diff --git a/app/services/bill-runs/two-part-tariff/generate-transaction.service.js b/app/services/bill-runs/two-part-tariff/generate-transaction.service.js
index 05a8002583..f07f1a3a6b 100644
--- a/app/services/bill-runs/two-part-tariff/generate-transaction.service.js
+++ b/app/services/bill-runs/two-part-tariff/generate-transaction.service.js
@@ -35,6 +35,10 @@ const { generateUUID } = require('../../../lib/general.lib.js')
 function go (billLicenceId, chargeReference, chargePeriod, newLicence, waterUndertaker) {
   const billableQuantity = _billableQuantity(chargeReference.chargeElements)
 
+  if (billableQuantity === 0) {
+    return null
+  }
+
   return _standardTransaction(
     billLicenceId,
     billableQuantity,
@@ -105,7 +109,7 @@ function _standardTransaction (
     billableQuantity,
     status: 'candidate',
     description: _description(chargeReference),
-    volume: chargeReference.volume,
+    volume: billableQuantity,
     section126Factor: Number(chargeReference.adjustments.s126) || 1,
     section127Agreement: !!chargeReference.adjustments.s127,
     section130Agreement: !!chargeReference.adjustments.s130,
diff --git a/app/services/bill-runs/two-part-tariff/process-billing-period.service.js b/app/services/bill-runs/two-part-tariff/process-billing-period.service.js
index 45b5d272e9..528b90f69e 100644
--- a/app/services/bill-runs/two-part-tariff/process-billing-period.service.js
+++ b/app/services/bill-runs/two-part-tariff/process-billing-period.service.js
@@ -127,6 +127,10 @@ async function _createTransactions (billLicenceId, billingPeriod, chargeVersion,
 
   const generatedTransactions = _generateTransactionData(billLicenceId, chargePeriod, chargeVersion)
 
+  if (generatedTransactions.length === 0) {
+    return []
+  }
+
   return SendTransactionsService.go(generatedTransactions, billRunExternalId, accountNumber, chargeVersion.licence)
 }
 
@@ -221,7 +225,9 @@ function _generateTransactionData (billLicenceId, chargePeriod, chargeVersion) {
         chargeVersion.licence.waterUndertaker
       )
 
-      transactions.push(transaction)
+      if (transaction) {
+        transactions.push(transaction)
+      }
     })
 
     return transactions
diff --git a/test/services/bill-runs/two-part-tariff/generate-transaction.service.test.js b/test/services/bill-runs/two-part-tariff/generate-transaction.service.test.js
index d3a6d94b3e..91e0c83718 100644
--- a/test/services/bill-runs/two-part-tariff/generate-transaction.service.test.js
+++ b/test/services/bill-runs/two-part-tariff/generate-transaction.service.test.js
@@ -30,63 +30,80 @@ describe('Generate Transaction service', () => {
   })
 
   describe('when called', () => {
-    it('returns a two-part tariff transaction ready to be persisted', () => {
-      const result = GenerateTransactionService.go(
-        billLicenceId, chargeReference, chargePeriod, newLicence, waterUndertaker
-      )
-
-      expect(result).to.equal({
-        billLicenceId,
-        authorisedDays: 0,
-        billableDays: 0,
-        newLicence,
-        waterUndertaker,
-        chargeReferenceId: '89450220-0f7f-4280-a946-1fdbe9b789c1',
-        startDate: chargePeriod.startDate,
-        endDate: chargePeriod.endDate,
-        source: 'non-tidal',
-        season: 'all year',
-        loss: 'low',
-        credit: false,
-        chargeType: 'standard',
-        authorisedQuantity: 20,
-        billableQuantity: 15,
-        status: 'candidate',
-        description: 'Water abstraction charge: Lower Queenstown - Pittisham',
-        volume: 15,
-        section126Factor: 1,
-        section127Agreement: false,
-        section130Agreement: false,
-        secondPartCharge: true,
-        scheme: 'sroc',
-        aggregateFactor: 0.75,
-        adjustmentFactor: 0.6,
-        chargeCategoryCode: '4.4.5',
-        chargeCategoryDescription: 'Low loss, non-tidal, restricted water, up to and including 5,000 ML/yr, Tier 1 model',
-        supportedSource: false,
-        supportedSourceName: null,
-        waterCompanyCharge: false,
-        winterOnly: false
-      },
-      {
-        // We skip the ID because it is a UUID generated by the service. We skip purposes because it is the result of
-        // calling `toJSON()` on the charge references child ChargeElementModel instances. Including it would just be us
-        // testing Objection
-        skip: ['id', 'purposes']
+    describe('with a charge reference that has volume to be billed', () => {
+      it('returns a two-part tariff transaction ready to be persisted', () => {
+        const result = GenerateTransactionService.go(
+          billLicenceId, chargeReference, chargePeriod, newLicence, waterUndertaker
+        )
+
+        expect(result).to.equal({
+          billLicenceId,
+          authorisedDays: 0,
+          billableDays: 0,
+          newLicence,
+          waterUndertaker,
+          chargeReferenceId: '89450220-0f7f-4280-a946-1fdbe9b789c1',
+          startDate: chargePeriod.startDate,
+          endDate: chargePeriod.endDate,
+          source: 'non-tidal',
+          season: 'all year',
+          loss: 'low',
+          credit: false,
+          chargeType: 'standard',
+          authorisedQuantity: 20,
+          billableQuantity: 15,
+          status: 'candidate',
+          description: 'Water abstraction charge: Lower Queenstown - Pittisham',
+          volume: 15,
+          section126Factor: 1,
+          section127Agreement: false,
+          section130Agreement: false,
+          secondPartCharge: true,
+          scheme: 'sroc',
+          aggregateFactor: 0.75,
+          adjustmentFactor: 0.6,
+          chargeCategoryCode: '4.4.5',
+          chargeCategoryDescription: 'Low loss, non-tidal, restricted water, up to and including 5,000 ML/yr, Tier 1 model',
+          supportedSource: false,
+          supportedSourceName: null,
+          waterCompanyCharge: false,
+          winterOnly: false
+        },
+        {
+          // We skip the ID because it is a UUID generated by the service. We skip purposes because it is the result of
+          // calling `toJSON()` on the charge references child ChargeElementModel instances. Including it would just be
+          // us testing Objection
+          skip: ['id', 'purposes']
+        })
+      })
+
+      describe('and the charge reference has a two-part tariff agreement (section 127)', () => {
+        beforeEach(() => {
+          chargeReference.adjustments.s127 = true
+        })
+
+        it('returns the two-part tariff prefixed description', () => {
+          const result = GenerateTransactionService.go(
+            billLicenceId, chargeReference, chargePeriod, newLicence, waterUndertaker
+          )
+
+          expect(result.description).to.equal('Two-part tariff basic water abstraction charge: Lower Queenstown - Pittisham')
+        })
       })
     })
 
-    describe('and the charge reference has a two-part tariff agreement (section 127)', () => {
+    describe('with a charge reference that has no volume to be billed', () => {
       beforeEach(() => {
-        chargeReference.adjustments.s127 = true
+        chargeReference.chargeElements[0].reviewChargeElements[0].amendedAllocated = 0
+        chargeReference.chargeElements[1].reviewChargeElements[0].amendedAllocated = 0
       })
 
-      it('returns the two-part tariff prefixed description', () => {
+      it('returns null', () => {
         const result = GenerateTransactionService.go(
           billLicenceId, chargeReference, chargePeriod, newLicence, waterUndertaker
         )
 
-        expect(result.description).to.equal('Two-part tariff basic water abstraction charge: Lower Queenstown - Pittisham')
+        expect(result).to.be.null()
       })
     })
   })
@@ -137,6 +154,6 @@ function _chargeReference () {
       amendedChargeAdjustment: 0.6
     }],
     source: 'non-tidal',
-    volume: 15
+    volume: 20
   }
 }
diff --git a/test/services/bill-runs/two-part-tariff/process-billing-period.service.test.js b/test/services/bill-runs/two-part-tariff/process-billing-period.service.test.js
index 2dfbd6781a..767ba01219 100644
--- a/test/services/bill-runs/two-part-tariff/process-billing-period.service.test.js
+++ b/test/services/bill-runs/two-part-tariff/process-billing-period.service.test.js
@@ -156,15 +156,12 @@ describe('Two-part Tariff Process Billing Period service', () => {
 
       describe('but they are not billable', () => {
         beforeEach(() => {
-          // Create a licence that has a revoked date before the billing period and then link it to a charge version
-          // that is also linked to our billing account. The engine will determine that the charge period for the charge
-          // version is invalid so won't attempt to generate a transaction. If we did try, the Charging Module would
-          // only reject it.
-          const unbillableLicence = _licence()
-
-          unbillableLicence.revokedDate = new Date('2019-01-01')
+          // This time we update the charge version so that nothing is allocated in the charge references. This means
+          // the service will not generate any transactions and therefore no bills leading to bills being empty
+          const unbillableChargeVersion = _chargeVersion(billingAccount.id, licence)
 
-          const unbillableChargeVersion = _chargeVersion(billingAccount.id, unbillableLicence)
+          unbillableChargeVersion.chargeReferences[0].chargeElements[0].reviewChargeElements[0].amendedAllocated = 0
+          unbillableChargeVersion.chargeReferences[0].chargeElements[1].reviewChargeElements[0].amendedAllocated = 0
 
           billingAccount.chargeVersions = [unbillableChargeVersion]
         })
@@ -289,7 +286,7 @@ function _chargeVersion (billingAccountId, licence) {
           amendedChargeAdjustment: 0.6
         }],
         source: 'non-tidal',
-        volume: 15
+        volume: 20
       }
     ]
   }