Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment he has made of the (a) competitiveness of electricity prices in the UK and (b) effect of those prices on the UK steel sector’s ability to compete internationally.

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.

The Government has put moving to a cleaner, greener economy at the heart of its Industrial Strategy, especially with our commitment to Net Zero. Our aim is to work with the steel sector and help them to reduce carbon emissions. We will continue to support the steel sector in achieving these aims through the various funds available such as the Industrial Energy Transformation Fund and Clean Steel Fund.

We estimate that reduction in the various renewable costs for eligible energy intensive industries, including steel, will save them around £400m a year in electricity costs. We have also extended the schemes to compensate certain energy intensive industries for indirect emission cost to the end of the next financial year in order to minimise disruption to existing recipients whilst we conduct a review. Between 2013 and 2019, total compensation paid to the steel sector was over £480m.

We welcome the recent report by UK Steel - “Closing the Gap” - regarding electricity prices and will give its recommendations careful consideration.