How the EII Support Levy Could Impact Your Business Energy Costs

The UK government’s Energy Intensive Industries (EII) Support Levy came into effect in April 2025 as part of the British Industry Supercharger initiative, designed to reduce energy costs for eligible energy-intensive businesses. But what does this mean for your business – and your energy bill?

What Is the EII Support Levy?

The EII Support Levy is a government-introduced charge that electricity suppliers must now pay based on their share of the market. This levy funds financial support for Energy Intensive Industries, helping them stay competitive by reducing their energy costs.

To offset the levy, some suppliers have increased their prices, passing on the cost to customers – especially businesses that don’t qualify as EIIs.

How Does It Work?

The levy helps fund relief covering up to 60% of electricity network charges for eligible EII businesses. These charges include:

• Transmission Network Use of System (TNUoS)
• Distribution Use of System (DUoS)
• Balancing Service Use of System (BSUoS)

This support makes a significant difference for manufacturers and other energy-intensive sectors that struggle with high operational costs due to energy use.

How Will It Affect Your Business?

For EII Businesses:

If your business qualifies as an Energy Intensive Industry, this is good news. You could benefit from lower energy bills thanks to this relief – enhancing your operational competitiveness on a national and global scale.

For Non-EII Businesses:

If your business doesn’t fall under the EII category, you may see the EII Support Levy reflected in your electricity invoices, as suppliers pass on the added costs. Not all energy providers are applying the charge yet, but many have already updated their pricing models.

How Much Will It Cost?

The EII Support Levy is expected to cost between 0.1 and 0.3 pence per kilowatt-hour (kWh). While this might seem minimal, the impact adds up over time, especially for businesses with high electricity usage.

What Should You Do Next?

If you’ve noticed a change in your energy costs or want to check if your business is paying the EII Support Levy, get in touch with our team. We can:

• Review your current invoices
• Help you understand your eligibility for EII support
• Compare supplier rates to keep your costs under control

Contact Flame Energy today to speak with one of our energy specialists and take control of your business energy costs.