Understanding EII Exemptions

For Energy Intensive Industries (EIIs), energy costs can represent a significant proportion of overall operating expenses, impacting international competitiveness. The UK government offers several exemption schemes designed to reduce this burden, yet many eligible businesses fail to claim their full entitlement.

Key Exemptions Available

There are several mechanisms through which EIIs can reduce their non-commodity costs:

• Renewables Obligation (RO) Exemption: Up to 85% relief on RO costs.
• Contracts for Difference (CfD) Exemption: Up to 85% relief on CfD costs.
• Feed-in Tariff (FiT) Exemption: Up to 85% relief on FiT costs.
• Climate Change Agreement (CCA): Significant discounts on the Climate Change Levy (CCL) in exchange for meeting energy efficiency targets.

The Application Process

Securing these exemptions requires a detailed application process, proving both that your sector is eligible and that your business meets the specific “energy intensity” tests. The complexity of this process often deters businesses, resulting in millions of pounds of unclaimed relief.

Our regulatory optimization team manages this process end-to-end, unlocking these structural savings for our clients.