A number of policies have been developed to increase the share of electricity generated from renewable sources. Specifically the government has put in place the Contracts for Difference (CFD) scheme, amongst other schemes, to incentivise renewable energy supplied through the National Grid. The costs of funding the CFD scheme are recovered through levies on suppliers and these are ultimately passed on to domestic and industrial consumers’ bills.
The government recognises that, in the short to medium term, the resulting increase in retail electricity prices risks reducing the competitiveness of the UK’s most electricity-intensive businesses where they are operating in internationally competitive markets. To address this, the government has developed an exemption scheme to exempt those energy intensive industries whose competitiveness may be most at risk. The document provides guidance for those businesses applying for a CFD exemption.
Please use the forms available on the Contract for Difference exemption, and Renewables Obligation and small scale Feed-in Tariffs compensation: application forms page to apply for the exemption.
Read the consultation and government response:
Energy-intensive industries: exemption from indirect costs of the Contracts for Difference scheme.