VIK

At the general meeting of the Association of Industrial Energy and Power Industry (VIK) in Berlin/Germany on 13th October 2025, three new members were elected to the Executive Board. With their extensive and long-standing experience and industry expertise, they will significantly enrich the work of the association. The following new members were elected to the Executive Board:

• Heike Denecke Arnold, Chairwoman of the Management Board of Salzgitter Flachstahl AG;
• Carin Martina Tröltzsch, Member of the Executive Board of K+S AG;
• Helmut Winterling, Senior Vice President at BASF SE.

In addition, the following members of the Executive Board were re-elected:

• Volker Backs, Managing Director of Speira GmbH;
• Hans Gennen, Member of the Mana­gement Board of Currenta GmbH und Co. OHG;
• Joachim Kreysing, Managing Director of Infraserv GmbH und Co. Höchst KG;
• Gilles Le Van, Vice President Large Industries and Energy Transition Central Europe at Air Liquide Deutschland GmbH; and
• Heiko Mennerich, Head of the Energy and Utilities Business Unit, Evonik Operations GmbH.

The Chairman of the VIK Executive Board, Gilles Le Van (Figure 1), expressed his delight at the new additions to the committee: “With Ms Denecke Arnold, Ms Tröltzsch and Mr Winterling, we are gaining three outstanding personalities who embody the diversity and strength of German industry. Their expertise in the steel, chemical and calibration sectors is of great value to our work. I am very much looking forward to working with them and am convinced that their perspectives will make a decisive contribution to further advancing the energy policy framework for our members.” (VIK/Si.)

The VIK – Verband der Industriellen Energie- und Kraftwirtschaft e.V., Berlin/Germany, calls on the German government to quickly implement Chancellor Olaf Scholz’s announcements to relieve the burden on industry. The entire manufacturing sector has been suffering for months from high energy prices and steadily deteriorating local conditions, as all indices show. In the face of a stubbornly sluggish economy, site closures and job cuts across the country, relief is urgently needed to maintain Germany as a centre of industry and to provide much-needed impetus for an economic recovery.

Christian Seyfert, managing director of VIK: “The Chancellor seems to have recognised the seriousness of the situation and is drawing the right conclusions. But that’s not enough. We need noticeable and lasting relief in the short term to avoid falling further behind internationally in terms of competitiveness.”

Above all, energy costs are unacceptably high by international standards. This is the main cause of the ongoing plight. The costs for the supply of electricity and gas are a decisive factor for companies, both in short-term production and long-term investment decisions. Added to this are the spiralling system costs of the energy transition, especially the acutely rising grid fees. Otherwise, a continuation of the economic downturn is certain – with serious consequences such as the loss of jobs and prosperity.

As previously demanded by VIK, Chancellor Scholz recognises two particularly suitable instruments for directly counteracting the high prices: An expansion of the electricity price compensation (SPK) leads to further companies being relieved of some of the costs of electricity procurement. In conjunction with the promised subsidies for the state-regulated network charges, the necessary relief is possible.

“We have no more time to lose. It is essential that the federal government and the coalition supporting it now follow up Chancellor Scholz’s announcements with action,” said VIK Managing Director Seyfert. (VIK/Si.)

The Association of the Industrial Power Industry (VIK), Berlin/Germany, is very concerned about the announced further closures of coal-fired power plant units on a considerable scale. Various power plant units in North Rhine-Westphalia and Lusatia were expected to be shut down at the end of March 2024 when the Replacement Power Plant Provision Act expired. In total, the considerable amount of 3.1 GW of controllable generation capacity was in question.

In order to continue to guarantee security of supply, the VIK had already previously demanded that all measures that further reduce the secured generation capacity in Germany only take place when adequate replacement for the secured capacity taken off the grid is actually physically available.

VIK Managing Director Christian Seyfert: “From the VIK’s point of view, there must be no further decommissioning of secured capacity before appropriate compensation measures have been finalised and the corresponding grid expansion has also made the necessary progress. We are urgently renewing this demand.”

It is not a sustainable strategy for Germany to rely more and more on electricity imports from abroad to secure volatile renewable generation in this country. The VIK believes that the progressive decommissioning of conventional generation capacity must be coordinated with, e. g., the construction of back-up power plants or electricity storage facilities and the expansion of renewables in conjunction with the necessary grids. Accordingly, the expansion of renewable generation capacities should also be more closely synchronised with the necessary grid infrastructure, the VIK demands.

The German government has announced the Power Plant Strategy (KWS) for the construction of new gas-fired power plants. This is also expected to include the introduction of a capacity mechanism to incentivise the construction of hydrogen-capable gas-fired power plants. From the industry’s perspective, this is a necessary step that must be taken swiftly in order to ensure security of supply so that the first tenders for new controllable generation capacity can be issued soon.

In particular, the VIK also points out that the role and potential of industrial combined heat and power plants must be taken into account and utilised with regard to the construction or conversion of power plants in the KWS, and that the remuneration of demand-side flexibility potential must also play a role. (VIK/Si.)

The announcements of the last few weeks clearly show how serious the situation is for energy-intensive industry in Germany: production at domestic sites in Europe is being reduced, investments in new plants are taking place in North America or in Asia. “If industrial electricity prices of 120 to 140 €/MWh become the “new normal”, creeping deindustrialisation is inevitable. The lack of competitiveness with locations with significantly lower energy costs will lead to further relocations,” says Christian Seyfert, Chief Executive of the VIK Verband der Industriellen Energie- und Kraftwirtschaft e.V., Berlin/Germany. In view of the high energy prices, especially for electricity, the conditions for competitive domestic production are becoming increasingly difficult. It is expected to take at least another six years until the planned “green” industrial electricity price is reached – six years in which the production costs of many German goods will exceed the possible revenue in international competition. That is far too long. In this debate, the VIK expressly welcomes the fact that the Federal Ministry of Economics and Climate Change is considering a national and European interim model. However, it is still unclear what this should look like and when at least the proposals are to be published. Although energy prices have recently fallen again, they remain at a very high level in international comparison and in comparison to the pre-crisis year 2019. Before 2019, electricity prices were in the range of 20 to 50 €/MWh, but today companies still face prices of 120 to 140 €/­MWh. “Profit margins are getting lower, companies’ equity ratios are decreasing and depreciation will exceed investments in the future,” warns Seyfert. Investments will still be made in maintenance and preservation, but less and less beyond that. Without these necessary new investments, expenditure on industrial transformation and more climate-friendly technologies will also fail to materialise. Time is pressing for a solution here, because when long-term electricity supply contracts expire in 2025 and the current market electricity prices have to be paid, basic production is often simply no longer profitable. In recent weeks, there have already been the first prominent case studies of this development from the chemical, metal and automotive industries, which have been widely reported. Production cutbacks, production stops, staff reductions, new investments in other regions of the world with more attractive location conditions – this is how Germany is eroding as an industrial location. The situation is particularly problematic for energy-intensive basic industries and export-oriented companies. Globally offered products compete with those from China, the USA and other regions, which have considerable competitive advantages in view of significantly lower energy prices and other locational advantages. Many of these products are also actually urgently needed in the energy transition and the industrial transformation to climate neutrality in Germany. The high level of electricity prices also makes the location of new industries less likely, both in international and European comparison. “With these electricity prices, it is not possible to bring back essential parts of the value chains or attract battery cell as well as photovoltaic module producers. At present, it is simply unprofitable to invest in Germany. If the industrial transformation to climate neutrality does not take place in Germany because of the too high energy prices, but elsewhere, nothing will be gained for our location,” says Seyfert.(VIK/Si.)

The German Association of the Industrial Energy and Power Industry e. V. (VIK), Berlin, sees a turning point in terms of foreign and security policy with Vladimir Putin leading Russia into war against Ukraine. In a recently published policy paper, the VIK has therefore called for a full assessment of every possible option to ensure an uninterruptible power supply in Germany. In addition to the increased development of renewable energies, which will only bring significant additional capacity to the market in the medium to long term, it must be possible to fall back on conventional production in the short term and temporarily to a greater extent. If required for securing the supply, coal-fired power plants should be taken out of reserve and standby for the duration of the crisis only. Other closures of conventional capacities must be verified and possible recommissionings are to be considered. According to the VIK, the necessary regulatory requirements should be modified or temporarily adjusted here, for political reasons.

Energy prices may also require urgent action, as they are moving towards a record high. In view of state sponsored price components and costs, urgent steps must be taken to provide significant relief to private and industrial consumers, and to calm the markets. The VIK therefore suggests a reduction in electricity tax to the European minimum rate, with retroactive effect from 1st January 2022, exemption for industrial electricity consumers from other levies (KWK/Offshore), extension of the Regulation on Interruptible Loads beyond 30th June 2022 and an increase of the tender volume, the legal guarantee for compensation of the price of electricity until 2030 and suspension of the Fuel Emissions Trading Act (BEHG) for the duration of the crisis. A temporary, conditioned extension of the withdrawal from conventional power generation could also have a dampening effect on prices, as power generation capacities remaining in the market increase the offer. This is also countered with an increased demand for natural gas.

At European level, the VIK also calls to suspend the Market Stability Reserve (MSR), extract 400 Mt from the MSR and auction it all off by the end of 2022. A minimum and maximum price for CO₂ certificates (price corridor) would also counteract immediately disruptive price developments and secure the competitive advantage and trend for climate-friendly technologies. The VIK also suggests the withdrawal of restrictions from the new Climate, Energy and Environmental Aid Guidelines (CEEAG) and expansion of the group and scope of beneficiaries, the waiver of escalations as part of other ETS reforms, the generous formulation of criteria to create “green” hydrogen, a CBAM introduction for test purposes (on a voluntary basis only) and an audit for the implementation of a European industrial electricity price to transform and guarantee international competitiveness.

Lastly, to ensure the industry is supplied with natural gas, the VIK suggests a short-term update to the gas contingency plan. Providing a supply to the population and major infrastructures, e. g. hospitals, is the priority and is therefore already regulated. But the industry also requires an emergency supply of natural gas, otherwise it could face massive, possibly irreparable damage with grave consequences for production and added value in Germany. A Task Force could be drafted in immediately to help arrange compensation, together with the industry, for the possible lack of gas supplies from Russia and the mobilisation of new natural gas capacities. (VIK/Si.)

The German Association of Industrial Energy Consumers (VIK), Berlin/Germany, welcomes the agreement reached within the German government on the Carbon Leakage Ordinance. However, despite the improvements made compared to the draft bill, a number of key points remain unsatisfactory for the industry. The list of eligible sectors, i. e., excludes key companies and the amount expected in return reduces the financial relief actually granted to an uneconomically low amount. Christian Seyfert, Managing Director of VIK, says: “This process unreasonably restricts companies’ financial room for manoeuvre. What the government actually considers to be environmentally friendly investments remains completely unclear. In the current situation, however, it is more important than ever to ensure legal certainty and clearly formulated circumstances for relief without impacting companies’ liquidity.” The VIK wants the ordinance to be improved to ensure that Germany as a business location is not weakened compared to countries outside the EU in the long term. Seyfert warns: “For Germany to be a strong business location, we need a policy that combines climate protection and competitiveness.” (VIK/Si.)

The German Association of Industrial Energy Consumers (VIK), Berlin/Germany, has expressed concern about the unexpected problems in the European power supply on 8th January 2021. Christian Seyfert, VIK Managing Director: “The incident on 8th January is unfortunately not the first of its kind, but it must be a warning to us all to not lose sight of the topic of grid stability and security of supply. Germany cannot assume that we will be supplied in one way or another from other European countries if we do not have enough power.”

Several news portals unanimously report that Europe may only narrowly escape a blackout, caused by a sudden drop in voltage in South-East Europe, whereas at the same time there is an electricity shortage in France, meaning that 13 nuclear power plant units are currently not connected to the grid. Comparisons have been drawn to an incident in November 2006, when a complete blackout in Western Europe was caused by the deactivation of two lines in Germany, which resulted in roughly ten million households being suddenly left without power.

Seyfert pointed out that with the phasing out of nuclear energy and coal in Germany in the coming years so-called guaranteed capacity from conventional energy generation will be shut down, to a large extent without replacement. This will lead to significant challenges in the security of supply regionally and nationwide, to which policy responses must also be developed. “The principle of hope is not enough. An inexpensive, climate-friendly, but also secure power supply is a decisive location factor for industrial companies subject to inter-national competition”, highlighted Seyfert. It is doubtful whether this will damage the business location of Germany. (VIK/-Si.)

The VIK (German Association of Industrial Energy Consumers), Berlin/Germany, has criticised the deferral of the so-called Carbon Leakage Regulation. The regulation is part of the introduction of the national CO2 price by the Fuel Emissions Trading Act (BEHG). In contrast to the regulation, the new carbon price in Germany is effective as of 1st January 2021. VIK Managing Director Christian Seyfert: “This delay is indicative of the hastily adopted national emissions trading. Reliable protection against carbon leakage is extremely important; therefore, an effective regulation is also imperative. The fact that this of all things has now been deferred is incomprehensible, it creates uncertainty and adversely affects the business location of Germany”.

As a result of the current inadequate protection of the German economy against carbon leakage abroad, Seyfert believes that industrial value-added chains and jobs may be threatened. Both the proposed list of sectors eligible to receive aid and the prerequisites for granting aid are also insufficient. The draft of the provisions for the carbon leakage regulation also does not take into consideration the competitive situation within the internal relations of the EU. “This approach is high risk and threatens the affected industries”, says the VIK Managing Director. In addition, the list provided as guidance for the European emissions trading system (EU-ETS) will allow for fewer sectors in the future, meaning that fewer industries would also have the prospect of obtaining aid to offset competitive disadvantages. The amount of the compensation for the affected companies will also be lower in the future. Both factors result in unfair competition to the detriment of German companies.

The linking of grants proposed in the government draft to climate-friendly investments is impractical especially for small and medium-sized companies, as well as the compulsory participation in an environment and energy management system, and represents a disproportionate bureaucratic and financial burden. For the latter, e. g., compulsory participation in an energy efficiency network would be a much more suitable alternative.

Seyfert highlighted: “The compensation for special charges arising purely at national level may not be linked to excessive preconditions for companies in European and international competition and must be comprehensive.” (VIK/Si.)

Barbara Minderjahn, General Manager of the German Association of the Industrial Energy and Power Industry (VIK) in Essen/Germany, has left this association by mutual agreement. Christian Seyfert will take on the role of managing the VIK as a new Managing Director on 1st July 2020. He currently holds a leading position as an authorised signatory for Vattenfall in the regional public affairs sector in northern Germany.

Günter Hilken, Chairman of the Executive Board of Currenta GmbH & Co. OHG, was elected to the Chair of the Executive Board of the Verband der Industriellen Energie- und Kraftwirtschaft e.V. (VIK), Berlin/Germany, at a meeting of the association’s board on 27th April 2018. He succeeds Roland Mohr in the role, who is leaving office after three and a half years for personal reasons.