Germany moves to save industries from high electricity bills

Admin I Friday, Sept 20, 2024

LOWER SAXONY – German Economy Minister Robert Habeck wants to help the country’s industry cope with electricity expenses by relieving it from high grid charges, but acknowledged it is unclear how this could happen.

Habeck, during a visit to the steel manufacturer Georgsmarienhütte in Lower Saxony on Thursday, said he is fighting for industry to receive the relief it needs for investments. He also brought up the possibility of state subsidies amounting to billions.

The economy minister called subsidies for grid costs a sensible measure, but questioned where the money would come from. At present, there is no “financial pool” for it, he said.

German industry complains about the country’s high energy costs, saying it puts it at a competitive disadvantage to European and global competitors.

“We desperately need support with grid charges, otherwise we will continue to lose competitiveness in Germany,” said Alexander Becker, chief executive of the steel manufacturer Georgsmarienhütte Holding that Habeck visited. The group operates three electric steel plants, including in the town of Georgsmarienhütte, which shares the name of the company.

Habeck noted that this year, a federal subsidy to partially finance transmission grid costs of up to €5.5 billion ($6.2 billion) had been planned.

The money was supposed to come from the Economic Stabilization Fund – however, as a result of a budget ruling by the Federal Constitutional Court, the federal government had to dissolve this special fund.

He again called for spreading the costs of expanding the electricity grids over time, saying if the costs were to “hit” companies and consumers without any restraint, it would be financially difficult.
Recently, the expansion of the electricity grid has picked up speed – but costs, such as grid charges, are also rising.

Additionally, there are billions of costs due to measures aimed at preventing overloads and bottlenecks in the transmission grid.