14(1)A supply of a taxable commodity to a person is exempt from the levy if—(a) the commodity is to be used by that person in producing electricity in a generating station that is neither—
(i)a fully exempt combined heat and power station, nor
(ii)a partly exempt combined heat and power station,
and
(b)the supply is not a supply of electricity that is deemed to be made under paragraph 23(3).
(2)Sub-paragraph (1) does not exempt a supply where the person to whom the supply is made—
(a)is an exempt unlicensed electricity supplier of a description prescribed by regulations made by the Treasury, and
(b)uses the commodity supplied in producing electricity.
(3)Sub-paragraph (1) does not exempt a supply where the person to whom the supply is made—
(a)is an auto-generator,
(b)uses the commodity supplied in producing electricity, and
(c)uses the electricity produced otherwise than in making supplies that are excluded under paragraphs 8 to 10 or exempt under any of paragraphs 11, 12 and 18.
(4)In this paragraph “exempt unlicensed electricity supplier” means a person—
(a)to whom an exemption from section 4(1)(c) of the M1Electricity Act 1989 (persons supplying electricity to premises) has been granted by an order under section 5 of that Act, or
(b)to whom an exemption from Article 8(1)(c) of the M2Electricity Supply (Northern Ireland) Order 1992 has been granted by an order under Article 9 of that Order,
except where he is acting otherwise than for purposes connected with the carrying on of activities authorised by the exemption.
(5)Sub-paragraph (4) applies subject to—
(a)any direction under paragraph 151(1), and
(b)any regulations under paragraph 151(2).
Exemption: supplies (other than self-supplies) to combined heat and power stations