Understanding the EII Certificate

An EII certificate is the formal document confirming that a business has been accepted as eligible under the Energy Intensive Industries exemption scheme.

It identifies the qualifying business, the relevant electricity meters and the proportion of electricity at each meter that is eligible for support.

The certificate is central to accessing the available EII benefits.

What Does the Certificate Cover?

A successful applicant may receive relief from the indirect cost of several government-supported electricity schemes, including:

• Contracts for Difference

• the Renewables Obligation

• small-scale Feed-in Tariffs

• the GB Capacity Market

The certificate may also enable the business to register and submit claims under the Network Charging Compensation Scheme.

A valid certificate is therefore not simply evidence that the business passed an eligibility test. It is the operational document used to access the relevant support.

What Information Appears on the Certificate?

The certificate normally identifies:

• the eligible legal entity

• the qualifying site or sites

• the relevant meter points

• the proportion of electricity eligible at each meter

• the certificate’s effective and expiry dates

The percentage may be less than 100% where a meter supplies:

• eligible and ineligible production

• another business

• non-qualifying areas or activities

The eligible proportion is based on the evidence provided within the application and may be updated where the underlying arrangements change.

How Is the Exemption Applied?

Once issued, the certificate should be provided to the relevant electricity supplier.

The supplier must then complete the required arrangements before the exemption can be reflected in the business’s electricity charges.

This process may not happen automatically, and businesses should confirm that the certificate has been received and correctly applied.

Where a business changes electricity supplier, the new supplier will need to establish the relevant arrangements again.

How Long Does an EII Certificate Last?

For an established beneficiary, certificates generally run from 1 July to 30 June of the following year.

A first certificate issued partway through the year normally takes effect on the day after issue and continues until 30 June of the following year.

Different rules may apply to certain new businesses with limited trading history.

Can a Certificate Cover More Than One Site?

Yes.

A certificate may cover several qualifying sites and electricity meters operated by the same eligible legal entity.

Separate certificates can also be requested for individual sites or meters where appropriate. Each meter’s eligible percentage will be determined separately using the supporting electricity and production information.

What Happens if the Business Changes?

The Department for Business and Trade should be informed where there are relevant changes, including:

• a change of legal entity

• a merger, acquisition or disposal

• a new electricity meter

• a change in meter-sharing arrangements

• a move to a different electricity supplier

• the introduction or removal of an ineligible product

• a site closure or mothballing

• a material change to the qualifying manufacturing activity

Some changes may require an updated certificate, revised eligible percentage or fresh supporting evidence.

The Certificate and Network Charging Compensation

A business must hold a valid EII certificate to participate in Network Charging Compensation.

The certificate must ordinarily have been valid for the whole of the month for which compensation is claimed. Compensation cannot normally be claimed retrospectively for periods before the certificate became valid.