Energy users and government to meet over rising cost of fuel

Business Secretary Kwasi Kwarteng is to hold talks with representatives of industries which have the heaviest energy consumption, such as steel, cement and chemicals.

They have called for government help to control costs and keep plants open.

Rising energy costs are affecting both businesses and households.

On Thursday, a charity said that between 1.2 million to 1.5 million additional households could be hit by fuel poverty next year.

At the start of October the energy price cap, which limits the impact of rising energy prices on households in England, Scotland and Wales, was raised to take the sharply rising wholesale gas price into account.

But Ofgem, the energy regulator, said the price cap would have to rise again next year if prices continue to go up.

Analysts at Cornwall Insight warned that volatile gas prices and the possible collapse of even more suppliers could see prices increase by 30% and push the energy price cap from its current level of £1,277 to around £1,660 in spring.

Households in Northern Ireland have also seen a recent sharp rise in their bills, but they are not protected by the energy price cap for Great Britain.

Mr Kwarteng said on Twitter protecting consumers from rising global gas prices was "his top priority".

He also announced he would meet the Energy Intensive Users Group (EIUG) on Friday.

The group includes representative bodies UK Steel, the Chemical Industries Association, the Confederation of Paper Industries, the Mineral Products Association, the British Glass Manufacturers Federation, the British Ceramic Confederation, BOC, Air Products and the Major Energy Users Council.

Last month, high gas prices forced two fertiliser factories to close, cutting supplies of carbon dioxide which is widely used in food production.