Summary of the Changes
The British Industry Supercharger (BIS) scheme is a set of measures to help make Britain’s Energy Intensive Industries (EIIs) more competitive across Europe. As part of the scheme, there will be additional compensation for EII’s non-energy costs and a new non-energy cost is being introduced. Both could be implemented on the 1st April 2024.
Green Levies
Currently EIIs receive discounts on the following non-energy costs:
- RO (Renewable Obligations)
- FiT (Feed-in Tariff)
- CfD (Contracts for Difference)
The discounted rate of 85% is set to increase to 100% relief, whilst for the first time EIIs will also receive a discount on the CMSC (Capacity Market Supplier Charge) costs, again at the level of 100% relief.
EII participants using 10GWh a year can expect an additional saving of approximately £70,000.
Network Costs
Additionally, 60% of EIIs network costs are also set to be covered under the BIS scheme. These costs include:
- BSUoS (Balancing Services Use of System)
- TNUoS (Transmission Network Use of System)
- DUoS (Distribution Network Use of System)
EII Support Levy
To fund these discounts the new Energy Intensive Support Levy will be charged by suppliers on a p/kWh basis.
Increases to the relief received for non-energy costs alongside compensation for networks means that no EII consumers will see an increase to the £/MWh rate they are charged, with non-domestic consumers predicted to see an increase of £1/MWh.