British steel producers face a severe competitiveness disadvantage as electricity prices reach 77% above those in France and Germany. This gap, widened by the Middle East conflict, puts UK costs at £84 per megawatt hour, compared to £48 in France and £65 in Germany.

This price disparity creates an annual £82 million burden for the industry. While the new British Industrial Competitiveness Scheme (BICS) assists supply chain segments, it fails to provide relief to primary steelmakers exposed to high wholesale power rates.

UK Steel, a trade association for the UK steel industry, urges the government to adopt a wholesale price rebalancing mechanism to align costs with continental competitors. Without this intervention, domestic decarbonization projects and the government’s Steel Strategy remain in jeopardy.