The decision of the German federal government to reduce government subsidies for electricity grid services (Übertragungsnetzentgelte) provoked a strong reaction from the steel industry. Kerstin Maria Rippel, managing director of the German Steel Manufacturers Association (Wirtschaftsvereinigung Stahl), called on the government to reverse this decision, warning that "the cancellation of benefits that have just been introduced would be a fatal signal." The German Federal government has approved a new decree that will reduce government spending. Between 2027 and 2029, the cost of supporting transmission networks increased by 1 billion euros annually. The bill, which is expected to be debated in the Bundestag (German federal parliament), risks undermining efforts to reduce energy costs for industry. Kerstin Maria Rippel: "It is necessary to ensure the safety of planning" Commenting on the development, Kerstin Maria Rippel, Managing Director of the German Steel Manufacturers Association (Wirtschaftsvereinigung Stahl), recalled that the reduction in electricity tariffs was introduced only at the beginning of this year, stating:"Thanks to the resumption of subsidizing the cost of electricity transmission through the grid, we were able to to return sharply increased electricity tariffs to normal levels only at the beginning of this year. The repeated reduction of this measure so soon would be a fatal signal! The goal of permanently reducing energy costs for industry will once again become a distant prospect, just at a time when the Middle East crisis is putting significant pressure on energy markets and further increasing already unstable electricity prices." Emphasizing the geopolitical risks and global uncertainty, Rippel continued: "In times marked by numerous threats and geopolitical uncertainty, the federal government should ensure the safety of planning for the industry, rather than canceling the benefits that have just been introduced. Our demand is clear: 6.5 billion euro budget support must be provided in full and on an ongoing basis!The Green Transformation of the German steel industry The German Steel Association, representing the largest steel producers in Germany, aims to ensure climate-free steel production by 2045 and reduce steel production in Germany by a third. The total volume of industrial greenhouse gas emissions in the country. Germany, Europe's largest steel producer with a production volume of 34.1 million tons in 2025, continues to emphasize that affordable and predictable energy prices are essential to maintain global competitiveness.
German Steel Association reacts to government action over power outage
