Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment she has made of the impact of electricity prices on (a) steel producers and (b) the steel industry.

Ofgem has previously carried out research on what drives comparatively high GB electricity prices for energy intensive industries (EIIs) and has compared these with selected European countries. Ofgem published a report in 2021 which can be found here: https://www.ofgem.gov.uk/publications/research-gb-electricity-prices-energy-intensive-industries(opens in a new tab).

The Government recognises that EIIs, including steel producers, are feeling the impact of high energy prices. The 2022 British Energy Security Strategy announced that the EII Compensation Scheme would be extended for a further 3 years.

In February, we announced the British Industry Supercharger: a decisive set of measures aimed at reducing electricity costs for EIIs to bring them in line with those charged across the world’s major economies.

We have already provided extensive energy costs relief to the steel sector since 2013, including through the Energy Bills Relief Scheme. Steel producers will continue to receive support until 31 March 2024 through the Energy Bills Discount Scheme.