Relief announcements on energy costs are a glimmer of hope – but now the German government must act

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.)