if you think about it the steel sector at the moment is very buoyant, so why would we want to be stopping producing steeljust because electricity prices are so high? but the key for us here because it would be easy to say, well, it is the market, the market. but we pay more for electricity than, say, steel plants in germany and at the moment instead of r price disparity is a sector being something like £55 million a year that we pay more than our competitors, that is now doubled, so we are now this week paying £10 million more over electricity prices in our direct competitors in germany, which means we are less competitive on its global market. why are we paying more than steel in germany? why are we paying more than steel in german ? , , ., ,, germany? because they have less transmission germany? because they have less transmission charges, germany? because they have less transmission charges, other- germany? because they have lessi transmission charges, other policy costs suc
struggling foods. and at a time when we are struggling because of the haulage shortages in this country to keep the supply chain running, to have a shortage the supply chain running, to have a shortage of the supply chain running, to have a shortage of shelf life on the products going onto shelves is going to cause products going onto shelves is going to cause even more disruption so this is to cause even more disruption so this is a to cause even more disruption so this is a really serious problem for us. this is a really serious problem for us. ., ., this is a really serious problem for us. ., ., , this is a really serious problem for us. online food delivery company ocado has us. online food delivery company ocado has confirmed us. online food delivery company ocado has confirmed it us. online food delivery company ocado has confirmed it has - us. online food delivery company. ocado has confirmed it has limited stock of some frozen foods because the squeeze on co2 me
like in the winter? and if it carried on like this, i am really fearful of notjust the steel sector, but all energy intensive sectors. and then downstream operations. because that is what we do, we are at the start of that supply chain, we sell to manufacturers. the gas price rise is hitting businesses at the moment, but it is likely to feed through to higher bills for consumers. katy austin, bbc news. our political correspondent peter saull is here. some peter saull is here. pretty urgent talks, an indication some pretty urgent talks, an indication ofjust how worried they are? indication of “ust how worried they are? , , , , indication of “ust how worried they are? , m are? yes, the business secretary will hold around are? yes, the business secretary will hold around 20 are? yes, the business secretary will hold around 20 face-to-face | will hold around 20 face to face chats with members of the energy industry. they will go into early next week as well. that does underline h
the week before having to pause production at certain times of the day or night when that price spikes, but the key thing for us, i think, is how long will this go on for? because we normally see in the summer and at night in the summer he lowest prices you will get all year round. well, if they are at this price now, what is it going to be like in the winterif it carried on like in the winterif it carried on like this, then i am really fearful of notjust like this, then i am really fearful of not just the like this, then i am really fearful of notjust the steel sector, but all energy intensive sectors, operations because that is what we do. we are at the start of that supply chain, we sell to manufacturers and manufacturers sell to retailers and so on, so this really is the sign of a very, very unhealthy market and given that ofgem said a few weeks ago the market is healthy, it really isn t healthy, it is a very poorly sector. what are you fearful of? what is the worst case scenario?
hello, gareth stace. how are your members being affected? the? hello, gareth stace. how are your members being affected? they are bein: members being affected? they are being affected members being affected? they are being affected to members being affected? they are being affected to fold, members being affected? they are being affected to fold, really. - members being affected? they are being affected to fold, really. if. being affected to fold, really. if we look at the price increases we have seen, last year we were paying £50 a megawatt this week we are paying £2500 a megawatt and if you think about that from our bills at home, that would have been 5p a kilowatt hour to £2 50 a kilowatt hour, so 50 times increase. as the steel sector, we are hugely electro intensive and so much so that if you think of a steel plant it can use about 50% or half as much as all of the electricity in a big city like sheffield, so it is a huge amount of electricity, so therefore plant manager