Electricity costs put UK steelmakers in worst position in three years against EU rivals
Source: The Guardian ·
Premium paid over French counterparts has risen to almost £30 a megawatt hour, analysis by lobby group findsBritish steelmakers have been pushed further behind European rivals on electricity costs after the US-Israeli war on Iran caused a surge in global gas prices.The premium paid by the British industry over its French counterpart has risen to almost £30 a megawatt hour (MWh), its highest…
From the source
British steelmakers have been pushed further behind European rivals on electricity costs after the US-Israeli war on Iran caused a surge in global gas prices. The premium paid by the British industry over its French counterpart has risen to almost £30 a megawatt hour (MWh), its highest level in three years, according to analysis by the lobby group UK Steel. Energy prices have long been one of the main factors businesses cite when asked what is holding back British industry. For Andy Burnham they represent perhaps the biggest obstacle to his goal of “reindustrialising” the UK. Analysts blame the UK’s high electricity prices on its reliance on gas for power generation, which is crucial for cleaner steelmaking with electric arc furnaces. The way the market is set up means that the wholesale gas price determines the price of electricity even from other sources that cost much less to produce, such as wind or solar power, and Iran’s closure of the strait of Hormuz in response to Donald…