In Regen's first insight paper of 2023, director Johnny Gowdy analyses the emerging details of the government's new Electricity Generator Levy (EGL).
In Regen's first insight paper of 2023, director Johnny Gowdy analyses the emerging details of the government's new Electricity Generator Levy (EGL).
As more details of the new EGL are released it is becoming apparent that the levy, which will run to 2028, is designed less as a temporary windfall tax and more like a super-tax to provide revenue for the Treasury. As such, it will deter investment in the renewable and low carbon technologies needed to meet the UK's net zero targets.
To act as a targeted tax on windfall profits, the EGL should not apply to projects commissioned after 1 January 2023 and the timeframe should be reduced to a maximum duration of 18 months.
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