UK steel industry faces high electricity costs
Time:Thu, 16 Nov 2023 09:40:46 +0800
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A recent study revealed that UK steel companies are paying nearly double the electricity costs compared to their foreign counterparts.
In the 2023/24 fiscal year, the average electricity price for UK steel manufacturers was £113 per megawatt-hour, while German and French companies paid £61 per megawatt-hour. This disparity is estimated to lead UK companies to pay an additional £117 million compared to their European competitors this year.
The study came after UK steel companies, Tata Steel and British Steel, announced plans to shift from traditional blast furnaces to less polluting electric arc furnaces, resulting in substantial job losses.
Urging government intervention to reduce electricity costs, UK Steel proposed four recommendations, including the introduction of the British Industry Supercharger package and monitoring energy price differences between countries.
Unions and experts highlighted the significant barrier posed by high energy costs to the UK steel industry, criticizing the government's relatively slow response to this issue.
The UK government spokesperson expressed intentions to enhance steel industry competitiveness by lowering electricity prices and aims to implement the British Industry Supercharger package by spring 2024.
