Commons Sense

House of Commons · Ministers' Questions

Fixed-term Energy Contracts: SMEs

Tuesday 23 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

  • Ministerial Department met with the Federation of Small Businesses to discuss fixed-term energy contracts.
  • Government remains committed to supporting small and medium-sized enterprises affected by fixed energy prices.
  • Suppliers are being urged to assist businesses facing increased energy costs under new discount schemes.

Topics (select to filter)

Questions & Answers

Q1 Martyn Day SNP
Energy Business & Trade
Context

SMEs in various regions are facing challenges with high energy costs, particularly those locked into fixed-term contracts during market peaks.

Question

What steps his Department is taking to support small and medium-sized enterprises on fixed-term energy contracts. The Federation of Small Businesses has found that more than one in 10 small firms fixed their energy prices during the market peak last year, meaning that now 93,000 small businesses across these islands could be forced to downsize, restructure or close their doors altogether.

Answer from Amanda Solloway

One of the things this Government are committed to do is helping small businesses. Both the Secretary of State and I have met the FSB to discuss this matter and to ensure that we are doing the best thing that we can for those on fixed-term contracts.

Partly answered

Not addressed: The specific ask from the FSB was not directly addressed, only general support mentioned without concrete actions or figures.

How: Commitment To Helping Small Businesses, Met With Fsb

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Q2 Alison Thewliss SNP
Energy Business & Trade
Context

More than one in ten small firms have fixed their energy prices during the market peak last year, leading to potential downsizing or closures for up to 93,000 businesses.

Question

The Federation of Small Businesses has found that more than one in 10 small firms fixed their energy prices during the market peak last year, meaning that now 93,000 small businesses across these islands could be forced to downsize, restructure or close their doors altogether. Will the Minister support the FSB's calls for action on this? It is unacceptable that businesses in Glasgow Central and beyond have been marooned on devastatingly high energy contracts.

Answer from Amanda Solloway

One of the things this Government are committed to do is helping small businesses. Both the Secretary of State and I have met the FSB to discuss this matter and to ensure that we are doing the best thing that we can for those on fixed-term contracts.

Partly answered

Not addressed: The specific ask from the FSB was not directly addressed, only general support mentioned without concrete actions or figures.

How: Commitment To Helping Small Businesses, Met With Fsb

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Q3 Martyn Day SNP
Energy Business & Trade
Context

Firms in various regions are paying three to four times the amount they were for energy under the previous scheme, leading to potential downsizing or closures.

Question

That was rather a non-answer. Since the downgrading of the energy bill relief scheme to the mair austere energy bill discount scheme, firms, many of them in my constituency, are paying three to four times the amount they were for energy under the previous scheme. If the Minister does not believe the figures she has just heard from the FSB, how many firms does she think will go to the wall as a result of these higher energy costs?

Answer from Amanda Solloway

This Government remain committed to supporting all small and medium businesses, and the whole business sector. We did the relief scheme and we now have the discount scheme as well. We are also implementing a high energy-intensive scheme. Both the Secretary of State and I are urging suppliers to have a look at these fixed rates and making sure that we can find a reasonable way forward.

Partly answered

Not addressed: The specific ask about firm closures was not directly addressed, only general support mentioned without concrete actions or figures.

How: Commitment To Supporting Businesses, Implementing High Energy-Intensive Scheme

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