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We help eligible electricity-intensive manufacturers claim Energy Intensive Industries (EII) compensation for the indirect carbon costs of the UK Emissions Trading Scheme (UK ETS) and Carbon Price Support (CPS) mechanism.
How it works
EII compensation helps you offset indirect carbon costs that electricity generators pass through to you in your electricity bills via two government mechanisms:
If your business is looking to reduce electricity policy charges such as the Renewables Obligation (RO) and Feed-in Tariffs (FiT), rather than offset carbon costs, there is also an EII exemption scheme available.
To qualify for EII compensation, generally businesses must:
Alongside the EII exemption scheme, your business may also be able to claim EII compensation for the indirect carbon costs of the UK Emissions Trading Scheme (UK ETS) and Carbon Price Support (CPS) mechanism. We can help you understand which schemes are suitable for your business.
Our process
You’ll meet with our consultants, where we’ll learn more about your business and briefly walk you through the EII compensation process.
We’ll assess whether your product falls within an eligible SIC code and whether your business passes the 5% filter test.
After passing these tests, we’ll begin compiling your application, handling the background work on your behalf. We’ll then submit the claim to Department for Business and Trade (DBT).
The DBT will review the claim and provide us with a letter of compensation detailing your benefits.
Why choose Leyton
We work with over 6,000 innovative companies, and our technical expertise means we can help businesses of all sizes benefit from valuable government tax incentives. Our experience means that we’re able to tailor a strategy that fits your business.
Energy services
We offer a full range of fully managed energy tax relief services, from reviewing your eligibility for government exemptions and compensation to auditing your processes and implementing action plans that optimise your energy performance and competitiveness. For energy tax relief claims, you only pay if your claim succeeds.
claim with leyton
Our energy experts will assess your eligibility quickly and guide you through the entire EII exemption claims process, making sure you receive the full relief you are entitled to.
Learn more
Find out more about Energy Intensive Compensation from our frequently asked questions.
The UK Emissions Trading Scheme (UK ETS) is a carbon pricing scheme that replaced the UK’s participation in the EU Emissions Trading System. It supports investment in low-carbon technologies by putting a price on carbon emissions.
The Carbon Price Support (CPS) mechanism is an additional carbon pricing measure that applies to fossil fuels used to generate electricity. The government introduced CPS in 2013 alongside the then EU Emissions Trading System.
To qualify, your business must manufacture a product with an eligible Standard Industrial Classification (SIC) code, and your indirect carbon costs must exceed 5% of your gross value added (GVA).
Eligible industries include manufacturers of aluminium, basic iron and steel and ferro-alloys, batteries and accumulators, copper, cotton-type fibres, fertilisers and nitrogen compounds, glass fibres, lead, zinc and tin, leather clothes, other inorganic and organic basic chemicals, paper and paperboard, pulp, and veneer sheets and wood-based panels.