In a letter to Chancellor Olaf Scholz and the entire federal government as well as the parliamentary group leaders of the governing parties, the members of the Alliance for Bridge Electricity Prices are calling for the decision on a temporary bridge electricity price to be made at the upcoming coalition committee on October 20, 2023.
In its letter, the Allianz refers to the “increasingly dramatic economic situation of the energy-intensive industries in Germany”. The debate over a temporary bridge electricity price that has been fruitless for months has long had serious consequences for energy-intensive companies. “The massive reduction in local production that is already being observed is acutely endangering jobs and locations.”
The federal government must now initiate the bridge electricity price. This must apply from 2024 and include a fixed group of recipients, which also includes medium-sized companies. There is also a need to reduce the electricity tax for all consumers and to maintain peak compensation.
Without this signal, there is a risk of a unique and irreversible loss of industrial performance. This would also mean a missed opportunity to develop technologies to achieve climate goals where they would be particularly effective: in the energy-intensive basic industries in Germany.
The letter is signed by:
Gerd Röders, President, Metal Trade Association e.V.
Yasmin Fahimi, Chairwoman of the German Trade Union Confederation
Dr. Dominik von Acht, 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 Chairman, IG Metall
Bernhard Osburg, President, Steel Association
Winfried Schaur, President, Die Papierindustrie e.V.
Markus Steilemann, President, Association of the Chemical Industry e.V. – VCI
Michael Vassiliadis, Chairman, IG Mining, Chemistry, Energy
Quotes:
Jörg Hofmann – First Chairman IG Metall: The decision to provide temporary relief for energy-intensive industries is overdue. They in particular must make their contribution to the transformation into a climate-neutral economy. They in particular have to invest quickly and massively. 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 Association of the Chemical Industry: Our energy-intensive companies will no longer be able to continue for a long time with high energy costs that threaten their existence in Germany. We now finally need effective first aid in order to survive in global competition and to be able to continue investing in the climate-neutral transformation of our industry. The industrial electricity price is neither a watering can nor a flash in the pan – it is an investment in the future of Germany as an industrial location and secures prosperity and jobs.
Gerd Röders, President, Metal Trade Association: The non-ferrous metal industry is in an extremely difficult situation due to high electricity prices: Some companies have already had to significantly reduce their production or stop it completely. Politics must move quickly from discussion to action. We need a bridge electricity price to keep value creation and jobs in the country in the long term and to prevent even greater dependence on raw materials from countries like China.
Michael Vassiliadis, Chairman, IG Mining, Chemistry, Energy: The energy price crisis is not over, it requires quick action. With the introduction of the bridge electricity price, the framework conditions for industrial production and for future investments in transformation would suddenly and sustainably improve, and Germany would again be at the forefront internationally. A temporary electricity price cap for energy-intensive industry is nothing other 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 wants to produce climate-neutrally by 2045. However, to achieve this goal we will need at least four times as much electricity as we do today. Electricity is the basis for the electrification of sub-processes in glass production as well as for the production of hydrogen through electrolysis. Until enough green electricity is available at competitive conditions, we need a bridge electricity price in order to continue to be able to produce competitively in Germany – the largest glass industry in Europe.
Winfried Schaur, President of the Paper Industry: The decision for a bridge electricity price must be made now. If companies can no longer operate economically in Germany, more production will take place where it is cheaper. At least future investment decisions would be made against Germany as a location – with all the consequences for employment and value creation. The federal government must be clear about this.
Yasmin Fahimi, Chairwoman of the German Federation of Trade Unions: The coalition must now prove that it is serious about transformation in Germany. Given the high level of electricity prices and the difficult situation of energy-intensive companies, we can no longer afford to stall. We finally need electricity price protection for all consumers and especially in the form of a bridge electricity price for energy-intensive industries. There are good concepts on the table that will secure employment and promote transformation. We are now awaiting implementation.
Dr. Matthias Frederichs, General Manager of the Federal Association of Building Materials – Stones & Earths: After months of debates about the high energy costs, the coalition committee now has to make a decision. It is important to prevent the crisis situation in the energy-intensive basic industries from worsening further. The necessary measures are on the table: maintaining the peak electricity tax equalization, stabilizing network fees and a temporary bridge electricity price.
Bernhard Osburg, President of the Steel Association: The high electricity costs are putting more and more steel industry companies in a difficult situation with production interruptions and short-time work. And this at a time when companies are decarbonizing with all their might in order to save a third of industrial emissions in Germany. That’s why we now urgently need a bridge electricity price that will noticeably relieve the burden on companies until sufficient renewable energy is available at an affordable price. If politicians do not act immediately, it may soon be too late for some companies.
Press contacts:
Metal Trade Association: Teresa Schad (030 726207 111)
German Trade Union Confederation: Nora Neye (030 24060-212)
Federal Association of Building Materials – Stones and Earths: Luke Voutta (030 72619 9923)
Federal Association of the Glass Industry: Dorothee Richardt (0211 902278 25)
IG Metall: Artur Siemens (069 6693 2872)
Steel Association: Klaus Schmidtke (030 23 25 546 15)
The paper industry e.V.: Andreas Geiger (030 92100609 30)
Association of the Chemical Industry e.V.: Jürgen Udwari (069 2556 1716)
IG Mining, Chemicals, Energy: Lars Ruzic (0511 7631 1135)