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MPs Call For Business energy Price Cap

With the rising wholesale price of energy, some small and medium size enterprises (SMEs) are just days away from production being halted.

The well documented Domestic Energy Price Cap was introduced in July 2018 in a bid to protect Households from the rising cost of energy, exactly why the Business Energy Market was not considered at this time is still anybody’s guess, but that might be about to change if Labour and Conservative MPs are successful.

The government has been told by key leaders of the UK’s energy intensive manufacturers such as steel, ceramics, glass and paper, that unless something is done about soaring wholesale gas prices, production at some factories could be about to stop.

Talks with secretary Kwasi Kwarteng on Friday did not result in immediate solutions or commitments.

Gareth Stace, CEO of UK Steel Corporation, stated to Channel 4 News: “What we’re asking Kwasi Kwarteng today to do on wholesale prices is just to step in, to alleviate that pressure in the short-term, just like in, say, Portugal or Italy. Their governments are already investing many billions of euros, to help their industries and the UK government has yet done nothing.”

“We can’t wait until Christmas and beyond. Or even a few weeks. We need action now, it needs to be swift, decisive action,” Mr Stace said.

“At the moment, there’s an energy crisis,” Mr Stace added. “If government does nothing, tomorrow there’ll be a steel crisis.”

“Some companies are just days away from halting production,” says Mr. Dalton of British Glass.

Director general Andrew Large at the Confederation of Paper Industries also said it was clear there were “serious risks” of factory stoppages because of the price of gas being too high to bear. He warned that this would create a knock-on effect through the supply chain into consumer retail.

In a joint call, Conservative and Labour MPs want more support from the government to solve the gas crisis.

A couple of backbench members, Andrew Bridgen, MP for North West Leicestershire and Miriam Cates, Penistone & Stockbridge back the government providing short-term support for energy-intensive industries. Conservative MP, Jo Gideon for Stoke-on-Trent Central, told the BBC that “potters, brickmakers, and material scientists” also required government support.

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