German automotive industry leaders are urging policymakers to ensure the planned industrial electricity price scheme adequately supports small and medium-sized enterprises (SMEs), while also focusing on critical sectors like battery and semiconductor production.
Speaking to the “Rheinische Post”, Hildegard Müller, President of the German Association of the Automotive Industry (VDA), emphasized the importance of a comprehensive approach. She stated that the design of the industrial electricity price must consider the unique needs of SMEs and avoid overlooking their contribution.
Currently, German companies face electricity costs up to three times higher than their counterparts in the United States and China. This disparity, Müller explained, is significantly impacting the competitiveness of German businesses on a global scale and hindering the successful expansion of electric mobility. High charging costs, in particular, are creating barriers to consumer acceptance of electric vehicles.
Beyond the immediate relief measures that are needed, the VDA president underscored the demand for a sustainable, long-term strategy to restore electricity prices in Germany to a competitive level. This includes a significant expansion of CO2-neutral electricity generation within Germany, as well as the establishment of energy partnerships with other nations. Furthermore, she called on the government to reduce ancillary costs associated with electricity.
The call comes after EU Commission revisions to its framework for state aid, prompting Minister for Economic Affairs, Katherine Reiche (CDU), to propose an industrial electricity price for energy-intensive companies as a potential solution.
