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Energy Intensive Industries (EIIs) Benefit from Enhanced Exemptions


We're excited to inform you about some forthcoming changes that could greatly benefit your business, especially those categorised as Energy Intensive Industries (EIIs).


Changes from April 1, 2024: EIIs, known for their substantial energy usage and significant electricity bills, have long faced the challenge of high industrial electricity prices affecting their competitiveness. To address this, the Government introduced a relief scheme that provides eligible EIIs with exemptions from certain Third-Party Costs (TPCs). As of April 1, 2024, eligible EIIs will experience a substantial enhancement in this relief – moving from an exemption of up to 85% to a full 100% exemption from the costs of the Renewables Obligation (RO), Feed in Tariff (FiT), and Contracts for Difference (CfD). All businesses positively impacted by this enhanced exemption, will see changes on their electricity bills starting May 2024.


Changes from April 1, 2025: Currently, EIIs bear a portion of electricity network charges, which include Balancing Services Use of System (BSUoS), Transmission Network Use of System (TNUoS), and Distribution Use of System (DUoS). From April 1, 2025, eligible EIIs will enjoy a 60% exemption from these network charges, further alleviating their financial burden. It's important to note that this relief is contingent on the previous year's contributions to these charges. To avail of this relief, starting April 2024, EIIs must provide quarterly evidence to the Government, showcasing payments towards these TPCs.


Looking Ahead: While we anticipate additional details from the Government on these changes, we understand you may have questions in the meantime. For any queries about the scheme, feel free to reach out to info@ecbs.co.uk. We're committed to keeping you informed about these developments, ensuring that your business can navigate these changes seamlessly.


At ECBS, we're excited about the positive transformations on the horizon for EIIs. These changes not only reinforce our commitment to sustainable energy practices but also empower businesses to thrive in an evolving energy landscape. Stay tuned for more updates, and if you have any immediate questions or concerns, don't hesitate to get in touch.

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