Calls to Reform UK Industrial Energy Pricing

_{The UK’s Aluminium Federation wants urgent action on energy pricing, which it said was risking the competitiveness of the industry.}

The Aluminium Federation (ALFED) has formally written to the UK government to demand urgent action on UK industrial energy pricing.

The UK-headquartered association cited energy pricing as a critical risk to the competitiveness, sustainability and resilience of the aluminium sector and wider UK metals manufacturing base.

In the letter addressed to Baroness Curran, Minister of State at the Department for Energy Security and Net Zero (DESNZ), Alfed and the UK Aluminium Alliance outline the pressure felt across the supply chain.

It said UK industrial electricity costs remain around 50% higher than those in key European manufacturing economies.

Nadine Bloxsome, Alfed CEO, stated aluminium ranks first on NATO’s strategic materials list and is vital to UK defence, aerospace, energy, and infrastructure sectors.

“If we cannot produce aluminium competitively in the UK, we compromise the country’s ability to deliver on its own industrial and national security objectives,” she said.

The submission to DESNZ calls for:

An alignment of UK electricity pricing (network and wholesale) with European standards;

An exploration of policy tools such as ARENH-style contracts or Iberian-style gas caps; and

A clear cross-departmental roadmap for energy pricing reform to support the UK’s Industrial Strategy.

While Alfed supports parallel energy proposals from Make UK and the UK steel sector, the federation stresses sectoral silos will not deliver a strategic solution.

A unified voice across all foundation industries is essential to securing long-term domestic growth, jobs, and industrial decarbonisation, the organisation said.

Source: Aluminium International Today