Electricity Generator Levy
This measure introduces a new tax on exceptional electricity generation receipts of qualifying generating undertakings from 1 January 2023 to 31 March 2028.
Documents
Details
This measure applies to exceptional generation receipts from low-carbon electricity generation.
Renewable and nuclear energy electricity generators are making extraordinary returns. This is because they can sell electricity at a price determined by the cost of gas generation, without being exposed to rising gas input prices.
The levy provides an allowance for the first £10m per annum of excess generation receipts that will not be subject to the levy, and a de minimis meaning the levy will only apply to companies or groups of companies generating more than 50 gigawatt hours per annum.
Only generation receipts over a benchmark price will be subject to the levy, which will apply to the largest generators.
The levy provides:
- an allowance for the first £10m per annum of excess generation receipts that will not be subject to the levy
- a de minimis meaning the levy will only apply to companies or groups of companies generating more than 50 gigawatt hours per annum