22 November 2019
Ofgem has published the outcome of its Target Charging Review, which reforms the residual elements of network charging. The proposals that will need to be implemented by utility companies, look set to significantly increase electricity costs for a number of steel producers, particularly for those operating EAFs.
UK Steel has long raised serious concerns about the impact of Ofgem’s proposals on the costs of steel production in the UK, and the lack of any real consultation with industry.
Gareth Stace, UK Steel Director General, said: “We have time after time alerted Ofgem of the direct impact of their proposed reforms on the steel sector, but unbelievably our warnings have fallen on deaf ears. The independent regulator has completely failed to take industrial concerns into account and is set to worsen the business environment for UK steelmaking and energy intensive industries.”
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