Energy-intensive Industries
Debate between Lee Rowley and William Cash(3 years ago)
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Lee Rowley
I am grateful to my hon. Friend for her intervention. She is right to point out that there two factors here. One is the volatility and how the price has moved and the second is the compactor. The latter point is well made by colleagues from all parties. I know hon. Members will acknowledge that we have provided more than £2 billion of support in under a decade in price-release schemes for energy-intensive industries. I accept that there are significant concerns about the position we are in and where we are seeking to go. I hope that that will be acknowledged and contextualised within that reality.
When formulating where we do or do not go in future, I hope hon. Members will accept that the situation is extremely complicated. We have a very diverse group of energy-intensive industries—more than 70 sectors—as the hon. Member for Southampton, Test highlighted. We have a range of exposures, challenges around efficiencies and hedging strategies. My hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) pointed out the challenge of hedging strategies in recent months. Other forms of mitigation might be possible.
Lee Rowley
If my hon. Friend does not mind, I have to make progress. If I have a moment at the end, I will happily give way. This is a diverse sector, but we are seeking to see what may be possible. Announcements will be made in due course, should they be possible.
My hon. Friend the Member for Stoke-on-Trent South made a very good point about eligibility criteria. He is aware—it has been referenced already in the debate—that a review is under way at the moment. A consultation ran between June and August. There were more than 30 responses, and we will make further announcements in due course. He is absolutely right to highlight the longer term, as other hon. Members have done. The Prime Minister mentioned that point in his speech on Monday. He highlighted the importance of manufacturing, of energy-intensive industries and of making sure that electricity prices over the long term are in place, so that the viability and competitiveness of those industries are ensured. He highlighted nuclear. I know there are a range of views in the room about nuclear, although happily the majority of us seem to be in favour of making progress. I hope we can do so in the months and years ahead.
I want to give my hon. Friend a couple of minutes at the end of the debate to wind up, but I have a couple of points on the long term. Obviously, we are in a long-term process of decarbonising our electricity grid. That continues and will have a real impact over the long term for energy-intensive industries, and elsewhere. There is a lot of work under way, a lot of schemes, a lot of funding and a lot of Government subsidy that has already been announced, such as the £315 million industrial energy transformation fund, £40 million of which has already been awarded, including to steel companies such as Celsa, to brick manufacturers, to glass and to metal casting. The second stage will close on 6 December.