Kate Mulvany, Principal Consultant at Cornwall Insight said:
“Increasing the duration of the oil and gas windfall tax (Energy Profits Levy) could be seen as positive for decarbonisation if the resulting profits are used to deliver the UK’s net zero plan. Yet, without a solid transition strategy away from the UK’s oil and gas dependence and no assurance that tax revenues will directly support decarbonisation initiatives, the potential upheaval in investment could outweigh the benefits, posing risks to both UK energy security and employment in the energy sector.
“The stability of the UK’s regulatory environment has historically been a significant draw for investors looking to support renewable energy projects. Prolonging the windfall tax could weaken investor confidence, at a time when the UK is seeking record levels of investment to deliver the transition to net zero.
“Without a clear commitment to reinvest the windfall tax proceeds in the energy transition, the extension could affect more than the oil and gas sector. Extension to the Energy Profits Levy could further unsettle the GB energy generation investment landscape unless sufficient assurances are given that the tax on generators will not follow suit.”
– Ends
Notes to Editors
For more information, please contact: Verity Sinclair at v.sinclair@cornwall-insight.com
To link to our website, please use: https://www.cornwall-insight.com/
Copyright disclaimer for commercial use of the press releases:
The content of the press release, including but not limited to text, data, images, and graphics, is the sole property of Cornwall Insight and is protected by UK copyright law. Any redistribution or reproduction of part or all of the content in any form for commercial use is prohibited without the prior written consent of Cornwall Insight.
Media Use Exemption:
The information included in this press release may be used by members of the media for news reporting purposes only. Any other commercial use of this information is prohibited without the prior written consent of Cornwall Insight.
All non-media use is prohibited, including redistribution, reproduction, or modification of our content in any form for commercial purposes, and requires prior written consent. Please contact: enquiries@cornwall-insight.com
About the Cornwall Insight Group
Cornwall Insight is the pre-eminent provider of research, analysis, consulting and training to businesses and stakeholders engaged in the Australian, Great British, and Irish energy markets. To support our customers, we leverage a powerful combination of analytical capability, a detailed appreciation of regulation codes and policy frameworks, and a practical understanding of how markets function.
