Procedure Climate Change Levy Exemption for Generators Producing Electricity from Renewable Sources

09 February 2001

OFREG today asked generators who produce electricity from renewable sources and who wish to claim exemption from the Climate Change Levy to complete a questionnaire.

The Climate Change Levy is due to be introduced on 1 April 2001. Those generators who wish to apply for their output to qualify for an exemption must complete the questionnaire. This will allow OFREG to assess whether they meet the exemption criteria set by HM Customs & Excise in a Statutory Instrument due to be published shortly.

Generators accredited as being exempt from the Levy will be issued with Levy Exemption Certificates (LECs) for their monthly qualifying output. Electricity suppliers who buy the output will not have to pay Levy on that electricity. The supplier may pass this saving on to their non-domestic customers who have signed green contacts. Domestic customers are not affected by the Climate Change Levy.

The Accreditation Pack, including the questionnaire, is now available from Gerry Donnelly or Frankie Dodds at OFREG, Brookmount Buildings, 42 Fountain Street, Belfast, BT1 5EE, tel. 028 9031 1575, fax. 028 9031 1740.

Questionnaires must be returned to OFREG by Friday 23 February 2001.

Notes for Editors

The definition of a qualifying renewable source and other details about the exemption for renewables will be set out in an Order (Statutory Instrument) due to be placed before Parliamentary shortly.
OFREG is the Office for the Regulation of Electricity and Gas in Northern Ireland. OFREG’s aim is to bring choice and value to all gas and electricity customers by promoting competition and regulating monopolies. OFREG’s powers are provided for under the Electricity (Northern Ireland) Order 1992 and the Gas (Northern Ireland) Order 1996.
The Climate Change Levy will be paid by non-domestic customers at the rate of 0.43p per kWh.
A supply is excluded from the Levy if it is for domestic use or use by a charity for its non-business activities. The domestic and charitable exclusions are based on the VAT fuel power “qualifying use” provisions. VAT Notice 701/19 Fuel and Power explains the VAT rules in detail and is available from the National Customs and Excise Advice Service.
Levy Exemption Certificates will be used by suppliers and generators as evidence of the amount of renewable electricity they have supplied/generated on which the Levy will not be paid.
For further information please contact Gerry Donnelly or Frankie Dodds on 028 9031 1575