Paragraph 8

Paragraph 17 (exemption: self-supplies by electricity producers) is amended as follows.

After sub-paragraph (1) insert—

“(1A)

The supply is exempt from levy if it is a supply of electricity produced in—

(a)

a fully exempt combined heat and power station,

(b)

a partly exempt combined heat and power station,

(c)

a stand-by generator, or

(d)

a small generating station.

(1B)

Sub-paragraph (1A)(d) applies only if the producer is—

(a)

an auto-generator, or

(b)

an exempt unlicensed electricity supplier of a description prescribed by regulations made by the Treasury.”

In sub-paragraph (2) for the words from “If” to “unless—” substitute “ This paragraph does not exempt the supply if— ”.

Omit sub-paragraphs (3) and (4).