Businesses Cost of Energy 2026-02-10
2026-02-10
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Businesses are struggling with high energy costs despite the government's initiatives.
What recent discussions has he had with Cabinet colleagues on supporting businesses with high energy costs, and what specific actions will be taken to address this issue?
We are addressing high energy costs through initiatives such as the British industry supercharger and the new British industrial competitiveness scheme, which aim to reduce electricity costs for energy-intensive sectors while delivering our clean power 2030 mission. We intend to consult on further options to make low-carbon heat economically competitive.
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Assessment & feedback
Did not provide specifics of recent discussions or concrete actions beyond initiatives already mentioned.
Response accuracy
Q2
Partial Answer
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Context
Manufacturing companies in Spelthorne face high energy prices compared to international competitors.
How does the Minister expect Ametek and SSS Gears to be competitive internationally when their energy prices are four times higher than those in Ashford, Alabama?
The disparity in international energy prices is being addressed through our clean power 2030 mission. Both Ametek and SSS Gears are expected to benefit from initiatives such as the British industrial competitiveness scheme, for which consultation has closed and results will be published shortly.
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Assessment & feedback
Did not provide specific plans or actions addressing competitive disadvantage due to high energy prices.
Response accuracy
Q3
Partial Answer
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Context
Small and large businesses in Surrey Heath face high operating costs due to energy prices.
Can the Minister indicate what proportion of a typical business energy bill is driven by wholesale costs, network charges and policy costs?
UK gas costs are competitive with Europe after policy costs, but we aim to remove businesses from relying on fossil fuel market fluctuations through renewable energy investment. The clean power mission aims to provide low-cost and secure home-grown energy.
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Assessment & feedback
Did not provide specific breakdown of business energy bills or concrete actions reducing costs.
Response accuracy
Q4
Partial Answer
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Context
A third-generation advanced manufacturer faces increased business rates and energy costs despite transitioning to renewables.
What discussions has the Secretary of State had with the Chancellor about reducing industrial energy costs?
Businesses are incentivised to invest in renewable energy through our British industrial competitiveness scheme, which aims to reduce electricity costs for energy-intensive sectors. Results of consultation will be published shortly.
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Assessment & feedback
Did not provide specifics on discussions between the Secretary of State and the Chancellor.
Response accuracy
Q5
Partial Answer
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Context
Proposals exist to use floating offshore wind power for critical minerals processing in Cornwall.
Will the Minister look closely at proposals for using floating offshore wind to power critical minerals processing plants?
The Government will work with constituents in Truro and Falmouth on realising opportunities where investment in energy and industry can reduce costs for both parts of the supply chain, creating economic opportunities.
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Assessment & feedback
Did not provide specific commitment or plan to examine proposals closely.
Response accuracy
Q6
Partial Answer
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Context
Manufacturers such as Alexander Dennis need support to stay competitive while transitioning to zero emission vehicles.
Will the Minister consider supporting a dual fuel discount that includes gas costs to support the automotive advanced manufacturing sector?
Concerned about gas-intensive industries, the Government aims to provide support through clean power mission policies that encourage decarbonisation by electrification where possible.
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Assessment & feedback
Did not commit to considering or implementing a dual fuel discount.
Response accuracy
Q7
Partial Answer
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Context
The ferry company in the Isle of Wight is facing £12 million upfront costs for a shoreside connection and awaits up to seven years for it. The current system affects businesses negatively.
I know that the Department is working hard with the Department for Transport to decarbonise shipping, but the current system works against businesses. One of our ferry companies is having to pay £12 million up front for a shoreside connection and then wait for up to seven years. Will the Minister commit to reviewing this system to speed up electric shipping for places such as the Isle of Wight?
I am extremely grateful to my hon. Friend for engaging with me on this topic in advance of the recent changes to the emissions trading scheme to include maritime emissions. It is incredibly important that domestic maritime emissions are included, so as to incentivise the investment required to decarbonise. I know of the issue affecting two vessels in the Isle of Wight and invite the questioner to visit the Isle of Wight to meet businesses concerned.
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Assessment & feedback
Did not commit to reviewing or speeding up the system for electric shipping
Engaged With Topic
Invited Meeting
Response accuracy
Q8
Partial Answer
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Context
Businesses and public services in northern Scotland pay among the highest commercial energy prices in the UK. The Government have had 18 months to address this issue.
Businesses and public services in the north of Scotland pay among the highest commercial energy prices in the whole UK. The Government have had 18 months to try and fix that. Why do they still think it is okay to discriminate against people in the north of Scotland in that way?
In fact, the Government are taking an approach across the whole United Kingdom to deliver low-cost, home-grown, secure energy. There will be 20,000 additional jobs by 2030 in clean energy industries.
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Assessment & feedback
Did not address why high energy costs persist for northern Scotland despite government efforts
Discussed Uk-Wide Approach
Highlighted Job Creation
Response accuracy
Q9
Partial Answer
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Context
Small manufacturing firms in Llanelli face high energy costs, making it difficult for them to compete. The previous government failed to invest adequately.
Time and again, small manufacturing firms in my constituency of Llanelli tell me that high energy costs are making it difficult for them to be competitive, and they feel that they are on the edge. Given the lack of investment by the previous Conservative Government and the fact that this Government are playing catch-up, when does the Minister think that enough new sources of energy will be generated to bring down prices? How soon will interim help arrive?
My hon. Friend is right to champion the small manufacturers in her constituency. The Government have announced allocation round 7 to put on new solar farms, wind installations which contribute to energy security and lower costs for industry.
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Assessment & feedback
Did not specify timeline or interim help for Llanelli's small manufacturing firms
Acknowledged Issue
Announced Allocation Round
Response accuracy
Q10
Partial Answer
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Context
Small businesses in South Cambridgeshire have seen a total bill increase of £7.6 billion when the Conservative Government ended the energy bill relief scheme.
The cost of electricity is still too high, and, as we have heard, businesses are struggling to pay their energy bills. While the Government have offered help to the energy-intensive industries, it is the small and medium-sized businesses in my constituency and around the country that still feel overlooked and forgotten. Liberal Democrat researchers have estimated that 3.1 million SMEs saw a total bill increase of £7.6 billion when the Conservative Government ended the energy bill relief scheme. When will this Government finally help SMEs—the small businesses, the backbone of our economy—to see off their crippling energy bills?
The hon. Lady is right that more needs to be done to alleviate the high energy costs for small businesses. We are already helping with measures such as our zero carbon services hospitality trial and provision of £200,000 to fund improvements in the UK business climate hub.
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Assessment & feedback
Did not specify when or how SMEs will see off their energy bills
Acknowledged High Costs
Mentioned Existing Measures
Response accuracy