Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what estimate his Department has made of a) the average energy cost faced by UK steel producers in the most recent year, b) the equivalent cost faced by producers in France and Germany, and c) the potential impact of this cost gap on the competitiveness of UK steelmaking.

The Government is committed to delivering a steel strategy setting out a long-term vision for the UK steel industry articulating what is needed to create a competitive business environment in the UK and the actions required to get there.

UK steel producers that benefit from British Industry Supercharger support and the current Network Charging Compensation scheme paid industrial electricity prices of £93 per MWh in 2025 (a 60% relief). The increase in compensation for network charges from 60% to 90%, which was announced in the Industrial Strategy and will be delivered from 1 April 2026, will reduce electricity prices for steel producers by a further £7 to £10 per MWh approximately.

The equivalent cost faced by industrial electricity users in France and Germany is £69/MWh and £60/MWh respectively. Using average electricity intensity factors for electric arc furnace-based steel production, the difference to UK producers equates to approximately £8-£13 per tonne of crude steel.