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Energy Intensive Industries are businesses that use a lot of energy to manufacture their products that get an exemption for certain levels of energy charge items – companies have to apply to the Government to be granted this status.
The Network Charging Compensation Scheme is part of a package of government measures to help Britain’s Energy Intensive Industries (EIIs) remain competitive in the global market.
EIIs submit the costs to Elexon that they have incurred for relevant network costs from their supplier, and then are compensated by Elexon for 60% of the total amount applied for. This includes Transmission Network Use of System, Distribution Use of System and Balancing Services Use of System charges.
These costs are then passed onto suppliers as the EII Support Levy, this will be a monthly invoice from April 2025 (+ credit cover and reserve fund requirements).
We price the EII Support Levy in Shield contracts, for our customers on these products there will be no additional charge line items on the invoices.
For customers on pass-through products, SEFE will bill an EII Support Levy £/MWh rate and an EII Operational Cost Levy £/MWh rate from Apr25 consumption against NBP volumes. EII exempt volumes will not be charged these rates.
