Part 5Electricity generator levy
Attribution and surrender of amounts: joint ventures and significant minority shareholders
299Amount that may be surrendered and use of that amount
1
Subject to subsection (7), the maximum amount of a shortfall amount that may be surrendered by a generating undertaking (“A”) to another (“B”) where A is a relevant shareholder in B, is the lesser of the amounts given by subsections (2) and (3).
2
The amount given by this subsection is the amount of the shortfall amount of A that is, on a fair and reasonable basis, referable to A’s interest in the generation attributed to B in the overlap period.
3
The amount given by this subsection is the amount of the exceptional generation receipts of B for the shortfall period that is, on a fair and reasonable basis, referable to A’s interest in the generation attributed to B in the overlap period.
4
Subject to subsection (7), the maximum amount of a shortfall amount that may be surrendered by a generating undertaking (“C”) to another (“D”) where D is a relevant shareholder in C is the lesser of the amounts given by subsections (5) and (6).
5
The amount given by this subsection is the amount of the shortfall amount of C that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.
6
The amount given by this subsection is the amount of the exceptional generation receipts of D for the shortfall period that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.
7
A generating undertaking may only surrender an amount of a shortfall amount relating to an overlap period if the result of Step 5 in section 279(5) for the undertaking for the qualifying period in which the overlap period falls would not exceed nil if—
a
all of the steps in section 279(5) for that qualifying period were carried out, including steps that would normally be ignored because a result of nil or less has already been found,
b
the amount surrendered were added to the result of Step 5, and
c
all other amounts surrendered for overlap periods falling with that period were added to the result of that Step.
8
Where an amount of a shortfall amount has been surrendered to a generating undertaking, that amount is to reduce the result of Step 5 in section 279(5), but not below nil, for the qualifying period in which the overlap period to which the shortfall amount relates falls.
9
A surrender of an amount of a shortfall amount is effective only if—
a
the generating undertaking which is surrendering the amount has consented to surrender that amount to the other generating undertaking, and
b
the other generating undertaking has made a claim to that amount (see section 305).