Finance Act 2011

The primary legislation for the introduction of a Carbon Price Floor (CPF).

Supplies of coal, gas and liquefied petroleum gas (LPG) used in most forms of electricity generation become liable to newly created Carbon Price Support (CPS) rates of climate change levy (CCL), which are different from the main CCL rates levied on consumers' use of these commodities (and electricity). The amount of fuel duty reclaimable on oil used in electricity generation is adjusted to establish new CPS rates of fuel duty.