294Generation acquired and supplied by JV participantsU.K.
(1)Subsection (3) applies to generation if —
(a)the generation is attributed to a joint venture undertaking, other than in accordance with this section or sections 295 to 297,
(b)it is supplied, directly or indirectly, to a generating undertaking (“Q”) that is a participant in the joint venture (“the JV”) that comprises, or is the principal member of, the joint venture undertaking, and
(c)it is subsequently the subject of a wholesale purchase of electricity from Q.
(2)Where the generation attributed to the joint venture undertaking is generation falling within section 282(3)(b) (generation expected to be generated which was not generated), reference in subsection (1) to supply or purchase is to any supply or purchase that was expected in consequence of that generation having occurred.
(3)Where this subsection applies to generation—
(a)the generation is to be attributed to Q (as well as to the joint venture undertaking),
(b)in determining the amount of generation receipts to be attributed to the joint venture undertaking under section 283 in respect of that generation, do not take account of the transaction described in subsection (1)(c),
(c)the generation attributed to Q as a result of paragraph (a) is to be attributed to Q for the qualifying period of Q in which the generation occurred,
(d)subject to paragraph (f), the generation attributed to Q as a result of paragraph (a) is to be treated for the purposes of this Part as if it had been attributed under section 282(1),
(e)in determining the amount of generation receipts to be attributed to Q under section 283 in respect of generation attributed as a result of paragraph (a), take account of the costs of the transaction under which the generation so attributed was acquired or was expected to be acquired, and
(f)in determining the exceptional generation receipts of Q for a qualifying period of Q under section 279(5), any generation attributed to Q for that period as a result of paragraph (a) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
(4)But the amount generation that is to be attributed to Q in a qualifying period of Q under this section is not to exceed the amount of generation attributed to the joint venture undertaking in respect of that same period multiplied by the relevant proportion.
(5)The “relevant proportion” for the purposes of subsection (4) and section 295(3) is—
(a)the percentage of the JV’s ordinary share capital held—
(i)where Q is a generating undertaking which is a company, by Q, or
(ii)where Q is a generating undertaking which is a group, by members of Q, or
(b)in a case where the JV does not have ordinary share capital, the percentage of the JV’s profits available for distribution to equity holders of the JV—
(i)where Q is a generating undertaking which is a company, to which Q is beneficially entitled, or
(ii)where Q is a generating undertaking which is a group, to which members of Q are beneficially entitled.