Asked by: Will Stone (Labour - Swindon North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether her Department has considered reallocating policy costs and levies on non-domestic electricity bills for energy-intensive businesses, particularly those operating in sectors such as defence and advanced manufacturing.
Answered by Blair McDougall - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade) (Jointly with the Department for Energy Security and Net Zero)
The Government recognises the pressure high electricity costs place on businesses. Eligible energy-intensive businesses in Scotland can benefit from the British Industry Supercharger, which provides relief from certain electricity policy costs and network charges. The British Industrial Competitiveness Scheme will also support over 10,000 businesses across Great Britain, reducing electricity costs by up to £40 per megawatt hour—an average discount of around 25%. We are working closely with the Department for Business, Industry, Science and Trade to explore further options to reduce non-domestic electricity costs. In the longer term, delivering clean power will strengthen energy security and reduce exposure to volatile fossil fuel markets.
Asked by: Will Stone (Labour - Swindon North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps her Department is taking to limit the impact of non-commodity costs on non-domestic energy bills.
Answered by Blair McDougall - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade) (Jointly with the Department for Energy Security and Net Zero)
The Government recognises the pressure high electricity costs place on businesses. Eligible energy-intensive businesses in Scotland can benefit from the British Industry Supercharger, which provides relief from certain electricity policy costs and network charges. The British Industrial Competitiveness Scheme will also support over 10,000 businesses across Great Britain, reducing electricity costs by up to £40 per megawatt hour—an average discount of around 25%. We are working closely with the Department for Business, Industry, Science and Trade to explore further options to reduce non-domestic electricity costs. In the longer term, delivering clean power will strengthen energy security and reduce exposure to volatile fossil fuel markets.
Asked by: Will Stone (Labour - Swindon North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of basing the energy cap for renewable energy.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government has made no such assessment. The criteria around the setting of the energy price cap is a matter for Ofgem.
On Wednesday 27 August, Ofgem confirmed the Q4 price cap will be set at £1,755 per year for a typical dual fuel household paying by Direct Debit – an increase of £35 from the current price cap (£1,720). This would cost households an extra £2.93 a month for three months. We know that any price rise is a concern for families. Wholesale gas costs in the price cap are 77% above their levels in the year up to Russia’s invasion of Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy.
That is why the only answer for Britain is this Government’s mission to get us off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control, to bring down bills for good.