What is this about?
As part of the UK government’s approach to decarbonise energy, incentives were given to generate electricity from renewable sources in the form of Renewables Obligations (RO) and Feed-in-Tariff (FITs). This resulted in the increase in retail electricity prices which risks reducing the competitiveness of the UK’s most electricity-intensive businesses operating in international markets.
As a result, the UK Government has committed to implement compensation for the impact of renewables policy on the costs of electricity for the most electricity intensive industries in line with European Commission’s published guidelines.
Compensation of up to 85% on RO and FIT charges and exclusion from the CFD scheme.
Who is affected and eligible?
Businesses that manufacture a product in the UK within an eligible sector (NACE Code specific) The business (aggregated business level – whole legal entity) must pass the electricity intensity test.).
How can LG Energy Group help you claim this cash benefit?
LG Energy Group have the expertise and knowledge to complete the relevant documentation and assist in the process of these claims.
Dateline for Claims
Initial claims for RO/FITs relief received by Thursday 31st March 2016 will be payable from 14th December 2015. Following this, initial claims will be valid from the start of the month in which they are received and there will be no facility for the backdating of claims.
How & When will compensation be paid?
Following application approval and receipt of the quarterly declaration BIS (Department for Business, Innovation & Skills) will make payment directly into the business’s bank account.
Will I see any changes to the cost of my electricity bills?
No, businesses will continue to pay the charges as usual. BIS will refund amounts through the scheme.
LGE Service Offer
LGE’s comprehensive Management Programme will ensure compliance in a appropriate and timely manner.
We will carry out the initial quantification and assessment of the compensation available to your organisation and can help you release this valuable cash benefit.
Our services include:
- Evaluation of your eligibility
- Calculate the electricity intensity test
- Assess eligible and non-eligible electricity meter points
- Assess of production volumes
- Complete & Submit your application
- On-going submission of quarterly declarations and annual returns
- Manage any aspects and changes to the your portfolio and scheme
- Provision of audit services to ensure compliance with the scheme validation process
What is a typical benefit?
An eligible business consuming 7,000,000 kWh was refunded £89,250. The equivalent of 1.275p/kWh.
Why choose LG Energy Group?
LGE’s comprehensive Management Programme is risk free and without obligation. We work on a contingency fee basis adding much needed cash to your bottom line.
GVA is defined as earnings before interest, taxes, depreciation and amortisation (EBITDA) and staff costs including employers’ pension and national insurance contributions.