Commons Sense

House of Commons · Adjournment Debate

Cost of Energy: Ceramics Sector

17 January 2023 · 2 other contributors

Opened by Jonathan Gullis Lab Stoke-on-Trent North

ClimateEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Jonathan Gullis raised concerns about cost of energy: ceramics sector in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The ceramics industry in Stoke-on-Trent employs around 20,000 people and is vital to the local and national economy.
  • Rising energy costs following Russia's invasion of Ukraine have increased production expenses and reduced the sector's competitiveness against foreign imports.
  • The Energy Bill Relief Scheme provides government support to ceramics companies to help them stay operational during winter months.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Jonathan Gullis Lab Stoke-on-Trent North

The ceramics industry in Stoke-on-Trent is vital to the local and national economy, employing around 20,000 people. The sector has been heavily impacted by rising energy costs following Russia's invasion of Ukraine, leading to increased production expenses and reduced competitiveness against foreign imports. Companies like Churchill China, Steelite, Burleigh, Moorcroft, and Johnson Tiles rely on government support such as the Energy Bill Relief Scheme to stay operational during winter months. However, concerns remain about future funding beyond March 2023 when current schemes expire, potentially leaving firms vulnerable if energy prices rise again. The industry also faces challenges in meeting net zero targets while maintaining competitiveness against countries without similar environmental regulations.

Other contributors (2)
  • Unidentified MP Con Strangford

    Compliments Jonathan Gullis on his speech and links ceramics to every constituency. Expresses concern about the cost implications of rising gas prices for firms in Stoke-on-Trent.

  • Jack Brereton Lab Stoke-on-Trent South

    Agrees with Jonathan Gullis's concerns, highlighting that ceramics are essential to the UK economy and need support while transitioning towards net zero emissions.

Government Response

Nusrat Ghani

The Government acknowledges the importance of energy-intensive industries like ceramics. Following Russia's invasion, billions were committed to help households and businesses with their energy bills this winter, ensuring kilns remain operational. The Energy Bills Relief Scheme was introduced in October 2022 for eligible non-domestic customers, providing a discount on gas and electricity unit prices over the next year from April 2023 onwards. Ceramics manufacturers will receive additional support through the scheme, with meetings scheduled to finalise details of this support. The Government also provides funds like the £17 million exemption scheme for indirect costs arising from renewable levies and the £315 million Industrial Energy Transformation Fund to help reduce emissions in the ceramics sector. A letter has been sent to Ofgem regarding cases where savings were not passed on to customers, emphasising continued support for the industry.

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