UK Steel has warned that UK steelmakers face electricity costs up to 25% higher than EU rivals, risking competitiveness despite government relief measures.
Average power prices for 2025-26:
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UK: £59.48/MWh
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Germany: £52.04/MWh
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France: £47.76/MWh
Electricity is a major cost driver, and rising demand from electric arc furnace (EAF) adoption could push power costs to 180% of GVA for UK producers.
UK Steel calls for:
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Two-way contracts for difference (CfDs) to align prices with EU rivals.
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Backdating of network charge compensation to April 2025 to offset excess costs.
VietnamSteel by Hoa Sen Group
