London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Energy prices: No commitment from Kwarteng on business gas help

Energy prices: No commitment from Kwarteng on business gas help

Business Secretary Kwasi Kwarteng has not committed to any additional government help for businesses struggling amid record gas prices.

Some industries have warned firms could be forced to shut down operations.

Mr Kwarteng said he was working closely with the chancellor over possible support for energy intensive sectors - but a Treasury source denied this.

The business secretary said domestic customers would not see a change to the energy price cap this winter.

Asked on BBC One's Andrew Marr programme whether there would be additional government help for energy-intensive companies, Mr Kwarteng described the situation as "critical" and said he was "looking to find a solution".

When Andrew Marr suggested this sounded like a "yes" the business secretary said: "No, it doesn't sound like yes at all.

"We already have existing support and we're looking to see whether that's sufficient to get us through this situation."

Speaking to Times Radio Mr Kwarteng, who met leaders from heavy industry on Friday, said he was not going to commit to "any firm figure or subsidy" for companies.

Asked about whether the government would ensure factories would not have to close if they could not pay for gas he said it was a commercial decision and "up to them".

He added: "We are not in the business of bail-outs. What we are in the business of is ensuring security of supply and that is what I am focused on."

Wholesale gas prices have risen 250% since January.

CEO of British Glass Dave Dalton, who was at Friday's meeting with Mr Kwarteng, said some of the confederation's "significant" members were "teetering on the edge".

"I think some companies are staring down the ability to survive, absolutely - ultimately that obviously cascades on to jobs and impacts on the consumer," he told the BBC.

Gareth Stace, director general of UK Steel, said he was frustrated by the lack of action to support businesses.

He told the BBC that without help in the next week or so, there would be "significant and permanent damage to the UK steel sector".

Unite leader Sharon Graham said the country was "contemplating factory shutdowns across viable manufacturing and businesses" and that workers were "worried sick".


Businesses have been shouting louder and louder for support through this period of soaring energy prices.

This morning, the business secretary told the BBC he was listening to their concerns - but would not commit to any extra support.

Those industries that use a lot of energy for manufacturing say that the time for working out a way forward has long gone.

The director general of UK Steel, Gareth Stace, expressed his frustration, saying pauses in steel production will only increase.

The government says the current situation emphasises the need for a revolution in how we generate energy, moving towards home-grown renewables.

But that's little comfort for those businesses dependent on energy from fossil fuels now, competing with intense demand in a global market.

On the Andrew Marr show, Mr Kwarteng denied asking for "billions" from the Treasury to subsidise energy-intensive businesses and said supply itself was "not an issue".

A Treasury source said the business secretary had been "mistaken" to say that he had been working on possible support measures with the Chancellor Rishi Sunak.

Bridget Phillipson, Labour's shadow chief secretary to the Treasury, said the government "needs to get a grip" and called for "urgent answers on who exactly is running the show".

"The two key government departments responsible for the current cost of living crisis have spent this morning infighting about whether they were in talks with each other. What a farce," she said.

She also accused the government of having "put its out of office on", referring to reports that the prime minister is on holiday in Spain.


A number of Conservative MPs have called for the government to take action to support heavy industry.

The SNP's Westminster leader Ian Blackford called on the UK government to "nurse" businesses through the crisis, describing it as a "perfect storm".

Ofgem price warning


The domestic consumer energy price cap, which is reviewed every six months, sets the maximum level a supplier can charge a consumer on a standard tariff in England, Wales and Scotland.

Mr Kwarteng told Marr that protecting consumers was his "first and foremost objective" and as such the price cap would stay at its current level until its next update which is due to in April.

Some suppliers say the cap is just delaying an inevitable increase in consumer prices and should be reviewed more regularly.

Energy regulator Ofgem has warned households will see further "significant rises" in the spring, when the cap is reviewed.

Asked by Marr if he was sure the lights would stay on this winter, Mr Kwarteng said "yes, I am".

Due to high gas prices household energy suppliers have been forced to sell gas for less than they can buy it due to the price cap, leading some to fail.

Last month, nine domestic energy supply companies went out of business, forcing 1.7 million customers to move to new suppliers and on to higher rates.

Paul Richards, chief executive of Together Energy, which he said is currently making losses, said while he supported a price cap to protect customers, the current mechanism "is not fit for industry, nor is it fit for customers".

He said it protected customers in the short term but somewhere between £1bn and £3bn in costs would be spread back across business and households as a result of suppliers going bust.

The founder of OVO Energy Stephen Fitzpatrick told Marr that it has been "too easy" for companies to enter the energy market and that there will be more companies in difficulty.

He said the market was a complicated one, and he thought some people had not understood the risks.


Kwasi Kwarteng: "The energy price cap stays"



Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×