Energy Intensive Industries (EII) exemption scheme

We’ll help your business reduce non-commodity electricity costs through the Energy Intensive Industries (EII) exemption scheme, from checking your eligibility to helping make sure the exemption is applied correctly to your bills.

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How it works

How does the Energy Intensive Industries (EII) exemption scheme work?

The Energy Intensive Industries (EII) exemption scheme helps eligible businesses reduce their electricity costs by exempting them from charges that fund renewable energy schemes, including the Renewables Obligation (RO), Contracts for Difference (CfD), and small-scale Feed-in Tariffs (FiT), while also removing the GB Capacity Market charge (CM).

Who is eligible for the EII exemption?

As a general guide, to be eligible for EII exemption your business will need to:

  • Carry out an eligible manufacturing activity (the “sector level test”)
  • Have electricity costs of at least 20% of GVA (the “business level test”)
  • Have at least one quarter of financial data
  • Have evidence of your eligible electricity use covering at least three months

Check your eligibility with Leyton

EII compensation

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.

Why choose Leyton

How Leyton can help your business

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.

01 Industry knowledge

Industry knowledge

Our specialists have energy industry backgrounds as well as a strong record of helping manufacturers secure the exemptions they are entitled to.
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02 Energy expertise

Energy expertise

We understand the challenging area of non-commodity costs and can help ensure you don't pay a penny more than you have to.
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03 Carbon reduction

Carbon reduction

We’ll help you understand which schemes are available to support funding for carbon and energy reduction.
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04 Relationships

Relationships

We regularly speak with HMRC, DBT (Department for Business & Trade) and all UK energy suppliers, building the relationships that help to get things moving quickly.
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Energy services

Explore our other energy tax 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.

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Book a meeting with our EII experts

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

Frequently Asked Questions

Find out more about EII Exemption from our frequently asked questions.

How is eligibility for EII exemption assessed?

The government assesses eligibility through two main tests, including the sector level test and the business level test:

  • The sector level test checks whether your business manufactures a product within an eligible sector.
  • The business level test checks whether your electricity costs amount to 20% or more of your gross value added (GVA).

If your business has one of the relevant 4-digit NACE codes, you are likely eligible for EII exemption. However, the exemption only applies to eligible meters and sites in Great Britain, excluding Northern Ireland.

Eligible sectors include businesses involved in aluminium production, battery production, chemical manufacturing, copper production, fertiliser manufacturing, glass fibre manufacturing, iron and steel manufacturing, lead production, paper and paperboard manufacturing, pulp manufacturing, textile manufacturing, tin production, veneer sheet and wood-based panel manufacturing, and zinc production.

If your business manufactures both eligible and ineligible products, you can still apply. However, the exemption only applies to the proportion of electricity used to manufacture eligible products.

Find out more: Everything you need to know about the Energy Intensive Industries (EII) exemption scheme

If the DBT approves your application, you’ll receive an EII certificate confirming the proportion of electricity eligible for exemption. You need to then pass the certificate to your electricity supplier, so they can apply the exemption to your eligible electricity costs. We can manage this process on your behalf.