Oral Answers to Questions

Debate between Robin Millar and Gareth Davies

Tuesday 9th May 2023 Commons Chamber

[Gareth Davies]

The hon. Lady raises an incredibly important point, and this Government are very alive to the issues that businesses face across the country. She will be aware that, last year, the energy bill relief scheme was unprecedented in its nature and scale, and that the Government were always clear that that would be time limited and intended as a bridge for businesses as wholesale gas prices come down. Those prices have now come down quite significantly, but we do have the energy bills discount scheme, which strikes the right balance between supporting businesses for another year, but also limiting the taxpayers’ exposure to volatile energy prices.

[Robin Millar (Aberconwy) (Con)]

The Treasury was quick to act during the pandemic when hoteliers in Aberconwy told me that banks were directing them to their premium lending products instead of the Government’s coronavirus business interruption loan scheme. Now those same hoteliers are telling me that the energy supply market seems to have failed. They are seeing their bills tripling just as market rates drop below Government support levels. They fear that the supplier’s thumb is on their side of the scales. None of this will be new to the Minister, so can he please tell me what he is doing and can he meet me and sector representatives to make sure that some common sense is brought back to energy supply contracts?

[Gareth Davies]

My hon. Friend is a great champion of businesses in his constituency. In the first instance, I advise businesses always to contact suppliers to discuss their contracts. We are alive to the fact that some businesses are having difficulties securing the benefit of falling wholesale prices from their energy suppliers. In January, the Chancellor wrote to Ofgem, which oversees the energy market for consumers, and Ofgem has now launched an investigation into the non-domestic energy market. We await its conclusions, and, at that point, I would be very happy to meet my hon. Friend.