The European Union has allowed Germany to provide additional support to its industrial companies regarding electricity prices as part of Temporary government assistance related to the crisis in the Middle East.
According to the new regulation, parallel application of industrial electricity pricing and electricity price compensation will be allowed in 2026, which will allow subsidizing 50% of the price of industrial electricity. Kerstin Maria Rippel, CEO of the German Steel Industry Association (Wirtschaftsvereinigung Stahl), stated in her assessment that they welcome the German Economy Minister's plan to introduce the sharing of industrial electricity pricing and compensation mechanisms in 2026. She noted that until now, the impossibility of simultaneous application of both instruments made the pricing scheme for industrial electricity ineffective for the steel sector. Rippel stressed that this measure would provide significant relief, especially for steel production enterprises with low co₂ content and energy intensity, adding that high electricity costs in Germany put significant pressure on the international competitiveness of the industry. She therefore stressed that all available policy flexibilities should be used to reduce costs in energy-intensive sectors. She also stressed that the reduction in electricity prices should not be limited to 2026, stressing that a stable and predictable pricing structure is crucial for long-term planning in the industry. Stressing that electrification will play a key role in the transition of the metallurgical sector to climate neutrality and significantly increase the demand for electricity, she stated that a competitive and reliable electricity price of about 50 euros per megawatt hour is needed, including all taxes and surcharges. Rippel added that such a price level is necessary to maintain competitiveness, ensure investment, and achieve climate neutrality goals.Author: SteelRadarm Editorial Tea
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