Industrial electricity price 2026: support or burden for the East?

Industrial electricity price 2026: support or burden for the East?

In Germany there will be a comprehensive change in energy prices for industry on January 1, 2026. Federal Economics Minister Katherina Reiche (CDU) has called for the introduction of a subsidized systemindustrial electricity priceannounced to support particularly energy-intensive industries in times of crisis. This measure will particularly benefit companies that suffer greatly from high energy prices and could lead up to 2,000 companies to pay just 5 cents per kilowatt hour. This involves funds from the Federal Government's Climate and Transformation Fund, such as Berlin newspaper reported.

But not everyone is enthusiastic about this initiative. The plan has already attracted some critics, who note that the high costs would primarily benefit large corporations. The steel industry in particular is suffering from the consequences of highly fluctuating energy prices and cheap competition from China. Before theSteel peaksIn the Chancellery, which will take place on Thursday, Katherina Reiche faces the challenge of rebutting these concerns and presenting solutions.

Criticism of an inadequate basis

Some industry representatives and economists say that only 5-7% of industry is affected by high energy costs, and many companies are already benefiting from reduced tariffs. Economist Claudia Kemfert from the German Institute for Economic Research (DIW) is skeptical about the effectiveness of the planned price. The Monopolies Commission also points out that a national industrial electricity price alone is not enough to ensure long-term competitiveness.

In order to advance negotiations with the EU Commission, Reiche is working on a legally permissible mechanism so as not to violate EU competition law. It was only in the summer that the Commission released scope for subsidies, and now the final votes on the structure of the industrial electricity price are pending. The goal is to find a low-bureaucracy regulation that relieves the burden on numerous companies.

Political support and the future

The eastern German states support the industrial electricity price and agree that comprehensive reforms are necessary. Brandenburg's Ministry of Economic Affairs emphasizes the need to break down hurdles in order to be able to provide help more quickly. The Thuringian Energy Ministry also sees the measure as a short-term relief, but demands sustainable solutions for the future. IG Metall warns that the price should be linked to criteria such as securing employment and investments in the future.

With an estimated cost of 1.5 billion euros per year, the subsidized electricity price could provide massive support for the companies mentioned, but could also result in new EU audits. While the federal government is sticking to the uniform German electricity bidding zone, associations such as the Federation of German Industries and the BDEW are warning about possible market distortions and the limited effectiveness of the EU regulations. The discussions about the appropriate price and the underlying model are far from over.

Will the planned industrial electricity price actually bring about the hoped-for turnaround, or is it just short-term help? The coming days and the final decision in the Chancellery will show. After all, there is a lot at stake: not only the competitiveness of the domestic industry, but also the jobs and the future of many employees in Germany.