Electricity Generator Levy: policy paper

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 £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."