Energy Intensive Industries (EII) Tax Incentive

Why is EII Relief Important?

In a landscape of rising energy costs, UK businesses are increasingly challenged to stay competitive. The government-backed EII Relief scheme offers critical support to high-energy-using industries, levelling the playing field with international competitors facing lower energy costs.

Transport businesses utilising low-carbon fuels, as well as mineralogical and metallurgical companies participating in the Climate Change Agreement (CCA) scheme, are potential candidates for CCL tax relief.

What is Energy Intensive Industries (EII) relief?

Initiated by the UK government in 2016, EII Relief aims to support companies that require significant energy consumption for production. The scheme is particularly beneficial for businesses disadvantaged by the costs associated with renewable and low-carbon policies. Eligible companies can obtain exemptions of up to 85% on indirect costs related to Contracts for Difference (CFD), Renewables Obligation (RO), and Feed-in Tariff (FiT).

Is Your Business Eligible?

There are five key requirements in determining whether a business is eligible for an EII certificate for an exemption from a proportion of the indirect costs of funding the CFD, RO, and FIT:

• Sector level test – the business must manufacture a product in the UK within an eligible sector.
• Business level test – the business must pass a 20% electricity intensity test.
• The business must not be an Ailing or Insolvent Economic Actor.
• The business must have at least two quarters of financial data.
• The business must show evidence of the last three months’ electricity consumption used to manufacture the products.

How can Get My Funding assist you?

A completed and evidenced application form needs to be sent directly to BEIS, the certification body. Once a certificate is obtained it is passed to the energy provider who will automatically apply the exemptions. This means that your electricity is discounted at source and you don’t have to go through a reclaim process each year. The certificate can then be renewed on an annual basis.

Submitting a successful EII exemption application involves meticulous preparation and documentation. At Get My Funding, we manage this process for you, collecting all the essential data, including the crucial "electricity cost impact calculation."

Our expertise extends to facilitating third-party communications, allowing you to focus on your core business activities. Given the intricacies of the application, professional guidance can make a significant difference.

Obtaining this certificate simplifies future processes: it's submitted to your energy provider, and applicable exemptions are automatically included in your billing, eliminating the need for annual claims.