A guide to tax exemption for energy intensive industries (EII’s).

Does your business use a lot of energy to drive its operations? If so, you might be eligible for the Energy Intensive Industries (EII) Scheme.

What is EII?

Energy-intensive industries (EII) are businesses that consume large amounts of energy in their operations, particularly within sectors like manufacturing. These typically include manufacturing businesses that produce steel, cement, lime, chemicals, aluminium, ceramics, glass, pulp, paper, and plastic.

Balancing sustainability with competitiveness can be challenging for these industries, especially as they work toward climate neutrality in line with global commitments. However, achieving long-term efficiency and cost savings is within reach with the right strategies and support.

highly mechanical factory

What a lot of businesses don’t know is there is a government initiative called the EII exemption scheme. This means any qualifying energy-intensive business can receive exemptions from certain governmental taxes placed on energy bills to fund the UK’s Net Zero strategy.

The Energy Intensive Industries (EII) Scheme helps eligible businesses significantly reduce energy costs by providing exemptions and discounts on key charges:

Your business will receive a 100% exemption from the following levies:

  • Renewables Obligation (RO)
  • Feed-in Tariffs (FIT)
  • Contracts for Difference (CFD)

Companies also receive a 60% exemption on standard network charges such as TNUoS, DUoS, and BSUoS. These are refunded back to your business a year later on a monthly basis (e.g. Apr 24 will be refunded on May 25).

As of October 2024, certificate holders now receive a 100% exemption from the Capacity Market (CM) charge. increasing your opportunity for savings.

Can You Unlock Cost Savings?

Is your business eligible for the EII scheme? If you operate in an energy-intensive sector and fall under specific SIC codes, you could qualify for significant cost reductions on your energy bills.

Also, it’s important to note that one section of your business operations could apply if not the whole business.

How We Help

We provide a quick eligibility check to determine if your business can benefit from the EII scheme. If you qualify, we handle the application process, ensuring you maximise your savings with minimal effort.

The Value to Your Business

  • Over £4 million saved for our clients to date.
  • Reduced energy costs mean more funds to reinvest in your operations
  • A smoother, hassle-free process managed by our experts

EII Eligibility Check

Let Brownlow find out if you qualify, its quick and easy.

EII Eligibility check

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