German industries, particularly those with high energy consumption, are facing significant challenges due to elevated electricity costs. Companies are considering production cuts and relocation to countries with lower energy prices.
The foundry in Lössnitz, Saxony, a supplier for major automotive brands like Audi, BMW, and Porsche, expresses concern over the high electricity prices, creating uncertainty for its 85 employees. Similar concerns are voiced by steel producers such as Feralpi Stahl and Georgsmarienhütte, with some temporarily halting production or shifting operations to nights and weekends when electricity is cheaper.
A survey by the German Chambers of Industry and Commerce (DIHK) reveals that nearly half of energy-intensive companies are planning to reduce production or move abroad due to high energy costs. The DIHK notes that energy prices in Germany are among the highest globally, impacting the country's competitiveness.
Industrial electricity prices in the U.S. and China are significantly lower than in Germany. While the U.S. has prices around seven cents per kilowatt-hour and China around eight cents, Germany pays approximately 20 cents per kilowatt-hour.
The upcoming elections in Germany on February 23 see various parties promising to stabilize or reduce electricity taxes and grid fees in response to these industry concerns.