The Climate Change Levy (General) (Amendment) Regulations 2003

Explanatory Note

(This note is not part of the Regulations)

These Regulations come into force on 1 April 2003 and amend the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838) (the “General Regulations”).

Combined heat and power stations

Regulations 19, 20 and 22 insert new provisions into the General Regulations.

Those inserted by regulation 19 provide for electricity produced in a combined heat and power station to be so certified by the Gas and Electricity Markets Authority (or the Director General of Electricity Supply for Northern Ireland). The existing favourable CCL(1) treatment afforded to such electricity becomes subject to such certification. The new CCL exemption(2) for supplies of such electricity that are not made from the relevant station are subjected to these certification requirements as well as to other formalities. These formalities parallel those that already apply to the exemption for renewable source electricity(3), but with an additional requirement relating to conformity with the Community guidelines on State aid for environmental protection(4).

Regulation 22 inserts certain record-keeping and reconciliation requirements on which favourable CCL treatment is made to depend. These requirements are for the better, quantitative application of the favourable CCL treatment afforded to electricity produced in combined heat and power stations.

Regulation 20 inserts relevant penalty provisions.

The CHPQA Guidance Note 15 Version 1 referred to in regulation 19 (inserted regulation 51B(5)) is available on the World Wide Web at http://chpqa.com or from the CHPQA Administrator, telephone [phone].

Renewable source electricity

Supplies of renewable source electricity can be exempt from CCL. Biomass is prescribed as, and peat is excluded from being, a renewable source by the amendments made to the General Regulations by regulations 11 to 13. The provisions inserted by regulations 15 to 16 refine the existing certification process for renewable source electricity. Accurate figures for electricity production must now be finalised no later than 2 months after the month of production. The levy exemption certificates (Renewables LECs) are to be regarded as only relating to a given batch of electricity, may be issued in just multiples of 1 megawatt-hour and may be withheld if the quantity of electricity in question is for consumption outside the United Kingdom.

Consequential amendments and corrections

Regulations 3 to 10, 14, 17, 18 and 21 make consequential amendments and typographical corrections.

(1)

Climate change levy.

(2)

See S.I. 2003/603 (C. 31); the day appointed for the exemption is 1 April 2003.

(3)

See Part IV of the General Regulations.

(4)

OJ C 37, 3.2.2001, p. 3; available also on the World Wide Web at http://europa.eu.int.