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United Kingdom

UK Electricity Generator Levy: practical guidance on scope, structures, lead member liability, generation receipts, exceptional receipts, shortfall surrenders, TAAR, reporting and transactional risk for lawyers

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Practice notes
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On 21 April 2026, the government confirmed the EGL rate will rise to 55% and that the measure will be prolonged beyond its planned conclusion on 31 March 2028. The EGL is currently a temporary 45% levy on exceptional revenues from UK wholesale electricity generation, in force from 1 January 2023 to 31 March 2028. For an introduction, see Electricity Generator Levy—overview.

Under Part 5 of the Finance (No 2) Act 2023 (F(No 2)A 2023), the charge is imposed on the exceptional generation receipts of a qualifying generating undertaking for a qualifying period. As these definitions overlap, you may need to cross‑refer between them to determine whether the EGL bites in a particular case. This Practice Note outlines practical points that taxpayers and their advisers may wish to weigh when considering the EGL. For guidance on other elements, see these Practice Notes:

  • Electricity Generator Levy—what is a qualifying generating undertaking?
  • Electricity Generator Levy—what is a qualifying period?
  • Electricity Generator Levy—what are exceptional generation receipts?...
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Web page updated on 27/05/2026

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