Source · Select Committees · Environmental Audit Committee
Recommendation 46
46
Rejected
The Government is not providing renewable energy generators with the same level of generous tax...
Recommendation
The Government is not providing renewable energy generators with the same level of generous tax reliefs for new investment to enhance the UK’s energy security. We recommend that the Treasury examine how a similar low-carbon Investment Allowance could be introduced for electricity producers paying the new temporary tax of 45%. (Paragraph 249) 90 Accelerating the transition from fossil fuels and securing energy supplies
Government Response Summary
The government rejected the recommendation, stating that it supports renewables deployment through schemes like Contracts for Difference (CfD) and that the Electricity Generator Levy (EGL) is charged on a different base and at a lower combined rate than the Energy Profits Levy (EPL).
Government Response
Rejected
HM Government
Rejected
Reject. Government does not accept this recomsmendation. Government is supporting renewables deployment through a range of policy levers, including the hugely successful Contracts for Difference (CfD) scheme, through which generators have received almost £6 billion net in price support to date. Compared to the Energy Profits Levy (EPL) applied to the oil and gas sector, the Electricity Generator Levy (EGL) is charged on a different base, and at a lower combined rate. The 35% rate of the EPL is applied to total profits, rather than a measure of extraordinary returns to which EGL is applied.