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ECO-LOONS KILL BRITISH STEEL

By Pete Moore On May 21st, 2019

British Steel is on its uppers, with 5000 jobs about to go. Thanks to the last Labour government’s Climate Change Act, which many noted at the time would be the most expensive piece of legislation ever, energy costs are killing many firms. It’s this bad, thanks to eco-loons, bureaucrats, politicians and lobbyists who fill their pockets while the working man suffers. –

How do the UK’s electricity costs compare internationally?

Europe as a whole is suffering from uncompetitive energy prices. International Energy Agency figures show that average European industrial consumers pay twice as much for their power as their counterparts in the United States.

The situation for the UK is even more concerning. Out of all EU member states, the UK’s energy intensive industries face the highest electricity prices.

Why are UK electricity costs so uncompetitive?

A series of energy and climate measures have added to the cost of electricity for industrial users. This includes costs of schemes such as the EU-wide ETS but also the costs of the Government’s unilateral CPF, which currently sets a price of carbon that is four times the level of the EU price. The costs of climate measures are expected to grow for industry, and by 2030 the impact of these policies will collectively add 66% to the costs of electricity for industrial users, according to the Department for Energy and Climate Change.

UK steelmakers are typically paying around £80-90/MWh for their electricity – of this £14/MWh is attributable to the cost of carbon (EU ETS and the CPF) and £20/MWh to the cost of renewable subsidies.

9 Responses to “ECO-LOONS KILL BRITISH STEEL”

  1. Industrial energy prices are higher in Germany than they are in the UK. For example it is over £100/MWh in Germany. And nearly £200/MWh in Italy. So if energy prices (and the green taxes on them) are the reason for the decline in British Steel – why are German steel companies continuing to thrive?

    Additionally the cost of renewable subsidies is substantially lower as energy intensive companies are able to claim back up to 85% of the Renewable Obligations.

  2. Seamus – attach a reasonably reliable link in support of your claims. At the very least, and given that Pete has done exactly that, it’s what you need to do.

    Here’s an example of authorative lying being debunked. Trump says that the US needs Indian IT “geniuses” but the reality is…….

    https://www.aspiringminds.com/automata-national-programming-report

    As ugly as it may sound, but the statistics are true as revealed by Aspiring Minds’ latest report on programming skills of Indian engineers.
    The report is based on Automata – a Machine Learning based assessment of software development skills, administered on over 36,000 engineering students from IT related branches from 500+ colleges in the country.

    Executive Summary:

    Only 1.4% can write functionally correct & efficient code
    More than 60% candidates cannot even write code that compiles
    Only 4.77% candidates can write the correct logic for a program, a minimum requirement for any programming job
    Programming skills is five times poorer for third tier colleges as compared to tier 1 colleges

    Unlike Africans, there are Indian geniuses but very few. India has a developped economy for 300 million people and not for 1.1 billion. Former Indian PM Manmohan Singh said that India is a rich country inhabited by poor people but I saw an interview several years back when he said that India has too many people i.e. lower castes with low IQs. Their people of real intelligence, the Brahmins, stay in India: the rubbish is exported to Trumpland.

  3. Well done Seamus. The truth shall set you free as someone once said.

    “Eco loons” is just another lie to try to dismiss the ever-growing evidence of climate crisis, as the ice-melt accelerates:

    “Glaciers and ice sheets in Antarctica have thinned and weakened dramatically over the past quarter-century, leaving 24% of the ice in the western part of the continent seriously weakened and in danger of collapse. In some places on Antarctica, glaciers have thinned by approximately 400 feet (122 meters). This staggering loss has little to do with weather fluctuations; rather, it unfolded over decades as Earth’s climate warmed, scientists reported in a new study.

    And that ice loss is accelerating. The researchers found that West Antarctica’s two biggest glaciers — Thwaites and Pine Island — are melting away five times faster now than they were at the beginning of the survey, in 1992.”

    https://www.livescience.com/65524-antarctica-ice-unstable.html

  4. More from the “Eco-Loons”:

    “Scientists believe that global sea levels could rise far more than predicted, due to accelerating melting in Greenland and Antarctica. The long-held view has been that the world’s seas would rise by a maximum of just under a metre by 2100. This new study, based on expert opinions, projects that the real level may be around double that figure. This could lead to the displacement of hundreds of millions of people, the authors say.”

    https://www.bbc.co.uk/news/science-environment-48337629

  5. I got a bridge you two can by it goes right to unicorn land where man can control the weather.

    In the meantime there is real science hopefully coming back on track.

    https://www.thesun.co.uk/tech/9119244/secret-nasa-plan-moon-outpost-rocket-launches/

  6. “Seamus – attach a reasonably reliable link in support of your claims. At the very least, and given that Pete has done exactly that, it’s what you need to do.”

    I don’t have one. I have the datasets to hand but I’d need to look at where I got them. I got them a few years ago when I was writing a position paper on electricity prices. I’ll have a look and see if I can locate the originals.

    The issue with the UK’s electricity prices is also not what Pete suggests it is.

    From other sources (DECC electricity price source):

    In 2015, the UK’s large users energy price was 9.55p per KWH, Germany’s was 7.41p per KWH.

    Here in lies the difficulty with Pete’s argument. Before tax, renewable obligations etc… were included (so just looking at the wholesale price of energy) the UK’s was 7.68p per KWH, while Germany’s was 4.16p per KWH. Even if you got rid of all taxes on energy (not just the eco taxes), all renewable obligations on energy etc… the UK’s energy costs would be higher than Germany’s (even with the taxes and obligations). Germany, in 2015, taxed extra large users 3.25p per KWH, while the UK taxed extra large users 1.87p per KWH.

    The problem (with energy) is the wholesale cost of energy, not taxes. And the problem with steel is not energy (which is a major cost of steel but still only around 5% of the cost). The problem with steel is the collapse in the price of steel in the last decade. British Steel customers (of whom half are in the remainder of the EU) have also declined (largely as European supply chains start factoring in the problems posed by a no deal Brexit).

  7. And we are told we cannot help them as that would be against the law – EU Law that is !

    Had we left the EU when we should have, all EU treaties and therefore laws, would be null and void.

    Well done Remainers.

  8. “And we are told we cannot help them as that would be against the law – EU Law that is !

    Had we left the EU when we should have, all EU treaties and therefore laws, would be null and void.

    Well done Remainers.”

    They are uncompetitive. Why should the taxpayer keep them open?

  9. Mark

    So, wait. British Steel is going belly up primarily due to market uncertainty over Brexit.

    But it is “Remainers” fault because if Brexit had actually happened the UK Govt would have been free to artificially prop up the failed business (caused primarily by Brexit), using UK taxpayers money, as EU state aid rules would no longer apply.

    Brexiteer logic at it’s best.