German industrial companies are paying some of the highest electric energy prices, even by European standards. This problem existed before Russia's war against Ukraine and has gradually put various sectors at a comparative disadvantage globally over the years.

Industrial unions see hundreds of thousands of jobs at risk due to the high cost of electricity in Germany. In anticipation of possible site closures in the steel, chemical and construction materials industries, the IG Metall, IG BCE and IG BAU trade unions have jointly called for a nationwide day of action. The head of Bavarian IG Metall, Johann Horn, is planning a visit with the state’s Minister-President Markus Soder at the Lech steel plant in Meitingen near Augsburg.

IG Metall has called on the federal government to introduce a specific industrial electricity price rate for energy-intensive sectors that is fair by European standards. Even in a European comparison, German industrial companies have to pay some of the highest electric energy prices, and this problem existed even before Russia’s war against Ukraine. Gradually over years this put German industry at a comparative disadvantage on a global level.

„Excessive electricity prices put not only industrial sites and jobs at risk in Germany but also the transition to climate-neutral production, as affordable electricity is an essential element in this process,” Johann Horn said. Roberto Armellini, the head of IG Metall in Augsburg described the situation as follows:

„In the Augsburg region, this primarily affects our Bavarian steel works. The reality here now is to organise production according to weather conditions. Unfortunately, we are currently miles away from being able to plan ahead.” It is important to reach a fair industrial electricity price before the end of this year.”

IG Metall President Jorg Hofmann also directed sharp criticism at the inaction of the government, and called the attention of the Social Democrat-Green-Liberal coalition to the possible consequences:

„The German government must intervene to control the price of industrial electricity. Otherwise, steel production, the aluminium industry and other energy-intensive sectors risk disappearing from Germany sooner or later. This would directly and indirectly affect hundreds of thousands of jobs.”

Michael Vassiliadis, chairman of the IG BCE trade union, also spoke out. He said that if the chemical industry closes plants and relocates production because of high electricity costs, „that is the first step toward the de-industrialisation of Germany.” Therefore, he urged an industrial electricity price on a par with those in other parts of the world.”

Federal Economic Minister Robert Habeck had earlier promised to submit the concept of an industrial electricity rate. However, how Habeck’s ministry would like to compensate industrial players, as well as how they wish to avoid electricity shortages is totally unclear. The union giants are demanding not only a correction in prices, but also long-term predictability of supply.