Economic Indicators33 minutes ago (Oct 10, 2021 06:00AM ET)
© Reuters. FILE PHOTO: General view of an electricity pylon near Ellesmere Port, Britain, September 27, 2021. REUTERS/Phil Noble/File Photo
LONDON (Reuters) – Britain is working out how to support energy-intensive industries hit by soaring gas prices, business minister Kwasi Kwarteng said on Sunday, describing the situation as critical but declining to say what action is being considered.
Producers of steel, glass, ceramics and paper and other sectors have said they may be forced to halt production unless the government does something about energy prices.
“It’s a critical situation clearly,” Kwarteng told the BBC, when asked about possible factory closures.
In a separate interview with Sky News he said: “We’ve got very, very high gas prices, very high electricity prices, we already have support in place for industries, and we’re looking at ways that we can help industry.”
He added he was working with finance minister Rishi Sunak on the matter.
Asked if there might be an energy price cap for industrial users like there is for consumers, he told Times Radio: “That’s not something that we’ve talked about.”
“We’re not in the business of bailouts. What we are in the business of is ensuring security of supply and that’s what I’m focused on.”
Wholesale gas prices have increased 400% this year in Europe, partly due to low stocks and strong demand from Asia.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.