Electricity Generator Levy: rate increase from 1 July 2026
Published 6 May 2026
© Crown copyright 2026
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/electricity-generator-levy-technical-note--2/electricity-generator-levy-rate-increase-from-1-july-2026
The government has announced an increase in the rate of the Electricity Generator Levy (EGL) on 21 April 2026. The written Ministerial statement can be found here.
Background
The price for gas sets the price for electricity in the UK and in times of high gas prices this results in non-gas generators accruing windfalls because of high prices without a similar increase in input costs. The EGL is a charge on the receipts of certain generators that benefit, typically wind and solar generators.
What is changing
The rate of EGL will increase from 45% to 55% from 1 July 2026. The increase will apply to receipts attributable to electricity generated from that date.
Implementation
The EGL is charged on receipts attributable to a ‘qualifying period’ that corresponds to a corporation tax accounting period. Where a qualifying period straddles the commencement date of 1 July 2026 the receipts for the period must be apportioned on a time basis and the amount attributable to the later part of the period charged at 55%.
Where a large or very large company is required to make quarterly instalment payments then the increase in EGL liability resulting from that change does not need to be reflected in payments made before the date that the legislation receives Royal Assent. The EGL liability affected by this transitional rule must be included in the first payment that is due after that date. Interest will be applied accordingly.
Contacts
Contact egl@hmrc.gov.uk if you have an enquiry about this change.