UK
Ireland
Energy reliefs
Energy price increases have put a spotlight on reliefs and exemptions for energy-intensive industries. Some industries benefit from climate change levy exemptions or discounts if they meet certain requirements. Businesses can also claim exemptions for the cost of low carbon and renewable energy costs on their bills.
Reliefs for energy-intensive industries
The energy-intensive industry exemption (EII scheme) allows qualifying businesses to claim exemption from green levies funding contracts for difference, the renewables obligation, and feed-in tariffs that support renewable energy generators.
Your business may qualify for relief if it operates in one of a range of industries:
- Food, drink and animal feed processing and production
- Manufacture of textiles
- Sawmills and production of wood-based products
- Manufacture of paper, paperboard and paper-based products
- Manufacture of chemicals, fertilisers, and petroleum products
- Manufacture of plastic, rubber, and plastic or rubber products
- Manufacture of glass and refractories, and glass or refractory products
- Mineralogical processes, including mining and quarrying
- Metallurgical processes, including the production and processing of metals and the manufacture of some metal products
Contact S&W
Our experts can advise you if your business is eligible and help you collect the necessary data and complete the application forms. If you have any queries about energy reliefs and your eligibility, call one of our team now.
Frequently asked questions about energy reliefs
How can businesses apply for energy reliefs?
To claim climate change levy exemptions and discounts, you need to complete two forms for each meter point:
- Form PP10, which calculates the amount of relief due and is then sent to HMRC
- Form PP11, which has the relief percentage transferred from the PP10 form and is sent to the energy supplier.
The energy supplier then applies the relief directly to your bills. To apply for relief under the energy-intensive industry exemption scheme, requires a detailed application sent to the Department for Business, Energy & Industrial Strategy (BEIS).
We can help you complete these applications and deal with any enquiries.
What criteria does a business need to meet to qualify for energy relief?
The primary criteria to qualify for relief is to be carrying out an eligible activity. Some climate change levy exemptions and all energy-intensive industry exemptions are governed through Nomenclature of Economic Activities (NACE) codes.
The second key criterion for energy-intensive industry exemptions is that the business should pass the energy intensity test. This requires that standardised electricity costs represent at least 20% of an adjusted profit measure.
For climate change levy discounts, eligible businesses must also join and comply with a climate change agreement between their sector association and the Environment Agency with targets for energy efficiency improvements and carbon emissions reductions.