Iran war adds to energy strain for ceramics firms

The government is being urged to act quickly over the surge in oil and gas prices caused by the Iran war as the rises put more pressure on the struggling ceramics industry.

"Soaring" energy costs were among the reasons cited this week by Derbyshire-based pottery firm Denby as it went into administration.

Other ceramics firms collapsed last year due to energy costs and, with the conflict pushing prices higher, business leaders say more jobs could be at risk.

Prime Minister Sir Keir Starmer said "we're working with the ceramics industry on whether the scheme can be extended to more firms".

In one case, the bill for energy at Portmeirion in Stoke-on-Trent has doubled since the war began in Ukraine, a conflict which also pushed up gas and oil prices.

Some sectors will save on their electricity bills under the British Industry Supercharger scheme, which give discounts to the most energy-intensive firms, but most ceramic firms are not eligible, because of their reliance on gas.

Portmeirion, where the kilns fire 100,000 pieces a week, employs 400 people and is looking at ways to cut energy use.

The company's chief executive, Mike Raybould, said: "It's been urgent for a long time. What's going on at the moment in the world makes it even more urgent.

"I just hope that government will see how valuable the jobs are in the UK ceramic industry. The skills that we have are amazing. If you lost those skills, [it's] very, very hard to get them back."

One potter, Tony Carr, said: "Other industries... have had the help, but we seem to be getting no help whatsoever."

Another, Gail Barlow, stated the "steelworks went [in Stoke-on-Trent], the pits went".

She added all that was left of "proper manufacturing is the Potteries, so we really, really need some government support".

Rob Flello, from industry body Ceramics UK, said: "There's a step between warm words and actually getting on and delivering something that does not need primary legislation, it doesn't need months of consultation."

From next month, sectors including cement, chemicals and the steel industries will save even more on their electricity bills under the Supercharger scheme.

Manufacturers in the UK currently pay some of the highest electricity prices in the developed world and the Supercharger scheme currently offers those energy-intensive industries a 60% discount on network charges, set to rise to 90% this year.

The prime minister was asked this week what extra support the government would give the Potteries.

"Our Supercharger will significantly reduce costs for thousands of major industries," he said.

"Eligibility for the scheme is being reviewed this year.

"I can tell my honourable friend we're working with the ceramics industry on whether the scheme can be extended to more firms."

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