Written question asked by Steve Webb (Liberal Democrat) on Tuesday, 15 July 2008, in the House of Commons. It was due for an answer on Monday, 21 July 2008. It was answered by Malcolm Wicks (Labour) on Wednesday, 17 September 2008 on behalf of the Department for Business, Enterprise and Regulatory Reform.

Iron and Steel: Prices

Question: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what assessment he has made of the effect of recent increases in steel prices on the Government's energy policy; and if he will make a statement.

Answer: [holding answer 21 July 2008]: We have not made an assessment of the effect of recent increases in steel prices on the Government's energy policy. It is for energy companies to decide to what extent they take account of raw materials prices when making decisions on future investments. Strong demand for metals and the consequent rise in the price of steel is a global phenomenon and energy companies in other countries have been similarly affected.However we are aware that the rising cost of raw materials including steel is one of the factors leading to a significant rise in the cost of wind turbines. Despite this price rise global demand for wind turbines is growing 30 per cent. year on year. The Government remain committed to achieving our contribution to the EU 2020 target and launched a consultation last month which will culminate in the publication of our renewable energy strategy early next year.

Secondary information