UK Steel comments on government’s emergency action on energy costs

Image: UK Steel

Director general of UK Steel, Gareth Stace, has commented on the government’s announced energy support package, stating: “The steel industry welcomes the Prime Minister’s announcement of a proposed six-month guarantee to reduce business energy prices, but it is critical we quickly see details on the scale and ambition of this proposal confirming it is sufficient to ensure steel producers can competitively produce steel in the months ahead. It is also vital the government now engages with the steel sector to provide certainty on what further support will be provided to the most energy intensive industries beyond this six-month guarantee.

“As the government knows, the enormous energy price increases are already impacting the ability of many in the steel sector to operate competitively in the UK and companies cannot continue to shoulder such high costs, let alone further increases. As European governments move forward with their own packages to reduce energy costs and decarbonise industry it is vital the UK keeps pace and matches the scale of intervention. As ever, a level playing field is critical for long term sustainable steel production in the UK.

“The government must plan on the probability of energy prices remaining at extremely high levels for years to come and therefore should waste no time in bringing forward fundamental reform of the electricity wholesale market to deliver permanently lower prices for everyone. It is also important that work already underway to deliver reductions in policy and network costs for the steel sector are advanced and quickly introduced.”

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