A working document from the Ministry of Economy and Climate confirmed that the tariff plan envisages fixing the price of around “80% of the electricity” of the “most energy-consuming and internationally operating” companies. , to “6 cents”. per kilowatt hour.
This plan aims to “preserve the competitiveness” of vital sectors of Europe’s leading economy, such as chemicals, paper, glass and steel, which are threatened by expatriation due to high energy prices in Germany , according to the ministry.
“Electricity prices are falling, but in the coming years they will remain two to three times higher than their pre-war level in Ukraine,” Economy Minister Robert Habek told reporters.
Germany was strongly affected by the rise in energy prices in the wake of the start of the war in Ukraine because part of its economic model relied on cheap Russian gas supplies, which were interrupted by the conflict.
Last year, the government of German Chancellor Olaf Scholz set a cap on energy prices for individuals and businesses, meant to run until mid-2024.
Berlin’s moves to rein in rising gas and electricity prices, which were at the heart of a 200 billion euro ($224.2 billion) plan approved by the government last year, fueled criticism from some of its European partners, who denounced unfair competition.
Habeck defended the new plan, stressing that it will provide a period of stability for industrial sectors most vulnerable to threats, as these sectors are forced to make huge investments to reduce carbon emissions.
His project is criticized within the government itself.
Liberal Finance Minister Christian Lindner this week called the idea “not smart” and expressed concern about “expensive subsidies”.
“The economy should not depend on long-term support,” Chancellor Olaf Scholz said.
The whole plan will cost between “25 and 30 billion euros”, according to the Ministry of the Economy, which proposes to deduct this amount from the 200 billion euros released last year.
The cap on electricity prices for businesses is currently set at 13 cents, which is double the flat rate included in the ministry’s plan.
The average electricity price for non-residential units was 18 cents per kilowatt-hour excluding taxes in the second half of 2022, compared with less than 10 cents before 2021, according to statistics agency Destatis.
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