After previously making the case for families hit by rising energy prices, today I urged the Business Minister to put in place better support for energy-intensive manufacturers as costs soar.
Thessco, a local family-owned smelting business, uses precious metals to produce alloys. They have seen their electricity costs rise by over 300%, and their gas prices are looking to exceed a 400% increase.
I wrote to the Secretary of State for Business, Energy and Industrial Strategy to raise Thessco’s case back in April, explaining that the formula for Energy Intensive Industries and the related relief from the cost of renewables excludes Thessco as their raw materials are precious metals. Additionally, the increased volatility in precious metals is also affecting the business, as raw material and associated financing costs are being driven upwards. This combination of factors is severely damaging an established and successful local business and threatens its future.
The then Industry Minister replied to me, acknowledging that although Government initiatives such as the Energy Intensive Industries Compensation Scheme don’t “apply to Thessco, I hope this demonstrates an intent to try to help where it is reasonable and proportionate to do so.”
I called on the Minister to provide solutions for successful businesses which are now being crushed by spiralling bills. He responded saying that he will look into the case and I’m seeking a meeting with him.
You can read the full exchange here.