Aberdeen Renewable Energy Group (AREG) has expressed concern following the Chancellor’s refusal to reform the Energy Profits Levy (commonly known as the windfall tax) in today’s Budget announcement. This decision comes despite widespread industry calls for changes that many believe are critical to safeguarding thousands of jobs and future investment in the North Sea.
While the decision on the levy is disappointing, AREG welcomes the government’s commitment to further investment in renewable energy infrastructure and measures to support households through the Energy Bills & Warm Homes Plan, which includes:
- A package to remove an average of £150 from household energy bills from April 2026.
- £1.5 billion additional capital investment to tackle fuel poverty, bringing the Warm Homes Plan to £15 billion.
- Funding changes to reduce costs associated with the Renewables Obligation for domestic customers.
The government also published its North Sea Future Plan, reaffirming the region’s role in Britain’s clean energy and industrial future. Key measures include:
- Introduction of Transitional Energy Certificates to enable limited oil and gas production tied to existing fields, ensuring no new exploration and supporting an orderly transition.
- Establishment of the North Sea Jobs Service, offering tailored support for workers moving into growth sectors such as clean energy, defence, and advanced manufacturing.
Jean Morrison, AREG Chair, commented:
“We welcome the recognition of the North Sea’s importance and the investment in renewables, but the failure to address the Energy Profits Levy risks slowing the pace of transition and jeopardising jobs. AREG remains committed to working with our members to deliver a balanced approach that protects communities while accelerating the delivery of a sustainable energy transition.”