The above brief provides clarification on the domestic reverse charge for wholesale trading in gas and electricity. The reverse charge for domestic gas and electricity took effect from 1 July 2014. This brief supplements and clarifies the guidance published in Brief 23/14.

The brief clarifies that supply of electricity is excluded from the domestic reverse charge as a non-wholesale supply if:

• Someone sells their generated power under a PPA or similar contract, and
• Someone is a generator that is exempted from holding a generating licence, and
• Someone has a generation capacity by asset is 100MW or less, and
• The generated volume is not allocated to their production account with Elexon (or the generator account with the Single Electricity Market Operator (SEMO) in Northern Ireland)

Paragraph 4.3 of Brief 23/14 listed certain specific supplies where the domestic reverse charge would not apply. This brief clarifies that where these supplies are incidental to a domestic reverse charge supply then they will also be subject to the domestic reverse charge.

More detailed information is available in the Brief.