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British Industry Supercharger: What it means for Energy Intensive Industries
If your business is one of the most electricity-intensive manufacturers, the British Industry Supercharger scheme could reduce your electricity bills by up to 8 pence per kWh.
This guide explains the cost savings available to Energy Intensive Industries (EIIs), as well as how the scheme increases costs for all other domestic and non-EII businesses.
Here’s what we cover:
- What is the British Industry Supercharger?
- Why the British Industry Supercharger was introduced
- What the British Industry Supercharger covers
- How the British Industry Supercharger works
- Who is eligible for the British Industry Supercharger
What is the British Industry Supercharger?
The British Industry Supercharger is a UK government support package designed to reduce electricity costs for the country’s most energy-intensive manufacturers.
Launched on 1 April 2024 by the Department for Business and Trade, it reduces three specific cost elements on industrial electricity bills:
- Full exemption from environmental levies
- Full exemption from Capacity Market costs
- 90% (previously 60%) compensation for network costs
Currently 550 eligible Energy Intensive Industries (EIIs) that manufacture products such as steel, chemicals, glass, cement, paper and metals benefit from the scheme, saving an estimated £400 million annually.
Why the British Industry Supercharger was introduced
The British Industry Supercharger was introduced to address a long-standing competitiveness problem: Britain’s industrial electricity prices are among the highest in the developed world.
Expensive electricity puts manufacturers in sectors such as steel, chemicals, glass, cement and paper at a structural disadvantage compared with their European and global competitors, threatening jobs, investment and the viability of domestic production.
The government’s secondary concern was carbon leakage, the risk that energy-intensive production would relocate to countries with cheaper energy and weaker climate policies, taking emissions, jobs and economic output with it.
When the British Industry Supercharger was introduced and key dates
This section explains the key dates related to the introduction of the British Industry Supercharger scheme.
2023: Announcement and consultation
On 23 February 2023, an outline of the scheme was first announced by Kemi Badenoch, the Business and Trade Secretary in the then Conservative government.
The scheme aimed to reduce energy costs for an estimated 300 specific industrial companies.
Throughout the remainder of 2023, the government ran public consultations to determine the specific delivery mechanisms.
April 2024: Phase 1 exemption goes live
The British Industry Supercharger was officially launched on 1 April 2024, with 370 participants receiving a full exemption from the Contracts for Difference, Renewables Obligation and Feed-in Tariffs levies.
The Network Charging Compensation scheme also commenced on this date; however, payments to participants are made 12 months in arrears to allow Elexon time to collect the EII support levy from licensed suppliers to fund the scheme.
October 2024: Phase 2 exemption begins
Exempting EIIs from the Capacity Market supplier charge required additional legislation and alignment with the Capacity Market delivery year, which begins on 1 October each year.
This meant that the second phase of the British Industry Supercharger began on 1 October 2024, when participants started to benefit from exemption from the costs associated with the Capacity Market.
April 2026: NCC raised to 90%
Following consultations conducted by the new Labour government, it was decided that the British Industry Supercharger scheme would be enhanced by increasing the Network Charging Compensation from 60% to 90%.
For network costs incurred from 1 April 2026, the higher compensation rate of 90% applies. However, the compensation continues to be paid one year in arrears.
By April 2026, the number of participating EIIs had increased to 550.
What the British Industry Supercharger covers
The British Industry Supercharger provides three main measures of support, all designed to reduce participants’ electricity costs.
Exemptions from renewable energy levies
Eligible EIIs are fully exempted from the costs of the following three environmental levies:
- Renewables Obligation: the subsidy scheme for large-scale renewables that applied until 2017. Suppliers are obligated to purchase Renewables Obligation Certificates from participating generators.
- Contracts for Difference (CfD): since 2017, the CfD scheme has been the main subsidy mechanism for large-scale renewables. The scheme is funded by a supplier obligation levy.
- Feed-in Tariff (FiT): the FiT scheme is a subsidy for small-scale generators that applied between 2010 and 2019. Funding for participants continues to be shared among all electricity users.
Exemption from Capacity Market costs
The Capacity Market is a scheme operated by NESO, the national grid operator, to ensure there is always sufficient back-up power supply in the event of stress events such as plant closures, extreme weather and geopolitical disruption.
Generators that participate in the Capacity Market are paid to make back-up generation capacity available to the grid in the event of a shock. The scheme prevents older gas power plants from closing and leaving the market exposed to shocks.
The Capacity Market is funded through the Capacity Market supplier charge, which is paid by licensed electricity suppliers and added to both domestic and business electricity bills.
The rules of the British Industry Supercharger scheme exempt EII certificate holders from paying a share of the Capacity Market costs.
Network Charging Compensation scheme
The Network Charging Compensation (NCC) scheme compensates EIIs for a portion of the network charges they pay.
The network charges reimbursed through the NCC scheme are as follows:
- Transmission Network Use of System (TNUoS) charges: Charges for using the high-voltage national grid.
- Distribution Use of System (DUoS) charges: Charges for using the regional distribution networks (DNOs) that deliver electricity to local properties and businesses.
- Balancing Services Use of System (BSUoS) charges: Charges used to fund the grid operator’s role in maintaining balance on the grid.
Eligible EIIs are currently compensated for 90% of their network costs (previously 60%).
How the British Industry Supercharger works
This section explains how certified EIIs pay lower electricity costs under the British Industry Supercharger scheme.
The method of delivery is different for each element of the scheme.
Receiving electricity bills without the renewable energy levies
The renewable energy levies exempted under the British Industry Supercharger are all managed by the Low Carbon Contracts Company, which charges licensed suppliers based on the electricity consumption of all their customers.
The rules of the British Industry Supercharger scheme allow suppliers to avoid paying the environmental levies in relation to the consumption of certified EIIs.
This allows suppliers to offer EIIs a tariff that excludes the cost of renewable energy levies
Receiving electricity bills without the Capacity Market costs
Through a similar mechanism, the costs of the Capacity Market are passed to suppliers by the grid operator on the basis of the electricity consumption of all consumers.
The rules of the British Industry Supercharger scheme allow suppliers to avoid contributing to the Capacity Market in relation to the consumption of certified EIIs.
This means suppliers are able to offer large business energy tariffs to EIIs that exclude Capacity Market costs.
Receiving Network Charging Compensation
Unlike the other costs exempted by the British Industry Supercharger scheme, EIIs continue to pay network costs through tariffs with their business energy suppliers.
The costs are refunded separately by Elexon, the wholesale electricity market administrator, 12 months after they have been incurred.
Elexon funds the payments it makes under the NCC through the EII support levy.
Who is eligible for the British Industry Supercharger?
This section sets out the two key requirements for obtaining an EII (Energy Intensive Industries) Certificate.
The following data is based on the UK Government’s Energy Intensive Industries (EIIs) guidance.
The most recent government publications suggest that only 550 businesses in the UK currently meet these criteria and have been issued with EII certificates.
The sector level test
To be eligible for the EII certificate, an applicant must manufacture one of the following products:
| Description of activity | NACE Rev 2 Class |
|---|---|
| Mining of hard coal | 5.1 |
| Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate | 8.11 |
| Operation of gravel and sand pits; mining of clays and kaolin | 8.12 |
| Other mining and quarrying not elsewhere classified | 8.99 |
| Processing and preserving of poultry meat | 10.12 |
| Manufacture of grain mill products | 10.61 |
| Manufacture of prepared feeds for farm animals | 10.91 |
| Manufacture of malt | 11.06 |
| Preparation and spinning of textile fibres | 13.1 |
| Weaving of textiles | 13.2 |
| Manufacture of knitted and crocheted fabrics | 13.91 |
| Manufacture of carpets and rugs | 13.93 |
| Manufacture of non-wovens and articles made from non-wovens, except apparel | 13.95 |
| Manufacture of other technical and industrial textiles | 13.96 |
| Manufacture of other textiles not elsewhere classified | 13.99 |
| Manufacture of other wearing apparel and accessories | 14.19 |
| Manufacture of knitted and crocheted hosiery | 14.31 |
| Manufacture of other knitted and crocheted apparel | 14.39 |
| Tanning and dressing of leather; dressing and dyeing of fur | 15.11 |
| Sawmilling and planing of wood | 16.1 |
| Manufacture of veneer sheets and wood-based panels | 16.21 |
| Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials | 16.29 |
| Manufacture of paper and paperboard | 17.12 |
| Manufacture of corrugated paper and paperboard and of containers of paper and paperboard | 17.21 |
| Manufacture of household and sanitary goods and of toilet requisites | 17.22 |
| Manufacture of wallpaper | 17.24 |
| Manufacture of refined petroleum products | 19.2 |
| Manufacture of industrial gases | 20.11 |
| Manufacture of other inorganic basic chemicals | 20.13 |
| Manufacture of other organic basic chemicals | 20.14 |
| Manufacture of fertilisers and nitrogen compounds | 20.15 |
| Manufacture of plastics in primary forms | 20.16 |
| Manufacture of synthetic rubber in primary forms | 20.17 |
| Manufacture of man-made fibres | 20.6 |
| Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres | 22.11 |
| Manufacture of other rubber products | 22.19 |
| Manufacture of plastic plates, sheets, tubes and profiles | 22.21 |
| Manufacture of plastic packing goods | 22.22 |
| Manufacture of other plastic products | 22.29 |
| Manufacture of flat glass | 23.11 |
| Manufacture of hollow glass | 23.13 |
| Manufacture of glass fibres | 23.14 |
| Manufacture and processing of other glass, including technical glassware | 23.19 |
| Manufacture of refractory products | 23.2 |
| Manufacture of ceramic tiles and flags | 23.31 |
| Manufacture of bricks, tiles and construction products, in baked clay | 23.32 |
| Manufacture of other technical ceramic products | 23.44 |
| Manufacture of other ceramic products | 23.49 |
| Manufacture of cement | 23.51 |
| Manufacture of lime and plaster | 23.52 |
| Manufacture of plaster products for construction purposes | 23.62 |
| Manufacture of fibre cement | 23.65 |
| Manufacture of other non-metallic mineral products not elsewhere classified | 23.99 |
| Manufacture of basic iron and steel and of ferro-alloys | 24.1 |
| Manufacture of tubes, pipes, hollow profiles and related fittings of steel | 24.2 |
| Cold drawing of bars | 24.31 |
| Cold rolling of narrow strip | 24.32 |
| Cold drawing of wire | 24.34 |
| Aluminium production | 24.42 |
| Lead, zinc and tin production | 24.43 |
| Copper production | 24.44 |
| Other non-ferrous metal production | 24.45 |
| Casting of iron | 24.51 |
| Casting of steel | 24.52 |
| Casting of light metals | 24.53 |
| Casting of other non-ferrous metals | 24.54 |
| Manufacture of light metal packaging | 25.92 |
| Manufacture of electronic components | 26.11 |
| Manufacture of batteries and accumulators | 27.2 |
| Manufacture of other electronic and electric wires and cables | 27.32 |
| Manufacture of machinery for metallurgy | 28.91 |
Businesses that produce both eligible and ineligible products can apply for an EII Certificate, but only for the proportion of power consumed to produce the eligible product.
Eligibility for the British Industry Supercharger is limited to these industries that use large amounts of electricity and face international competition.
The UK government has committed to refreshing this list in 2026.
The business level test
To be eligible for an EII certificate, the business must demonstrate that electricity costs amount to 20% or more of Gross Value Added (GVA) on manufactured products.
Gross Value Added is the profit of the applying business before accounting for staff costs.
To allow direct comparison between industries, the applicant must apply a baseline electricity price, rather than actual costs, to the electricity consumed by the business.
Electricity consumption data must be supported by business electricity meters or sub-meter readings.
Electricity costs can include off-grid electricity consumption, including power consumed from commercial solar panels and CHP systems.
Other eligibility criteria
The Department for Business and Trade also applies the following additional criteria to applicants:
- Solvency: The business must be ongoing and not classified as an “Ailing or Insolvent Economic Actor” under the UK Subsidy Control Act.
- Financial data: At least three months of financial data must be available for new applicants.
- Location: The manufacturing site must be within Great Britain or Northern Ireland.
- Meters: Only electricity drawn from the grid through a half-hourly electricity meter is eligible for the cost exemptions. This excludes MPAN classes 03 and 04.
How much support is available through the British Industry Supercharger?
Based on the government’s consultation documents for the NCC uplift to a 90% discount, current EII support reduces the cost of electricity by 8 pence per kWh for British Industry Supercharger participants.
These savings come from the following components of the scheme.
Exemption from renewable energy levies: 5p/kWh
Composed of:
- Contracts for Difference – c.1p/kWh
- Renewables Obligation – c.3p/kWh
- Feed-in Tariff – c.0.7p/kWh
Exemption from Capacity Market costs: 0.5p/kWh
90% compensation for network costs: 2.5p/kWh
- BSUoS charge – c.1.3p/kWh
- DUoS charge – depends on time of day
- TNUoS charge – nil p/kWh
TNUoS charges are instead levied as a business electricity standing charge, through which EIIs also benefit from a significant reduction.
How businesses apply and confirm eligibility for the British Industry Supercharger
Participation in the British Industry Supercharger is established by obtaining an EII certificate from the Department for Business and Trade.
For businesses that believe they meet the criteria of the scheme, here is the step-by-step process for obtaining the EII certificate.
Complete the gov.uk application form
The application form for the British Industry Supercharger scheme is available on the gov.uk website.
The forms include:
- A Word document containing basic qbusiness information.
- A support Excel sheet capturing financial and electricity consumption data.
Provide supporting documentation
The application to the British Industry Supercharger scheme requires the following supporting documentation:
- Electricity bills for May and November of every relevant financial year covered in the application
- Full staffing cost data for the GVA calculation
- Financial statements consistent with those filed at Companies House
- An independent Accountant’s Report for larger applicants (the application can be submitted in advance of this, with the report following within six weeks)
- Evidence of electricity consumption used for the eligible product for at least three months, typically sub-meter data where available
- A signed certification of accuracy by an authorised director
The completed application form and evidence are submitted together via email to energyintensiveindustries@businessandtrade.gov.uk.
Review and approval of application
The Department for Business and Trade will conduct a review of the application. If successful, the department issues an EII Certificate specifying:
- The business name and address
- The exemption period (typically one year)
- The eligible electricity consumption (the proportion of the meter’s volume that qualifies)
- The exemption amount
Activate exemptions with energy supplier
The environmental levies and Capacity Market exemptions are activated by submitting the certificate to your business electricity supplier.
The supplier will then forward this to the Low Carbon Contracts Company (LCCC) so the consumption of the EII is excluded from the calculation of environmental levy charges.
Register separately for Network Charging Compensation
Once a business has obtained an EII certificate, they need to register on Elexon’s online portal to start obtaining Network Charging Compensation.
Does the British Industry Supercharger affect non-eligible businesses’ electricity costs?
Yes. The cheaper electricity bills received by certified EIIs are paid for through higher electricity costs for all other domestic and business users of grid electricity.
The following summarises the government’s guidance on the financial impact on non-EII businesses:
| Business type | Electricity annual consumption (MWh) | Size | 2025 electricity bill estimate | Impact of BIS scheme |
|---|---|---|---|---|
| Pub | 48 | Micro | £7,300 to £9,300 | £72 |
| Manufacturer | 2400 | Small | £270,000 to £370,000 | £3,600 |
| Retailer | 12 | Micro | £1,800 to £2,300 | £18 |
| Law firm (office based) | 96 | Large | £12,500 to £16,400 | £144 |
Source: gov.uk – Proposed uplift to the Network Charging Compensation Scheme for energy intensive industries (EIIs)
The impact of the British Industry Supercharger is difficult to avoid, because it is shared across all users regardless of supplier or tariff type.
However, at Business Energy Deals, we have helped thousands of businesses reduce their energy costs. Get started today using our business electricity comparison and business gas comparison services.
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