Energy intensive industries (EIIs) Support Levy
Energy intensive industries (EIIs) in the UK face a significant competitive disadvantage due to having the highest industrial electricity prices in Europe, despite existing government support. UK EIIs pay approximately £56/MWh for electricity, while their Dutch counterparts pay around £38/MWh.
This difference is primarily driven by historical UK policy costs, including the capacity market, network charges, and levies supporting renewable and low-carbon electricity generation. These high electricity costs severely impact the profitability of EIIs, making it difficult for them to compete globally. To address this, the UK government is implementing the Energy intensive industries support levy.
What is the aim Energy intensive industries (EIIs) Support Levy?
This legislation aims to enhance the competitiveness and profitability of EIIs by providing a 60% reduction on their network charging costs, provided by all licensed GB electricity suppliers. This direct reduction in electricity expenses is expected to significantly improve businesses bottom line and competitiveness.
To qualify for this support, businesses must operate in an eligible sector (such as steel, chemicals, and refining) and have an electricity intensity of at least 7%. This ensures the support is targeted at industries most affected by high energy costs.
Stadia Utilities:
Stadia Utilities can further support your businesses with understanding the support levy. We can offer your business a free utility health check, identifying areas for improvement, helping you to save costs and find the best utility deals. Contact a member of our team here to find out more.
