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What do you need to know about the Energy Intensive Industries compensation scheme?.

Businesses who use a large amount of energy, such as steel and paper manufacturers, will receive extra support for electricity costs through the Energy Intensive Industries (EII) compensation scheme.

Last week, it was announced that the scheme will be extended for a further three years, with its budget more than doubling.

This extension will add to the more than £2 billion provided by the Government since 2013 supporting eligible businesses with the price of electricity bills.

What does the EII scheme do?

The scheme enables businesses with high electricity usage to apply for relief or compensation on some of their expenses, particularly Renewables Obligation and Feed in Tariff support.

Not only does this present the UK as an appealing investment destination for energy intensive businesses, but it also urges larger electrification to reduce emissions as part of the green industrial revolution.

Additionally, it will now also deliver support to companies that manufacture batteries for electric vehicles.

Lee Rowley, Industry Minister, commented on the scheme:

“We want to keep the UK at the forefront of manufacturing, helping our energy intensive industries remain competitive and sustainable for the long term, and continuing to power our economy with thousands of jobs across the country.”

Who is eligible to apply?

To apply, your business must:

  • Produce a product in the UK within an eligible sector
  • Pass a 20 per cent electricity intensity test
  • Not be an Undertaking in Difficulty (UID)
  • Have no less than two quarters of financial data
  • Include evidence of the amount of electricity used to manufacture the product for a period of at least three months.

Learn more about applying for the scheme here.

Is your business eligible to receive compensation on energy costs? Contact us today for expert advice.

 

 

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