ENERGY INTENSIVE INDUSTRIES EXEMPT SCHEME - (EIIS



UK - GOVERNMENT FUNDED SCHEME


Please refer to government web site below -


www.gov.uk.com 

ENERGY INTENSIVE INDUSTRIES EXEMPT SCHEME ENTITLES, UK COMPANIES, OF UP TO AN 85% EXEMPT ON CHARGES WITHIN YOUR CURRENT ENERGY TARIFF ON ANY RENEWABLE OBLIGATION, CONTRACTS WITH A DIFFERENCE AND FEED IN TARIFF CHARGES -

GEM ENERGY - For Business can take care of the full application process on behalf of prospective clients free of charge, please find application process below -

Application Process -

  • we will study your supply point data over a three year period but need at least twelve months for the purpose of the application process.
  • fill out your initial application form which includes general company information from address, contact details, NACE codes and signatures.
  • Fill out your second application form which is known as a 20% electricity intensity test, all energy data reviewed, entered and offset against your filed accounts to determine eligibility.
  • Once proposals are complete, submit all relevant paper work on your behalf, to the energy intensive industries exempt scheme government department, our in house contact.
  • Await confirmation from the EIIS government department for acknowledgement of enrollment.
  • Once the above has been confirmed we can enroll you on the energy intensive industries compensation scheme.
  • Once enrolled we will work out exempt amounts and arrange for them to be deducted from future invoices, reducing the cost of your operations considerably.
  • Finally we will present you with your qualifying certificate design your own energy intensive industry scheme spread sheet detailing all reductions and savings from the exempt payments ongoing and please remember once enrolled we will submit figures yearly so you can sit back and take advantage of these huge savings whilst being in safe hands under the GEM ENERGY - For Business Group portfolio, our general standards is that all our clients will be contacted at least once every six months for market updates and changes, please don't forget we are only a phone call away and always ready to serve you, our client.  

PLEASE READ ON FOR FUTURE GOVERNMENT PROPOSALS, THE ENERGY INTENSIVE INDUSTRIES COMPENSATION SCHEME - 

Moving from compensation to exemption from the costs of the Renewables Obligation and Feed In Tariff for energy intensive industries

What is the problem under consideration? Why is government intervention necessary? 

The Renewables Obligation (RO) and Feed In Tariff (FIT) are two of the policies that Government has put in place to incentivise the investment in low-carbon electricity generation. The costs of these schemes are borne by electricity bill payers. For energy intensive industries (EIIs), this can undermine competitiveness 

as businesses in other countries may not be subject to similar energy and climate change policy costs. The Government is seeking to lessen the cost disadvantage faced by EIIs as a result of energy and climate change policy costs relative to their EU and international competitors.

What are the policy objectives and the intended effects?

The objective of the policy is twofold. Firstly, to continue supporting energy intensive industries in order to maintain competitiveness for these industries by reducing the costs of the RO and FITs schemes. Secondly, to increase the effectiveness of this support. Making the proposed amendments to legislation to deliver an exemption from a proportion of the costs of the RO and FITs schemes provides increased certainty and real time 

support which in turn lowers production costs and maintains competitiveness of EIIs. It is intended that the compensation scheme for 2016/17 will move to an exemption scheme in 2017/18.

What policy options have been considered, including any alternatives to regulation? 

The policy seeks to ensure that the competitiveness of energy intensive industries is not undermined by higher electricity costs, compared with European and international competitors. Non-regulatory or nonspending options would not address this distortion sufficiently. The policy options considered are as 

follows: Do nothing: Continue with supporting energy intensive industries with a compensation scheme. Option 1: Move from compensation to implementing an exemption scheme through amendments to legislation. This provides an exemption from indirect costs of RO and FIT schemes, against up to 85% of electricity used by (1) businesses which pass a sector level and business level test, and (2) businesses which are direct competitors of the first group of businesses.

Description and scale of key financial costs by ‘main affected groups - SME BUSINESSES AND DOMESTIC DWELLINGS -

An exemption provided to industry will narrow the base of consumption from which total RO and FIT support costs are recovered, and therefore increase electricity costs for non-exempt households and businesses. The average total value of the exemption is £390m per annum for EIIs. Our estimate of the average annual impact on electricity bills to households and exempt businesses is set out in the table below. There will also be one-off and ongoing administrative costs for Ofgem and energy suppliers. 

Other key non-financial costs by ‘main affected groups -

Our analysis suggests that there will be a very small increase in the number of fuel poor households. For non-exempt businesses, which will experience an increase in their electricity costs, there may be an impact on their decisions on employment, output and investment. For some energy suppliers, there may also be an impact on their competitiveness.


Estimated increase on average bills by affected group in Great Britain, over 2017, this will increase even higher year on year if Energy Intensive Industries Compensation Scheme goes from compensation to full exemption -

                                                                                                                                            Low Estimate                          Best Estimate                         High Estimate


Average impact across all households -                                                  £3                                                         £5                                                         £8


Small business energy user -                                                                            £210                                                  £360                                                   £560


Medium-sized energy user -                                                                            £9,000                                          £15,000                                            £23,700


Large sized energy user -                                                                                  £84,000                                      £140,000                                        £221,000


CONTACT - GEM ENERGY - For Business - to discuss the energy intensive industries compensation scheme or if you are an effected, exempt SME or large business, ON - 01207 664 311, e mail us at [email protected]. or fill in our contact form below, making sure all of your details are correct :

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