UK government sets energy price cap

Thursday, 22 September 2022 13:39:15 (GMT+3)   |   Istanbul

The UK government has announced details of a government support package amid high energy prices, introducing a cap on energy bills for businesses, including companies in the steel industry, charities and public organizations for six months starting on October 1.

The government has set a Supported Wholesale Price, which is expected to be £211/MWh for electricity and £75/MWh for natural gas.

Prior to this package, UK Steel trade association analysis showed that UK steel producers faced significantly higher electricity prices than their European competitors, with the price disparity skyrocketing since energy prices increased.

“Setting a price cap for electricity at £211/MWh for six months gives foundation sectors, such as steel, the chance to get through the winter by giving us a competitive business landscape. If we have parity on energy prices, then we can make steel competitively and provide well-paid and highly skilled jobs in areas of the UK. The government must now move to rapidly reform the energy market to ensure longer-term competitive price beyond the current price cap,” Gareth Stace, director general of UK Steel, commented.

Tags: UK Europe Steelmaking 

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