United Kingdom
Climate Change Levy exemption for renewables - The Finance Act 2000, which was introduced on 1 April 2001, exempts renewable source electricity supplied to non-domestic customers from paying the Climate Change Levy (STG 4.30/MWh / EUR 7.00/MWh).
Renewables Levy Exemption Certificates (LECs) are part of the evidence required by HM Revenue & Customs of the amount of renewable electricity supplied to non-domestic customers, and are only issued to eligible generating stations that have been accredited by Ofgem.
To receive LECs, non "Non Fossil Fuel Obligation (NFFO)" and non "Scottish Renewable Obligation (SRO)" generating stations inform Ofgem of their monthly electricity production figures up to two months after the end of the month of generation. A Consumption Declaration must also be provided each year by these generating stations for the period 1 April to 31 March. Ofgem uses this as a guarantee that the electricity for which the LEC is to be issued has or will be consumed in the UK. Ofgem may audit Consumption Declarations.
Ofgem issues Renewables LECs to generating stations or the electricity suppliers who bought the output of NFFO and SRO generating stations in the Non Fossil Purchasing Agency (NFPA) auction. For SRO generating stations, the supplier will be Scottish Power Energy Retail Ltd and/or SSE Energy Supply Ltd.
Suppliers allocate Renewables LECs to consumers according to renewable source contracts, and must inform Ofgem of this each month.
The relevant legislation is:
