The Volkswagen CEO is pleased with a new plan by the German government to significantly reduce the price of electricity for industrial companies that consume a lot of electricity due to their specific activities. According to Oliver Blume, the Berlin proposals point “in the right direction”.
“It is a question of strengthening the competitiveness of our country and also the attractiveness of Germany as an industrial location,” the Volkswagen boss also stressed.
Germany is considering reducing the price of electricity by 6 cents per kilowatt hour or less for some energy-intensive sectors to reduce costs. Previously, sizeable German industry, also important to the Netherlands, had been hit hard by rapidly rising energy prices.
25-30 billion euros
The support measure would cost between 25 and 30 billion euros and will last until 2030, according to a working document released by the Ministry of Economy. The ministry stressed that this intervention is necessary to maintain the competitiveness of some sectors, as energy prices are still about double what they were before the crisis.
The move will likely result in a huge reduction in energy bills for German companies. Small and medium-sized businesses in Germany still pay around 27 cents per kilowatt-hour, according to recent data from energy lobby group BDEW. Big companies usually don’t disclose the price of electricity they pay.
Enthusiastic
Wolfgang Grosse Entrup, head of the German Chemical Industry Association, is also enthusiastic about the plan. “The whole of Germany and Europe will benefit,” he said. According to him, the measure is not only important for saving German industry, but also helps German companies in their efforts to become climate-neutral.
Source: BNR
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