The British Industry Supercharger: Is Your Business Eligible for the EII Exemption?

The British Industry Supercharger can remove up to 100% of key policy levies and 90% of network charges for energy-intensive businesses. We explain what the EII exemption covers, who qualifies and how to claim.

The British Industry Supercharger

The British Industry Supercharger – If your business is energy-intensive, in manufacturing, chemicals, glass, paper, metals, cement or similar, there is a government scheme that can strip a substantial chunk off your electricity costs. It is called the British Industry Supercharger, and many eligible firms still are not claiming everything it offers.

What the Supercharger Covers

Launched on 1 April 2024, the British Industry Supercharger is a package of relief for eligible energy-intensive industries (EIIs). It has three main parts.

First, up to 100% exemption from the Renewables Obligation, Feed-in Tariff and Contracts for Difference levies, three of the largest policy costs on an electricity bill. Second, full exemption from Capacity Market charges, the levy that funds security of supply over winter. Third, Network Charging Compensation, under which eligible network charges attract 90% compensation for costs incurred from 1 April 2026, up from 60% previously.

Taken together, these cover some of the biggest items in the non-commodity part of an electricity bill. For a qualifying high-usage site, the saving is genuinely material, which is why understanding the wider make-up of your bill through our guide to non-commodity costs is a useful starting point.

Who Qualifies

Eligibility is tightly defined. Broadly, your business must operate in an eligible sector, defined by industrial classification codes, and pass a business-level electricity intensity test, meaning electricity costs must make up a significant share of your gross value added. If you meet those tests, you apply for and hold an EII certificate, which is the key that unlocks the reliefs.

By April 2026 around 550 businesses held EII status, and the number continues to grow as more firms work through the eligibility criteria and realise they qualify. The government’s approach to the network element is set out in its consultation on the Network Charging Compensation scheme uplift for energy-intensive industries.

How to Claim

Certification is applied for through the government scheme. The Network Charging Compensation element is administered via a quarterly application process, so timing matters: miss a window and you wait for the next one before compensation applies. It pays to have your paperwork and your consumption data in order well ahead of each deadline.

This is detailed, evidence-heavy work, and it sits naturally alongside the kind of bill validation and cost analysis we already do for large users through our non-commodity cost reporting. Getting the underlying consumption and cost data right is also the foundation of buying well, which is where our wider energy procurement support comes in.

Is It Worth Checking?

If electricity is a big part of your cost base and you operate in a qualifying sector, the answer is almost certainly yes. The reliefs are among the most valuable available to industrial energy users, and the network compensation rate has just increased. Even businesses that assume they are “not heavy enough” are sometimes eligible once the intensity test is worked through properly, so it is worth a proper look rather than a quick assumption.

What This Means for Your Business

For energy-intensive businesses, the British Industry Supercharger can remove a large share of the policy and network costs that make up the majority of an electricity bill. The exemptions and compensation are significant, the eligibility criteria are specific, and the number of businesses benefiting is rising. The risk is not the scheme being unavailable; it is eligible firms simply not claiming, or not claiming everything they are entitled to.

If you are not sure whether you qualify, or whether you are claiming the full relief available, our team can check your eligibility and make sure the exemptions are applied. Get in touch to speak to one of our energy consultants today.

Chris Hurcombe
Chris HurcombeDirector, Catalyst Digital Energy

Chris Hurcombe is Director of Catalyst Digital Energy, an independent business energy consultancy based in Birmingham. He works with UK businesses on energy procurement, contract management, and carbon strategy, and writes on energy markets, compliance, and the commercial implications of the UK's net zero transition.

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