High Efficiency Combined Heat and Power cogeneration (HE CHP)

New provisions in force from 01 January 2017

Under the Finance Act 2016, amendments relating to High Efficiency Combined Heat and Power cogeneration (HE CHP) were introduced.

Legislation was amended to change a partial relief to a full relief in respect of:

A HE CHP relief is also available from the carbon charge component of Mineral Oil Tax (MOT). The HE CHP relief is not applicable to the non-carbon component of MOT.

The relief is granted by way of repayment of the tax on completion of a valid claim by the consumer concerned.

The amendments to the legislation provide that from 01 January 2017 a full relief will apply:

  • where the fuel is used in HE CHP to generate high efficiency electricity
  • and
  • where the actual quantity of fuel used is specified in a certificate issued by the Commission for Regulation of Utilities (CRU).

This means that the operators concerned must base their claims for relief on actual fuel used as certified by the CRU (that is, based on historic data). 

Next: Identification of quantity of fuel to which relief applies