Conservative MPs joined Working and industry leaders calling for support for heavy industry while spending energy energy.
Gas prices have risen 250% since January and, while households have been partially protected from this price cap increase, customers are expected to be hit by a massive increase in the spring.
Energy firms warn that plummeting suppliers could lead households to hit increased costs as they mark the price cap as “not fit for purpose” and “very well true”. Paul Richards, chief executive of Together Energy, who said he was currently incurring losses, told today’s program on BBC Radio 4: “Price cap as a mechanism is not right for the industry, nor is it right for to customers.
“When the negotiation situation arises and the wholesale price starts to fall sharply, the price that will be passed on to customers in April can feel like a very difficult deal, whereas right now the price cap seems to be a price too good to be true. “
He said that while customers were protected by the cover in the short term, failed suppliers meant businesses and households were burdened with between £ 1bn and £ 3bn in costs.
It will come after business secretary, Kwasi Kwarteng, conducted the meeting including leaders in energy-intensive industries, including representatives from the paper, glass, cement, lime, ceramics, chemical and steel industries, even though it is understood that the talks have failed to produce a solution to the crisis.
Energy Intensive Users Group (EIUG) chairman Dr Richard Leese said he accepted the opportunity to meet Kwarteng. Leese said he proposed three technical solutions at the meeting, asking the government to consider cost prevention measures, network cost allocation, and emergency measures to “prevent long-term damage to very expensive plants and equipment ”if a factory needs to close quickly.
Conservative MPs have also joined calls for government intervention in the wholesale crisis. Andrew Bridgen, the Conservative MP for North West Leicestershire, said he would support the government stepping in to provide short -term support for energy -intensive industries. “However, what we need … is a sustainable long -term energy policy based on diverse sources of supply,” he told the BBC.
The issue was also raised by Conservative MP Miriam Coates, who called on ministers to consider options to bail out the steel industry, which she said was under “serious threat” because of “extreme” energy costs. Meanwhile, Jo Gideon, the Conservative MP for Stoke-on-Trent Central, told the BBC that “potters, brick makers, and material scientists” also need government support.
Following the meeting on Friday, industry leaders the failure of the UK government is different to alleviate the crisis in the position taken by European governments. UK Steel boss Gareth Stace told Channel 4 News: “What we are now asking Kwasi Kwarteng to do with wholesale prices is the only step, to relieve pressure in the short term, as in, say, Portugal or Italy. Their governments are already investing billions of euros, to help their industries and the UK government has still done nothing. “
The crisis comes amid reports of ministers planning to impose new gas charges, with the Times reporting that a new strategy will be published before next month Cop26 climate conference. The strategy will see the price of electricity fall as household fuel charges could rise by £ 170 annually.