UK Steel - Proposed uplift to the Network Charging Compensation Scheme for EIIs

UK Steel strongly supports the proposal to increase Network Charging Compensation for energy-intensive industries from 60% to 90%, bringing the UK closer to the levels provided in Germany and France and helping to address a long-standing electricity price disadvantage faced by steelmakers. The uplift would materially reduce industrial power costs, improve international competitiveness and remove a significant barrier to investment and decarbonisation, while backdating the change to April 2025 is essential to deliver timely relief. 

UK Steel highlights that high and volatile network charges are a major contributor to the UK–EU electricity price gap and risk undermining both current production and future low-carbon investment. We also support extending the application window to two months to improve administrative flexibility and certainty for participants.