The government‘s decision to hike the Energy Profits Levy (EPL), also known as the windfall tax, has made energy major TotalEnergies cut millions of pounds from its investment plan in the North Sea.

During his Autumn Statement, the Chancellor said the existing EPL on oil and gas generators would be reformed to tax 35% of excess profits rather than the 25% currently set.

In a statement first reported by Energy Voice, Total Energies UK Country Chairman Jean-Luc Guiziou said: “Following another change to the fiscal environment for energy investors in the UK, we are now evaluating the impact of this change on our current and planned projects.

“We note that without a price floor to the EPL, the current regime will affect short-cycle investments, in particular infill wells.

“For 2023 alone, our investments will be cut by 25%.”

Last week, the chief of SSE warned that the government’s new windfall tax on electricity generators could threaten the UK’s energy security.