Energy Intensive Industries Schemes
Businesses that are eligible for energy-intensive industries schemes can receive cost reductions or compensation from the UK government.
What are the Energy Intensive Industries (EII) Schemes?
There are two schemes available to the most energy-intensive industrial users:
- The EII Exemption Scheme
- The EII Compensation Scheme
These schemes are designed to mitigate the impact of carbon reduction policies which levy taxies on businesses to pay for schemes such as the Feed in Tariff, which was was an environmental programme aimed at promoting the uptake of renewable and low-carbon electricity generation.
Why was the EII exemption Scheme created?
The Energy Intensive Industries (EII) Schemes were created because of widespread acknowledgment of the direct and inhibiting effect that growing energy costs in the United Kingdom have on a range of businesses. Specifically, businesses whose energy prices make up a significant portion of their production expenses will be significantly less profitable in the future because of growing energy costs.
The government wants to encourage the transition to net-zero by levying a fee on energy suppliers, which is ultimately passed on to businesses. However, it is the government’s responsibility to safeguard the UK economy during this process, and our manufacturing industry is a prime example of a sector at risk of an unacceptable decline in profitability.
How do I qualify for the schemes?
If your company passes a business eligibility test and can demonstrate a 20% impact on profits because of energy costs, they are eligible to participate in the programme. This will ensure that at-risk energy-intensive businesses in the United Kingdom have every opportunity to stay globally competitive while fostering the transition to a net-zero future.
There is a sizable proportion of enterprises that are eligible for this exemption, but are unaware of their eligibility and are therefore not benefiting from this form of relief.
Who is eligible? What constitutes an "Energy-Intensive Industry"?
Energy-intensive industries are businesses that require a substantial amount of energy to conduct their operations. Typically, an energy-intensive business will view energy as a significant production expense.
Examples of industries which qualify :
- Metals production
- Glass & Ceramics
- Construction materials
- Wood and Paper
- Plastic and Rubber
- Chemicals & Fertilisers
- Petroleum refining
- Mining & Minerals
- Semiconductors & Batteries
- Several other specific industrial groups
How does an organisation apply for EII exemption?
Get in touch with our team today to find out!
If you are unsure of whether your business qualifies, consult our team to find out whether you can apply for one or more of the schemes.
Businesses that engage in a variety of qualifying and nonqualifying activities are still eligible for energy relief, however relief will only be applied to the proportion of energy costs pertaining to the qualifying activities.
If you would like to know more, please submit the following information and we will be in touch.