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ARTICLE · 22 NOVEMBER 2022

How Will The Electricity Generator Levy Work?

Gowling WLG
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The introduction of a new UK tax on renewable and nuclear electricity generators was confirmed in the recent Autumn Statement. Given the cost of funding the Energy Price Guarantee and the Energy Support Scheme...

United KingdomEnergy and Natural Resources
Gus Wood
Gus Wood
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The introduction of a new UK tax on renewable and nuclear electricity generators was confirmed in the recent Autumn Statement. Given the cost of funding the Energy Price Guarantee and the Energy Support Scheme, the introduction of such a tax had seemingly become inevitable.

As commentators have been quick to identify, the introduction of this new electricity generator levy risks undermining investor confidence, and curbing investment in new sustainable electricity generation, at a time when the UK needs to be investing more in these technologies. For their part, the government maintain that the levy will only apply to extraordinary profits and will not harm investment – so have they struck the right balance?

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