German steel association reacts to government over electricity cuts

Government Plans €1 Billion Annual Cut

The German federal government has approved a new regulation that would reduce state support for transmission grid costs by €1 billion annually between 2027 and 2029. The bill, which is expected to be discussed in the Bundestag (German Federal Parliament), risks undermining efforts to reduce energy costs for industry.

Kerstin Maria Rippel: "Planning Security Must Be Ensured"

Commenting on the development, Kerstin Maria Rippel, Managing Director of the German Steel Association (Wirtschaftsvereinigung Stahl), recalled that the reduction in grid charges had only been introduced at the beginning of this year, stating:

"With the reintroduction of the subsidy for transmission grid costs, we only managed to bring soaring grid charges back to normal levels at the beginning of this year. Cutting this measure again so soon would send a fatal signal! The goal of permanently reducing electricity costs for industry would once again become a distant prospect, precisely at a time when the Middle East crisis is placing significant pressure on energy markets and pushing already volatile electricity prices even higher."

Highlighting geopolitical risks and global uncertainties, Rippel continued:

"At a time marked by multiple threats and geopolitical uncertainties, the federal government should provide planning security for industry rather than roll back relief that has only just been introduced. Our demand is clear: the €6.5 billion in budgetary support must be maintained in full and on a permanent basis!"

Green Transformation of the German Steel Industry

The German Steel Association, which represents Germany’s largest steel producers, aims to achieve climate-neutral steel production by 2045 and reduce one-third of the country’s total industrial greenhouse gas emissions. Germany, Europe’s largest steel producer with an output of 34.1 million tonnes in 2025, continues to emphasize that affordable and predictable energy prices are essential to maintaining the sector’s global competitiveness.