Questions & Answers
Q1
Partial Answer
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Context
The MP is concerned about the high electricity prices faced by UK manufacturing businesses compared to their European counterparts.
Reducing costs by £40 per megawatt-hour for 7,000 manufacturing businesses is welcome, as is the news in the Budget of changes to the British industry supercharger scheme. However, there are tens—if not hundreds—of thousands of other manufacturing businesses facing some of the highest electricity prices in Europe, which has been the case for many years. What is the plan to help the businesses facing very high bills right now while we wait for lower electricity bills in the longer term through Government plans for clean power?
Alongside the British industrial competitiveness scheme, we have also committed to increasing network charges compensation from 60% to 90% under the network charging compensation scheme. We are reviewing our energy intensive industries compensation scheme. The lack of competitiveness on energy prices between the UK and the rest of Europe is a situation that was bequeathed to us by the previous Conservative Government and their ideological adherence to relying on foreign dictators such as Putin for Britain’s energy needs. We are investing in our future energy needs to ensure they are clean, cheap and secure.
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Assessment & feedback
No specific plan was given to help businesses facing high bills right now.
Response accuracy
Q2
Partial Answer
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Context
The MP is concerned that only a small percentage of the steel used for pylons and offshore wind projects will be produced by UK companies due to high energy costs.
National Grid is going to spend about £30 billion by the end of the decade building pylons, but only 2% of the steel used to build those pylons will be British; similarly, in the offshore wind projects, only 2% of the steel will be British. That is because of carbon taxes and energy costs. Does the Minister recognise that rather than promoting the opportunity of the great, green revolution that they were espousing earlier, the Government are actually killing British business with high energy costs?
I do not believe the hon. Gentleman is correct to attribute that cause to carbon taxes or energy costs, but I share his concern about the lack of British steel and other British materials being used in construction projects funded by the taxpayer. The taxpayer expects materials for such projects to largely be sourced from the UK.
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Assessment & feedback
The minister did not address the issue of carbon taxes or energy costs impacting businesses.
Does Not Agree With Attribution
Response accuracy
Q3
Partial Answer
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Context
The MP is concerned about the UK ceramics sector, which is among the most gas and electricity-intensive industries in the country.
The UK ceramics sector is one of the most gas and electricity-intensive industries in the UK, so I make my usual plea to the Minister to consider changes to the supercharger scheme ahead of the British industrial competitiveness scheme coming online. Will he also give some thought to the electrification process? There are parts of the ceramics sector that would like to electrify, but the industrial grid capacity simply does not exist yet. What will the Government do to allow those companies to move forward with electrification, which ultimately will help to bring down their energy bills?
I recognise my hon. Friend’s call for ceramics to be considered under the review of the supercharger scheme, and I have ensured that those calls have been heard within the Department. We want to ensure that ceramics is considered very carefully as part of that. Ceramics UK and other industry representatives continue their commitment to work with me to improve the competitiveness of the industry.
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Assessment & feedback
No specific plan was given for electrification beyond reviewing supercharger schemes.
Response accuracy