Energy Intensive Compensation Scheme
Tuesday, 29 August 2017
RO / Small Scale FiTs Compensation
Energy Intensive Industry business can potentially qualify for substantial refunds for your RO (Renewables Obligations) and FIT (Feed-in-Tariff) charges.
What is it all about?
As part of the UK government’s approach to decarbonise energy - incentives were given to generate electricity from renewable sources in the form of RO and FITs. This resulted in the increase in retail electricity prices which risks reducing the competitiveness of the UK’s most electricity-intensive businesses operating in international markets.
As a result, the UK Government has committed to implement compensation for the impact of renewables policy on the costs of electricity for the most electricity intensive industries.
Compensation of up to 85% on RO and FIT charges could be paid out to eligible companies.
Who could be eligible for a refund?
• Businesses that manufacture a product in the UK within an eligible sector (NACE Code specific)
• The business (aggregated business level – whole legal entity) must pass the electricity intensity test.
How & when will compensation be paid?
Following application approval and receipt of the quarterly declaration BIS (Department for Business, Innovation & Skills) will make payment directly into the business’s bank account.
Will I see any changes to the cost of my electricity bills?
No, businesses will continue to pay the charges as usual. BIS will refund amounts through the scheme.
What is a typical benefit?
An eligible business consuming 7,000,000 kWh was refunded £89,250. The equivalent of 1.275p/kWh.
For guidance by Department for Business, Energy & Industrial Strategy click on the following link:
https://www.gov.uk/government/publications/renewables-obligation-and-small-scale-feed-in-tariffs-apply-for-compensation
https://www.gov.uk/government/publications/renewables-obligation-and-small-scale-feed-in-tariffs-apply-for-compensation
More information and advice
For more information please contact:
LG Energy Group
12th Floor, City Tower, Piccadilly Plaza, Manchester, M1 4BT
Tel: +44 161 401 1001
E: [email protected]
Web: www.lgegroup.com
