In his Autumn Statement, the UK Chancellor announced a new
Electricity Generator Levy (the "Levy"),
which replaces the previously planned Cost Plus Revenue Limit. The
Government felt the new Levy is a more proportionate measure that
is not only administrable through the corporate tax system which
generators are familiar with but will leave generators with a
greater proportion of their returns to invest in growing the
UK's renewable energy capacity.
In this briefing, we summarise the main announcements in the
Autumn Statement regarding the new Levy and draw out some points
from the Government's accompanying technical note and fact sheet.
Stephen Hill, International Head of Clean
Energy at Eversheds Sutherland comments: "In the
increasingly fast paced and contradictory electricity regulatory
regime that seems to constitute the norm now, it is pleasing
finally to have some detail on which investment decisions can be
made. Whether this is an appropriate mechanism, and
