Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing a windfall tax for energy companies to help support consumers with the cost of energy bills.

The Energy Profits Levy (EPL) was introduced in May 2022 to tax the extraordinary profits of oil and gas companies operating in the UK and on the UK Continental Shelf. The levy is currently set at a rate of 35%, bringing the overall headline tax rate on upstream oil and gas activities to 75%.

In July, the government announced it would deliver on the commitment it made, whilst in opposition, to ensure the oil and gas industry contribute more towards our clean energy transition. This will be achieved by extending the EPL to March 2030, increasing its rate by three percentage points to 38%, and by removing unjustifiably generous investment allowances. Money raised from these changes will support accelerating the transition to clean energy, increasing security and independence while providing sustainable jobs for the future and helping to protect electricity bills against future price shocks.

The EPL changes will be implemented from 1 November, with further details to be announced at Budget.