EII Exemption Scheme

The EII Exemption Scheme allows big energy users to claim an exemption of up to 85% of their Contract of Differences (CoD) and Renewables Obligation (RO) costs.

What is the EII exemption scheme?

The Energy-Intensive Industries (EII) Exemption Scheme was rolled out by the UK government between 2017 and 2018 to replace the EII Compensation Scheme. It excludes qualifying businesses from the higher energy costs associated with renewable schemes put in place by the government to achieve its 2050 zero carbon emissions goal.

Unfortunately, the costs that fund these schemes, whilst fronted by energy suppliers, ultimately fall on energy-intensive businesses in the form of inflated energy prices.

This makes the EII Exemption Scheme a valuable tool for energy-intensive businesses competing in the global market.

Who qualifies?

Energy-intensive industries qualify for the exemption scheme if they use more than 20% of their total site cost and are not under significant financial strain. The list of sectors that fall under EII is quite extensive and includes engineering, mining, steel, and meat processing.

Big energy users who do not qualify for the EII Exemption Scheme should still be aware of rising energy costs and should explore schemes such as Carbon Footprinting, Energy Audits, Streamlined Energy and Carbon Reporting (SECR) and Energy Savings Opportunity Scheme (ESOS). This can provide invaluable insight into your environmental impact and routes to improve energy efficiency within your company.

Why you should apply?

BEIS compensates qualifying businesses for up to 85% of costs from Renewables Obligation (RO), Contracts for Difference (CfD) and Feed-in Tariff (FiT) schemes. This can provide certainty and financial stability in a post-Covid economy and bolster the UK’s position in the global market.

Get in touch for assistance with EII Exemption Scheme

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