The Mirror reported that Trade body UK Steel has called on British Government to extend support to the sector after electricity costs soared above GBP 1,500 per MWh this week, more than 30 times the historical average forcing some steelmaker to temporarily halted production. UK Steel’s Director-General Mr Gareth Stace said “Massive electricity price spikes this week have all but broken the Energy Bill Relief Scheme, which aims to shield industry from sustained, unsustainable price levels. Electricity prices are at 30 times their historical average this week, forcing some steel companies to cease production at key times during the day. This is simply not sustainable for the steel sector.”Mr Stace added “The steel sector is looking to the Government to announce that it will continue to cap electricity and gas prices for vulnerable sectors, such as steelmakers, when it publishes its review of the EBRS, expected before the end of the year. “He said that “The German government is planning a scheme for all of 2023, where it will guarantee wholesale electricity prices at EUR 130 per MWh, well below the UK’s cap of GBP 211 per MWh. The UK Government should match this to ensure our industry’s ability to compete.”He added “Without the continuation of the EBRS, our estimates show electricity prices being double those of German industry’s next year, leading to reduced production, shrinking market share and increased imports. Prolonged and frequent halts to production could become the norm, negatively impacting productivity, and leading to a decline in steel production in the UK.”He urged “The Government must extend the support scheme, otherwise the UK steel sector will be wholly exposed to ravages of volatile energy markets with predictably grim consequences.”
The Mirror reported that Trade body UK Steel has called on British Government to extend support to the sector after electricity costs soared above GBP 1,500 per MWh this week, more than 30 times the historical average forcing some steelmaker to temporarily halted production. UK Steel’s Director-General Mr Gareth Stace said “Massive electricity price spikes this week have all but broken the Energy Bill Relief Scheme, which aims to shield industry from sustained, unsustainable price levels. Electricity prices are at 30 times their historical average this week, forcing some steel companies to cease production at key times during the day. This is simply not sustainable for the steel sector.”Mr Stace added “The steel sector is looking to the Government to announce that it will continue to cap electricity and gas prices for vulnerable sectors, such as steelmakers, when it publishes its review of the EBRS, expected before the end of the year. “He said that “The German government is planning a scheme for all of 2023, where it will guarantee wholesale electricity prices at EUR 130 per MWh, well below the UK’s cap of GBP 211 per MWh. The UK Government should match this to ensure our industry’s ability to compete.”He added “Without the continuation of the EBRS, our estimates show electricity prices being double those of German industry’s next year, leading to reduced production, shrinking market share and increased imports. Prolonged and frequent halts to production could become the norm, negatively impacting productivity, and leading to a decline in steel production in the UK.”He urged “The Government must extend the support scheme, otherwise the UK steel sector will be wholly exposed to ravages of volatile energy markets with predictably grim consequences.”
