EII –  Exemption or Compensation?

The UK Government is in the process of moving from compensation to exemption for businesses that meet the criteria to be categorised as Energy Intensive Industries (EII).

Exemptions are in place for eligible businesses for the indirect costs arising from the Renewable Obligation (RO) and Contracts for Difference (CfD).  According to their ‘response to the consultation on implementing an exemption for energy intensive industries  from the indirect costs of the renewables obligation and the feed-in tariff schemes’ published in July 2008,  the government intends to implement an exemption for the indirect costs of the Feed-in Tariff (FIT) scheme “by April 2019, or as soon as practically possible after that date.”

How much of a rebate can my EII business expect to receive?

The maximum “aid intensity” is 85% of eligible electricity costs.

Does the EII exemption apply throughout the UK?

The CfD and RO exemptions and FIT compensation do not apply to companies based solely in Northern Ireland.