To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing an investment allowance to the Electricity Generator Levy comparable with that under The Energy (Oil and Gas) Profits Levy.

The Electricity Generator Levy (EGL) and the Electricity Profits Levy (EPL) are designed very differently. Unlike the EPL, the EGL is not a tax on a comprehensive measure of profit that is calculated after recognition of total revenues and costs. Instead, it is payable on the portion of revenues that exceed the long-run average for electricity prices. Rather than providing an investment allowance the government has taken into account the potential impact on investment in the design of the levy with the benchmark price, £75/MWh, being set at 1.5 times the pre-crisis level and indexed to CPI.