Does your organisation qualify as an Energy Intensive Industries (EII)?
There is more help for Britain’s heaviest electricity users! Here is what you need to know about qualification, and how to register for the compensation if you meet the qualification criteria.
Is your organisation an Energy Intensive Industries (EII)?
In order to qualify as an EII you must satisfy some basic criteria:
- The business must manufacture a product in the UK within an eligible sector (defined by a 4-digit NACE Code) – the “sector level test”. See page 28 for list here.
- The business must pass a 20% electricity intensity test – the “business level test”. To satisfy the business level test, businesses will need to show that their electricity costs for the production of eligible products amount to 20% or more of their Gross Value Added (GVA). See page 9 here for details on how to calculate your intensity.
- The business must have at least one quarter of financial data.
- The application must contain evidence of the proportion of electricity used to manufacture the product for a period of at least three months.
A business that meets the above criteria and successfully applies for the exemption will be issued with a certificate (an “EII certificate”) confirming their eligibility for the CFD, RO, FIT and CM exemption. This will also entitle them to the Network Charging Compensation Scheme when it starts.
Further details regarding EII qualification and registration can be found here.
If you hold an EII certificate please ensure you:
- Share a copy with your supplier, Direct Power can assist you with this.
- Register for the Network Charging Compensation Scheme for additional benefits this year.
The Network Charging Compensation Scheme, helps Britain’s Energy Intensive Industries (EIIs) remain competitive in the global market, further details can be found here.
