The cost of energy remains a significant challenge for the life sciences and medical manufacturing sectors. While commodity prices have cooled since the record highs of 2021, energy bills are still under pressure due to non-commodity costs—government-imposed charges that fund the UK’s low-carbon transition.
At Leyton, we are working closely with a number of Medilink members to help them reduce these costs through exemption schemes -and we encourage others in the network to reach out if they’d like support.
What Are Non-Commodity Costs?
These charges are separate from the wholesale energy price and include:
- Contracts for Difference (CfD)
- Renewables Obligation (RO)
- Feed-In Tariffs (FiT)
- Climate Change Levy (CCL)
These charges can make up a significant portion of the overall energy spend for energy-intensive operations like laboratory environments, cleanrooms, and regulated production facilities.
What’s Coming Next?
In addition to the existing levies, new charges are being introduced or discussed, which may soon impact your energy bills:
- EII Support Levy (active from April 2024): Funds the Network Charging
Compensation scheme. - Nuclear Regulated Asset Base (RAB): Expected to appear from late 2025.
- Hydrogen Levy (Gas) and Carbon Capture Subsidy: Still in design stages, but
intended to fund future energy technologies and decarbonisation efforts.
How to Prepare: Tailored Advice for the Sector
At Leyton, our approach for Medilink members includes:
- Validating Your Energy Bills
- Complex billing structures can result in your business being overcharged. We offer a full bill validation to ensure you’re only paying what’s necessary
- Identifying Exemption Opportunities
- Many life sciences and bioscience businesses qualify for energy tax exemptions, particularly under schemes such as:
- Energy Intensive Industries (EII) Exemption Scheme
- Climate Change Levy (CCL) Relief
- ETS Compensation
Partnering with Medilink Members
We’re already working with several members across the Medilink network to help them unlock savings and protect against future cost hikes. Whether you’re a biotech firm, a medical device manufacturer, or running an R&D-intensive lab, we can assess your eligibility and manage the entire exemption process on your behalf.
Ready to Reduce Your Energy Costs?
Our Energy Tax Relief experts offer an end-to-end service—assessing eligibility, managing claims, and implementing strategies to make energy usage more efficient, sustainable, and financially viable.
Get in touch today to explore how we can support your business: