# The Climate Change Levy (Combined Heat and Power Stations) Regulations 2005, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations relate to the reliefs from climate change levy (CCL) that may apply in the case of electricity produced in certified combined heat and power stations.
Input fuel to all certified stations
The exemption for supplies of leviable fuel to such stations is determined relative to an objective threshold efficiency percentage. Regulation 3(1) sets that threshold efficiency percentage as 20 per cent.
The actual amount of exemption depends on the ratio between a station’s efficiency percentage and the relevant threshold efficiency percentage. Regulation 3(2) provides for a station’s efficiency percentage in relation to a given calendar year to be determined in accordance with methodology described in detail in the Combined Heat and Power Quality Assurance Standard, Issue 1, November 2000 originally published by the Department for the Environment, Transport and the Regions (the Standard), , .
Output electricity from partly exempt stations
Electricity may be supplied from partly exempt stations free from CCL, but only up to a specified limit. Regulation 4 specifies the current calendar year’s annual limit as the station’s CHP Qualifying Power Output in relation to that year in accordance with the Standard.
Condition for full-exemption certificate
A certified station is fully exempt or partly exempt for CCL purposes. Entitlement to a full-exemption certificate depends on prescribed conditions being satisfied.
Regulation 5 prescribes as a condition that the station’s Quality Index measured in accordance with the Standard must at least meet a Threshold Quality Index Criterion specified by the Standard.
Regulatory impact assessment
A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities or voluntary bodies.

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Source: https://www.legislation.gov.uk/ukdsi/2005/0110724747/note (the official version)
Page: https://openlegislation.uk/draft-climate-change-levy-combined-heat-and-power-stations-regulations-2005/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.