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Energy Services

Energy Tax Relief for Businesses

Access government support in relation to your energy spend.

Businesses that use electricity, gas or other fuels as part of operational processes may be able to reduce energy-related costs through recognised UK relief and compensation mechanisms.

 

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Who Can Benefit from Energy Tax Relief

Energy tax relief schemes may apply to businesses that use energy as part of their operations and meet the relevant eligibility thresholds.

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Manufacturing Operations

Businesses using electricity or gas in the production, processing, or transformation of materials.

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Energy-Intensive Industries

Operations where energy consumption represents a significant proportion of costs.

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Frontier and Foundational Industries

Facilities such as manufacturing plants and other operational sites where energy powers equipment or technical processes.

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Businesses with Exceptional Circumstances

Companies where eligibility depends not only on energy spend, but also on the type of energy costs incurred, the contracting entity and the wider company structure.

Relief Mechanisms

Energy Relief and Compensation Schemes We Advise On

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Energy Intensive Industry (EII) Relief

The Energy Intensive Industries scheme (also known as the British Industrial Supercharger Scheme) reduces certain policy costs included in electricity prices for eligible energy-intensive manufacturers.

Companies manufacturing products in eligible sectors and meeting the relevant scheme thresholds, including the required electricity intensity test, may qualify for relief on costs associated with the Renewables Obligation (RO), Contracts for Difference (CfD), Feed-in Tariff (FIT), and Capacity Market (CM), RAB Levy and EII NCC Levy.

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British Industrial Competitiveness Scheme (BICS)

BICS, launching in April 2027, is being introduced to reduce electricity costs for eligible manufacturing businesses by exempting certain policy-related levies from electricity bills.

Companies operating in eligible manufacturing frontier industries, or in foundational industries supplying them will qualify for relief. Full eligibility rules are still being finalised by the Government.

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CPS / ETS Compensation

Companies manufacturing in eligible sectors, where electricity makes up a significant share of business costs, may qualify for quarterly cash payments under the UK ETS & CPS Compensation Scheme.

Companies operating in energy-intensive sectors where electricity costs are affected by carbon pricing policies.

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Climate Change Levy (CCL) Relief

The Climate Change Levy (CCL) is a tax applied to electricity, gas, and fossil fuels used by non-domestic businesses in the UK.

Businesses using energy directly in manufacturing, processing, or other operational activities may be able to reduce the CCL element of their energy costs.

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Can a business qualify for more than one scheme?

In short, yes! If a business falls into a sector which has support in multiple schemes, there is nothing to stop them from applying to all of them. Most of the schemes complement each other and can operate alongside one another, depending on the business’s sector, energy profile, and qualifying activities.

Energy tax relief

Energy Relief Eligibility Checker

Could your business be eligible for energy cost relief? Answer a few quick questions to see which energy relief schemes may be worth exploring for your business. 

Takes around 2 minutes. Your result is an initial indication only.

Why Us

Why Bonham & Brook

Specialist-led advice, tailored to your business.

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Unparalleled expertise

Our team is made up of specialists who are genuinely the best in their field: people who’ve spent years mastering their discipline. That depth means our advice holds up under scrutiny.

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Human-centred approach

We build partnerships that last. We integrate with your team, understand your business, and stay commited through the complex moments. That’s earned us clients who come back, year after year.

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Ethical Foundation

Compliance is at the core of everything we do. It’s the foundation of how we think and advise. With a stellar in-house compliance team, you can be certain that every recommendation we make is defensible.

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Trusted by the best

Leading organisations across industries trust us with their most complex challenges. That reputation is earned through consistent excellence and personable service synonymous with Bonham & Brook.

Challenges We Solve

Many businesses use significant amounts of energy but are unsure whether their usage qualifies for relief or how to evidence it.

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Eligibility and Energy Use Classification

We review how energy is used across activities, processes and sites to identify where CCL, EII or other relief schemes may apply.

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Evidence and Metering Data

We identify the metering data, usage records and operational evidence needed to link energy use to qualifying activities.

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Scheme Compliance and Claim Defensibility

We structure applications so the methodology, evidence and assumptions are clear during review, audit or follow-up queries.

The B&B Method

Our Advisory Process

Our structured approach identifies where energy use may qualify for relief, supports the evidence required by each scheme, and prepares compliant applications for the relevant energy tax relief programmes.

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Download our Energy Brochure

Find out how Bonham & Brook helps you navigate Energy Tax Relief and unlock significant tax savings.

Case Studies

Examples of how we’ve helped businesses secure funding, manage risk, and unlock tax value.

Frequently Asked Questions

We usually request a limited set of information such as energy bills, consumption data, and basic operational details. Our team then performs the analysis and identifies whether your business may qualify for relevant energy tax relief schemes.

Yes.

The government continues to increase support in this area, with expanded funding for Energy Intensive Industries and the introduction of the British Industrial Competitiveness Scheme (BICS) from Autumn 2026, reinforcing a long-term commitment to supporting high-energy users.

These schemes are heavily regulated and subject to audit, so claims must be supported by clear methodology and robust evidence to secure and retain benefit.

No. Some schemes apply more broadly to operational energy use, but others — particularly EII and ETS/CPS — are restricted to specific sectors defined by government eligibility criteria.

In many cases, eligibility is not obvious and depends on how activities are classified, rather than the headline industry alone.

Eligibility reviews focus on electricity and gas consumption used within qualifying operational processes. CCL charges may also include fossil fuels.

Yes, in certain cases businesses can access multiple schemes simultaneously.

However, each scheme has distinct criteria, methodologies, and compliance requirements, and they must be assessed independently to ensure claims are accurate and aligned.

We keep your commitment time to a minimum. Once initial data is provided, we manage the analysis, build the supporting evidence, and handle the application and ongoing compliance with the scheme.

We typically work as an extension of your existing finance, procurement, or energy team — integrating with how you already operate, learning your data and processes, and embedding ourselves accordingly rather than disrupting established ways of working.

If your operations or energy use do not meet the relevant criteria, we confirm this early.

These schemes do evolve over time, and eligibility can change as thresholds, guidance, or your operations develop. We keep this under review where relevant — a number of our current clients did not meet the criteria initially but qualified at a later stage as circumstances shifted.

These schemes sit in a highly niche area between energy, tax, and government policy.

They require detailed understanding of scheme guidance, operational energy use, and how to structure claims in a way that stands up to audit — but also how those rules are applied in practice, which isn’t always clear from published guidance alone.

Most advisors don’t operate at that level of depth, don’t have direct exposure to scheme administrators, and don’t have a communication channel to validate interpretations or challenge grey areas. As a result, these opportunities are often missed or avoided entirely.

For qualifying businesses, we typically see savings in the region of 10–45% of eligible energy costs, depending on the scheme applied and the structure of energy consumption.

The key is accurately identifying qualifying energy and ensuring claims are structured correctly to capture full value.

Initial eligibility can typically be scoped on a 30 minute call.

From there, we would usually expect a further 2–3 hours to gather and review the required data to confirm eligibility and outline the opportunity.

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Our experts will review your eligibility free of charge. 

Speak with a specialist to confirm whether your business may qualify for energy tax relief, identify applicable schemes such as CCL or EII, and understand the next steps for a compliant application.

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