Summary
A consultation to develop a predictable fiscal response to future
oil and gas price shocks.
This consultation closes at
11:59pm on 28 May 2025
Consultation description
At Autumn Budget 2024, the government confirmed that the Energy
Profits Levy (EPL) will end in 2030 or earlier if the EPL's price
floor— the Energy Security Investment Mechanism— is triggered.
Once the EPL ends, the government is committed to ensuring that
there is a new permanent mechanism in place to respond to future
oil and gas price shocks. This new mechanism will form an
integral part of the permanent regime but will respond only when
there are unusually high prices, helping to protect jobs now and
in the future.
The consultation sets out the government's policymaking
objectives and design options for a new mechanism inviting
stakeholder feedback. The government will work together with the
oil and gas sector and others to ensure we take account of as
wide a range of views as possible during this
consultation.
The Department for Energy Security and Net Zero has launched a
separate consultation, ‘Building the North Sea's
Energy Future', which sets out the framework for the future
of energy in the North Sea to support our mission to become a
clean energy superpower.
Documents
Oil and gas price mechanism
consultation (PDF)
Ways to respond
Respond online
or
Email to:
ogpricemechanismconsultation@hmtreasury.gov.uk
