Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Hydrocarbon Oil Duties (Reliefs for Electricity) Generation Regulations 2005^f1 which introduced a relief from excise duty for rebated heavy oils used to produce electricity.

Regulation 2(c) expands the definition of “qualifying oil” so that rebated light oil qualifies for relief^f2.

Regulations 2(a) and 2(b) align the excise rules with those for climate change levy (CCL) about when electricity production is primarily for the producer’s own consumption and about how to treat electricity producers who are suppliers exempt from requiring a supply licence^f3.

Regulation 3(2) preserves relief for such producers supplying the electricity to electricity utilities, aligning it with CCL’S structure. Regulation 3(1) opens to such producers the existing relief scheme for combined heat and power stations.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

Annotations

Footnotes

f1: S.I. 2005/3320. That instrument gave effect to Articles 14(1)(a) and 15(1)(c) of Council Directive 2003/96/EC (OJ L 283, 31.10.03, p 51) in respect of certain energy products used to produce electricity. A transposition note for that directive is available at www.hmrc.gov.uk .
f2: Regulation 2(d) makes a consequential amendment to the definition of “relevant duty”.
f3: See the Finance Act 2000 (c. 17) Schedule 6 paragraph 14(4) about “exempt unlicensed electricity supplier”.