Source · Select Committees · Business and Trade Committee
Recommendation 23
23
Not Addressed
Paragraph: 125
We recognise that decisions on how and whether to compensate industry for the costs of...
Recommendation
We recognise that decisions on how and whether to compensate industry for the costs of electricity will, by necessity, have implications for consumers and other network users. However, it is clear that current electricity costs for UK steel Liberty Steel and the Future of the UK Steel Industry 65 producers are unsustainable. Compensation provided by the Government to the UK steel industry to date has fallen far short of the support offered to their competitors and has not translated into a meaningful reduction in the price disparity. Energy policy costs have been brought down but remain twice as high as those in France and Germany while network costs are almost ten times as high. Further support from the UK Government will be needed if the UK steel industry is to compete on a level playing field and attract investment. This issue will only become more urgent as the industry moves to decarbonise and the sector’s demand for electricity rises accordingly.
Government response summary AI-generated
The government's response discusses the IASB's project on supply chain finance and proposed accounting amendments, which does not address the committee's call for further support to reduce electricity costs for the steel industry.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
125
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
43. We recognise this is a worrying time for businesses facing pressures due to the significant increases in global gas prices, and the subsequent increases in electricity prices. Extensive engagement with industry continues across Government at both a ministerial and official level.
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