Gas prices: MPs pressure government on fuel costs for industry

The government is under increasing pressure to support parts of the economy struggling with rising gas bills, as several Conservative MPs have joined industry figures calling for ministers to take action.

Business Secretary Kwasi Kwarteng met leaders from heavy industry on Friday but they failed to find any solutions.

Labour has accused the government of being in denial about the crisis.

Gas prices have risen 250% since January, dramatically pushing up costs.

On whether a price cap for industry was being considered, a government source said: "We're working with industry on their suggestions."

Andrew Bridgen, Conservative MP for North West Leicestershire, said he would support government intervention to help energy-intensive industries in the short term.

"However, what we need... is a sustainable long term energy policy based on diverse sources of supply," he said.

Conservative MP Miriam Cates said soaring energy costs had become "acute".

She urged the government to take action and consider all options to protect the steel industry, which she said was facing "serious threats".

"In the long-term, it's important that the government sees steel as an industry... crucial to our future - we can't achieve our infrastructure commitments or net-zero without steel," she said.

Jo Gideon, Conservative MP for Stoke-on-Trent Central, said "potters, brickmakers, and materials scientists" needed government support to decarbonise but stay competitive.

After meetings with Mr Kwarteng on Friday, UK Steel boss Gareth Stace said the government had failed to find solutions to halt soaring energy prices.

"We can't wait until Christmas and beyond. Or even a few weeks. We need action now, it needs to be swift, decisive action," Mr Stace said.

He said Mr Kwarteng had listened but had provided "no immediate solutions or guarantees".

The UK Steel director general said he was "baffled" because governments in the rest of Europe had stepped in to support industry - although they faced lower energy costs than in the UK.

Representatives from energy-intensive sectors including paper, glass, cement, lime, ceramics, chemicals and steel were at Friday's talks with the business secretary.

After the meeting, the Energy Intensive Users Group (EIUG) chair Richard Leese said the government had made "positive first steps to develop practical solutions".

The price of wholesale gas has soared since the start of the year. And the UK has lower levels of gas stored than other European countries, which could help cushion price volatility.

Domestic customers' bills are partly protected from these sharp rises by a price cap, managed by the regulator Ofgem, which limits how far and how fast bills can rise.

Nevertheless, UK households have felt the impact after the price cap was raised at the start of October.

Customers will see further "significant rises" in the spring, regulator Ofgem has warned.

The cap is revised twice a year and is next due to be changed in April.

It applies to households in England, Scotland and Wales this month.

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.