With the upcoming Budget announcement now confirmed for the 29th October, UK Steel have made a submission on behalf of the sector to the Treasury. As would be expected, our Budget submission once again focuses heavily on energy concerns, again highlighting the disparity between our electricity prices and those of our French/German competitors.
Whilst we have consistently pushed a wide range of measures with the Government to tackle the issue, we focussed our asks in this year’s submission to three core policies, the first of which we have succeeded in gaining BEIS support for. These are:
An increase in the level of relief provided on renewables levies (RO, FiTs and CfD). With the relief measures in place, these levies still cost the sector around £12 million each year, reduced from gross cost of around £80 million. We estimate this could be reduced by a further £5-6 million by our proposal, bringing renewable policy costs in line with our French and German competitors.
An energy efficiency fund – the value of £60-80 million that would provide 30-45% of the funding for the energy efficiency projects identified by the sector.
Establishing a new target price for the Carbon Price Floor in response to rapidly increasing EU carbon prices. Our proposals would reduce electricity costs for the sector by a further £5 million
As you will see from the full submission, it is made abundantly clear that these two measure do not constitute a solution to the problem but will needed to be built upon significantly to completely eliminate the disparity.