station applies at the time the quantity of carbon price support rate commodity is brought onto, or arrives at, the CHPQA site;

• QPO is the CHP Qualifying Power Output for the station specified on the current CHPQA certificate relating to the station at the time the quantity of carbon price support rate commodity is brought onto, or arrives at, the CHPQA site;

• TPO and MO have the meaning given in sub-paragraph (2).

(2D) Calculate the percentage of input fuels referable to the production of non-qualifying electricity in accordance with the following formula—

Where—

• R is the quantity of input fuels referable to the production of non-qualifying electricity calculated in accordance with sub-paragraph (2C);

• TFI has the meaning given in sub-paragraph (2).

(2E) Apply the percentage calculated in accordance with sub-paragraph (2D) to the quantity of carbon price support rate commodities brought onto, or arriving at, the CHPQA site.”;

(c) in paragraph 4(1) and (2) after “CHP Qualifying Heat Output,” insert “the CHP Qualifying Power Output, the qualifying electricity,”;

(d) in paragraph 5(b) after “CHP Qualifying Heat Output,” insert “CHP Qualifying Power Output, qualifying electricity,”.