Tiefensee: Extend electricity price reduction to more areas
Thuringia's Economics Minister Wolfgang Tiefensee sees the planned reduction in electricity prices for industry and the construction sector as just a first step. "Reducing the electricity tax for the manufacturing industry to the European minimum level is necessary," said the SPD politician in Erfurt on Friday. The Federal Government's decision was about maintaining and improving the competitiveness of Germany as an industrial location. Tiefensee spoke of a "giant step in the right direction".
It was positive that not only large corporations, but also medium-sized companies would be supported. However, trade and parts of the skilled trades have so far been left out. According to the plans, the electricity tax is to fall to the European minimum rate of 0.05 cents per kilowatt hour. It currently stands at around two cents per kilowatt hour.
According to Tiefensee, once the concrete proposals are available, it will be necessary to examine whether further measures are needed to relieve the burden on energy-intensive SMEs. In line with its economic structure, Thuringia had repeatedly insisted on regulations for SMEs. In addition, various sectors in Thuringia, including the glass and steel industry, have particular problems with higher electricity prices.
"In the current difficult economic situation, the next important signal would be to reduce the electricity tax for all companies and private customers, to further develop the grid fee system and to reform the electricity market design," said Tiefensee.
The German government wants to reduce the price of electricity for businesses through a tax reform. There is talk of a reduction of up to 12 billion euros in 2024 alone.
The reduction in electricity prices for industries and construction, as proposed by Tiefensee, could also benefit energy-intensive small and medium-sized enterprises (SMEs). In this regard, it would be advantageous to further reduce the electricity tax for all companies and private consumers, to improve their competitiveness and alleviate the burden of high energy costs.
Given the current challenging economic climate and the specific issues faced by sectors like glass and steel in Thuringia due to high electricity prices, it would be prudent to re-evaluate the entire electricity market design and consider additional measures to accommodate these industries and foster their growth.
Source: www.dpa.com
