Oral Answers to Questions

John Whittingdale Excerpts

Tuesday 15th July 2025 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

8. What steps his Department is taking to help reduce industrial electricity prices.

[Sir John Whittingdale (Maldon) (Con)]

25. What steps his Department is taking to help reduce industrial electricity prices.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)]

We understand that high energy bills are a challenge for businesses, and particularly energy-intensive companies. We are clear that, in the long term, our mission to deliver clean power is the only way to bear down on that cost. But while we get there, we are providing the support needed through the British industrial competitiveness scheme and the supercharger scheme, protecting over 7,000 businesses.

[Miatta Fahnbulleh]

I gently remind the right hon. Member that industrial energy prices rocketed on the Conservatives’ watch. Gas prices for non-domestic companies went up by 170%, which was catastrophic for UK plc. We are taking action to support businesses through our sprint to clean power and, critically, the measures we are providing through the British industrial competitiveness scheme. Those measures have been supported by Make UK, the British Chambers of Commerce, UK Steel and the Chemical Industries Association. The Conservatives dithered, delayed and did nothing to support businesses; we are cracking on and getting on with the job.

[Sir John Whittingdale]

On Friday, I visited C&M Precision Ltd, a small manufacturing company in my constituency. Electricity represents easily its biggest cost. What is the Minister doing to listen to small and medium-sized enterprises like C&M who feel that their voice is simply not being heard?

[Miatta Fahnbulleh]

We are listening to businesses, particularly small and medium-sized businesses. We have heard companies complain, for example, about being locked into expensive fixed-term contracts. That is why Ofgem is working to deliver blend-and-extend contracts so that businesses can benefit from lower prices. We have heard their frustration at the lack of a redress system, which is why last December we expanded the ombudsman service to 99% of businesses so that they can get redress and financial awards of up to £20,000. We have also heard their frustration about energy brokers, which is why we have consulted on introducing regulation of third-party intermediaries. We will respond in due course.