Industry: Electricity

(asked on 7th December 2018) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans the Government has to close the gap between industrial electricity prices in the UK and those in France and Germany.


Answered by
 Portrait
Claire Perry
This question was answered on 17th December 2018

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.

As set out in the recent energy speech by the Secretary of State for Business, Energy and Industrial Strategy, the Government recognises that industrial electricity prices are currently higher than those in some competitor economies. The principles set out in the speech are intended to deliver policies that will lower the costs of the electricity system permanently and further details will be set out in a White Paper next year.

At the same time as reducing the costs of electricity production, the Government wants to increase industrial energy efficiency. As announced in the Budget on 29 October 2018, £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector. Furthermore, our Industrial Heat Recovery Support Programme is now open to applications for feasibility and/or preliminary engineering studies. We will publish our response to the consultation on widening eligibility for the exemption schemes for energy intensive industries in due course.

Meanwhile, we are continuing to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, of which £271m has been provided to the steel sector in compensation to the steel sector as of 30 November 2018.

We welcome the recent report by UK Steel regarding high electricity prices and will give its recommendations careful consideration.

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