UK fnance minister Jeremy Hunt this week announced a national budget that included several measures intended to improve energy security and afordability, but one item notably absent from his budget speech was the Energy Profts Levy (EPL). The rate of this windfall tax increased to 35pc from 25pc at the beginning of this year, but the tail end of 2022 results season is beginning to reveal the outsized efect the levy had on UK-focused independent producers' profts last year. Harbour Energy, which owns the greatest share of production in the UK ofshore of any frm, complained in its 2022 results statement last week that the EPL's disproportionate efect had “all but wiped out” its proft for last year. Harbour was exaggerating a little as it had included in its net-proft calculation deferred tax charges of $1.75bn that largely comprised the efect of the EPL stretching out to March 2028, which is when it is due to end. But the efect in cash fow terms was still signifcant-the frm paid $551mn in taxes in 2022, up from $280mn in 2021.
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