Energy reliefs explained
Reliefs and exemptions for energy intensive industries are increasingly topical following the increase in energy prices. Some industries can benefit from climate change levy exemptions or discounts if they meet certain requirements, and they can claim exemption from the cost of low carbon and renewable energy costs on their bills.
Reliefs available for energy intensive industries
The energy intensive industry exemption scheme allows qualifying businesses to claim exemption from green levies on their energy bills. The green levies are used to pay for support given to renewable energy generators through contracts for difference, renewables obligation, and feed-in tariffs.
If your business operates in any of the following industries, you may be eligible for energy relief:
- Food, drink and animal feed processing and production
- Manufacture of textiles
- Sawmills and production of wood-based products
- Manufacture of paper, paperboard and paper-based products
- Manufacture of chemicals, fertilisers, and petroleum products
- Manufacture of plastic, rubber, and plastic or rubber products
- Manufacture of glass and refractories, and glass or refractory products
- Mineralogical processes, including mining and quarrying
- Metallurgical processes, including production and processing of metals and manufacture of some metal products
Our team of experts can advise you if your business is eligible for certain reliefs. They can also help you with collecting data and completing the application forms.
Contact Evelyn Partners
If you have any queries about energy reliefs and your eligibility, call one of our team now.
Frequently asked questions about energy reliefs
How can businesses apply for relief for an energy reliefs?
To claim climate change levy exemptions and discounts, you need to complete two forms for each meter point:
- Form PP10 which calculates the amount of relief due and is then sent to HMRC
- Form PP11 which has the relief percentage transferred from the PP10 and is sent to the energy supplier. The energy supplier then applies the relief directly to your bills.
To apply for relief under the energy intensive industry exemption scheme, you have to fill out a detailed application and send it to the Department for Business, Energy & Industrial Strategy (BEIS).
We can help you complete these applications and deal with any resulting enquiries.
What criteria does a business need to meet to qualify for energy relief?
The first primary criteria to qualify for relief is to be carrying out an eligible activity. Some of the climate change levy exemptions and all of the energy intensive industry exemptions are governed through the use of Nomenclature of Economic Activities (NACE) codes.
The second key criteria for energy intensive industry exemptions is that the business should pass the energy intensity test, which requires that standardised electricity costs represent at least 20% of an adjusted profit measure.
For climate change levy discounts, eligible businesses also have to join, and comply with, a climate change agreement, which is an agreement between their sector association and the Environment Agency with targets for improvement of energy efficiency and reduction of carbon emissions.