The authors of the report estimated that electricity prices have risen from an average of £20 per MWh that was between 2015 and 2020 to £34 per MWh this year.
That translates to an extra £90 million expenditure this year for UK steelmakers and a total cost of £345 million over six years, the equivalent of almost two years capital investment in the sector, the trade association said.
Gareth Stace, Director General of UK Steel, said: “The UK steel sector is a big user of power, consuming as much electricity as 800,000 homes annually.
“We are also highly trade-intensive, importing 70% of our steel needs and exporting 45% of everything we make.
The UK’s disproportionately high electricity prices have a hugely negative impact on the sector’s ability to compete, trade, attract inward investment and ultimately be sustainable in the long term.”