British steel producers pay twice as much electricity as Europe!

According to a published report, steelmakers' attempts to reduce their carbon emissions are hampered by very high electricity prices.

Rising energy costs are hampering plans to switch to cleaner production, as greener methods require more electricity, according to UK Steel's research. Still, large energy bills mean less cash to go towards more environmentally friendly technologies. The study aims to increase pressure on ministers to lower electricity costs so that companies have more money to spend on developing cleaner production.

UK Steel argues that lower electricity prices will also make it more attractive for companies to use electricity. The 12-page report “An obstacle to decarbonisation: industrial electricity prices faced by British steelmakers” shows how British firms face higher costs than their foreign competitors, who could sell their steel cheaper.

In the autumn, energy prices skyrocketed, with British producers paying £88 more per megawatt hour than German firms.

Last year, the gap between electricity prices paid by UK and European steelmakers nearly doubled, costing the industry £90m in additional costs.