Draft Energy-Intensive Industry Electricity Support Payments and Levy (Amendment) Regulations 2026 - 4th February 2026

Here are the climate-related sections of speeches by MPs during the Commons debate Draft Energy-Intensive Industry Electricity Support Payments and Levy (Amendment) Regulations 2026.

Full text: https://hansard.parliament.uk/Commons/2026-02-04/debates/CD4FCB2B-982E-4A88-A906-E77CD6BD1716/DraftEnergyIntensiveIndustryElectricitySupportPaymentsandLevyAmendmentRegulations2026

Greg Smith (Conservative)

I am making a point about the wider context in which we have to see the statutory instrument. The most glaring omission is the oil and gas industry in the North sea. Energy-intensive industries are not just struggling; they are being driven overseas by costs that they simply cannot absorb. The very thing that the Minister said he was trying to prevent is happening. Since Labour came into government, more than 15,000 manufacturing and industrial jobs have already been lost, largely because of astronomical energy costs combined with unnecessary green levies and carbon taxes. When manufacturing moves abroad, we do not eliminate emissions; we simply offshore them, often to countries like China with weaker environmental standards and far greater geopolitical risk.

We have also heard clear warnings from industry leaders. Sir Jim Ratcliffe has been explicit that high taxes and energy costs have left sites such as Grangemouth unable to compete with overseas rivals. These are not abstract concerns, but real decisions affecting real jobs. Against that backdrop, while the draft regulations make proportionate and technical changes, they do not address the fundamental problem. Increasing compensation within a flawed system is not the same as fixing the system itself. The best way to reduce electricity prices for energy-intensive businesses is to tackle costs at source by scrapping the energy profits levy and removing punitive carbon taxes that undermine competitiveness.

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14:51 Chris McDonald (Labour)

Many Members across the House—not only those on the Government side, but Liberal Democrats—are content to bask in the warm glow of solar power, onshore wind and offshore wind. I appreciate that the Opposition are feeling a chill breeze up their right flank and are tacking across to the climate-denying policies of Reform, but that cannot be the basis on which the country’s energy policy is determined. We must focus instead on low-cost energy for consumers and industry, on energy security and on good jobs, and that is what renewable energy delivers. Through this mechanism, we will ensure that our energy-intensive industries continue to be competitive in Europe.

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