EGL63100 | Surrender of shortfall amounts: introduction

The attribution provisions described in EGL61000+ and EGL62000+ may result in one party having receipts below the benchmark price, or an excess of costs over their amounts of receipts. For example: a participator in a joint venture has a loss on a derivative contract associated with its interest in the JV that exceeds the amount of receipts attributed to it, and has no receipts from other generation activity against which it could set. This can also arise in the case of a group company with one or more significant minority shareholders. Such a deficit is referred to as a “shortfall amount” in the legislation and, within certain parameters, able to be surrendered between the relevant parties.

• F(2)A23/S298 provides a mechanism for surrendering these amounts to the relevant party, EGL63200.

• F(2)A23/S299 sets out the rules for calculating the shortfall amounts that may be surrendered, EGL63300, and

• F(2)A23/S305 contains the administrative rules for claims to these amounts, EGL63400.