EGL11000 | The charge to EGL: overview of the charge to EGL

The levy is applied to receipts of a ‘generating undertaking’ which will include not just stand-alone companies, but all the members of a group that contains one or more companies that operate a relevant generating station.

The charge is based on the amount of receipts from sales of electricity on a wholesale basis that exceed a “benchmark price” per Megawatt hour (MWh). Certain costs may be deducted but the EGL is not a tax on profits. EGL is only chargeable on receipts exceed an allowance of £10 million in a qualifying period, based on a corporation tax accounting period.

Smaller generators who supply no more than 50,000 MWh per annum are not chargeable, the operation of this “levy threshold” is explained at EGL12000.