Form: Contracts for Difference, renewables obligation and small scale feed-in tariffs: apply for exemption or compensation

Updated: 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.

A number of policies have been developed to increase the share of electricity generated from renewable sources including the RO / FIT compensation scheme and the CFD exemption. The costs of funding the CFD scheme are recovered through levies on suppliers and these are 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 to exempt those energy intensive industries whose competitiveness may be most at risk.

These forms allow businesses to apply for an exemption from a proportion of the costs of funding the CFD and compensation for a proportion of the costs of funding the RO/FIT. Businesses which wish to apply for the RO and CFD exemptions should follow the exemption guidance on this page. Businesses applying for FIT compensation, or businesses in Northern Ireland, should use the compensation guidance.

Download the application forms and compensation calculation spreadsheets. Email your completed forms to energyintensiveindustries@beis.gov.uk.

See the list of companies awarded compensation.

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