UK Steel estimates UK steelmakers' electricity costs are nearly £30/MWh above France's.
Why it matters: The reported gap could weaken UK steelmakers' competitiveness in European markets. About 75% of UK steel exports go to the EU, worth roughly £3 billion annually, according to the government's steel strategy.
- The Guardian reported UK Steel's estimate on October 19, 2026; the underlying methodology is not provided in the available materials.
- The reported UK-France gap was about £18/MWh in 2025 and roughly £153/MWh in 2022; the UK-Germany gap was about £12/MWh.
- The British Industrial Competitiveness Scheme is intended to reduce eligible manufacturers' costs by £35-£40/MWh.
- UK Steel estimates its proposed electricity-price cap would cost about £51 million a year.
As of October 19, 2026: The Guardian reported a UK Steel analysis estimating that UK steelmakers' electricity costs were nearly £30 per megawatt-hour above those of French competitors.
That figure should be treated as a reported industry estimate, not an independently verified cost gap. The available materials do not say whether the comparison uses annual averages, spot prices or a snapshot. They also do not specify the comparison dates or whether the figure includes wholesale costs, network charges, taxes, levies, contracts and relief schemes. The Guardian report does not provide a direct link to UK Steel's underlying analysis or methodology.
The reported UK-France gap was about £18/MWh in 2025 and roughly £153/MWh in 2022. The materials do not establish whether those figures are annual averages, snapshots or otherwise comparable periods. The UK-Germany gap was reported at about £12/MWh on the same basis.
The 2022 comparison was made during the gas-price crisis that followed Russia's invasion of Ukraine. The government's steel strategy says gas sets the UK electricity price most of the time and identifies high power costs as a competitiveness and investment obstacle.
The strategy says the British Industry Supercharger reduced UK steel producers' policy-related electricity costs by 93% in 2025, against the relevant pre-support policy-cost baseline. That measures policy-related costs for UK steel producers, not total electricity prices relative to France or Germany.
The Supercharger addresses network-charge compensation, while the separate British Industrial Competitiveness Scheme is intended to reduce costs for eligible manufacturers by £35-£40/MWh. The available materials do not establish that the schemes replace one another or that their amounts can be added together.
The Guardian report said UK Steel's proposed electricity-price cap would cost about £51 million a year. The steel strategy says about 75% of UK steel exports go to the EU, with an annual value of roughly £3 billion.
By the numbers
- Nearly £30/MWh - UK Steel's reported estimate of the UK-France electricity-cost gap
- £18/MWh and £153/MWh - reported UK-France gaps for 2025 and 2022, respectively
- £35-£40/MWh - intended cost reduction under the British Industrial Competitiveness Scheme
Yes, but: The central comparison is not fully reproducible from the available materials: the period, price basis, included charges and treatment of contracts and relief schemes are unspecified, and no direct UK Steel methodology link is provided.