In today’s Autumn Statement the chancellor discussed a raft of measures including a 45% ‘windfall’ tax on the profits of electricity generators, you may be wondering whether this will affect you. Handily there has been a technical guidance note published alongside the announcement that provides us some clarity. The guidance note is available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1118358/Electricity_generator_levy__technical_note__final.pdf
The guidance shows that it’s large generators that will be affected and it’s our opinion that the overwhelming majority of generation systems affiliated to agricultural business’ will be well outside the scope of the tax that has been announced. This is welcome news for many, including smaller scale ROC and non-FiT or CfD generators who were originally likely to be caught with the original wording within the Energy Prices Bill, ratified in October.
In order for the tax to apply you will need to be a renewable, nuclear or biomass generator and, as individuals or a group, meet the following criteria:
- Produce in excess of 100GWh per annum (this is equivalent to a >11MWe AD plant operating full time per year or the typical output from a 100 MW PV array)
- Have extraordinary profits in excess of £10m
Additionally the following technology types are exempt:
- Gas fired generators (inc CHP)
- Pumped hydro storage
- Battery systems
- Coal
- Oil
If you think you may be within scope then HMRC will be in contact with you or you may email [email protected].