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.
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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 拢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 拢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