Rising energy costs continue to challenge businesses across the UK, particularly those in energy-intensive sectors. The Energy Intensive Industries (EII) Exemption Scheme is designed to provide relief for businesses that consume high levels of electricity as part of their operations. By reducing the indirect costs of renewable energy policies, the scheme helps eligible businesses remain competitive in a challenging market.
What is the EII Exemption Scheme?
The EII Exemption Scheme allows eligible businesses to receive relief from the costs of certain government-imposed renewable energy charges, specifically:
- Contracts for Difference (CfD) Levy
- Renewables Obligation (RO) Levy
- Feed-in Tariff (FiT) Levy
These levies are designed to fund the UK’s transition to renewable energy but can place a significant financial burden on energy-intensive industries. The EII scheme provides an exemption of up to 85% on these costs, allowing businesses to reduce their energy expenses and maintain international competitiveness.
Who is Eligible for the EII Exemption?
To qualify, businesses must:
✔ Operate in an eligible energy-intensive sector (such as steel, chemicals, glass, paper, or cement production).
✔ Demonstrate that electricity costs account for at least 20% of their Gross Value Added (GVA).
✔ Meet specific financial and operational criteria set by the UK government.
Businesses must apply for the exemption and provide supporting financial and energy consumption data to prove their eligibility.
How Much Can Businesses Save?
The exact savings depend on a company’s energy usage and the proportion of their bill attributable to the covered levies. However, with up to 85% relief on these costs, some businesses could see savings worth hundreds of thousands of pounds per year—money that can be reinvested into operations, sustainability initiatives, or workforce development.
Why is the EII Scheme Important?
- Improves Competitiveness – Helps UK manufacturers and other high-energy users compete with international firms that may not face similar renewable energy levies.
- Supports Business Growth – Reducing overhead costs enables businesses to invest in innovation and expansion.
- Encourages Sustainability – While reducing costs, many EIIs are also actively investing in energy efficiency and sustainability measures to future-proof their operations.
The Energy Intensive Industries (EII) Exemption Scheme does not have a fixed application deadline; businesses can apply at any time. Once granted, an EII certificate is typically valid for one year, from 1st July to 30th June of the following year. To maintain continuous exemption, businesses should submit a renewal application before their current certificate expires.
It's important to note that the exemption rate increased from 85% to 100% as of 1st April 2024. Given that today is 10th March 2025, businesses aiming to benefit from the exemption for the upcoming period starting 1st July 2025 should ensure they apply or renew their certificates promptly to avoid any lapses in exemption.
How Can Enexus Energy Help?
Navigating the complexities of the EII Exemption Scheme can be challenging. At Enexus Energy, we specialise in helping businesses assess eligibility, gather the necessary data, and apply for exemption to maximise savings. Our energy experts provide tailored guidance to ensure your business takes full advantage of available support while optimising your overall energy procurement strategy.
Next Steps
If your business operates in an energy-intensive sector, now is the time to explore potential savings through the EII scheme. Get in touch with Enexus Energy today to see how we can help you lower costs and secure a more competitive energy position.
Would you like to discuss your eligibility? Contact our team today! - https://enexusenergy.co.uk/contact/