Excise Citation, commencement and effect 1 1 These Regulations may be cited as the Hydrocarbon Oil Duties (Reliefs for Electricity Generation) (Amendments for Carbon Price Support) Regulations 2015 and come into force on 1st April 2015. 2 They have effect in relation to qualifying oil or qualifying bioblend used in a combined heat and power station in Great Britain on or after that date. Amendments to the Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulations 2005 2 The Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulations 2005 are amended as follows. 3 In regulation 9 (application and interpretation of part 4), in paragraph (2)— a after “Part” insert “and Schedule 3”; b before the definition of “CHPQA” insert— ba “ CHP Qualifying Heat Output”, “CHP Qualifying Power Output”, “CHP Total Fuel Input” and “CHP Total Power Output” have the meaning given in section 4 of the CHPQA; ; c for the definition of “CHPQA” substitute— c “CHPQA” refers to the Combined Heat and Power Quality Assurance Standard, Issue 5 (November 2013), prepared by the Department of Energy and Climate Change (“the CHPQA Standard”); ; d after the definition of “CHPQA certificate” insert— da “non-qualifying electricity” means electricity to which paragraph 24B(2A) of Schedule 6 to the Finance Act 2000 does not apply; db “qualifying electricity” means electricity to which paragraph 24B(2A) of Schedule 6 to the Finance Act 2000 applies. . 4 In regulation 10 (amount of relief)— a in paragraph (1), for “paragraph (4)” substitute “paragraphs (4) and (7)”; b after paragraph (3) insert— 3A Paragraphs (4) and (5) apply to qualifying oil or qualifying bioblend used to produce outputs of the station before 1st April 2015. ; c after paragraph (5) insert— 6 Paragraphs (7) and (8) apply to qualifying oil or qualifying bioblend used to produce outputs of the station on or after 1st April 2015. 7 Where a quantity of the qualifying oil or qualifying bioblend used to produce outputs of the station is referable to the production of non-qualifying electricity in the relevant annual operation, the amount of relief allowed under paragraphs (1) and (2) is the amount of duty that has been charged and paid on the quantity that is so referable less the relevant amount specified in Schedule 2 (carbon price support rates). 8 For the purposes of paragraph (7), the quantity of qualifying oil or qualifying bioblend that is referable to the production of non-qualifying electricity is such quantity as is determined in accordance with Schedule 3. . 5 After Schedule 2 insert— SCHEDULE 3 FUELS REFERABLE TO THE PRODUCTION OF NON-QUALIFYING ELECTRICTY IN A COMBINED HEAT AND POWER STATION Regulation 10(8) 1 The extent to which a quantity of qualifying oil or qualifying bioblend (“input fuels”) is referable to the production of non-qualifying electricity in a combined heat and power station is to be determined in accordance with paragraphs 2 to 5. 2 Calculate the total quantity of input fuels referable to the production of electricity in accordance with the following formula— ( T F I − Q H O η h , r e f ) × ( 1 − M O T P O ) Where— TFI is the CHP Total Fuel Input for the station specified on the CHPQA certificate relating to the relevant annual operation. QHO is the CHP Qualifying Heat Output for the station specified on the CHPQA certificate relating to the relevant annual operation. η h , r e f is the reference boiler heat efficiency, taken here to be 81%. MO is Mechanical Output, which is the amount which is the amount of energy in megawatt-hours (electrical) (MWhe) generated by the station in the relevant annual operation that is used to drive a mechanical load (such as a pump, fan or compressor) through direct coupling, without the use of electricity. TPO is the CHP Total Power Output for the station specified on the CHPQA certificate relating to the relevant annual operation. 3 Calculate the total quantity of input fuels referable to the production of non–qualifying electricity in accordance with the following formula— Q × ( 1 − E S T P O − M O ) Where— Q is the quantity of input fuels referable to the production of electricity calculated in accordance with paragraph 2. ES (which must not exceed the QPO) is the amount of qualifying electricity in megawatt-hours generated by the station in the relevant annual operation. QPO is the CHP Qualifying Power Output for the station specified on the CHPQA certificate relating to the relevant annual operation. TPO and MO have the meaning given in paragraph 2. 4 Calculate the percentage of input fuels referable to the production of non-qualifying electricity in accordance with the following formula— ( R T F I ) × 100 Where— R is the quantity of input fuels referable to the production of non-qualifying electricity calculated in accordance with paragraph 3. TFI has the meaning given in paragraph 4. 5 Apply the percentage calculated in accordance with paragraph 3 to the quantity of input fuels used to generate outputs of the station. . Nick Lodge Jim Harra Two of the Commissioners for Her Majesty’s Revenue and Customs 26th March 2015