Following the presentation by the German federal government of the draft budget of the Climate and Transformation Fund (KTF) for 2027, the German Steel Federation (WV Stahl) warned that the proposed funding cuts could undermine the recently introduced measures to reduce energy prices and weaken Germany's industrial competitiveness.
Kerstin Maria Rippel, CEO of the German Steel Federation (WV Stahl), said that while fiscal consolidation is understandable, the reduction in KTF funding should not lead to the cancellation of the federal government's initial measures to reduce energy prices as early as 2027. According to Rippel, such a move would undermine confidence in planning and confidence in Germany as an industrial region.
The Federation warns of higher costs for electricity transmission networks
The Association expressed particular concern about the planned 15 percent reduction of the federal subsidy for electricity transmission network costs. He noted that the recent increase in network fees has only recently been lifted, returning them to 2023 levels, and warned that the proposed cuts would jeopardize this relief.
According to the federation, this measure could increase the annual cost of transmission networks for the German steel industry by about 50 million euros, representing an increase of about 20 percent.
Calling for long-term support for electricity prices
The German Steel Federation also stated that the proposed cuts would further push back the government's goal of achieving internationally competitive electricity prices for energy-intensive industries. She called for the current budget subsidy of 6.5 billion euros for transmission network costs to not only be maintained in full, but also consolidated in the coming years to ensure long-term confidence for the industry.
In addition, the association called on the German government to take further measures to reduce electricity prices to a competitive level internationally and across the EU. He noted that the European Commission has already created opportunities to link industrial electricity prices, at least partially, with electricity price compensation mechanisms, and called on the German government to use this option at the national level.
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