Capital Allowances Act 2001 section 175A

Meaning of "energy services agreement"

Section 175A defines the terms "energy services agreement" and "energy services provider" for the purposes of the capital allowances rules relating to energy services.

• An energy services agreement is a contract between an energy services provider and a client aimed at saving energy or improving energy efficiency
• The agreement must cover the design, procurement, installation, operation and maintenance of plant or machinery or systems incorporating plant or machinery
• Payments under the agreement must be linked, in whole or in part, to the actual energy savings or efficiency improvements achieved by the plant or machinery
• An energy services provider is a person whose qualifying activity consists wholly or mainly of providing energy management services