EGL23200 - Generation receipts: identifying generation receipts

Generation receipts are the amounts that a generating undertaking realises from its attributable generation from wholesale purchases of power output to the grid.

The key principle in calculating generation receipts that are taken into account when computing an undertaking’s liability to EGL is that receipts should generally be matched with attributed generation. Receipts from the sale of relevant generation which is attributed to an undertaking are taken into account for the purposes of the EGL. Conversely, if generation output is not attributed to the undertaking under F(2)A23/S282, then receipts in respect of the sale of any such electricity generation are not taken into account.

It should be noted, however, that an undertaking should include receipts from the generation that was, at any time, expected to be generated by the power station, even if in the event the electricity was not generated, see EGL23100.

Where a generating undertaking includes both generation and retail supply businesses, it will be necessary to identify the amount attributable to generation business and exclude any element of its overall receipts that is attributable to the supply business, including an arm’s length price for wholesale power passed onto the supply business. Generation receipts can arise in respect of a number of different routes by which the undertaking’s attributable generation is delivered to the market, including power purchase agreements, long forward contracts, trading in the day ahead or intra-day markets, or through a balancing market.