The EII Application Process

Applying for an EII certificate involves financial, technical and electricity-consumption information.

A strong application must demonstrate not only that the business operates within an eligible sector, but also that it meets the business-level electricity-intensity requirement and that the electricity included within the application relates to qualifying production.

EII Advisory manages the process from the initial assessment through to certification and implementation.

1. Initial Eligibility Review

The first stage is to establish whether the business appears capable of meeting the scheme requirements.

This normally includes an initial review of:

• the legal entity applying

• products manufactured

• production processes

• relevant sector and NACE classification

• financial history

• electricity consumption

• sites and meter arrangements

This stage helps identify potential eligibility issues before the full application begins.

2. Defining the Applicant and Qualifying Activity

The application must be made by the legal entity carrying out the eligible manufacturing activity.

Where a group has several companies, sites or operating structures, it is important to identify:

• which legal entity manufactures the qualifying product

• which entity employs the relevant staff

• which entity pays for the electricity

• which electricity meters support the qualifying activity

• whether any meters or networks are shared

Incorrectly defining the applicant at the outset can cause complications later in the process.

3. Gathering Financial Information

The financial information is used to assess the business-level electricity-intensity test.

Depending on the company’s trading history, this may include information from up to three relevant financial years.

The application may require evidence supporting:

• EBITDA

• staff costs

• accounting periods

• electricity expenditure

• total business electricity consumption

• published or management accounts

The appropriate reference period depends on how long the business has traded and the financial information available.

4. Gathering Electricity and Meter Information

The application must identify the electricity used by the business and the meter points connected with eligible manufacturing.

Information may include:

• meter-point details

• electricity bills

• supplier information

• total electricity consumption

• electricity generated on site

• electricity received through third parties

• shared-meter arrangements

• evidence of electricity used for eligible production

Government guidance requires evidence covering at least three months, although a longer period will normally be used where available.

5. Establishing the Eligible Electricity Percentage

Where all electricity passing through a meter is used by the applicant for qualifying production, the position may be relatively straightforward.

Additional analysis may be required where electricity is also used for:

• ineligible products

• offices or other activities

• third-party businesses

• shared facilities

• non-production purposes

The application must provide a reasonable and supportable method of determining the proportion attributable to the eligible activity.

6. Preparing the Application

The formal application consists of government-issued forms together with the required calculations, explanations and evidence.

A complete application may include:

• company information

• legal-entity evidence

• product and classification information

• financial calculations

• meter schedules

• electricity-use calculations

• supporting invoices and accounts

• descriptions of manufacturing activity

• declarations and authorities

Applications are currently submitted to the Department for Business and Trade using the prescribed forms.

7. Submission and Review

Following submission, the Department may ask for clarification or further evidence.

Questions can relate to:

• product eligibility

• accounting information

• calculation methodology

• electricity attribution

• meter arrangements

• changes in the business

• differences between the application and supporting documents

EII Advisory can manage these queries and provide further supporting explanations where required.

8. Certificate Issue

Where the application is approved, the business receives an EII certificate identifying the eligible meters and percentages.

The certificate should then be sent to the electricity supplier so the relevant exemptions can be implemented.

9. Network Charging Compensation

Once a valid certificate is in place, the business may also be able to register with Elexon and submit claims under the Network Charging Compensation Scheme.

This is a separate process and does not happen automatically following the issue of the EII certificate.

How Long Does an Application Take?

There is no single timetable that applies to every application.

The overall timescale can depend on:

• the complexity of the business

• the number of sites and meters

• the quality of the records available

• shared-electricity arrangements

• the need to apportion eligible and ineligible usage

• requests for further information

• the Department’s processing time

• supplier implementation after certification

Starting early reduces the risk of delays and periods without support.