Nia Griffith – 2016 Parliamentary Question to the Wales Office

The below Parliamentary question was asked by Nia Griffith on 2016-01-19.

To ask the Secretary of State for Wales, what discussions he has had with the Secretary of State for Business, Innovation and Skills on the potential effect of current policy on compensation to energy-intensive industries on the steel industry in Wales.

Stephen Crabb

The steel industry is facing unprecedented challenges at present and I am determined to do everything I can to support the industry and those affected. I have regular discussions regarding the steel industry in Wales with ministerial colleagues including the Prime Minister,Secretary of State for Business, Innovation and Skills and the Minister for Small Business, Industry and Enterprise.

The Government is committed to providing compensation to Energy Intensive Industries. On 17 December, we secured state aid clearance to pay further compensation to energy intensive industries – including steel – for renewable policy costs.

The Government has published guidance and forms for claiming compensation. The first compensation payments will be made as soon as possible after eligible companies have submitted applications and backdated to December 2015.

As announced at Autumn Statement 2015, we are committed to transitioning from a compensation scheme to an exemption, with the aim of this being in place in 2017. Compensation will continue to be paid to the industry until the permanent exemption is in place.

This policy will save the industry hundreds of millions of pounds and will give the steel industry all across the UK greater certainty around energy costs for the life of the parliament.