The Climate Change Levy (Combined Heat and Power Stations) Prescribed Conditions and Efficiency Percentages Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

1.  The provisions in these Regulations, which are made under Schedule 6 to the Finance Act 2000, relate to the exemption of combined heat and power stations from climate change levy (CCL).

2.  Regulation 2 prescribes two conditions before a combined heat and power station is entitled to a full-exemption certificate under Schedule 6. The first requires a station to have been assessed against the Combined Heat and Power Quality Assurance Standard, the second relates to the station’s efficiency. The second condition can be met in two ways, the second of which only applies to small stations which have been assessed in accordance with the simplified arrangements under the Standard, and are therefore not required to calculate the quantifying power output.

3.  Regulation 3 defines the threshold efficiency percentage for combined heat and power stations, and regulation 4 provides the method of calculating a station’s efficiency percentage. These percentages affect entitlement to exemption from CCL on supplies of energy to stations.

4.  Regulation 5 specifies the limit for levy exemption of a partly-exempt combined heat and power station, and what supplies are to be included or excluded when calculating whether the limit has been exceeded.

5.  The Combined Heat and Power Quality Assurance Standard, Issue 1, referred to in these Regulations, is available on the internet at http://www.chpqa.com/ or free of charge from the Environment and Energy Helpline, telephone [phone].