A year on from the launch of the Government’s Industrial Strategy and the Helm Review into the Cost of Energy, a new report published today by UK Steel shows UK steelmakers face electricity prices twice those of their direct competitors in France and 50% more than German steel producers. As the Government’s own data shows, UK industrial electricity prices are the highest in the EU.
Our report, 'The Energy Price Scandal: A Fair Power Deal for UK Steel' shows that in the UK, the average electricity price for steel producers this year is around £65 per megawatt hour (MWh), compared with Germany at £43/MWh and the French price of £31/MWh. With a steel site consuming in excess half a million MWh each year, this additional cost soon adds up.
UK Steel Director General, Gareth Stace said:
“This is the third year we have analysed the disparity between the electricity prices faced by UK steelmakers and those of their EU competitors, and the third year it has increased. Electricity is one of the biggest costs for the steel industry and it damages our competitiveness that we are consistently forced to pay significantly more. The gap continues to widen and our steel industry is losing out.”
Download the full press release. For the full 'Energy Price Scandal' report click here.