Member News: OEUK gives comment as industry meets with Chancellor to reform Energy Profits Levy in the national interest

March 4, 2026
Member News: OEUK gives comment as industry meets with Chancellor to reform Energy Profits Levy in the national interest

Offshore Energies UK CEO, David Whitehouse and industry leaders met Chancellor of the Exchequer, Rachel Reeves MP this afternoon at Number 11 Downing Street to lay out the steps to reform of the Energy Profits Levy this year.

The Chancellor has asked the Financial Secretary and officials to work with industry on delivering long‑term fiscal certainty,  including clarity around the ESIM, while jointly navigating the current period of geopolitical volatility.

Those present agreed energy security is national security, and a stable, predictable investment environment is essential to delivering it. They agreed to work together in the coming days to set out a path toward a fiscal regime that supports responsible domestic oil and gas production, unlocks investment, and ensures fair return to the Treasury when prices are high.

The meeting closed with a commitment to work together to safeguard UK energy, UK jobs, strengthen supply chains, and secure affordable, homegrown energy for the long term.

David Whitehouse, Chief Executive, OEUK comments: 

“At a time of huge global uncertainty, the UK should be making decisions for the long term in the interests of energy security, prioritising domestic production of oil and gas and supporting jobs. This fundamental need has been brought into sharp focus by recent events.

“Today’s meeting with the Chancellor followed weeks of in-depth discussions with industry, which took place at the instigation of the Treasury. 

“The government has committed to work with us in the coming days to find a solution to replace the Energy Profits Levy so industry can make investments in homegrown energy. This will enable greater energy security, tax revenues and growth for the UK economy.

“On the basis of this proposed change our members identified additional investment in the UK Continental Shelf (UKCS) that could begin next year. 

“And this is just the first step. The industry is ready to invest up to £50 billion in new activity by 2050 with a functioning regulatory regime.

“We welcome that the Chancellor recognised the need for the EPL to end and appreciated her time to discuss these issues in person, during which North Sea operators reaffirmed their unwavering commitment to reducing our reliance on imports and bolstering UK energy, economic and national security at a time of geopolitical crisis.” 

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AREG has played an important role in the growth of Scotland’s renewable energy sector, engaging the supply chain and developing the European Offshore Wind Deployment Centre. However, we are only at the very beginning of the transition that AREG was established to both lead and support so there are still opportunities for companies to get into the constantly evolving renewables supply chain. We look forward to continuing our work together as renewables builds on its place as Scotland’s main source of power, and as we seek to deliver real change in the crucial areas of heat and transport.

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Vattenfall has forged a strong working relationship with AREG through the development of the European Offshore Wind Deployment Centre. AREG has worked tirelessly on behalf of the North East and it can take enormous credit for the growth of sustainable energy in the region and the path it has cleared for the region to capture further investment.

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Aberdeen City and Shire is emerging as a key location for renewables by successfully transferring its world-class oil and gas expertise into the sector and AREG has done much to advance this through a broad range of initiatives. It has acted as a catalyst in driving further investment in the local economy by engaging with companies, Government, public bodies and existing projects and we have been pleased to support their efforts. Scottish Enterprise will continue to engage with AREG as we increase Scotland’s use of renewable energy.

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