Provide price parity with the lowest-cost European competitors
By fixing electricity prices to French and German prices (whichever is lowest) for the steel sector, increasing global competitiveness.
Protect against price volatility
Enabling long-term planning and investment in low-carbon technologies such as Electric Arc Furnaces.
Share risk and reward
With the sector paying back the Government when prices fall below the agreed strike price. The mechanism will also incentivise flexibility and reduce overall energy system costs.