Electricity Generator Levy: introduction: policy paper

This measure introduces a temporary 45% charge on exceptional receipts realised from the sale of wholesale electricity by nuclear, renewable, biomass and energy from waste sources. Exceptional receipts are those in excess of a benchmark price of £75 per megawatt hour (adjusted in line with Consumer price index (CPI)). The levy will be limited to companies or corporate groups whose relevant electricity output exceeds 50 gigawatt hours across a year and apply only to exceptional receipts exceeding £10m per annum.

The levy will be in effect from 1 January 2023 and 31 March 2028 and will apply to exceptional receipts from electricity generation during accounting periods between those dates.