Steelmakers called on the EU to implement structural changes to ensure affordable electricity

EUROFER has criticized the failure to assess the role of fossil fuels in setting energy prices

The European Steel Association (EUROFER) welcomed the European Commission’s conclusions of March 19 regarding the importance of affordable energy as a prerequisite for competitiveness, the achievement of decarbonization goals, and Europe’s industrial future. This is stated in the organization’s press release.

However, the steel sector warned that if response measures are not developed and implemented effectively, they may prove insufficient both for immediate relief and for the structural changes needed to protect the industrial base.

As EUROFER Director General Axel Eggert noted, “EU member states have set the right course, but the quality and speed of implementation are now the real litmus test.”

“Even as Europe invests in low-cost renewables, the crisis in the Middle East shows how exposed industry remains to fossil-driven price spikes. Without competitive electricity costs of around €50/MWh,  Europe’s energy-intensive industries cannot compete globally and deliver the energy transition,” he explained.

EUROFER supported the European Council’s call to accelerate the deployment of renewable and low-carbon energy sources, as well as energy storage systems. However, the benefits of this transition must be passed on to consumers as quickly as possible. The association also welcomes the call for targeted short-term measures addressing all components of the electricity bill, as well as a coordinated EU response to rising energy prices.

Steelmakers also supported the expanded use of long-term instruments, such as power purchase agreements (PPAs) and contracts for difference (CFDs). EUROFER, in particular, emphasizes that energy-intensive industries must have access to a portion of state-supported electricity generation at production cost plus a fair margin, which current EU rules do not yet allow.

The current state aid system should be made more flexible by removing restrictions on the combined use of compensation for indirect emissions under the CISAF (Clean Industrial Deal State Aid Framework) and the ETS, as well as by extending the duration of support.

At the same time, EUROFER warns that the lack of a comprehensive assessment of the electricity market structure—particularly the role of fossil fuels in setting energy prices — raises serious concerns about the EU’s ability to protect industry from constant volatility and ensure a significant differentiation in electricity prices. The EU must address the structural flaw whereby, even when industry invests in decarbonization and transitions to clean electricity, prices still reflect fossil fuel-based production.

It is worth noting that European steelmakers are insisting on continued support for the sector in the Industrial Accelerator Act.