In the governing coalition, the SPD is increasing pressure to introduce lower industrial electricity prices in Germany. The Federal Chancellor and Social Democrat Olaf Scholz recently rejected such a state-financed price reduction, as had Finance Minister Christian Lindner and his FDP before them.
Subsidizing the price of electricity is also controversial in business. Industries with high power consumption consider them necessary in order to avoid relocations abroad and the loss of jobs. Representatives of medium-sized companies fear disadvantages for their companies.
“The industrial electricity price creates a strong distortion of competition to the detriment of medium-sized companies,” said Marie-Christine Ostermann, President of the Association of Family Entrepreneurs, of the “Rheinische Post”. “But from an economic point of view, the expensive subsidies are not a solution, but damage the economy as a whole. Fortunately, Chancellor Scholz recognized that correctly.” In addition, there is no scope in the household for an industrial electricity price, added Ostermann. The climate and transformation fund has already been exhausted.
“For an effective bridge electricity price”
An alliance from the chemical, metal, glass and paper sectors and their unions pushed for a quick decision “for an effective bridge electricity price” on Friday. This is necessary for a limited period of time until sufficient electricity from renewable energies is available.
Chancellor Scholz said a few days ago at the NRW Entrepreneurs’ Day in Düsseldorf: “We cannot and will not afford a debt-financed flash in the pan that would fuel inflation again, or a permanent subsidy of electricity prices with the watering can. That would be economically wrong , fiscally unsound and would certainly create the wrong incentives.”
Lower Saxony’s Prime Minister Stephan Weil (SPD) hopes that Scholz will rethink. “The last word on this matter has not been spoken. This will be a particularly important discussion this fall,” said Weil of the “Welt am Sonntag”. “The companies from the energy-intensive industry all say that if the electricity price stays this high, it can’t work. There is a risk of a loss of substance, and an industry that goes away won’t come back. This country can’t face deindustrialization and neither can Europe perform,” Weil said.
FDP rejects Habeck proposal
The SPD faction deputy in the Bundestag, Dirk Wiese, told the Bayern media group: “From our point of view, the industrial electricity price is of fundamental importance. We need secure and affordable energy for companies that are in difficult competitive situations, especially with nearby non-European countries.”
Economics Minister Robert Habeck (Greens) had proposed capping the price of electricity for energy-intensive companies at six cents per kilowatt hour by 2030. According to Habeck’s plans, the money should come from the Economic Stabilization Fund. The FDP rejects this.
