LONDON, UK – April 10, 2025 — The British government has pledged significant financial support for domestic steelmakers through a new electricity cost reduction initiative, reaffirmed at the second meeting of the Steel Industry Council, according to an official government report.
Secretary of State for Industry Sarah Jones announced that the newly implemented Network Charge Compensation (NCC) scheme—part of the government’s broader British Industry Supercharger package—will cut energy costs for energy-intensive industries, including steel, by more than £300 million in 2025 alone.
"This move brings UK industrial energy costs closer in line with global competitors," Jones stated, emphasizing that this support is critical for ensuring the competitiveness of UK steelmakers in the global market.
The first round of payments under the NCC scheme will be issued in May 2025, delivering over £15 million in immediate relief to steel companies. The total projected value of energy price discounts is between £320 million and £410 million in 2025, and more than £5 billion over the next decade.
The announcement was made as part of ongoing work to reshape the UK’s steel strategy. On March 30, the government completed consultations on its steel development “Green Book”, receiving nearly 100 responses from business leaders and industry experts.
The Steel Industry Council meeting gathered key industry stakeholders, including executives from Tata Steel, Liberty Steel, British Steel, trade union leaders, and the UK Steel Association.
This follows the government’s February 2025 commitment to invest £2.5 billion ($3.15 billion) in the steel industry, which includes funding from the UK’s new Sovereign Wealth Fund. The package is intended to modernize facilities, protect jobs, and ensure long-term industrial resilience.
With energy prices a long-standing challenge for UK steel producers, the new measures signal a substantial step toward leveling the playing field with international competitors and securing the future of British steelmaking.
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