Asked by: Baroness Redfern (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether they plan to bring forward the date of launching the British Industrial Competitiveness Scheme so that businesses facing problems with energy costs can benefit before 2027.
Answered by Lord Stockwood - Minister of State (HM Treasury)
The Government recognises the importance of action to tackle high energy costs for businesses. The British Industrial Competitiveness Scheme (BICS) will exempt eligible businesses from indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market. Implementation timelines for BICS are determined by the operating cycles of those three schemes. April 2027 is therefore the earliest that BICS can feasibly be delivered.
Asked by: Jess Asato (Labour - Lowestoft)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to extend support for anaerobic digestion plants due to expire under the Renewables Obligation.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government currently supports anaerobic digestion (AD) through the Renewables Obligation (RO), Non-domestic Renewable Heat Incentive, Feed-in-Tariffs, and the Green Gas Support Scheme (GGSS). The Government has no plans to extend the RO when it comes to an end from 2027 onwards. Since the RO was launched in 2002, the energy landscape has evolved, and the scheme no longer provides the correct market incentives or value for money for electricity generation.
For biomethane from AD, the Government expects to consult this financial year on a policy framework to follow the GGSS, which closes to applications in 2028.
Asked by: Harriett Baldwin (Conservative - West Worcestershire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to ensure that the uplift in compensation for energy intensive industries does not lead to increased costs for other electricity consumers.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government will bear down on costs across the energy system to ensure that the uplift of the relief offered by the Network Charging Compensation Scheme does not lead to a net increase in electricity bills for domestic and non-domestic energy consumers. The Department for Energy Security and Net Zero has published a consultation seeking views on the proposal to amend the inflation indexation of the Renewables Obligation (RO) from the RPI to the CPI. If implemented, this may contribute to that goal.
Asked by: Harriett Baldwin (Conservative - West Worcestershire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the uplift in Network Charging Compensation Scheme relief on small and medium-sized manufacturers not eligible for EII status.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government will bear down on costs across the energy system to ensure that the uplift does not lead to a net increase in electricity bills for domestic and non-domestic energy consumers, including small and medium scale non-energy intensive manufacturers. Additionally, in October 2025, the Department for Energy Security and Net Zero published a consultation seeking views on the proposal to amend the inflation indexation of the Renewables Obligation (RO) from the RPI to the CPI. This may contribute to this goal.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans she has to (a) abolish the Carbon Price Support mechanism and (b) introduce further measures to reduce electricity costs for energy-intensive industries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government’s Industrial Strategy published in June 2025 announced that from 2027, a new British Industrial Competitiveness Scheme will reduce electricity costs by c.£35-40/MWh and support thousands of businesses. The scheme will benefit manufacturing electricity intensive frontier industries in the Industrial Strategy and foundational manufacturing industries in their supply chains. Eligible businesses will be exempt from paying the costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market. The scheme will bring GB electricity costs more in line with other major economies in Europe, and level the playing field for GB businesses.
The government will also continue support for the Energy-Intensive Industries Compensation Scheme to support energy efficiency, decarbonisation, and technical innovation.
The government keeps all taxes under review and will continue to review Carbon Price Support beyond the announced rates as part of the policy making process.
Asked by: Charlotte Cane (Liberal Democrat - Ely and East Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what economic analysis his Department has conducted on the potential impact of non-price factors in decisions on whether sub-100MW bioenergy power stations currently supported by Renewable Obligation Certificates will receive transitional support from 2027.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Small scale biomass generators have received many years of subsidy support under the Renewables Obligation scheme. These assets begin to roll off the scheme from 2027. Any assessment of further support must fully take into account value for money (including consumer bill impacts), electricity system and broader considerations – such as environmental impacts, which are a matter for Defra.
Biomass electricity generation is often more expensive than alternatives and reducing energy bills is a priority for this Government.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to take steps to encourage methane gas electricity generators to capture landfill gas when the renewables obligation certificates scheme are phased out in 2027.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government is aware that the operations of landfill gas generators may be affected by the phasing out of support under the Renewables Obligation (RO) scheme.
Environmental permits mean that landfill operators will be required to manage methane emissions in any event. Whilst emissions from waste are a matter for the Department for Environment, Food and Rural Affairs (DEFRA), officials from both DEFRA and DESNZ are assessing the impact that the end of RO accreditation will have on these generators to consider whether further action is required.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 25 June 2025 to Question 60503 on Housing: Construction, what the cost components are of the stability of energy costs in manufacturing.
Answered by Matthew Pennycook - Minister of State (Housing, Communities and Local Government)
Manufacturing energy costs are comprised of the wholesale price, network charges, and policy costs used to fund renewables and other initiatives including the Contracts for Difference, Renewables Obligation, Feed-in Tariff, Capacity Market charges, Nuclear RAB, and more. The Climate Change Levy is also applied to industrial energy bills, and there are indirect costs associated with the Emissions Trading Scheme and Carbon Price Support.
Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, with reference to p.30 of The UK's Modern Industrial Strategy, published on 23 June 2025, what his Department's timetable is for publishing its consultation on a new British industrial competitiveness scheme.
Answered by Sarah Jones - Minister of State (Home Office)
From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour, which could benefit over 7,000 electricity-intensive businesses in manufacturing sectors, like automotive, and foundational manufacturing industries in the supply chains, like chemicals. Eligible businesses will be exempt from paying the costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market. My department is working towards launching a consultation to determine eligibility which will open shortly. The scheme is subject to review in 2030.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department has made an estimate of the carbon footprint of importing wood pellets in the last 10 years.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Emissions from importing wood pellets are constrained by biomass sustainability requirements. The supply chain emissions threshold for large scale biomass electricity generators to receive support is capped at 55.6gCO2e/MJ. This threshold will be tightened further under proposed future arrangements with Drax to 36.6 gCO2e/MJ.
Compliance with sustainability criteria under the Renewables Obligation and Contracts for Difference schemes are a matter for Ofgem, as the independent energy regulator, and LCCC, as the counterparty to the CfD.
Large scale biomass generators, such as Drax, do also publish emissions data as part of their annual ESG reports.