Britain said on Wednesday it would end the windfall tax on North Sea oil and gas producers in 2030 and consult on a new mechanism for a fiscal response to high energy prices, as it set out plans to boost the clean energy prospects of the North Sea.

Top UK oil and gas producers complained that there’s still little clarity on the government’s plans for taxes and permits for North Sea drilling, making investment decisions difficult.

The consultation will set out the next steps for the government’s strategy to transition away from fossil fuels

The UK government has announced that the windfall tax on profits made by energy firms in the North Sea will end in 2030. The Energy Profits Levy (EPL) was introduced in May 2022 after companies recorded skyrocketing profits due to a sharp rise in energy prices.

British oil and gas drillers could face a new tax regime following the energy crisis, which pegs levies to fluctuations in global oil and gas prices. The mechanism is intended to replace the notorious “windfall tax” and was outlined in a consultation on the North Sea published on Wednesday.