Carbon Floor Price Mechanism

Energy and Climate Change – in the House of Commons at 10:30 am on 7th July 2011.

Alert me about debates like this

Photo of Jessica Morden Jessica Morden Labour, Newport East 10:30 am, 7th July 2011

If his Department will undertake an impact assessment of the effect of the carbon floor price mechanism on the competitiveness of energy-intensive industries.

Photo of Gregory Barker Gregory Barker The Minister of State, Department of Energy and Climate Change

An assessment of the impacts of the carbon price floor on energy intensive industries is given in HMRC’s tax information and impact note, published alongside the Budget. Electricity bills for an average energy-intensive business are estimated to increase by 2% and 6% in 2013 and 2016 respectively as a result of the carbon price floor. However, in the late 2020s electricity bills will be between 2% and 5% lower than would otherwise have been the case.

Photo of Jessica Morden Jessica Morden Labour, Newport East

Will the Minister outline what specific issues the Government are considering to prevent energy-intensive industries, such as the steel industry in my constituency, from being disadvantaged in comparison with their global competitors by policies such as the carbon price floor?

Photo of Gregory Barker Gregory Barker The Minister of State, Department of Energy and Climate Change

As the hon. Lady knows, we are meeting not just the steel manufacturers, such as those in her constituency, but a range of energy-intensive industries. I will be meeting the chief executives of several before the House rises for the recess. We are considering a range of measures in conjunction with the Treasury and the Department for Business, Innovation and Skills, and in the autumn we will announce the result of that collaboration.