Oral Answers to Questions
Zöe Franklin Excerpts(3 weeks ago)
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Dr Al Pinkerton (Surrey Heath) (LD)
Zöe Franklin (Guildford) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
We recognise that high energy costs remain a significant pressure on UK businesses. We are acting now through the British industry supercharger and the new British industrial competitiveness scheme to reduce electricity costs for energy-intensive sectors, while delivering our clean power 2030 mission to cut bills for good. We also intend to consult on further options to reduce costs and make low-carbon heat economically competitive.
Chris McDonald
The hon. Gentleman is quite right to point out the impact of energy costs on small businesses. As we have seen, that has been largely driven over many years by the linkage between energy costs and gas prices, which is something that this Government are determined to deal with as we pile on renewable energy as part of our clean power mission. UK gas costs are competitive with Europe after policy costs are included, but of course we want to remove businesses from having to rely on the whims of the fossil fuel market and enable them to rely on low-cost, secure, home-grown energy.
Zöe Franklin
A third-generation advanced manufacturer in my Guildford constituency invested in a solar-covered, energy-efficient factory to cut emissions and expand, yet overall operating costs have risen sharply, including business rates increasing from £130,000 to £570,000. That business is doing everything right, including switching to renewables and working to become more efficient. On top of the crippling hike in business rates, the straw that breaks the camel’s back is energy costs, so what discussions has the Secretary of State had with the Chancellor about reducing industrial energy costs and the associated costs so that firms investing in clean growth are properly supported?
Chris McDonald
Of course, it is central to the Government’s policy that businesses are incentivised to invest in renewable energy and electrification where that is possible, so that they can access the lower-cost electrical energy that is coming on stream as part of our 2030 clean power mission. The hon. Lady mentioned that the business was a manufacturing business, so it is possible that it could qualify for our British industrial competitiveness scheme, which we will bring forward in 2027. The results of the consultation on that scheme will be published shortly.
Oral Answers to Questions
Zöe Franklin Excerpts(1 year, 4 months ago)
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Michael Shanks
Batteries will play an important part in the short-duration storage required for the energy system we are building for the future. It is a question of balance. Communities will be engaged in the consultation process, and I will be convening a roundtable with providers of battery technology and other short-duration storage in the next few months to learn both from projects that have worked well and from projects on which we could do better in future. I will happily share any information from that with my hon. Friend.
Zöe Franklin (Guildford) (LD)
Ed Miliband
The hon. Lady raises the important issue that, as a country, we are massively underpowered on community energy. As part of the GB Energy local power plan we will be trying to change that, learning from countries such as Germany and Denmark, which do much better than us. We will certainly look at the issues she raises.