Read Regen’s comment in response to the Autumn Statement below
17 November 2022
Responding to the announcement of a levy on electricity generators in Chancellor Jeremy Hunt’s Autumn Statement today (17 November), Merlin Hyman, Chief Executive at Regen, commented:
“Regen supports the principle that electricity generators earning higher revenues should contribute to the costs of keeping down household bills. It is also, however, vital that we do not deter the billions of pounds in investment that we desperately need in renewable energy to cut carbon, lower bills and drive energy security.
We are, therefore, calling on the government to improve the design of the proposed Electricity Generator Levy to better balance these objectives in three ways:
Enabling investors in renewables to offset a proportion of investments in new projects against their increased tax bills, as is the case with the oil and gas levy.
Bringing forward the end date of the scheme from 2028 so the market can get back to normal more quickly.
Applying a proportionate measure to gas generators who have also earnt windfall profits – it is puzzling that low carbon generation is being taxed more whilst gas generation is not.
The decisions to exempt smaller generators and electricity storage do provide welcome clarity. However, there are areas of uncertainty remaining in how the levy will apply that it is vital the government clarifies quickly as final investment decisions will not be able to proceed without complete clarity.“