Explainer - Energy-Intensive Industries (EII) Support Levy

The Energy-Intensive Industries Support Levy is a charge that helps fund discounts on electricity network costs for some large industrial businesses, such as steel, chemicals and cement. These sectors use very high volumes of electricity and can be more exposed to international competition. The support is intended to help them remain competitive and keep industrial activity in the UK.

The levy is paid by electricity suppliers and is then recovered across the wider customer base through bills. Current estimates suggest it will be around £0.83 per MWh, which is about 0.083 pence per kWh. The cost is small on a per unit basis, but it is expected to increase over time as the funding requirement changes.

For most customers, this is a non-energy charge included within the overall bill, often shown as a pass-through item depending on your contract. The main point is that, even when each charge is small, these schemes add up over time as more policy and system costs are recovered through electricity bills.