UK Steel Managing Director Gareth Stace said wholesale prices have quadrupled to £1,000/MWh.
He said some companies were forced to temporarily halt production when the price "wept the roof".
UK Steel said electricity costs make up 20% of the price of converting raw materials into steel.
"If you get a company like Celsa in Cardiff, they use half the electricity in the city," said Mr Stace.
Gareth Stace says the Tata steelworks in Port Talbot uses "large amounts of electricity and gas."
Celsa UK produces 1.2 million tons of steel per year using an electric arc furnace.
Mr Stace urged the UK government to take action.
"Government action is essential to correct structural weaknesses that are causing UK producers' energy costs to significantly outpace European prices," he said.
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