Asked by: Brandon Lewis (Conservative - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of changes to taxation for renewable energy companies on investment in the offshore renewable energy sector.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
From January 2023, a temporary new 45 per cent tax will be levied on extraordinary returns being realised from non-carbon electricity generators. It will raise around £14.2 billion over the scorecard, helping to fund support for households and businesses with their energy bills as well as vital public services.
The levy will only be applied to extraordinary returns defined as returns from selling electricity for a period at an average price of more than £75/MWh. This is approximately 1.5 times the average price of electricity over the last decade. The Government considers this to be a proportionate approach to recovering a share of the extraordinary profits certain electricity generators are receiving.