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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate the Government has made of the cost of energy in the steel sectors in the (a) UK, (b) Germany and (c) France.

An estimate based on the latest ONS data available shows energy costs in 2016 for the manufacture of basic iron and steel in the UK at £1.5bn[1]. Eurostat data is not published at a detailed enough level to allow for a robust estimate of energy costs specific to the steel sector for different EU countries.

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive.

As announced in the Budget on 29 October 2018, £315 million is being provided for an Industrial Energy Transformation Fund to support industrial energy efficiency and decarbonisation projects to bring energy costs down for vital industries, including the steel sector. Furthermore, our Industrial Heat Recovery Support Programme is now open to applications for feasibility and/or preliminary engineering studies. We will publish our response to the consultation on widening eligibility for the exemption schemes for energy intensive industries in due course.

We also continue to reduce the cumulative impact of energy and climate change policies on industrial electricity prices for key energy intensive industries. This includes a package of relief for these industries worth over £850 million since 2013, of which £271m has been provided to the steel sector in compensation as of 30 November 2018.

[1] ONS Input-Output Supply Use Tables. Data for 2016. Energy costs defined as the intermediate consumption from Manufacture of Basic Iron and Steel (24.1-3) of; Coal and lignite (05); Crude Petroleum and Natural Gas (06) + Metal Ores (07); Coke and refined petroleum products (19); Electricity, transmission and distribution (35.1); and Gas; distribution of gaseous fuels through mains; steam and air conditioning supply (35.2-.3).