{
  "id": 15510542,
  "title": "Electricity costs put UK steelmakers in worst position in three years against EU rivals",
  "url": "https://urgent.news/2026/10/18/electricity-costs-put-uk-steelmakers-in-worst-position-in-three-years",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-18T23:01:12.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/2026/oct/19/electricity-costs-uk-steelmakers-worst-position-three-years-eu-rivals"
  },
  "original_language": "en",
  "account": "UK steelmakers find themselves in the weakest position in three years when it comes to electricity costs compared to their European rivals, according to a recent analysis. The premium paid by British steelmakers over French counterparts has increased to nearly £30 per megawatt hour (MWh), a level not seen since 2020, as reported by the UK Steel lobby group. This rise in electricity costs is largely attributed to the surge in global gas prices caused by the US-Israeli war on Iran, which forced a closure of the Hormuz Strait. The UK's reliance on gas for power generation, particularly in electricity production for electric arc furnaces, has contributed to its high electricity prices. France, on the other hand, mainly relies on nuclear reactors for electricity generation, while Germany still heavily depends on coal. The gap between UK and France electricity costs has widened to £30 per MWh, from £18 last year, while the gap with Germany has narrowed slightly to about £12. For UK steelmakers, this means they are at a disadvantage when competing against European rivals, as the EU often represents the main market for British manufactured products, including around 75% of exported steel worth about £3 billion annually. Keir Starmer's government has removed some of the costs added by policy to heavy industrial businesses' electricity costs in the past year, but the main solution to bring down the electricity prices further remains unclear. UK Steel's director general, Peter Brennan, has suggested that direct subsidies could be the only way to help steelmakers. The group has proposed a price cap that would cost around £51 million per year, with the government paying the difference when prices exceed this level, and the industry paying the government if prices fall below it.",
  "summary": "Premium paid over French counterparts has risen to almost £30 a megawatt hour, analysis by lobby group finds British steelmakers have been pushed further behind European rivals on electricity costs after the US-Israeli war on Iran caused a surge in global gas prices. The premium paid by the British industry over its French counterpart has risen to almost £30 a megawatt hour (MWh), its highest…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}