InterpretationE+W+S

2.—(1) In this Order—

(2) The following provisions shall have effect for the purposes of this Order.

(a)One body corporate shall be treated as associated with another if—

(i)one of them is a subsidiary of the other; or

(ii)both of them are subsidiaries of the same holding company;

and “holding company” and “subsidiary” shall have the same meaning as in section 736 of the Companies Act 1985 M7.

(b)One body corporate shall be treated as related to another if—

(i)one of them is a 75 per cent subsidiary of the other; or

(ii)both of them are 75 per cent subsidaries of a third body corporate;

and “75 per cent subsidiary” shall be construed in accordance with section 838 of the Income and Corporation Taxes Act 1988.

(c)One body corporate shall be treated as connected to another if—

(i)50 per cent or more of the ordinary share capital of one of them is owned directly or indirectly by the other; or

(ii)50 per cent or more of the ordinary share capital of each of them is owned directly or indirectly by a third body corporate;

and for the purpose of determining whether 50 per cent or more of the ordinary share capital of a body corporate is owned directly or indirectly by another body corporate the provisions of subsections (2) to (10) of section 838 of the Income and Corporation Taxes Act 1988 shall apply in relation to this sub-paragraph as they apply in relation to subsection (1) of that section.

(d)A person shall be treated as generating electricity at any time if he is the operator of plant or equipment which at that time—

(i)is generating or capable of generating electricity; or

(ii)is not capable of generating electricity only by reason of the maintenance, repair or testing of the plant or equipment.

(e)Premises shall be treated as on the same site as each other if they are—

(i)the same premises;

(ii)immediately adjoining each other; or

(iii)separated from each other only by a road, railway or watercourse or by other premises occupied by the consumer in question, by any other person who together with that consumer forms a qualifying group, or by the person seeking to fall within the class in question specified in Schedule 2 or 4.

Textual Amendments

F3Section 4(1)(b) of the Act was substituted by section 135(2) of the Energy Act 2004 (c. 20).

F4Section 4(1)(bb) was inserted by section 28(2) of the Utilities Act 2000 (c. 27).

Marginal Citations

M1The definition of “supply” was substituted in section 4(4) of the Electricity Act 1989 by section 28(1) and (3)(b) of the Utilities Act 2000.

M2A new section 6 was substituted by section 30 of the Utilities Act 2000.

M51985 c. 6; section 258 was inserted by section 21 of the Companies Act 1989 (c. 40).

M6The definition of “distribute” was inserted into section 4(4) of the Electricity Act 1989 by section 28(1) and (3)(a) of the Utilities Act 2000.

M7Section 736 was substituted by section 144(1) of the Companies Act 1989.