Electricity Generation: Taxation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the effect of the increased Electricity Generator Levy on the UK's energy security.
Answered by Dan Tomlinson
Investing in clean energy at speed and scale can help tackle the climate crisis, create good jobs, protect billpayers and ensure energy security. The Electricity Generator Levy (EGL) has strong protections for new investments and renewable projects that operate according to the Contracts for Difference Scheme, both of which are exempt from the EGL.
The EGL was carefully designed to avoid disincentivising generation. This design means the EGL has had no adverse effect on the UK’s energy security since its introduction in 2023; the increase in the rate is not expected to affect energy security either.
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