Energy Intensive Industries (EIIs)

Exemptions for EIIs

To mitigate the impact of rising energy costs, the Government introduced exemptions for EIIs from certain policy costs, including:

Contracts for Difference (CfD)
Renewables Obligation (RO)
Feed-in Tariffs (FiTs)

These exemptions aim to ensure that EIIs remain competitive internationally. The relief was initially set at 85% but has now increased to 100%, including an exemption from Capacity Market charges.

To see if your business qualifies as an EII, you need to check if your limited company’s SIC code appears on the Government exemption list:

See the exemption list

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Impact on Non-EII Businesses

While EIIs benefit from these exemptions, non-EII businesses bear the cost. The relief is funded by all non-EII electricity users, leading to increased electricity prices for businesses that do not qualify, and most suppliers will pass these costs onto non-eligible clients annually as a one off invoice.

The estimated annual increase in energy bills varies:

Small businesses: £360
Medium-sized businesses: £15,000
Large non-exempt businesses: £140,000

Energy Cost Management Strategies

Adjust shift patterns

to avoid peak usage times (e.g., 4 PM–7 PM on weekdays).

Use smart meters and live usage software

to monitor and optimise energy consumption, which Fox Energy is able to provide.

Explore flexible contracts with Fox Energy

that allow cost reductions by shifting energy usage to off-peak hours.

Why consider Flex?

A fully fixed energy contract has risk and insurance built into the kWh costs to cover peak usage during the red periods, even if you do not use any and are therefore generally higher in cost than a Flexible contract. This is why Flexible contracts are becoming more prominent with half-hourly supplies, as it is possible to reduce cost by simply moving shifts/production away from the expensive red periods and into the amber or green lower cost time frames. Being able to isolate idle machinery, so that it does not use power until required, will also deliver a cheaper cost per kWh to the business.

As you can see from the diagram, if you are consuming during the peak red period, you will be paying a premium for the energy consumed during this time.

Flexibility

If you can re-structure shift patterns to avoid this period and move the work into the amber periods either side, then you will reduce costs immediately. This may not reduce your consumption, but you will be paying less for it.

Please ask Fox Energy about how this will affect your business and to explore the contract options available to help limit the potential unnecessary costs to your business.