Electricity Regulation (Amendment) (Carbon Revenue Levy) Act 2010

• Jurisdiction: Ireland

Number 13 of 2010
ELECTRICITY REGULATION (AMENDMENT) (CARBON REVENUE LEVY) ACT 2010
ARRANGEMENT OF SECTIONS
Section
1. Definition.
2. Amendment of section 9 (functions of Commission) of Act of 1999.
3. Carbon revenue levy.
4. Short title.
Acts Referred to
Electricity (Supply) (Amendment) Act 2001 2001, No. 9 Electricity Regulation Act 1999 1999, No. 23
Number 13 of 2010
ELECTRICITY REGULATION (AMENDMENT) (CARBON REVENUE LEVY) ACT 2010
AN ACT TO PROVIDE FOR THE IMPOSITION OF A LEVY TO BE KNOWN AS THE CARBON REVENUE LEVY ON SUCH AMOUNT OF THE REVENUES RECEIVED BY CERTAIN ELECTRICITY GENERATORS, THROUGH PARTICIPATION IN THE SINGLE ELECTRICITY MARKET, AS IS ATTRIBUTABLE TO THE EMISSIONS FROM EACH INSTALLATION OF WHICH AN ELECTRICITY GENERATOR IS THE OPERATOR; TO CONFER FUNCTIONS ON THE COMMISSION FOR ENERGY REGULATION IN RESPECT OF THE COLLECTION AND RECOVERY OF THE LEVY; TO PROVIDE FOR THE MANNER IN WHICH THE LEVY PROCEEDS SHALL BE ADMINISTERED; FOR THOSE PURPOSES TO AMEND AND EXTEND THE ELECTRICITY REGULATION ACT 1999 AND TO PROVIDE FOR RELATED MATTERS.
[30th June, 2010]
BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:
	Definition.	1.— In this Act “Act of 1999” means Electricity Regulation Act 1999 .
	Amendment of section 9 (functions of Commission) of Act of 1999.	2.— Section 9 of the Act of 1999 is amended in subsection (1)—
	(a) in paragraph (i) by deleting “and”,
	(b) in paragraph (j) by inserting “and” after “suppliers,”, and
	(c) by inserting the following after paragraph (j):
	“(k) to collect and recover the carbon revenue levy (within the meaning of section 40D) under Part VIB.”.
	Carbon revenue levy.	3.— The Act of 1999 is amended by inserting the following Part after Part VIA:
	“PART VIB
	Carbon Revenue Levy
	Interpretation (Part VIB).
	40B.— In this Part—
	‘allowance’ has the meaning given to it by the Regulations of 2004;
	‘CADA’ has the same meaning as in the Electricity Regulation Act 1999 (Public Service Obligations) Order 2002 ( S.I. No. 217 of 2002 ) (as amended by the Electricity Regulation Act 1999 (Public Service Obligations) (Amendment) (No. 2) Order 2007 ( S.I. No. 583 of 2007 ));
	‘carbon revenue levy’ has the meaning given to it by section 40D;
	‘electricity generator’ means a person licensed under section 14(1)(a) to generate electricity;
	‘emissions’ has the meaning given to it by the Regulations of 2004;
	‘installation’ has the meaning given to it by the Regulations of 2004;
	‘levy period’ means—
	(a) a period of 3 months, and
	(b) in the case where the final levy period is less than 3 months, that period;
	‘operator’ has the meaning given to it by the Regulations of 2004;
	‘qualifying generating station’ has the meaning given to it by section 40D;
	‘Regulations of 2004’ means the European Communities (Greenhouse Gas Emissions Trading) Regulations 2004 ( S.I. No. 437 of 2004 );
	‘relevant date’ means the date of the passing of the Electricity Regulation (Amendment) (Carbon Revenue Levy) Act 2010;
	‘Single Electricity Market Trading and Settlement Code’ means the code of that name established pursuant to section 9BA(1) and designated by the Commission pursuant to the Electricity Regulation Act 1999 (Single Electricity Market) Regulations 2007 ( S.I. No. 406 of 2007 ), as from time to time revised, amended, supplemented or replaced;
	‘tonne of carbon dioxide equivalent’ has the meaning given to it by the Regulations of 2004.
	Application of Part VIB to certain electricity generators.
	40C.— This Part applies to every electricity generator who—
	(a) is the operator of an installation that is in receipt of allowances issued by the Environmental Protection Agency pursuant to the Regulations of 2004, and
	(b) is bound by the Single Electricity Market Trading and Settlement Code.
	Carbon revenue levy.
	40D.— (1) Each electricity generator shall, subject to and in accordance with this Part and any regulations made under this Part, pay to the Commission, in respect of the immediately preceding levy period, a levy (in this Part referred to as the ‘carbon revenue levy’) on such amount of the revenues received during that levy period by the electricity generator concerned, through participation in the Single Electricity Market, as is attributable to the emissions from each installation of which the electricity generator is the operator, which amount is calculated in accordance with the formula—
	E x P
	where—
	E is the total of the emissions, during the levy period concerned, from each installation of which the electricity generator concerned is the operator, calculated in accordance with the formula for the calculation of emissions set out in Schedule 4 to the Regulations of 2004, expressed in tonnes of carbon dioxide equivalent, and
	P is the simple arithmetic average of the daily price of allowances for the levy period concerned by reference to such index as may be determined by the Commission from time to time in accordance with subsection (2).
	(2) When making a determination for the purposes of the construction of ‘P’ in the formula in subsection (1), the Commission shall have regard to such transparent and accessible pricing information relating to allowance trading, including the daily price thereof, as may be available and the Commission shall, as soon as practicable, publish the determination on its website.
	(3) The first levy period begins on the first day of the month immediately following the relevant date.
	(4) The carbon revenue levy shall be payable in accordance with this Part in respect of all levy periods up to and including the final levy period which ends on 31 December 2012.
	(5) Save in accordance with subsection (6), no carbon revenue levy is payable by an electricity generator in respect of a generating station which is the subject of an order under section 39.
	(6) (a) This subsection applies to a generating station in respect of which the following conditions are complied with (in this Part referred to as a ‘qualifying generating station’)—
	(i) the generating station is the subject of an order under section 39, and
	(ii) the electricity generator who is the operator of the generating station concerned is a counterparty to a CADA.
	(b) For the purposes of the construction of ‘E’ in the formula in subsection (1), the total of the emissions, during the levy period concerned, calculated in accordance with the formula for the calculation of emissions set out in Schedule 4 to the Regulations of 2004, shall, in the case of a qualifying generating station, include only such portion of the emissions as is attributable to the quantity of electricity produced by the qualifying generating station—
	(i) in respect of which revenues are received during that levy period by the electricity generator concerned through participation in the Single Electricity Market, and
	(ii) in respect of which the electricity generator does not receive payments from the Board in accordance with the CADA.
	Calculation of amount of carbon revenue levy.
	40E.— The amount of the carbon revenue levy payable by an electricity generator in respect of the immediately preceding levy period shall be calculated by reference to—
	(a) the amount calculated in accordance with the formula in section 40D(1), and
	(b) the percentage rate provided for by section 40F.
	Percentage rate.
	40F.— (1) For the purpose of calculating the amount of the carbon revenue levy under section 40E and taking account of the fact that electricity generators, for the purposes of compliance with the Regulations of 2004, may require to purchase a proportion of their allowances, the percentage rate referred to in section 40E(b) shall be—
	(a) such percentage rate as stands specified by order under subsection (2), or
	(b) where no amount stands so specified, 65 per cent.
	(2) (a) The Minister may, from time to time, review the percentage rate provided for by subsection (1) and may, subject to this section, having considered any representations made under subsection (4)(a), by order provide for a...