<p>Different steel-making processes use different fuels and have different levels of cost effective energy efficiency opportunities, so analysing energy costs for the sector is complex.</p><p>In March 2013 DECC published an assessment of the impact of climate change and energy policies on gas and electricity prices and bills, including those faced by large energy intensive users.<Sup>1</Sup> The report didnot look specifically at the steel industry but estimated that in 2013,the impact of energy and climate change policies on the average priceof gas and electricity for energy </p><p>intensive industries is 2% for gas and 6% to 19% for electricity. We do not produce international comparisons of energy costs for the steel industry, but we know that industrial users of energy in the UK have faced the lowest gas prices in the EU 15 since 2009 and electricity prices that are around the EU 15 median. Moreover, the Government recognises the particular competitiveness issues faced by some industries in terms of their energy costs and has acted to mitigate the impact of policies on them. Measures include:</p><p>A £250 million package to help offset costs of the EU ETS and the Carbon Price Floor for energy intensives. BIS has received 64 applications for compensation for the indirect costs of EU ETS and paid a total of £13 million in compensation.</p><p>Seeking to exempt energy intensives from the costs of Feed-in-Tariffs Contracts for Difference.</p><p>Increased CCL discount on electricity for CCA participants to 90% from April 2013 and an exemption for mineralogical and metallurgical processes from April 2014.<Sup>1</Sup>Note:</p><p>https://www.gov.uk/government/publications/estimated-impacts-of-energy-and-climate-change-policies-on-energy-prices-and-bills</p><p>The figures set out above from the March report do not reflect these measures as details were not finalised at the time. However, they are expected to have a significant impact on reducing the costs of policies for eligible businesses.</p>