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UK: Ofgem's CHP Exemption System Goes On-Line

Articles / Combined Heat and Power
Posted by 2 on Jun 23, 2003 - 09:27 AM

Energy regulator Ofgem [1] has launched a database for the new Combined Heat and Power Climate Change Levy exemption certificates. The Government [2] announced in the 2002 Budget that electricity generated by ‘good quality’ Combined Heat and Power (CHP [3]) stations would be classified as exempt from the Climate Change Levy. Under the scheme, CHP Levy Exemption Certificates (CHP LECS) are issued to CHP generators for their output each month.

The CHP LECs are issued in respect of a CHP station electricity output.
The LECs can then be used by electricity suppliers who supply the output to business customers. Business customers who buy the CHP generated electricity from the supplier will then avoid paying the Climate Change Levy.

The system launched on the 20th June 2003 - the CHP Information Management System (CIMS) - will allow generators and suppliers to view and manage their accounts on-line. Only account holders, such as generators will be able to view any details on the system.

The CCL exemption for ‘good quality’ [4] CHP generation took effect from April 2003.

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