ETII: New energy bill support for local authorities and visitor attractions

In April 2023 the UK government replaced its generous Energy Bill Relief Scheme with the more modest Energy Bills Discount Scheme for non-domestic customers. However, it also pledged a higher level of support for “Energy and Trade Intensive Industries”, many of whom face an uncertain future without intervention.

The Energy and Trade Intensive Industries (ETII) scheme opened on the 26th of April 2023 and the application portal can be found on the government website – it’s not automatically allocated; organisations must apply.

The majority of eligible sectors fall within manufacturing, but libraries, museums, historical sites, zoos and gardens may also meet the criteria.

Here’s our quick guide.

What discount can I receive under the ETII support scheme?

Eligible organisations will receive an energy cost discount reflecting the difference between the price threshold and the relevant wholesale price. The thresholds are:

• Electricity – £185 per MWh
• Gas – £99 per MWh

This discount will only apply to 70% of energy volumes and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89/MWh for electricity. The baseline level of support will apply for the remaining 30% of energy volumes where the customer’s wholesale price meets the baseline eligibility criteria.

The discount is likely to show up as one line on your bill as suppliers will do one calculation for the overall discount you are owed.

Which organisations are eligible for ETII support?

Most organisations need to prove at least 50% of their revenue comes from an activity considered as “energy and trade intensive”. That is to say, that the activity falls under one of the list of eligible sectors.

You must also have a non-domestic contract with a licensed energy supplier and be:

• on existing fixed price contracts that were agreed on or after 1 December 2021
• signing new fixed price contracts
• on deemed/out of contract or variable tariffs
• on flexible purchase (or similar) contracts
• on variable ‘Day Ahead Index’ (DAI) tariffs (Northern Ireland scheme only)

Eligibility criteria for local authorities

For local authorities, the rules are slightly different: eligibility will instead be determined at a premise level. Where there are no relevant accounts, the local authority will be required to declare that at least 50% of the space is taken up by operations within eligible sectors.

More about eligible sectors

While the list of eligible sectors mainly covers mining, quarrying and manufacturing, it also extends to libraries, museums, historical sites and other visitor attractions. If most of your operations fall into the below SIC codes, you may be eligible to apply:

How do I apply for ETII support?

The application portal opened on 26th April and can be found on the government website.

Eligible organisations will have until 23:59 on 25 July 2023 to apply for the higher support. New organisations or newly eligible organisations will have 90 days to apply from the date at which they become eligible.

What information do I need to apply for ETII support?

Applicants will need to provide information about their organisation or business including:

• contact details
• registered name and address
• company registration number (if you have one)
• up to 4 ETII eligible SIC codes
• whether you pay bills directly to an energy supplier and details of any intermediaries involved (such as a landlord)
• the names of gas and/or electricity suppliers
• the gas or electricity meter point numbers (MPRN or MPAN) associated with the property, found on your bill from your energy supplier
• the name of your organisation as it appears on your bill from your energy supplier(s)
• a declaration letter signed by a named director or equivalent of your organisation or business (a template will be provided)

You may also need to provide financial evidence to determine your eligibility, such as:

• your most recent full set of end-of-year accounts – if you do not have these, upload evidence of your most recent
• company accounts, covering a minimum period of the most recent 6 months
• an Income Statement referring to the same time period as the accounts
• a sample of 20 sales invoices, no older than 12 months from the date of the signed declaration, which demonstrates activity that falls within an eligible sector
• license or trade body membership details for regulated industries (if applicable)
• any additional evidence you want to support your application

To help with the processing of your application, you could also upload a letter signed by an external auditor or chartered accountant. This should confirm that you are in an eligible sector, and that 50% or more of your revenue generated from Great Britain and Northern Ireland are in an eligible sector.

Evidence pack for local authorities (including libraries)

Local authority applicants who cannot provide financial evidence should upload floor plans of the relevant property, with accompanying measurements in square metres. This should show that 50% or more of your activities are in an eligible sector.

Further advice

If you have any questions on the ETII scheme, would like application support, or need help determining your eligibility, our Bureau team can help. Get in touch for no obligation advice