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Community Windpower to sue the Government over discriminatory Electricity Generator Levy


Today, Community Windpower is announcing that it has instructed top London law firm Mishcon de Reya to ensure that the Government’s new Electricity Generator Levy (EGL), due to come into effect on 1st January, is urgently amended to be fair and to better achieve the Government’s own objectives.

The EGL is being called ‘a smash and grab raid’ on earnings made by the renewable energy sector, while treating more favourably the huge profits made by oil and gas a result of soaring energy costs.

The levy is a 45% charge on exceptional receipts generated from the production of wholesale electricity, and when combined with the corporation tax rate, will take Community Windpower’s marginal tax rate to 70%. ‘Exceptional receipts’ are defined as wholesale electricity sold at an average price in excess of £75 per MWh over an accounting period. Community Windpower has serious concerns about how this figure has been arrived at; it is below the cost of production, and does not take into account record inflation and a commensurate 3-fold increase in financing costs.

The effect of the way the EGL has been designed will be to make investment in the sector – a sector that is vital for the UK’s green transition – completely unviable. In order to preserve the progress made by UK renewable businesses in recent years, Community Windpower is calling on the Government to take its environmental responsibilities seriously. Taxing green renewable generators while letting oil and gas generators a free ride is completely at odds with the Government’s own legally-binding environmental ambitions.

Community Windpower has asked the Government to respond with urgency on our detailed points of concern. Legal action will reluctantly be taken early in the New Year if the EGL is not substantially redesigned.

Follow us on our social media channels to keep up to date with the progress of the case: @CWL_BeGreen

Read our official Press Release here:

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