Consultation outcome

Widening eligibility for renewable electricity cost relief schemes

• From: Department for Business, Energy & Industrial Strategy
• Published: 22 June 2018
• Last updated: 17 October 2019 — See all updates

This was published under the 2016 to 2019 May Conservative government

This consultation has concluded

Read the full outcome

Widening eligibility for renewable electricity cost relief schemes - government response

PDF, 625 KB, 39 pages

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Detail of outcome

Following consideration of responses to the consultation, the government has made the following decisions:

• the eligibility threshold for the exemption schemes will be maintained at the current 20% electricity intensity
• the aid intensity will remain at the current 85% level
• we will amend the relevant legislation to add the flour milling sector to the list of eligible sectors
• we will not redistribute monies recovered from over-exempted companies to other consumers. We will keep under review the amount recovered and publish this amount periodically
• we will implement the proposals set out in the consultation document on improving the operation of the exemption schemes

Detail of feedback received

We received a total of 58 responses to the consultation:

• 23 were from manufacturers (both eligible and ineligible for the EII exemption schemes)
• 16 from trade associations and industry bodies
• 12 from energy suppliers
• 7 from other sources (including Devolved Administrations, regulators, consumer organisations and other businesses)

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Original consultation

Summary

We're seeking views on whether to widen eligibility for energy intensive industries for exemption from the indirect costs of the renewable electricity support schemes.

This consultation ran from
9am on 22 June 2018 to 11:45pm on 7 September 2018

Consultation description

We’re seeking views on:

• whether there is evidence of potential competitive distortions as a result of the current eligibility threshold for the renewable electricity cost exemption schemes
• to what percentage should the current threshold of 20% electricity intensity be lowered – 17%, 15% or 10% - in order to address the distortions
• if the threshold is lowered, how to minimise the cost on non-eligible consumers.

The consultation also seeks views on related issues concerning:

• redistribution of money recovered from over-exempted EIIs
• improving operation of the exemption schemes

The consultation document is accompanied by an impact assessment setting out the bill and price impacts of the various options.

Documents

Energy Intensive Industries: relief from the indirect costs of renewable energy schemes - widening eligibility

PDF, 456 KB, 48 pages

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Widening eligibility for energy intensive industries: impact assessment

PDF, 395 KB, 27 pages

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Published 22 June 2018
Last updated 17 October 2019 + show all updates

1. 17 October 2019

   Government response added.

2. 22 June 2018

   First published.