Providing that oil and gas companies utilise their investment allowances included in the Energy Profits Levy, oil and gas extraction will continue to benefit from a lower effective rate of marginal tax than low-carbon developers. This risks offering perverse incentives to investors. We recommend that when investing in low-carbon electricity technologies, developers should receive an investment allowance rate equivalent to that received by the oil and gas sector. We further recommend that the Government revisits the case for Voluntary Contracts for Difference for low-carbon electricity generators currently subject to the Electricity Generators Levy.