UNITED KINGDOM Steel Warns of Imminent Crisis Due to ‘Extraordinary’ Electricity Prices
Supply chains on brink of chaos, business association warns
UK Metal warned on Monday that spiking electricity prices could cause skyrocketing emissions and result in chaos in supply chains.
Based on the industry association, the continuous crisis may force vegetation into expensive shutdowns, that could damage equipment, increase costs and ultimately lead to “ poorer environmental performance with higher emissions. ”
“ These astonishing electricity prices are resulting in smaller or wiped-out income and thus to less reinvestment, ” UK Steel stated in a briefing document. “ With winter approaching, need for gas and electricity will rise, and prices could get higher, which will make this impossible to profitably create steel. ”
According to the association, some vegetation may shutter their production “ for increasingly prolonged periods with the consequences not only for individual companies but additionally UK steel supply to the UK economy and UK jobs. ”
It will also result in “ lesser environmental performance with higher emissions, ” as some plants may switch from gasoline to less expensive energy resources such as fuel oil. Unless the British government helps, “ the consequences will be dire for our industry, ” UNITED KINGDOM Steel said.
After meeting with Business Secretary Kwasi Kwarteng, UK Steel boss Gareth Stace stated that the government had supplied “ no immediate options or guarantees”.
“ We can’t wait around until Christmas and past. Or even a few weeks. We need actions now, it needs to be quick, decisive action”, he said.
The caution was issued amid a continuous energy crisis in Britain, which has been suffering from fuel shortages as well as from rising costs for gas and electricity. As a result, multiple energy providers across the country have gone out of business, even though many of the most energy-intensive industries possess requested financial support in the government.
Fuel prices have risen over twofold since January, causing major concerns across Europe: recently, gas futures established an all-time record, reaching around $1, 900 for each 1, 000 cubic metre distances last week. It rapidly rebounded, but remained high, falling back to around $1, two hundred per 1, 000 cubic metres.
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