Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the effect of the level of energy prices on the steel industry; and if he will make a statement.

The Government recognises that energy costs are among the factors that have an impact on the competitiveness of the steel industry and for that reason has provided over £50 million compensation to steel makers for energy costs.

We are also in advanced discussions with the European Commission to approve millions of pounds of further compensation for energy intensive industries, including steel makers. Many years of underinvestment in the UK’s energy infrastructure has meant wholesale prices of energy are higher in the UK than in some other EU countries. The Government is committed to addressing this long term issue through, for example, new nuclear plants and our support for shale gas extraction.