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Electricity Generation: Taxation

Asked by James McMurdockIndependentTreasuryTabled Answered 28 April 2026UIN 129580

The question

To ask the Chancellor of the Exchequer, with reference to his Department’s press release entitled Decisive action to break influence of gas on electricity prices, published on 21 April 2026, what assessment she has made of the potential impact of increasing the Electricity Generator Levy on investment in renewable energy generation.

Answered by Dan Tomlinson

The Government wants sustainable investment in renewable energy generation and therefore the Electricity Generator Levy (EGL) has strong protections for new investments, which are exempt from the levy.

The government is accelerating the transition to cleaner energy through the Contracts for Difference (CfD) scheme. Renewable energy generation using the CfD scheme is exempt from the EGL.

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