Market changes: EII exemption of renewable policy costs
Energy Intensive Industries are set to become exempt from renewable policies costs next spring, with the cost of this exemption being distributed to other UK businesses.
A Government effort to reduce the impact of renewable policies costs on Energy Intensive Industries (EIIs) could result in EIIs becoming exempt from such charges. From April next year, it is expected that EIIs will no longer be required to cover all of the costs of renewable policies – specifically the Renewables Obligation (RO) and the Small Scale Feed-in Tariff (ss-FiT) – with the cost of these exemptions being distributed to non-exempt customers.
Once this exemption has been implemented, energy bills for many UK businesses are predicted to increase by around 6.3%* for RO and ss-FiT – two of the third party costs (TPCs) that currently contribute to approximately half of consumers energy bills.
In order to give customers a choice on their level of budget certainty when managing cost increases due to changes in the energy market, Haven’s ‘Assured’ product is now available to both SME and I&C customers. This complements Haven’s ‘Complete’ product which fixes all pricing elements of customer bills for the duration of their contracts.
Peter Bennell, CEO of Haven Power, commented:
“Our promise of price security for our customers is extremely important which is why we are constantly looking ahead in the market to prevent any sudden increase in costs being added onto our customer bills.
“We want to provide the best products for our customers and with both Assured and Complete, customers have a greater choice in how they want to manage the non-energy elements of their bill, depending on their appetite for risk.”
For more information on Haven’s Assured and Complete products, please click here.
*Estimate supplied by Cornwall Energy