The federal government has yet to reach an agreement regarding the energy price subsidies it had previously implied. An answer from the Federal Ministry for Economic Affairs, reported by the television channel ntv following an inquiry from Green politician Michael Kellner, confirmed that the planned stacking of the industrial power price and electricity price compensation, announced by Federal Economic Minister Katherina Reiche (CDU) for 2026, remains uncertain. The Ministry stated it is currently examining whether it will nationally utilize “additional subsidy law possibilities for compounding the industrial power price and electricity price compensation.”
Kellner sharply criticized Reiche’s approach, telling the channel that “the minister is making major announcements, but her own state secretary is quietly retracting the clear words.” He argues that the government should act rather than spend months in deliberation, insisting that the possibilities for relieving energy-intensive industries should be fully utilized. Reiche had estimated the additional strain on the budget at one billion euros, but the source and implementation of these funds remain ambiguous.
Industry groups are also applying pressure. Holger Lösch, Deputy CEO of the Confederation of German Industry (BDI), informed ntv that the Ministry of Economic Affairs has used the existing industrial power price instrument to the best of its ability within the EU framework. However, Lösch stressed that the current measure still does not enable an internationally competitive electricity price level. With the potential for compounding the electricity price compensation and the industrial power price, the industry believes the goal is now within immediate reach for the first year of funding. Consequently, the BDI is urging the government to take the final step toward achieving the industrial power price goal by utilizing this compounding possibility in 2026. BDI Vice President Lösch advocated for making the necessary funds available in the budget, arguing that the resulting budget increase would serve as an effective investment in German industrial sites and a positive sign in the energy price debate, restoring confidence in the government’s ability to manage energy costs.
Wolfgang Große Entrup, CEO of the Chemical Industry Association (VCI), echoed this urgency. He urged the coalition partners to quickly seize the opportunity that Brussels has opened regarding the compounding of electricity price compensation and the industrial power price, adding that this extra option only benefits for one year, and that half of that time has already passed.
