Iron and Steel: Manufacturing Industries

(asked on 2nd February 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the UK steel sector’s commitment to increase capital investment in the UK in the event that the Government takes steps to ensure that electricity costs are competitive.


Answered by
Nadhim Zahawi Portrait
Nadhim Zahawi
This question was answered on 10th February 2021

The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.

Our aim is to work with the steel sector and help them to reduce carbon emissions. We will continue to support the steel sector in achieving these aims through the various funds available such as the Industrial Energy Transformation Fund and Clean Steel Fund.

We estimate that the reduction in the various renewable policy costs for eligible energy intensive industries, including steel, will save them around £400m a year in electricity costs. Between 2013 and 2019, total compensation paid to the steel sector was over £480m.

We have also extended compensation for the indirect emission costs in electricity prices for the most energy-intensive companies at significant risk of carbon leakage by a year, to the end of 2021.

Reticulating Splines