Commons Sense

House of Commons · Westminster Hall

Energy-intensive Industries

06 July 2022 · 4 other contributors · 4,260 words

Opened by Judith Cummins Lab Bradford South

Responding minister: Lee Rowley

EnergyBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

Judith Cummins raised concerns about energy-intensive industries in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about rising energy prices affecting energy-intensive industries significantly.
  • Energy-intensive businesses face dramatic increases in energy costs, from 7 million to 35 million.
  • Government urged to introduce measures supporting energy-intensive industries facing high electricity prices.

Key requests to Government

The Government must introduce a proper package of measures to support energy-intensive industries, including addressing the issue of high industrial electricity prices in the UK. The Minister should outline when reports on annual energy prices and bill impact will be reinstated and provide updates on any progress made in conversations for affordability and fairness.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Judith Cummins Lab Bradford South

Over the past few months, there has been increasing concern and panic about the energy crisis and huge rises in gas and electricity bills. Energy-intensive businesses are facing rising energy prices that have caused some to go from £7 million to £35 million in a short period of time. Industries such as chemicals, steel, ceramics, cement and shipping face unique challenges due to their extreme energy intensity. The UK's glass industry faces an increasingly challenging position with energy costs tripling and gas bills quadrupling, putting manufacturers at a competitive disadvantage.

Other contributors (4)
  • Daniel Poulter

    The hon. Member highlighted the difficulties that rural businesses face due to a significant increase in oil costs for heating their buildings and offices, asking the Minister to look specifically at supporting these businesses with a solution.

  • Jack Brereton Con Stoke-on-Trent North

    The ceramics industry in Stoke-on-Trent has been successful, but now faces serious challenges due to energy costs. Most of the industry is too small and does not qualify for Government support.

  • Marie Rimmer Lab St Helens South and Whiston

    She thanked her hon. Friend for securing the debate, emphasising that once energy-intensive industries leave it is difficult to bring them back. She urged the Government to support these businesses before it becomes too late.

  • Mike Amesbury

    He mentioned a similar industry in his constituency, Tata Chemicals Europe, which shares the same concerns as those expressed by the debate's proponent regarding the challenges faced by energy-intensive industries.

Government Response

Lee Rowley

It is a pleasure to serve under your chairmanship, Mr Stringer. I am grateful to the hon. Member for Bradford South (Judith Cummins) for calling this debate today. It is an important issue and it is right that we debate it in the detail and depth it deserves. Energy-intensive industries are important to the United Kingdom and provide resilience within our supply chains over the long term, represent British manufacturing, and maintain a historic link to our past and proud energy and manufacturing background. I have spent much of my time as Minister talking weekly with representatives from these industries, visiting factories in various regions, and engaging in open dialogue to understand their concerns. The Government recognise challenges faced by these industries due to global circumstances such as the war in Ukraine leading to price spikes and market volatility. We brought forward the British energy security strategy in April, which includes elements addressing long-term support for industry. Compensation schemes have been welcomed, but there is a need to continue strategic dialogue about further reasonable and proportionate measures over time. The Government has committed hundreds of millions of pounds in recent weeks, and additional consultations are expected shortly.

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