What does EII mean?

EII stands for Energy Intensive Industries.

The term is used for industrial businesses whose competitiveness may be particularly affected by electricity and energy-policy costs. Government support is available to qualifying manufacturers to help reduce certain electricity costs and support international competitiveness.

What support is available?

Eligible businesses may benefit from exemptions from certain indirect electricity-policy costs, including Contracts for Difference (CfD), the Renewables Obligation (RO) and small-scale Feed-in Tariffs (FiT).

Qualifying Energy Intensive Industries may also access Network Charging Compensation (NCC), which provides compensation towards eligible electricity network charges.

Does having high electricity costs mean we qualify?

Not by itself.

A business must manufacture an eligible product within a qualifying industrial sector and satisfy the relevant business-level electricity-intensity test.

For the EII exemption arrangements, electricity costs must represent at least 20% of Gross Value Added (GVA) over the relevant assessment period.

Is eligibility based on our SIC code?

Not solely.

EII eligibility considers the actual manufacturing activity and products being manufactured, using the classifications specified within the scheme requirements.

A SIC code registered at Companies House should therefore not, by itself, be treated as confirmation that a business qualifies.

Can a business producing several products apply?

Yes.

A business manufacturing both eligible and ineligible products may still qualify. However, the proportion of electricity attributable to eligible production becomes an important part of determining the support available.

Businesses with multiple products, production processes or sites may therefore require a more detailed assessment.

Can a new business apply?

Potentially.

A new business will need sufficient financial and electricity-consumption information to demonstrate that the relevant eligibility requirements are satisfied.

Different assessment and certificate-duration arrangements can apply to businesses without a full established financial history.

What is an EII certificate?

An EII certificate is issued following a successful application and confirms the business's entitlement to the relevant exemption arrangements.

The certificate contains important information about the qualifying business, meters and eligible proportion and must be provided to the relevant electricity supplier before the exemption can be implemented.

What happens if we share a meter?

Shared-meter arrangements can require additional consideration.

The applicant will generally need to establish the electricity it consumes and the proportion attributable to eligible production.

Where another qualifying business uses electricity supplied through the same meter, that business would normally need to establish its own entitlement separately.

How much does EII Advisory charge?

We use fixed and capped fees agreed in advance.

Our pricing reflects the work involved rather than charging a percentage of the resulting financial benefit. This provides businesses with clarity over costs before work begins.

Does the exemption begin automatically?

No.

Once a certificate has been issued, it must be provided to the relevant electricity supplier so that the necessary arrangements can be implemented.

Businesses should ensure that the exemption has subsequently been applied correctly to their electricity arrangements.

Can one certificate cover several meters?

Yes.

An EII certificate can include multiple qualifying meters, potentially across different sites operated by the applicant.

Different eligible percentages may apply to individual meters depending on the activities and electricity consumption associated with them.

Do certificates need renewing?

Yes.

EII certificates are issued for a defined period. Businesses wishing to maintain uninterrupted support should therefore prepare and submit the appropriate renewal application before the existing certificate expires.

Eligibility may also need to be reassessed periodically depending on the business's circumstances and financial history.

Can office electricity qualify?

Eligibility depends on how electricity is supplied and used and whether it can appropriately be associated with eligible activity.

Not all electricity consumed by a qualifying business will necessarily attract the same level of exemption. Businesses with mixed manufacturing, office or other activities should therefore consider their particular metering and consumption arrangements.

What happens if we change electricity supplier?

The new supplier will need to receive the relevant EII certificate and complete the necessary implementation arrangements.

Businesses should make a new supplier aware of their EII status as early as possible and subsequently check that the exemption has been applied correctly.

What happens if the company restructures?

Changes such as mergers, acquisitions, disposals or changes to the legal entity can affect an existing EII position.

The Department for Business and Trade may need to be notified and the certificate may need to be amended, replaced or supported by additional information.

Businesses should consider the EII implications of a restructuring rather than assuming an existing certificate will automatically continue unchanged

What is BICS?

BICS stands for the British Industrial Competitiveness Scheme.

It is a new Government electricity-cost support scheme designed to reduce electricity costs for eligible manufacturers in Great Britain.

Support is due to begin in 2027, with applications for the first year opening in October 2026.

Who is eligible for BICS?

BICS is aimed at manufacturers operating within eligible frontier and foundational manufacturing sectors.

Eligibility considers a number of factors, including the business's manufacturing activities, relevant SIC and product classifications and electricity consumption.

Businesses should therefore not assume that operating within a broadly eligible industry automatically confirms entitlement.

Is BICS the same as the EII scheme?

No.

BICS and the existing Energy Intensive Industries support arrangements are separate schemes with different eligibility requirements.

BICS is intended to extend electricity-cost support to a considerably wider population of manufacturers that may not currently qualify for EII support.

What support will BICS provide?

Qualifying businesses are expected to receive exemptions from certain electricity costs associated with the Renewables Obligation, Feed-in Tariffs and Capacity Market.

Renewables Obligation and Feed-in Tariff relief is due to begin from April 2027, with Capacity Market relief following from October 2027.

The level of support available to an individual site will depend on the applicable scheme requirements and its eligible electricity consumption.

When can businesses apply for BICS?

The first BICS application window is scheduled to open on 1 October 2026 and close on 30 November 2026.

Businesses that believe they may qualify can begin reviewing their position in advance, including their manufacturing activities, classifications, products and electricity arrangements.

EII Advisory can support manufacturers with an initial BICS eligibility review and preparation for the application process.

EII Advisory can support businesses from the initial eligibility assessment through application, certification, implementation, renewals and ongoing scheme management.