Increased Energy Costs

Part of 1. Questions to the First Minister – in the Senedd at 2:08 pm on 12 July 2022.

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Photo of Mark Drakeford Mark Drakeford Labour 2:08, 12 July 2022

I thank Hefin David for that question. I'm aware of the company that he mentioned and the work that they do. Companies like that, Llywydd, faced with the astonishing rise in energy prices, will be following what is going on in Westminster very carefully and I'm sure that their anxiety will be growing as the contest to reduce the amount of resource available to help companies and the whole of the economy is the only contest that seems to be being conducted. 

What we do here in Wales, Llywydd, is to use the powers that we have; they're not the main powers, they, inevitably, lie with the UK Government. We have specialist resource efficiency advisers working with Business Wales who are working with companies to offer those practical solutions that can help them to mitigate—and it would only be to mitigate, to understand—the impact of energy rises of the sort that Hefin David has mentioned. But they work with companies to reduce vehicle use, to increase water and energy efficiency, to provide insulation and LED lighting, to make sure that there is efficient use of fridges and freezers and so on. The work that we do as a Government also sustains the purchasing power of consumers. One of the most challenging things happening to small businesses of the sort that Hefin David has mentioned is the drawing back by customers of discretionary spend. Faced with bills of their own, people are not buying things in a way that allows those businesses to go on being sustained. Of course we help with other costs as well—more than 85,000 properties in Wales this year will receive help with their business rates. It will cost the Welsh Government £116 million—that's £20 million more than the consequential we receive from the UK Government—in order to be able to do that.

In the longer run, Llywydd, the question that Joyce Watson asked earlier this afternoon has the key: we have to be able to secure renewable energy sources that don't leave us vulnerable to the sort of global shocks that have led to the increase in energy prices, and to be able to do it in a way that offers certainty to small businesses that they won't face this sort of shock to their business model again in the future.