Energy-intensive industries: Gas surcharges send energy costs spiralling out of control

The energy-intensive industries in Germany (EID) are very concerned about their future in Germany as a business location. They depend on affordable energy for their international competitiveness.

For months, the pressure on companies has been increasing due to the drastic price increases for electricity, gas and other energy sources. The gas levy that has been passed further intensifies this. A level of 5 cents per kilowatt hour would mean costs of over 11 billion euros for EID companies - an additional burden of almost 13,000 euros per job on average.

Energy-intensive industries: Gas surcharges send energy costs spiralling out of control
© Die Papierindustrie e.V.
15.08.2022
Source:  Company news

The energy-intensive industries in Germany (EID) are very concerned about their future in Germany as a business location. They depend on affordable energy for their international competitiveness.

For months, the pressure on companies has been increasing due to the drastic price increases for electricity, gas and other energy sources. The gas levy that has been passed further intensifies this. A level of 5 cents per kilowatt hour would mean costs of over 11 billion euros for EID companies - an additional burden of almost 13,000 euros per job on average.

Even more burdens in sight
In addition, a gas storage levy is to be imposed from October. Both levies will further increase the cost of electricity. According to Jörg Rothermel, Managing Director of EID, these multiple burdens pose a massive threat to energy-intensive companies in Germany. He adds: "We have a problem not only internationally. In other EU member states, instead of additional burdens, drastic relief for companies and consumers has been decided that goes far beyond the 'protective shield' in Germany."

Limiting burdens is necessary for survival
In order to maintain competitiveness and jobs, energy-intensive industry must therefore be subject to a burden limitation that takes into account the special situation on the energy markets. Rothermel: "Both industry and private consumers are affected by the acute energy price crisis. It is therefore important to relieve particularly affected groups such as energy-intensive companies without imposing additional burdens on private consumers from the federal budget."

Energy-intensive industries account for over 120 terawatt hours of electricity and over 220 terawatt hours of natural gas consumption in Germany. They supply indispensable basic materials for the automotive, aerospace, electrical, printing and packaging industries as well as for mechanical engineering and the construction industry.