148(1)In this Schedule “combined heat and power station” means a station producing electricity or motive power that is (or may be) operated for purposes including the supply to any premises of—U.K.
(a)heat produced in association with electricity or motive power, or
(b)steam produced from, or air or water heated by, such heat.
(2)In this Schedule “fully exempt combined heat and power station” means a combined heat and power station in respect of which there is in force a certificate (a “full-exemption certificate”)—
(a)given by the Secretary of State,
(b)stating that the station is a fully exempt combined heat and power station for the purposes of the levy, and
(c)complying with sub-paragraph (6) and (so far as applicable) any provision made by regulations under sub-paragraph (10).
(3)In this Schedule “partly exempt combined heat and power station” means a combined heat and power station in respect of which there is in force a certificate (a “part-exemption certificate”)—
(a)given by the Secretary of State,
(b)stating that the station is a partly exempt combined heat and power station for the purposes of the levy, and
(c)complying with sub-paragraph (6) and (so far as applicable) any provision made by regulations under sub-paragraph (10).
(4)The Secretary of State shall give a full-exemption certificate in respect of a combined heat and power station where—
(a)an application is made for a certificate under this paragraph in respect of the station, and
(b)it appears to him that such conditions as may be prescribed are satisfied in relation to the station.
For this purpose “prescribed” means prescribed by regulations made by the Treasury.
(5)The Secretary of State shall give a part-exemption certificate in respect of a combined heat and power station where—
(a)an application is made for a certificate under this paragraph in respect of the station, and
(b)his decision on the application is to refuse to give a full-exemption certificate.
(6)A full-exemption or part-exemption certificate given in respect of a combined heat and power station shall state the percentage that, for the purposes of paragraph 15, is the efficiency percentage for the station determined in accordance with any regulations under paragraph 149.
(7)In prescribing conditions under sub-paragraph (4), the Treasury must have regard to the object of securing that a combined heat and power station will only be a fully exempt combined heat and power station for the purposes of this Schedule if it is one in which electricity or motive power is produced concurrently with heat in a manner that makes efficient use of the commodities used in their production.
(8)A condition prescribed under sub-paragraph (4) may, in particular, relate to any of the following—
(a)a station’s outputs;
(b)the commodities used in the production of such outputs;
(c)the methods of producing such outputs;
(d)the efficiency with which such outputs are produced.
(9)For the purposes of sub-paragraph (8), a station’s “outputs” are any electricity or motive power produced in the station and any of the following supplied from the station, namely—
(a)heat or steam, or
(b)air, or water, that has been heated or cooled.
(10)The Secretary of State may by regulations make provision for or about—
(a)certificates under this paragraph;
(b)applications for such certificates;
(c)the information that is to accompany such applications.
(11)The provision that may be made by virtue of sub-paragraph (10)(a) includes in particular—
(a)provision in respect of the periods for which certificates under this paragraph are to be in force;
(b)provision for the (non-retrospective) variation or revocation of such certificates.