Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 November to Question 94670 on Electricity Generation: Taxation, what the sufficient level of return to incentivise investment required to transition to net zero.

The Electricity Generator Levy is a temporary levy which has been designed to allow generators to retain a proportion of the extraordinary return they are making in excess of a benchmark price which has been set at 1.5 times the average price of electricity over the last decade

In the Government’s view this balances the need to raise revenue to fund public services and energy support for households and businesses, while incentivising the investment needed to fuel our transition to net zero.