In this paper, the variation of electric energy consumption in the AC electric arc furnace (EAF) with various production parameters is studied using a developed computer program. The energy equation is modelled using the first law of thermodynamics. The effects of temperature of liquid steel, stack gas, scrap pre-heated and cooling water and duration at which the EAF cover is open on electric energy consumption are investigated. The calculated electric energy values are compared with the actual electric energy used in the EAF and values received from literature. They are in a good agreement. Copyright (C) 2002 John Wiley Sons, Ltd.