Energy Intensive Industry (EII) Levy
Not a business? Go to our British Gas residential website.
In this article
What are Energy Intensive Industries (EIIs)?
Energy Intensive Industries (EIIs) are sectors that heavily rely on energy for production. Examples include steel, paper, plastics, and quarrying. Due to their high energy consumption, EII consumers often face significantly high energy costs.
What is the EII Levy?
To help keep costs competitive and improve energy efficiency, EII consumers don’t pay renewable levy costs or some network costs. These exemptions are funded by the EII Levy, which non-EII consumers pay through their unit rates.
How is the EII Levy charged?
We collect the EII Levy from all non-EII electricity business customers through your unit rate and pay it to HM Revenue and Customs.
Which businesses qualify as an EII?
To qualify as an EII, businesses must meet the following criteria.
- Carry out one of the activities the government deems to be eligible
- Show that their electricity costs account for 20% or more of their Gross Value Added
- Provide at least two quarters of financial data
- Submit an application form for EII exemption with evidence of electricity usage for manufacturing over a minimum of three months
