In today’s competitive market, energy costs can be a major burden for manufacturers. To support industries most affected by these rising expenses, the UK government introduced the Energy Intensive Industries (EII) Relief Scheme in 2016. At Scalex Technology, we help businesses tap into these savings and secure a stronger financial future.
Is Your Business Eligible for EII Relief? | Scalex Technology
Are you an energy-intensive business struggling with rising electricity costs? The Energy Intensive Industries (EII) Relief Scheme could be the game-changer your business needs. At Scalex Technology, we help businesses like yours unlock maximum savings through energy cost exemptions. Here’s everything you need to know.
What is EII Relief?
The Energy Intensive Industries Relief Scheme was designed to assist businesses with exceptionally high energy demands, particularly those involved in heavy manufacturing processes. These industries face greater financial strain due to the costs linked to carbon pricing and emissions trading schemes, making it harder for them to compete internationally.
Recognizing this challenge, the government later transitioned the relief into the EII Exemption Scheme, implemented between autumn 2017 and spring 2018. This change aimed to provide long-term stability, giving energy-intensive businesses greater financial predictability and bigger cost savings.
Why Was the EII Exemption Scheme Introduced?
Energy-intensive sectors, such as steel, chemicals, glass, and ceramics, often operate on thin margins. The additional burden of funding the UK’s renewable and low-carbon initiatives placed these industries at a significant competitive disadvantage, especially compared to international rivals operating under lower energy cost structures.
The EII Exemption Scheme helps by reducing the indirect costs of renewable energy policies, ensuring that critical UK industries remain competitive while the country advances toward its Net Zero 2050 target.
How Much Can Your Business Save?
Eligible businesses can receive exemptions of up to 85% on the following charges:
- Contracts for Difference (CfD)
- Renewables Obligation (RO)
- Feed-in Tariff (FiT)
These exemptions can lead to substantial reductions in overall energy bills, freeing up resources that can be reinvested into growth, innovation, and sustainability initiatives.
Who Can Apply for EII Relief?
Your business may qualify for EII Relief if it:
- Operates within a high-energy-use sector (such as manufacturing, chemicals, steel, paper, or ceramics).
- Demonstrates a high electricity intensity relative to its Gross Value Added (GVA).
- Passes strict financial and operational tests set out by the Department for Business and Trade (DBT).
At Scalex Technology, we specialize in helping businesses assess their eligibility, manage the complex application process, and maximize their savings through the EII scheme.
Why Partner with Scalex Technology?
Navigating the EII Exemption process can be challenging without expert support. At Scalex Technology, we provide:
✅ Full eligibility assessments
✅ Expert documentation and application assistance
✅ Strategic advice to optimize your energy savings
✅ Ongoing support for certificate renewals and compliance
We make it easy for you to access government-backed exemptions and significantly reduce your energy costs.
EII Relief: Key Eligibility Criteria
To qualify for the EII Exemption Scheme, your business must meet five essential criteria:
- Sector Test: Your company must manufacture products in the UK within an eligible industrial sector.
- Business Electricity Intensity Test: Your operations must pass the 20% electricity intensity threshold.
- Financial Stability: Your business must not be classified as an Ailing or Insolvent Economic Actor.
- Financial Reporting: You must have at least two consecutive quarters of verifiable financial data.
- Energy Usage Evidence: Proof of electricity consumption for manufacturing purposes over the past three months must be submitted.
If your business ticks all these boxes, you could significantly lower your operational costs by participating in the EII Relief Scheme.
Why Was the EII Exemption Scheme Created?
To meet its ambitious Net Zero 2050 target, the UK government launched initiatives promoting renewable energy sources. While these efforts are crucial for a greener future, they have led to higher energy costs for consumers, particularly businesses.
Without financial support, energy-intensive industries in the UK would struggle to compete globally, especially against companies in countries with lower energy expenses. The EII Relief Scheme was introduced to level the playing field—helping key industries remain competitive while supporting the UK’s green transition.
Benefits of the EII Relief Scheme
Enrolling in the EII Exemption Scheme offers multiple advantages:
- Lower Energy Costs: Reduce your exposure to the indirect costs of renewable energy projects.
- Enhanced Financial Stability: Predictable and reduced energy bills make long-term planning easier.
- Boosted Global Competitiveness: Lower operational costs mean you can compete more effectively internationally.
- Protection for Key Industries: Sustain high-energy industries critical to the UK economy and job market.
At Scalex Technology, we specialize in guiding businesses through the application process, ensuring you maximize every available benefit.
Step-by-Step: How to Apply for EII Relief
Applying for the EII Relief Scheme is straightforward when you have the right partner. Here’s how Scalex Technology can help:
- Eligibility Assessment: We evaluate your sector and electricity intensity to confirm qualification.
- Documentation Support: Our experts assist in gathering necessary financial and energy consumption records.
- Application Submission: We manage the submission process to minimize errors and delays.
- Certificate Management: Once approved, we help you pass your exemption certificate to your energy supplier to activate your discounts.
Understanding the EII Exemption Certificate
The EII Exemption Certificate is essential proof of your eligibility. It typically includes:
- Business Details: Name and address of the applicant.
- Validity Period: The dates for which the certificate is valid.
- Qualified Energy Usage: The amount of electricity eligible for exemption.
- Exemption Rate: The specific discount percentage applied.
Without this certificate, your business cannot benefit from the exemption—making accurate and timely application crucial.
COVID-19 and the EII Scheme: What Changed?
The pandemic dramatically affected energy consumption and business finances. Recognizing this, the UK government excluded the period from 31 December 2019 to 30 June 2020 when evaluating businesses’ financial difficulties for EII purposes. This ensures temporary disruptions during COVID-19 do not unfairly impact your eligibility.
What Additional Support is Available?
As of April 2024, the government has enhanced support for energy-intensive businesses:
- 100% Renewable Levy Exemption: Covering Renewables Obligation, Contracts for Difference, and the Feed-in Tariff.
- Energy Bill Discount Scheme: Replacing the old Energy Bill Relief Scheme to provide continued support.
- Capacity Market Exemptions: Full indirect exemptions now available, aligning with the Capacity Market Delivery Year (October to September).
Scalex Technology stays updated with all regulatory changes to ensure your business doesn’t miss out on any new opportunities.
Why Choose Scalex Technology for Your EII Application?
At Scalex Technology, we go beyond energy brokerage—we’re your strategic energy and decarbonisation partner. From initial assessment to certificate renewal, we offer end-to-end support to help your business achieve maximum savings, ensure compliance, and remain globally competitive.
✅ Comprehensive eligibility assessments
✅ Expert document preparation
✅ Fast, accurate application processing
✅ Ongoing compliance and renewal support
Ready to Slash Your Energy Bills?
Don’t leave money on the table. Let Scalex Technology help you secure your EII exemption and transform your energy strategy.
👉 Contact our expert team today to find out how we can help your business thrive!
