With the new regulation, the parallel application of industrial electricity pricing and electricity price compensation will be allowed in 2026, enabling a 50% subsidy on industrial electricity prices.
Kerstin Maria Rippel, Director General of the German Steel Industry Association (Wirtschaftsvereinigung Stahl), stated in her assessment that they welcome the German Economy Minister’s plan to implement the combined use of industrial electricity pricing and compensation mechanisms in 2026. She noted that, until now, the inability to apply both instruments simultaneously had made the industrial electricity pricing scheme ineffective for the steel sector.
Rippel emphasized that this measure will provide significant relief, particularly for low-CO₂ and electricity-intensive steel production facilities, adding that high electricity costs in Germany place considerable pressure on the industry’s international competitiveness. Therefore, she stressed that all available policy flexibilities should be used to reduce costs in energy-intensive sectors.
She also underlined that the reduction in electricity prices should not remain limited to 2026, stressing that a stable and predictable pricing structure is critical for long-term planning in the industry. Highlighting that electrification will play a key role in the steel sector’s transition to climate neutrality—and will significantly increase electricity demand—she stated that a competitive and reliable electricity price of around €50 per megawatt-hour, including all taxes and surcharges, is necessary.
Rippel added that such a price level is essential to maintain competitiveness, secure investments, and achieve climate neutrality targets.
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