The UK government has announced that it has set out plans to help reduce electricity costs for energy intensive industries, including the steel industry, from next year to ensure they can remain internationally competitive.
The proposal, on which there will be consultations in the spring, will exempt firms from certain costs linked to renewable energy obligations and capacity market costs, as well as exploring reductions on network charges, which are the costs industrial users pay for their supply of electricity.
According to the statement, 300 companies - employing 400,000 skilled workers - in vital sectors including steel, metals, chemicals and paper will benefit from the proposed measure.
“UK industrial electricity prices have been uncompetitive for many years, and the government took a great step towards levelling the playing field for the steel industry. We look forward to working with government to ensure full price parity with European competitors. It is essential we can compete on an equal footing, in the short term, within the fiercely competitive steel market, both in Europe and globally,” Gareth Stace, director general of UK Steel, said.
