Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what consideration they have given to introducing a two-way contract for difference to provide competitive wholesale electricity prices to the steel industry.

We recognise the importance of competitive electricity prices in enabling the UK steel sector to thrive.

We are developing a comprehensive steel strategy, to be published this year, which will set out the conditions needed to create a competitive business environment in the UK. This strategy aims to attract new private investment and expand UK steelmaking capability in alignment with our Net Zero goals. As part of this, we launched the Plan for Steel Consultation in March to examine long-term challenges facing the industry, including how domestic producers can meet more UK demand.

To support decarbonisation and growth, the Government will renew the Industrial Decarbonisation Strategy, providing long-term confidence for industry to invest in low-carbon technologies. We remain committed to our manifesto pledge to invest up to £2.5 billion in steel through the National Wealth Fund and other routes.

The UK steel industry has a long-term future under this Government. We are determined to work towards a bright future for steel—protecting jobs, driving growth, and ensuring our industrial heartlands remain at the forefront of a competitive, low-carbon economy.