Energy Prices: Energy-intensive Industries

Lord Harrington of Watford Excerpts

Tuesday 6th May 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Lord is of course right to refer to the energy supercharger: £470 million is being contributed towards helping companies which are major energy users. Obviously, we look at the scheme and at whether any changes should be made, but as regards energy market reforms, we are certainly looking at a number of issues in relation to the electricity market. We are looking at issues to do with zonal pricing and the rebalancing of the cost of electricity and gas. But these decisions are not easy and there will be gainers and losers, so we have to take this very carefully. The ultimate answer to the noble Earl’s question is that we need to decarbonise as quickly as possible. That will give price stability and certainty to industry.

[Lord Harrington of Watford (Non-Afl)]

My Lords, I am chairman of Make UK, which represents 27,000 manufacturing businesses in the UK, which I think by mutual acclaim amount to between 10% and 15% of GDP. Our members are extremely worried because they face a 50% premium—at the absolute minimum—on the price of the electricity they have to pay compared to their competitors in Europe and elsewhere. The question to the Government is that industry prices are unregulated compared to consumer prices, and they are therefore much more open to the vagaries of the market. The Government have the industrial strategy, which, I hope, will be published in the next few weeks. Can the Minister reassure us that high energy prices and the uncompetitive nature that they provide for most of our members trying to export products and therefore grow the economy will be assisted in the industrial strategy?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to the noble Lord and thank him for the work he does on behalf of so many important industry companies. He will know that we are in discussion with organisations such as his own and many other business and industry interests. As he said, we hope to publish the industrial strategy within the next few weeks. I cannot give him any guarantees as to what will be in it, but I assure him that I understand the pressures on our industries, and we are considering those very carefully in government.