You may use your CHPQA Certificate to support a claim for the benefits offered to Good Quality CHP.

To claim Enhanced Capital Allowances (ECAs), you must have a Secretary of State (Energy Efficiency) Certificate before claiming the allowance on your Tax Return.

To claim Climate Change Levy (CCL) exemption on fuel inputs to and power outputs from, your CHP Scheme you must have a Secretary of State (combined heat and power) exemption Certificate for your CHP Scheme.

You must then complete and submit Supplier Certificates (PP11) to each of your energy suppliers (copied, together with Supporting Analysis Form PP10, to HM Revenue and Customs).

SoS Certificates are required to show that you are legally entitled to claim the benefit concerned.

Please note existing Secretary of State (combined heat and power) exemption Certificates remain valid from the date of issue unless varied or revoked, provided the operator maintains that validity by sending a copy of the current CHPQA Certificate to the SoS annually by 30th June.

The issue of Secretary of State (combined heat and power) exemption certificates (required for claiming CCL exemption) and Energy Efficiency Certificates (required for claiming ECAs) is dependent on the information contained in your CHPQA certificate.

Please note, for schemes with a facility to export electricity, the main intended business must be to provide heat and power for identified users on site or to known third parties and not to generate power for sale to or via unspecified third parties. If eligible and you requested one when completing CHPQA Form F3, this will be issued once the self-assessment has been satisfactorily validated by CHPQA.

In order to receive a Secretary of State (combined heat and power) exemption Certificate you must send a copy of your CHPQA Certificate with a letter of request (a proforma to complete was sent with your CHPQA certificate) to:

Once in possession of a Secretary of State (combined heat and power) exemption Certificate, if the Qualifying Power Output of your CHP Scheme is less than the Total Power Output, then you may be required to register to collect Climate Change Levy. See HM Revenue and Customs Notice CCL 1/3 (August 2005).

Please note that all CHP operators who have requested a Secretary of State (CHP) Exemption Certificate, MUST obtain Levy Exemption Certificates (LECs) for all their Scheme’s QPO from Ofgem or Ofreg, unless they plan not to export electricity off-site. Click here for further details

If you wish to request exemption from Business Rating of CHP power generating plant and machinery, a valid Secretary of State (combined heat and power) exemption Certificate is also required.

Your CHPQA Certificate also contains the information you need to complete PP10 and PP11 Supplier forms. These can be obtained from:

or downloaded from here >> http://www.hmrc.gov.uk/ from within HMRC notice CCL 1/3 (August 2005).

Queries?

Comprehensive guidance is available on most of the issues described on this page.
Please also check the Guidance Notes section or the Frequently Asked Questions.