# The Fossil Fuel Levy (Scotland) Regulations 1996, Note: Explanatory note (This note is not part of the Regulations) These Regulations provide for the imposition of a levy on each of the public electricity suppliers in Scotland and on persons authorised by a licence under section 6(2) of the Electricity Act 1989 to supply electricity within the authorised area of those public electricity suppliers, and for the product of that levy to be paid (after certain deductions) to those public electricity suppliers. Regulations 1 and 2 (and Schedule 1, which is introduced by regulation 2(2)) provide for the citation, commencement and interpretation of the Regulations. 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. Regulation 5 introduces Schedule 2, which sets out the methods 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 and generating 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 supplies in respect of the levy. The licensed supplier must calculate the amount he owes in respect of each qualifying month,and pay that amount to the Director annually (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 relevant 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 22 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 23 requires the Director, out of the payments he has received and after deduction of his administrative expenses, to make payments annually 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 24); for moneys received by the Director to be invested (regulation 25),and for him to keep records of moneys received and his administrative expenses (regulation 26); 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 27). Regulations 28 to 32 deal with information which the Director may require. Regulation 28 enables him to call for information of any description set out in Schedule 4; regulation 29 sets standards for information in the form of estimates; and regulation 30 provides a means to assist the Director in resolving conflicts between contradictory information. Regulation 31 requires the Director to keep information relating to the levy separate from other information held by him; and regulation 32 provides for the retention and inspection of the records from which has been derived information furnished to the Director. Regulations 33 and 34 contain supplementary provisions relating to the delivery of posted documents and the inspection of meters. Regulation 35 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 36 requires the Secretary of State to calculate the initial rate of levy, and to notify it to persons concerned. A Compliance Cost Assessment in relation to these Regulations has been prepared. A copy of the Assessment has been laid in the libraries of both House of Parliament. A copy of the Assessment may be obtained free of charge from the Scottish Office Education and Industry Department, Victoria Quay, Edinburgh, EH6 6QQ. --- Source: https://www.legislation.gov.uk/uksi/1996/293/note (the official version) Page: https://openlegislation.uk/fossil-fuel-levy-scotland-regulations-1996/note Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.