German State Premier Demands Cap on Industrial Electricity Prices
The premier of the German state of Saxony, Michael Kretschmer, has called for a cap on industrial electricity prices. In an interview with Politico, the CDU politician stated that the price of electricity for industry should be single-digit, ranging from five to a maximum of nine cents per kilowatt-hour. He emphasized that the high investments in networks, storage and gas power plants are threatening to push prices up to 15 to 19 cents per kilowatt-hour, adding that the expansion of renewable energy must be measured by affordable electricity prices.
Currently, the average electricity price for small to medium-sized industrial enterprises, according to the Federal Association of Energy and Water, stands at 18.31 cents per kilowatt-hour. Kretschmer’s proposal would represent a discount of nearly 73 percent. The premier also criticized the previous government, saying that its measures were always presented as the only option, but this is not the case. He emphasized that competitive electricity prices are needed, as this is the expectation of the industry for the location of Germany.