UK Steel's Electricity Costs Soar Above Rivals

British steelmakers are experiencing unprecedented electricity cost disadvantages compared to their European counterparts. Analysis reveals the premium paid by the UK industry over French competitors has surged to nearly £30 per megawatt hour, the highest in three years. This escalating cost is largely driven by a sharp increase in global gas prices, a situation compounded by geopolitical tensions impacting supply routes. The UK's energy market structure, where wholesale gas prices dictate electricity costs from all sources, contributes to this issue. France's electricity prices are primarily influenced by nuclear power, while Germany still relies heavily on coal. This price disparity is crucial as the EU represents a significant market for British steel exports. Industry leaders are calling for direct government subsidies, with proposals for a price cap estimated to cost £51 million annually, as the only viable immediate solution. The government has acknowledged the issue, announcing measures to support manufacturing businesses with reduced electricity bills and aiming to reindustrialise Britain.