Energy Intensive Industries (EII) Scheme Support

To qualify for the Energy Intensive Industries (EII) Exemption Scheme, you must:

1. Manufacture an eligible product in Great Britain (classified by a matching 4-digit NACE code)
2. Prove electricity costs equal or exceed 20% of the company’s Gross Value Added (GVA) for a minimum 3-month period 
3. Supply at least two quarters of verifiable financial records
4. Provide the past 3 months of electricity consumption attributable to the eligible product

From 2024, meeting the above criteria means businesses are entitled to up to 100% exemption from eligible indirect policy costs. Under the EII Compensation Scheme, eligible businesses may also be entitled to reimbursements for indirect carbon costs not covered by the EII Exemption Scheme. 

Working with Consultiv Utilities means you’ll benefit from our years of experience in EII Scheme eligibility. Our team will help you gather the necessary information and support you at every stage of the application process, ensuring that, if you’re eligible, you’ll receive an exemption of up to 100% on indirect electricity policy costs, and we’ll identify whether you qualify to receive refunds for other indirect costs. 

Book your free eligibility assessment to take the first step. 

Consultiv Utilities provides end-to-end support for businesses looking to access the Energy Intensive Industries (EII) Exemption and Compensation Schemes, helping to reduce your administrative burden and ensure ongoing compliance with scheme requirements.

As part of our service, our team will:

• Handle your EII application and ongoing management
• Undertake EII feasibility analysis
• Complete and submit EII application evidence pack
• Manage exemption/compensation with electricity suppliers
• Submit quarterly and annual reporting for your EII requirements
• Apply to DESNZ & DBT for your quarterly rebate

Get started with a free initial assessment to help you understand if your business is eligible for exemption or compensation.

The EII Compensation Scheme provides compensation to eligible energy-intensive manufacturers for certain indirect costs associated with the UK Emissions Trading Scheme (UK ETS) and Carbon Price Support (CPS) mechanism(will be discontinued from April, 2028). The scheme is designed to help reduce the risk of carbon leakage by supporting manufacturers exposed to these costs.

To qualify for the compensation scheme, you must:

• Manufacture an eligible product in Great Britain with an eligible SIC code.

• Pass the 5% test, demonstrating that its indirect carbon costs are equal to or greater than 5% of its Gross Value Added (GVA).
• Meet the Government’s requirements for the relevant five-year financial reference period, including passing the 5% threshold on a mean-average basis and being above 5% in at least three of the five years.

The scheme applies to businesses manufacturing eligible products in Great Britain (England, Scotland and Wales) and does not cover Northern Ireland.

Consultiv Utilities can help you assess your eligibility, prepare the required financial and energy data and navigate the application process.

The EII Exemption Scheme provides high-energy manufacturers with up to 100% exemption from eligible indirect electricity policy costs. To be eligible, businesses must manufacture a product in Great Britain with an eligible NACE code and must prove that electricity costs make up at least 20% of the Gross Value Added (GVA) over a 3-month period. 

Eligible businesses holding an official EII certificate can receive complete relief from eligible indirect electricity policy costs, including:

• Contracts for Difference (CfD): 100% exemption from the costs of supporting new low-carbon generation.
• Renewables Obligation (RO): 100% exemption from the legacy deployment scheme costs.
• Feed-in Tariffs (FiT): 100% exemption from small-scale renewable subsidy contributions.
• Capacity Market (CM): 100% exemption from grid security backup fee

EII eligibility depends on the scheme you are applying for and includes sector and business-level requirements.

The Sector Test

You must manufacture a product in Great Britain that has an eligible 4-digit NACE industrial classification code for the Exemption Scheme, or an eligible SIC code for the Compensation Scheme.

Qualifying manufacturing industries include:

• Wood and paper
• Rubber
• Glass
• Plastics
• Ceramics
• Metal casting
• Chemicals
• Fertilisers
• Battery production
• Malts
• Grain milling
• Metal production
• Construction materials
• Animal feed
• Poultry Processing
• Refractory product

The Business Level Test

Once a business has established that it operates in an eligible sector, it must also meet the relevant business-level test for the scheme it is applying for.

• EII Exemption Scheme: You must demonstrate that electricity costs represent at least 20% of your Gross Value Added (GVA) over the relevant assessment period.
• EII Compensation Scheme: You must pass the 5% test, demonstrating that indirect carbon costs are at least 5% of GVA on a mean-average basis over the relevant five-year reference period. The business must also be above the 5% threshold in at least three of those five years.

These tests help determine whether a business meets the required level of energy or carbon cost intensity for EII support.

At Consultiv Utilities, we understand both the regulatory framework and the commercial pressures faced by energy-intensive businesses.

Our approach combines:

• Regulatory accuracy
• Commercial optimisation
• Ongoing compliance management
• Strategic energy advisory

We do not simply explain the scheme. We manage the process end-to-end, so your internal team can focus on operations.

Whether you are a business owner concerned about margin protection or a facilities manager managing electricity exposure, our Energy Intensive Industries support is structured around measurable financial outcomes.