This Statutory Instrument has been made in consequence of a defect in S.I. 2013/713 and is being issued free of charge to all known recipients of that Statutory Instrument.

2013 No. 1716

Climate Change Levy

The Climate Change Levy (General) (Amendment No.2) Regulations 2013

Made

Laid before the House of Commons

Coming into force

The Commissioners for Her Majesty’s Revenue and Customs1 make the following Regulations in exercise of the powers conferred by paragraphs 24B(3) and 24D of Schedule 6 to the Finance Act 20002:

Citation and commencement1

These Regulations may be cited as the Climate Change Levy (General) (Amendment No.2) Regulations 2013 and come into force on 1st August 2013.

Amendments to the Climate Change Levy (General) Regulations 2001

2

Amend the Climate Change Levy (General) Regulations 20013 as follows.

3

In Schedule 3 (fuels referable to the production of electricity in a combined heat and power station)—

a

in paragraph 1—

i

after “CHP Scheme” omit “and”; and

ii

after “CHP Total Fuel Input” insert “and “CHP Total Power Output””;

b

in paragraph 2(2)—

i

for the formula substitute the following formula—

(TFI−QHOηh,ref)x(1−MOTPO)math
ii
after the definition of ηh,refmathinsert—

  • MO is Mechanical Output, which is the amount of power in megawatt-hours (electrical) (MWhe) generated by the station in a given annual operation that is used to drive a mechanical load (such as a pump, fan or compressor) through direct coupling, without the use of electricity.

  • TPO is the CHP Total Power Output for the station on the current CHPQA certificate relating to the station at the time the quantity of the carbon price support rate commodity is brought onto, or arrives at, the CHPQA site.

c

in paragraph 4(1) and (2), for “and the CHP Qualifying Heat Output” substitute “, the CHP Qualifying Heat Output, the Mechanical Output and the CHP Total Power Output”;

d

in paragraph 5(b), for “and CHP Qualifying Heat Output” substitute “, CHP Qualifying Heat Output, Mechanical Output and CHP Total Power Output”.

Simon BowlesEdward TroupTwo of the Commissioners for Her Majesty’s Revenue and Customs
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Climate Change Levy (General) Regulations 2001 (“the General Regulations”) (S.I. 2001/838).

They replace the formula in paragraph 2(2) of Schedule 3 to the General Regulations so that fuels used in a combined heat and power station to produce mechanical outputs of the station are not treated as being referable to the production of electricity and are therefore not subject to the carbon price support rates of climate change levy. They also make consequential amendments to paragraphs 1, 4 and 5 of that Schedule.

A Tax Information and Impact Note has not been prepared for this instrument as it contains no substantive changes to tax policy.