Power Struggle: UK Steel Industry Battles High Electricity Costs

Britain's steel industry urges government intervention as high electricity prices threaten its competitiveness compared to European peers. A recent U.S. tariff further pressures the sector, prompting calls for a fixed electricity pricing scheme. The government plans to address high energy costs and invest in the steel industry.

The British steel industry is urgently calling for government action to lower electricity costs, which are reportedly up to 50% higher than those faced by European competitors.

Compounding this challenge is a 25% tariff on exports to the U.S., a critical market, adding to the mounting financial pressures. Frank Aaskov of UK Steel stressed the need for competitive pricing to ensure the sector's survival and national security amid global instability.

The industry advocates for fixed electricity prices through a contract-for-difference model to shield against price swings. The government has initiated consultations on a comprehensive steel strategy worth £2.5 billion, highlighting efforts to align UK energy costs closer with global standards.

(With inputs from agencies.)