The Climate Change Levy (General) (Amendment) Regulations 2013

Amendments to the Climate Change Levy (General) Regulations 2001

13.  After Schedule 2 insert—

Regulation 51N

“SCHEDULE 3 FUELS REFERABLE TO THE PRODUCTION OF ELECTRICITY IN A COMBINED HEAT AND POWER STATION

Interpretation

1.   In this Schedule—

“Annual Operation” means a period commencing on 1st January and finishing on 31st December;

“CHPQA certificate” has the same meaning as in the Climate Change Levy (Combined Heat and Power Stations) Exemption Certificate Regulations 2001(1);

“CHP Qualifying Heat Output” “CHP scheme” and “CHP Total Fuel Input” have the meaning given in section 4 of the CHPQA;

Calculation of fuels referable to the production of electricity

2.— (1) The extent to which a quantity of a carbon price support rate commodity is referable to the production of electricity in a combined heat and power station is to be determined in accordance with sub-paragraphs (2) to (4).

(2) Calculate the total quantity of input fuels referable to the production of electricity in accordance with the following formula —

Where—

TFI is the CHP Total Fuel Input for the station specified 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.

QHO is the CHP Qualifying Heat Output for the station specified 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.

ηh,ref is the reference boiler heat efficiency, taken here to be 81%.

(3) Calculate the percentage of input fuels referable to the production of electricity in accordance with the following formula—

Where—

Q is the quantity of input fuels referable to the production of electricity calculated in accordance with sub-paragraph (2).

TFI is the CHP Total Fuel Input for the station specified 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.

(4) Apply the percentage calculated in accordance with sub-paragraph (3) to the quantity of carbon price support rate commodities brought onto, or arriving at, the CHPQA site.

Compulsory review of calculation

3.— (1) This paragraph applies where a person (“P”)—

(a) has accounted for CCL on a deemed supply under paragraph 24B of the Act; and

(b) the quantity of the carbon price support rate commodity that was the subject of the deemed supply has been calculated in accordance with paragraph 2 of this Schedule.

(2) Where this paragraph applies P must review the correctness of that quantity—

(a) in accordance with paragraphs 4 and 5; and

(b) no later than a reconciliation day.

4.— (1) That correctness must be reviewed in relation to the CHP Total Fuel Input and the CHP Qualifying Heat Output for the relevant reconciliation span.

(2) In the case of a reconciliation span for an incompleted calendar year, treat the actual CHP Total Fuel Input and the CHP Qualifying Heat Output as determined for the 12 month period preceding the relevant reconciliation day and as if that period was an Annual Operation.

(3) For the purposes of paragraph 3(2) and this paragraph—

(i) paragraph 9B of Schedule 1 to these Regulations has effect for the purposes of determining a reconciliation day and reconciliation span; and

(ii) “incompleted calendar year” has the meaning given in that paragraph.

5.   The review must properly take into account—

(a) the quantities of carbon price support rate commodities that were the subject of deemed supplies; and

(b) the quantities that ought to have been the subject of deemed supplies having regard to the actual CHP Total Fuel Input and CHP Qualifying Heat Output for the station in question for the reconciliation span in which the commodities were supplied.

6.   If the review determines that the quantities of carbon price support rate commodities that were the subject of deemed supplies was too little paragraphs 24C and 38A(2)(2) of the Act apply accordingly.

7.   If the review determines that the quantities of carbon price support rate commodities that were the subject of deemed supplies was too much P is entitled to a tax credit under Part II of these Regulations.”.

(1)

S.I. 2001/486.

(2)

Paragraphs 24C and 38A were inserted by the resolution referred to in footnote (b) on page 1.