Steel bosses say jobs are at risk due to power prices
THOUSANDS of steel jobs are in danger unless ministers slash energy costs, the industry warns today.
A study shows the average electricity price for steel producers in the UK this year is about £65 per megawatt hour.
It is £31/MWh in France and £43/MWh in Germany.
UK Steel directorgeneral Gareth Stace said: “This is the third year we have analysed the disparity between prices faced by UK steelmakers and their EU competitors, and the third year it has increased.
DAMAGE
“Electricity is one of the biggest costs and it damages competitiveness that we consistently pay significantly more.
“This disparity can now add up to £17 to the cost of producing a tonne of steel.
“This can be the difference between winning and losing a supply contract.”
The Mirror has urged an energy price cut for steel firms as part of our Save Our Steel campaign.
It was hoped a review into energy costs would pave the way for a price cut. But Mr Stace said: “We have gone backwards.”
He added: “The Government must commit to eliminating the disparity.”
The UK steel industry directly employs 31,900 people and supports an estimated 50,000 jobs.