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 for the potential effect of the (a) energy intensity test and (b) trade intensity test for sectoral qualification to the Energy and Trade Intensive Industries (ETII) Scheme on energy-intensive enterprises which are (i) within sectoral codes that meet one but not both of the tests and (ii) able to meet both tests as individual businesses but excluded from the ETII Scheme for falling outside of the qualifying sectoral codes; and if he will make a statement.

The Energy Bill Relief Scheme review considered qualitative and quantitative evidence, and input from businesses and stakeholders on sectors that may be most affected by rising energy prices based on energy and trade intensity. Eligible sectors have to operate in the top 20% for energy intensity and top 40% for trade intensity. Standard Industrial Classification codes allowed Government to define a sector hierarchy, with energy and trade thresholds set to balance delivering targeted support at lower overall cost, while capturing a broad enough share of affected companies. Energy intensive sectors that are not significantly trade intensive will not be eligible for support.

Some businesses are highly exposed to both energy prices and international competition and are unable to pass through or absorb these costs and without the subsidy there’s likely to be a competitive disadvantage.