Christian Seyfert, Managing Director of the VIK Verband der Industriellen Energie- und Kraftwirtschaft e.V. (Association of the Industrial Energy and Power Industry), criticizes the abolition of the so-called peak compensation from the draft budget as a further severe blow to Germany as an industrial location.
Poor starting position for energy-intensive industry
According to Seyfert, production is already being shut down in many places due to the extreme increase in electricity costs by international standards. There are also signs of permanent site closures. Investments would be announced at foreign locations with better competitive conditions instead of in Germany. At the same time, Germany was in the middle of a recession that could last longer. Production costs and interest rates were rising and demand was falling.
"Instead of stabilizing Germany, which is floundering as a business location, the German government is surprisingly announcing a new burden here. This is dangerous," explains Christian Seyfert.
VIK calls for extension of peak compensation
In recent years, the peak adjustment has been extended again and again due to its relieving effect on electricity prices, most recently until the end of 2023. The VIK is now calling for a further extension of one year:
"In the energy price crisis, a further burden, especially for energy-intensive industries, is the completely wrong signal. The crisis will not be over next year either. Support is urgently needed to ensure planning security and not to further slow down companies in international competition," said VIK Managing Director Seyfert.
Cancellation of peak compensation devastating
The equalization of electricity tax peaks means that electricity tax is waived, refunded or reimbursed on application in accordance with Section 10 (1) of the German Electricity Tax Act (StromStG) if electricity is used by companies in the manufacturing sector for operational purposes. In view of the enormous increases in electricity prices in recent years, this relief is still small - but is nevertheless an effective step in the right direction and represents important relief, particularly in the current situation. According to Seyfert, the abolition of peak compensation would be highly dangerous for the development of Germany as an industrial location and would undermine the industrial transformation to climate neutrality that is actually intended. The transformation is taking place, but not in Germany.
