Energy Intensive Industries
The Energy Intensive Industries (EII) Compensation Scheme was introduced by Government to help 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.
These measures are also known collectively as the British Industry Supercharger package, and you can read more at Gov.uk
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.
You can read more about the Government list of EIIs, qualification rules and how to complete your application here
If you qualify as an EII
The EII (Energy Intensive Industry) exemption for Renewables Obligation (RO), Contracts for Difference (CfD) and Feed in Tariffs (FiT) has increased from 85% to 100% from April 2024
The Government will proceed with a 100% exemption for EIIs from Capacity Market charges from the start of the Capacity Market Delivery Year on 1 October 2024.
The third element of this package is the Network Charging Compensation (NCC) scheme. This will offer EIIs 60% compensation on network costs incurred from April 2024 onwards and will be paid in arrears from April 2025
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.
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