Electricity: Prices
The question
To ask the Secretary of State for Business and Trade, whether his Department has undertaken economic modelling on the potential impact of sustained high industrial electricity prices on the competitiveness of the manufacturing sector until 2035.
Answered by Sarah Jones
Competitiveness depends on a wide range of factors. The Government recognises that high industrial electricity costs negatively impact the competitiveness in UK manufacturing, in line with the academic literature.
The Government announced the British Industrial Competitiveness Scheme in the Industrial Strategy to reduce industrial electricity prices by c. £35 - £40/MWh from 2027 for around 7000 businesses. In addition, we also announced an increase in support for our most energy-intensive industries eligible for the British Industry Supercharger package, with an uplift of the Network Charging Compensation (NCC) scheme from 60% to 90%.
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