Energy Intensive Industries (EII) exemption
The Government’s low carbon targets have resulted in an increase in the retail price of electricity meaning that energy intensive industries are faced with a possible financial disadvantage when competing in overseas markets.
In recognition of this, the Government introduced a scheme to assist Energy Intensive Industries (EII’s) where they may be exempt from up to 100% of the cost of Contract for Difference (CfD), Renewable Obligation (RO) and Small-Scale Feed in Tariff (FiT).
Since the initial implementation of these schemes the government has added a 100% exemption on Capacity Market Charges (CMC) to provide further relief.
There is a two-step qualification process:
1) A Sector Level Test - a list of eligible sectors which can be found here
2) A Business Level Test - in order to meet the criteria a business must pass a 20% electricity intensity test
As of April 2025, EIIs have a potential 60% exemption from third-party costs related to using the GB electricity grid; Distribution Use of System (DUoS), Balancing Services Use of System (BSUoS) and Transmission Network Use of System (TNUoS).
This relief is related to costs incurred from 2024 and can be received by supplying quarterly evidence to the government displaying these payments. Read more here
At Control Energy Costs we consistently review our client’s opportunities for saving on utility charges. In Energy Intensive Industries, reducing your costs as your scale increases is essential to maintaining a competitive market position.
We’re pleased to say that we’ve helped several clients save over 40% on electricity charges through government schemes, by reviewing their eligibility and applying on their behalf.
"Control Energy Costs have been our advisors for 13 years and they constantly review our utility charges for saving opportunities. CEC recommended the Energy Intensive Industries and Network Charging Compensation schemes to us and we are pleased to say CEC confirmed we qualified for both. CEC completed both the application and reporting processes for us. We expect to see a reduction of some 45% on our electricity charges as a result of the discount offered by these government schemes. CEC’s ongoing validation process ensures we always receive the maximum benefit available to us, thus maintaining Shield Group’s competitive edge."
Shield Group
"Skymark Packaging International are now receiving the benefits of the Energy Intensive Industries (EII) scheme. This was recommended to us by our energy consultants, Control Energy Costs, who have been advising us for the past 9 years. CEC confirmed we qualified for the scheme and submitted the application on our behalf. This was accepted and are enjoying reduced electricity invoices as a result. CEC undertake the regular reporting which ensures compliance and they audit our bills to make sure the discount is being applied correctly. Skymark Packaging International pride ourselves on our cost effective initiatives and the support in this regard we receive from CEC."
Interflex Group
How can Control Energy Costs help?
Our CEC Solutions team will review EII qualification and options as part of the working arrangement with all our clients. If there is an opportunity to secure a reduction in costs, we will let you know.
If you would like us to review EII qualification for your business, please get in touch. We would be delighted to help.
