1. Consultant - Energy Regulation
Electricity Tax
Tony Thornton
Consultant - Energy Regulation
25 June 2008
Provided solely to aid industry discussion – contents not to be relied
upon for any other purpose.

2. Overview – in Brief
Application: of EU Energy Tax Directive, and in accordance with Chapter 1, Part 2 of the Finance Act 2008
Effective: an Excise Tax from 1 October 2008 applicable to business and non-business customers
Two rates
Business Use €0.5 per unit (MWh)
Non-business Use €1 per unit (MWh)
Reliefs: allowed for renewables, environmentally friendly heat and power cogeneration, chemical reduction, electrolytic or metallurgic processes, combined heat and power generation, etc.
Tax returns: within one month of each accounting period, first one due before end January 2009.
Overpayments: set against liability for the succeeding accounting period.

3. Update Revenue held meeting 7 May.
No debt offsets
Tax goes straight to treasury coffers
Not dictating how it is collected from customers
Exemptions driven from Fuel Mix Disclosure.
Non Business list distributed 9 June 2008.
List is non-specific (names only)
Regulations still in drafting, now expected July.
Detail lacking, e.g. restrospection of reliefs

4. Market Considerations
Tax Transparency for customers
Fairness for customers
Market consistency
Complaints
Billing presentation
Do we have time?
What should it look like?
Managing reliefs
E.g. accurate translation of renewables to reliefs
Accuracy and control
Customer Communications
Who?
When?
How?
Implementation