Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if he will make a comparative assessment of industrial electricity prices in (a) the UK, (b) France and (c) Germany.

The wholesale price of electricity in power markets is set by the last (i.e. most expensive) technology needed to meet overall demand – known as the marginal plant. In the UK, the marginal plant is currently gas power stations. Gas is an internationally traded commodity, and the UK is a large importer of gas, so electricity prices in Britain are much more exposed to changes in the international gas market.

This exposure strengthens the Government’s belief that the only way to guarantee our energy security and protect billpayers permanently is to speed up the transition away from fossil fuels and towards homegrown clean energy.

From 19 December 2024 Small and Medium Enterprises (SMEs) with fewer than 50 employees can now access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of British businesses can now access this service with outcomes ranging up to £20,000 in financial awards. We also understand that some UK industries are struggling with the cost of energy. As such, as part of our Clean Energy Industries Plan, we have announced that from 2027 a new Industrial Strategy Energy Support Scheme will reduce electricity costs by £35-40/MWh up to 2030. Over 8,000 businesses will see their electricity costs drop by around 20-25% under a new exemption scheme, bringing their costs more closely in line with European competitors.