SSI’s decision to close its steel plant in Redcar – which is expected to result in 1,700 job losses – has led to the Government setting up a steel summit.

Along with substantial falls in steel prices, the UK’s uncompetitive electricity prices have been a contributing factor to the closure of the plant in Redcar.

Subsequently, the Global Warming Policy Forum is calling on the Government to scrap Britain’s unilateral Carbon Floor Price, which is contributing to the crisis of UK steel and other energy intensive industries.

The GWPF has been consistently warning about the rising policy cost of electricity prices which are expected to increase by 47% by 2020 for large industrial energy consumers. The UK’s extra large users of electricity are already paying nearly twice as much for power as the EU average.

Responding to SSI’s decision to close the steel plant in Redcar, GWPF director Dr. Benny Peiser said, “Energy intensive industries – including UK steel – are facing are growing competitiveness crisis. Britain’s unilateral climate policies are racking up electricity prices and are adding to the cost burden.”

“Government policies to compensate the steel industry for high electricity prices are merely a sticking plaster, and do not solve the issue of competitiveness in the long term.”

“The Government should consider scrapping the Carbon Price Floor that is hitting UK manufacturers. They also need to bear down on the growing costs of renewable energy subsidies.”