What is the EII support levy?
In February 2023, the UK government announced the British Industry Supercharger (BIS). This aims to make Britain’s energy intensive industries (EIIs) more cost competitive in Europe. BIS will address areas of the energy system which contribute to higher electricity costs for EIIs than other countries.
One of the ways BIS aims to do this is through the Network Charging Compensation (NCC) scheme and EII Support Levy. The NCC scheme will allow EIIs to claim back 60% of certain third party costs from government. This will be funded by the new levy on other end users.
The EII support levy will apply to all customers who are not eligible for the exemption.
How will this effect customer bills?
Customers with contracts that pass through third party costs will see the EII support levy on their bill from May 2025. This charge will be an estimated monthly cost that we’ll reconcile quarterly.
We will reconcile costs against the previous year’s energy usage. For example, energy used in June 2024 will determine the cost of the EII support levy in June 2025. As such, customers will see a monthly EII support levy, and a quarterly reconciliation, on their bill.
The table below shows how this reconciliation will work:
If you have any questions about the EII support levy, you can get in touch using the contact details on your bill. We’re always happy to help.