The EGL is a temporary 55% charge on exceptional receipts from wholesale electricity generation in the UK. The EGL applies from 1 January 2023 to 31 March 2028, but the government announced that it will legislate to extend the application of the EGL beyond March 2028. For the background to the EGL, see Electricity Generator Levy—overview. In terms of the legislation, which is contained in Part 5 of the Finance (No 2) Act 2023 (F(No 2)A 2023), the charge applies to the exceptional generation receipts of a qualifying generating undertaking for a qualifying period. Since these concepts are interrelated, it may be necessary to move back and forth between them in order to establish whether the EGL applies in a given scenario. This Practice Note discusses the meaning of ‘qualifying generating undertaking’. For guidance on other aspects of the EGL, see the following Practice Notes: • Electricity Generator Levy—what is a qualifying period? • Electricity Generator Levy—what are exceptional generation receipts? • Electricity Generator Levy—who is liable? • Electricity Generator Levy—relief for shortfall

The EGL is a temporary 55% charge on exceptional receipts from wholesale electricity generation in the UK. The EGL applies from 1 January 2023 to 31 March 2028, but the government announced that it will legislate to extend the application of the EGL beyond March 2028. For the background to the EGL, see Electricity Generator Levy—overview. In terms of the legislation, which is contained in Part 5 of the Finance (No 2) Act 2023 (F(No 2)A 2023), the charge applies to the exceptional generation receipts of a qualifying generating undertaking for a qualifying period. Since these concepts are interrelated, it may be necessary to move back and forth between them in order to establish whether the EGL applies in a given scenario. This Practice Note discusses the meaning of ‘qualifying period’. For guidance on other aspects of the EGL, see the following Practice Notes:

The EGL is a temporary 55% charge on exceptional receipts from wholesale electricity generation in the UK. The EGL applies from 1 January 2023 to 31 March 2028, but the government announced that it will legislate to extend the application of the EGL beyond March 2028. For the background to the EGL, see Electricity Generator Levy—overview. In terms of the legislation, which is contained in Part 5 of the Finance (No 2) Act 2023 (F(No 2)A 2023), the charge applies to the exceptional generation receipts of a qualifying generating undertaking for a qualifying period. Since these concepts are interrelated, it may be necessary to move back and forth between them in order to establish whether the EGL applies in a given scenario. This

Note that additional commentary on the issues discussed in this Practice Note in the context of the regulation, consenting and incentivisation of the net zero energy transition is available in the following textbook that we have published: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. What is the background to Electricity Market Reform (EMR)? In 2010, the UK government identified that up to £110bn of investment would be required by 2020 in order to meet the UK’s energy needs. This was against a backdrop of increasing demand coupled with the closure of electricity generation plants through obsolescence or compliance with EU-derived emission reduction requirements. Renewable generation, which has been increasingly deployed in recent years in light of the UK’s net zero ambitions, faces the challenge of being ‘intermittent’ since it is often dependent on weather conditions and therefore not capable of producing 'baseload' generation in the same way as conventional plant. Moreover, UK electricity networks were not designed with the widespread deployment of renewables in mind, and needed to be optimised. The

ARCHIVED: This Practice Note has been archived and is not maintained. How are contracts for difference (CfD) and the renewables obligation (RO) connected? The renewables obligation (RO) is intended to support investment in renewable generation projects. It does this by placing customer-facing electricity suppliers—who (directly or indirectly) purchase their electricity from generators—under an obligation to source an increasing proportion of their wholesale electricity from renewable sources. The required proportion is set by the Secretary of State (SoS) for Business, Energy and Industrial Strategy (BEIS). The supplier evidences its purchases of renewable electricity by the submission of ‘renewable obligation certificates’ (ROCs) to the Office of Gas and Electricity Markets (Ofgem). Electricity suppliers are required to evidence their purchases of renewable energy by submitting ROCs to Ofgem. New ROCs are only issued to accredited renewable generators in order to incentivise suppliers to buy their renewable energy (and accompanying, separately priced ROCs) from renewable projects, thus providing those projects with an element of financial

Note that additional commentary on the issues discussed in this Practice Note in the context of the regulation, consenting and incentivisation of the net zero energy transition is available in the following textbook that we have published: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. In order for a new connection to be made, whether to a generator, a home, an office or an entire new development, new network infrastructure will need to be built. As network operators recover the capital cost of installation over an extended period of time (by charging suppliers for use of the network), a key concern for the operator will be the security of the network asset—ie the right for it to be and remain installed in the land. This usually involves a mixture of statutory powers granted to licensed electricity distribution and transmission network operators as well as private rights in the form of long leases and easements. What are street-opening powers? Section 10 and Schedule 4 to the Electricity Act 1989 (EA 1989) grant

[means [the process of] converting or replacing infrastructure, machines, appliances, devices and other objects which are powered by a Finite Power Source so that electricity is used a permanent replacement power source. OR means the converting of a [town OR village OR region OR rural/remote population] to a[n] [on-grid OR mini-grid OR off-grid] electrical power source. OR in Rail Transport, means the provision of an electrical power supply to previously non-electrified railway lines using overhead power lines [or an electrified third rail system].]

CASE HUB ARCHIVED—this archived case hub reflects the position at the date of the judgment of 11/02/2019; it is no longer maintained. See further, timeline and commentary Case facts Outline An appeal by Electro Rent Corporation against a decision by the Competition and Markets Authority to impose a fine for breach of a hold separate obligation (in this case contained in an interim order). Parties Electro Rent Corporation (Electro Rent).Competition and Markets Authority (CMA). Background On 31 January 2017, Electro Rent acquired the entire issued share capital of Microlease Inc. Both parties supply test and measurement equipment across sectors such as telecommunications, aerospace and defence and IT. The parties did not notify the merger to the CMA. The UK’s merger control regime is voluntary and therefore the parties were not obliged to notify the CMA. In doing so, the parties ran the risk of the CMA initiating its own investigation. On 1 February 2017, the CMA launched an own-initiative investigation into the merger. On the same day, the CMA imposed an initial enforcement

CASE HUB (NOTE—appeal lodged before the CAT in relation to the CMA’s decision to fine Electro Rent for failure to comply with an interim order issued by the CMA) ARCHIVED–this archived case hub reflects the position at the date of the penalty notice of 12 June 2018; it is no longer maintained. See further, timeline and commentary. Case facts Outline UK merger investigation into the acquisition by Electro Rent Corporation of Test Equipment Asset Management and Microlease Inc. The transaction involves horizontal overlaps in markets for the rental of testing and measuring equipment. Latest developments On 15 February 2019, the Competition and Markets Authority (CMA) published a penalty notice to Electro Rent Corporation (Electro Rent), issued on 12 February 2019, for a second breach of an interim order imposed by the CMA in the merger investigation. The breach of the interim order concerned the appointment without the CMA’s consent of Electro Rent’s Chief Financial Officer to be a director of several companies making up the target business. The CMA imposed a fine of £200,000

NOTE—appeals lodged before the General Court in Cases T- 341/18, T- 342/18, T- 344/18 and T- 363/18 ARCHIVED–this archived case hub reflects the position at the date of the decision of 21 March 2018 ; it is no longer maintained. See further, timeline, commentary and related cases. Case facts ARCHIVE 21/03/2018 Outline European Commission Article 101 TFEU investigation into an alleged cartel in the market for the electrolytic capacitors (used to store electrical energy) (AT.40136). Latest developments On 21 March 2018, the Commission issued its infringement decision against nine producers of aluminium and tantalum electrolytic capacitors, imposing fines totalling €253.935m, for the operation of a cartel to exchange sensitive information with the aim to coordinate future behaviour and avoid price competition. Parties Manufacturers of electrolytic capacitors, all are based in Japan, namely: • Sanyo Electric Co., Ltd (Sanyo), owned by Panasonic Corporation • Elna • Hitachi Chemical • Holy Stone • Matsuo • NEC Tokin • Nichicon • Nippon Chemi-Con• Rubycon A tenth (unknown) company received the statement of objections from the Commission, but ultimately has not been penalised. Background The investigation started in March 2014 with

A very small negatively charged particle which orbits the nucleus of an atom, and can also exist in a free state for short periods of time.

The Electronic Communications Code, inserted into the Communications Act 2003, Schedule 3A, by the Digital Economy act 2017. A code right is granted in relation to an operator and any land, for the statutory purposes of providing an operator's network/infrastructure system, and for activities set out in the code.