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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 Gene [4D [K Generator Levy (EGL), a tax on windfall revenues for large renewables.
Action Requested
The government is increasing the EGL rate from 45% t [1D [K to 55% and extending its duration past 2028. The measure aims to reduce the [3D [K the impact of high gas prices on businesses and households by encouraging p [1D [K participation in wholesale Contracts for Difference and ensuring that a por [3D [K portion of exceptional revenues goes to support these entities.
Key Facts
- EGL was introduced in 2023 as a temporary tax on windfall [8D [K windfall revenues.
- Current EGL rate is 45%.
- Benchmark price for EGL i [1D [K is £82.61 per MWh, increased in line with CPI since 2024.
- New investment [10D [K investments are exempt from the EGL.
- Rate increase to 55% will take effe [4D [K effect on 1 July 2026.
- Extension of EGL past its scheduled conclusion in [2D [K in 2028.
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