Commons Sense

House of Commons · Ministers' Questions

Rising Energy Costs: Impact on Industry and Businesses

Wednesday 17 November 2021 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 3 Not answered 0

Key points

  • The Government have provided 2 billion to help businesses with electricity costs, including the 315 million industrial energy transformation fund for high energy users.
  • We have committed 470 million in relief for high-energy industries, providing compensation and exemptions.
  • The Secretary of State and the Minister have ongoing discussions with other Departments on resolving issues related to high energy costs for steel and manufacturing industries.

Topics (select to filter)

Questions & Answers

Q1 Tan Dhesi Lab Slough
Wales Energy Business & Trade
Context

The question addresses the significant challenges faced by businesses in Wales due to increasing energy costs.

Question

What steps have been taken to tackle the impact of rising energy costs on industry and businesses in Wales?

Answer from David Davies

The Government have provided £2 billion to help businesses with electricity costs, including the £315 million industrial energy transformation fund for high energy users.

Partly answered

Not addressed: Does not provide specific details on how the national insurance hike affects businesses or what additional support measures are being taken beyond general funds.

How: Under Review

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Q2 Tan Dhesi Lab Slough
Economy Wales Energy
Context

The question follows up on the initial concern, focusing on the impact of national insurance hikes on small and medium-sized enterprises.

Question

Seventy per cent. of SMEs believe high energy costs will negatively affect their growth. Given the additional burden from the national insurance hike, what support is being provided to Welsh businesses to overcome these challenges?

Answer from David Davies

We have committed £470 million in relief for high-energy industries, providing compensation and exemptions. The Government recognise the transition challenge but are minimising costs.

Partly answered

Not addressed: Does not address the national insurance hike's impact on businesses or provide specific measures to help them plan ahead.

How: Under Review

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Q3 Theresa Villiers Con
Climate Energy
Context

The question concerns the potential negative impact of transitioning to renewable energy sources on high-energy industries.

Question

Will my hon. Friend ensure that efforts to decarbonise electricity generation do not unfairly disadvantage high-energy industries, as exporting carbon emissions defeats the purpose?

Answer from David Davies

The Government recognise this issue and have provided £470 million in compensation and exemption for high-energy users as part of the transition.

Answered
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Q4 Gerald Jones Lab Merthyr Tydfil and Aberdare
Energy Business & Trade
Context

The question addresses the perceived delay in Government action compared to other countries, affecting investment attractiveness.

Question

High energy costs discourage international steel and manufacturing investments. Other countries are taking proactive measures. Why is this Government slow? What discussions are being held to support these industries?

Answer from David Davies

The Secretary of State and I have ongoing discussions with other Departments on resolving this problem. We recognise the transition costs but lead efforts towards renewable energy.

Partly answered

Not addressed: Does not provide specific details about what interventions are being discussed or implemented.

How: Under Review

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