Here are the climate-related sections of speeches by MPs during the Commons debate Electricity Generator Levy.
Full text: https://hansard.parliament.uk/Commons/2026-04-21/debates/26042165000011/ElectricityGeneratorLevy
Dan Tomlinson (Labour)
The electricity generator levy was introduced in 2023 and is a temporary tax on windfall revenues for large renewables. The EGL is currently calculated as 45% of a generator’s annual revenue above a benchmark price, which is currently £82.61 per MWh and has been increased in line with the consumer prices index since 2024. New investments in renewable energy are not subject to the EGL.
The Government have reviewed the design of the EGL in light of the conflict in the middle east and are announcing today that the 45% EGL rate will increase to 55% and will be extended past its scheduled conclusion in 2028. This will support the Government’s objective of reducing the impact of gas prices on businesses and households. Firstly, it will encourage participation at a competitive price in wholesale contracts for difference, a new proposal announced today by the Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Ed Miliband), which seeks to weaken the link between high gas prices and high electricity generation prices. Secondly, it will ensure a proportion of any exceptional revenues resulting from the pass-through of high gas prices to electricity generators’ revenues is available to Government to support businesses and households with the impacts of the conflict in the middle east on the cost of living.
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