Oil and gas price mechanism consultation
Read the full outcome
Detail of outcome
At Autumn Budget 2024, the government confirmed that the Energy Profits Levy (EPL) will remain until 31 March 2030 at the latest, or earlier if the EPL’s price floor— the Energy Security Investment Mechanism— is triggered. Once the EPL ends, the government is committed to ensuring that there is a new mechanism in place to respond to future oil and gas price shocks. This summary of responses document gives an overview of stakeholders’ views, and the government’s response, on the design of this mechanism which will form an integral part of the permanent regime, after the end of the EPL, to support the government to respond to unusually high prices.
Original consultation
Consultation description
At Autumn Budget 2024, the government confirmed that the Energy Profits Levy (EPL) will end in 2030 or earlier if the EPL’s price floor— the Energy Security Investment Mechanism— is triggered. Once the EPL ends, the government is committed to ensuring that there is a new permanent mechanism in place to respond to future oil and gas price shocks. This new mechanism will form an integral part of the permanent regime but will respond only when there are unusually high prices, helping to protect jobs now and in the future.
The consultation sets out the government’s policymaking objectives and design options for a new mechanism inviting stakeholder feedback. The government will work together with the oil and gas sector and others to ensure we take account of as wide a range of views as possible during this consultation.
The Department for Energy Security and Net Zero has launched a separate consultation, ‘Building the North Sea’s Energy Future’, which sets out the framework for the future of energy in the North Sea to support our mission to become a clean energy superpower.
Documents
Updates to this page
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Summary of responses added.
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First published.