BEIS’s proposals to widen the eligibility criteria for energy intensive industries (EIIs)

Consultation published which closes on 07th September 2018

BEIS have published proposals to widen the eligibility criteria for energy-intensive industries (EIIs) which would exempt more businesses from the indirect costs of renewable electricity support schemes.  The exemption is designed to improve competitiveness across Europe with renewable support schemes contributing to high energy prices in the UK.

Energy Intensive Industries are currently exempt from certain renewable energy support schemes and current criteria is based on 20% electricity intensity and is specific to certain industry types. The scheme offers exemption for up to 85% of:

  • Contract for Difference (CFD), effective from 31st October 2017
  • Renewable Obligation (RO), effective from 1st April 2018
  • Feed in Tariff (FITs), proposed for implementation on 1st April 2019

The consultation asks if the qualification threshold should be decreased to as low as 10% in order to address any possible market distortions.  It also asks that if it the scheme is widened to include more industrial businesses, how could the cost burden for non-eligible consumers be minimised?

The proposed timings of any change would be as follows:

  • CfD could not be implemented before April 2019
  • RO could not be implemented before April 2020
  • FiT date to be estimated if and when EII exemption is implemented in this scheme

The consultation closes on 7 September and can be found at the following link:

https://beisgovuk.citizenspace.com/im/widening-eligibility-for-eii-industries/