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Use of commodities by utilities and producers

An electricity or gas utility or producer of other taxable commodities may consume some of those commodities for routine business purposes (eg lighting and heating of a general administration building). In order to achieve 'fairness' compared to similar activities in other sectors, such supplies are deemed to be self-supplies on which utilities and producers must account for CCL in addition to their supplies to third parties.

If an electricity utility does not supply a quantity of electricity but causes it to be consumed in the UK, the utility is deemed to make a supply to itself of that electricity¹.

Where a gas utility holds gas in a gaseous state, and does not supply a quantity of that gas but causes it to be burned in the UK, the utility is deemed to make a supply to itself of that gas².

A person is deemed to make a supply to himself of a quantity of a commodity³ where:

1. Ìý

   (1)ÌýÌýÌýÌý he has produced a taxable