Fixed-term Energy Contracts: SMEs

Energy Security and Net Zero – in the House of Commons at on 23 May 2023.

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Photo of Alison Thewliss Alison Thewliss Shadow SNP Spokesperson (Home Affairs)

What steps his Department is taking to support small and medium-sized enterprises with fixed-term energy contracts.

Photo of Martyn Day Martyn Day Shadow SNP Spokesperson (Health and Social Care)

What steps his Department is taking to support small and medium-sized enterprises on fixed-term energy contracts.

Photo of Amanda Solloway Amanda Solloway Government Whip, Lord Commissioner of HM Treasury, Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The energy bill discount scheme will continue to provide a discount to eligible non-domestic customers, including those on fixed-term contracts. I met energy suppliers in March to reiterate my expectation that they must do all they can to support businesses on the highest-priced contracts.

Photo of Alison Thewliss Alison Thewliss Shadow SNP Spokesperson (Home Affairs)

The Federation of Small Businesses has found that more than one in 10 small firms fixed their energy prices during the market peak last year, meaning that now 93,000 small businesses across these islands could be forced to downsize, restructure or close their doors altogether. Will the Minister support the FSB’s calls for action on this? It is unacceptable that businesses in Glasgow Central and beyond have been marooned on devastatingly high energy contracts.

Photo of Amanda Solloway Amanda Solloway Government Whip, Lord Commissioner of HM Treasury, Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

One of the things this Government are committed to do is helping small businesses. Both the Secretary of State and I have met the FSB to discuss this matter and to ensure that we are doing the best thing that we can for those on fixed-term contracts.

Photo of Martyn Day Martyn Day Shadow SNP Spokesperson (Health and Social Care)

That was rather a non-answer. Since the downgrading of the energy bill relief scheme to the mair austere energy bill discount scheme, firms, many of them in my Constituency, are paying three to four times the amount they were for energy under the previous scheme. If the Minister does not believe the figures she has just heard from the FSB, how many firms does she think will go to the wall as a result of these higher energy costs?

Photo of Amanda Solloway Amanda Solloway Government Whip, Lord Commissioner of HM Treasury, Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

This Government remain committed to supporting all small and medium businesses, and the whole business sector. We did the relief scheme and we now have the discount scheme as well. We are also implementing a high energy-intensive scheme. Both the Secretary of State and I are urging suppliers to have a look at these fixed rates and making sure that we can find a reasonable way forward.

Minister

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Secretary of State

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constituency

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