Textual Amendments
F1Sch. 6 para. 20B and cross-heading inserted (24.7.2002 with effect as mentioned in s. 123(2) of the amending Act) by 2002 c. 23, s. 123; S.I. 2003/603, art. 2
20B(1)This paragraph applies where a person (“the supplier”) makes supplies of electricity on the basis that they are exempt under paragraph 20A (“exempt CHP supplies”).U.K.
(2)The rules about balancing and averaging periods are—
(a)a balancing period is a period of three months;
(b)when a balancing period ends, a new one begins;
(c)the first balancing period and the first averaging period begin at the same time;
(d)unless the supplier specifies an earlier time, that time is the time when he is treated as making the first of the exempt CHP supplies;
(e)when an averaging period ends, a new one begins;
(f)an averaging period ends once it has run for two years (but may end sooner under paragraph (g) or sub-paragraph (4)(a) or (5)(a));
(g)if the supplier stops making exempt CHP supplies, the end of the balancing period in which he makes the last exempt CHP supply is also the end of the averaging period in which the balancing period falls.
(3)At the end of each balancing period calculate—
(a)the total of—
(i)the quantity of CHP electricity that the supplier acquired or generated in that period, and
(ii)any balancing credit carried forward to that balancing period; and
(b)the total of—
(i)the quantity of electricity supplied by exempt CHP supplies made by him in that period, and
(ii)any balancing debit carried forward to that balancing period.
(4)If the total mentioned in sub-paragraph (3)(a) exceeds that mentioned in sub-paragraph (3)(b)—
(a)the averaging period within which the balancing period fell ends at the end of the balancing period, and
(b)a balancing credit equal to the difference between the two totals is carried forward to the next balancing period.
(5)If the totals mentioned in paragraphs (a) and (b) of sub-paragraph (3) are the same—
(a)the averaging period within which the balancing period fell ends at the end of the balancing period, and
(b)no balancing credit or debit is carried forward to the next balancing period.
[F2(6)If the total mentioned in sub-paragraph (3)(b) exceeds that mentioned in sub-paragraph (3)(a), then—
(a)in a case where, at the time when the balancing period ends, an averaging period also ends because of sub-paragraph (2)(f) or (g), the supplier is for the purposes of this Schedule deemed to make at that time a taxable supply of a quantity of electricity equal to the excess;
(b)in any other case, a balancing debit equal to the excess is carried forward to the next balancing period.]]
Textual Amendments
F2Sch. 6 para. 20B(6) substituted (10.7.2003) for Sch. 6 paras. 20B(6)-(8) (with effect in accordance with s.193(5) of the amending Act) by Finance Act 2003 (c. 14), s. 193(3)