Energy Profits Levy and the Energy Security Investment Mechanism: discussion note
Read the full outcome
Detail of outcome
The government has published a summary of responses to the discussion note on the detail and application of the Energy Security Investment Mechanism (ESIM).
HMRC received 14 written responses from oil and gas companies operating in the UK and on the UK Continental Shelf, trade associations, accountancy firms and financial institutions.
The government has considered these responses and has today published a technical note setting out the practical application and technical detail of the ESIM.
Related publications and announcements
You can read the technical note about the Energy Profits Levy Energy Security Investment Mechanism, published on the same day as this outcome.
Original consultation
Consultation description
The government has announced the introduction of the Energy Security Investment Mechanism (ESIM). This confirmed that the Energy Profits Levy (EPL) will permanently be disapplied if average oil and gas prices are both at or below the ESIM price threshold for two consecutive quarters. The ESIM price threshold was calculated using a 20-year historic average to the end of 2022 and is set at $71.40 per barrel of oil and £0.54 per therm of gas. The government will introduce legislation to remove the EPL if the ESIM is triggered.
Whilst the key parameters of the ESIM have been set, the government would like to engage with industry experts, financial institutions, tax specialists and interested stakeholders to discuss the technical detail and practical application of the ESIM.
Documents
Updates to this page
Last updated 22 November 2023 + show all updates
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Published outcome and summary of responses, and linked to a technical note.
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First published.