ALFED calls on government for urgent industrial energy reforms

The Aluminium Federation (ALFED) has formally written to the Minister for Energy Security and Net Zero to demand urgent action on UK energy pricing - citing it as a critical risk to the competitiveness, sustainability, and resilience of the aluminium sector and wider UK metals manufacturing base.

In the letter addressed to Baroness Curran, Minister of State at the Department for Energy Security and Net Zero (DESNZ), ALFED and the UK Aluminium Alliance outline the escalating pressure being felt across the supply chain, driven by UK industrial electricity costs that remain around 50% higher than those in key European manufacturing economies.

ALFED’s intervention follows the recent Sustainability Strategy Day, where over 100 member businesses and stakeholders shared growing concerns about the viability of long term investment and re-melt capacity in the UK under current energy cost conditions.

Nadine Bloxsome, CEO of ALFED, stated, “Aluminium is not just another industrial material, it is a sovereign capability. It ranks first on NATO’s strategic materials list and is vital to our defence, aerospace, energy, and infrastructure sectors. If we cannot produce aluminium competitively in the UK, we compromise the country’s ability to deliver on its own industrial and national security objectives.”

In the formal submission to DESNZ, ALFED and the UK Aluminium Alliance have called for:

• Alignment of UK electricity pricing (network and wholesale) with European standards
• Exploration of policy tools such as ARENH-style contracts or Iberian-style gas caps
• A clear cross-departmental roadmap for energy pricing reform to support the UK’s Industrial Strategy

While ALFED supports parallel energy proposals from Make UK and the UK Steel sector, the Federation stresses that sectoral silos will not deliver a strategic solution. A unified voice across all foundation industries is now essential to securing long-term domestic growth, jobs, and industrial decarbonisation.

To further this dialogue, Ministers and policymakers have been invited to attend ALFED’s House of Lords Lunch on Wednesday 26th June, a key platform to bring together industry leaders and parliamentarians to discuss shared challenges and aligned policy recommendations.

Note: This article has been issued by ALFED and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.