To ask Her Majesty's Government why the British steel industry is paying more for electricity than its counterparts in Europe; what is the average megawatt price for steel producers in the UK; and how it compares with the cost of electricity for steel producers in France.
9 July 2019
Between 2005 and 2010, industrial electricity prices rose by 64 per cent. Including taxes, industrial electricity prices rose from 4.77 pence per kWh in 2005 to 7.84 pence per kWh in 2010.
The steel sector has received more than £295 million in compensation since 2013 to make energy costs more competitive, including over £53 million during 2018. In addition, between 2017 and 2019, the Government has introduced policies that provide eligible steel producers with an 85% reduction in renewable energy policy costs in their electricity bills. Last year we announced the Industrial Energy Transformation Fund worth up to £315 million to support businesses with high energy use to transition to a low carbon future and to cut their bills through increased energy efficiency.
Between 2010 and 2017, industrial electricity prices (including taxes) have risen from 7.84 to 9.79 pence per kWh, an increase of 25%.