The UK steel industry has proposed a mechanism to address uncompetitive electricity prices, which have placed British steelmakers at a disadvantage compared to their European counterparts. The proposed solution includes a two-way Contract for Difference (CfD) mechanism to stabilize electricity costs, ensuring price parity with competitors and protecting against price volatility.
This initiative aims to enhance the industry's global competitiveness, attract investment, and support the transition to low-carbon technologies such as Electric Arc Furnaces. The proposal is seen as a critical step in safeguarding the future of the UK steel sector and securing thousands of jobs.
