Our goal is to purchase 100% Green Energy for 100% of our clients.
Energy Tax Relief is a scheme designed to reduce the energy costs for energy-intensive businesses and certain types of businesses in the UK. It allows eligible companies to claim reductions or exemptions on certain energy-related taxes, helping them remain competitive while promoting efficiency and sustainability.
The Climate Change Levy (CCL) is a UK tax applied to energy supplied to businesses and the public sector. It aims to encourage energy efficiency and reduce carbon emissions. Some types of energy use are exempt from the levy for example, energy used in metallurgical processes (such as steel and aluminium production) and mineralogical processes (such as cement and glass manufacturing).
Eligibility for CCL exemptions can be complex, but in general, they may apply to:
Energy used for certain forms of transport, metallurgical or mineralogical, domestic purposes, charitable organisations, non-business activities, agriculture and horticulture (e.g. greenhouses, crop drying), educational institutions (e.g. schools, colleges, universities) OR
Energy used in other qualifying sectors where energy is a critical part of the production process
Taxable commodity Rate
Electricity (£ per kilowatt hour (kWh)) 0.00775
Gas (£ per kWh) 0.00775
Rates are due to increase in April 2026 to 0.00801
CCL rates are charged separately on your energy bill
If you qualify for the ccl reduction due to industry type that qualifies then ceratin forms need to be filled out and sent to the inland revenue. In certain circumstances businesses can often claim back incorrect ccl charges up to 4 years.
EII stands for Energy Intensive Industries, “industrial sectors – usually manufacturing industries – that are high users of energy”.
The EII scheme is not technically a compensation scheme. Instead, it reduces renewable energy (electricity) related taxes by exempting eligible companies from having to pay by providing them with an exemption certificate.
These renewable energy schemes fund renewable energy generation (solar, wind, solar, hydro and nuclear power). There are three different schemes:
Contracts for Difference (CfD), Renewables Obligation (RO), Small-scale Feed-in Tariffs (FIT)
Most of the qualifying Energy Intensive Industries are from manufacturing industries, including:
Wood, Paper, Rubber, Glass, Plastics, Metal production, Metal casting and processing, Battery production, Malts, Grain milling, Chemical production, Fertiliser production, Ceramics, Cement, Refectory products, Animal feed and Poultry processing.
This new charge was introduced in April 2025, levied on non-EII (i.e. non-exempt) businesses to fund benefits for eligible EII companies.
The estimated rate of the ESL is between:
£0.90–£1.40 per MWh, which equates to £0.0009–£0.0014 per kWh
For example:
A business using 500,000 kWh (~500 MWh) could pay around £700 per year.
A business using 2,000,000 kWh (~2,000 MWh) might see a cost increase of £2,800 per year
Let’s look at two more examples:
50,000 kWh/year would pay approximately £45–£70/year, depending on the exact rate.
1,000,000 kWh/year would see a charge of approximately £900–£1,400/year.
If a business is eligible for the EII scheme (i.e., it manufactures in high-energy-use sectors and passes the 20% electricity intensity test), it may be exempt from ESL charges and can receive compensation.
Key benefits for eligible EII businesses:
100% exemption from indirect renewable energy-related costs (like CfD, RO, FIT, and Capacity Market charges) as of April 2024
60% compensation for network charging costs (TNUoS, DUoS, BSUoS) since April 2025, with compensation backdated to April 2024
A consultation is underway about increasing network compensation from 60% to 90%
If a business is eligible for the EII scheme (i.e., it manufactures in high-energy-use sectors and passes the 20% electricity intensity test), it may be exempt from ESL charges and can receive compensation.
If you think your business might qualify for either a ccl or eii reduction or rebate, we can review your situation and guide you through the application process.
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High Street, Coalport