In a letter to Chancellor Olaf Scholz, the entire federal government, and the parliamentary group leaders of the governing parties, the members of the Alliance for a Bridge Electricity Price are calling for a decision on a temporary bridge electricity price to be made at the upcoming coalition committee meeting on October 20, 2023.
In its letter, the Alliance refers to the “increasingly dire economic situation facing energy-intensive industries in Germany.” The months-long, fruitless debate over a temporary bridge electricity price has long had serious consequences for energy-intensive companies. “The massive cutbacks in local production already being observed pose an acute threat to jobs and business locations.”
The federal government must now move forward with the bridge electricity price. This must take effect starting in 2024 and include a fixed group of beneficiaries that also encompasses small and medium-sized enterprises. In addition, the electricity tax must be reduced for all consumers, and the peak load compensation must be maintained.
Without this signal, there is a risk of a loss of industrial capacity that is both unique and irreparable. This would also squander opportunities to develop technologies for achieving climate goals precisely where they would be most effective: in Germany’s energy-intensive basic industries.
The letter is signed by:
- Gerd Röders, President, German Metal Industry Association
- Yasmin Fahimi, Chairwoman, German Trade Union Federation
- Dr. Dominik von Achten, President, Federal Association of Building Materials – Stones & Earths e.V.
- Dr. Frank Heinricht, President, Federal Association of the Glass Industry e.V.
- Jörg Hofmann, First Chairperson, IG Metall
- Bernhard Osburg, President, German Steel Association
- Winfried Schaur, President, The Paper Industry Association
- Markus Steilemann, President, German Chemical Industry Association (VCI)
- Michael Vassiliadis, Chairman, IG Bergbau, Chemie, Energie
Quotes:
Jörg Hofmann – President of IG Metall:
The decision to provide temporary relief for energy-intensive industries is long overdue. These industries, in particular, must make their contribution to the transition to a climate-neutral economy. They, in particular, must invest rapidly and on a massive scale to achieve this. And it is precisely these investments that are being prevented by electricity prices that are currently uncompetitive and unpredictable in the medium term.
Markus Steilemann, President of the German Chemical Industry Association:
Our energy-intensive companies cannot continue much longer in Germany with energy costs so high that they threaten their very existence. We finally need effective emergency measures now to remain competitive on the global stage and to continue investing in the climate-neutral transformation of our industry. The industrial electricity price is neither a blanket handout nor a flash in the pan—it is an investment in the future of Germany as an industrial hub and ensures prosperity and jobs.
Gerd Röders, President, German Metal Industry Association:
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 move quickly from discussion to action. We need a transitional electricity price to keep value creation and jobs in the country in the long term and to prevent an even greater dependence on raw materials from countries such as China.
Michael Vassiliadis, Chairman, IG Bergbau, Chemie, Energie:
The energy price crisis is not over; it requires swift action. The introduction of a transitional electricity price would immediately and sustainably improve the framework conditions for industrial production and for future investments in transformation, and Germany would regain its competitive edge on the international stage. A temporary electricity price cap for energy-intensive industries is nothing less than an investment in the country’s future—simply money well spent.
Dr. Frank Heinricht, President, Federal Association of the Glass Industry:
The glass industry aims to achieve climate-neutral production by 2045. To achieve this goal, however, we will need at least four times as much electricity as we do today. This is because electricity is the basis not only for the electrification of sub-processes in glass production but also for the production of hydrogen through electrolysis. Until sufficient green electricity is available on competitive terms, we need a transitional electricity price to continue producing competitively in Germany—the largest hub for the glass industry in Europe.
Winfried Schaur, President of the Paper Industry:
The decision in favor of a bridge electricity price must be made now. If companies can no longer operate profitably in Germany, more production will move to locations where it is cheaper. At the very least, future investment decisions would be made against Germany as a business location—with all the consequences that entails for employment and value creation. The federal government must be clear about this.
Yasmin Fahimi, Chairwoman of the German Trade Union Federation:
The coalition must now prove that it is serious about Germany’s energy transition. Given the high level of electricity prices and the difficult situation facing energy-intensive industries, we can no longer afford to stall. We finally need safeguards for electricity prices for all consumers, and especially in the form of a transitional electricity price for energy-intensive industries. There are sound proposals on the table that would safeguard jobs and promote the transformation. We now expect them to be implemented.
Dr. Matthias Frederichs, Executive Director of the Federal Association of Building Materials – Stones & Earth:
After months of debate over high energy costs, the coalition committee must now make a decision. We must prevent the crisis in energy-intensive basic industries from worsening further. The necessary measures are on the table: maintaining the electricity tax peak compensation, stabilizing grid fees, and implementing a temporary bridge electricity price.
Bernhard Osburg, President of the German Steel Association:
High electricity costs are putting more and more companies in the steel industry in a difficult position, leading to production stoppages and reduced working hours. And this is happening at a time when companies are doing everything in their power to decarbonize their operations in order to cut industrial emissions in Germany by one-third. That is why we urgently need a temporary bridge electricity price now that will provide companies with tangible relief until sufficient renewable energy is available at an affordable price. If policymakers do not act immediately, it may soon be too late for some companies.
Press Contacts:
German Metal Industry Association (Wirtschaftsvereinigung Metalle e.V.): Teresa Schad (030 726207 111)
German Trade Union Federation: Nora Neye (030 24060-212)
Federal Association of Building Materials – Stones and Earths e.V.: Luke Voutta (030 72619 9923)
Federal Association of the Glass Industry: Dorothee Richardt (0211 902278 25)
IG Metall: Artur Siemens (069 6693 2872)
German Steel Association: Klaus Schmidtke (030 23 25 546 15)
German Paper Industry Association: Andreas Geiger (030 92100609 30)
German Chemical Industry Association: Jürgen Udwari (069 2556 1716)
IG Bergbau, Chemie, Energie: Lars Ruzic (0511 7631 1135)
