Motor and heating fuels used to generate electricity — relief from Excise Duty (Excise Notice 175)

1. Overview

1.1 Information in this notice

This notice gives details of the relief from excise duty available for users of heavy or light hydrocarbon oil used to generate electricity (‘Electricity Relief’).

Light oilIt is a hydrocarbon oil where either:

• more than 89%, by volume, distils at a temperature of no more than 210°C
• it gives off an inflammable vapour at a temperature less than 23°C when tested in a way set by the Acts on petroleum

Heavy oil is any hydrocarbon oil that is not ‘light oil’.

This notice also explains the roles and responsibilities of qualified claimants.

1.2 Who should read this notice

This notice is for generators of oil based electricity in the UK, including:

• including combined heat and power stations
• auto-generators
• exempt(CHP) unlicensedstations, electricityauto-generators suppliers

Combined heat and power stations produce electricity or motive power that can be operated for purposes including the supply to any premises of:

• heat produced together with electricity or motive power
• steam produced from, or air or water heated by, such heat

Auto-generators and exempt unlicensed electricity suppliers are defined under section 2.7.1 of this notice.suppliers.

1.3 WhatLegislation lawscoverings cover this notice

Primary legislation:

Legislation
Primary	Customs and Excise Management Act 1979 The Hydrocarbon Oil Duties Act 1979 The Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulations 2005 (SI(SI 2005/3320) The2005/3320, Hydrocarbonas Oilamended Dutiesby (Reliefs for Electricity Generation) (Amendment) Regulations 2007 (SI 2007/2191) The2007/2191, Hydrocarbon Oil, Biofuels and Other Fuel Substitutes (Determination of Composition of a Substance and Miscellaneous Amendments) Regulations 2008 (SI 2008/753) The2008/753, Hydrocarbon Oil Duties (Reliefs for Electricity Generation) (Amendments for Carbon Price Support) Regulations 2013 (SI 2013/657) The2013/657, Hydrocarbon Oil Duties (Reliefs for Electricity Generation) (Amendments for Carbon Price Support) Regulations 2014 (SI 2014/713) The2014/713, Hydrocarbon Oil Duties (Consequential Amendments and Transitional Provisions) Regulations 2022 (SI 2022/234) The Hydrocarbonand Oil Duties (Reliefs for Electricity Generation) (Amendments for Carbon Price Support) Regulations 2015 (SI 2015/943) 2015/943
Secondary legislation: The	Biofuels and Other Fuel Substitutes (Payment(payment of Exciseexcise Dutiesduties etc.) Regulations 2004 (SI 2004/2065) The Biofuels and Otherso Fuelon) SubstitutesRegulations (Payment2004 of(SI Excise2004/2065, Dutiesas etc)amended (Amendment)by Regulations 2007 (SI 2007/1640) The Biofuels2007/1640, and Hydrocarbon Oil Duties (Miscellaneous Amendments) Regulations 2007 (SI 2007/3307) The Hydrocarbon2007/3307, Oil, Biofuels and Other Fuel Substitutes (Determination of Composition of a Substance and Miscellaneous Amendments) Regulations 2008 (SI 2008/753) The Hydrocarbon2008/753 Oil Duties (Consequential Amendments and Transitional Provisions) Regulations 2022 (SI 2022/234)

1.4 Health and Safety

You must follow the legal rulesprovisions forrelating to health and safety,safety such as the Health and Safety at Work Act 1974. ThisThese provisions may include the need to display warning notices and to giveissue health and safety instructions,instructions to both staff and visitors.

If you issue special equipment or protective clothing to your staff forwhen activities, they are undertaking activities such as handling, inspecting or sampling fuel,fuel then you must giveprovide us similar clothing and equipment to us when we doundertake the same activities.

2. Relief schemeScheme

2.1 Background

The Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulationsregulations 2005 allows for a relief from fuel duty on oils used in electricity generation.

It was introduced on 1 January 2006 to make sure the tax treatment of oils used in electricity generation is broadly consistent with other energy products used for the same purpose.

ToIn order to encourage investment in low carbon power generation, the government introduced a ‘carboncarbon price floor’floor (CPF) from 1 April 2013. Carbon price floor is designed to give an incentive to invest in low carbon power generation by providing certainty to the carbon price in the UK electricity generation sector.

Supplies of coal and other solid fuels, natural gas and liquefiedLiquefied petroleumPetroleum gasGas (LPG) used in electricity generation are liable to newly created carbon price support (CPS) rates of Climate Change Levy (CCL) from 1that Aprildate. 2013.

For oils used in electricity generation from thatthe same date, the amount of fuel duty that can be reclaimed under the Electricity Relief will be adjusted, settingestablishing effective ‘carbon price support rates’ for oils. Carbon price support rates are designed to reflect the amounts of carbon dioxide produced when the fuels are burned.

2.2 Claiming relief

Relief must be claimed by a qualified claimant. A qualified claimant —is a person who causes qualifying oil to be used to eitherproduce produce:

• electricity in a generating station
• outputs ofor ato combinedproduce heat and power station

Qualifying oil is either:

• heavy oil charged with a duty of excise under section 6(1) of the Hydrocarbonoutputs Oil Duties Act 1979 on whose delivery for home use no rebate has been allowed under section 11(1), 13ZA or 13AA of that Act, or for which a paymentCHP under section 12(2) of that Act has been made
• light oil on whose delivery for home use rebate has been allowed under section 14(1) of that Act
station.

2.3 Oils that qualify for relief

Oils used to generate electricity qualify for the relief if they:

• were put into a generator:
  • before 1 April 2022 (rebated heavy oil)
  • on or after 1 April 2022 (full duty paid heavy oil, or rebated heavy oil used as allowed under a licence issued by HMRC and for which a payment of the rebate is made)
• are light oil (which is rebated for use as furnace fuel)

Examples of rebated heavy oils include:

• fuel oil
• gas oil including hydrotreated vegetable oil (HVO)
• kerosene
• other heavy oils such as lubricants and recovered fuel oil

Examples of rebated light oils include naphtha or condensate.

If you’reyou are unsure if the oil used to produce electricity qualifies for relief, contact the helpline on telephone: 0300 200 3700.

Biofuels used to generate electricity are also subject to relief from fuel duty. This is provided for by part 7 of Thethe Biofuels and Other Fuel Substitutes (Payment(payment of Exciseexcise Dutiesduties and etc.)so on) Regulations 2004.

Read BiofuelsExcise and other fuel substitutes (Excise Notice 179e)179e tofor findguidance outon how to claim relief on biofuels used to generate electricity.

2.4 Form of relief

Relief is given in the form of a repayment of fuel duty to the qualified claimant.

2.5 Amount of duty that can be claimed

For generators in Great Britain (England, Scotland and Wales), the amount of relief which can be claimed is the amount of duty charged and paid on the qualifying oil used to produce electricity less an amount forin carbonrespect priceof supportCPS rates of fuel duty.

For generators in Northern Ireland, the amount of relief which can be claimed is the amount of duty charged and paid on the qualifying oil used to produce electricity in a generating station.

Different rules apply to combinedCHP heat and power stations, read section 3 of this notice.Notice for further details.

2.6 CarbonCPS price support rates for fuel duty

For Great Britain, the following rates apply.

Fuel	Rate from 1 April 2014 to 31 March 2015 (or(but for kerosene 1 May 2014 to 31 March 2015) (per litre)	Rate from 1 April 2015 to 31 March 2016 (per litre)	Rate from 1 April 2016 to 31 March 2022 (per litre)
Fuel oil, other heavy oil, rebated light oil (£ per litre)	£0.03011	£0.05730	£0.05711
Gas oil, kerosene, rebated bioblend (£ per litre)	£0.02642	£0.04990	£0.04916

Fuel	Rate from 1 April 2022 (per litre)
Qualifying oil which is light oil (light oil for use as furnace fuel)	£0.05711
Qualifying oil which is heavy oil other than gas oil or kerosene (on which no rebate is allowed under section 11(1) or 13ZA of the Hydrocarbon Oil Duties Act 1979, or forin respect of which a payment is made under section 12(2) of the Hydrocarbon Oil Duties Act 1979)	£0.05711
Qualifying oil which is gas oil or kerosene (on which no rebate is allowed under section 11(1)(b) or 13AA of the Hydrocarbon Oil Duties Act 1979)	£0.04916
Qualifying bioblend which is bioblend charged with a duty of excise under section 6AB(2) of the Hydrocarbon Oil Duties Act 1979 on whose delivery for home use no rebate is allowed under section 14B(3) of that Act	£0.04916

For Northern Ireland, the carbonCPS price support rates do not apply forin respect of oils used in electricity generation, regardless of if the electricity is:

• sent to the grid
• consumed in Northern Ireland

2.7 When relief is allowed

Relief is allowed on either:

• quantities of qualifying oil used to generate electricity in a generating station
• station, or the outputs of a fully or partly exempt combinedCHP heat and power station, defined in Finance Act 2000, Schedule 6, paragraph 148 (2) and (3)
station.

This dependsis onsubject to the limitations set out in section 3 of this notice.Notice.

Relief is allowed only after the oil is used to produce the electricity. ReliefTherefore, relief is not allowed on unused oil held as stock.

2.7.1 Auto-generators and exempt unlicensed electricity suppliers

No relief is allowed on qualifying oil used to produce electricity by:

• by an auto-generator
• or by an exempt unlicensed electricity supplier
supplier.

An ‘auto-generator’ is a person who produces electricity primarily for theirhis own use. Electricity will be treated as primarily for own use when it’sit is not produced by:

• an electricity utility or a person treated as such for the purposes of any supplies of electricity they make
• a person who has consumed, in the preceding 3 months, less than 75% of the electricity produced in that period

An electricity utility is the holder of a licence under either:

• section 6(1)(d) of the Electricity Act 1989 (supply licences)
• article 10(1)(c) or (2) of the Electricity Supply (Northern Ireland) Order 1992

Except when the holder is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.

An ‘exempt unlicensed electricity supplier’ is a person who’swho is exempt from either:

• section 4(1)(c) of the Electricity Act 1989 (persons supplying electricity to premises) (the exemption is granted by an order under section 5 of that Act)
• article 8(1)(c) of the Electricity Supply (Northern Ireland) Order 1992 (the exemption is granted by an order under articleArticle 9 of that Order)

ExceptThis whenapplies they’reunless that person is acting otherwise than for purposes connected with the carrying on of activities authorised by the exemption.

However, relief is allowed when electricity produced by an auto-generator or an exempt unlicensed electricity supplier is supplied to a licensed electricity supplier (or a person treated as such under the ClimateCCL Change Levy legislation). Read paragraph 2.5 for information on the amount of relief that can be claimed.

Auto-generators or exempt unlicensed electricity suppliers using combined heat and power stations should readrefer to section 3 of this notice.

2.8 How you claim relief

If you’reyou are a qualified claimant you should submit your claim,claims, including for combinedCHP heat and power (CHP) stations, onin writing. formForm EX55 either:

• online
• byshould post

Yoube mustused emailfor thethis supportingpurpose documentsand foris youravailable claimfrom toour morcrepaymentclaimsteam@hmrc.gov.uk.website or from our helpline on telephone: 0300 200 3700.

You should also use form EX55 to account for the carbonCPS price support rates of fuel duty. You’llYou needshould to:

• record the quantity of fuel used during the period of the claim
• and use the rightappropriate carbonCPS price support rate for the fuel used
• to calculate the total carbon price support charge. This charge

We will then deductbe thededucted carbon price support charge from the amount of fuel duty reliefon which you are claiming.claiming relief.

You should send the claim and supporting documentation to the HMRC Mineral Oil Reliefs Centre, by email: morcrepaymentclaimsteam@hmrc.gov.uk.

2.9 When to claim

Claims must be for a period of at least one month, but not longer than 3 years and must be made no later than 3 months after the period itto relateswhich to.it relates. Claims cannot be made for amounts less than £50.

Different rules apply to combinedCHP heat and power stations, read section 3 of this notice for further details.

2.10 Evidence you need to submit with your claim

You’llYou will need to include supporting documentsdocumentation with your claim to showdemonstrate that both theseof the following apply:

• you used the oil to produce electricity
• the duty has been paid and is not subject to any other:
  • application
  • claim for repayment
  • remission
  • drawback

Examples of the sort of evidence neededrequired include:

• include purchase orders
• orders, delivery notes
• or sales invoices

Otherinvoice, although other forms of evidence may also be accepted.

2.11 Claiming the relief on rebated fuel used before 1 April 2022

After 1 April 2022, if your claim for relief includes rebated fuel you used before this date, you must claim at the rebated rate. This includes when you’ve used rebated fuel that was already in your generator after 1 April 2022, before the rules changed.

If you’re making a claim that includes rebated and unrebated oil, you should submit the details separately on the same EX55 claim form after you’ve entered the first set of details. You do this by clicking the ‘Add’ button at the bottom of the page.

3. Combined heat and power stations (CHP stations)

3.1 Background

This section only applies to combinedCHP heat and power stations that:

• that are assessed and certified under the CombinedCHP Heat and Power Quality Assurance (CHPQA) programme byadministered on behalf of the Department for Energy Security and Net Zero
• have (DESNZ) and are in possession of an exemption certificate issued by theDESNZ’s Secretary of StateState. for Energy Security and Net Zero

A combinedCHP heat and power station that’sthat is not within the CombinedCHPQA Heat and Power Quality Assurance programme is normally treated, aboutas regards electricity, as a form of electricity generation. CombinedCHP heat and power stations within this category may be able to claim relief on fuel duty only in the circumstances set out in paragraph 2.7.1.

Self-assessment and certification under theCHPQA Combined Heat and Power Quality Assurance programme is based on a methodology designed to assess the quality of a combinedCHP heat and power station and its qualification as a goodGood qualityQuality combinedCHP heat and power station. This then setsdetermines the extent to which it’sit is eligible to receive fiscal and other benefits. For ClimateCCL, Change Levy, for example, it will setdetermine the extent to which both the input fuel used in the combinedCHP heat and power station and the corresponding outputs (direct and self-supplies of qualifying power output electricity) are relieved of Climate Change Levy.CCL.

For full relief on input fuel, a station needs to achieve, or better, the efficiency percentage threshold of 20%. When this criterion is not met, relief from ClimateCCL Change Levy is scaled back. This is calculated by applying the ‘relevant fraction’, the ratio between a station’s efficiency percentage and the threshold efficiency percentage, to supplies made to the station. A combinedCHP heat and power station is able to claim relief on oils used to generate outputs forin respect of an annual operation scaled back to the same relevant fraction as entitlement to relief from Climate Change Levy.CCL.

CombinedCHP heat and power stations in Great Britain will also need to account for carbonCPS price support rates of fuel duty on oil that’sthat is referable to the production of electricity. However, from 1 April 2015 they only need to account for the carbonCPS price support rates on oil that’sthat is referable to electricity used on-site.

Electricity is used on-site if it’sit is self-supplied or supplied to a consumer by an exempt unlicensed electricity supplier.

Electricity is self-supplied when the producer makes no supply of it to another person, but causes it to be consumed in the UK. This will include the parasitic load of the combinedCHP heat and power station.

A combinedCHP heat and power station can be an exempt unlicensed electricity supplier if it qualifies under Class A or Class C of Schedule 4 of The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001.

3.2 Outputs from a combined heat and power stationCHP

AOutputs combinedfrom heata andCHP power station produces electricity or motive power that is (or may be) operated for purposes including the supply to any premises of:include:

(a)

• heat
• steam
• mechanical produced in association with electricity or motive power
  
• electricity
(b) steam produced from, or air or water heated by, such heat

3.3 Amount of relief that can be claimed

If you’reyou are a fully exempt combinedCHP heat and power station, that is to say your efficiency percentage is equal to, or exceeds the threshold efficiency percentage, the amount of relief you can claim is the amount of duty charged and paid on the qualifying oil.

If you’reyou are a partially exempt combinedCHP heat and power station, that is your efficiency percentage is less than the threshold efficiency percentage, the amount of relief you can claim is the amount of duty charged and paid on the qualifying oil used to produce your outputs scaled back to the relevant fraction.

However, the amount of relief that can be claimed is reduced, less an amount forin therespect carbonof pricethe supportCPS rates of fuel duty.

3.4 How to calculate your claim

You should first apply the relevant fraction to the quantity of qualifying oil or bioblend you have used during the annual operation to which the claim refers,refers in order to calculate the amount of fuel duty relief you’reyou are claiming. Read section 3.5 of this notice.

You then need to calculate the carbon price charge for the annual operation. For the 2015 annual operation you’llyou will need to determine the quantity of qualifying oil or bioblend consumed between:

• 1 January and 31 March to produce electricity, read section 3.6 of this notice
• 1 April and 31 December to produce electricity used on-site, read section 3.6 of this notice

For subsequent annual operations after then you should apply the percentage of total fuels referable to the production of electricity used on-site during that annual operation to qualifying oil or bioblend oil consumed to produce outputs during that operation.

Once you have applied the carbonCPS price support rates to these quantities and calculated the total carbon price charge, the resulting figure will then be deducted from the amount of fuel duty relief you’reyou are claiming.

3.5 What the relevant fraction is

The relevant fraction is the fraction when the numerator is the efficiency percentage for the station, and the denominator is the threshold efficiency percentage for the relevant annual operation.

The efficiency percentage is the station’s power efficiency, as stated on its CombinedCHPQA Heat and Power Quality Assurance certificate. A certificate issued for a combined heat and power station, following assessment of the station against criteria set out in the Combined Heat and Power Quality Assurance.

For example, when in an annual operation, a station achieves an efficiency percentage of 15%, and the threshold efficiency percentage is 20 per cent, the relevant fraction is:

15 ÷ 20 = 75%.

3.6 How to determine the quantity of oil referable to the production of electricity

You’llTo needestablish tothe referquantity of oil referable to the Combinedproduction Heatof andelectricity Poweryou Qualitywill Assuranceneed to refer to the CHPQA certificate for during the annual operation to which the claim refers.refers:

You’ll

Step	Necessary need to take the following steps: action
1	Establish the quantity of input fuel used to generate electricity in the annual operation. This is calculated using one of the following equations: For combinedCHP heat and power stations that do not produce mechanical power:power Q = TFI - (QHO ÷ 0.81) TFI = Total Fuel Input taken from the certificate. QHO = Qualifying Heat Output taken from the certificate. 81% is the reference boiler efficiency. For combinedCHP heat and power stations that do produce mechanical power:power Q = (TFI – (QHO ÷ 0.81)) × (1 – (MO ÷TPO)) TPO = Total Power Output taken form the certificate. MO is the Mechanical Output in megawatt-hours (electrical) generated by the station in a given annual operation to drive a mechanical load (such as a pump, fan or compressor) through direct coupling, without the use of electricity. You will have givenprovided this within your CombinedCHPQA Heat and Power Quality Assurance annual self-assessment. self assessment.
2	Calculate the percentage of the fuel input in the annual operation to generate electricity, by applying the equation: (Q ÷ TFI) × 100. 100
3	Apply this percentage to the quantity of qualifying oil and bioblend consumed to produce outputs beforeprior 1 April 2015.

3.7 How to determine the percentage of oil referable to the production of electricity consumed on-site

You’llYou will again need to refer to the CombinedCHPQA Heat and Power Quality Assurance certificate for during the annual operation to which the claim refers.refers:

You’ll

Step	Necessary needaction
1	Establish to take the following steps: Find out the quantity of input fuel used to generate electricity in the annual operation. How to do this is explained in paragraph 3.5 at step 1. Find
2	Establish out the amount (R) of fuel used in that annual operation to generate electricity that’sthat is not qualifying electricity. This is done by applying the equation: R = Q × (1 – (ES ÷ (TPO – MO))) TPO = Total Power Output taken from the certificate. ES = the electricity used on-site in the annual operation covered by the certificate. You will need to be able to demonstrate this from your business records. For the purposes of the above equation this figure cannot be greater than the Qualifying Power Output shown on the certificate. MO is explained in paragraph 3.5.
3	Calculate the percentage of fuel in the annual operation covered by the certificate used to generate electricity that’sthat is not qualifying electricity, by applying the equation: (R ÷ TFI) × 100. 100
4	Apply this percentage to the quantity of qualifying oil and bioblend consumed to produce outputs on or after 1 April 2015.

3.8 CombinedCHP heat and power stations situated in Northern Ireland

The carbonCPS price support rates of fuel duty do not apply forin respect of oils used in electricity generation in Northern Ireland, regardless of if the electricity is:

• sent to the grid
• consumed in Northern Ireland

3.9 Additional information combinedCHP heat and power stations need to supply

CombinedCHP heat and power stations need to supply a copy of their CombinedCHPQA Heat and Power Quality Assurance certificate and Secretary of State certificate with their claim.

A Secretary of State certificate is given by the Secretary of State under paragraph 148(4) or (5) of Schedule 6 to the Finance Act 2000.

Failure to supply the certificates may delay the processing of claims.

3.10 When combinedCHP heat and power stations should make a claim

Applications for relief must be forin respect of an annual operation and must be made no later than nine months after the annual operation to which it relates.

Claims cannot be made for amounts less than £50, nor can they be made based on the previous year’s operation. This means that duty can only be claimed after the actual performance for the year is known and certified.

4. Dealing with HMRC

4.1 Visits by HMRC

We may wish to inspect any generating station or combinedCHP heat and power station in which a qualified claimant has used oil to produce electricity. We’llWe will normally make an appointment to see you and we’llwe will try to make our visit with as little disruption to your business as possible.

When we make our appointment we’llwe will tell you:

• who we want to see
• what records we want to see
• how long we think that the visit will take

4.2 Officers’ powers

HMRC officers may:

• inspect

Action	Law
Inspect any generating station or combinedCHP heat and power station in which qualifying oil is used to produce electricity under	The Hydrocarbon Oil Duties (Reliefs for Electricity Generation) Regulations 2005 require
Require the production of your business records and remove or take copies of those records	CEMA under1979 thes.118B. Customs and Excise Management Act 1979, section 118B Read Revenue Traders (Accounts and Records) Regulations 1992 for more information. information

4.3 Penalties

If you make a false declaration or claim for relief you could be liable to a financial penalty.

4.4 If you disagree with a decision

If you disagree with a decision made by one of our decision,officers you may be able to:

• to have a review
• or to appeal to an independent tribunal

tribunal. If so, we’llwe will offer you a review in our decision letter and tell you about your right of appeal.

If you disagree with the decision, you may either accept the review offer or appeal to the independent tribunal. If you accept the review offer, but do not agree with the review conclusion you’llyou will still be able to appeal to the independent tribunal.

Find outMore moreinformation abouton HMRC’s review and appeal procedures. is available on our website.

5. Glossary

Term	Description
Annual operation	A period commencing on 1 January and ending on 31 December.
Auto-generator	Generator of electricity primarily for own use when the owner of the generating plant has title to the input and output fuel. (Primarily = 75 per cent of the generated output).
CCL/levy	Climate Change Levy. A levy on specific forms of energy supplied to industrial and commercial users.
CEMA 1979	The Customs and Excise Management Act 1979.
Combined heat and power (CHP) station	A station producing electricity or motive power that is (or may be) operated for purposes including the supply to any premises of: (a) heat produced in association with electricity or motive power or (b) steam produced from, or air or water heated by, such heat.
CHPQA	The Combined Heat and Power Quality Assurance Standard Issue 3, January 2009 originally published by the Department for the Environment, Food and Rural Affairs (the ‘CHPQA Standard’) including the later of version Final 1.0, 2.0 or 3.0 of CHPQA Guidance Notes 0 to 4 (including 2(S), 3(S), 4(S), 10 to 28 and 30).
CHPQA certificate	A certificate issued in respect of a CHP station following assessment of the station against criteria set out in the CHPQA.
CPF	carbon price floor is designed to provide an incentive to invest in low carbon power generation by providing certainty to the carbon price in the UK electricity generation sector.
CPS rates	carbon price support rates designed to reflect the amounts of carbon dioxide produced when the fuels are burned.
Electricity utility	The holder of: (a) a licence under section 6(1)(d) of the Electricity Act 1989 (supply licences) or (b) a licence under Article 10(1)(c) or (2) of the Electricity Supply (Northern Ireland) Order 1992. Except when the holder is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.
Exempt unlicensed electricity supplier	A person to whom an exemption from: (a) section 4(1)(c) of the Electricity Act 1989 (persons supplying electricity to premises) is granted by an order under section 5 of that Act, or (b) Article 8(1)(c) of the Electricity Supply (Northern Ireland) Order 1992 is granted by an order under Article 9 of that Order. Except when they are acting otherwise than for purposes connected with the carrying on of activities authorised by the exemption.
Fully exempt CHP station	A fully exempt combined heat and power station as defined in Finance Act 2000, Schedule 6, paragraph 148(2).
Generating station	A station producing electricity.
Heavy oil	Hydrocarbon oil other than light oil.
Licensed supplier	The holder of a licence under: (a) section (1)(d) of the Electricity Act 1989 (supply licences) (b) Article 10(1)(c) or (2) of the Electricity Supply (Northern Ireland) Order 1992. Except when the holder is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.
Light oil	Hydrocarbon oil which either: (a) is not less than 90% by volume and distils at a temperature not exceeding 210°C, (b) gives off an inflammable vapour at a temperature of less than 23°C when tested in a manner prescribed by the Acts relating to petroleum.
Outputs	Electricity or motive power produced in a CHP station and either: (a) heat or steam supplied from a station (b) air, or water that is heated or cooled and is supplied from a station
Partly exempt CHP station	A partly exempt combined heat and power station as defined in Finance Act 2000, Schedule 6, paragraph 148(3).
Qualifying bioblend	Bioblend charged with a duty of excise under section 6AB(2) of the Hydrocarbon Oil Duties Act 1979 on whose delivery for home use no rebate is allowed under section 14B(3) of that Act.
Qualified claimant	A person who causes qualifying oil to be used to produce electricity in a generating station or the outputs of combined heat and power station.
Qualifying oil	(a) Heavy oil charged with a duty of excise under section 6(1) of the Hydrocarbon Oil Duties Act 1979 on whose delivery for home use no rebate has been allowed under section 11(1) , 13ZA or 13AA of that Act, or in respect of which a payment under section 12(2) of that Act has been made. (b) Light oil on whose delivery for home use rebate has been allowed under section 14(1) of that Act.
Relevant duty	The duty charged on qualifying oil by section 6(1) of the Hydrocarbon Oil Duties Act 1979 less any rebate that has been allowed by section 11(1)[, 13ZA][, 13AA] or 14(1) of that Act
Secretary of State certificate	A certificate given by the Secretary of State under paragraph 148(4) or (5) of Schedule 6 to the Finance Act 2000.

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