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Industry insights

Large energy bills on site running costs?

Amanda Byrne

23rd November 2020

 
 

Do you have large energy bills on site running costs?

It’s a tough time for many businesses and having large energy bills making up a chunk of your site expenses can be exhausting. 

The good news is, there’s help!

Simply, energy intensive industries such as mining, chemicals, engineering and many more sectors can claim money back on energy bills.

Energy intensive Industries are exempt from paying 85% of three key policy costs associated with generating electricity from renewable sources through the EII Exemption Scheme.

 

EII Exemption scheme reduces key policy costs:

  • CfD - Contracts for Difference
  • RO - Renewable Obligation
  • FiT - Small-Scale Feed in tariff
 

Why has the Energy Intensive Industries exemption scheme created?

The scheme aims to help UK energy intensive industries to remain competitive with firms from other countries, whilst progressing towards overall UK decarbonisation and low carbon energy.

The UK Government is committed to reducing greenhouse gas emissions by at least 80% by 2050. 

 

Do I qualify for the EII Exemption?

Exemption is based on two main criteria:

  • Energy expenditure must be more than 20% of the total site costs, including staff costs and income.
  • The business is one of over 50 industries listed by the government that qualify for the exemption.

Qualifying businesses range from mining and quarrying to chemical manufacturing and manufacturing of carpets and rugs. 

The business must manufacture a product in the UK within an eligible sector defined by a 4-digit NACE Code.

 

Latest Updates to the EII Exemption Scheme as of June 2020

The government has added the manufacture of grain milling products to the list of eligible sectors, following a consultation and update of regulations.

Improvements to the running of the scheme, clarifying some elements of the existing guidance and removing the automatic requirement for an Independent Accountant’s Report.

 

Do energy costs make up a large proportion of your site expenses?

If your answer is YES please contact our team, we are here to help.

At Brownlow Utilities we are committed to helping businesses to achieve their carbon goals whilst saving money.

For more information and guidance on EII Exemption.

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