German Steel Industry Association Wirtschaftsvereinigung Stahl said that the relief package decided by the coalition committee at the weekend does not provide sufficient answers as to how the massive effects of the exploding energy costs in Germany as an industrial location should be managed. WV Stahl President Mr Hans Jürgen Kerkhoff said “The significant increase in natural gas and electricity prices would lead to an annual increase in energy costs of more than €10 billion in the steel industry compared to spring last year, thus threatening its international competitiveness. The federal government must now take initiatives to curb the increase in electricity prices at EU level, including at the Council of Energy Ministers on September 9th. WV Stahl advocates capping gas prices for 80% of consumption to a competitive level.”According to a paper published by the German Federal Network Agency, protected customers such as private households in a gas shortage could also be obliged to reduce their gas consumption. No information is given on the level of gas consumption to be reduced by private customers. It is about the so-called comfort part, such as that used to heat pools and saunas. At the same time, non-protected gas customers should also receive a vital need for gas. According to EU Industry Commissioner Mr Thierry Breton, the economic era in which geographical specialization, closely coordinated production processes and long supply chains were used is over. He said “World politics had become very fragmented in a very short time. At the same time, there are permanent crises due to the corona pandemic, climate change and the Russian war of aggression in Ukraine. In order to be able to compete better with other trading partners, new instruments are needed.”
German Steel Industry Association Wirtschaftsvereinigung Stahl said that the relief package decided by the coalition committee at the weekend does not provide sufficient answers as to how the massive effects of the exploding energy costs in Germany as an industrial location should be managed. WV Stahl President Mr Hans Jürgen Kerkhoff said “The significant increase in natural gas and electricity prices would lead to an annual increase in energy costs of more than €10 billion in the steel industry compared to spring last year, thus threatening its international competitiveness. The federal government must now take initiatives to curb the increase in electricity prices at EU level, including at the Council of Energy Ministers on September 9th. WV Stahl advocates capping gas prices for 80% of consumption to a competitive level.”According to a paper published by the German Federal Network Agency, protected customers such as private households in a gas shortage could also be obliged to reduce their gas consumption. No information is given on the level of gas consumption to be reduced by private customers. It is about the so-called comfort part, such as that used to heat pools and saunas. At the same time, non-protected gas customers should also receive a vital need for gas. According to EU Industry Commissioner Mr Thierry Breton, the economic era in which geographical specialization, closely coordinated production processes and long supply chains were used is over. He said “World politics had become very fragmented in a very short time. At the same time, there are permanent crises due to the corona pandemic, climate change and the Russian war of aggression in Ukraine. In order to be able to compete better with other trading partners, new instruments are needed.”
