Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the energy security investment mechanism will apply to renewable electricity generators.

The energy Security Investment Mechanism will apply to the Energy profits Levy only. The EGL and EPL have fundamentally different designs as the EPL is applied to total profits and EGL is applied to a measure of exemptional returns.

If wholesale electricity prices consistently fall below the EGL’s benchmark price, for many generators, the levy would cease to apply. Should the crisis abate and prices fall below the benchmark price, the revenue forecast from the levy will not materialise and consideration would be given to the tax’s ongoing application.