• Inenco has 25TW (£2.4bn) energy under management, which could power the whole of Ireland for an entire year!
  • We have one quarter of the total energy use by UK Industry under management
  • Our customers are paying 48% less than the market price for their gas commodity. That's a saving of £480k per £1m that would have been spent
  • Our experts process over 93,000 invoices per month and we've recovered over £11m in over-charges for our clients in the last year
  • Inenco look after 8,000 customers across the group, managing 140,000+ meter sites
  • We provide support to over 500 businesses for energy and carbon management
  • Inenco supported over 320 organisations with ESOS Phase 1 compliance and carried out more energy surveys than any other independent consultant in the UK
  • Our solutions team have identified savings of £37.5m per annum for our clients, a total of 495,338,992 kWh savings identified
  • Last year we saved our CCA clients alone £25.5m

EII: Keeping an eye on eligibility

If your business counts electricity amongst its largest overheads but your energy spend has historically fallen just short of the threshold for Energy Intensive Industry exemption, it’s worth taking another look at your entitlement. It’s expected that more businesses could soon qualify for the EII scheme. The reasons for this are twofold:

1. Eligibility is likely to widen

We are currently awaiting the outcome of the BEIS consultation on widening eligibility for EII exemption. The exemption thresholds were initially calculated to ensure that the most energy intensive UK industries could compete against their EU counterparts, despite higher electricity prices. Marketplace changes, increases in policy costs and a persistently bearish wholesale market have given BEIS cause to reconsider what those thresholds should be.

For business to be exempted under the EII, they must currently demonstrate that their energy expenditure is more than 20% of their total site costs, including staff costs and income. The consultation asks whether this should be lowered to 17%, 15% or 10% and explores how this may impact newly eligible businesses, as well as other electricity consumers. The need to support energy intensive industries must of course always be balanced with the impact on the wider business marketplace, who will absorb the additional costs of the scheme. However, even if the Government decides on the highest of the new thresholds under consideration, there will be businesses that were not previously eligible who will stand to save an average of £2.8million p.a.

For businesses who believe they may become eligible, it’s important to keep an ear to the ground for new developments and consider the resources needed to complete the application process in advance, as savings from the EII cannot be backdated.

2. Rising costs have pushed more businesses towards the threshold

Businesses across the board will have seen significant rises in the total cost of their energy over recent years. Non-commodity costs now make up more than half on an energy bill; by 2020, they are likely to account for around 60% of the total cost of business electricity. Volatile wholesale costs are also putting pressure on those with responsibility for business energy budgets. It’s more important than ever to try to find new ways to mitigate the total cost of energy. So, if a business believes that the rising cost of electricity has pushed them towards or beyond the EII threshold, our advice would be to investigate further. Under current rules, EII exempt businesses can receive 85% exemption on Renewable Obligation (RO) and Feed-in-Tariff (FiT) costs. This is received directly as a reduction on electricity bills. The cost of running the scheme is covered by payments from non-eligible consumers – so, if you think your business could be eligible, act now.

Inenco can offer advice and support to businesses who believe that they may be eligible for EII exemptions, as well as those who have already confirmed that they are exempt but need assistance meeting reporting requirements and submission deadlines. If you think your business could benefit from expert help with EII or other energy compliance requirements, please get in touch.

Watch this space! The outcome of the EII exemption is expected soon. We’ll be reporting on what happens and what it might mean for your business, so why not bookmark our compliance hub to be sure you have the clear and easy to understand information you need?