The German steel industry has announced that it welcomes plans by the German Federal Ministry of Economics to allow the parallel use of the industrial electricity pricing mechanism and electricity price compensation in 2026, following approval under the EU's Temporary State Aid Program for the Middle East Crisis.
Under the new agreement, industrial companies will be able to apply both support measures simultaneously for up to 50 percent of their electricity consumption in 2026 year, providing greater relief from high energy costs.
WV Stahl welcomes the proposal
Kerstin Maria Rippel, director general of the German Steel Federation (WV Stahl), said the move would finally make the industrial electricity pricing scheme effective for the steel industry, as the current structure does not allow for pooling two tools.
Rippel said the measure would be particularly beneficial for energy-intensive electric steel mills that already produce steel with relatively low carbon dioxide emissions. She stressed that the German steel industry continues to face severe competitive pressure due to electricity prices, which are significantly higher than in many international markets.
The industry requires long-term support
Rippel stressed that all available tools should be used to reduce energy costs for energy-intensive industries. However, she argued that the support measures should be permanent and not limited to one year, since steel producers need certainty in long-term planning of investments and operations.
She also noted that competitive electricity prices are necessary for the industry's transition to climate neutrality. As steel decarbonization relies heavily on electrification, electricity demand is expected to increase significantly in the coming years.
The German Steel Federation is therefore calling for an industrial electricity price of €50 per MWh on an integrated basis, including taxes, fees and network charges, which it says is necessary to maintain competitiveness, secure investment and support the industry's transition to climate neutrality production.
