UK steel producers pay up to 50% more for electricity than competitors in France and Germany, resulting in an additional £37 million in costs.
UK Steel has published a report showing that electricity costs for UK steelmakers remain significantly higher than those for their European counterparts.
UK Steel has published a report showing that electricity costs for UK steelmakers remain significantly higher than those for their European counterparts, impacting the industry’s competitiveness and future growth.
The trade body recommends three actions to reduce electricity prices: compensating for 90% of network charges to match support levels in France and Germany, reforming the wholesale electricity market, and tracking energy price disparities between countries.
UK Steel Director General Gareth Stace said: “For too long, the UK steel industry has been crippled by high industrial electricity prices, placing a heavy burden on the industry’s competitiveness, profitability and ability to invest in future growth.
“The average price faced by UK steelmakers for 2024/25 is £66 per MWh compared to the French price of £43/MWh and the German £50/MWh.
“That’s a price gap of up to £22/MWh, meaning we pay £37-50 million more for our electricity this year than our European competitors.”
