To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effect of new Ofgem network charging rules on costs for steel producers; and what steps his Department is taking to ensure the new charging rules will not increase costs for steel companies.
Network charging is a matter for Ofgem as the independent regulator, and decisions on its review of charging rules (known as the Targeted Charging Review) are for it to make. However, Government is working to understand the policy implications of Ofgem’s review proposals across a broad range of interests, including steel companies.
Ofgem has not yet concluded its review, and is currently consulting on lead options for reform. Steel companies are currently analysing to what extent these options might impact on them. Ofgem’s consultation closes on 4th February 2019. We are encouraging steel companies and all other interested parties to engage with Ofgem to ensure their perspectives and evidence can be taken into account.