Energy Intensive Industries exemption scheme delayed until 2018

The department for Business Energy & Industrial Strategy has delayed the implementation of the Energy Intensive Industries (EII) exemption scheme once again, after the April 2017 expected start date was not met. The changes in Government, and discussions with the European Commission have caused the delay in enforcing the new legislation, however a new start date has been proposed for the 1st January 2018. This means that the BEIS will be required to have the new calculations, etc published and ready by the end of October, which has led many to believe the start date will be pushed back once again.

The EII scheme will move from a compensation strategy to a full or partial exemption so that Energy Intensive Industries will see immediate benefits of being part of the scheme. Ultimately, the scheme aims to decrease the amount spent on renewable taxes by Energy Intensive companies and industries, to ensure they are globally cost competitive in the respective industries. This means that the cost of CfD and RO will be increased on companies and industries that do not qualify for the exemption. According to Energy Live News, lower end users of energy can expect to see a rise in energy costs of 0.2% 0.6%. The true extent of any increases will be seen once the scheme has been fully introduced.

Many have argued that the scheme only benefits large scale corporations, and does nothing to reduce the cost of renewable charges and taxes on smaller businesses. Head of climate and energy policy at WWF UK Gareth Redmond-King said that:

Whilst EIIs are important to our economy, they also contribute huge amounts of greenhouse gases to UK emissions.

Because of this, many reports suggest that these companies should be responsible for the emissions they emit, and the damage made to the environment, and should have to pay their fair share of renewable taxes.

For a full list of Energy Intensive Industries, and for more info on the scheme visit:






Sources: Energy Live News, Smartest Energy, EDF,