What is the Energy Intensive Industries (EII) Scheme?

The Energy Intensive Industries (EII) Scheme is a UK Government initiative designed to help eligible manufacturers reduce the cost of electricity.

Energy costs remain one of the largest operating expenses for many manufacturers. Businesses that compete internationally can be placed at a disadvantage if electricity prices in the UK are significantly higher than those faced by overseas competitors.

To help address this, the Government introduced a number of support schemes that reduce or compensate for certain electricity costs for businesses that meet the relevant eligibility criteria.

At EII Advisory, we specialise exclusively in helping manufacturers understand these schemes, determine their eligibility and manage successful applications.

Why does the EII Scheme exist?

Many UK manufacturers operate in highly competitive global markets where energy represents a significant proportion of production costs.

Government environmental and renewable energy policies have historically increased electricity prices. While these policies support the UK's transition towards net zero, they can place additional financial pressure on energy-intensive sectors.

The EII schemes were introduced to help eligible manufacturers remain internationally competitive by reducing some of these additional electricity costs.

The aim is to support investment, safeguard jobs and encourage manufacturing to remain within the UK rather than relocating overseas.

Who can qualify?

Eligibility depends on a number of factors, including both the activities carried out by the business and the products it manufactures.

Although every application is assessed individually, businesses generally need to demonstrate that they:

  • Manufacture qualifying products listed within the Government regulations.

  • Meet the relevant electricity intensity requirements.

  • Can provide suitable financial and operational evidence to support the application.

The schemes are available across a wide range of manufacturing sectors including, for example:

  • Steel

  • Chemicals

  • Paper

  • Glass

  • Ceramics

  • Cement

  • Food manufacturing

  • Industrial gases

  • Plastics

  • Metals

Many businesses are surprised to discover that they may qualify even if they have never previously explored the schemes.

If you're unsure whether your business is eligible, we offer a FREE Eligibility Assessment.

What are the benefits?

For eligible businesses, the financial benefits can be significant.

Depending on the scheme and the level of electricity consumption, support may reduce ongoing electricity costs by thousands—or, in many cases, hundreds of thousands of pounds each year.

The three principal schemes currently available are:

  • Energy Intensive Industries (EII) Exemption

  • Energy Intensive Industries (EII) Compensation

  • Network Charging Compensation (NCC)

Each operates slightly differently but all aim to reduce the overall cost of electricity for eligible manufacturers.

Speak to an EII Specialist

If your business has significant electricity costs and operates within the manufacturing sector, it may be worthwhile exploring whether the EII Exemption Scheme could reduce those costs.

Our consultants are happy to discuss your circumstances, answer your questions and explain how we can support your organisation throughout the process.

Request your FREE Eligibility Assessment today and discover whether your business could benefit from the Energy Intensive Industries (EII) Exemption Scheme.