Energy Intensive Industries Support Levy (EII SL) costs explained
The information in this video and article was accurate as of 1 April 2025. We update our TPCs Explained hub every Spring to reflect any changes.
What’s the Energy Intensive Industries Support Levy (EII SL)?
The Energy Intensive Industries Support Levy (EII SL) provides EIIs – such as steel, cement, chemicals, glass, paper and related sectors – with 60% relief on network costs. It came into effect in April 2025 and was formerly known as the EII Network Charging Compensation Scheme.
It pays for 60% of the transmission network, distribution and balancing services use of system charges (TNUoS, DUoS, and BSUoS respectively) faced by the EIIs that apply for the exemption. In addition, it covers 60% of their losses.
From 2026, the relief is increasing to 90%, following the release of the government’s Modern Industrial Strategy in June 2025.
It aims to keep EII’s energy costs competitive with European counterparts and to reduce the risk of carbon leakage (relocating to regions with looser energy rules).
How does the EII SL work?
From April 2025, all licensed electricity suppliers in Great Britain are charged a monthly levy based on the amount of electricity they supplied the year before. The more electricity the supplier delivers, the more levy they pay.
Elexon (the electricity market administrator) then uses the levy fund to pay monthly rebates to eligible EIIs. Suppliers recover the levy from non-EII customers.
How much of your energy bill does the EII SL account for?
The EII SL will cost nothing to EIIs. The cost of the discount is covered by other users on the system – although it’s expected to equate to just 0.5% of a standard bill. However, the type of customer, location, and consumption will affect the proportion.
How are EII SL costs recovered?
EII SL costs are recovered by charging electricity suppliers, which then pass these costs on to their non-EII customers. The charge is recovered on a volumetric £/MWh basis.
EII-eligible businesses that are registered and approved don’t pay the levy on the portion of their usage that’s compensated.
Will you know about EII SL costs in advance?
Although costs aren’t published in advance, the total costs that EIIs have applied for in any one month are available via the Elexon website.
What are the drivers for this charge?
The three main EII SL price drivers are:
- Network costs
- The proportion of eligible EIIs applying for the rebate
- Changes in consumption by EIIs and in the broader demand base
To learn more about the other TPCs in your energy bill, head to our TPCs explained hub using the button below. Or, to understand more about electricity prices, download our latest bi-annual Electricity Prices Explained guide.
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