Commons Sense

House of Commons · Ministers' Questions

Energy Costs: Support for Businesses

Tuesday 9 May 2023 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Christine Jardine inquired about fiscal steps the government is taking to support businesses with energy costs.
  • The government responded that the energy bill relief scheme was unprecedented and time-limited, and the current energy bills discount scheme supports businesses.
  • Robin Millar questioned the government's response to rising energy bills for hoteliers, prompting advice to contact suppliers and awareness of difficulties in securing benefits from falling wholesale prices.

Topics (select to filter)

Questions & Answers

Q1 Christine Jardine Lib Dem Edinburgh West
Economy Energy Business & Trade
Context

Small businesses in Edinburgh West are struggling due to high energy costs, exacerbating the cost of living crisis and leading to potential closures. The Federation of Small Businesses estimates that 93,000 small businesses could go out of business this year.

Question

What fiscal steps is the government taking to support businesses with energy costs? Speaking to businesses in my constituency over the past week, I have heard they are not finding sufficient help. The combination of cost of living crisis, energy costs, and business rates is pushing them towards a crisis. Do the Government accept that more will have to be done, particularly to help small companies renegotiate tariffs?

Answer from Gareth Davies

The hon. Lady raises an important point; this Government are very aware of the issues faced by businesses across the country. Last year, the energy bill relief scheme was unprecedented and time-limited as wholesale gas prices fell significantly. The current energy bills discount scheme supports businesses for another year while limiting taxpayers' exposure to volatile energy prices.

Partly answered

Not addressed: The specific ask about renegotiating tariffs was not addressed directly.

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Q2 Christine Jardine Lib Dem Edinburgh West
Economy Energy Business & Trade
Context

Small businesses in Edinburgh West are struggling due to high energy costs, exacerbating the cost of living crisis and leading to potential closures. The Federation of Small Businesses estimates that 93,000 small businesses could go out of business this year.

Question

Speaking to businesses in my constituency over the past week, I have heard they are not finding sufficient help. The combination of cost of living crisis, energy costs, and business rates is pushing them towards a crisis. Do the Government accept that more will have to be done, particularly to help small companies renegotiate tariffs?

Answer from Gareth Davies

The hon. Lady raises an incredibly important point; this Government are very alive to the issues that businesses face across the country. Last year, the energy bill relief scheme was unprecedented and time-limited as wholesale gas prices fell significantly. We have the current energy bills discount scheme which supports businesses for another year while limiting taxpayers' exposure to volatile energy prices.

Partly answered

Not addressed: The specific ask about renegotiating tariffs was not addressed directly.

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Q3 Robin Millar
Energy Business & Trade
Context

Hoteliers in Aberconwy are facing tripling bills despite falling market rates, suspecting unfair practices by suppliers. The Treasury had quickly acted during the pandemic but now hoteliers need support.

Question

The Treasury was quick to act during the pandemic when hoteliers told me that banks were directing them to premium lending products instead of the Government's coronavirus business interruption loan scheme. Now those same hoteliers are telling me they are seeing their bills tripling just as market rates drop below Government support levels, fearing unfair practices by suppliers. Can he please tell me what he is doing and can he meet me and sector representatives to bring common sense back to energy supply contracts?

Answer from Gareth Davies

My hon. Friend is a great champion of businesses in his constituency; I advise businesses always to contact suppliers to discuss their contracts. We are aware that some businesses have difficulties securing benefits from falling wholesale prices. In January, the Chancellor wrote to Ofgem which has now launched an investigation into the non-domestic energy market and we await its conclusions.

Partly answered

Not addressed: The specific ask about meeting sector representatives was not directly addressed.

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