Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans his Department has to reduce the incidence of ceramic manufacturers experiencing gas price spikes.

It is normal and necessary for wholesale gas prices to fluctuate in response to changes in demand. The resulting price signals encourage a flexible supply response, and help ensure that even when the system is stressed, consumer demand is met. This is a sign of a well-functioning commodity market. Consumers in the wholesale market can benefit from price fluctuations, with companies that flexibly increase or decrease their supply of gas maximising their profit by reacting to the price signals.

There is already a liquid forward market which allows large consumers to buy gas at a pre-agreed price and minimise their exposure to price spikes. This price is historically very stable.