Is your business eligible for energy discounts under the new government schemes?
Ten years ago, the UK government introduced tax rebates and support schemes to help companies with large energy bills. The old schemes were due to end in the Spring of 2025, but the government has recently confirmed extensions and extra discounts with the new schemes.
These initiatives are part of the British Industry Supercharger package, which rewards consumers who endeavour to reduce their carbon footprint in line with UK climate goals.
So, depending on the makeup of your energy bills, these schemes could result in your energy supplier reducing many of the cost components on your energy bills, potentially halving your energy costs.
What are the schemes and what is their purpose?
Climate Change Agreements (CCA), Energy Intensive Industries (EII) and Network Charging Compensation (NCC) are initiatives introduced by the government to encourage carbon targeting, to make UK industries more competitive globally and to support high-skilled jobs.
What are the financial benefits of each scheme?
CCA (extended from March 2025 to April 2033) reduces carbon taxes for energy users by discounting 92% of the Climate Change Levy cost that are charged on all commercial gas and electricity bills for each kilowatt-hours (kWhs) you use.
EII (increased rebates from 85%) now provides 100% exemption from the renewable costs on the electricity bills, this includes the costs you would pay for Feed in Tariffs (FiT), Renewable Obligations (RO) and Contract for Difference (CfDs).
NCC (introduced March 2025 as an additional savings opportunity) reduces 60% of the distribution and GB network grid costs, which are shown as Distribution Use of System (DUoS) and Balancing Use of System (BSUoS) charges on your electricity bills.
How does my business qualify?
CCA applications are conducted on a site-by-site basis. To qualify, businesses must prove that 70% of the energy they use is for manufacturing their goods or providing their services.
EII qualification requires businesses from an energy intensive sector to pass the “EII Business Level Test”, which involves proving their electricity costs are more than 20% of the company’s Gross Value Added.
NNC is provided to all applicants that can show they have a government issued EII scheme certificate.
How can we help?
For companies who wish to explore these energy savings opportunities and be rewarded for their sustainability efforts, We are providing a series of interactive Energy Webinars in Spring that will explain how they work.
The Energy Webinars will be delivered alongside our strategic partners, ENERGYbubble and Integral Energy, who have worked in the industry for 30 years, and with us on government energy schemes for over a decade.
Our partners are also familiar with these schemes, with hands on experience implementing and managing CCAs and EIIs in their own manufacturing businesses since they were first introduced.
Why not join one of our webinars to learn more? Our next one is on 29 April 2025 or simply call 03450 682 572 to discuss any questions you have.
ENERGYbubble can tell you if your business qualifies for any of the above initiatives, what carbon targets to expect and what the savings from each scheme would be for your company. Simply get in touch and send across a copy of your current electricity and gas supply contracts to [email protected].
