Part 5Enterprise investment scheme
Chapter 4The issuing company
Excluded activities
198AF1Excluded activities: subsidised generation or export of electricity
1
This section supplements section 192(1)(ka).
2
Electricity is exported if it is exported onto a distribution system or transmission system (within the meaning of section 4 of the Electricity Act 1989).
3
The generation of electricity is “subsidised” if a person receives a FIT subsidy in respect of the electricity generated.
4
The export of electricity is “subsidised” if a person receives a FIT subsidy in respect of the electricity exported.
5
But the generation or export of electricity is not to be taken to fall within section 192(1)(ka) if Condition A, B or C is met.
6
Condition A is that the generation or export is carried on by—
a
a community interest company,
b
a co-operative society,
c
a community benefit society, or
d
a NI industrial and provident society.
7
Condition B is that the plant used for the generation of the electricity relies wholly or mainly on anaerobic digestion.
8
Condition C is that the electricity is hydroelectric power.
9
For the purposes of this section—
“anaerobic digestion” means the bacterial fermentation of organic material in the absence of free oxygen (excluding anaerobic digestion of sewage or material in a landfill);
“community benefit society” means—
- a
a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 as a community benefit society, or
- b
a pre-2010 Act society (as defined at section 4A(1) of that Act) which meets the condition in section 1(3) of that Act;
- a
“co-operative society” means—
- a
a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 as a co-operative society, or
- b
a pre-2010 Act society (as defined at section 4A(1) of that Act) which meets the condition in section 1(2) of that Act;
- a
“FIT subsidy” means—
- a
a financial incentive under a scheme established by virtue of section 41 of the Energy Act 2008 (powers to amend licence conditions etc: feed-in tariffs) to encourage small-scale low-carbon generation of electricity, or
- b
a financial incentive under a similar scheme established in a territory outside the United Kingdom to encourage small-scale low-carbon generation of electricity;
- a
“NI industrial and provident society” means a society registered under the Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.));
“small-scale low-carbon generation” has the meaning given by section 41(4) of the Energy Act 2008.