(1)Subsection (2) applies to generation if—
(a)a subsidiary member (“A”) of a generating undertaking that is a group (“U”) has a significant minority shareholder that is a company or group,
(b)the generation is generation by a relevant generating station operated by A or a relevant subsidiary of A (see section 290(6)),
(c)a significant minority shareholder (“M”) in A that is a company or a group is party to arrangements that result in amounts arising by reference to the generation,
(d)those amounts would be taken into account in determining the generation receipts of U if A or a relevant subsidiary of A (whichever operates the station) were party to the arrangements, and
(e)the generation—
(i)is not supplied (directly or indirectly) to M, or
(ii)in the case of generation falling within section 282(3)(b) (generation expected to be generated which was not generated), was not expected to be supplied (directly or indirectly) to M.
(2)Where this subsection applies to generation—
(a)the generation is to be attributed to M (as well as to U),
(b)the generation attributed to M as a result of paragraph (a) is to be attributed to M for the qualifying period of M in which the generation occurred,
(c)subject to paragraph (d), the generation attributed to M 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),
(d)in determining the exceptional generation receipts of M for a qualifying period of M under section 279(5), any generation attributed to M 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).
(3)Where the generation is generation by a relevant generating station operated in partnership and at least one of the partners is neither A nor a relevant subsidiary of A, only the qualifying proportion of that generation (see section 294(4)) is to be attributed to M under subsection (2)(a).
(4)But the amount of generation that is to be attributed to M in a qualifying period of M is not to exceed the amount given by subtracting—
(a)the amount of generation attributed to M in that period under section 296, from
(b)the amount of generation that is attributable on a fair and reasonable basis to the activities of A and (where it has one or more relevant subsidiaries) its relevant subsidiaries multiplied by the relevant proportion (see section 296(7)).
(5)Where M is not a generating undertaking, M is to be treated as a generating undertaking for the purposes of this Part.