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Written question asked by Drew Hendry (Scottish National Party) on Wednesday, 21 September 2022, in the House of Commons. It was due for an answer on Tuesday, 11 October 2022 (named day). It was answered by Andrew Griffith (Conservative) on Tuesday, 11 October 2022 on behalf of the Treasury.

Business: Energy

Question

To ask the Chancellor of the Exchequer, what recent discussions his Department has had with the (a) Bank of England and the(b) wider banking sector on support for businesses experiencing temporary cash flow problems due to energy costs.

Answer

The Chancellor has met frequently with the Bank of England Governor, Andrew Bailey and continues to engage with the Bank and other commercial actors.


To address extraordinary liquidity requirements faced by energy firms from high and volatile energy prices, HM Treasury has announced the £40 billion Energy Markets Financing Scheme, delivered with the Bank of England,.

The scheme will improve resilience in energy and financial markets, and the economy. To deliver the scheme, there will be a 100% guarantee to commercial banks covering additional lending extended to firms. The scheme will be designed to be used as a last resort, with pricing and conditions reflecting this.

Last week, the Government also announced details of the Energy Bill Relief Scheme to protect businesses from the spiralling costs of energy by providing a discount on wholesale gas and electricity prices over the next six months.

A parallel scheme, based on the same criteria and providing comparable support, but recognising the different market fundamentals, will also be established in Northern Ireland.

Secondary information

Type
Written question
Reference
53444
Session
2022-23
Subjects
Business Banks Bank of England Energy Prices
Link
View this Written question on www.parliament.uk