How Factories Can Save £100,000’s a Year
New research has revealed that manufacturing companies and factories use the most electricity in England and Wales¹. With many business owners worried about the rising costs of gas and electricity, business energy experts,Utility Bidder, have revealed how to sign up for grants and have offered advice on keeping business costs down.
Chris Shaw, CEO at Utility Bidder, commented, “Many business owners are worried about how rising costs are affecting not only the profitability, but also the future of their businesses. Luckily, there are grants available to businesses that will help to support businesses through unprecedented times, such as the Energy Intensive Industries Scheme.”
What is the Energy Intensive Industries Scheme?
The Energy Intensive Scheme (EIIS) was first introduced in 2017 to support businesses with high energy demands in their manufacturing processes. The scheme means that eligible businesses can receive exemptions from the indirect costs of renewable policies with up to 85% off charges for Contracts for Difference (CFD), Renewable Obligations (RO), and Feed-in Tariff (FiT). The amount of savings depends on each business’s energy usage, with some businesses seeing savings worth hundreds of thousands of pounds per year.
How can you check if you are eligible for the EIIS
To qualify for an EII certificate and benefit from cost exemptions, businesses must meet five key criteria:
Sector Level Test – The business must manufacture a product in the UK within an eligible sector.
Business Level Test – The business must pass a 20% electricity intensity test.
Financial Stability – The business must not be classified as an Ailing or Insolvent Economic Actor.
Financial Data – At least two quarters of financial data must be available.
Energy Consumption Evidence – The business must provide proof of electricity consumption for the last three months, specifically for manufacturing purposes.
If you meet the criteria, you must submit your application, along with all required documents (including electricity costs, financial data of your company and Gross Value Added (GVA) to support your application. If your application is successful, you will receive an exemption certificate. This must be passed on to your electricity supplier to apply the exemption to your energy bills.
What to do if you don’t meet the criteria for EIIS
If you don’t meet the criteria for EIIS, there are other ways to get support for your company. As of April 2024, the EII Renewable Levy Exemption has increased from 85% to 100%, affecting the followingThird-Party Charges (TPCs): Renewables Obligation, Contracts for Difference, and Small-Scale Feed-in Tariff. The transition from theEnergy Bill Relief Schemeto theEnergy Bill Discount Schemeprovides ongoing support for managing energy bills.
Additionally, new legislation has introduced a full indirect exemption from costs associated with the Capacity Market, aligning with the Capacity Market Delivery Year (October to September). The EII compensation scheme aims to mitigate increased costs for energy-intensive industries, ensuring their competitiveness in a global market.
Chris Shaw continues, “Whilst waiting for applications to be approved, business owners can reduce their energy usage by making small changes. Using appliances during off-peak times and conducting energy audits can save you hundreds of pounds in the interim.”
For more information on how to save money on business energy bills, visithttps://www.utilitybidder.co.
Neel Achary
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