42Levy on holders of certain energy industry licencesE+W+S
(1)The Secretary of State may, by regulations, provide for a levy to be imposed on, and be payable by, one or more of the following kinds of persons—
(a)persons who hold licences under section 2 of the Petroleum (Production) Act 1934 or licences under section 3 of the Petroleum Act 1998 (exploitation of petroleum);
(b)persons who hold licences under section 4 of the Energy Act 2008 (unloading and storing gas);
(c)persons who hold licences under section 18 of the Energy Act 2008 granted by the Secretary of State (storage of carbon dioxide).
(2)No licensing levy is to be imposed in respect of a time which falls after the end of the period of 3 years beginning with the first day of the first charging period.
(3)The Secretary of State must exercise the power conferred by subsection (1) so as to secure—
(a)that the total amount of licensing levy which is payable in respect of a charging period does not exceed the costs incurred by the Secretary of State in exercising the relevant functions in respect of that period; and
(b)that no levy is payable in respect of costs incurred in any exercise of relevant functions for which a charge is payable under the Gas and Petroleum (Consents) Charges Regulations 2013 (as those Regulations stand when this section comes into force).
(4)In determining for the purposes of subsection (3)(a) the total amount of licensing levy payable in respect of a charging period, an amount of levy payable in respect of that period may be ignored if (during that period or subsequently)—
(a)having been paid, it is repaid or credit for it is given against other licensing levy that is payable; or
(b)having not been paid, the requirement to pay it is cancelled.
(5)The “relevant functions” referred to in subsection (3) are—
(a)functions under the following enactments—
(i)the Pipe-lines Act 1962 (cross-country pipe-lines);
(ii)section 3 and the other provisions of Part 1 of the Petroleum Act 1998 (exploitation of petroleum);
(iii)Part 1A of the Petroleum Act 1998 (maximising economic recovery of UK petroleum);
(iv)Part 3 of the Petroleum Act 1998 (submarine pipelines);
(v)Part 4 of the Petroleum Act 1998, in so far as the functions concern reduction of the costs of abandonment of offshore installations and submarine pipelines;
(vi)section 4 and the other provisions of Chapter 2 of Part 1 of the Energy Act 2008 (importation and storage of combustible gas);
(vii)section 18 and the other provisions of Chapter 3 of Part 1 of the Energy Act 2008 (storage of carbon dioxide);
(viii)Chapter 3 of Part 2 of the Energy Act 2011 (upstream petroleum infrastructure);
(b)carrying out policy work on matters relating to UK petroleum and its recovery;
(c)providing advice and assistance to the petroleum industry on matters relating to UK petroleum and its recovery;
(d)collaborating with the petroleum industry on matters relating to UK petroleum and its recovery;
(e)acquiring, using and supplying information on matters relating to UK petroleum and its recovery;
(f)encouraging development of the petroleum industry in relation to the recovery of UK petroleum;
(g)carrying out, or providing advice and assistance to those carrying out, research and development in relation to technology and products relevant to the recovery of UK petroleum;
(h)functions which relate to—
(i)the security of petroleum supplies, or
(ii)the resilience of the petroleum industry;
(i)international co-operation on matters relating to UK petroleum and its recovery, including—
(i)resolution of disputes relating to the entitlements of different countries in relation to petroleum fields, and
(ii)openness and accountability in the management of natural resources.
(6)The matters relating to UK petroleum and its recovery which fall within paragraphs (b), (c), (d) and (e) of subsection (5) include—
(a)maximising the economic recovery of UK petroleum, and
(b)improving the supply chain of UK petroleum.
(7)The amount or amounts of licensing levy payable by licence holders must be—
(a)set out in the regulations, or
(b)calculated in accordance with a method set out in the regulations.
(8)The licensing levy is payable to the Secretary of State.
(9)Schedule 7 (the licensing levy) has effect.
(10)Schedule 7 does not limit the provision that may be made by regulations under this section.
(11)The Secretary of State may, by regulations, amend subsection (3)(b) by adding, removing or amending a reference to any regulations made under section 188 of the Energy Act 2004.
(12)In this section and Schedule 7—
“charging period” means a period in respect of which licensing levy is payable;
“licensing levy” means the levy provided for in regulations under this section;
“UK petroleum” means petroleum (within the meaning given in section 1 of the Petroleum Act 1998) which for the time being exists in its natural condition in strata beneath—
(a)the territorial sea adjacent to the United Kingdom, and
(b)the sea in any area designated under section 1(7) of the Continental Shelf Act 1964.
Commencement Information
I1S. 42 in force at 12.4.2015 by S.I. 2015/481, reg. 3(c)