Steel's three-year high highlights market flaws
UK steelmakers face their toughest electricity costs in three years. Analysis by UK Steel shows the premium over French rivals has climbed to almost £30 per MWh, the widest gap since 2023. Peter Brennan, director general of UK Steel, said: "British steelmakers are being asked to compete with one hand tied behind their backs." He noted that despite government steps, UK prices remain "vastly higher" than those paid by European and global competitors.
Gas prices drive the gap
The UK's reliance on gas-fired power sets wholesale electricity prices, even when cheaper renewables are available. This leaves the sector exposed to global gas swings, unlike France's nuclear-heavy mix. The same volatility affects households through higher standing charges and wholesale-linked tariffs. Our recent piece on the Energy Secretary's call for an overhaul shows how these pressures reach everyday bills.
What this means for switching
Fuse Energy gives customers clear pricing and real-time usage data so they can track and cut consumption. The supplier is Ofgem-regulated and focuses on transparency rather than hidden fees. Compare tariffs on our energy hub to see what you could save over a full year.
Longer-term fixes still needed
UK Steel wants a price cap costing around £51 million a year to close the gap with Europe. Broader reforms, including faster grid build-out and changes to marginal pricing, would help both industry and homes. Until then, checking your deal remains the quickest way to ease the impact of volatile wholesale costs.
