Happy new year and happy Epiphany, Mr Speaker.
Alongside my right hon. Friends the Secretaries of State for Energy Security and Net Zero and for Business and Trade, I am committed to slashing energy costs for British businesses. From April, eligible energy-intensive industries will see an uplift in compensation for electricity network charges, with 90% of costs being covered. We are also consulting on a British industrial competitiveness scheme that includes our plan to exempt over 7,000 businesses from covering the costs of some our historic renewables levies.
Small and medium-sized businesses are the absolute lifeblood of our economy. Many of them, including the amazing Bar Lento—a Spanish café in Winchester that I spend a lot of time in—are the beating hearts of our communities. The average electricity bill for a small business is now £240 a month, and 92% of such businesses say that they will increase prices to deal with energy volatility. Unlike households, businesses do not benefit from an energy price cap, so they face the consequences of energy volatility all the time. Does the Minister agree that this is failing small businesses, and will he commit to a review of how to end the wild west of energy regulation?
The hon. Gentleman raises the issue of energy volatility. I hope that it was clear in my previous answer that the Government are not satisfied with the position as it is. Of course, that energy volatility has historically been caused by our reliance on oil and gas and on petrostates and dictators. Clearly, the Conservatives wish to return to that policy. This Government’s clean power mission will ensure that we have energy security for the future. Unlike the climate-denying policies of the Conservatives and Reform, which would destroy jobs and investment in this country, our policies will deliver energy security and green energy for our small and large businesses, and for domestic consumers.
Many pupils have returned to cold school classrooms this week. That is why I am delighted that Kingsbury school, St Michael’s Church of England academy and All Saints Church of England academy in Bedworth, and Ash Green school, have all received funding to install solar panels. Will the Minister outline what support those schools will receive to install the panels, and how the panels will help them to cut their energy bills?
That kind of relates to education. Can you bring it back to energy, Minister?
I think this shows how committed the Government are to supporting a reduction in costs across all our services, including education and health, through the installation of solar panels. We saw a massive increase in solar installations in the UK last year—equivalent to enough energy generation to power 2 million homes. Not only do solar installations benefit our domestic consumers and enable the creation of green energy, but by installing solar on rooftops such as those of schools and hospitals, we are taking maximum advantage.