Draft Renewables Obligation and Electricity Capacity (Amendment) (British Industrial Competitiveness Scheme Excluded Electricity) Regulations 2026

Edward Morello Excerpts

Tuesday 27th October 2026 General Committees

[Edward Morello (West Dorset) (LD)]

The Liberal Democrats also support this statutory instrument. It is exactly the kind of relief for energy-intensive industries that we have been calling for, as these industries face some of the highest industrial electricity costs in the world. We must support manufacturing businesses to be more internationally competitive and to drive investment and economic growth across the UK.

However, the Liberal Democrats believe this support must not stop with large manufacturers. Hospitality businesses and other SMEs like those in West Dorset face the same high electricity costs but receive no equivalent relief, despite making up 99% of businesses in the UK. The Government must extend meaningful support to those outside the BICS-eligible sectors.

We also need faster action to reduce the link between electricity and gas prices. New solar power is 11% cheaper than the cheapest fossil fuel and onshore wind is 39% cheaper, yet our electricity pricing system still leaves British consumers facing the fourth highest energy prices globally. The Government have promised to look at decoupling electricity prices from gas, but the work needs to move faster so that households and businesses, not just energy-intensive industries, can benefit from cheaper renewable energy. The British industrial competitiveness scheme is a positive step, but we ask the Government to go further.