Oral Answers to Questions

Debate between Alan Whitehead and Jackie Doyle-Price

Tuesday 25th October 2022 Commons Chamber

[Jackie Doyle-Price]

The hon. Lady is absolutely right—businesses deserve certainty, and we will give that to them as soon as we can, and well before the end of the scheme. It is important that we make sure, because this is a very expensive scheme for taxpayers, that we give that support where it is needed, at best value for the taxpayer. That means that we need to target it at those businesses that are at most risk of being damaged. I hope that that gives the hon. Lady some reassurance in the meantime—we are determined to give some advice before the end of the year.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The Minister has announced what will happen if businesses have fixed-term energy contracts running into the period of the support scheme, but she has not said anything about what would happen where businesses are forced to sign new fixed-term contracts during the term of the scheme that run on after it has ended. Many businesses and firms might face ruin if they sign new, sky-high fixed-term contracts for which they know that there is support only for perhaps a few months of it. They need assurances now, not at the end of April. What assurances can the Minister give that proper measures will be urgently put in place to support businesses under such circumstances?

[Jackie Doyle-Price]

I repeat that we will announce conclusions before the end of the year, which provides sufficient notice before the end of the scheme. The hon. Gentleman will appreciate that we need to give support that is as targeted as possible, given the cost of the scheme. In respect of the point that he made regarding contracts, Ofgem will play a key role in making sure that energy suppliers behave honourably in the scheme. It remains our intention that businesses should receive the support that they deserve and that pricing is fair.