The UK’s punitive energy taxation system combined with high base UK energy prices have “…undermined the competitiveness of foundations industries” in the country according to Tata Steel Europe ceo Karl Koehler. The executive was commenting in a statement issued by the Indian steelmaker confirming cutbacks to its UK-based speciality steel operations, sent to Kallanish.

The company says that cutbacks at its Tata speciality steel and bar operations are the next stage in its plans to refocus its speciality and bar business on high-value markets such as aerospace. The proposed changes would result in a reduction in employee numbers, mainly at its Rotherham, South Yorkshire-based bar business.

Tata Steel has identified 720 positions which will potentially become redundant. However, the company will work closely with those at risk and their trade union representatives to redeploy employees and minimise the number of compulsory redundancies, it confirms.

The business “… has been underperforming in the face of commodity-grade steel being imported to the UK due to the strong pound and high electricity costs which are more than double those of key European competitors,” the company says.

In an addendum to the statement, the steelmaker gives details of comparative electricity costs for large energy users in Europe and the US. The results should make UK governments, past and present, hang their heads in shame. It is not enough that basic UK electricity prices are clearly the highest in the EU. Extra UK energy taxation means that the price paid by large energy users such as Tata Special Steels (€80.70/MWh) is over twice that paid in Germany (€34.80/MWh), Tata data show.