Energy taskforce publishes recommendations to support struggling firms

The West Midlands Industrial Energy Taskforce has presented its final report to the mayor of the West Midlands on the impact of the energy crisis on the region 's businesses along with its recommendations on what needs to be done to protect them from future price volatility.

Among the report 's recommendations is a focus on immediate solutions for business on the brink of closure, such as the ability to renegotiate locked-in high-cost fixed energy deals.

Other recommendations outlined in the report include incentives for companies to implement energy efficiency measures, and longer-term interventions including government and industry coming together to address some of the built-in flaws in the UK 's complex energy markets.

The business-led taskforce was set up as an independent commission by the mayor and tasked with identifying the businesses most affected by the energy crisis, what challenges they were facing and the scale of the impact, and what immediate actions could be taken at a regional level to address those issues and protect them for the future.

Also among its recommendations is the establishment of a national Centre for Manufacturing Transition (CMT) in the West Midlands to support mid-sized manufacturers nationally through the energy cost crisis and the transition to net zero, and to make sure the economy is more resilient to any future crises.

The report notes that West Midlands businesses paid £4.4 billion in energy costs over the past year, rising by the equivalent of a two per cent reduction of regional output. 14 per cent are facing energy costs exceeding 20 per cent of their turnover and 30 per cent remain locked into fixed tariffs more than three times pre-crisis rates.

Responding to the taskforce 's report and recommendations, the mayor said: “The report recognises the importance of taking action in the medium and long-term to address system failures so we don 't face these issues again, but just as crucially it identifies measures we can put in place to help businesses now.

“That 's why in the short term I have already spoken to many of the leading energy companies, alongside the Secretary of State, as I push for punitive energy deals to be scrapped or renegotiated to protect West Midlands businesses.

“Whilst in the longer term I will work with industry leaders and central Government to make sure the taskforce 's recommendations become a reality. ”

Matthew Rhodes, chair of the West Midlands Industrial Energy Taskforce and managing director of Camirus Limited, said: “The work of the taskforce has lifted the lid on the workings of the commercial energy market in the UK and exposed how it can easily undermine the competitiveness of West Midlands businesses and put good companies across the economy at risk.

“These failings have been hidden for too long because energy prices have been relatively unchanging.

“Now that the shocks of the past year have shown us how easily actions the other side of the world can work through energy markets to destroy good jobs and businesses in the West Midlands, it is up to us to do something about this.

Click here to read the report and the full set of recommendations.

Find out more about the taskforce and its recommendations, including the Centre for Manufacturing Transition, by emailing [email protected].

Pictured: Matthew Rhodes, West Midlands Industrial Energy Taskforce chair, and Andy Street, mayor of the West Midlands and chair of the WMCA, centre, at an energy costs summit in March this year held as part of the taskforce's work.