To enable businesses operating in Energy Intensive Industries (EIIs) to compete with their counterparts in countries with lower energy costs, the Government exempts eligible EIIs from the indirect costs of renewable policies. But this exemption isn’t automatic – EIIs must apply and be approved for EII exemption certificates before they can benefit from savings.
Businesses that have an electricity expenditure of more than 20% of their total site cost can claim an exemption of up to 85% of the Contracts for Difference (CfD) and Renewables Obligation (RO) costs. We’re still awaiting further information from the Government on whether the existing Feed-In-Tariff (FiT) compensation scheme will be changed to an exemption scheme.
EII exemptions can’t be backdated, so if you believe that your business could be eligible, you should act to claim your entitlement as soon as possible. But when you’re focused on your day-to-day business activities, it can be difficult to find the time to work out what you’re entitled to and put together an effective application.
Our in-house teams have the industry knowledge and experience to make sure you can optimise your energy savings without putting pressure on your internal resources. We know that your time is precious, so we’ll take care of everything, while you concentrate on your core business.
Whether you’re unsure whether your business is eligible, or you know you’re eligible, but you simply don’t have time to dedicate to applying for exemptions, it’s worth talking to our experts about how we can help you – we’ve helped one of our EII customers to save £400k per year.
The Government is currently considering whether to widen eligibility for the EII exemptions, with the initial consultation looking to determine whether it would be feasible to lower the qualifying threshold from 20% to 17%, 15% or even 10%.
The outcomes of this consultation are yet to be announced, but we could potentially see many more businesses becoming eligible for EII. Sign up for our newsletter to stay up to date with the latest changes in the world of energy.
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