UK Steel’s latest report on industrial energy prices highlights the continued disparity the costs paid by British steelmakers and their European competitors.
The report highlights how the average price faced by UK steelmakers for 2024/25 is £66 per MWh. That compares to an equivalent price of just £43/MWh in France and £50/MWh in Germany. As a consequence, UK steelmakers pay between £37-£50 million more for their electricity each year than competitors on the continent.
Responding to the report, Community’s Assistant General Secretary Alasdair McDiarmid said:
“None of the challenges the UK Steel industry faces are made any easier by the huge industrial energy costs our steelmakers face. The new report from UK Steel suggests that the gaping disparity between what British and other European steelmakers pay for their energy – something which steel producers and steel unions flagged up relentlessly with the previous government over 14 years – shows little sign of levelling-off.
“With a new government in place which has outlined its commitment to a viable, long-term future for our steel industry – as demonstrated through the £2.5 billion green steel fund – there is now an opportunity for action to address this longstanding issue. UK Steel’s recommendations on network charges, market reform and formalised government tracking of energy price disparities between countries should all be explored.”
You can read the full report from UK Steel here.
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