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Energy-intensive Industries
06 July 2022
Lead MP
Judith Cummins
Bradford South
Lab
Responding Minister
Lee Rowley
Tags
UkraineEnergyBusiness & Trade
Word Count: 4260
Other Contributors: 4
At a Glance
Judith Cummins raised concerns about energy-intensive industries in Westminster Hall. A government minister responded.
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:
Lead Contributor
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.
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.
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
Government Response
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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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.