German automotive industry leaders are urging policymakers to ensure that small and medium-sized enterprises (SMEs) are not overlooked in the design of a planned industrial electricity price. Hildegard Müller, President of the Verband der Automobilindustrie (VDA), emphasized the crucial need to consider battery and semiconductor production alongside the needs of the broader industrial base.
Speaking to the “Rheinische Post”, Müller highlighted the significant disadvantage faced by German companies, which currently pay up to three times more for electricity than their counterparts in the United States and China. This disparity, she stated, severely impacts the international competitiveness of German businesses and hinders the successful expansion of electric mobility. High charging costs, in particular, are a barrier to consumer acceptance of electric vehicles.
Beyond immediate relief measures, Müller called for a long-term, sustainable strategy to bring electricity prices in Germany back to a competitive level. This, she elaborated, should include a substantial increase in CO2-neutral electricity generation within Germany, as well as the forging of energy partnerships with other nations. Furthermore, the VDA president suggested that the German government should work to reduce ancillary electricity costs.
The call comes following a recent revision of the EU’s framework for state aid, which prompted Minister for Economic Affairs, Katheine Reiche (CDU), to announce the potential introduction of an industrial electricity price to support energy-intensive businesses in Germany. The VDA’s emphasis, however, is to ensure that this initiative benefits the entire industrial sector, not just larger corporations.