Energy Tax Incentives
Unlock Energy Tax Savings
Is your organisation paying more than necessary for energy? Many businesses are unaware that their electricity bills include automatic energy taxes. However, substantial tax relief programmes exist to help offset these costs, particularly for companies with high energy usage.
For businesses operating in energy-intensive sectors, significant cost reduction opportunities are available through targeted relief programmes. To access these benefits, your company must satisfy specific criteria set out by HMRC and the Department for Business and Trade (DBT). The qualification process includes a comprehensive evaluation of your organisation’s historical energy consumption patterns and sector-specific requirements.
Available energy incentives
Our dedicated Energy Tax specialists provide end-to-end consulting services to maximise your tax relief entitlements. We handle the complete claims process, from initial assessment through final submission, while managing all administrative requirements, ensuring you receive the maximum available benefit with minimal disruption to your operations.
Energy Tax Incentives
- Climate Change Levy (CCL) →
- Energy Intensive Industries (EII) Tax Incentive →
- UK ETS (Emissions Trading Scheme) →
- Network Charging Compensation Scheme
We help you identify, explore and claim energy tax incentives.
We offer a range of services to help companies obtain relief on their energy bills by applying for compensation or exemptions to significantly reduce the cost of energy.
01.
Energy scheme identification
We will help you identify which energy scheme (Climate Change Levy (CCL), Energy Intensive Industries (EII), UK ETS Compensation Scheme) you are entitled to claim.
02.
Claim compilation
We will prepare the claim reports in compliance with the legislative framework and guidance to ensure your claim is fully justified and calculated correctly.
03.
Ongoing Support
Once your claim has been submitted, we will follow this through to completion and will assist with producing the quarterly and annual reporting as necessary.
Climate Change Levy (CCL)
The Climate Change Levy is a UK tax on energy supplies that aims to incentivise lower carbon emissions. However, many businesses are unaware that they may qualify for significant tax relief / exemptions, particularly if they operate in energy-intensive industries.
Key points about CCL tax relief:
- Rebate of CCL paid in the last 4 years on qualifying processes / activities.
- Exemptions available for mineralogical and metallurgical processes.
- Special considerations for transport businesses using low-carbon fuels.
Our dedicated Energy Tax team provides comprehensive consultation and guidance to ensure you receive the maximum financial benefit you’re legally entitled to. Contact us to help you determine if your business qualifies for CCL tax relief.
Energy Tax Incentives
Energy Intensive Industries (EII)
The EII Relief scheme is a game-changer for high-energy-using industries in the UK. This government-backed initiative is designed to level the playing field, helping businesses like yours stay competitive against international rivals with lower energy costs.
Key benefits of EII Relief:
- Up to 85% exemption on indirect costs related to renewable energy policies.
- Applies to Contracts for Difference (CFD), Renewables Obligation (RO), and Feed-in Tariff (FiT).
- Discounts applied directly to your electricity bills.
We specialise in guiding businesses through the complex EII Relief application process. Our expertise can make a crucial difference in securing this valuable exemption. Eligibility for EII Relief is based on several factors, including:
- Operating in an eligible sector.
- Passing a 20% electricity intensity test.
- Meeting specific financial and operational criteria.
To help you understand if your business might qualify, contact our dedicated Energy Tax team who will give you a quick indication of your potential eligibility.
Energy Tax Incentives
UK ETS (Emissions Trading Scheme)
The UK Emissions Trading Scheme (UK ETS) has been a key part of the UK’s climate change policy for over a decade. While it’s crucial for reducing carbon emissions, it can impose substantial costs on energy-intensive businesses. That’s where the UK ETS Compensation Scheme comes in.
Key points about UK ETS Compensation:
- Designed to mitigate the economic impact of carbon trading on energy-intensive industries.
- Helps maintain competitiveness for businesses in the global marketplace.
- Eligibility criteria similar to EII Relief, with an additional assessment of carbon leakage risk.
We provide expert guidance to ensure businesses meet compliance requirements while optimising tax benefits under the UK ETS. Your business may qualify if you meet these key criteria:
- Meet minimum electricity intensity requirements (>5% of production costs)
- Operate in qualifying manufacturing/industrial sectors, identified by specific SIC codes.
- Can demonstrate electricity consumption directly linked to production output
To help you understand if your business might qualify, contact our dedicated Energy Tax team who will give you a quick indication of your potential eligibility.
Energy Tax Incentives
Network Charging Compensation (NCC) Scheme
The Network Charging Compensation scheme provides substantial financial support for Energy Intensive Industries (EIIs), offering up to 60% compensation on electricity grid usage costs across the UK.
Key benefits of NCC Relief:
- 60% Direct Savings Immediate reduction on all network charges (TNUoS, DUoS, BSUoS).
- Applies to all major network charges: Transmission Use of System (TNUoS), Distribution Use of System (DUoS), and Balancing Services Use of System (BSUoS) charges.
- Cost Recovery Potential backdated claims for historical network charges.
Our expert team will guide you through the Network Charging Compensation application process to help secure your relief entitlement. Your business may qualify if you meet these key criteria:
- Hold a Government-issued EII Exemption Scheme certificate
- Product must fall within eligible sector (4-digit NACE code classification)
- Electricity costs ≥ 20% of Gross Value Added during reference period
- Meeting specific financial and operational criteria.
To help you understand if your business might qualify, contact our dedicated Energy Tax team who will give you a quick indication of your potential eligibility.
Energy Tax Incentives
The CCL, EII, UK ETS and NCC incentives can provide a comprehensive approach to managing your energy costs. Here’s how these three schemes work together:
- CCL Relief: Reduces your Climate Change Levy payments
- EII Relief: Provides exemptions on renewable energy policy costs
- UK ETS Compensation: Mitigates the impact of carbon trading costs.
- Network Charging Compensation: Recover costs for accessing electricity from the grid.
To help you understand the full potential of these combined schemes for your business, we’re offering a comprehensive energy tax review. This personalised assessment will:
- Evaluate your eligibility for all four schemes.
- Estimate potential savings based on your specific situation.
- Provide a roadmap for claiming all applicable reliefs and compensations.
Don’t miss out on these valuable opportunities to reduce your energy costs and enhance your competitiveness. Book your review today and let us help you navigate the complex world of energy taxation.
How we work
We believe in efficiency and maximising our resources to provide the best value to our clients. The primary way we do that is by understanding every single scheme we approach and have worked on for the past decade.
/01
Eligibility Assessment
Through a comprehensive assessment process, we analyse your operations and energy usage data to determine eligibility across all available energy incentives by evaluating electricity consumption, production volumes, financial data and sector classification.
/02
Claim Assessment & Application
We conduct a thorough analysis of your energy consumption data and operational records to build a comprehensive claim and incorporate this into a detailed application package that aligns with current scheme requirements to ensure smooth processing of the application.
/03
QA & Submission
Before submission, your application undergoes rigorous quality assurance checks to ensure accuracy and completeness. Once verified, we manage the complete submission process, including liaison with relevant authorities and tracking application status.
/04
Ongoing Support
Following successful application approval, we provide continuous support to maintain your compliance and maximise benefits. This includes monitoring scheme updates, managing quarterly/annual reporting requirements, and preparing subsequent claims.
Energy-intensive businesses may be eligible for significant tax relief against their energy costs through government incentive schemes. These programmes help organisations manage rising energy expenditure while maintaining competitiveness. Through our expertise, we guide companies through HMRC and DBT eligibility requirements to secure appropriate relief levels. Our specialists ensure your business maximises available benefits while maintaining full compliance with current regulations.