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Energy Intensive Industries

The government has introduced a scheme that helps the UK’s Energy Intensive Industries compete with companies in countries with lower energy costs. Find out what it means for your business and what to do next.

Is your business part of an Energy Intensive Industry (EII)?

EIIs tend to be sectors such as steel, chemicals, engineering and brick making industries where energy usage makes up a significant part of production costs. Here is the government’s list of designated EIIs and the qualification rules. (GOV.UK website)

To complete your application you’ll need to prove your average electricity spend over your last three financial years also meets the scheme’s criteria. You can access your EDF Energy bills in MyBusiness.

If you qualify as an EII

EIIs can claim an exemption of up to 85% of the Contracts for Difference (CfD) cost (from 3 November 2017) and the Renewables Obligation (RO) cost (from 1 April 2018).

Feed-in Tariff (FIT) exemptions have also started (from 1 April 2019).

A new Government consultation is proposing to widen eligibility for the CfD, RO and possibly the FIT exemption schemes. The proposed changes potentially lower the qualifying threshold from 20% to as low as 10% energy intensity. 

Stay abreast of changes to the key cost components in your electricity price by reading our forecasts in our quarterly Monitor report on the Market Insight portal. 

If you don’t qualify as an EII

Most businesses won’t qualify for any exemption and the cost of this scheme will effectively be paid for by all non EII exempt electricity users across the UK.

Depending on your contract, the revised exemptions could mean an increase in the costs that you pay. If you’re looking at a contract, remember to check that each offer includes the EII cost to avoid facing reconciliations. We already include EII in all new Fixed + Peace of Mind quotes, making it easier for you to budget. 


Have questions?

Fill out our quick form and we’ll be in touch to help find the right type of contract for your business. 


Looking for a contract that means you’re in control of when and how much energy you buy? We’ll provide you with the right contract for your circumstances.


Looking for a contract that fits your way of budgeting? Simply pick a contract and then add an electricity source that supports your carbon credentials.

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