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Steel News September 21, 2021 12:45:47 PM

Spike in Power Price Causes Significant Damage to UK Steelmakers

Paul Ploumis
ScrapMonster Author
He pointed out that cost of energy now ranges in the thousands per megawatt hour, as compared to around £50 last year.

Spike in Power Price Causes Significant Damage to UK Steelmakers

SEATTLE (Scrap Monster): The spike in electricity prices has caused severe damage to the steel industry, said industry body UK Steel. Many companies were being forced to temporarily stop production, as the spiralling electricity charges have made steelmaking quite uneconomical.

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According to Gareth Stace, Director General, UK Steel, the steel manufacturers are generally the largest consumers of electricity. For instance, the electric arc furnaces of Celsa in Cardiff consume almost half the electricity in the city. He urged the government to take necessary action to save steelmaking companies from the huge burden of rising electricity charges. He pointed out that cost of energy now ranges in the thousands per megawatt hour, as compared to around £50 last year.

The prices have risen across European region, with the wholesale electricity charges quadrupling in the UK. The disparity in electricity prices has badly affected UK steelmakers, when compared to its other European competitors.

Meantime British Steel- the UK’s second-biggest steel producer too noted that unprecedented surge in power prices has made it difficult to sustain profitable production, forcing them to suspend operations at peak times.

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