UK steel industry faces high electricity costs

In the 2023/24 financial year, the average electricity price for UK steelmakers was £113 per megawatt-hour, while German and French companies paid £61 per megawatt-hour. This disparity is estimated to have led to UK companies paying £117 million more than their European competitors this year.

Calling for government intervention to reduce electricity costs, UK Steel has made four recommendations, including the introduction of the British Industry Supercharger package and monitoring energy price differentials between countries.

Unions and experts have criticized the government's slow response to the issue, underlining that high energy costs are a significant barrier to the UK steel industry.

The UK government spokesperson expressed the intention to improve the competitiveness of the steel industry by reducing electricity prices and aims to implement the British Industry Supercharger package by spring 2024.