Electricity costs put UK steelmakers in worst position in three years against EU rivals

{"heading":"The Impact of High Electricity Costs on UK Steelmakers","subheading":"Analysis of the UK's reliance on gas for power generation and its effect on electricity prices","paragraph_1":"The UK's reliance on gas for power generation has led to higher electricity costs, particularly for British steelmakers, who are now paying almost £30 per megawatt hour (MWh) more than their French counterparts.","paragraph_2":"This situation has been exacerbated by the US-Israeli war on Iran, which has caused a surge in global gas prices, resulting in the highest level of the gap in three years.","paragraph_3":"The UK's electricity market is heavily influenced by the wholesale gas price, which determines the price of electricity even from other sources that cost much less to produce, such as wind or solar power.","paragraph_4":"In contrast, France's electricity prices are mainly determined by its nuclear reactors, while Germany's heavily polluting coal still plays a large role in generation.","paragraph_5":"The government has announced measures to support more than 100,000 workforce opportunities in eight key growth sectors, including advanced manufacturing and the creative industries, to help reindustrialize the UK."}