⚡ Energy Prices: Energy-intensive Industries

• Urgent Question Raised: Gareth Snell from Stoke-on-Trent Central asked the Secretary of State for Energy Security and Net Zero about reducing energy prices for energy-intensive industries, highlighting the ceramics sector’s struggles.

• Government’s Recognition: Sarah Jones, the Minister of State, acknowledged the challenges high energy prices pose to UK businesses, particularly in the ceramics sector. She emphasized ongoing discussions with industry stakeholders and local MPs to find solutions.

• Long-Term Strategy: The government aims to reduce energy prices through clean, home-grown energy under the “clean power 2030” target, promoting the use of electricity over fossil fuels in industries.

• Current Actions: The government has introduced the “British industry supercharger,” which exempts eligible energy-intensive firms from certain renewable energy policy costs. However, this does not fully cover the ceramics sector.

• Recent Policy Reforms: The government announced reforms last month to expedite grid connections for clean energy projects, aiming to unlock significant private investment and remove delays caused by “zombie projects.”

• Ceramics Sector Concerns: Gareth Snell expressed concern over the ceramics sector’s decline, citing recent factory closures in his constituency and questioning the effectiveness of current support measures. He urged for immediate and specific actions to support the sector.

• Government’s Response: Sarah Jones assured no additional costs would be placed on the ceramics industry and promised to consider all policy options suggested by Ceramics UK. She emphasized the government’s commitment to a modern industrial strategy to support such industries.

• Political Debate: Andrew Bowie from the Conservative Party criticized the government’s energy policies, arguing that high energy costs and policies are driving job losses and industry closures. He called for a reassessment of the approach to net zero.

• Defence of Government Policy: Sarah Jones defended the government’s approach, highlighting failures under the previous administration and the new government’s commitment to an industrial strategy and clean energy.

• Broader Industry Impact: Other MPs, including Liam Byrne and James MacCleary, raised concerns about the competitiveness of other energy-intensive industries like steel and manufacturing due to high energy costs.

• Commitment to Net Zero: The government reiterated its commitment to net zero by 2030, aiming to provide economic and energy security, and supporting industries through various initiatives.

• Regional and Sector-Specific Issues: Concerns were raised about the impact of energy policies on specific regions and industries, such as whisky in Scotland and manufacturing in Northern Ireland, with the government promising continued engagement and support.

The session shows a significant level of disagreement but also includes moments of consensus and cooperation. Here’s a detailed analysis:

1. Disagreement between Gareth Snell and Sarah Jones: Gareth Snell, representing Stoke-on-Trent Central, expresses frustration and urgency about the ceramics industry’s plight due to high energy costs. He criticizes the government’s current measures as insufficient and irrelevant, pointing out that the supercharger scheme does not benefit the ceramics sector and suggesting immediate reforms. He asks for specific commitments to prevent further job losses. Sarah Jones acknowledges the challenge but does not commit to the immediate changes Snell demands, indicating disagreement over the urgency and nature of the interventions needed.

   Example: Gareth Snell: “We have been constantly promised jam tomorrow…jam is no good if you are dead, and the ceramics sector in Stoke-on-Trent is on life support.” Sarah Jones: “We are looking to do more and to support, and we will come back. I completely understand his point about the timing and the need to act quickly.”

2. Disagreement from Andrew Bowie: The opposition from the Conservative side is evident in Andrew Bowie’s strong critique of the government’s approach to energy and net zero, arguing that the policy is leading to job losses and higher costs. He accuses the government of ideological zealotry and calls for a change in direction.

   Example: Andrew Bowie: “This Government are wilfully destroying British industry in oil and gas, ceramics, chemicals and metals when they know that it will not make a difference to global emissions.” Sarah Jones: “The Conservative party is hiding behind this new-found scepticism of net zero to conceal its complete failure to support and grow our foundational and manufacturing industries.”

3. Cross-party and inter-party disagreements: There are criticisms from various MPs across the political spectrum about the effectiveness of the government’s policies on energy-intensive industries. For instance, Liam Byrne (Labour) and James MacCleary (Liberal Democrat) both highlight the need for lower energy prices to maintain competitiveness, but with different emphases on how this should be achieved.

   Example: Liam Byrne: “We have recommended that the Government bring energy prices in line with our European competitors; can the Minister tell us today that she shares that ambition?” Sarah Jones: “We are looking at what support we can provide and how we can make our country more competitive.”

4. Moments of Consensus and Collaboration: Despite the disagreements, there are also instances of cooperation and shared goals. Sarah Jones acknowledges the contributions of Gareth Snell and other MPs in representing their constituencies and working collaboratively. She also expresses willingness to continue discussions and explore further support options.

   Example: Sarah Jones: “I thank my hon. Friend for raising the issue. He is a tireless champion for workers and businesses in his constituency. We have spoken and will continue to speak regularly about these issues.”

5. Detailed responses and solutions: The Minister provides detailed responses to various concerns, indicating an intention to address the issues raised but not immediately alleviating all concerns expressed by the MPs.

Given these points, a rating of 3 reflects a session with notable disagreements across parties about the government’s approach to energy-intensive industries, yet it also shows a commitment to dialogue and a willingness to consider further solutions. The disagreements are significant but balanced with efforts to find a middle ground or further discuss the issues in future meetings.