Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to support the development of private wire networks for industrial parks to reduce transmission costs.

Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)

Network regulation and charging arrangements are a matter for Ofgem as the independent regulator. The Government’s role is to ensure Ofgem has the appropriate framework to make decisions in the interests of consumers.

While private wire arrangements may reduce reliance on the public network for individual users, they are unlikely to reduce overall transmission system costs, which are largely driven by fixed investment needed to meet peak demand, security and resilience requirements. In practice, such costs remain and would be redistributed across and recovered from remaining users. Ofgem’s Targeted Charging Review reformed network charges to ensure that all users of the electricity network make a fair contribution to its fixed costs and to address inefficiencies in the previous framework.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of the time taken for grid connection on the ability of businesses to lower energy costs through onsite generation.

Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)

Following Ofgem’s decision to increase the threshold for generation requiring a transmission impact assessment from 1MW to 5MW in England and Wales[1], it is now quicker and cheaper for businesses customers to install onsite generation. Ofgem’s Connections End‑to‑End Review will also improve customer service and reduce connection times for such projects[2].

1 https://www.ofgem.gov.uk/sites/default/files/2025-05/CMP446%20-%20Authority%20decision%20to%20approve%20WACM%201.pdf

2 https://www.ofgem.gov.uk/consultation/connections-end-end-review-updated-proposals-and-next-steps

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of energy costs on the viability of the data centre industry.

Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)

The Government recognises that UK electricity prices and grid connection delays are barriers to investment. The only sustainable way to reduce electricity bills is by reducing the UK’s exposure to volatile fossil fuel markets, which is why industrial energy affordability is aligned with the Clean Power 2030 mission.

For data centres, the Department for Business and Trade will consult on options to support electricity costs for projects in AI Growth Zones that reduce overall system costs, including in Scotland, Cumbria and the North East. For large projects, this could reduce operating costs and help to cut bills for consumers.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the Carbon Border Adjustment Mechanism on the energy-related costs of UK exporters.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

Charges under the EU Carbon Border Adjustment Mechanism (CBAM) for relevant goods entering the EU Single Market have applied since January 2026. UK businesses may face costs supporting EU importers to comply with the EU CBAM. The obligation to purchase EU CBAM certificates lies with EU importers. Costs on UK exporters are therefore uncertain and dependent on commercial and policy factors.

We are engaging with the EU on Emission Trading Scheme linking to facilitate a mutual UK-EU CBAM exemption.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what discussions he has had with the Secretary of State for Transport on energy costs associated with the electrification of commercial heavy goods vehicle fleets.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Government recognises the importance of electrification of transport, including heavy goods vehicles, in delivering transport decarbonisation targets, and is aware of the impact that energy costs are having on different sectors, including logistics.

Government is addressing wholesale and network costs through long‑term investment in clean, homegrown power to reduce exposure to volatile fossil fuel prices.

The Department for Business and Trade regularly engages across Government, including with the Department for Energy Security and Net Zero and the Department for Transport, on matters relating to the cost of the electrification of transport. The Secretary of State for Business and Trade and his ministerial team will continue to have regular discussions with all Cabinet colleagues on energy costs.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what support his Department provides to cold-storage logistics providers to manage peak-time energy tariffs.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Government recognises the importance of electrification of transport, including heavy goods vehicles, in delivering transport decarbonisation targets, and is aware of the impact that energy costs are having on different sectors, including logistics.

Government is addressing wholesale and network costs through long‑term investment in clean, homegrown power to reduce exposure to volatile fossil fuel prices.

The Department for Business and Trade regularly engages across Government, including with the Department for Energy Security and Net Zero and the Department for Transport, on matters relating to the cost of the electrification of transport. The Secretary of State for Business and Trade and his ministerial team will continue to have regular discussions with all Cabinet colleagues on energy costs.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps she is taking to ensure that port infrastructure has access to affordable energy for shore-side power projects.

Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)

The Government is taking action to reform the grid connections process to ensure port infrastructure, such as shore power, can access the energy they need for maritime.

In addition, the Government is currently considering policy options to accelerate connection dates for strategic demand customers, such as critical port sites, to ensure access to grid connections are not a blocker to growth and decarbonisation.

We also ran a Call for Evidence about ports’ energy needs to inform future maritime emissions policy, a summary of which will be published later this year.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what estimate his Department has made of the value of exemptions from green levies provided to energy-intensive industries in 2025-26.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Department has not published an estimate of the value of “exemptions from green levies” provided to energy‑intensive industries in 2025–26.

However, the published impact assessment for the British Industry Supercharger—which includes reliefs from certain renewable policy costs, such as the Renewables Obligation, Contracts for Difference and Feed-in Tariffs—indicates that, when taken together with the other Supercharger measures, eligible energy-intensive industries could receive overall electricity bill reductions of around £65 to £87 per MWh.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what estimate his Department has made of the average saving per business under current energy support packages.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Currently the Department for Business and Trade runs two energy support schemes. The British Industry Supercharger saves eligible businesses on average approximately £65 – £87/MWh on their electricity costs. The Energy Intensive Industries Compensation Scheme saves eligible businesses approximately £17/MWh on their electricity costs.

The British Industrial Competitiveness Scheme will save businesses up to £40/MWh when it comes into effect in April 2027, with an additional payment made in 2027 to cover the 2026/7 period.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what support is available to the automotive supply chain to manage the energy-intensive processes of battery component manufacturing.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Department for Business and Trade manages two electricity cost support schemes, the British Industry Supercharger and the Energy-Intensive Industries Compensation Scheme, to support eligible energy-intensive industries with the indirect costs of emissions levies and electricity policy and network costs.

Manufacturing of batteries and accumulators is a sector eligible for electricity price support through these schemes. These schemes provide support to around 550 manufacturing businesses across the whole of Great Britain, including businesses in the automotive sector and its supply chain.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps his Department is taking to support the glass manufacturing industry with gas energy prices.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

I recognise the pressure that gas prices place on glass manufacturers. While there is no dedicated scheme for industrial gas price relief, my Department keeps support for energy-intensive industries under review.

Many glass manufacturers are eligible for our electricity price support schemes like the British Industry Supercharger. My officials regularly engage with British Glass and individual businesses to discuss how the Government can support the sector and ensure any concerns are heard.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the effectiveness of the British Industry Supercharger scheme.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Since 1 April 2024, eligible Energy-Intensive Industries have benefited from the British Industry Supercharger, which tackles carbon leakage by bringing industrial electricity costs closer in line with those in neighbouring countries. Subsequent evidence commissioned by the Government identified that the electricity price gap between Great Britain and other countries still presented a carbon leakage risk.

In the Modern Industrial Strategy, we announced an uplift of the Network Charging Compensation Scheme from 60% to 90% from 1 April 2026 to reduce the gap by an additional £8–10/MWh. The Government will review the Supercharger in 2029 to assess its ongoing effectiveness.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what support is available to the ceramics manufacturing sector to mitigate the cost of industrial gas.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

I recognise the pressure that energy costs place on ceramics manufacturers. A small number of ceramic firms are currently eligible for the British Industry Supercharger, which provides electricity cost relief and these companies are benefiting from the recent uplift to the Network Charging Compensation Scheme. I encourage the ceramics sector to engage with the upcoming review of the Supercharger. There is no equivalent scheme for industrial gas price relief, but my department always keeps industrial energy support under review. My officials, other ministers, and I engage regularly with the ceramics sector, including with Ceramics UK and individual businesses to discuss how the Government can support the sector.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what meetings and discussions his Department has had with the ceramics industry regarding energy cost relief.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

I recognise the pressure that energy costs place on ceramics manufacturers. A small number of ceramic firms are currently eligible for the British Industry Supercharger, which provides electricity cost relief and these companies are benefiting from the recent uplift to the Network Charging Compensation Scheme. I encourage the ceramics sector to engage with the upcoming review of the Supercharger. There is no equivalent scheme for industrial gas price relief, but my department always keeps industrial energy support under review. My officials, other ministers, and I engage regularly with the ceramics sector, including with Ceramics UK and individual businesses to discuss how the Government can support the sector.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of energy costs on the retention of manufacturing jobs in the West Midlands.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government recognises that energy costs are an important factor in the competitiveness of manufacturing businesses and in the retention of skilled jobs, including in the West Midlands.

From April 2027, the British Industrial Competitiveness Scheme will reduce electricity costs for eligible manufacturing businesses in Industrial Strategy growth sectors and their foundational supply chains. In addition, the British Industry Supercharger is already reducing electricity costs for eligible energy- intensive industries in the West Midlands, including in sectors such as brick production, glass production, plastic manufacturing and paper manufacturing.

The Government continues to engage closely with businesses to monitor cost pressures, including those arising from the situation in the Middle East.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what support is available to the chemical manufacturing sector to mitigate the cost of industrial gas.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government does not currently provide support for the cost of industrial gas, including to the chemicals sector. However, we are continuing to work with industry in order to identify and explore ways in which the business environment can be improved for our foundational industries.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what plans he has to consult with British Chambers of Commerce on the design of future energy cost mitigation policies.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government is committed to working closely with industry to support business competitiveness and mitigate energy costs and regularly meets with business representative organisations, such as the British Chambers of Commerce.

The design of the British Industrial Competitiveness Scheme has been informed by ongoing engagement with stakeholders, including the recent consultation on scheme eligibility and open consultation on regulatory changes and scheme delivery.

The British Industry Supercharger and the Energy-Intensive Industries Compensation Scheme will both be reviewed this year. I encourage the British Chamber of Commerce and others to engage with the upcoming public consultation.

Found: Hastings and Rye) Andrew Pakes (Labour; Peterborough) David Pinto-Duschinsky (Labour; Hendon) Gareth Snell