German Steel Federation supports the EU’s decision on electricity price compensation

The European Commission’s decision to amend state aid rules for CO₂-related electricity costs by securing electricity price compensation and expanding its scope has been welcomed by the German steel industry. Following the unified and determined stance of the German Federal Government, the move is regarded by the sector as a critical step in safeguarding international competitiveness.

German Steel Federation Director General Kerstin Maria Rippel emphasized that the regulation is indispensable for offsetting competitive disadvantages arising from additional CO₂ costs passed on through electricity prices. She noted that the decision also represents a “key building block” on the path toward internationally competitive electricity prices for industry.

Rippel pointed out that current electricity price levels pose a serious existential threat, particularly for medium-sized electric steel producers that already operate with relatively low CO₂ emissions. She warned that this situation undermines the steel industry’s transition toward climate neutrality, describing the European Commission’s move to stabilize and strengthen electricity price compensation as “more than just good news — a very welcome development.”

Expressing satisfaction with the German government’s fulfillment of its commitments and its clear, unified position at EU level, Rippel stressed that the forthcoming implementation phase—both nationally and across Europe—will be of critical importance. According to her, the progress achieved must be secured beyond doubt through concrete implementation and regulatory measures over the coming year.

The federation underlined that the overarching objective remains the establishment of a permanent and internationally competitive electricity price for industry. In this context, electricity price compensation—alongside continued reductions in grid fees and strengthened industrial electricity price mechanisms—will remain an essential pillar for the competitiveness and green transition of the European steel industry.