Frankfurt – IG Metall advocates for the government to take over the supraregional power grids and drive forward the urgently needed expansion of the grids on its own. Otherwise, electricity costs threaten to rise to astronomical levels—with disastrous consequences for private consumers, industrial jobs, and the success of the energy transition.
“All our sectors are reporting to us that grid fees are increasingly becoming the key price driver in electricity supply. This applies to industry, but of course also to private households. We cannot afford this additional burden. Otherwise, both industrial transformation and the energy transition will be off the table,” warns Jürgen Kerner, Second Chairman of IG Metall and the union executive board member responsible for industrial and energy policy.
The impetus for IG Metall’s initiative is a study published today by the Hans Böckler Foundation, which calculates the cost development of grid expansion based on three scenarios. The result: In the most favorable scenario—in the case of public financing—average grid fees would rise only moderately, by 1.7 cents per kilowatt-hour. By contrast, grid fees would have to be raised by nearly twice as much—3 cents per kilowatt-hour—if private investors were to provide the necessary capital. In the short term, it would be even more expensive for households and commercial consumers if the companies operating the transmission grids had to pay for the expansion out of their current revenues. In that case, average grid fees would rise by 7.5 cents per kilowatt-hour. This would cause the energy transition to fail, according to IG Metall’s conclusion.
Grid fees currently account for about a quarter of electricity costs. They serve to cover the costs of operating, maintaining, and expanding the power grids. As part of the energy transition, thousands of kilometers of new power lines must be built so that wind power—produced primarily in the north—can reach the major consumption centers in the south. According to recent studies, this will cost about 650 billion by 2045. If the state were to take over the grids, financing risk premiums and high return expectations—which are common among private investors—would be eliminated. This would significantly curb the rise in costs,
The nationalization of the power grids has been discussed repeatedly in the past. Most recently, the planned takeover of the grid operator Tennet fell through due to the budget problems of the “traffic light” coalition government. The IG Metall union is now calling on the next federal government to tackle the issue once again. “The market should be allowed to operate where it can flourish. It doesn’t work when it comes to the power grids; here, the government must take ownership and invest boldly. Otherwise, the energy transition will fail,” said Jürgen Kerner.
Further information and press photos of Jürgen Kerner
