The Climate Change Levy (General) (Amendment) (No. 2) Regulations 2012

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838) (“the General Regulations”) and are made to take account of the removal of the exemption for indirect supplies of electricity produced in a combined heat and power (CHP) station which takes effect from 1st April 2013.

Certified(1) electricity produced in a CHP station may be supplied exempt from CCL(2). Regulation 3 amends the definition of “QPO electricity” in regulation 51A of the General Regulations so that electricity produced in a CHP station can only be certified if it was produced before 1st April 2013.

Regulation 4 amends Schedule 2 to the General Regulations so that the obligations in it relate only to the outputs of a CHP station produced before 1st April 2013. With effect from 1st January 2013, it also provides the relevant Authority with revised CHP Levy Exemption Certificate reconciliation arrangements in relation to CHP stations that have participated in the CHP Quality Assurance programme for the completed calendar year ending 31st December 2012.

A Tax Information and Impact Note covering this instrument was published on 21st March 2012 and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.

(1)

Certification is by the Gas and Electricity Markets Authority or the Director General of Electricity Supply for Northern Ireland (now the Northern Ireland Authority for Utility Regulation), as appropriate. See regulations 51A and 51B of the General Regulations.

(2)

See the Finance Act 2000, Schedule 6, paragraph 20A and Part 4A of the General Regulations.