The Aluminium Federation (ALFED) has formally written to the Minister for Energy Security and Net Zero to urge immediate action on UK energy pricing – a critical barrier to competitiveness for aluminium producers and the wider metals sector.
This follows extensive feedback from industry at ALFED’s recent Sustainability Strategy Day, where members from across the value chain made clear that unsustainably high energy costs are limiting growth, investment, and operational viability across the UK. Despite aluminium being recognised as a critical material by NATO – ranked first on its strategic list due to its importance to defence, security, and infrastructure, the UK remains at a disadvantage compared to other industrial economies.
ALFED’s Position to Government
In our submission to DESNZ, ALFED and the UK Aluminium Alliance made the case for meaningful, coordinated energy reform, emphasising that:
- UK aluminium processors face energy costs up to 50% higher than competitors in Europe
- Secure, affordable energy is essential for re-melt investment, scrap circularity, OEM engagement, and low-carbon innovation
- Aluminium’s strategic importance to national capability must be factored into Industrial Strategy planning
ALFED supports emerging proposals from Make UK and the UK steel sector on industrial energy pricing, but has been clear: sectoral silos will not solve a national challenge. We are calling for a unified industrial platform to ensure foundation industries have the certainty needed to grow and invest in the UK.
Our Asks to Government:
- Alignment of UK network and wholesale electricity pricing with European industrial norms
- Exploration of policy instruments such as the French ARENH model or Iberian-style gas caps
- A cross-departmental roadmap to deliver fair, stable, long-term industrial energy pricing
We have also extended an invitation to Ministers to join us at the House of Lords Lunch on 26th June, where industry leaders will meet with policymakers to discuss these challenges and solutions directly.
Why This Matters
Without urgent reform, UK aluminium, and the broader metals sector, will continue to face systemic disadvantage, just as global competitors are scaling up with state-backed incentives and lower energy exposure.
“Aluminium is not just another industrial material. It is a sovereign capability. From defence to infrastructure, the UK needs a secure and competitive aluminium sector to deliver on its national priorities. Energy reform is not optional – it’s foundational.”
– Nadine Bloxsome, Chief Executive Officer, Aluminium Federation (ALFED)
We will keep members updated on any responses or further engagement with Government and encourage businesses to continue sharing real-world impact examples with the ALFED team.
For further information or to contribute to our energy working group, please contact us at alfed@alfed.org.uk
