debates/debates2025-07-15c conversation_7
Source: hansard.parliament.uk (2025-07-15)

UK Parliament Hansard data: debates/debates2025-07-15c conversation_7

John Whittingdale:What steps his Department is taking to help reduce industrial electricity prices. \p Miatta Fahnbulleh: We understand that high energy bills are a challenge for businesses, and particularly energy-intensive companies. We are clear that, in the long term, our mission to deliver clean power is the only way to bear down on that cost. But  while we get there, we are providing the support needed through the British industrial competitiveness scheme and the supercharger scheme, protecting over 7,000 businesses. \p Wendy Morton: The UK’s industrial electricity prices are among the highest in Europe, and it is quite clear that the Government’s current policies are failing manufacturing businesses in constituencies such as mine. Will the Minister commit to introducing support that genuinely reduces electricity costs for manufacturers, including by tackling high wholesale energy prices, rather than prolonging the uncertainty, which sadly puts local jobs at risk? \p Miatta Fahnbulleh: I gently remind the right hon. Member that industrial energy prices rocketed on the Conservatives’ watch. Gas prices for non-domestic companies went up by 170%, which was catastrophic for UK plc. We are taking action to support businesses through our sprint to clean power and, critically, the measures we are providing through the British industrial competitiveness scheme. Those measures have been supported by Make UK, the British Chambers of Commerce, UK Steel and the Chemical Industries Association. The Conservatives dithered, delayed and did nothing to support businesses; we are cracking on and getting on with the job. \p John Whittingdale: On Friday, I visited C&M Precision Ltd, a small manufacturing company in my constituency. Electricity represents easily its biggest cost. What is the Minister doing to listen to small and medium-sized enterprises like C&M who feel that their voice is simply not being heard? \p Miatta Fahnbulleh: We are listening to businesses, particularly small and medium-sized businesses. We have heard companies complain, for example, about being locked into expensive fixed-term contracts. That is why Ofgem is working to deliver blend-and-extend contracts so that businesses can benefit from lower prices. We have heard their frustration at the lack of a redress system, which is why last December we expanded the ombudsman service to 99% of businesses so that they can get redress and financial awards of up to £20,000. We have also heard their frustration about energy brokers, which is why we have consulted on introducing regulation of third-party intermediaries. We will respond in due course. \p Mike Reader: Last week, the Energy Security and Net Zero Committee heard from Make UK and representatives from the chemical, petrochemical, steel and ceramics industries that closer alignment and collaboration with the EU on energy pricing is critical to reducing bills. That is also recognised in the Government’s industrial strategy. What more is the Department doing to bring that forward quickly? \p Miatta Fahnbulleh: My hon. Friend makes a good point. Industry voices have been calling for that close alignment, particularly on the emissions trading scheme—we have heard that from UK Steel, the CBI, Make UK and the Energy Intensive Users Group—and we believe that those stronger linkages are the right thing to do to cut red tape at the border, to protect  consumers from higher costs and, critically, to boost trade and growth, which the Government are absolutely committed to doing. \p Alistair Strathern: One way to drive down energy costs, including for energy-intensive industries, could be to help cut curtailment costs by encouraging the co-location of new energy-intensive industry sectors with some of the renewable sectors that we are currently having to pay to switch off. As we start to roll out more data centres across the country, what conversations have Ministers had about how such centres could be optimally located to help reduce our energy bills at the same time? \p Miatta Fahnbulleh: My hon. Friend makes a good point, as always. We in the Department are working across Government—as part of the AI Council as well as with colleagues in the Department for Business and Trade—to ensure that we have the co-ordination and collaboration to support businesses on the ground.