Ministers suspend competition law to tackle CO2 crisis

Business secretary Kwasi Kwarteng has temporarily exempted parts of the CO2 industry from competition law in a bid to alleviate supply issues.

This comes just days after competition law was also suspended in order to help oil companies to supply petrol stations facing shortages.

Companies in the UK CO2 industry will be granted a short exemption from the Competition Act 1998 for the purpose of sharing information and optimising supply.

It will also allow companies to discuss specifics of purchasing and pricing, in order to reach a long term market-based solution over the next two weeks.

CO2 is used to stun animals prior to slaughter, for meat processing and storage and in the production of beer and fizzy drinks. It is also used in surgical procedures.

The supply issue was prompted by the initial closure of two plants providing over half of the UK’s CO2, exacerbated by the fact that two other plants, one in the UK and one in Norway being closed for maintenance.

Business Secretary Kwasi Kwarteng said: “The government’s quick and decisive action last week provided UK businesses and consumers with confidence that CO2 supplies are secure. Since then, discussions with industry to deliver a long-term solution have made good progress.

“Companies in the CO2 industry can now work together to ensure that key sectors receive the supplies they need and come to a sustainable market solution. Coupled with Ensus resuming production and CF Fertilisers ramping up operations, we are helping to make this critical industry stronger and more resilient.”