DIW: No industrial electricity price in widespread use – experts warn of the wrong approach

DIW: No industrial electricity price in widespread use – experts warn of the wrong approach

According to a report by amp2.handelsblatt.com

The federal government and various experts are debating whether an industrial electricity price makes sense. According to a study by the DIW, a broad-based industrial electricity price is not considered effective or sensible. It is currently being discussed whether such a price for energy-intensive industries such as industrial gases, aluminum, cement and basic chemicals is the right solution to reduce the high level of electricity prices and improve competitiveness.

A DIW study has calculated four case variants which show that in many cases an industrial electricity price would not cause a significant cost shock. The assumptions were based on low cost increases being passed on to customers, although this is being questioned in some industries. According to Economics Minister Robert Habeck, an industrial electricity price of six cents by 2030 would be a possible solution. The DIW supports plans to reduce the target group of an industrial electricity price.

A possible alternative to the industrial electricity price would be to abolish the electricity tax, as it would benefit all companies and consumers. Although this relief would be less targeted than an industrial electricity price, it would be more easily compatible with EU state aid law. A combination of industrial electricity prices and electricity tax reductions is being called for by some representatives of the electrical industry.

According to the Association of the Electrical and Digital Industry, lowering the electricity tax to the minimum permitted under European law could correct an error that, with the increasing importance of electricity-driven applications, will be even more serious in the future than it is today.

Overall, the debate about the industrial electricity price and alternative measures shows that different scenarios and models need to be discussed in order to find the right solution for better competitiveness and cost reduction. It is important to consider the specific needs and challenges of different industries to develop appropriate solutions.