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Energy Efficiency Policy Taxes – Which Industries are Exempt?

Energy efficiency policy taxes were introduced by the Government to reduce the impact of renewable levies on energy-intensive industries.

The Government introduced a policy, aimed at reducing the impact of renewable levies and its effect on the cost of electricity, specifically for electricity-intensive industries. This initiative would better equip the UK industry to compete more fairly with European and global counterparts.

UK legislation has been passed in favour of this policy and qualifying customers are welcome to lodge their applications.

Who do the energy efficiency policy taxes apply to?

This energy efficiency policy applies to electricity-intensive users (who also meet prescribed criteria) within manufacturing, mining, casting and quarrying sectors.

A comprehensive list of criteria can be found here.

How to apply for an energy efficiency exemption

  1. Check that you company uses electricity for the specified activities described in the link above.
  2. Apply for an energy-intensive industry certificate.
  3. The application must be completed and submitted to the Department for Business Energy and Industrial Strategy (BEIS).
  4. Included in this application must be proof of the proportion of electricity measured by the meter and for which activity.
  5. If the BEIS accepts your application, you will be issued a certificate stating the level of exemption.
  6. You will only be entitled to the exemption once you have presented your certificate to the relevant supplier – this can’t be retrospectively applied.

Contracts for Difference (CFDs) and Small-Scale Feed-in Tariffs (FiTs) and Renewable Obligations

Renewable policy costs are included in the legislation, but the EII compensation is currently paid directly by the government to qualifying customers. The proposal put forward is to transform this mechanism, to emulate the exemption certificate process via the electricity supplier.