From April 2025, a new charge—the Energy Intensive Industry (EII) Support Levy—will appear on electricity bills as part of the Network Charging Compensation (NCC) Scheme. This levy is designed to support energy-intensive industries by offsetting 60% of their network charges.
But what does this mean for Commercial Users?
What’s happening?
- All licensed electricity suppliers in Great Britain must contribute to this levy.
- These costs are expected to be passed down to businesses, impacting electricity bills.
- Suppliers have different approaches to cost recovery, meaning businesses could see these charges applied in various ways.
What to watch for:
- The charge may appear as an additional line item on your electricity bill.
- If you have a secured fixed supply agreement, some suppliers may include the EII Support Levy only in future renewal offers, while others may recover it through reconciliation within the current contract.
- Businesses on flexible and pass-through contracts might see these charges applied retroactively based on past consumption.
- If you switch suppliers, you might still receive invoices from your previous provider if they follow a different methodology.
What should businesses do?
- Keep an eye on supplier communications regarding the EII Support Levy.
- Review any new cost elements in contract renewals.
- Understand how your supplier plans to apply these charges to avoid unexpected costs.
With energy costs already a major concern for businesses, staying informed and planning ahead is crucial. At CES, we help businesses navigate energy pricing complexities and optimise procurement strategies.
If you need clarity on how this change could impact your business, contact us at [email protected]
