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Cost of Energy: Ceramics Sector
17 January 2023
Lead MP
Jonathan Gullis
Debate Type
Adjournment Debate
Tags
UkraineEconomyTaxationClimateEnergyBusiness & Trade
Other Contributors: 2
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.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
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.
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
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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