Germany urgently needs a decision on an effective bridge electricity price. This is the demand of the trade associations and unions representing energy-intensive industries, as well as the DGB. These organizations have joined forces this week to form an alliance in support of a bridge electricity price. The members of the alliance collectively represent more than 1.1 million employees across over 8,000 companies. According to a recent brief study, up to 2.4 million jobs and over 240 billion euros in value added depend on companies in energy-intensive sectors. They generate significant revenue for the federal government, states, and municipalities through approximately 90 billion euros in annual tax payments and social security contributions.
The alliance’s members are calling for a swift resolution to the current debate over a transitional electricity price. They say it is “five minutes to midnight” for energy-intensive industries. The threat of relocations, plant closures, and job losses has long been looming.
Together, they are committed to Germany as an industrial hub and to the transition to climate-neutral production. Electricity is becoming increasingly important in this context. Until sufficient quantities of electricity are available from renewable energy sources, a competitive, time-limited bridge electricity price is urgently needed. After months of back-and-forth, a decision must now be made regarding the future of industry in Germany. Above all, the Chancellor must take a clear stance.
In joint letters to political leaders at the federal and state levels, the alliance announced that it would hold discussions in the coming days and weeks with state premiers, cabinet members, and members of the federal and state legislatures.
STATEMENTS FROM REPRESENTATIVES OF THE ALLIANCE FOR A BRIDGE ELECTRICITY PRICE
Franziska Erdle, Executive Director of WirtschaftsVereinigung Metalle e.V.
The non-ferrous metals industry finds itself in an extremely difficult situation due to high electricity prices. Some companies have already had to drastically scale back or completely halt production. Policymakers must urgently move from discussion to action and introduce an industrial or bridge electricity price. Otherwise, there is a risk of the irreversible loss of industries critical to Germany’s energy transition and, consequently, an increase in dependence on raw material supplies, particularly from China.
PRESS CONTACT: TERESA SCHAD, 030 726207 111
Yasmin Fahimi, Chairwoman of the German Trade Union Federation
The federal government must set the course now so that Germany becomes a successful and climate-neutral industrial nation. High-quality industrial jobs and strong industrial value creation must continue to exist in the future. To achieve this, the industry finally needs reliability and competitiveness in electricity pricing—but not without also committing to maintaining its location and collective bargaining agreements. Despite all the federal government’s efforts, we must not stop halfway now. The federal government must therefore follow through on its announcements and swiftly implement the transitional electricity price. We simply cannot afford to wait and see.
PRESS CONTACT: NORA NEYE, 030 - 24060-212
Dr. Matthias Frederichs, Executive Director, Federal Association of Building Materials – Stones and Earth (bbs)
Without competitive electricity prices for industrial production, we jeopardize not only the country’s prosperity but also our efforts toward transformation. Anyone who wants to implement the energy, transportation, and construction transitions and preserve regional value chains must provide a clearly defined framework for planning and investment security, especially in times of crisis. Such an environment is absolutely dependent on a transitional electricity price and the continuation of peak load balancing.
PRESS CONTACT: LUKE VOUTTA, 030 72619 9923
Dr. Frank Heinricht, President of the Federal Association of the Glass Industry (Bundesverband Glasindustrie e.V.)
The glass industry aims to achieve climate-neutral production by 2045. To this end, work is currently underway on two technologies that require electricity from renewable energy sources: the electrification of glass furnaces and the use of hydrogen. Until sufficient green electricity is available on competitive terms, we need a bridge electricity price, because electricity consumption will initially rise as a result of decarbonization measures, since electricity is the basis both for the electrification of sub-processes in glass production and for the use of hydrogen via electrolysis.
PRESS CONTACT: DOROTHEE RICHARDT, 0211 902278 25
Jörg Hofmann, President of IG Metall
The current high energy costs, and the fact that Germany has some of the highest industrial electricity prices in Europe, call for fair solutions. Otherwise, steel production, the aluminum industry, and other energy-intensive sectors are at risk of disappearing from Germany sooner rather than later. The consequences of this for German industry as a whole would be disastrous. From IG Metall’s perspective, a transitional electricity price must include the following aspects: a restriction to energy-intensive industries facing international competition; a time limit coupled with a concrete plan for transitioning to affordable renewable energy to prevent windfall gains; and—particularly important to us as a union—investments by the subsidized companies in the transition, guarantees of continued operations at their current locations, and a commitment to adhere to collective bargaining agreements.
PRESS CONTACT: ALINA SOPHIA HEISIG, 069-6693 2646
Kerstin Maria Rippel, Chief Executive Officer of the German Steel Association:
The transition to climate neutrality requires massive amounts of green electricity. And it must be affordable. Our electricity costs are two to three times higher than those of our European and international competitors. This hits companies in the steel industry particularly hard, as they are currently making giant strides toward decarbonization. That is why we need a transitional electricity price—not permanently, but for the transition period—until renewable energies ensure competitive prices within an intelligent electricity market design.
PRESS CONTACT: MARVIN BENDER, 030 2325 54650
Winfried Schaur, President of Die Papierindustrie e.V.
It is difficult for the paper industry in Germany to compete in the international market. In addition to other stable framework conditions, a competitive industrial electricity price must finally be introduced as a bridge solution, and the continuation of the peak load compensation program must be guaranteed for 2024. Especially in energy-intensive paper production, an affordable and secure energy supply—as well as the ability to plan for it over the long term—plays a particularly important role in investment decisions.
PRESS CONTACT: ANDREAS GEIGER, 030 92100609 30
Markus Steilemann, President of the German Chemical Industry Association (VCI)
Our industry is at a crossroads. The house is on fire, and we urgently need the bridge electricity price as water to put out the fire. This will ensure that our existing assets are preserved and that we can tackle the ecological transformation with full force. In the future, we want to present a completely renovated house—not lament a ruin.
PRESS CONTACT: JÜRGEN UDWARI, 069 2556 1716
Michael Vassiliadis, Chairman of IG Bergbau, Chemie, Energie
The energy crisis is putting pressure on Germany as a business location to take action: We cannot simply abandon a highly developed industry with hundreds of thousands of well-paid jobs—we must develop it further in an intelligent way. We cannot afford an exodus of energy-intensive businesses—neither socially, economically, nor in terms of climate policy. They are simply too crucial to the transformation of industry as a whole. Now is the time to build on our strengths and bring the framework conditions for energy-intensive industry back on par with those of other industrialized nations. First and foremost, this requires a fair electricity price. The entire industrial value chain benefits from strong energy-intensive companies—and, ultimately, the entire country.
PRESS CONTACT: LARS RUZIC, 0511 7631 1135
