Government urged to help British steelmakers with electricity costs

Trade body UK Steel is urging the government to help British steelmakers as they pay a significantly higher price for electricity compared to their European competitors.

The average price faced by UK steelmakers for 2023/24 is £113/MWh compared to the German and French prices of £61/MWh.

This indicates a price disparity of £52/MWh, meaning the industry will pay £117M more for its electricity than European competitors. According to a recent UK Steel report, higher electricity prices depress profit margins and cause the UK to be viewed as a less attractive investment location.

UK Steel Director General, Gareth Stace, said: “This new Government has already set out its willingness to deliver for the steel industry, and it now has the opportunity to bring industrial electricity prices in line with our competitors.

“For too long, the UK steel industry has been crippled by high industrial electricity prices, placing a heavy burden on the industry’s competitiveness, profitability, and ability to invest in future growth.

“Steel is integral to the new Government’s ambitions for the UK, from the renewable energy rollout through GB Energy to infrastructure developments and increased housebuilding, which all require and rely on steel. Lower power prices are crucial to unlocking the success of the UK Steel industry, enabling steel to be the backbone of a strong and thriving British economy.”