Iron and Steel: Manufacturing Industries

(asked on 27th January 2016) - View Source

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

To ask Her Majesty’s Government what is the electricity cost per tonne of steel produced in (1) the UK, (2) Germany, and (3) France, and what assessment they have made of the reasons for any differential cost in the UK.


Answered by
Baroness Neville-Rolfe Portrait
Baroness Neville-Rolfe
Minister of State (Cabinet Office)
This question was answered on 15th February 2016

The Government assessed, and published a report about, the impact of energy and climate change policies on industry and how this compares to other countries. That report was published on 11 July 2012. Based on this data the projected cost per MWh of energy and climate change polices for industry for 2015 (expressed in 2010 prices) was £18.50 in the UK, £5.80 for France, and £13.10 for Germany. However the Government has since taken action to mitigate most of the indirect costs arising from energy and climate change policies for industry, specifically by compensating for the indirect costs of carbon taxes and now by implementing relief from the costs of renewables policies passed through in bills. These measures will save the steel industry around £100m over the financial year – roughly 30% of their electricity bills.

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