Energy crisis: Conservative MPs join Labor in demanding support for heavy industry | energy industry

Conservative MPs joined divorced Industry leaders are advocating the support of heavy industries as energy costs rise.

Gas prices are up 250% since January, and while households are partially shielded from this increase by the price cap, customers are expected to experience massive spikes in the spring.

Energy companies have warned that bankruptcy of suppliers could increase costs to households as they described the price cap as “unfit for purpose” and “too good to believe”. Paul Richards, chief executive of Together Energy, which he said is currently in losses, told BBC Radio 4: “Price caps as a mechanism are not appropriate for the industry, and not suitable for customers.

“When the opposite situation arises and the wholesale price begins to fall sharply, the price that will be passed on to customers in April may seem like a very bad deal, while at the moment, the cap price seems like a price also good to be honest.”

He said that while the cap would protect customers in the short term, failing suppliers would mean businesses and households incur between £1 billion and £3 billion in costs.

comes after bThe Secretary of Employment, Kwasi Quarting, held a meeting With leaders in energy-intensive industries, including representatives from the paper, glass, cement, lime, ceramics, chemical and steel industries, although it is understood that the talks failed to find a solution to the crisis.

The head of the Intensive Energy Users Group (EIUG), Dr Richard Lees, said he would welcome the opportunity to meet Kwarteng. Lees said he proposed three technical solutions at the meeting, asking the government to consider cost containment measures, network cost apportionment, and emergency measures to “prevent permanent damage to plants and expensive equipment” if the plant needs to close quickly.

Conservative MPs have also joined calls for government intervention in the wholesale crisis. Andrew Bridgen, Conservative MP for North West Leicestershire, said he would support the government’s intervention to provide short-term support to energy-intensive industries. “However, what we need … is a long-term sustainable energy policy based on diversified sources of supply,” he told the BBC.

The issue was also raised by Conservative MP Miriam Coates, who called on ministers to consider options to rescue the steel industry, which she said was under “serious threat” due to “severe” energy costs. Meanwhile, Joe Gideon, the Conservative MP for the central Stoke-on-Trent district, told the BBC that “potters, brickmakers and materials scientists” also needed government support.

After Friday’s meeting, industry leaders Contrasted with the failure of the UK government To mitigate the crisis, the position taken by European governments. Gareth Steess, UK steel chief, told Channel 4 News: “What we are asking Kwasi Quarting to do today on wholesale prices is just to step in to relieve this pressure in the short term, just like in Portugal or Italy for example. Their governments are investing Already billions of euros to help their industries and the UK government has done nothing yet.”

The crisis comes amid reports of ministers’ plans to impose new tariffs on gas, with the New York Times reporting that a new strategy will be published before next month. COP26 . Climate Conference. The strategy would see the price of electricity fall while home gas bills could rise by £170 per year.

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