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Contracts for Difference, renewables obligation and small scale feed-in tariffs: apply for an exemption or compensation

How to apply for an exemption or compensation for a proportion of the indirect costs of funding the Contracts for Difference, renewables obligation and small scale feed-in tariffs.

Documents

Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 1)

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Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2)

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Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: quarterly declaration

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Details

A number of policies have been developed to increase the share of electricity generated from renewable sources including the renewables obligation, feed-in tariffs and Contracts for Difference. The costs of funding these schemes are recovered through levies on suppliers and 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 providing relief to some energy intensive industries (EIIs) whose competitiveness may be most at risk, for a proportion of the indirect costs of funding low carbon schemes.

June 2020 update

We’ve updated the guidance for businesses applying for relief from a proportion of the indirect costs of the Renewables Obligation (RO), Contract For Difference (CFD) and small-scale Feed In Tariffs (FIT). This includes:

  • adding the manufacture of grain milling products to the list of eligible sectors, following a consultation and updated regulations
  • improvements to the running of the scheme, clarifying some elements of the existing guidance and removing the automatic requirement for an Independent Accountant’s Report

How to apply

To apply for an exemption or compensation, download the application forms and compensation calculation spreadsheets. Email your completed forms to energyintensiveindustries@beis.gov.uk.

See the list of companies awarded compensation.

Published 19 January 2016
Last updated 11 June 2020 + show all updates
  1. Exemption guidance updated - manufacture of grain milling products added to the list of eligible sectors, and removing the automatic requirement for an Independent Accountant's Report.

  2. Exemption guidance and application form part 2 updated, to clarify the eligibility of UK applicants who have used electricity overseas or for non-UK production.

  3. Guidance and application form (part 1) updated.

  4. Documentation updated as a result of European Commission approval to move from FIT compensation to FIT exemption.

  5. August 2018 update to guidance.

  6. The renewables obligation has moved to an exemption and we have updated the guidance which previously applied only to Contracts for Difference. This guidance is effective from 1 April 2018.

  7. Updated application forms

  8. Updated guidance and forms added.

  9. Minor alterations to the application form (part 2) to ensure the regulations and the form are consistent.

  10. Updated application form.

  11. Updated application form (part 2) with new quarterly returns tab, adjusted application tab and other updates. Updated guidance document to reflect changes.

  12. Added the terms of engagement and proposed form for accountants’ reports (annexes B and C).

  13. First published.