The Energy-Intensive Industries (EII) Exemption Scheme is designed for qualifying businesses whose electricity costs are affected by certain policy costs passed through electricity bills.
The scheme relates to exemption or compensation for a proportion of the indirect costs of funding schemes such as Contracts for Difference, Renewables Obligation and small-scale Feed-in Tariffs. These policy costs are recovered through supplier levies and ultimately passed on to electricity bills.
For qualifying manufacturers, the exemption can materially reduce the non-commodity portion of an electricity bill. The application requires a careful, evidenced position on both sector and business-level tests.
To qualify, a business must usually satisfy both a sector test and a business-level test — supported by at least three months of evidence on electricity used in eligible production.
The company must manufacture a product in the UK within an eligible 4-digit NACE code.
The company must pass the 20% electricity intensity test — a calculation that compares qualifying electricity costs against gross value added.
The application must evidence the proportion of electricity used to manufacture the eligible product, usually supported by meter data, bills, production records or a justified allocation method. Where eligible and ineligible products share a meter, eligible usage must be isolated through metered records or a justified production-based allocation method.
The business must have at least one quarter of financial data, and evidence the proportion of electricity used to manufacture the eligible product for at least three months.
We carry the application end-to-end. The work is technical, but the shape of it is straightforward.
Successful EII applicants receive a certificate which is passed to the electricity supplier so the exemption can be applied. We support that handover and help confirm the relief is reflected correctly on subsequent bills.
Eligibility depends on the facts of each business, including activity, energy usage, scheme rules, supplier treatment and supporting evidence. Regency Reclaim does not guarantee entitlement before completing an eligibility review.
Send us your latest electricity bill and a short description of what you manufacture. We'll come back with an initial view, free of obligation.
Free review, no obligation. Typical response within two working days.
Tell us a little about the business and your recent energy usage. We'll review the information and come back with an initial view on whether relief may be available — typically within two working days.