Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he made an estimate of the predicted tax revenue from extending the Energy Generator levy to cover combined-cycle gas turbine generators before 17 November 2022.

From January 2023, a 45 per cent tax will be levied on extraordinary returns being realised from non-gas electricity generators in the UK. The measure will raise around £14.2 billion over the scorecard and help fund support for households and businesses with their energy bills as well as vital public services.

While gas generators are experiencing increased revenue from the substantial increase in the market prices of electricity, they are also impacted by the substantial increase in the price of gas. The inclusion of gas generators could have unintended impacts on electricity pricing with implications for the market as a whole or on certain business models. The approach we have taken is consistent with gas generation being excluded from similar tax and regulatory interventions overseas.