High Voltage Woes: UK Steelmakers Shocked by Electricity Costs

The British steel sector is calling on the government to do something about excessive electricity prices, which are between 50% more expensive than those in Germany and France. British steel manufacturers are charged about £68 per megawatt-hour, as opposed to £52 in Germany and £44 in France. The sector calls for fixed electricity prices through a contract-for-difference arrangement to promote competitiveness and save jobs. This is a serious problem as the industry makes the shift to electric arc furnaces, which will double electricity usage. The industry is also hit with a 25% tariff on U.S. exports, further putting its finances under pressure.

 

Source: Reuters