# The Fossil Fuel Levy Regulations 1990, Note: Explanatory note (This note is not part of these Regulations) These Regulations provide for the imposition of a levy on all persons authorised by a licence under section 6(1)(c) or (2) of the Electricity Act 1989 to supply electricity in England and Wales, and for the product of that levy to be paid (after certain deductions) to the public electricity suppliers in England and Wales. Regulations 1 and 2 (and Schedule 1, which is introduced by regulation 2(3)) provide for the citation, commencement and interpretation of the Regulations. Regulation 41 is brought into force early, in order that licensed suppliers may know the initial rate of levy before the levy system begins to operate on 1st April 1990. Regulation 3 imposes the levy; regulation 4 prescribes the Director General of Electricity Supply as the person to collect payments in respect of the levy, and to make payments to the public electricity suppliers; and regulation 5 introduces Schedule 2, which sets out the method of calculating payments in respect of the levy, and Schedule 3, which sets out the methods of calculating the actual and hypothetical costs of purchasing certain descriptions of electricity. Regulations 6 and 7 provide for the Director to calculate the rate of levy from time to time, and for that rate to be notified to persons concerned and for its publication. Regulations 8 to 10 set out certain provisions relating to the calculation of quantities of electricity supplied. Regulation 8 provides for quantities delivered pursuant to certain contracts to be treated as quantities supplied; regulation 9 requires transmission and distribution losses to be taken into account when calculating quantities of electricity supplied; and regulation 10 deals with generating stations which are directly connected to a distribution system. Regulations 11 to 15 set out the basic system for payments by licensed suppliers in respect of the levy. Each month the licensed supplier must calculate the amount he owes, and pay that amount to the Director (regulation 11). Each payment must be accompanied by a statement showing how the amount paid has been calculated and giving details of quantities of electricity supplied during the month (regulation 12). Provision is made for additional material to be supplied in certain cases (regulation 13), and for the attribution to licensed suppliers of certain quantities of electricity and for consequential balancing payments (regulations 14 and 15). Regulations 16 to 18 deal with under-payments in respect of the levy, and make provision for further payments where necessary. Regulations 19 to 23 deal with cases where electricity is supplied at a price below the market price (as defined in regulation 19(5)). In such cases, the licensed supplier is required to make certain calculations, and to provide them and certain further material to the Director (regulations 19 and 20). The Director may set an alternative price and, if he does, the licensed supplier must make a further payment calculated on the basis of that price (regulations 21 to 23). Regulations 24 to 27 deal with over-payments in respect of the levy. A licensed supplier who has paid more than he should is able to deduct the excess from his subsequent payments in respect of the levy. Regulation 28 requires the Director, out of the payments he has received and after deduction of his administrative expenses, to make monthly payments to the public electricity suppliers. Provision is also made for the payment of interest on sums not received within the period specified in regulation 11(3) (regulation 29); for moneys received by the Director to be invested (regulation 30), and for him to keep records of moneys received and his administrative expenses (regulation 31); and for accumulated interest payments (those received from licensed suppliers, as well as those paid on moneys invested) to be paid to the public electricity suppliers (regulation 32). Regulations 33 to 37 deal with information which the Director may require. Regulation 33 enables him to call for information of any description set out in Schedule 4; regulation 34 sets standards for information in the form of estimates; and regulation 35 provides a means to assist the Director in resolving conflicts between contradictory information. Regulation 36 requires the Director to keep information relating to the levy separate from other information held by him; and regulation 37 provides for the retention and inspection of the records from which has been derived information furnished to the Director. Regulations 38 and 39 contain supplementary provisions relating to the delivery of posted documents and the inspection of meters. Regulation 40 deals with persons who cease to be licensed suppliers, and ensures that their rights and liabilities arising under the Regulations will be fully satisfied or (as appropriate) discharged. Regulation 41 requires the Secretary of State to calculate the initial rate of levy, and to notify it to persons concerned. Regulation 42 sets out the prescribed requirements which must be satisfied if arrangements are to fall within the definition of “qualifying arrangements” set out in section 33(8) of the 1989 Act. --- Source: https://www.legislation.gov.uk/uksi/1990/266/note (the official version) Page: https://openlegislation.uk/fossil-fuel-levy-regulations-1990/note Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.