Consultation outcome

Energy-intensive industries: exemption from indirect costs of the Contracts for Difference scheme

This consultation has concluded

Download the full outcome

Detail of outcome

Following the responses to the consultation we will bring in amended regulations introducing an exemption for the costs of Contracts for Difference (CFD).

We’re still considering options to recover over-exemptions. We will respond to this at a later date. In the interim, recovery, but not redistribution, will be possible under generally applicable law.

For more information see the Government response above and the technical note on electricity supply estimates.

The Draft guidance above has now been finalised and published:

Guidance for applicants seeking a certificate for an exemption from a proportion of the indirect costs of funding Contracts for Difference (CFD)

Detail of feedback received

We received responses from 46 organisations, including:

  • businesses
  • trade associations and representative bodies
  • energy suppliers and providers
  • government
  • regulators

Original consultation


We’re seeking your views on proposed changes to the regulations covering energy-intensive industries (EIIs).

This consultation ran from

Consultation description

We’re proposing changes to the regulations that underpin the exemption of energy-intensive industries (EIIs) from indirect costs of the Contracts for Difference (CFD) scheme. We’re also consulting on options to recover over-exemptions from the indirect costs of the CFD, Renewables Obligation and Feed-in-Tariffs schemes.

Without intervention, there is a risk that EIIs face significant rises to their energy bills, placing them at a serious competitive disadvantage.

We’re seeking views from:

  • legal and regulatory specialists
  • trade associations
  • energy intensive industries
  • energy suppliers and providers
  • others with an interest in the UK energy infrastructure


Published 22 July 2016
Last updated 20 November 2017 + show all updates
  1. Link to final version of guidance added.
  2. Added consultation outcome and draft guidance.
  3. First published.