In 2018 we consulted on the level of the Warm Home Discount rebate and decided to maintain the current level in order to provide it to the maximum number of households. Since then, the Government has also taken action to protect 11 million households with the introduction of the energy price cap.

Disabled people on means-tested benefits are eligible under the Broader Group of the Warm Home Discount. The Government is considering how to improve the fuel poverty targeting of the scheme and will be consulting on any proposed changes in due course.

The Government is committed to ensuring fair energy prices for all consumers. This has been delivered through the Domestic Gas and Electricity (Tariff Cap) Act, which requires the energy regulator to cap standard variable and default energy tariffs.

The cap will save consumers a total of £1 billion on their bills annually.

In addition to the price cap, there is a strong package of financial support for older people. The Warm Home Discount provides a rebate of £140 off the winter energy bill for over 2 million low income and vulnerable households. All pensioner households receive a payment between £100 and £300 each winter through the Winter Fuel Payments and additional payments of £25 are available for cold periods through the Cold Weather Payment.

The Government is committed to ensuring fair energy prices for all consumers. This has been delivered through the Domestic Gas and Electricity (Tariff Cap) Act, which requires the energy regulator to cap standard variable and default energy tariffs.

The cap will save consumers a total of £1 billion on their bills annually.

In addition to the price cap, there is a strong package of financial support for older people. The Warm Home Discount provides a rebate of £140 off the winter energy bill for over 2 million low income and vulnerable households. All pensioner households receive a payment between £100 and £300 each winter through the Winter Fuel Payments and additional payments of £25 are available for cold periods through the Cold Weather Payment.

The Government is committed to minimising energy costs for businesses to ensure that the UK economy remains strong and competitive. We recognise that the UK’s industrial electricity costs are currently higher than those of our competitors, and so we have taken steps to reduce the cumulative impact of energy and climate change policies on the price of industrial electricity for key industries, such as steel. This includes providing the steel sector with over £285m of compensation since 2013 for the indirect costs due to the EU Emission Trading System, carbon price support mechanism, Renewable Obligation, and small-scale Feed-in Tariff.

The steel sector is actively engaged with UK Research and Innovation in shaping the Industrial Strategy Challenge Fund: we are providing up to £66m for the ‘Transforming Foundation Industries Challenge’, subject to industry co-funding. In addition, up to a further £170 million has been provided to develop a ‘net-zero carbon’ industrial cluster, that will help heavy industries – including steel – to share expertise and innovate low-carbon solutions as we move to a greener, cleaner economy. We have also created an important new fund – the Industrial Energy Transformation Fund – which is worth up to £315 million, and supports businesses with high energy use to transition to a low carbon future, and cut their bills in the process through increased energy efficiency. Recently, we have launched an informal consultation, and are seeking views and evidence on how we can design the fund to maximise its benefits whilst ensuring value for money.

The Government published information from departments, and their arm’s length bodies, on the amount of steel procured over the last financial year, and the application of the steel procurement guidance. Departments have confirmed that, where applicable, the guidance for steel procurement has been fully complied with on major projects, and we will continue to work closely with these departments and arm’s length bodies to improve procurement guidance awareness, and the quality of the information provided. We have also published an update of the Steel Pipeline, signalling upcoming steel requirements for national infrastructure projects to UK producers and suppliers.

The Government has carefully considered the case for removing plant and machinery (P&M) from business rates valuations, but has decided against doing so. Most process P&M is not rateable, and removing service P&M from rating would mean exempting equipment which is integrated into buildings such as heating, lighting, and plumbing.

Government policy does not prescribe particular requirements around smart metering and energy tariffs, and has made it clear that choosing to upgrade to a smart meter is not compulsory for households.

The UK is seeking broad energy cooperation with the EU including arrangements for trade in electricity and gas, cooperation with EU Agencies and bodies, and data sharing to facilitate market operations. All these are designed to ensure continuity in terms of effects on consumer energy prices. In line with our continued commitment to ensuring that business is prepared for EU Exit in all scenarios, we set out the implications of no deal for UK energy in our technical notices on trading electricity and gas. In either scenario, the UK’s exit from the EU will not alter the fact that our energy system is resilient, secure and drawn from a number of sources. The UK will remain physically linked to the EU post-exit through interconnectors, and the UK gas market is one of the most liquid and developed markets in the world and provides security through diversity of supply, the majority of which does not depend on the EU.

The Domestic Gas and Electricity (Tariff Cap) Act states that Ofgem, the independent regulator, must update the level of the cap at least every 6 months. Ofgem have scheduled 6 monthly revisions each April and October. Ofgem is responsible for adjusting the cap level to reflect changes to the estimated costs of supplying electricity and gas to homes for the following 6 months.

The Government does not collect official statistics on regional fuel prices.

It is not yet known how much of the UK shale gas resource will ultimately be recoverable, or what rates of extraction, deliverability or reliability could be assumed if shale sources are found to be viable. Therefore the impact on energy tariffs has not been assessed to date.

The Government will continue to monitor progress of the shale gas industry and will revise its estimates, as appropriate, as the industry develops.

A Supplier of Last Resort (SoLR) appointed through a competitive process may make a claim to recover some of the costs they incur via an industry-wide levy. None of the levy costs are met by the public purse. The recovery of any tax arrears in an insolvency is a matter for the administrators and HMRC.

The Department is not able to make estimates of the expected costs as a result of the SoLR process. The costs of an insolvency will depend on the circumstances of each case and variables such as the number of customers, the short term costs of ensuring they continue to be supplied with energy, the settlement of customer bills and the costs absorbed by the incoming supplier. It is for Ofgem, as the expert regulator, to scrutinise the costs in any levy claim and to consult with industry and interested parties before any decision is taken to use the levy.

In the event of an energy supplier insolvency, the Supplier of Last Resort (SoLR) process allows a quick transfer of customers to another supplier appointed by Ofgem and ensures credit balances are protected.

As a result of the competitive SoLR processes, successful suppliers have agreed to absorb a proportion of the costs of the process and claim some of the remaining costs via the industry-wide SoLR levy. The amount claimed through the levy will vary depending on the terms of the successful SoLR bid and other factors such as number of customers and how much credit they have built up. It takes time for the extent of some SoLR-related costs to become clear and Ofgem consult with industry and interested parties before any levy claim decision is taken.

A 2017 report prepared for the Committee on Climate Change on the competitiveness of UK energy intensive industries (EIIs) estimated that average industrial electricity prices faced by steel producers in the UK were around double those in France and Germany in 2016[1]. Since 2016 the UK has introduced an exemption for eligible EIIs from the costs of the Contracts for Difference scheme, helping to reduce the differential.

The Government recognises that industrial electricity prices are currently higher than those in some competitor economies and is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability of our industries to be able to compete across Europe and globally is a priority for this Government.

The Budget on 29 October 2018 announced that £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector.

We also continue to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, of which more than £270 million has been provided to the steel sector.

[1]Figure 2.8, Competitiveness impacts on energy-intensive industries Cambridge Econometrics March 2017: https://www.theccc.org.uk/wp-content/uploads/2017/04/Competitiveness-impacts-on-energy-intensive-industries-Cambridge-Econometrics-March-2017.pdf

BEIS publishes statistics on international energy price comparisons[1]. These show that for the UK, industrial gas prices are among the lowest in the EU-15 but industrial electricity prices have risen to be the most expensive for large and extra-large users of electricity.

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. Higher industrial electricity prices in the UK partly reflect how the costs of the electricity system are distributed across household and industrial customers. For example, while very large German industrial users pay electricity prices that are lower than those in the UK, German households faced electricity prices that were 68 per cent higher than UK households in 2017.

In his recent energy speech, my rt. hon. Friend the Secretary of State set out the importance of a fair distribution of costs and the principles that are intended to deliver policies that will lower the costs of the electricity system permanently. Further details will be set out in a White Paper this year.

The Budget on 29 October 2018 announced that £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector.

The Government also continues to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, reducing the indirect cost of energy and climate change policies on their energy bills by up to 80 per cent.

[1] https://www.gov.uk/government/statistical-data-sets/international-industrial-energy-prices

Network charging is a matter for Ofgem as the independent regulator, and decisions on its review of charging rules (known as the Targeted Charging Review) are for it to make. However, Government is working to understand the policy implications of Ofgem’s review proposals across a broad range of interests, including steel companies.

Ofgem has not yet concluded its review, and is currently consulting on lead options for reform. Steel companies are currently analysing to what extent these options might impact on them. Ofgem’s consultation closes on 4^th February 2019. We are encouraging steel companies and all other interested parties to engage with Ofgem to ensure their perspectives and evidence can be taken into account.

Last week this Government delivered on its promise to cap energy prices.

It now protects over 11 million households, ensuring the energy market works for all customers and saving consumers up to around £130 a year.

We continue to invest at least £640m in energy efficiency annually until 2028 and are also delivering on our smart meter programme.

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.

As set out in the recent energy speech by the Secretary of State for Business, Energy and Industrial Strategy, the Government recognises that industrial electricity prices are currently higher than those in some competitor economies. The principles set out in the speech are intended to deliver policies that will lower the costs of the electricity system permanently and further details will be set out in a White Paper next year.

At the same time as reducing the costs of electricity production, the Government wants to increase industrial energy efficiency. As announced in the Budget on 29 October 2018, £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector. Furthermore, our Industrial Heat Recovery Support Programme is now open to applications for feasibility and/or preliminary engineering studies. We will publish our response to the consultation on widening eligibility for the exemption schemes for energy intensive industries in due course.

Meanwhile, we are continuing to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, of which £271m has been provided to the steel sector in compensation to the steel sector as of 30 November 2018.

We welcome the recent report by UK Steel regarding high electricity prices and will give its recommendations careful consideration.

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.

As set out in the recent energy speech by the Secretary of State for Business, Energy and Industrial Strategy, the Government recognises that industrial electricity prices are currently higher than those in some competitor economies. The principles set out in the speech are intended to deliver policies that will lower the costs of the electricity system permanently and further details will be set out in a White Paper next year.

At the same time as reducing the costs of electricity production, the Government wants to increase industrial energy efficiency. As announced in the Budget on 29 October 2018, £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector. Furthermore, our Industrial Heat Recovery Support Programme is now open to applications for feasibility and/or preliminary engineering studies. We will publish our response to the consultation on widening eligibility for the exemption schemes for energy intensive industries in due course.

Meanwhile, we are continuing to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, of which £271m has been provided to the steel sector in compensation to the steel sector as of 30 November 2018.

We welcome the recent report by UK Steel regarding high electricity prices and will give its recommendations careful consideration.

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.

As set out in the recent energy speech by the Secretary of State for Business, Energy and Industrial Strategy, the Government recognises that industrial electricity prices are currently higher than those in some competitor economies. The principles set out in the speech are intended to deliver policies that will lower the costs of the electricity system permanently and further details will be set out in a White Paper next year.

At the same time as reducing the costs of electricity production, the Government wants to increase industrial energy efficiency. As announced in the Budget on 29 October 2018, £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector. Furthermore, our Industrial Heat Recovery Support Programme is now open to applications for feasibility and/or preliminary engineering studies. We will publish our response to the consultation on widening eligibility for the exemption schemes for energy intensive industries in due course.

Meanwhile, we are continuing to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, of which £271m has been provided to the steel sector in compensation to the steel sector as of 30 November 2018.

We welcome the recent report by UK Steel regarding high electricity prices and will give its recommendations careful consideration.

The Government has taken a range of actions to reduce the cost of energy – including protecting 11 million households from poor value energy tariffs through the introduction of a price cap, and providing a package of relief for energy intensive industries worth over £850 million since 2013, supplemented by the announcement of a £315 million Industrial Energy Transformation Scheme at the Budget.

In his speech of 15th November (available on gov.uk), my rt. hon. Friend the Secretary of State for Business, Energy and Industrial Strategy set out his strategic approach to ensure consumers get a fair deal for their energy, while opening up the market to competition.