Industrial electricity price: Financial expert calls for government support for energy-intensive industries

The Saxon Economics Minister Martin Dulig (SPD) is again calling for the introduction of an industrial electricity price. He argues that this price is necessary in order to remain competitive in international location competition. Dulig didn't give a specific price, but in May he estimated it at 4 cents per kilowatt hour. The Federal Minister of Economics Robert Habeck (Greens) suggests that industry should benefit in the long term from state-subsidized, cheap electricity from renewable energies. However, there should be a transition phase until 2030 in which a bridge electricity price of 6 cents per kilowatt hour should apply to a clearly defined group of recipients. For Dulig, it is important that energy-intensive industries in particular receive support quickly. The CDU parliamentary group in the Saxon state parliament, however, does not think much of an industrial electricity price and emphasizes that all companies should be supplied with electricity and energy in order to be able to operate economically. CDU energy expert Georg von Ludwig von Breitenbuch also advocates reducing the electricity tax and reducing the sales tax on electricity in order to relieve the burden on citizens and medium-sized businesses.

Analysis and Impact:

Impact on the market and the financial industry

The introduction of an industrial electricity price can have various effects on the market and the financial sector. On the one hand, this could lead to a strengthening of energy-intensive industries as they would benefit from cheaper electricity. This would allow these companies to improve their competitiveness and invest more in their production or research. This would in turn lead to an increase in overall production and economic growth.

On the other hand, there is a risk that the introduction of an industrial electricity price will lead to higher electricity prices for private and small companies, as they would have to bear the costs of the subsidized industrial prices. This could increase costs for individuals and impact consumer demand for electricity. Furthermore, this could lead to more inequality as larger companies would benefit from subsidized prices while smaller companies and individuals could not.

Reducing the electricity tax and reducing the sales tax on electricity, as suggested by CDU energy expert Georg von Ludwig von Breitenbuch, could also have an impact. A reduction in electricity tax would reduce the burden on companies and households and could lead to relief for consumers. Reducing sales tax on electricity would also reduce costs for individuals and have a positive impact on demand for electricity.

Overall, it is important that when introducing an industrial electricity price, the effects on energy-intensive industries as well as on consumers and small businesses are taken into account. A balanced solution that takes into account the needs and interests of all stakeholders involved is crucial to get the best possible benefit from this measure.

Source:
According to a report by www.volksstimme.de