Contracts for Difference, renewables obligation and small scale feed-in tariffs: apply for an exemption or compensation
How to apply for an exemption or compensation for a proportion of the indirect costs of funding the Contracts for Difference, renewables obligation and small scale feed-in tariffs.
Updates to this page
- From:
- Department for Business, Innovation, Science and Trade, Department for Business and Trade and Department for Business, Energy & Industrial Strategy
- Published:
- 19 January 2016
- Last updated:
-
12 May 2026
Show all updates
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Annual update made to part 2 form for Northern Ireland, to reflect the new baseline electricity price.
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'Exemption from the indirect costs of funding Contracts for Difference, the renewables obligation, and small scale feed-in tariffs: guidance' updated to reflect current baseline electricity price on page 10.
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Annual update made to part 2 form for Great Britain, to reflect the new baseline electricity price.
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'Exemption from the indirect costs of funding Contracts for Difference, the renewables obligation, and small scale feed-in tariffs: guidance (revised April 2026)' updated. The guidance has been updated to reflect the uplift to 90% relief offered by the Network Charging Compensation Scheme from 1st April 2026.
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‘Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (Northern Ireland only)’ and ‘Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2)’ updated to correct how eligibility is estimated where the final financial period ends 1 Jan 2026 or later.
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Document attachment ‘Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (updated April 2025) (Northern Ireland only)’ updated to January 2026 version. Document attachment ‘Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (updated April 2025)’ updated to January 2026 version.
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'Exemption from the indirect costs of funding Contracts for Difference, the renewables obligation, and small scale feed-in tariffs: guidance' updated to reflect current baseline electricity price.
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Part 2 forms for Great Britain and Northern Ireland updated to April 2025 version. New April 2025 versions have been updated to reflect the new baseline electricity price.
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Part 2 form for Northern Ireland updated to allow companies to enter 2024/25 data.
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Part 2 form for Great Britain updated to allow companies to enter 2024/25 data.
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Guidance updated to include information on eligibility for the Network Charging Compensation Scheme.
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Document attachment Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (updated February 2024) (Northern Ireland only) updated to April 2024 version. Document attachment Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (updated January 2024) updated to April 2024 version.
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Guidance and form for applicants applying for an exemption from the costs of funding renewable energy policies updated to reflect the increase in the level of exemption from 85% to 100% of policy costs. It has also been updated to reflect the forthcoming capacity market exemption. The guidance also now includes new language concerning the Windsor Framework which will affect applicants with Northern Ireland operations.
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'Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (updated February 2024) (Northern Ireland only)' form added to page. Unnecessary tables have been removed, and remaining tables redesigned to limit repetition. Further data validation checks have been added and scheme guidance updated.
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Update to 'Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2)': Field for company registration numbers (CRN) added. DBT branding applied, update of contact information and hyperlinks. Update to 'Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 1)': DBT branding applied, contact information and hyperlinks updated. Update to 'Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: quarterly declaration': Unnecessary tables have been removed, and remaining tables redesigned to limit repetition. Further data validation checks have been added and scheme guidance updated.
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Guidance updated to reflect that the exemption schemes will be operated in compliance with the UK Subsidy Control Act and the Windsor Framework; application form updated to reflect a change to the reference price used to calculate eligibility.
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Guidance and application form part 2 amended: reference price used to calculate eligibility updated, changes made to ensure consistent language across our relief schemes on Ailing and Insolvent Economic Actors (AIEA) previously known as Undertakings in Difficulty.
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Guidance updated to reflect new Baseline Electricity Price (BEP), also known as reference price; undertakings in difficulty (UIDs) section amended regarding the application relevant period to take account of the impact of COVID-19 outbreak on businesses; part 2 application form updated to reflect the new Baseline Electricity Price
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Exemption guidance updated - manufacture of grain milling products added to the list of eligible sectors, and removing the automatic requirement for an Independent Accountant's Report.
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Exemption guidance and application form part 2 updated, to clarify the eligibility of UK applicants who have used electricity overseas or for non-UK production.
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Guidance and application form (part 1) updated.
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Documentation updated as a result of European Commission approval to move from FIT compensation to FIT exemption.
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August 2018 update to guidance.
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The renewables obligation has moved to an exemption and we have updated the guidance which previously applied only to Contracts for Difference. This guidance is effective from 1 April 2018.
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Updated application forms
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Updated guidance and forms added.
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Minor alterations to the application form (part 2) to ensure the regulations and the form are consistent.
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Updated application form.
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Updated application form (part 2) with new quarterly returns tab, adjusted application tab and other updates. Updated guidance document to reflect changes.
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Added the terms of engagement and proposed form for accountants’ reports (annexes B and C).
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First published.
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Documents
Exemption from the indirect costs of funding Contracts for Difference, the renewables obligation, and small scale feed-in tariffs: guidance (revised May 2026)
PDF, 358 KB, 35 pages
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Compensation for the indirect costs of funding the renewables obligation (Northern Ireland only): guidance
PDF, 395 KB, 27 pages
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Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 1) (updated April 2024)
ODT, 17.9 KB
This file is in an OpenDocument format
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Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (Northern Ireland only) (updated May 2026)
MS Excel Spreadsheet, 123 KB
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Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: application form (part 2) (updated April 2026)
MS Excel Spreadsheet, 112 KB
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Exemption for the indirect costs of Contracts for Difference, the renewables obligation, and small scale feed-in-tariffs: quarterly declaration (updated January 2024)
MS Word Document, 41.7 KB
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Details
A number of policies have been developed to increase the share of electricity generated from renewable sources including the renewables obligation, feed-in tariffs and Contracts for Difference. The costs of funding these schemes are recovered through levies on suppliers and ultimately passed on to domestic and industrial consumers’ bills.
The government recognises that, in the short to medium term, the resulting increase in retail electricity prices risks reducing the competitiveness of the UK’s most electricity-intensive businesses where they are operating in internationally competitive markets.
To address this, the government has developed an exemption scheme providing relief to some energy intensive industries (EIIs) whose competitiveness may be most at risk, for a proportion of the indirect costs of funding low carbon schemes.
How to apply
To apply for an exemption or compensation, download the application forms and compensation calculation spreadsheets. Email your completed forms to energyintensiveindustries@businessandtrade.gov.uk.