The government introduced a policy to reduce the impact of renewable levies on the cost of electricity of the most electricity-intensive industries in the UK. This would enable the UK industry to compete more fairly with European and global competitors.
This policy applies to very intensive electricity users in industries such as manufacturing, mining, casting and quarrying in the UK with high energy costs that meet certain eligibility criteria. A full list is shown in Annex A in the link below:
CFDs and Fits under Electricity Market Reform (EMR)
Customers who use electricity for a “specified activity” as detailed in the link above can apply for an EII certificate in respect of the electricity meter which measures the electricity used. The application must be sent by the customer to the Department for Business Energy and Industrial Strategy (BEIS) and contain the information listed in the regulations (e.g. evidence of the proportion of electricity measured by the meter used for a specified activity). The formula is a factor of energy used over the three-year period from 2012 to 2014.
If BEIS agree to the exemption following the customer’s application, then the customer will be issued a certificate specifying the level of exemption. The customer would only be entitled to the exemption once they had presented their certificate to the supplier and it would not be retrospectively applied.
UK legislation has been passed to deliver the policy and the government is now open to receiving applications from qualifying customers.
CFDs, small scale FITS and Renewable Obligations
These renewable policy costs are included in the legislation but the EII compensation is currently paid directly by the government to qualifying customers. The proposal is to change this mechanism to a similar exemption certificate process through the electricity supplier.