Electricity Generator Levy

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Forthcoming change: On 21 April 2026, the government announced that, with effect from 1 July 2026, the rate of the EGL will raise from 45% to 55%. In addition, the EGL will be extended past its scheduled end of 31 March 2028. As part of the King’s Speech, delivered on 13 May 2026, it was confirmed that the increase in the rate of the levy will be legislated for in the Electricity Generator Levy Bill. The extension of the EGL will, however, be legislated for at a later date. HMRC has also published a technical note on the increase in the rate of the EGL.

The Electricity Generator Levy (EGL) is a temporary 45% charge on exceptional receipts from wholesale electricity generation in the UK. The EGL applies from 1 January 2023 to 31 March 2028.

This subtopic covers the scope of the EGL, who is liable, reliefs and elections, administration, anti-avoidance and practical considerations that may apply in relation to the EGL.

Background to the EGL

In the Autumn Statement 2022, Rishi Sunak’s Conservative government announced the introduction of the EGL to ‘help fund government

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