Paragraph 11 Supplies to franchisees regarded as supplies to franchisors

(1)

Sub-paragraphs (2) and (3) apply where—

(a)

there is a franchise agreement; and

(b)

the franchisee is supplied with electricity, gas or fuel under section 1 of this Schedule in relation to the franchise premises (“a franchise supply”).

(2)

For the purposes of Part 2 of this Order, where—

(a)

the franchise agreement exists on the qualification day; and

(b)

during the qualification year there is a franchise supply of electricity which is qualifying electricity,

that franchise supply of electricity is a supply to the franchisor and not the franchisee.

(3)

For the purposes of Parts 4 and 5 of this Order, where—

(a)

the franchisor is a participant or is a member of a group which is a participant; and

(b)

the franchise agreement exists during a year of a phase,

the franchise supply during that year is a supply to the franchisor and not the franchisee.