Electricity from combined heat and power stations7.

(1)

Renumber regulation 51A of those Regulations as regulation 51A(1), for “Schedule 2” in its introductory words substitute “Schedules 1 and 2”, and insert after the meaning for “CHP declaration contract”—
““CHPQA” refers to the Combined Heat and Power Quality Assurance Standard, Issue 1, November 2000 originally published by the Department for the Environment, Transport and the Regions (including the later of version Final 1.0 or 2.0 of CHPQA Guidance Notes8 0 to 4 (including 2(S), 3(S) and 4(S)), 10 to 28 and 30);”.

(2)

Insert as regulation 51A(2) of those Regulations—

“(2)

In the case of electricity produced in a given station after 21st July 2005, this Part and Schedule 2 (and the related penalties provided for by regulation 60(1)(ha) and regulation 60(1)(hb)) only apply if at least some of that electricity is supplied otherwise than from that station (indirect supplies, see paragraph 20A(2) of the Act).”.

(3)

For regulation 51B(1) of those Regulations, substitute—

“(1)

The relevant Authority must certify QPO electricity in accordance with this Part and Schedule 2.”.

(4)

In regulation 51B(5) of those Regulations, for the acronym and words after “metering requirements of” substitute “the CHPQA”.

(5)

For regulation 51B(6) of those Regulations, substitute—

“(6)

The relevant Authority must only certify for the purposes of paragraphs (1) and (2) on the basis that—

(a)

each quantity of electricity produced by an individual station is referable to the Annual Operation in which it is produced, and

(b)

every such quantity in a given Annual Operation comprises the same relative proportions of QPO electricity and non-QPO electricity.

This requirement is subject to the other provisions of this Part and Schedule 2 (non-certification, restricting validity to indirect supplies, reconciliation).

“Annual Operation” has the same meaning as in regulations 2(3), 3(2), 4 and 6(1) of the Climate Change Levy (Combined Heat and Power Stations) Regulations 20059 (namely, 1st January to 31st December).”.

(6)

To regulation 51B(8) of those Regulations, add—

  • “The relevant Authority must both certify QPO electricity in accordance with paragraphs (1), (2), (3), (6) and (7) and issue the relevant CHP LEC no later than the end of the third month following the end of the month in which the electricity is produced.

  • Whilst the relative proportions mentioned in paragraph (6)(b) are unknown, the relevant Authority must use a reasonable estimate of what those relative proportions will be.

  • If the relevant Authority must investigate further whether the electricity in question is “QPO electricity”, it must certify the QPO electricity and issue the relevant CHP LEC no later than the end of the month following the month in which that investigation ought reasonably to have been concluded.”.

(7)

Omit regulation 51C(4)(h) of those Regulations (Authority not otherwise satisfied that electricity should be certified).

(8)

In Schedule 2 paragraph 3(4) to those Regulations, for “120th day following when the supply is treated as taking place” substitute “end of the second month following the one in which the CHP LEC is issued”.

(9)

For Schedule 2 paragraph 8(1) to those Regulations, substitute—

“(1)

This paragraph only applies whilst the relevant Authority has information on the basis of which it reasonably believes that the person mentioned in paragraph 2 is not fully complying with the CHP outputs record requirements in paragraphs 2 to 7.”.

(10)

In Schedule 2 paragraphs 8(2) and 8(3) to those Regulations, for “may” substitute “must”.

(11)

In Schedule 2 to those Regulations, after paragraph 11(7) insert—

“(8)

In the case of electricity and a station to which this paragraph applied before 22nd July 2005 but not after 21st July 2005 (see regulation 51A(2)), the relevant Authority must treat 22nd July 2005 as a reconciliation day for an incompleted calendar year running from 1st January to 21st July 2005 inclusive (the “reconciliation span”).

The determination in sub-paragraph (1) must be made on the basis that a partly exempt station’s annual limit for that incompleted calendar year is the former limit multiplied by the fraction with a numerator of 202 and a denominator of 365.

For these purposes, the “former limit” is the one in force on 1st January 2005 under regulation 5(2) of the Climate Change Levy (Combined Heat and Power Stations) Prescribed Conditions and Efficiency Percentages Regulations 200110.”.