UK HM Treasury has launched a public consultation on a new oil and gas pricing mechanism to replace the Energy Profits Levy (EPL), which ends in 2030 or earlier if the Energy Security Investment Mechanism (ESIM) is triggered. The new mechanism aims to ensure a fair return on the nation's resources at times of unusually high prices while also supporting investment. Two models are under discussion, including:
- A Revenue-Based Model (RBM), which taxes revenues exceeding set thresholds; and
- A Pr…