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Electricity Generator Levy
21 April 2026
Type
Written Ministerial Statement
Department
Treasury
At a Glance
Issue Summary
The statement addresses changes to the Electricity Generator Levy (EGL), a tax on windfall revenues for large renewables.
Action Requested
The government is increasing the EGL rate from 45% to 55% and extending its duration past 2028. The measure aims to reduce the impact of high gas prices on businesses and households by encouraging participation in wholesale Contracts for Difference and ensuring that a portion of exceptional revenues goes to support these entities.
Key Facts
- EGL was introduced in 2023 as a temporary tax on windfall revenues.
- Current EGL rate is 45%.
- Benchmark price for EGL is £82.61 per MWh, increased in line with CPI since 2024.
- New investments are exempt from the EGL.
- Rate increase to 55% will take effect on 1 July 2026.
- Extension of EGL past its scheduled conclusion in 2028.
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