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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential disparity in electricity prices between steelmakers in the UK, France and Germany.

There have been regular discussions with my Rt. Hon. Friend Mr Chancellor of the Exchequer on a wide range of issues of importance to the steel industry.

We recognise that industrial consumers currently pay higher electricity prices than elsewhere in most of Europe and we have therefore taken steps to reduce the indirect cost due to the Renewables Obligation, Contract-for-Difference and small-scale Feed-in Tariff for certain energy intensive industries, including the steel sector, and to provide compensation for the indirect emission cost due to the UK Emission Trading System and Carbon Price Support Mechanism, including to the steel sector. These steps total more than £500m in relief to the sector between 2013 and the end of 2019 to make electricity prices more competitive, including around £150 million during 2019.

We have also introduced a metallurgical exemption from the Climate Change Levy. France and Germany have taken similar steps. Additionally, at Budget 2018 we announced £315 million for the Industrial Energy Transformation Fund (IETF) to support industrial energy efficiency and decarbonisation projects to bring energy costs down for these vital industries.

We are about the publish a consultation reviewing the compensation schemes for the indirect emission cost due to UK carbon pricing.